Page 111,
after line 42, insert:
"Sec. 44. Title
15, chapter 16, article 4, Arizona Revised Statutes, is amended by adding
section 15-2031, to read:
START_STATUTE15-2031. Building renewal fund; school
buildings database; reporting requirements; definitions
A. The building renewal
fund is established consisting of monies appropriated by the
legislature. The school facilities board shall administer the fund
and distribute monies to school districts to maintain the adequacy of existing
school facilities. Monies in the fund are continuously appropriated and are
exempt from the provisions of section 35-190 relating to lapsing of
appropriations.
B. The school
facilities board shall inventory and inspect all school buildings in this state
in order to develop a database to administer the building renewal
formula. The database shall include the student capacity of each
building as determined by the school facilities board. The board
shall distribute monies from the building renewal fund to school districts in
an amount computed pursuant to subsection I of this section. A
school district that receives monies from the building renewal fund shall use
the monies first for any projects that fall below the minimum school facility
adequacy guidelines, as adopted by the school facilities board pursuant to
section 15-2011, and that are part of any buildings in the database and
second for any other projects that are part of any buildings owned by the
school district for any of the following:
1. Major renovations
and repairs of the building.
2. Upgrading systems
and areas that will maintain or extend the useful life of the building.
3. Infrastructure
costs.
4. Relocation and
placement of portable and modular buildings.
C. Monies received from
the building renewal fund shall be used for primary projects, unless only
secondary projects exist.
D. Notwithstanding
subsections B and C of this section, school districts shall use building renewal
monies on secondary projects to comply with building, health, fire and safety
codes. Before spending building renewal monies on secondary projects
to comply with building, health, fire and safety codes, the school facilities
board shall approve the projects.
E. Monies received from
the building renewal fund may not be used for any of the following purposes:
1. New construction.
2. Remodeling interior
space for aesthetic or preferential reasons.
3. Exterior
beautification.
4. Demolition.
5. Purchasing capital
items.
6. Routine preventive
maintenance, except as provided in section 15-2002, subsection K and
subsection L of this section.
F. The school
facilities board shall maintain the school buildings database and use the
database to compute the building renewal formula distributions. The
board shall ensure that the database is updated at least annually to reflect
changes in the ages and value of school buildings. The facilities listed in
the database shall include only those buildings owned by school districts that
are required to meet academic standards. On or before October 15 of
each year, each school district shall report to the school facilities board the
number and type of school buildings owned by the district, the square footage
of each building, the age of each building, the nature of any renovations and
the cost of any renovations. The school facilities board may conduct
a review or audit, or both, to confirm the information submitted by a school district. If
a career technical education district leases a building from a school district,
that building may not be included in the school district's square footage
calculation for the purpose of determining the school district's building
renewal distribution pursuant to this section. The board shall
adjust the age of each school facility in the database whenever a building is
significantly upgraded or remodeled. The age of a building that has been
significantly upgraded or remodeled shall be recomputed as follows:
1. Divide
the cost of the renovation by the building capacity value of the building
determined in subsection I, paragraph 3 of this section.
2. Multiply
the quotient determined in paragraph 1 of this subsection by the currently
listed age of the building in the database.
3. Subtract
the product determined in paragraph 2 of this subsection from the currently
listed age of the building in the database, rounded to the nearest whole
number. If the result is negative, use zero.
G. On
or before October 1 of each year, the school facilities board shall
electronically submit to the president of the senate, the speaker of the house
of representatives and the governor, and provide to the secretary of state, a
report that includes the computation of the amount of monies to be distributed
from the building renewal fund for the current fiscal year. The
joint committee on capital review shall review the school facilities board's
calculation of the building renewal fund distributions. After the
joint committee on capital review reviews the distributions computed by the
school facilities board, the school facilities board shall distribute the
monies from the building renewal fund to school districts in two equal
installments in November and May of each year.
