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| Home > Statutes > Usa Arizona |
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USA Statutes : arizona
Title : Education
Chapter : SCHOOL CAPITAL FINANCE
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15-2001 School facilities board; conflict of interest
A. The school facilities board is established consisting of the following members
who shall be appointed by the governor pursuant to section 38-211 in such a manner as to
provide for approximate geographic balance and approximate balance between public and
private members:
1. One member who is an elected member of a school district governing board with
knowledge and experience in the area of finance.
2. One private citizen who represents an organization of taxpayers.
3. One member with knowledge and experience in school construction.
4. One member who is a registered professional architect and who has current
knowledge and experience in school architecture.
5. One member with knowledge and experience in school facilities management in a
public school system.
6. One member with knowledge and experience in demographics.
7. One member who is a teacher and who currently provides classroom instruction.
8. One member who is a registered professional engineer and who has current
knowledge and experience in school engineering.
9. One member who is an owner or officer of a private business.
B. In addition to the members appointed pursuant to subsection A of this section,
the superintendent of public instruction or the superintendent's designee shall serve as
an advisory nonvoting member of the school facilities board.
C. The governor shall appoint a chairperson from members appointed pursuant to
subsection A of this section.
D. Members of the school facilities board serve four year terms. The school
facilities board shall meet as often as the members deem necessary. A majority of the
members constitutes a quorum for the transaction of business.
E. The unexcused absence of a member for more than three consecutive meetings is
justification for removal by a majority vote of the board. If the member is removed,
notice shall be given of the removal pursuant to section 38-292.
F. The governor shall fill a vacancy by appointment of a qualified person as
provided in subsection A of this section.
G. Members of the board who are employed by government entities are not eligible to
receive compensation. Members of the board who are not employed by government entities
are entitled to payment of one hundred fifty dollars for each meeting attended, prorated
for partial days spent for each meeting, up to two thousand five hundred dollars each
year. All members are eligible for reimbursement of expenses pursuant to title 38,
chapter 4, article 2. These expenses and the payment of compensation are payable to a
member from monies appropriated to the board from the new school facilities fund.
H. Members of the school facilities board are subject to title 38, chapter 3,
article 8.
15-2002 Powers and duties; executive director; staffing; report
A. The school facilities board shall:
1. Make assessments of school facilities and equipment deficiencies pursuant to
section 15-2021 and approve the distribution of grants as appropriate.
2. Develop a database for administering the building renewal formula prescribed in
section 15-2031 and administer the distribution of monies to school districts for
building renewal.
3. Inspect school buildings at least once every five years to ensure compliance
with the building adequacy standards prescribed in section 15-2011 and routine
preventative maintenance guidelines as prescribed in this section with respect to
construction of new buildings and maintenance of existing buildings. The school
facilities board shall randomly select twenty school districts every thirty months and
inspect them pursuant to this paragraph.
4. Review and approve student population projections submitted by school districts
to determine to what extent school districts are entitled to monies to construct new
facilities pursuant to section 15-2041. The board shall make a final determination within
six months of the receipt of an application by a school district for monies from the new
school facilities fund.
5. Certify that plans for new school facilities meet the building adequacy
standards prescribed in section 15-2011.
6. Develop prototypical elementary and high school designs. The board shall review
the design differences between the schools with the highest academic productivity scores
and the schools with the lowest academic productivity scores. The board shall also review
the results of a valid and reliable survey of parent quality rating in the highest
performing schools and the lowest performing schools in this state. The survey of parent
quality rating shall be administered by the department of education. The board shall
consider the design elements of the schools with the highest academic productivity scores
and parent quality ratings in the development of elementary and high school designs. The
board shall develop separate school designs for elementary, middle and high schools with
varying pupil capacities.
7. Develop application forms, reporting forms and procedures to carry out the
requirements of this article.
8. Review and approve or reject requests submitted by school districts to take
actions pursuant to section 15-341, subsection F.
9. Submit an annual report by December 15 to the speaker of the house of
representatives, the president of the senate, the superintendent of public instruction,
the director of the ARIZONA state library, archives and public records and the governor
that includes the following information:
(a) A detailed description of the amount of monies distributed by the school
facilities board in the previous fiscal year.
(b) A list of each capital project that received monies from the school facilities
board during the previous fiscal year, a brief description of each project that was
funded and a summary of the board's reasons for the distribution of monies for the
project.
(c) A summary of the findings and conclusions of the building maintenance
inspections conducted pursuant to this article during the previous fiscal year.
(d) A summary of the findings of common design elements and characteristics of the
highest performing schools and the lowest performing schools based on academic
productivity including the results of the parent quality rating survey.
For the purposes of this paragraph, "academic productivity" means academic year
advancement per calendar year as measured with student-level data using the statewide
nationally standardized norm-referenced achievement test.
10. By December 1 of each year, report to the joint committee on capital review the
amounts necessary to fulfill the requirements of sections 15-2021, 15-2022, 15-2031 and
15-2041 for the following fiscal year and the estimated amounts necessary to fulfill the
requirements of sections 15-2021, 15-2022, 15-2031 and 15-2041 for the fiscal year
following the next fiscal year. The board shall provide copies of the report to the
president of the senate, the speaker of the house of representatives and the governor.
11. Adopt minimum school facility adequacy guidelines to provide the minimum quality
and quantity of school buildings and the facilities and equipment necessary and
appropriate to enable pupils to achieve the educational goals of the ARIZONA state
schools for the deaf and the blind. The school facilities board shall establish minimum
school facility adequacy guidelines applicable to the ARIZONA state schools for the deaf
and the blind by December 31, 2000.
12. Beginning August 15, 2004, and each even-numbered year thereafter, report to the
joint committee on capital review the amounts necessary to fulfill the requirements of
sections 15-2031 and 15-2041 for the ARIZONA state schools for the deaf and the blind for
the following two fiscal years. The ARIZONA state schools for the deaf and the blind
shall incorporate the findings of the report in any request for building renewal monies
and new school facilities monies. Any monies provided to the ARIZONA state schools for
the deaf and the blind for building renewal and for new school facilities are subject to
legislative appropriation.
13. By October 15 of each year, submit information regarding demographic
assumptions, a proposed construction schedule and new school construction cost estimates
for the following fiscal year to the joint committee on capital review for its review.
14. Every two years, provide school districts with information on improving and
maintaining the indoor environmental quality in school buildings.
B. The school facilities board may contract for private services in compliance with
the procurement practices prescribed in title 41, chapter 23.
C. The governor shall appoint an executive director of the school facilities board
pursuant to section 38-211. The executive director is eligible to receive compensation as
determined pursuant to section 38-611 and may hire and fire necessary staff as approved
by the legislature in the budget. The executive director shall have demonstrated
competency in school finance, facilities design or facilities management, either in
private business or government service. The executive director serves at the pleasure of
the governor. The staff of the school facilities board is exempt from title 41, chapter
4, articles 5 and 6. The executive director:
1. Shall analyze applications for monies submitted to the board by school
districts.
2. Shall assist the board in developing forms and procedures for the distribution
and review of applications and the distribution of monies to school districts.
3. May review or audit, or both, the expenditure of monies by a school district for
deficiencies corrections, building renewal and new school facilities.
4. Shall assist the board in the preparation of the board's annual report.
5. Shall research and provide reports on issues of general interest to the board.
6. May aid school districts in the development of reasonable and cost-effective
school designs in order to avoid statewide duplicated efforts and unwarranted
expenditures in the area of school design.
7. May assist school districts in facilitating the development of
multijurisdictional facilities.
8. Shall assist the board in any other appropriate matter or method as directed by
the members of the board.
9. Shall establish procedures to ensure compliance with the notice and hearing
requirements prescribed in section 15-905. The notice and hearing procedures adopted by
the board shall include the requirement, with respect to the board's consideration of any
application filed after July 1, 2001 or after December 31 of the year in which the
property becomes territory in the vicinity of a military airport or ancillary military
facility as defined in section 28-8461 for monies to fund the construction of new school
facilities proposed to be located in territory in the vicinity of a military airport or
ancillary military facility, that the military airport receive notification of the
application by first class mail at least thirty days before any hearing concerning the
application.
10. May expedite any request for funds in which the local match was not obtained for
a project that received preliminary approval by the state board for school capital
facilities.
11. Shall expedite any request for funds in which the school district governing
board submits an application that shows an immediate need for a new school facility.
12. Shall make a determination as to administrative completion within one month
after the receipt of an application by a school district for monies from the new school
facilities fund.
13. Shall provide technical support to school districts as requested by school
districts in connection with the construction of new school facilities and the
maintenance of existing school facilities.
D. When appropriate, the school facilities board shall review and use the statewide
school facilities inventory and needs assessment conducted by the joint committee on
capital review and issued in July, 1995.
E. The school facilities board shall contract with one or more private building
inspectors to complete an initial assessment of school facilities and equipment provided
in section 15-2021 and shall inspect each school building in this state at least once
every five years to ensure compliance with section 15-2011. A copy of the inspection
report, together with any recommendations for building maintenance, shall be provided to
the school facilities board and the governing board of the school district.
F. The school facilities board may consider appropriate combinations of facilities
or uses in making assessments of and curing deficiencies pursuant to subsection A,
paragraph 1 of this section and in certifying plans for new school facilities pursuant to
subsection A, paragraph 5 of this section.
G. The board shall not award any monies to fund new facilities that are financed by
class A bonds that are issued by the school district.
H. The board shall not distribute monies to a school district for replacement or
repair of facilities if the costs associated with the replacement or repair are covered
by insurance or a performance or payment bond.
I. The board may contract for construction services and materials that are
necessary to correct existing deficiencies in school district facilities as determined
pursuant to section 15-2021. The board may procure the construction services necessary
pursuant to this subsection by any method including construction-manager-at-risk,
design-build, design-bid-build or job-order-contracting as provided by title 41, chapter
23. The construction planning and services performed pursuant to this subsection are
exempt from section 41-791.01.
J. The school facilities board may enter into agreements with school districts to
allow school facilities board staff and contractors access to school property for the
purposes of performing the construction services necessary pursuant to subsection I of
this section.
K. By October 1, 2002, each school district shall develop routine preventative
maintenance guidelines for its facilities. The guidelines shall be submitted to the
school facilities board for review and approval by February 1, 2003. If upon inspection
by the school facilities board it is determined that a school district facility was
inadequately maintained pursuant to the school district's routine preventative
maintenance guidelines, the school district shall use building renewal monies pursuant to
section 15-2031, subsection J to return the building to compliance with the school
district's routine preventative maintenance guidelines. Once the district is in
compliance, it no longer is required to use building renewal monies for preventative
maintenance.
L. The school facilities board may temporarily transfer monies between the capital
reserve fund established by section 15-2003, the deficiencies correction fund established
by section 15-2021, the emergency deficiencies correction fund established by section
15-2022, the building renewal fund established by section 15-2031 and the new school
facilities fund established by section 15-2041 if all of the following conditions are
met:
1. The transfer is necessary to avoid a temporary shortfall in the fund into which
the monies are transferred.
2. The transferred monies are restored to the fund where the monies originated as
soon as practicable after the temporary shortfall in the other fund has been addressed.
3. The school facilities board reports to the joint committee on capital review the
amount of and the reason for any monies transferred.
15-2003 Capital reserve fund
A. A capital reserve fund is established consisting of monies that are credited to
the fund from the new school facilities fund established by section 15-2041, subsection
A.
B. The school facilities board shall administer the fund. On notice from the
school facilities board, the state treasurer shall invest and reinvest monies in the fund
as provided by section 35-313, and monies earned on investments shall be credited to the
capital reserve fund.
C. Monies in the capital reserve fund are subject to legislative appropriation only
to the deficiencies correction fund established by section 15-2021 or the new school
facilities fund established by section 15-2041. 15-2004 School facilities board lease-to-own; fund
A. In order to fulfill the requirements of section 15-2041, the school facilities
board may acquire school facilities for the use of one or more school districts by
entering into one or more lease-to-own transactions in accordance with this section. For
purposes of this section, providing school facilities includes land acquisition, related
infrastructure, fixtures, furnishings, equipment and costs of the lease-to-own
transaction. The school facilities board may provide monies to provide school facilities
in part pursuant to section 15-2041 and in part through a lease-to-own transaction.
B. A lease-to-own transaction may provide for:
1. The ground lease of the land for the facilities to a private entity for the term
of the lease-to-own transaction or for a term of up to one and one-half times the term of
the lease-to-own transaction, subject to earlier termination on completion of performance
of the lease-to-own agreement. The ground lessor may either be the school district or the
school facilities board, whichever holds title to the land.
