HB 4077

REFERENCE TITLE: ASDB; capital improvements; financing; authority.
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 4077
Introduced by
Representatives
  Gutierrez: Blattman, Cavero, Contreras P, De Los Santos, Garcia, Simacek,
  Villegas
AN
ACT
amending sections 15-1301 and 15-1323,
Arizona Revised Statutes; relating to the Arizona state schools for the deaf
and the blind.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-1301, Arizona Revised
Statutes, is amended to read:
START_STATUTE15-1301. Definitions
In this chapter, unless the context otherwise requires:
1. "Board" means the board
of directors for the schools.
1. 2. "Employee
classifications" means one of the following:
(a) Management and supervisory staff who
are on a twelve month twelve-month
schedule.
(b) Teachers,  and credentialed and noncredentialed specialists,
who are on an academic schedule.
(c) Clerical, accounting, maintenance workers and
others who are on a twelve month twelve-month schedule.
(d) Food service workers and
bus drivers who are on an academic schedule.
2. 3. "Hearing
impairment" means hearing impairment as defined has the same meaning prescribed in section 15-761.
3. 4. "Schools":
(a) Means
the Arizona state schools for the deaf and the blind. and
(b) Includes
programs and services offered for the deaf and the blind students by the schools in
conjunction with other educational institutions.
4. 5. "Sensory
impairment" means the following conditions, as defined in section 15-761:
(a) Visual impairment.
(b) Hearing impairment.
(c) Both a visual impairment and
a hearing impairment.
(d) Multiple disabilities, if at least one of the
disabilities is a visual or a hearing impairment.
5. 6. "Visual
impairment" means visual impairment as defined has the same meaning prescribed in section 15-761. END_STATUTE
Sec. 2. Section 15-1323, Arizona Revised
Statutes, is amended to read:
START_STATUTE15-1323. Board of directors; enterprise fund; powers and duties; capital
improvement and school facilities fund; public records; definitions
A. The board may bring actions and proceedings
necessary to protect the interests of the schools. the
board shall institute such proceedings shall be instituted
in the name of the Arizona state schools for the deaf and the blind.
B. The board shall be is trustee of all donations of lands, monies or other things of
value for the benefit of the schools. Notwithstanding title 35,
chapters 1 and 2, the board may invest monies donated to the school
schools through a contract with an investment
specialist. The superintendent of the schools shall annually report
to the board on the use of monies received as donations or income from
donations.
C. The board shall:
1. Maintain an enterprise fund
in which shall be consisting of retained
fees, rentals and other charges received for the use of school facilities for
nonschool events.
D. The board shall:
1. 2. Provide
from the funds monies appropriated
for the schools all the necessary staff, services, supplies and equipment.
2. 3. Prescribe
the system of records and accounts for the schools.
3. 4. Cause
to be kept a record of all important papers.
4. 5. Cause
to be kept a set of books and accounts that show every transaction made, every
appropriation by the legislature for the schools, the purchase, storage and
consumption of supplies for subsistence, construction and other purposes,
receipts from all sources and all expenditures made.
D. The board may:
1. subject to review by the joint
committee on capital review:
(a) Acquire a
project or combination of projects.
(b) Secure
indirect or third-party financing to acquire or improve a project or
combination of projects if The term of the indirect or third-party
financing does not exceed forty years or the useful life of the capital
improvement for which indirect or third-party financing is secured,
whichever occurs earlier.� A private entity is not required to divulge
proprietary information to the joint committee on capital review for the
purposes of the review required by this subdivision.
(c) Borrow
monies to acquire or improve any project or combination of projects.
(d) Acquire
real property, improvements or personal property, including an interest or
right in real property, improvements or personal property, by purchase,
contract, lease-purchase, lease or gift. Any lease-purchase
agreement executed by the board pursuant to this paragraph for land
acquisition, a capital project, an energy system or an energy management system
must include the following provisions:
(i) The
obligation of this state to make any payment under the agreement is a current
expense of the board and is not a general obligation indebtedness of this state
or the board.
(ii) If the
legislature fails to appropriate monies or the board fails to allocate monies
for any periodic payment or renewal term of the agreement, the agreement
terminates at the end of the current term and this state and the board are
relieved of any subsequent obligation under the agreement.
2. Sell, lease as lessor or otherwise
dispose of real property, IMPROVEMENTS or personal property acquired pursuant
to paragraph 1, subdivision (d) of this subsection.
3. Accept a grant, subsidy or loan of
monies from any person, including from a federal agency, on such terms as may
be imposed by the person and pledge the proceeds pursuant to an agreement
entered into by the board and the person.
4. Execute any instrument or perform
any act that is necessary or convenient to implement this chapter.
5. Obtain one or more lines of credit
for cash management or liquidity purposes.
E. The capital improvement and school
facilities fund is established consisting of proceeds from the sale of
property, gifts, grants, donations, devises and monies from any other lawful
source.� On notice from the 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 fund.� Monies in the fund are exempt from
the provisions of section 35-190 relating to lapsing of appropriations.�
The board shall administer the fund and distribute monies in the fund to make
payments pursuant to lease-purchase agreements entered into by the board
pursuant to subsection D of this section.� In addition to lease-purchase
agreement payments, the board may use monies in the fund for capital
improvements, including new construction, maintenance, repair, RENOVATIONS and
improvements of projects.� In addition to the requirements prescribed by
subsection D of this section, lease-purchase agreements that the board
enters into pursuant to this SECTION aRE subject to the following requirements:
1. The total amount of lease-purchase
agreements entered into by the board pursuant to this section does not exceed
$16,000,000.
2. The total amount of lease-purchase
agreements entered into by the board in fiscal year 2026-2027 does not
exceed $8,000,000.
3. The total amount of lease-purchase
agreements entered into by the board pursuant to this section in fiscal year
2027-2028 does not exceed $8,000,000.
4. In entering into any lease-purchase
agreement pursuant to this section, the board does not obligate this state to
provide any additional monies above the amounts authorized in this subsection.
5. In entering into any lease-purchase
agreement pursuant to this section, the board does not obligate any monies from
the state general fund.
F. For the purposes of the review
required by subsection D, paragraph 1 of this section, the board shall submit
the scope, purpose and estimated cost of each project or acquisition for review
by the joint committee on capital review before taking any action authorized by
subsection D, paragraph 1 of this section.� The joint committee on capital
review shall hear and review the project or acquisition not later than the
committee's second meeting after the board submits the project or acquisition
to the committee for review.� The board may take an action authorized by
subsection D, paragraph 1 of this section relating to a project or acquisition
that the board submitted for review pursuant to this subsection if the
committee fails to hear and review the project or acquisition within the time
period prescribed by this subsection.
E. G. Books
and records of the schools shall be are open
to public inspection, unless otherwise restricted by law.
h. For the purposes of this section:
1. "Acquire" has the same
meaning prescribed in section 15-1681.
2. "Federal agency" has the
same meaning prescribed in section 15-1681.
3. "indirect or third-party
financing" has the same meaning prescribed in section 15-1681,
except that it:
(a) Includes an
agreement between the BOARD and a financial institution.
(b) Does not
include an agreement in which a party issues bonds for a capital project.
4. "Project" has the same
meaning prescribed in section 15-1681, except that it:
(a) Is for the
benefit of the schools, as determined by the board.
(b) Includes
athletic buildings.
(c) Does not
include housing facilities for faculty or staff, stadiums or facilities or
buildings that are leased to a federal agency. END_STATUTE