H. A
school district that receives monies from the building renewal fund shall
establish a district building renewal fund and shall use the monies in the
district building renewal fund only for the purposes prescribed in subsection B
of this section. Ending cash balances in a school district's
building renewal fund may be used in following fiscal years for building
renewal pursuant to subsection B of this section. On or before
October 15 of each year, each school district shall report to the school facilities
board the projects funded at that school in the previous fiscal year with
monies from the district building renewal fund, including the amount of
expenditures dedicated to primary projects and to secondary
projects. On receipt of these reports, the school facilities board
shall forward this information to the staff of the joint legislative budget
committee and the governor's office of strategic planning and
budgeting. Each school district shall also report to the school
facilities board an accounting of the monies remaining in the district's
building renewal fund at the end of the previous fiscal year and a
comprehensive three-year plan that details the proposed use of building
renewal monies. If a school district fails to submit this report or
the information required by subsection F of this section on or before October
15, the school facilities board shall withhold building renewal monies from the
school district until the school facilities board determines that the school
district has complied with the reporting requirement. When the
school facilities board determines that the school district has complied with
the reporting requirement, the school facilities board shall restore the full
amount of withheld building renewal monies to the school district.
I. Notwithstanding
any other provision of this chapter, if a school district converts space listed
in the school buildings database to space that will be used for administrative
purposes, the school district is responsible for any costs associated with
converting, maintaining and replacing that space. The building
renewal amount for each school building shall be computed as follows:
1. Divide the age of
the building as computed pursuant to subsection F of this section by one
thousand two hundred seventy-five or, in the case of modular or portable
buildings, by two hundred ten.
2. Multiply the
quotient determined in paragraph 1 of this subsection by 0.67.
3. Determine the
building capacity value as follows:
(a) Multiply
the student capacity of the building by the per student square footage capacity
established by section 15-2041.
(b) Multiply
the product determined in subdivision (a) of this
paragraph by the cost per square foot established by section 15-2041.
4. Multiply the product
determined in paragraph 2 of this subsection by the product determined in
paragraph 3, subdivision (b) of this subsection.
J. If the school
facilities board determines that a school district has spent monies from the
building renewal fund for purposes other than those prescribed in subsection B
of this section, the school facilities board shall notify the superintendent of
public instruction. Notwithstanding any other law, the superintendent of
public instruction shall withhold a corresponding amount from the monies that
would otherwise be due the school district under the capital outlay revenue
limit until these monies are repaid.
K. A school district is
not entitled to receive monies from the building renewal fund for any buildings
that are to be replaced with new buildings that are funded with deficiencies
corrections monies. The replacement buildings are not eligible to
receive building renewal funding until the fiscal year following the completion
of the building.
L. Notwithstanding
subsections B and E of this section, a school district may use eight percent of
the building renewal amount computed pursuant to subsection I of this section
for routine preventive maintenance. The school facilities board,
after consulting with maintenance specialists in school districts, shall
provide examples of recommended services that are routine preventive
maintenance.
M. A
school district that uses building renewal monies for routine preventive
maintenance shall use the building renewal monies to supplement and not
supplant expenditures from other funds to maintain school
buildings. The auditor general shall prescribe a method for
determining compliance with the requirements of this subsection. A school
district, in connection with any audit conducted by a certified public
accountant, shall also contract for an independent audit to determine whether
the school district used building renewal monies to reduce the school
district's existing level of routine preventive maintenance
funding. The auditor general may conduct discretionary reviews of a
school district that is not required to contract for an independent audit.
N. For the purposes of
this section:
1. "Primary
projects" means projects that are required for a building owned by a
school district to meet the academic standards listed in the school buildings
database maintained pursuant to subsection F of this section if the building
falls below the minimum school facility adequacy guidelines adopted by the
school facilities board pursuant to section 15-2011.
2. "Routine
preventive maintenance" means services that are performed on a regular
schedule at intervals ranging from four times a year to once every three years
and that are intended to extend the useful life of a building system and reduce
the need for major repairs.
3. "Secondary
projects" means all projects that are not primary projects.
4. "Student
capacity" has the same meaning prescribed in section 15-2011." END_STATUTE
Amend title to conform
Bill
Number: S.B. 1826