ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: ED DPA/SE 7-2-2-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2482: building renewal grants; procurement practices

NOW: building renewal grants; job-order-contracting

Sponsor: Representative Gress, LD 4

House Engrossed

Overview

Limits the amount of an individual job order for job-order-contracting for construction services at $1,000,000 for projects funded through the Building Renewal Grant (BRG) Fund.

History

Job-order-contracting is a project delivery method in which: 1) the contract is a requirements contract for indefinite quantities of construction; 2) the construction to be performed is specified in job orders issued during the contract; and 3) finance, maintenance, operations, preconstruction, design and other related services may be included (A.R.S. § 41-2503).

Statute directs the State Board of Education to adopt school district procurement rules but caps the maximum dollar amount of an individual job order for job-order-contracting construction services at $1,000,000, or at a higher or lower amount prescribed by a school district governing board in a policy adopted in a public meeting. Requirements may not be artificially divided or fragmented in order to constitute a job order that satisfies the maximum dollar amount limitation (A.R.S. § 15-213).

The Division of School Facilities (SFD) must establish a project eligibility assessment for all projects submitted for funding from the BRG Fund or the Emergency Deficiencies Correction Fund, including standardized criteria for project eligibility. Before approving a project, SFD staff must review the costs and scope of the proposed project with the individuals and entities that have submitted bids on the project (A.R.S. § 41-5702).

SFD administers the BRG Fund and distributes monies to school districts to maintain adequate existing school facilities. School districts may use BRG Fund monies for: 1) major renovations and repairs to academic buildings; 2) upgrading systems and areas that will maintain or extend the buildings useful life; or 3) infrastructure costs (A.R.S. § 41-5731).

Provisions

1.   Caps the maximum dollar amount of an individual job order for job-order-contracting for construction services at $1,000,000 for any project that receives BRG Fund monies.

2.   Instructs SFD staff, before formally approving a project submitted for BRG Fund monies, to verify that the requirements are not artificially divided or fragmented in order to constitute a job order that satisfies the project eligibility requirements.

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6.   Initials CH                       HB 2482

7.   2/24/2026  Page 0 House Engrossed

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