Assigned to ED FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2352
school facilities oversight board; continuation
Purpose
Continues the School Facilities Oversight Board (SFOB) for three years.
Background
In 2021, the Legislature transferred the School Facilities Board's duties to the
newly-established Division of School Facilities (Division) and SFOB within the Arizona
Department of Administration (ADOA) (Laws 2021, Chapter 404). The SFOB must: 1) review
and approve student school district population projections to determine New School Facilities
Fund distributions; 2) certify that new school facilities plans meet building adequacy standards;
3) approve or reject school district requests to reduce pupil square footage; 4) adopt minimum
facility adequacy guidelines for the Arizona Schools for the Deaf and Blind; 5) administer the
Lease-To-Own Fund; 6) review the Division's polices for administering the Emergency
Deficiencies Correction Fund and the Building Renewal Grant Fund; and 7) report as outlined
regarding the SFOB's actions. The SFOB may authorize revenue bonds for outlined expenses
(A.R.S. §§ 41-5702; 41-5703; 41-5721; and 41-5731).
The SFOB consists of seven Governor-appointed members who serve four-year terms and
the Superintendent of Public Instruction and Director of the ADOA serving as nonvoting advisory
members. SFOB membership includes two members who are owners or officers of a private
construction company, who have experience in constructing large buildings and whose businesses
do not include school construction and: 1) one representative of a statewide organization of
taxpayers; 2) one registered professional architect; 3) one registered professional engineer; 4) one
person with experience in public school facilities management; and 5) one representative of the
business community (A.R.S. § 41-5701.02).
The House Education Committee of Reference and Senate Education Committee of
Reference (COR) held a public meeting on Tuesday, January 11, 2022, to review the performance
audit and sunset review conducted by the Office of the Auditor General, evaluate the SFOB's
response to the sunset factors and receive public testimony. The COR recommended that the SFOB
be continued for three years until July 1, 2025 (COR Report). The SFOB terminates on July 1,
2022, unless continued by the Legislature (A.R.S. § 41-3022.18).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Continues, retroactive to July 1, 2022, the SFOB until July 1, 2025. FACT SHEET
H.B. 2352
Page 2
2. Repeals the SFOB on January 1, 2026, if:
a) the SFOB has no outstanding state school facilities revenue bonds, state school
improvement revenue bonds and lease-to-own transactions; or
b) the Legislature has otherwise provided for paying or retiring any outstanding state school
facilities revenue bonds, state school improvement revenue bonds and lease-to-own
transactions.
3. Repeals the SFOB, if neither of the conditions relating to outstanding revenue bonds and lease-
to-own transactions are met by January 1, 2026, 30 days after the retirement of all revenue
bonds and any outstanding lease-to-own transactions.
4. Contains a purpose statement.
5. Becomes effective on the general effective date, with a retroactive provision as noted.
House Action
ED 2/1/22 DP 10-0-0-0
3
rd
Read 2/10/22 56-0-4
Prepared by Senate Research
March 18, 2022
LB/MS/slp