2. The lease of the completed school facilities by a private entity to the school
facilities board for an extended term of years pursuant to a lease-to-own agreement.
3. The sublease of the completed school facilities by the school facilities board
to the school district during the term of the lease-to-own agreement. The sublease shall
provide for the use, maintenance and operation of the school facilities by the school
district and for the transfer of ownership of the school facilities to the school
district on completion of performance of the lease-to-own agreement.
4. The option for the school facilities board's purchase of the school facilities
and transfer of ownership of the school facilities to the school district before the
expiration of the lease-to-own agreement.
5. The services of trustees, financial advisors, paying agents, transfer agents,
underwriters, lawyers and other professional service providers, credit enhancements or
liquidity facilities and all other services considered necessary by the school facilities
board in connection with the lease-to-own transaction, and related agreements and
arrangements including arrangements for the creation and sale of certificates of
participation evidencing proportionate interests in the lease payments to be made by the
school facilities board pursuant to the lease-to-own agreement.
C. The sublease of the school facilities to the school district is subject to this
section and to the provisions of the lease-to-own agreement. Neither a ground lease by
the school district as lessor nor a sublease of the school facilities to the school
district is required to be authorized by a vote of the school district electors. A ground
lease is not subject to any limitations or requirements applicable to leases or
lease-purchase agreements pursuant to section 15-342 or any other section of this title.
D. Any school facility that is constructed through a lease-to-own agreement shall
meet the minimum building adequacy standards set forth in section 15-2011.
E. School districts may use local monies to exceed the minimum adequacy standards
and to build athletic fields and any other capital project for leased-to-own facilities.
F. The school facilities board shall include any square footage of new school
facilities constructed through lease-to-own agreements in the computations prescribed in
section 15-2011.
G. Pursuant to section 15-2031, a school district is eligible to receive building
renewal monies for any facility constructed through a lease-to-own agreement. If a
facility's building maintenance renewal is included in the lease-to-own agreement, then
the facility shall not be included in the district's building renewal calculation.
H. A lease-to-own fund is established consisting of monies appropriated by the
legislature. The school facilities board shall administer the fund and distribute monies
in the fund to make payments pursuant to lease-to-own agreements entered into by the
school facilities board pursuant to this section, to make payments to or for the benefit
of school districts pursuant to local lease-to-own agreements entered into by school
districts pursuant to section 15-2005 and to pay costs considered necessary by the school
facilities board in connection with lease-to-own transactions and local lease-to-own
transactions. Payments by the school facilities board pursuant to a lease-to-own
agreement or local lease-to-own agreement shall be made only from the lease-to-own fund.
On notice from the school facilities board, the state treasurer shall invest and divest
monies in the fund as provided by section 35-313, and monies earned from investment shall
be credited to the lease-to-own fund.
I. A lease-to-own agreement entered into by the school facilities board pursuant to
this section shall provide that:
1. At the completion of the lease-to-own agreement, ownership of the school
facilities and land associated with the lease-to-own agreement shall be transferred to
the school district as specified in the agreement.
2. The obligation of the school facilities board to make any payment under the
lease-to-own agreement is a current expense, payable exclusively from appropriated
monies, and is not a general obligation indebtedness of this state or the school
facilities board. The obligation of a school district to make expenditures under a
sublease pursuant to subsection B, paragraph 3 of this section is a current expense,
payable exclusively from budgeted monies, and is not a general obligation indebtedness of
the school district.
3. If the legislature fails to appropriate monies or the school facilities board
fails to allocate such monies for any periodic payment or renewal term of the
lease-to-own agreement, the lease-to-own agreement terminates at the end of the current
term and this state and the school facilities board are relieved of any subsequent
obligation under the agreement and the school district is relieved of any subsequent
obligation under the sublease.
4. The lease-to-own agreement shall be reviewed and approved by the attorney
general before the agreement may take effect.
5. Before the agreement takes effect and after review by the attorney general, the
project or projects related to the agreement shall be submitted for review by the joint
committee on capital review.
J. The school facilities board may covenant to use its best efforts to budget,
obtain, allocate and maintain sufficient appropriated monies to make payments under a
lease-to-own agreement, but the lease-to-own agreement shall acknowledge that
appropriating state monies is a legislative act and is beyond the control of the school
facilities board or of any other party to the lease-to-own agreement.
K. The land and the school facilities on the land are exempt from taxation during
the term of the lease-to-own agreement and during construction and subsequent occupancy
by the school district pursuant to the sublease.
L. The powers prescribed in this section are in addition to the powers conferred by
any other law. Without reference to any other provision of this title or to any other
law, this section is authority for the completion of the purposes prescribed in this
section for the school facilities board to provide school facilities for use by school
districts through lease-to-own transactions pursuant to this section without regard to
the procedure required by any other law. Except as otherwise provided in this section,
the provisions of this title that relate to the matters contained in this section are
superseded because this section is the exclusive law on these matters.
15-2005 Local lease-to-own by school districts
A. In order to fulfill the requirements of section 15-2041, with the approval of
the school facilities board, a school district may acquire school facilities by entering
into a local lease-to-own transaction in accordance with this section. For purposes of
this section, providing school facilities includes land acquisition, related
infrastructure, fixtures, furnishings, equipment and costs of the local lease-to-own
transaction. The school facilities board may provide monies to provide school facilities
in part pursuant to section 15-2041 and in part through payments to or for the benefit of
a school district for a local lease-to-own transaction.
B. A local lease-to-own transaction may provide for:
1. The ground lease of the land for the facilities to a private entity for the term
of the local lease-to-own transaction or for a term of up to one and one-half times the
term of the local lease-to-own transaction, subject to earlier termination on completion
of performance of the local lease-to-own agreement. The ground lessor may either be the
school district or the school facilities board, whichever holds title to the land.
2. The lease of the completed school facilities by a private entity to the school
district for an extended term of years pursuant to a local lease-to-own agreement. The
local lease-to-own agreement shall provide for the use, maintenance and operation of the
school facilities by the school district and for the transfer of ownership of the school
facilities to the school district on completion of performance of the local lease-to-own
agreement.
3. The option for the school district's purchase of the school facilities and
transfer of ownership of the school facilities to the school district before the
expiration of the local lease-to-own agreement.
4. The services of trustees, financial advisors, paying agents, transfer agents,
underwriters, lawyers and other professional service providers, credit enhancements or
liquidity facilities and all other services considered necessary by the school district
or the school facilities board in connection with the local lease-to-own transaction, and
related agreements and arrangements including arrangements for the creation and sale of
certificates of participation evidencing proportionate interests in the lease payments to
be made by the school district pursuant to the local lease-to-own agreement.
C. Neither a ground lease by the school district as lessor nor a local lease-to-own
agreement is required to be authorized by a vote of the school district electors. A
ground lease is not subject to any limitations or requirements applicable to leases or
lease-purchase agreements pursuant to section 15-342 or any other section of this title.
D. The school facilities board may make payments to or for the benefit of the
school district from the lease-to-own fund established by section 15-2004 for the payment
of amounts payable under the local lease-to-own agreement.
E. Any school facility that is constructed through a lease-to-own agreement shall
meet the minimum building adequacy standards set forth in section 15-2011.
F. School districts may use local monies to exceed the minimum adequacy standards
and to build athletic fields and any other capital project for leased-to-own facilities.
G. The school facilities board shall include any square footage of new school
facilities constructed through lease-to-own agreements in the computations prescribed in
section 15-2011.
H. Pursuant to section 15-2031, a school district is eligible to receive building
renewal monies for any facility constructed through a lease-to-own agreement. If a
facility's building maintenance renewal is included in the lease-to-own agreement, then
the facility shall not be included in the district's building renewal calculation.
I. A local lease-to-own agreement entered into by a school district pursuant to
this section shall provide that:
1. At the completion of the lease-to-own agreement, ownership of the school
facilities and land associated with the lease-to-own agreement shall be transferred to
the school district as specified in the agreement.
2. The obligation of the school district to make any payment or expenditure under
the local lease-to-own agreement is a current expense, payable exclusively from properly
budgeted monies, and is not a general obligation indebtedness of this state, the school
facilities board or the school district, and that any payment by the school facilities
board to or for the benefit of the school district from the lease-to-own fund established
by section 15-2004 for payments of amounts payable under the local lease-to-own agreement
is a current expense, payable exclusively from appropriated monies, and is not a general
obligation indebtedness of this state or the school facilities board.
3. If the school district fails to properly budget for payments under the local
lease-to-own agreement or if the legislature fails to appropriate monies or the school
facilities board fails to allocate monies for periodic payment to or for the benefit of
the school district for payments under the local lease-to-own agreement, the local
lease-to-own agreement terminates at the end of the current term and the school district,
the school facilities board and this state are relieved of any subsequent obligation
under the local lease-to-own agreement.
4. The local lease-to-own agreement shall be reviewed and approved by the attorney
general before the agreement may take effect.
5. Before the agreement takes effect and after review by the attorney general, the
project or projects related to the agreement shall be submitted for review by the joint
committee on capital review.
J. The school district may covenant to use its best efforts to budget, obtain,
allocate and maintain sufficient monies to make payments under a local lease-to-own
agreement, but the local lease-to-own agreement shall acknowledge that budgeting school
district monies is a governmental act of the school district governing board that may not
be contracted away. The school facilities board is not required to covenant to budget,
obtain, allocate or maintain sufficient monies in the lease-to-own fund to make payments
to or for the benefit of a school district for payments under a local lease-to-own
agreement.
K. The land and the school facilities on the land are exempt from taxation during
the term of the local lease-to-own agreement and during construction and subsequent
occupancy by the school district pursuant to the local lease-to-own agreement.
L. The powers prescribed in this section are in addition to the powers conferred by
any other law. Without reference to any other provision of this title or to any other
law, this section is authority for the completion of the purposes prescribed in this
section for school districts to provide school facilities through local lease-to-own
transactions pursuant to this section without regard to the procedure required by any
other law. Except as otherwise provided in this section, the provisions of this title
that relate to the matters contained in this section are superseded because this section
is the exclusive law on these matters.
15-2006 Lease-to-own amount
In order to fulfill the requirements of section 15-2041, the school facilities board
may enter into lease-to-own transactions for up to a maximum of two hundred million
dollars in any fiscal year.
15-2011 Minimum school facility adequacy requirements; definition
A. The school facilities board shall, as determined and prescribed in this chapter,
provide funding to school districts for new construction as the projected number of
pupils in the district will fill the existing school facilities and require more pupil
space.
B. School buildings in a school district are adequate if all of the following
requirements are met:
1. The buildings contain sufficient and appropriate space and equipment that comply
with the minimum school facility adequacy guidelines established pursuant to subsection F
of this section. The state shall not fund facilities for elective courses that require
the school district facilities to exceed minimum school facility adequacy requirements.
The school facilities board shall determine whether a school building meets the
requirements of this paragraph by analyzing the total square footage that is available
for each pupil in conjunction with the need for specialized spaces and equipment.
2. The buildings are in compliance with federal, state and local building and fire
codes and laws that are applicable to the particular building. An existing school
building is not required to comply with current requirements for new buildings unless
this compliance is specifically mandated by law or by the building or fire code of the
jurisdiction where the building is located.
3. The building systems, including roofs, plumbing, telephone systems, electrical
systems, heating systems and cooling systems, are in working order and are capable of
being properly maintained.
4. The buildings are structurally sound.
C. The standards that shall be used by the school facilities board to determine
whether a school building meets the minimum adequate gross square footage requirements
are as follows:
1. For a school district that provides instruction to pupils in programs for
preschool children with disabilities, kindergarten programs and grades one through six,
eighty square feet per pupil in programs for preschool children with disabilities,
kindergarten programs and grades one through six.
2. For a school district that provides instruction to up to eight hundred pupils in
grades seven and eight, eighty-four square feet per pupil in grades seven and eight.
3. For a school district that provides instruction to more than eight hundred
pupils in grades seven and eight, eighty square feet per pupil in grades seven and eight
or sixty-seven thousand two hundred square feet, whichever is more.
4. For a school district that provides instruction to up to four hundred pupils in
grades nine through twelve, one hundred twenty-five square feet per pupil in grades nine
through twelve.
5. For a school district that provides instruction to more than four hundred and up
to one thousand pupils in grades nine through twelve, one hundred twenty square feet per
pupil in grades nine through twelve or fifty thousand square feet, whichever is more.
6. For a school district that provides instruction to more than one thousand and up
to one thousand eight hundred pupils in grades nine through twelve, one hundred twelve
square feet per pupil in grades nine through twelve or one hundred twenty thousand square
feet, whichever is more.
