Assigned to ED                                                                                                                  AS PASSED BY COW

 

 

 

 


ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

AMENDED

FACT SHEET FOR H.B. 2482

 

building renewal grants; procurement practices

(NOW: building renewal grants; job-order-contracting)

Purpose

Caps the maximum amount of an individual job order for job-order-contracting for construction services at $1,000,000 for any project that receives Building Renewal Grant Fund (BRG Fund) monies and is not an emergency. Requires Division of School Facilities (Division) Staff to verify that requirements are not artificially divided or fragmented to constitute a job order that satisfies the $1,000,000 limitation and whether a projected submitted for BRG Fund monies is an emergency as outlined.

Background

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

The Division within the Arizona Department of Administration must develop and implement policies and procedures to establish a project eligibility assessment for all projects submitted for funding from the BRG Fund and the Emergency Deficiencies Correction Fund, including standardized criteria for project eligibility. Before the Division formally approves a project, Division Staff may review the costs and scope of the proposed project with the person and entities that have submitted project bids (A.R.S. § 41-5702).

The Division administers the BRG Fund and distributes BRG Fund monies to school districts who request BRG Fund grants to maintain the adequacy of existing school buildings. A school district must use BRG Fund monies for the following projects: 1) major renovations and repairs to a building that is used for student instruction or other academic purposes; 2) upgrading systems and areas that will maintain or extend a building's useful life; and 3) infrastructure costs. A school district may not use BRG Fund monies for: 1) new construction; 2) remodeling interior space for aesthetic reasons; 3) exterior beautification; 4) demolition; 5) routine preventative maintenance; and 6) any project in a building that is being leased to another entity (A.R.S.
§ 41-5731).

Job-order-contracting means 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).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Caps the maximum 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 and that is not an emergency, as determined by the Division.

2.   Requires Division Staff, before formally approving a project that receives BRG Fund monies, to:

a)   verify that the requirements are not artificially divided or fragmented to constitute a job order that satisfies the $1,000,000 limitation on job-order-contracting for construction services; and

b)   on request by a school district, determine whether a project submitted for BRG Fund monies is an emergency within five business days after the date on which the Division receives the request.

3.   Requires the Division to determine that a project is an emergency if the school district demonstrates a serious need for materials, services, construction or expenses that exceeds the school district's adopted budget for the current fiscal year and that seriously threatens:

a)   the functioning of the school district;

b)   the preservation of property; or

c)   public health, welfare or safety.

4.   Specifies that the requirement on the Division to determine whether a submitted project is an emergency does not authorize the Division to approve funding from the BRG Fund for a project that does not serve an academic purpose.

5.   Makes technical and conforming changes.

6.   Becomes effective on the general effective date.

Amendments Adopted by Committee of the Whole

1.   Specifies that the $1,000,000 limitation on job-order-contracting for construction services applies only to projects that receive monies from the BRG Fund and are not an emergency, as determined by the Division.

2.   Requires, before the Division formally approves a project and on request by a school district, Division Staff to determine whether a project submitted for funding from the BRG Fund is an emergency within five days of receiving the request as outlined.

3.   Specifies that the Division may not approve funding from the BRG Fund for a project that does not serve an academic purpose.

4.   Makes technical and conforming changes.

 

House Action                                                              Senate Action

ED             2/3/26        DPA/SE    7-2-2-1                  ED                3/18/26        DP             4-2-1                         

3rd Read    2/25/26                        31-22-7

Prepared by Senate Research

April 15, 2026

MH/hk