House Bill 5347 (sHB5347 File No. 536) is a comprehensive piece of legislation that authorizes state grant commitments for school building projects and revises statutes related to such projects. The bill approves $470.2 million in state grants for 11 new school construction projects and reauthorizes three projects with an increased state commitment of $73.9 million due to significant changes. It amends various aspects of the school construction process, including increasing the reimbursement rate bonus for early childhood projects to 15 percentage points, removing certain requirements for endowed academies to receive grants, and prohibiting construction managers from receiving additional compensation for change orders. The bill also mandates that school building committees include the school board chair or a designee and requires school districts to receive Smart Start grants upon approval for expanding or establishing preschool programs. The effective date is July 1, 2024, except for the grant commitments for priority list projects, which are effective upon passage.

The bill also introduces changes to the audit process, shortening the timeline for the Department of Administrative Services (DAS) to complete an audit and requiring a limited scope audit if not completed within two years. It includes new requirements for school construction, such as the inclusion of all-gender bathrooms in new projects and the expansion of eligibility for indoor air quality grants to include endowed academies and state charter schools. The bill increases the percentage of a grant that DAS must withhold pending audit completion from 5% to 11% and modifies deadlines for submitting final grant applications and notices of project completion. Additionally, the bill allows for the reconsideration of previously rejected grant applications for fiscal years 2025 and 2026 without the need for a new application. The bill has been favorably received by the Education Committee and the Finance, Revenue and Bonding Committee.

Statutes affected:
Raised Bill: 10-283a, 10-287i, 10-292v
ED Joint Favorable Substitute Change of Reference: 10-283a, 10-286e, 10-287i, 10-292v
FIN Joint Favorable Substitute: 10-283a, 10-286e, 10-287i, 10-292v
File No. 536: 10-283a, 10-286e, 10-287i, 10-292v