7. For a school district that provides instruction to more than one thousand eight
hundred pupils in grades nine through twelve, ninety-four square feet per pupil in grades
nine through twelve or two hundred one thousand six hundred square feet, whichever is
more.
D. The school facilities board may modify the square footage requirements
prescribed in subsection C of this section or modify the amount of monies awarded to cure
the square footage deficiency pursuant to this section for particular school districts
based on extraordinary circumstances for any of the following considerations:
1. The number of pupils served by the school district.
2. Geographic factors.
3. Grade configurations other than those prescribed in subsection C of this
section.
E. In measuring the square footage per pupil requirements of subsection C of this
section, the school facilities board shall:
1. Use the most recent one hundredth day average daily membership.
2. For each school, use the lesser of either:
(a) Total gross square footage.
(b) Student capacity multiplied by the appropriate square footage per pupil
prescribed by subsection C of this section.
3. Consider the total space available in all schools in use in the school district,
except that the school facilities board shall allow an exclusion of the square footage
for certain schools and the pupils within the schools' boundaries if the school district
demonstrates to the board's satisfaction unusual or excessive busing of pupils or unusual
attendance boundary changes between schools.
4. Compute the gross square footage of all buildings by measuring from exterior
wall to exterior wall. Square footage used solely for district administration, storage
of vehicles and other nonacademic purposes shall be excluded from the gross square
footage.
5. Include all portable and modular buildings.
6. Include in the gross square footage new construction funded wholly or partially
by the school facilities board based on the square footage funded by the school
facilities board. If the new construction is to exceed the square footage funded by the
school facilities board, then the excess square footage shall not be included in the
gross square footage if any of the following apply:
(a) The excess square footage was constructed before July 1, 2002 or funded by a
class B bond, impact aid revenue bond or capital outlay override approved by the voters
after August 1, 1998 and before June 30, 2002 or funded from unrestricted capital outlay
expended before June 30, 2002.
(b) The excess square footage of new school facilities does not exceed twenty-five
per cent of the minimum square footage requirements pursuant to subsection C of this
section.
(c) The excess square footage of expansions to school facilities does not exceed
twenty-five per cent of the minimum square footage requirements pursuant to subsection C
of this section.
7. Require that excess square footage that is constructed after July 1, 2002 and
that is not excluded pursuant to paragraph 6 of this subsection meets the minimum school
facility adequacy guidelines in order to be eligible for building renewal monies as
computed in section 15-2031.
F. The school facilities board shall adopt rules establishing minimum school
facility adequacy guidelines. The executive director of the school facilities board
shall report monthly to the joint committee on capital review on the progress of the
development of the proposed rules establishing the guidelines. The joint committee on
capital review shall review the proposed guidelines before the school facilities board
adopts the rules to establish the minimum school facility adequacy guidelines. The
guidelines shall provide the minimum quality and quantity of school buildings and
facilities and equipment necessary and appropriate to enable pupils to achieve the
academic standards pursuant to section 15-203, subsection A, paragraphs 12 and 13 and
sections 15-701 and 15-701.01. At a minimum, the school facilities board shall address
all of the following in developing these guidelines:
1. School sites.
2. Classrooms.
3. Libraries and media centers, or both.
4. Cafeterias.
5. Auditoriums, multipurpose rooms or other multiuse space.
6. Technology.
7. Transportation.
8. Facilities for science, arts and physical education.
9. Other facilities and equipment that are necessary and appropriate to achieve the
academic standards prescribed pursuant to section 15-203, subsection A, paragraphs 12 and
13 and sections 15-701 and 15-701.01.
10. Appropriate combinations of facilities or uses listed in this section.
G. The board shall consider the facilities and equipment of the schools with the
highest academic productivity scores, as prescribed in section 15-2002, subsection A,
paragraph 9, subdivision (d), and the highest parent quality ratings in the establishment
of the guidelines.
H. The school facilities board may consider appropriate combinations of facilities
or uses in making assessments of and curing existing deficiencies pursuant to section
15-2002, subsection A, paragraph 1 and in certifying plans for new school facilities
pursuant to section 15-2002, subsection A, paragraph 5.
I. For the purposes of this section, "student capacity" means the capacity adjusted
to include any additions to or deletions of space, including modular or portable
buildings at the school. The school facilities board shall determine the student
capacity for each school in conjunction with each school district, recognizing each
school's allocation of space as of July 1, 1998, to achieve the academic standards
prescribed pursuant to section 15-203, subsection A, paragraphs 12 and 13 and sections
15-701 and 15-701.01. 15-2021 Deficiencies correction fund
(Rpld. 7/1/06)
A. A deficiencies correction fund is established consisting of monies appropriated
by the legislature and monies credited to the fund pursuant to section 42-5030.01. The
school facilities board shall administer the fund and distribute monies to school
districts and pay contractors for the purpose of correcting existing deficiencies.
Monies in the fund are continuously appropriated and are exempt from the provisions of
section 35-190 relating to lapsing of appropriations.
B. School districts are eligible for monies from the deficiencies correction fund
for either of the following purposes:
1. To correct any square footage deficiency pursuant to section 15-2011. School
districts shall submit a summary notice on a form prescribed by the school facilities
board that the school district believes it has a square footage deficiency pursuant to
section 15-2011, subsection C to the school facilities board by December 1, 1998. If the
school district exceeds the standard by ten per cent or more, the school district may be
required to pay for the cost of an on-site space assessment by the school facilities
board. By June 30, 1999, the school facilities board shall assess all alleged square
footage deficiencies from the school district notices.
2. To correct quality deficiencies based on the district's inability to comply with
the minimum school facility adequacy requirements established in and pursuant to section
15-2011. This state shall not correct quality deficiencies pursuant to this paragraph
for elective courses that require the school district facilities to exceed building
adequacy standards. School districts shall submit a summary notice on a form prescribed
by the school facilities board that the school district has a quality deficiency need to
the school facilities board by August 1, 1999.
C. The school facilities board shall calculate the amount of distribution for
square footage deficiencies based on the square footage prescribed in section 15-2011,
subsection C and the cost per square foot based on the amounts prescribed in section
15-2041, subsection D, paragraph 3, subdivision (c), adjusted as needed to bring the
school district into compliance with the minimum school facility adequacy requirements
established in and pursuant to section 15-2011.
D. The school facilities board may distribute monies for new construction to a
school district if the board determines after its assessment that the new construction is
more cost-effective than correcting the deficiencies in the existing school building or
buildings.
E. The school facilities board shall distribute monies from the deficiencies
correction fund to school districts and pay contractors for the purpose of correcting
existing deficiencies in an amount approved by the board. The school facilities board
shall review and award monies to correct deficiencies pursuant to this section by June
30, 2001 and shall ensure that school districts correct deficiencies pursuant to this
section by June 30, 2004. The school facilities board shall not distribute monies to
school districts from the deficiencies correction fund for projects that are commenced
after June 30, 2003 or that were approved by the school facilities board after May 10,
2002.
F. School districts that receive monies from the deficiencies correction fund shall
establish a school district deficiencies correction fund and shall use the monies in the
school district deficiencies correction fund only for the purposes prescribed in this
section. Ending cash balances in a school district's deficiencies correction fund may be
used in following fiscal years only for the purposes prescribed in this section. Each
school district that receives monies from the deficiencies correction fund shall annually
report the expenditures in the previous fiscal year to the school facilities board by
October 15 and provide an accounting of the monies remaining in the deficiencies
correction fund at the end of the previous fiscal year. This state shall annually
provide sufficient monies to the deficiencies correction fund established in this section
in order to correct existing deficiencies of all schools in this state by June 30, 2004.
G. A deficiency correction project awarded pursuant to this section may be combined
with the deficiency correction projects of one or more additional school districts for
purposes of procuring construction services and materials that are necessary to correct
deficiencies if the school facilities board determines that combining the projects
maximizes the purchasing value of the public monies of this state.
15-2022 Emergency deficiencies correction fund; definition A. An emergency deficiencies correction fund is established consisting of monies transferred from the deficiencies correction fund established by section 15-2021 or the new school facilities fund established by section 15-2041. The school facilities board shall administer the fund and distribute monies in accordance with the rules of the school facilities board to school districts for emergency purposes. The school facilities board shall not transfer monies from the deficiencies correction fund and the new school facilities fund if the transfer will affect, interfere with, disrupt or reduce any capital projects that the school facilities board has approved pursuant to sections 15-2021 and 15-2041. The school facilities board shall transfer to the emergency deficiencies correction fund the amount necessary each fiscal year to fulfill the requirements of this section. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. If the school facilities board determines that there are insufficient monies in the emergency deficiencies correction fund to correct an emergency, the school district may correct the emergency pursuant to section 15-907. C. If a school district has an emergency, the school district shall apply to the school facilities board for funding for the emergency. The school district's application shall disclose any insurance or building renewal monies available to the school district to pay for the emergency. D. The school facilities board staff shall notify the school district of the staff's recommendation within five business days of receiving the application. The school facilities board shall decide on the staff's recommendation for funding at the next scheduled school facilities board meeting. E. For the purposes of this section, "emergency" means a serious need for materials, services or construction or expenses in excess of the district's adopted budget for the current fiscal year and that seriously threaten the functioning of the school district, the preservation or protection of property or public health, welfare or safety. 15-2031 Building renewal fund; definitions
A. A building renewal fund is established consisting of monies appropriated by the
legislature and monies credited to the fund pursuant to section 42-5030.01. The school
facilities board shall administer the fund and distribute monies to school districts for
the purpose of maintaining 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 the 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 G of this section. A
school district that receives monies from the building renewal fund shall use the monies
primarily for any buildings in the database developed or created under subsection D of
this section and secondly for any other buildings owned by the school district for any of
the following:
1. Major renovations and repairs of a 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 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. The purchase of soft capital items pursuant to section 15-962, subsection D.
6. Routine maintenance except as provided in section 15-2002, subsection K and
subsection J of this section.
D. The school facilities board shall maintain the building renewal database and use
the database for the computation of the building renewal formula distributions. The board
shall ensure that the database is updated on at least an annual basis to reflect changes
in the ages and value of school buildings. The facilities listed in the database shall
include only those buildings that are owned by school districts that are required to meet
academic standards. Each school district shall report to the school facilities board no
later than September 1 of each year 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 completed and the cost of any renovations completed. The school
facilities board may review or audit, or both, to confirm the information submitted by a
school district. 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 G, 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.
E. The school facilities board shall submit an annual report to the president of
the senate, the speaker of the house of representatives, the ARIZONA state library,
archives and public records and the governor by October 1 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.
F. School districts that receive 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. By
October 15 of each year, each school district shall report to the school facilities board
the projects funded at each school in the previous fiscal year with monies from the
district building renewal fund, an accounting of the monies remaining in the district
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 the report by 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.
G. Notwithstanding any other provision of this chapter, if a school district
converts space that is listed in the database maintained pursuant to this section to
space that will be used for administrative purposes, the school district is responsible
for any costs associated with the conversion, maintenance and replacement of 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 D 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 foot
capacity established by section 15-2041.
(b) Multiply the product determined in subdivision (a) 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.
H. 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.
I. Beginning on July 1, 2002, 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 pursuant to section
15-2021. The replacement buildings are not eligible to receive building renewal funding
until the fiscal year following the completion of the building.
J. Notwithstanding subsections B and C of this section, a school district may use
eight per cent of the building renewal amount computed pursuant to subsection G of this
section for routine preventative maintenance. The board, after consultation with
maintenance specialists in school districts, shall provide examples of recommended
services that are routine preventative maintenance.
K. A school district that uses building renewal monies for routine preventative
maintenance shall use the building renewal monies to supplement and not supplant
expenditures from other funds for the maintenance of 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 preventative maintenance funding. The auditor general may conduct
discretionary reviews of a school district that is not required to contract for an
independent audit.
L. For the purposes of this section:
1. "Routine preventative 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.
2. "Student capacity" has the same meaning prescribed in section 15-2011. 15-2041 New school facilities fund; capital plan
(L05, Ch. 287, sec. 3. Eff. 7/1/06)
A. A new school facilities fund is established consisting of monies appropriated by
the legislature and monies credited to the fund pursuant to section 37-221. The school
facilities board shall administer the fund and distribute monies, as a continuing
appropriation, to school districts for the purpose of constructing new school facilities.
On June 30 of each fiscal year, any unobligated contract monies in the new school
facilities fund shall be transferred to the capital reserve fund established by section
15-2003.
B. The school facilities board shall prescribe a uniform format for use by the
school district governing board in developing and annually updating a capital plan that
consists of each of the following:
1. Enrollment projections for the next five years for elementary schools and eight
years for middle and high schools, including a description of the methods used to make
the projections.
