AZ HB2781

Authorizes school districts to apply for state funding to renovate or replace existing school facilities that pose health or safety threats and are beyond their useful life, subject to board approval and specific qualifications.

Requires school districts applying for renovation or replacement funding to demonstrate the facility lacks access to adequate underutilized facilities within a five-mile radius and that repair costs exceed 50% of renovation costs over a five-year period.

Establishes that renovated or replaced facilities must maintain at least 75% enrollment capacity and meet minimum adequacy standards, with funding limited by the board based on pupil enrollment, geographic factors, and facility conditions.

Adds specialized spaces (classrooms for special education and reading specialists) to the minimum school facility adequacy guidelines that boards must consider when evaluating facilities.

Effective December 31, 2023, amending sections 15-342, 41-5702, 41-5711, 41-5731, and 41-5741 of Arizona Revised Statutes related to school capital finance.