AZ HB2863

Amends school capital finance law to establish a new funding mechanism for renovating or replacing existing school facilities that pose health or safety threats or are beyond their useful life through the new school facilities fund.

Requires school districts applying for renovation/replacement funding to submit a capital plan documenting facility condition, health and safety concerns, and descriptions of underutilized facilities of the same type within a five-mile radius.

Establishes four qualifications for funding: school district must lack access to adequate underutilized facilities nearby, have no underutilized facilities on the same property, demonstrate repair costs would be at least 50% of renovation/replacement costs, and have enrollment at 75% or more of minimum adequacy standards.

Requires division to procure an assessment determining whether facilities pose health or safety threats, are beyond useful life, and whether repair costs over five years exceed 50% of renovation costs, unless the division can determine ineligibility without an assessment.

Effective date: December 31, 2024.