2. A description of new schools or additions to existing schools needed to meet the
building adequacy standards prescribed in section 15-2011. The description shall include:
(a) The grade levels and the total number of pupils that the school or addition is
intended to serve.
(b) The year in which it is necessary for the school or addition to begin
operations.
(c) A timeline that shows the planning and construction process for the school or
addition.
3. Long-term projections of the need for land for new schools.
4. Any other necessary information required by the school facilities board to
evaluate a school district's capital plan.
5. If a school district pays tuition for all or a portion of the school district's
high school pupils to another school district, the capital plan shall indicate the number
of pupils for which the district pays tuition to another district. If a school district
accepts pupils from another school district pursuant to section 15-824, subsection A, the
school district shall indicate the projections for this population separately. This
paragraph does not apply to a small isolated school district as defined in section
15-901.
C. If the capital plan indicates a need for a new school or an addition to an
existing school within the next four years or a need for land within the next ten years,
the school district shall submit its plan to the school facilities board by September 1
and shall request monies from the new school facilities fund for the new construction or
land. Monies provided for land shall be in addition to any monies provided pursuant to
subsection D of this section.
D. The school facilities board shall distribute monies from the new school
facilities fund as follows:
1. The school facilities board shall review and evaluate the enrollment projections
and either approve the projections as submitted or revise the projections. In
determining new construction requirements, the school facilities board shall determine
the net new growth of pupils that will require additional square footage that exceeds the
building adequacy standards prescribed in section 15-2011. If the projected growth and
the existing number of pupils exceeds three hundred fifty pupils who are served in a
school district other than the pupil's resident school district, the school facilities
board, the receiving school district and the resident school district shall develop a
capital facilities plan on how to best serve those pupils. A small isolated school
district as defined in section 15-901 is not required to develop a capital facilities
plan pursuant to this paragraph.
2. If the approved projections indicate that additional space will not be needed
within the next two years for elementary schools or three years for middle or high
schools in order to meet the building adequacy standards prescribed in section 15-2011,
the request shall be held for consideration by the school facilities board for possible
future funding and the school district shall annually submit an updated plan until the
additional space is needed.
3. If the approved projections indicate that additional space will be needed within
the next two years for elementary schools or three years for middle or high schools in
order to meet the building adequacy standards prescribed in section 15-2011, the school
facilities board shall provide an amount as follows:
(a) Determine the number of pupils requiring additional square footage to meet
building adequacy standards. This amount for elementary schools shall not be less than
the number of new pupils for whom space will be needed in the next year and shall not
exceed the number of new pupils for whom space will be needed in the next five years.
This amount for middle and high schools shall not be less than the number of new pupils
for whom space will be needed in the next four years and shall not exceed the number of
new pupils for whom space will be needed in the next eight years.
(b) Multiply the number of pupils determined in subdivision (a) of this paragraph
by the square footage per pupil. The square footage per pupil is ninety square feet per
pupil for preschool children with disabilities, kindergarten programs and grades one
through six, one hundred square feet for grades seven and eight, one hundred thirty-four
square feet for a school district that provides instruction in grades nine through twelve
for fewer than one thousand eight hundred pupils and one hundred twenty-five square feet
for a school district that provides instruction in grades nine through twelve for at
least one thousand eight hundred pupils. The total number of pupils in grades nine
through twelve in the district shall determine the square footage factor to use for net
new pupils. The school facilities board may modify the square footage requirements
prescribed in this subdivision for particular schools based on any of the following
factors:
(i) The number of pupils served or projected to be served by the school district.
(ii) Geographic factors.
(iii) Grade configurations other than those prescribed in this subdivision.
(iv) Compliance with minimum school facility adequacy requirements established
pursuant to section 15-2011.
(c) Multiply the product obtained in subdivision (b) of this paragraph by the cost
per square foot. The cost per square foot is ninety dollars for preschool children with
disabilities, kindergarten programs and grades one through six, ninety-five dollars for
grades seven and eight and one hundred ten dollars for grades nine through twelve. The
cost per square foot shall be adjusted annually for construction market considerations
based on an index identified or developed by the joint legislative budget committee as
necessary but not less than once each year. The school facilities board shall multiply
the cost per square foot by 1.05 for any school district located in a rural area. The
school facilities board may modify the base cost per square foot prescribed in this
subdivision for particular schools based on geographic conditions or site conditions.
For the purposes of this subdivision, "rural area" means an area outside a thirty-five
mile radius of a boundary of a municipality with a population of more than fifty thousand
persons according to the most recent United States decennial census.
(d) Once the school district governing board obtains approval from the school
facilities board for new facility construction funds, additional portable or modular
square footage created for the express purpose of providing temporary space for pupils
until the completion of the new facility shall not be included by the school facilities
board for the purpose of new construction funding calculations. On completion of the new
facility construction project, if the portable or modular facilities continue in use, the
portable or modular facilities shall be included as prescribed by this chapter, unless
the school facilities board approves their continued use for the purpose of providing
temporary space for pupils until the completion of the next new facility that has been
approved for funding from the new school facilities fund.
4. For projects approved after December 31, 2001, and notwithstanding paragraph 3
of this subsection, a unified school district that does not have a high school is not
eligible to receive high school space as prescribed by section 15-2011 and this section
unless the unified district qualifies for geographic factors prescribed by paragraph 3,
subdivision (b), item (ii) of this subsection.
E. Monies for architectural and engineering fees shall be distributed on the
completion of the analysis by the school facilities board of the school district's
request. After receiving monies pursuant to this subsection, the school district shall
submit a design development plan for the school or addition to the school facilities
board before any monies for construction are distributed. If the school district's
request meets the building adequacy standards, the school facilities board may review and
comment on the district's plan with respect to the efficiency and effectiveness of the
plan in meeting state square footage and facility standards before distributing the
remainder of the monies. The school facilities board may decline to fund the project if
the square footage is no longer required due to revised enrollment projections.
F. The school facilities board shall distribute the monies needed for land for new
schools so that land may be purchased at a price that is less than or equal to fair
market value and in advance of the construction of the new school. If necessary, the
school facilities board may distribute monies for land to be leased for new schools if
the duration of the lease exceeds the life expectancy of the school facility by at least
fifty per cent. The proceeds derived through the sale of any land purchased or partially
purchased with monies provided by the school facilities board shall be returned to the
state fund from which it was appropriated and to any other participating entity on a
proportional basis. If a school district acquires real property by donation at an
appropriate school site approved by the school facilities board, the school facilities
board shall distribute an amount equal to twenty per cent of the fair market value of the
donated real property that can be used for academic purposes. The school district shall
place the monies in the unrestricted capital outlay fund and increase the unrestricted
capital outlay limit by the amount of monies placed in the fund. Monies distributed
under this subsection shall be distributed from the new school facilities fund. A school
district shall not pay a consultant a percentage of the value of any of the following:
1. Donations of real property, services or cash from any of the following:
(a) Entities that have offered to provide construction services to the school
district.
(b) Entities that have been contracted to provide construction services to the
school district.
(c) Entities that build residential units in that school district.
(d) Entities that develop land for residential use in that school district.
2. Monies received from the school facilities board on behalf of the school
district.
3. Monies paid by the school facilities board on behalf of the school district.
G. In addition to distributions to school districts based on pupil growth
projections, a school district may submit an application to the school facilities board
for monies from the new school facilities fund if one or more school buildings have
outlived their useful life. If the school facilities board determines that the school
district needs to build a new school building for these reasons, the school facilities
board shall remove the square footage computations that represent the building from the
computation of the school district's total square footage for purposes of this section.
If the square footage recomputation reflects that the school district no longer meets
building adequacy standards, the school district qualifies for a distribution of monies
from the new school construction formula in an amount determined pursuant to subsection D
of this section. Buildings removed from a school district's total square footage
pursuant to this subsection shall not be included in the computation of monies from the
building renewal fund established by section 15-2031. The school facilities board may
modify the base cost per square foot prescribed in this subsection under extraordinary
circumstances for geographic factors or site conditions.
H. School districts that receive monies from the new school facilities fund shall
establish a district new school facilities fund and shall use the monies in the district
new school facilities fund only for the purposes prescribed in this section. By October
15 of each year, each school district shall report to the school facilities board the
projects funded at each school in the previous fiscal year with monies from the district
new school facilities fund and shall provide an accounting of the monies remaining in the
new school facilities fund at the end of the previous fiscal year.
I. If a school district has surplus monies received from the new school facilities
fund, the school district may use the surplus monies only for capital purposes for the
project for up to one year after completion of the project. If the school district
possesses surplus monies from the new school construction project that have not been
expended within one year of the completion of the project, the school district shall
return the surplus monies to the school facilities board for deposit in the new school
facilities fund.
J. The board's consideration of any application filed after July 1, 2001 or after
December 31 of the year in which the property becomes territory in the vicinity of a
military airport or ancillary military facility as defined in section 28-8461 for monies
to fund the construction of new school facilities proposed to be located in territory in
the vicinity of a military airport or ancillary military facility shall include, if after
notice is transmitted to the military airport pursuant to section 15-2002 and before the
public hearing the military airport provides comments and analysis concerning
compatibility of the proposed school facilities with the high noise or accident potential
generated by military airport or ancillary military facility operations that may have an
adverse effect on public health and safety, consideration and analysis of the comments
and analysis provided by the military airport before making a final determination.
K. If a school district uses its own project manager for new school construction,
the members of the school district governing board and the project manager shall sign an
affidavit stating that the members and the project manager understand and will follow the
minimum adequacy requirements prescribed in section 15-2011.
L. The school facilities board shall establish a separate account in the new school
facilities fund designated as the litigation account to pay attorney fees, expert witness
fees and other costs associated with litigation in which the school facilities board
pursues the recovery of damages for deficiencies correction that resulted from alleged
construction defects or design defects that the school facilities board believes caused
or contributed to a failure of the school building to conform to the building adequacy
requirements prescribed in section 15-2011. Attorney fees paid pursuant to this
subsection shall not exceed the market rate for similar types of litigation. Monies
recovered as damages pursuant to this subsection shall be used to offset debt service on
the correction of existing deficiencies as prescribed by section 15-2021. The joint
committee on capital review shall conduct an annual review of the litigation account,
including the costs associated with current and potential litigation.
M. Until the state board of education and the auditor general adopt rules pursuant
to section 15-213, subsection J, the school facilities board may allow school districts
to contract for construction services and materials through the qualified select bidders
list method of project delivery for new school facilities pursuant to this section. 15-2041 New school facilities fund; capital plan; report
(L05, Ch. 272, sec. 4 and Ch. 293, sec. 1)
A. A new school facilities fund is established consisting of monies appropriated by
the legislature and monies credited to the fund pursuant to section 37-221 or 42-5030.01.
The school facilities board shall administer the fund and distribute monies, as a
continuing appropriation, to school districts for the purpose of constructing new school
facilities. On June 30 of each fiscal year, any unobligated contract monies in the new
school facilities fund shall be transferred to the capital reserve fund established by
section 15-2003.
B. The school facilities board shall prescribe a uniform format for use by the
school district governing board in developing and annually updating a capital plan that
consists of each of the following:
1. Enrollment projections for the next five years for elementary schools and eight
years for middle and high schools, including a description of the methods used to make
the projections.
2. A description of new schools or additions to existing schools needed to meet the
building adequacy standards prescribed in section 15-2011. The description shall include:
(a) The grade levels and the total number of pupils that the school or addition is
intended to serve.
(b) The year in which it is necessary for the school or addition to begin
operations.
(c) A timeline that shows the planning and construction process for the school or
addition.
3. Long-term projections of the need for land for new schools.
4. Any other necessary information required by the school facilities board to
evaluate a school district's capital plan.
5. If a school district pays tuition for all or a portion of the school district's
high school pupils to another school district, the capital plan shall indicate the number
of pupils for which the district pays tuition to another district. If a school district
accepts pupils from another school district pursuant to section 15-824, subsection A, the
school district shall indicate the projections for this population separately. This
paragraph does not apply to a small isolated school district as defined in section
15-901.
C. If the capital plan indicates a need for a new school or an addition to an
existing school within the next four years or a need for land within the next ten years,
the school district shall submit its plan to the school facilities board by September 1
and shall request monies from the new school facilities fund for the new construction or
land. Monies provided for land shall be in addition to any monies provided pursuant to
subsection D of this section.
