ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff
	House: ED DPA/SE 7-2-2-1 | Third Read 31-22-7-0 Senate: ED DP 4-2-1-0 | Third Read 17-10-3-0-0

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HB 2482: building renewal grants; procurement practices

NOW: building renewal grants; job-order-contracting

Sponsor: Representative Gress, LD 4

Senate 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.

Senate Amendments

1. Applies the $1,000,000 cap for an individual job order for job-order-contracting for construction services to any project that receives BRG Fund monies and that is not an emergency, as determined by SFD.

2. Requires SFD staff, before formally approving a project and on request by a school district, to determine whether a project submitted for BRG Fund monies is an emergency within five business days of receiving the request.

3. Directs SFD staff to determine that a project is an emergency if the school district demonstrates a serious need for materials, services or construction or expenses that exceeds the school district's budget for the current fiscal year and that seriously threatens the functioning of the school district, the preservation of property or public health, welfare or safety.

4. Asserts SFD is not authorized to approve funding from the BRG Fund for a project that does not serve an academic purpose.

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Initials CH                 HB 2482

4/16/2026        Page 0 Senate Engrossed

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