D. The school facilities board shall distribute monies from the new school
facilities fund as follows:
1. The school facilities board shall review and evaluate the enrollment projections
and either approve the projections as submitted or revise the projections. In
determining new construction requirements, the school facilities board shall determine
the net new growth of pupils that will require additional square footage that exceeds the
building adequacy standards prescribed in section 15-2011. If the projected growth and
the existing number of pupils exceeds three hundred fifty pupils who are served in a
school district other than the pupil's resident school district, the school facilities
board, the receiving school district and the resident school district shall develop a
capital facilities plan on how to best serve those pupils. A small isolated school
district as defined in section 15-901 is not required to develop a capital facilities
plan pursuant to this paragraph.
2. If the approved projections indicate that additional space will not be needed
within the next two years for elementary schools or three years for middle or high
schools in order to meet the building adequacy standards prescribed in section 15-2011,
the request shall be held for consideration by the school facilities board for possible
future funding and the school district shall annually submit an updated plan until the
additional space is needed.
3. If the approved projections indicate that additional space will be needed within
the next two years for elementary schools or three years for middle or high schools in
order to meet the building adequacy standards prescribed in section 15-2011, the school
facilities board shall provide an amount as follows:
(a) Determine the number of pupils requiring additional square footage to meet
building adequacy standards. This amount for elementary schools shall not be less than
the number of new pupils for whom space will be needed in the next year and shall not
exceed the number of new pupils for whom space will be needed in the next five years.
This amount for middle and high schools shall not be less than the number of new pupils
for whom space will be needed in the next four years and shall not exceed the number of
new pupils for whom space will be needed in the next eight years.
(b) Multiply the number of pupils determined in subdivision (a) of this paragraph
by the square footage per pupil. The square footage per pupil is ninety square feet per
pupil for preschool children with disabilities, kindergarten programs and grades one
through six, one hundred square feet for grades seven and eight, one hundred thirty-four
square feet for a school district that provides instruction in grades nine through twelve
for fewer than one thousand eight hundred pupils and one hundred twenty-five square feet
for a school district that provides instruction in grades nine through twelve for at
least one thousand eight hundred pupils. The total number of pupils in grades nine
through twelve in the district shall determine the square footage factor to use for net
new pupils. The school facilities board may modify the square footage requirements
prescribed in this subdivision for particular schools based on any of the following
factors:
(i) The number of pupils served or projected to be served by the school district.
(ii) Geographic factors.
(iii) Grade configurations other than those prescribed in this subdivision.
(iv) Compliance with minimum school facility adequacy requirements established
pursuant to section 15-2011.
(c) Multiply the product obtained in subdivision (b) of this paragraph by the cost
per square foot. The cost per square foot is ninety dollars for preschool children with
disabilities, kindergarten programs and grades one through six, ninety-five dollars for
grades seven and eight and one hundred ten dollars for grades nine through twelve. The
cost per square foot shall be adjusted annually for construction market considerations
based on an index identified or developed by the joint legislative budget committee as
necessary but not less than once each year. The school facilities board shall multiply
the cost per square foot by 1.05 for any school district located in a rural area. The
school facilities board may modify the base cost per square foot prescribed in this
subdivision for particular schools based on geographic conditions or site conditions.
For the purposes of this subdivision, "rural area" means an area outside a thirty-five
mile radius of a boundary of a municipality with a population of more than fifty thousand
persons.
(d) Once the school district governing board obtains approval from the school
facilities board for new facility construction funds, additional portable or modular
square footage created for the express purpose of providing temporary space for pupils
until the completion of the new facility shall not be included by the school facilities
board for the purpose of new construction funding calculations. On completion of the new
facility construction project, if the portable or modular facilities continue in use, the
portable or modular facilities shall be included as prescribed by this chapter, unless
the school facilities board approves their continued use for the purpose of providing
temporary space for pupils until the completion of the next new facility that has been
approved for funding from the new school facilities fund.
4. For projects approved after December 31, 2001, and notwithstanding paragraph 3
of this subsection, a unified school district that does not have a high school is not
eligible to receive high school space as prescribed by section 15-2011 and this section
unless the unified district qualifies for geographic factors prescribed by paragraph 3,
subdivision (b), item (ii) of this subsection.
E. Monies for architectural and engineering fees, project management and
preconstruction services shall be distributed on the completion of the analysis by the
school facilities board of the school district's request. After receiving monies pursuant
to this subsection, the school district shall submit a design development plan for the
school or addition to the school facilities board before any monies for construction are
distributed. If the school district's request meets the building adequacy standards, the
school facilities board may review and comment on the district's plan with respect to the
efficiency and effectiveness of the plan in meeting state square footage and facility
standards before distributing the remainder of the monies. If the school facilities board
modifies the cost per square foot as prescribed in subsection D, paragraph 3, subdivision
(c), the school facilities board may deduct the cost of project management services and
preconstruction services from the required cost per square foot. The school facilities
board may decline to fund the project if the square footage is no longer required due to
revised enrollment projections.
F. The school facilities board shall distribute the monies needed for land for new
schools so that land may be purchased at a price that is less than or equal to fair
market value and in advance of the construction of the new school. If necessary, the
school facilities board may distribute monies for land to be leased for new schools if
the duration of the lease exceeds the life expectancy of the school facility by at least
fifty per cent. The proceeds derived through the sale of any land purchased or partially
purchased with monies provided by the school facilities board shall be returned to the
state fund from which it was appropriated and to any other participating entity on a
proportional basis. If a school district acquires real property by donation at an
appropriate school site approved by the school facilities board, the school facilities
board shall distribute an amount equal to twenty per cent of the fair market value of the
donated real property that can be used for academic purposes. The school district shall
place the monies in the unrestricted capital outlay fund and increase the unrestricted
capital outlay limit by the amount of monies placed in the fund. Monies distributed
under this subsection shall be distributed from the new school facilities fund. A school
district shall not pay a consultant a percentage of the value of any of the following:
1. Donations of real property, services or cash from any of the following:
(a) Entities that have offered to provide construction services to the school
district.
(b) Entities that have been contracted to provide construction services to the
school district.
(c) Entities that build residential units in that school district.
(d) Entities that develop land for residential use in that school district.
2. Monies received from the school facilities board on behalf of the school
district.
3. Monies paid by the school facilities board on behalf of the school district.
G. In addition to distributions to school districts based on pupil growth
projections, a school district may submit an application to the school facilities board
for monies from the new school facilities fund if one or more school buildings have
outlived their useful life. If the school facilities board determines that the school
district needs to build a new school building for these reasons, the school facilities
board shall remove the square footage computations that represent the building from the
computation of the school district's total square footage for purposes of this section.
If the square footage recomputation reflects that the school district no longer meets
building adequacy standards, the school district qualifies for a distribution of monies
from the new school construction formula in an amount determined pursuant to subsection D
of this section. Buildings removed from a school district's total square footage
pursuant to this subsection shall not be included in the computation of monies from the
building renewal fund established by section 15-2031. The school facilities board may
modify the base cost per square foot prescribed in this subsection under extraordinary
circumstances for geographic factors or site conditions.
H. School districts that receive monies from the new school facilities fund shall
establish a district new school facilities fund and shall use the monies in the district
new school facilities fund only for the purposes prescribed in this section. By October
15 of each year, each school district shall report to the school facilities board the
projects funded at each school in the previous fiscal year with monies from the district
new school facilities fund and shall provide an accounting of the monies remaining in the
new school facilities fund at the end of the previous fiscal year.
I. If a school district has surplus monies received from the new school facilities
fund, the school district may use the surplus monies only for capital purposes for the
project for up to one year after completion of the project. If the school district
possesses surplus monies from the new school construction project that have not been
expended within one year of the completion of the project, the school district shall
return the surplus monies to the school facilities board for deposit in the new school
facilities fund.
J. The board's consideration of any application filed after July 1, 2001 or after
December 31 of the year in which the property becomes territory in the vicinity of a
military airport or ancillary military facility as defined in section 28-8461 for monies
to fund the construction of new school facilities proposed to be located in territory in
the vicinity of a military airport or ancillary military facility shall include, if after
notice is transmitted to the military airport pursuant to section 15-2002 and before the
public hearing the military airport provides comments and analysis concerning
compatibility of the proposed school facilities with the high noise or accident potential
generated by military airport or ancillary military facility operations that may have an
adverse effect on public health and safety, consideration and analysis of the comments
and analysis provided by the military airport before making a final determination.
K. If a school district uses its own project manager for new school
construction, the members of the school district governing board and the project manager
shall sign an affidavit stating that the members and the project manager understand and
will follow the minimum adequacy requirements prescribed in section 15-2011.
L. The school facilities board shall establish a separate account in the new school
facilities fund designated as the litigation account to pay attorney fees, expert witness
fees and other costs associated with litigation in which the school facilities board
pursues the recovery of damages for deficiencies correction that resulted from alleged
construction defects or design defects that the school facilities board believes caused
or contributed to a failure of the school building to conform to the building adequacy
requirements prescribed in section 15-2011. Attorney fees paid pursuant to this
subsection shall not exceed the market rate for similar types of litigation. Monies
recovered as damages pursuant to this subsection shall be used to offset debt service on
the correction of existing deficiencies as prescribed by section 15-2021. The joint
committee on capital review shall conduct an annual review of the litigation account,
including the costs associated with current and potential litigation.
M. Until the state board of education and the auditor general adopt rules pursuant
to section 15-213, subsection I, the school facilities board may allow school districts
to contract for construction services and materials through the qualified select bidders
list method of project delivery for new school facilities pursuant to this section.
N. The school facilities board shall submit a report on project management services
and preconstruction services to the governor, the president of the senate and the speaker
of the house of representatives by December 31 of each year. The report shall compare
projects that use project management and preconstruction services with those that do not.
The report shall address cost, schedule and other measurable components of a construction
project. School districts, construction manager at risk firms and project management
firms that participate in a school facilities board funded project shall provide the
information required by the school facilities board in relation to this report.
15-2051 Authorization of state school facilities revenue bonds
A. The school facilities board may issue negotiable revenue bonds pursuant to this
article. If authorized by the legislature, bonds may be issued under this article in a
principal amount not exceeding two hundred million dollars in a fiscal year to:
1. Provide monies to pay the cost of:
(a) Acquiring real property and constructing new school facilities as provided by
section 15-2041.
(b) Bond related expenses including any expenses incurred by the school facilities
board to issue and administer its bonds including underwriting fees and costs, trustee
fees, financial consultant fees, printing and advertising costs, paying agent fees,
transfer agent fees, legal, accounting, feasibility consultant and other professional
fees and expenses, bond insurance or other credit enhancements or liquidity facilities,
attorney and accounting fees and expenses related to credit enhancement, bond insurance
or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and
telephone expenses and all other fees considered necessary by the school facilities board
in order to market and administer the bonds.
2. Fully or partially fund any reserves or sinking accounts established by the bond
resolution.
B. The school facilities board shall authorize the bonds by resolution. The
resolution shall prescribe:
1. The fixed or variable rate or rates of interest, the date or dates on which
interest is payable and the denominations of the bonds.
2. The date or dates of the bonds and maturity, within ten years after the date of
issuance.
3. The form of the bonds.
4. The manner of executing the bonds.
5. The medium and place of payment.
6. The terms of redemption, which may provide for a premium for early redemption.
C. The bonds issued pursuant to this article shall be known as state school
facilities revenue bonds.
15-2052 Issuance and sale of revenue bonds
A. The school facilities board shall issue the bonds in the number and amount
provided in the resolution.
B. The bonds shall be sold at public or private sale at the price and on the terms
prescribed in the resolution at, above or below par.
C. The net proceeds of the sale of the bonds shall be deposited in the revenue bond
proceeds fund established pursuant to section 15-2053.
15-2053 School facilities revenue bond proceeds fund; use for new school facilities
A. If the school facilities board issues revenue bonds under this article, the
board shall establish a school facilities revenue bond proceeds fund consisting of the
net proceeds received from the sale of the bonds.
B. The school facilities board may use monies in the school facilities revenue bond
proceeds fund only for the purposes provided in section 15-2051, subsection A. Monies in
the revenue bond proceeds fund are exempt from lapsing under section 35-190.
C. The state treasurer or bond trustee shall administer and account for the school
facilities revenue bond proceeds fund.
15-2054 School facilities revenue bond debt service fund
A. The school facilities board shall establish a school facilities revenue bond
debt service fund consisting of monies transferred to the fund pursuant to sections
37-521 and 42-5030.01.
B. Monies in the school facilities revenue bond debt service fund may be used only
for the purposes authorized by this article.
C. The state treasurer or bond trustee shall administer and account for the school
facilities revenue bond debt service fund.
15-2055 Securing principal and interest (L05, Ch. 287, sec. 4. Eff. 7/1/06) A. In connection with issuing bonds authorized by this article and to secure the principal and interest on the bonds, the school facilities board by resolution may: 1. Segregate the school facilities revenue bond debt service fund into one or more accounts and subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the school facilities revenue bond debt service fund or into any account or subaccount in the fund. 2. Provide that the bonds issued under this article are secured by a first lien on the monies paid into the school facilities revenue bond debt service fund as provided by section 37-521, subsection B, paragraph 1 and section 42-5030.01, and pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the school facilities revenue bond debt service fund, any account or subaccount in the fund or in the school facilities revenue bond proceeds fund as is necessary to secure and pay the principal, the interest and any premium on the bonds as they come due. 3. Establish priorities among bondholders based on criteria adopted by the board. 4. Set aside, regulate and dispose of reserves and sinking accounts. 5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given. 6. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues authorized by this article and available to the board. 7. Provide for the services of trustees, cotrustees, agents and consultants and other specialized services with respect to the bonds. 8. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds. 9. Refund any bonds issued by the board, if these bonds are secured from the same source of revenues as the bonds authorized by this article, by issuing new bonds. 10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article. B. Bonds issued to refund any bonds issued by the board as provided by subsection A, paragraphs 9 and 10 of this section are not subject to legislative authorization or the two hundred million dollar limitation prescribed by section 15-2051, subsection A. 15-2055 Securing principal and interest
(L00, 5thss, Ch. 1, sec. 24)
A. In connection with issuing bonds authorized by this article and to secure the
principal and interest on the bonds, the school facilities board by resolution may:
1. Segregate the school facilities revenue bond debt service fund into one or more
accounts and subaccounts and provide that bonds issued under this article may be secured
by a lien on all or part of the monies paid into the school facilities revenue bond debt
service fund or into any account or subaccount in the fund.
2. Provide that the bonds issued under this article are secured by a first lien on
the monies paid into the school facilities revenue bond debt service fund as provided by
section 37-521, subsection B, paragraph 1 and section 42-5030.01, subsection A, and
pledge and assign to or in trust for the benefit of the holder or holders of the bonds
all or part of the monies in the school facilities revenue bond debt service fund, any
account or subaccount in the fund or in the school facilities revenue bond proceeds fund
as is necessary to secure and pay the principal, the interest and any premium on the
bonds as they come due.
3. Establish priorities among bondholders based on criteria adopted by the board.
4. Set aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of which must
consent to and the manner in which the consent may be given.
6. Provide for payment of bond related expenses from the proceeds of the sale of
the bonds or other revenues authorized by this article and available to the board.
7. Provide for the services of trustees, cotrustees, agents and consultants and
other specialized services with respect to the bonds.
8. Take any other action that in any way may affect the security and protection of
the bonds or interest on the bonds.
9. Refund any bonds issued by the board, if these bonds are secured from the same
source of revenues as the bonds authorized by this article, by issuing new bonds.
10. Issue bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article.
B. Bonds issued to refund any bonds issued by the board as provided by subsection
A, paragraphs 9 and 10 of this section are not subject to legislative authorization or
the two hundred million dollar limitation prescribed by section 15-2051, subsection A.
15-2056 Lien of pledge
A. Any pledge made under this article is valid and binding from the time when the
pledge is made.
B. The monies so pledged and received by the board to be placed in the school
facilities revenue bond debt service fund are immediately subject to the lien of the
pledge without any future physical delivery or further act. Any lien of any pledge is
valid and binding against all parties that have claims of any kind against the board,
regardless of whether the parties have notice of the lien. The official resolution or
trust indenture or any instrument by which this pledge is created, when adopted by the
board, is notice to all concerned of the creation of the pledge, and those instruments
need not be recorded in any other place to perfect the pledge.
15-2057 Bond purchase; cancellation
The school facilities board may purchase bonds for cancellation out of any monies
available for the purchase, at a price of not more than either of the following:
1. If the bonds are redeemable at the time of the purchase, the applicable
redemption price plus accrued interest to the next interest payment date on the bonds.
2. If the bonds are not redeemable at the time of the purchase, the applicable
redemption price on the first date after the purchase on which the bonds become subject
to redemption plus accrued interest to that date.
15-2059 Payment of revenue bonds
A. The revenue bonds shall be paid solely from monies from the school facilities
revenue bond debt service fund established by section 15-2054 and other monies that are
credited to the school facilities revenue bond debt service fund.
B. The state treasurer or the paying agent for the revenue bonds shall cancel all
revenue bonds when paid.
15-2060 Investment of monies in school facilities revenue bond proceeds fund
A. As provided by section 15-2062, the school facilities board may authorize the
state treasurer or bond trustee to invest monies in the school facilities revenue bond
proceeds fund established by section 15-2053.
B. The order directing an investment shall state a specified time when the proceeds
from the sale of the bonds will be used. The state treasurer or bond trustee shall make
the investment in such a way as to mature at the specified date.
C. All monies earned as interest or otherwise derived from the investment of the
monies in the school facilities revenue bond proceeds fund shall be credited to the
school facilities revenue bond debt service fund established by section 15-2054.
15-2061 Investment of monies in the school facilities revenue bond debt service fund
A. The school facilities board may authorize the state treasurer or bond trustee to
invest and reinvest any monies in the school facilities revenue bond debt service fund as
provided by section 15-2062.
B. All monies earned as interest or otherwise derived from the investment of the
monies in the school facilities revenue bond debt service fund shall be credited to that
fund.
15-2062 Authorized investments of fund monies
A. On notice from the school facilities board, the state treasurer or bond trustee
shall invest and divest monies in either the school facilities revenue bond proceeds fund
or the school facilities revenue debt service fund in any of the following:
1. Obligations issued or guaranteed by the United States or any of the senior debt
of its agencies, sponsored agencies, corporations, sponsored corporations or
instrumentalities.
2. State, county or municipal bonds issued in this state on which the payments of
interest have not been deferred.
3. Investment agreements and repurchase agreements collateralized by investments
described in paragraph 1.
B. The purchase of the securities shall be made by the state treasurer or bond
trustee on authority of a resolution of the board. The treasurer or bond trustee shall
act as custodian of all securities purchased. The securities may be sold on an order of
the board.
15-2063 Audit
A. The school facilities board shall cause an annual audit to be made of the school
facilities revenue bond proceeds fund established in section 15-2053 and the school
facilities revenue bond debt service fund established in section 15-2054, including all
accounts and subaccounts in the funds. A certified public accountant shall conduct the
audit within ninety days after the end of the fiscal year.
B. The school facilities board shall immediately file a certified copy of the audit
with the auditor general. The auditor general may make any further audits and
examinations that are necessary and take appropriate action relating to the audit or
examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes
no official action within thirty days after the audit is filed, the audit is considered
to be sufficient.
C. The school facilities board shall pay negotiated and approved fees and costs of
the certified public accountant and auditor general under this section from the school
facilities revenue bond debt service fund established by section 15-2054.
15-2064 Characteristics of bonds; negotiable; exemption from taxation; obligation; legal investments
A. Bonds issued under this article are fully negotiable within the meaning and for
all purposes of the uniform commercial code, subject only to any provisions for
registration, regardless of whether the bonds actually constitute negotiable instruments
under the uniform commercial code.
B. The bonds, their transfer and the income from the bonds are at all times free
from taxation in this state.
C. Bonds issued under this article:
1. Are obligations of the board. The members of the board and persons executing
the bonds are not personally liable for payment of the bonds.
2. Are payable only according to their terms.
3. Are not general, special or other obligations of this state.
4. Do not constitute a debt of this state.
5. Are not enforceable against this state nor is payment of the bonds enforceable
out of any monies other than the revenue pledged and assigned to, or in trust for the
benefit of, the holder or holders of the bonds.
6. Are securities in which public officers and bodies of this state and of
municipalities and political subdivisions of this state, all companies, associations and
other persons carrying on an insurance business, all financial institutions, investment
companies and other persons carrying on a banking business, all fiduciaries and all other
persons who are authorized to invest in government obligations may properly and legally
invest.
7. Are securities that may be deposited with public officers or bodies of this
state and municipalities and political subdivisions of this state for purposes that
require the deposit of government bonds or obligations.
15-2065 Effect of changing circumstances on bonds; agreement of state
A. Bonds issued under this article remain valid and binding obligations of the
board notwithstanding that before the delivery of the bonds any of the persons whose
signatures appear on the bonds cease to be members of the school facilities board.
B. An amendment of any provision of this article does not diminish or impair the
validity of bonds issued under this article or the remedies and rights of bondholders.
C. This state pledges to and agrees with the holders of the bonds authorized by
this article that this state will not limit, alter or impair the rights and remedies of
the bondholders, until all bonds issued under this article, together with interest on the
bonds, interest on any unpaid installments of principal or interest and all costs and
expenses in connection with any action or proceedings by or on behalf of the bondholders,
are fully met and discharged. The board, as agent for this state, may include this
pledge and undertaking in its resolutions and indentures authorizing and securing the
bonds.
15-2066 Validity of bonds; certification by attorney general
A. This article constitutes full authority for authorizing and issuing bonds
without reference to any other law of this state. No other law with regard to
authorizing or issuing obligations or that in any way impedes or restricts performing the
acts authorized by this article may be construed to apply to any proceedings taken or
acts done pursuant to this article.
B. The validity of bonds issued under this article does not depend on and is not
affected by the legality of any proceeding relating to any action by the school
facilities board in granting or lending monies or the acquisition, construction or
improvement of any facility paid with monies provided by the board.
C. The school facilities board may submit to the attorney general revenue bonds to
be issued under this article after all proceedings for authorizing the bonds have been
completed. Within fifteen days after submission, the attorney general shall examine the
bonds and pass on the validity of the bonds and the regularity of the proceedings. If
the bonds and proceedings comply with the Constitution of ARIZONA and this article, and
if the bonds when delivered and paid for will constitute binding and legal obligations of
the board, the attorney general shall certify in substance that the bonds are issued
according to the constitution and laws of this state. The certificate shall also state
that the bonds are also validly secured by the obligation to transfer monies from
designated sources of revenue, including income on the permanent state school fund
established by section 37-521, to cover any insufficiencies.
D. The bonds shall recite that they are regularly issued pursuant to this
article. That recital, together with the certification by the attorney general under
subsection C of this section, constitutes prima facie evidence of the legality and
validity of the bonds. From and after the sale and delivery of the bonds, they are
incontestable by the school facilities board or this state.
15-2081 Authorization of state school improvement revenue bonds; expiration
A. The school facilities board may issue revenue bonds in a principal amount not to
exceed eight hundred million dollars pursuant to this article. The school facilities
board may also issue qualified zone academy bonds within the meaning of section 1397e of
the United States internal revenue code of 1986 or successor provisions pursuant to this
article in a principal amount not to exceed twenty million dollars. The qualified zone
academy bonds shall be separately accounted for within the school improvement revenue
bond proceeds fund established by section 15-2083. All bonds authorized by this section
may be issued for the following purposes:
1. To provide monies to pay the cost of:
(a) Correcting existing deficiencies as prescribed by section 15-2021.
(b) Bond related expenses including any expenses incurred by the school facilities
board to issue and administer its bonds including underwriting fees and costs, trustee
fees, financial consultant fees, printing and advertising costs, paying agent fees,
transfer agent fees, legal, accounting, feasibility consultant and other professional
fees and expenses, bond insurance or other credit enhancements or liquidity facilities,
attorney and accounting fees and expenses related to credit enhancement, bond insurance
or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and
telephone expenses and all other fees considered necessary by the school facilities board
in order to market and administer the bonds.
2. To fully or partially fund any reserves or sinking accounts established by the
bond resolution.
B. The school facilities board shall authorize the bonds by resolution. The
resolution shall prescribe:
1. The fixed or variable rate or rates of interest, the date or dates on which
interest is payable and the denominations of the bonds.
2. The date or dates of the bonds and maturity, within twenty years after the date
of issuance.
3. The form of the bonds.
4. The manner of executing the bonds.
5. The medium and place of payment.
6. The terms of redemption, which may provide for a premium for early redemption.
C. The bonds issued pursuant to this article shall be known as state school
improvement revenue bonds.
D. The authority of the school facilities board to issue school improvement revenue
bonds pursuant to this article expires from and after June 30, 2003, except for bonds
issued to refund any bonds issued by the board. 15-2082 Issuance and sale of school improvement revenue bonds
A. The school facilities board shall issue the school improvement revenue bonds in
the number and amount provided in the resolution.
B. The bonds shall be sold at public or private sale at the price and on the terms
prescribed in the resolution at, above or below par.
C. The net proceeds of the sale of the bonds shall be deposited in the school
improvement revenue bond proceeds fund established pursuant to section 15-2083.
15-2083 School improvement revenue bond proceeds fund; use for school improvements
A. If the school facilities board issues revenue bonds under this article, the
board shall establish a school improvement revenue bond proceeds fund consisting of the
net proceeds received from the sale of the bonds.
B. The school facilities board may use monies in the school improvement revenue
bond proceeds fund only for the purposes provided in section 15-2081, subsection
A. Monies in the school improvement revenue bond proceeds fund are exempt from lapsing
under section 35-190.
C. The state treasurer or bond trustee shall administer and account for the school
improvement revenue bond proceeds fund.
15-2084 School improvement revenue bond debt service fund
A. The school facilities board shall establish a school improvement revenue bond
debt service fund consisting of monies received by the school facilities board pursuant
to section 42-5029, subsection E and section 37-521, subsection B, paragraph 1. All
monies received pursuant to section 42-5029, subsection E shall be accounted for
separately and shall be used only for debt service of school improvement revenue bonds.
All monies received pursuant to section 37-521, subsection B, paragraph 1 shall be
accounted for separately and shall be used only for debt service of qualified zone
academy bonds.
B. Monies in the school improvement revenue bond debt service fund may be used only
for the purposes authorized by this article.
C. The state treasurer or bond trustee shall administer and account for the school
improvement revenue bond debt service fund.
15-2085 Securing principal and interest
A. In connection with issuing bonds authorized by this article and to secure the
principal and interest on the bonds, the school facilities board by resolution may:
1. Segregate the school improvement revenue bond debt service fund into one or more
accounts and subaccounts and provide that bonds issued under this article may be secured
by a lien on all or part of the monies paid into the revenue bond debt service fund or
into any account or subaccount in the fund.
2. Provide that the bonds issued under this article are secured by a first lien on
the monies paid into the school improvement revenue bond debt service fund as provided by
section 42-5029, subsection E, paragraph 1 and pledge and assign to or in trust for the
benefit of the holder or holders of the bonds all or part of the monies in the school
improvement revenue bond debt service fund, in any account or subaccount in the fund or
in the school improvement revenue bond proceeds fund as is necessary to secure and pay
the principal, the interest and any premium on the bonds as they come due.
3. Establish priorities among bondholders based on criteria adopted by the board.
4. Set aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of which must
consent to and the manner in which the consent may be given.
6. Provide for payment of bond related expenses from the proceeds of the sale of
the bonds or other revenues authorized by this article and available to the board.
7. Provide for the services of trustees, cotrustees, agents and consultants and
other specialized services with respect to the bonds.
8. Take any other action that in any way may affect the security and protection of
the bonds or interest on the bonds.
9. Refund any bonds issued by the board, if these bonds are secured from the same
source of revenues as the bonds authorized by this article, by issuing new bonds, whether
at or before maturity of the bonds being refunded.
10. Issue bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article.
B. Bonds issued to refund any bonds issued by the board as provided by subsection
A, paragraphs 9 and 10 of this section are not subject to legislative authorization or
subject to the eight hundred million dollar limitation prescribed by section 15-2081,
subsection A.
15-2086 Lien of pledge
A. Any pledge made under this article is valid and binding from the time when the
pledge is made.
B. The monies so pledged and received by the board to be placed in the school
improvement revenue bond debt service fund are immediately subject to the lien of the
pledge without any future physical delivery or further act. Any lien of any pledge is
valid and binding against all parties that have claims of any kind against the board,
regardless of whether the parties have notice of the lien. The official resolution or
trust indenture or any instrument by which this pledge is created, when adopted by the
board, is notice to all concerned of the creation of the pledge, and those instruments
need not be recorded in any other place to perfect the pledge.
15-2087 Bond purchase; cancellation
The school facilities board may purchase bonds for cancellation out of any monies
available for the purchase at a price of not more than either of the following:
1. If the bonds are redeemable at the time of the purchase, the applicable
redemption price plus accrued interest to the next interest payment date on the bonds.
2. If the bonds are not redeemable at the time of the purchase, the applicable
redemption price on the first date after the purchase on which the bonds become subject
to redemption plus accrued interest to that date.
15-2088 Payment of revenue bonds
A. The revenue bonds shall be paid solely from monies from the school improvement
revenue bond debt service fund established pursuant to section 15-2084 and other monies
that are credited to the school improvement revenue bond debt service fund.
B. The state treasurer or the paying agent for the revenue bonds shall cancel all
revenue bonds when paid.
15-2089 Investment of monies in school improvement revenue bond proceeds fund
A. As provided by section 15-2091, the school facilities board may authorize the
state treasurer or bond trustee to invest monies in the school improvement revenue bond
proceeds fund established pursuant to section 15-2083.
B. The order directing an investment shall state a specified time when the proceeds
from the sale of the bonds will be used. The state treasurer or bond trustee shall make
the investment in such a way as to mature at the specified date.
C. All monies earned as interest or otherwise derived from the investment of the
monies in the school improvement revenue bond proceeds fund shall be credited to the
school improvement revenue bond debt service fund established by section 15-2084.
15-2090 Investment of monies in the school improvement revenue bond debt service fund
A. The school facilities board may authorize the state treasurer or bond trustee to
invest and reinvest any monies in the school improvement revenue bond debt service fund
as provided by section 15-2091.
B. All monies earned as interest or otherwise derived from the investment of the
monies in the school improvement revenue bond debt service fund shall be credited to that
fund.
15-2091 Authorized investments of fund monies
A. On notice from the school facilities board, the state treasurer or bond trustee
shall invest and divest monies in either the school improvement revenue bond proceeds
fund or the school improvement revenue debt service fund in any of the following:
1. Obligations issued or guaranteed by the United States or any of the senior debt
of its agencies, sponsored agencies, corporations, sponsored corporations or
instrumentalities.
2. State, county or municipal bonds that are issued in this state and on which the
payments of interest have not been deferred.
3. Investment agreements and repurchase agreements collateralized by investments
described in paragraph 1 of this subsection.
B. The purchase of the securities shall be made by the state treasurer or bond
trustee on authority of a resolution of the board. The treasurer or bond trustee shall
act as custodian of all securities purchased. The securities may be sold on an order of
the board.
15-2092 Audit
A. The school facilities board shall cause an annual audit to be made of the school
improvement revenue bond proceeds fund established by section 15-2083 and the school
improvement revenue bond debt service fund established by section 15-2084, including all
accounts and subaccounts in the funds. A certified public accountant shall conduct the
audit within ninety days after the end of the fiscal year.
B. The school facilities board shall immediately file a certified copy of the audit
with the auditor general. The auditor general may make any further audits and
examinations that are necessary and may take appropriate action relating to the audit or
examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes
no official action within thirty days after the audit is filed, the audit is considered
to be sufficient.
C. The school facilities board shall pay negotiated and approved fees and costs of
the certified public accountant and auditor general under this section from the revenue
bond debt service fund established by section 15-2084.
15-2093 Characteristics of bonds; negotiable; exemption from taxation; obligation; legal investments
A. Bonds issued under this article are fully negotiable within the meaning and for
all purposes of the uniform commercial code, subject only to any provisions for
registration, regardless of whether the bonds actually constitute negotiable instruments
under the uniform commercial code.
B. The bonds, their transfer and the income from the bonds are at all times free
from taxation in this state.
C. Bonds issued under this article:
1. Are obligations of the board. The members of the board and persons executing
the bonds are not personally liable for payment of the bonds.
2. Are payable only according to their terms.
3. Do not constitute a debt of this state.
4. Are not enforceable against this state nor is payment of the bonds enforceable
out of any monies other than the revenue pledged and assigned to, or in trust for the
benefit of, the holder or holders of the bonds.
5. Are securities in which public officers and bodies of this state and of
municipalities and political subdivisions of this state, all companies, associations and
other persons carrying on an insurance business, all financial institutions, investment
companies and other persons carrying on a banking business, all fiduciaries and all other
persons who are authorized to invest in government obligations may properly and legally
invest.
6. Are securities that may be deposited with public officers or bodies of this
state and municipalities and political subdivisions of this state for purposes that
require the deposit of government bonds or obligations.
15-2094 Effect of changing circumstances on bonds; agreement of state
A. Bonds issued under this article remain valid and binding obligations of the
board notwithstanding that before the delivery of the bonds any of the persons whose
signatures appear on the bonds cease to be members of the school facilities board.
B. An amendment of any provision of this article does not diminish or impair the
validity of bonds issued under this article or the remedies and rights of bondholders.
C. This state pledges to and agrees with the holders of the bonds authorized by
this article that this state will not limit, alter or impair the rights and remedies of
the bondholders until all bonds issued under this article, together with interest on the
bonds, interest on any unpaid installments of principal or interest and all costs and
expenses in connection with any action or proceedings by or on behalf of the bondholders,
are fully met and discharged. The board, as agent for this state, may include this
pledge and undertaking in its resolutions and indentures authorizing and securing the
bonds.
15-2095 Validity of bonds; certification by attorney general
A. This article constitutes full authority for authorizing and issuing bonds
without reference to any other law of this state. No other law with regard to authorizing
or issuing obligations or that in any way impedes or restricts performing the acts
authorized by this article may be construed to apply to any proceedings taken or acts
done pursuant to this article.
B. The validity of bonds issued under this article does not depend on and is not
affected by the legality of any proceeding relating to any action by the school
facilities board in granting or lending monies or the acquisition, construction or
improvement of any facility paid with monies provided by the board.
C. The school facilities board may submit to the attorney general revenue bonds to
be issued under this article after all proceedings for authorizing the bonds have been
completed. Within fifteen days after submission, the attorney general shall examine the
bonds and pass on the validity of the bonds and the regularity of the proceedings. If
the bonds and proceedings comply with the Constitution of ARIZONA and this article, and
if the bonds when delivered and paid for will constitute binding and legal obligations of
the board, the attorney general shall certify in substance that the bonds are issued
according to the constitution and laws of this state.
D. The bonds shall recite that they are regularly issued pursuant to this
article. That recital, together with the certification by the attorney general under
subsection C of this section, constitutes prima facie evidence of the legality and
validity of the bonds. From and after the sale and delivery of the bonds, they are
incontestable by the school facilities board or this state.
15-2101 Definition
For the purposes of this article, "impact and revenues" means the revenues received
by the school district pursuant to 20 United States Code sections 7701 through 7714.
15-2102 Authorization of school district impact aid revenue bonds
A. On voter approval pursuant to section 15-491, a school district governing board
may issue negotiable impact aid revenue bonds pursuant to this article. Bonds may be
issued under this article in a total aggregate amount not to exceed three times the
average of the school district's annual impact aid revenues for the five years
immediately preceding the issuance of the bonds. The bond proceeds may be used to:
1. Provide monies to pay the cost of:
(a) Capital projects authorized under chapter 4, article 5 of this title.
(b) Bond related expenses including any expenses incurred by the school district to
issue and administer its bonds including underwriting fees and costs, trustee fees,
financial consultant fees, printing and advertising costs, paying agent fees, transfer
agent fees, legal, accounting, feasibility consultant and other professional fees and
expenses, bond insurance or other credit enhancements or liquidity facilities, attorney
and accounting fees and expenses related to credit enhancement, bond insurance or
liquidity enhancement, remarketing fees, rating agency fees and costs, travel and
telephone expenses and all other fees considered necessary by the governing board in
order to market and administer the bonds.
2. Fully or partially fund any reserves or sinking accounts established by the bond
resolution.
B. The governing board shall authorize the bonds by resolution. The resolution
shall prescribe:
1. The fixed or variable rate or rates of interest, payable semiannually, and the
denominations of the bonds.
2. The date or dates of the bonds and maturity, within twenty years after the date
of issuance.
3. The form of the bonds.
4. The manner of executing the bonds.
5. The medium and place of payment.
6. The terms of redemption, which may provide for a premium for early redemption.
C. The bonds issued pursuant to this article shall be known as impact aid revenue
bonds.
D. An accommodation school may issue impact aid revenue bonds only if the
accommodation school is located on a military base.
15-2103 Issuance and sale of impact aid revenue bonds
A. The governing board shall issue the bonds in the number and amount provided in
the resolution.
B. The bonds shall be sold at public or private sale at the price and on the terms
prescribed in the resolution for at, above or below par.
C. The proceeds of the sale of the bonds shall be deposited in the county treasury
to the credit of the school district' s impact aid revenue bond building fund. These
deposits may be drawn out for the purposes authorized by this article as other school
monies are drawn.
D. Revenue bond proceeds shall not be expended for items whose useful life is less
than the average life of the bonds issued, except that bond proceeds shall not be
expended for items whose useful life is less than five years. 15-2104 Impact aid revenue bond building and debt service funds
A. If a school district issues impact aid revenue bonds under this article, the
governing board shall establish:
1. An impact aid revenue bond building fund consisting of the net proceeds received
from the sale of the bonds. The fund shall be a continuing fund that is not subject to
reversion.
2. An impact aid revenue bond debt service fund consisting of monies received by
the school district from impact aid revenues.
B. Monies in the impact aid revenue bond building fund and the impact aid revenue
bond debt service fund may be used only for the purposes authorized by this article.
C. The school district shall provide the county treasurer with an impact aid
revenue bond debt service schedule. The county treasurer shall keep an account of all
school district debt service funds that shows the school district to which each fund
belongs. The county treasurer shall credit to the impact aid revenue bond debt service
fund an amount from impact aid revenues equal to the principal and interest that will
become due on the impact aid revenue bonds during the current year. The treasurer shall
receive and credit any interest or income earned by the debt service fund.
D. Notwithstanding any other provision in this article, the annual payment of
principal and interest on impact aid revenue bonds each year shall not exceed
seventy-five per cent of the net impact aid revenues of the school district for the
current year. For the purposes of this subsection, "net impact aid revenues" mean impact
aid revenues for the year after deducting the sum of the following amounts:
1. The amount of any increase in the school district's general budget limit
pursuant to section 15-905, subsections K, O and P.
2. The amount necessary to fund any budget override adopted pursuant to section
15-481, subsection F, J or M.
3. The amount that would be produced by levying the applicable qualifying tax rate
as provided in section 15-971, subsection B, minus the amount levied for primary school
district taxes for the year pursuant to section 15-992, except that if the result is a
negative number, use zero. 15-2105 Securing principal and interest
To secure the principal and interest on the impact aid revenue bonds, the governing
board by resolution may:
1. Segregate the impact aid revenue bond debt service fund into one or more
accounts and subaccounts and provide that bonds issued under this article may be secured
by a lien on all or part of the monies paid into the impact aid revenue bond debt service
fund or into any account or subaccount in the fund.
2. Provide that the bonds issued under this article are secured by a first lien on
the monies paid in the impact aid revenue bond debt service fund as provided by section
15-2104 and pledge and assign to or in trust for the benefit of the holder or holders of
the bonds all or part of the monies in the impact aid revenue bond debt service fund or
an account or subaccount as is necessary to secure and pay the principal, the interest
and any premium on the bonds as they come due.
3. Establish priorities among bondholders based on criteria adopted by the
governing board.
4. Set aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of which must
consent to and the manner in which the consent may be given.
6. Provide for payment of bond related expenses from the proceeds of the sale of
the bonds or other revenues authorized by this article available to the school district.
7. Provide for the services of trustees, cotrustees, agents and consultants and
other specialized services with respect to the bonds.
8. Take any other action that in any way may affect the security and protection of
the bonds or interest on the bonds.
9. Refund any bonds issued by the school district, if these bonds are secured from
the same source of revenues as the bonds authorized by this article, by issuing new
bonds.
10. Issue bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article.
15-2106 Cancellation of unsold impact aid revenue bonds
A. If an impact aid revenue bond issue remains unsold for six months after being
offered for sale, the governing board of the school district or any school district
comprised wholly or partly of territory that was part of the school district at the time
of issuing the bonds may cancel the unsold bonds.
B. The governing board shall fix a time for a hearing on the proposed cancellation
of the unsold bonds. The governing board shall give notice of the time, place and subject
of the hearing. The notice shall be published for ten days before the hearing in a
newspaper of general circulation in the district.
C. At the time and place designated in the notice, the governing board shall hear
reasons for or against the proposed cancellation of the unsold bonds, and if the board
considers it to be in the school district' s best interests, it shall order the unsold
bonds to be cancelled and the bonds and the vote by which they were authorized to be
issued are void.
15-2107 Payment of impact aid revenue bonds; use of surplus monies
A. The impact aid revenue bonds shall be paid solely from monies distributed to the
school district from impact aid revenues and other monies that are authorized by this
article and that are credited to the school district' s impact aid revenue bond debt
service fund.
B. The county treasurer or the paying agent for the impact aid revenue bonds shall
cancel all impact aid revenue bonds when paid. Any surplus monies remaining in the
impact aid revenue bond debt service fund shall be transferred back to the school
district's capital outlay fund.
C. If a balance remains in the school district's impact aid revenue bond building
fund after the acquisition or construction of facilities for which the bonds were issued
is completed and the payment of other related costs, the balance remaining in the impact
aid revenue bond building fund shall be transferred to the school district's capital
outlay fund.
15-2108 Investment of monies in impact aid revenue bond building fund
A. If monies in the impact aid revenue bond building fund are not required to be
used for a period of ten days or more, the governing board may authorize their
investment.
B. The order directing an investment shall state a specified time when the proceeds
from the sale of the bonds will be used. The governing board shall make the investment in
such a way as to mature at the specified date.
C. All monies earned as interest or otherwise derived from the investment of the
monies in the impact aid revenue bond building fund shall be credited to the impact aid
revenue bond debt service fund.
15-2109 Investment of monies in impact aid revenue bond debt service fund
A. The governing board may authorize the investment and reinvestment of any monies
in the school district's impact aid revenue bond debt service fund.
B. All monies earned as interest or otherwise derived from the investment of the
monies in the impact aid revenue bond debt service fund shall be credited to that fund.
C. The impact aid revenue bond debt service fund is a continuing fund and is not
subject to reversion.
15-2110 Authorized investments of fund monies
A. The monies in either the impact aid revenue bond building fund or debt service
fund may be invested and reinvested at the direction of the governing board in any of the
investments authorized by section 15-2062.
B. The purchase of the securities shall be made by the county treasurer or the
treasurer's designated agent on authority of a resolution of the governing board. The
county treasurer shall act as custodian of all securities purchased. The securities may
be sold on an order of the governing board.
15-2111 Audit
A. The governing board shall cause an annual audit to be made of the impact aid
revenue bond building fund and the impact aid revenue bond debt service fund, including
all accounts and subaccounts in the funds. A certified public accountant shall conduct
the audit within ninety days after the end of the fiscal year.
B. The governing board shall immediately file a certified copy of the audit with
the auditor general. The auditor general may make any further audits and examinations
that are considered to be necessary and take appropriate action relating to the audit or
examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes
no official action within thirty days after the audit is filed, the audit is considered
to be sufficient.
C. The governing board shall pay negotiated and approved fees and costs of the
certified public accountant and auditor general under this section from the impact aid
revenue bond debt service fund.
15-2112 Lien of pledge
A. Any pledge made under this article is valid and binding from the time when the
pledge is made.
B. The monies so pledged and received by the school district to be placed in the
impact aid revenue bond debt service fund are immediately subject to the lien of the
pledge without any future physical delivery or further act. Any lien of any pledge is
valid and binding against all parties that have claims of any kind against the school
district, regardless of whether the parties have notice of the lien. The official
resolution or trust indenture or any instrument by which this pledge is created, when
adopted by the governing board, is notice to all concerned of the creation of the pledge,
and those instruments need not be recorded in any other place to perfect the pledge.
15-2113 Characteristics of bonds; negotiable; exemption from taxation; obligation; legal investments
A. Bonds issued under this article are fully negotiable within the meaning and for
all purposes of the uniform commercial code, subject only to any provisions for
registration, regardless of whether the bonds actually constitute negotiable instruments
under the uniform commercial code.
B. The bonds, their transfer and the income from the bonds are at all times free
from taxation in this state.
C. Bonds issued under this article:
1. Are obligations of the school district. The members of the governing board and
persons executing the bonds are not personally liable for payment of the bonds.
2. Are payable only according to their terms.
3. Are not general, special or other obligations of the county or of this state.
4. Do not constitute a debt of the county or of this state.
5. Are not enforceable against the county or this state nor is payment of the bonds
enforceable out of any monies other than the revenue pledged and assigned to, or in trust
for the benefit of, the holder or holders of the bonds.
6. Are securities in which public officers and bodies of this state and of
municipalities and political subdivisions of this state, all companies, associations and
other persons carrying on an insurance business, all financial institutions, investment
companies and other persons carrying on a banking business, all fiduciaries and all other
persons who are authorized to invest in government obligations may properly and legally
invest.
7. Are securities that may be deposited with public officers or bodies of this
state and municipalities and political subdivisions of this state for purposes that
require the deposit of government bonds or obligations.
15-2114 Effect of changing circumstances on bonds; agreement of state
A. Bonds issued under this article remain valid and binding obligations of the
school district notwithstanding that before the delivery of the bonds any of the persons
whose signatures appear on the bonds cease to be officers of the school district.
B. An amendment of any provision of this article does not diminish or impair the
validity of bonds issued under this article or the remedies and rights of bondholders.
C. This state pledges to and agrees with the holders of the bonds authorized by
this article that this state will not limit, alter or impair the ability of a school
district to qualify for impact aid revenues, or in any way impair the rights and remedies
of the bondholders, until all bonds issued under this article, together with interest on
the bonds, interest on any unpaid installments of principal or interest and all costs and
expenses in connection with any action or proceedings by or on behalf of the bondholders,
are fully met and discharged. The governing board, as agent for this state, may include
this pledge and undertaking in its resolutions and indentures authorizing and securing
the bonds.
15-2115 Validity of bonds; certification by attorney general
A. This article constitutes full authority for authorizing and issuing bonds
without reference to any other law of this state. No other law with regard to authorizing
or issuing obligations or that in any way impedes or restricts performing the acts
authorized by this article may be construed to apply to any proceedings taken or acts
done pursuant to this article.
B. The validity of bonds issued under this article is not dependent on or affected
by the legality of any proceeding relating to the acquisition, construction or
improvement of any school district capital project for which the bonds are issued.
C. The governing board may submit to the attorney general revenue bonds to be
issued under this article after all proceedings for authorizing the bonds have been
completed. Within fifteen days after submission, the attorney general shall examine the
bonds and pass on the validity of the bonds and the regularity of the proceedings. ¦ If
the bonds and proceedings comply with the ARIZONA Constitution and this article, and if
the bonds when delivered and paid for will constitute binding and legal obligations of
the school district, the attorney general shall certify in substance that the bonds are
issued according to the constitution and laws of this state. The certificate shall also
state that the bonds are also validly secured by the obligation to transfer impact aid
revenues to cover any insufficiencies.
D. The bonds shall recite that they are regularly issued pursuant to this article.
From and after the sale and delivery of the bonds, they are incontestable by this state
or the school district.
15-2131 Definitions
In this article, unless the context otherwise requires:
1. "HVAC system" means the equipment, distribution network and terminals that
provide, either collectively or individually, the process of heating, ventilation or air
conditioning to a building.
2. "School activity hours" means the time of day in which students or school
personnel occupy school facilities.
3. "Standard 62" means the American society of heating, ventilating, refrigeration
and air conditioning engineers standard 62 entitled "ventilation for acceptable indoor
air quality". 15-2132 Indoor air quality requirements
A. When the school facilities board approves the construction of a school building,
the school facilities board shall conduct an environmental site assessment. The board
shall consider site assessment standards in accordance with the American society for
testing and materials standard E1527, standard practice for environmental site
assessments: phase I environmental site assessment process.
B. The school facilities board shall not approve a school building project if any
of the following conditions exist:
1. The environmental site assessment indicates that the site cannot meet, within
reasonable expenditures, the same criteria established for residential properties.
2. The plans incorporate flat roof construction that does not have adequate pitch
towards drains in order to prevent pooling of water.
3. The plans do not incorporate indoor air quality guidelines that are acceptable
to the board. The board shall consider indoor air quality guidelines in accordance with
the sheet metal and air conditioning contractors national association's publication
entitled "indoor air quality guidelines for occupied buildings under construction".
C. Each school district governing board that installed or renovated its HVAC system
on or after the effective date of this article shall ensure that its HVAC system meets
both of the following requirements:
1. Is maintained and operated in a manner consistent with ventilation standards
acceptable to the board. The board shall consider ventilation standards in accordance
with standard 62.
2. Is operated continuously during school activity hours except during scheduled
maintenance and emergency repairs and except during periods for which school officials
can demonstrate to the governing board's satisfaction that the quantity of outdoor air
supplied by an air supply system that is not mechanically driven meets the requirements
for air changes per hour acceptable to the board.
D. Each school district governing board that installed or renovated its HVAC system
before the effective date of this article shall ensure that its HVAC system is maintained
and operated in accordance with the prevailing maintenance and standards at the time of
the installation or renovation of the HVAC system.
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