(a)

1. (1) The Division of Public School Academic Facilities and Transportation shall use criteria to evaluate a school district's application for state financial participation in a new construction project, pursuant to Arkansas Code § 6-20-2507, which shall include, without limitation, the following:

   1. (A) How the school district’s facilities master plan and current academic facilities do not address the following:

(i) Student health and safety, including without limitation, critical health and safety needs;

1. (ii) Compliance with current academic facilities standards, including, without limitation, appropriate space utilization of existing academic facilities in the district;

   1. (iii) Conformance with sound educational practices;

      1. (iv) Curriculum improvement and diversification, including, without limitation, the use of instructional technology, distance learning, and access to advanced courses in:

(b) (b) Mathematics;

1. (c) (c) Language arts; and

   1. (d) (d) Social studies;

      1. (v) Multischool, multidistrict, and regional planning to achieve the most effective and efficient instructional delivery system;
      2. (vi) Reasonable travel time and practical means of addressing other demographic considerations; and
      3. (vii) Scheduled and unscheduled maintenance, repair, and renovation as documented in the state-provided computerized maintenance management system;

   2. (B) How the school district's facilities master plan and any new construction project under the facilities master plan address the following:

      1. (i) Student health and safety, including, without limitation, critical health and safety needs;
      2. (ii) Compliance with current academic facilities standards, including, without limitation, appropriate space utilization of existing academic facilities in the district;
      3. (iii) Conformance with sound educational practices;
      4. (iv) Curriculum improvement and diversification, including, without limitation, the use of instructional technology, distance learning, and access to advanced courses in:

(b) (b) Mathematics;

1. (c) (c) Language arts; and

   1. (d) (d) Social studies;

      1. (v) Multischool, multidistrict, and regional planning to achieve the most effective and efficient instructional delivery system;
      2. (vi) Reasonable travel time and practical means of addressing other demographic considerations; and
      3. (vii) Scheduled and unscheduled maintenance, repair, and renovation as documented in the state-provided computerized maintenance management system (CMMS);

   2. (C)

      1. (i) How the new construction project supports the prudent and resourceful expenditure of state funds and improves the school district’s ability to deliver an adequate and equitable education to public school students in the district.
      2. (ii) The division may perform on-site inspections of the school district facilities during the evaluation of project applications;
   3. (D) How the new construction project has been prioritized by the school district; and
   4. (E) The allocation and expenditure of funds in accordance with this subchapter and the Arkansas Public School Academic Facility Program Act, Arkansas Code § 6-21-801 et seq.

2. (2) In evaluating a school district’s application for state financial participation in a new construction project, the division may resolve any internal inconsistency in or conflict among the application components and supporting documentation by giving precedence to the application components in the following order:

   1. (A) The resolution adopted by the board of directors of the school district;
   2. (B) The narrative application contents submitted electronically through the master plan web tool;
   3. (C) Schematic drawings;
   4. (D) Other supporting documents submitted with the application; and
   5. (E) Application consistency and accuracy.

(b)

1. (1) The qualified cost shall be limited to the cost for an alternative project if the division determines that an alternative project meets facility standards and addresses the suitability and warm, safe, and dry needs expressed by the district in its master plan and project application.

2. (2) The alternative project may consist of replacement of the original facility or component to the original configuration of construction at the most current state standard.

   1. (c) If a school district fails to comply with any of the requirements set forth in state law or this part concerning the division evaluation of its application, the division or Commission for Arkansas Academic Facilities and Transportation may deny the application for state financial participation.

      1. (d)
3. (1) The division shall review all projects submitted to determine their suitability for state financial participation, pursuant to the suitability criteria set forth in 6 CAR § 321-102(39).
4. (2) No project that is determined by the division to go beyond suitable will be approved for state financial participation.

(e) Statewide needs list, project ranking, and project funding.

1. (1) The following process will be used to develop the statewide warm, safe, and dry needs list:

   1. (A)

      1. (i) The division shall numerically rank each campus based on campus value.
      2. (ii) The lowest value will be ranked first and the highest value will be ranked last;

   2. (B)

      1. (i) The division will numerically rank campuses based on the facilities condition index.
      2. (ii) The highest value will be ranked first and the lowest value will be ranked last.
      3. (iii) “Facilities condition index” has the same meaning as in the division’s Rules Governing the Facilities Master Plan, 6 CAR pt. 322; and

   3. (C)

      1. (i) The division will rank campuses by campus value ranking weighted fifty percent (50%) and facility condition index ranking weighted fifty percent (50%).
      2. (ii) Once each campus is ranked, the division shall publish a list with the campus with the lowest score being ranked first and the campus with the highest score being ranked last.

2. (2) The following process will be used to develop the statewide space needs list:

   1. (A)

      1. (i) The division will rank districts on five-year projected enrollment growth percentage based on division projections.
      2. (ii) The highest value will be ranked first and the lowest value will be ranked last;

   2. (B)

      1. (i) The division will rank districts on five-year projected student enrollment growth based on division projections.
      2. (ii) The highest value will be ranked first and the lowest value will be ranked last;

   3. (C)

      1. (i) The division will rank districts on school district suitability based on academic gross square feet needed minus academic gross square feet present.
      2. (ii) The highest value will be ranked first and the lowest value will be ranked last;

   4. (D)

      1. (i) The division will rank districts on school district suitability percentage based on suitability divided by academic gross square feet present.
      2. (ii) The highest value will be ranked first and the lowest value will be ranked last; and

   5. (E)

      1. (i) The division will rank districts by:

(b) (b) Five-year projected student enrollment growth ranking weighted twenty-five percent (25%);

1. (c) (c) School district suitability ranking twenty-five percent (25%); and

   1. (d) (d) School district suitability percentage ranking twenty-five percent (25%).

      1. (ii) Once each district is ranked, the division shall publish a list with the district with the lowest score being ranked first and the district with the highest score being ranked last.

2. (3) Ranking of projects.

   1. (A) For the 2023-2025 and subsequent project funding cycles, all approved new construction projects shall be entitled to receive state partnership assistance in the following ranked order in two (2) separate categories:

      1. (i) Warm, safe, and dry projects; and
      2. (ii) Space projects.

   2. (B)

      1. (i) The division will rank all school projects based on the academic facilities wealth index of the school district.
      2. (ii) The district with the lowest academic facilities wealth index shall be ranked first and the district with the highest academic facilities wealth index shall be ranked last.
   3. (C) The division will rank each project according to the statewide facilities needs list, as calculated in subdivisions (e)(1) and (2) of this section.

   4. (D)

      1. (i) The division will rank each project according to the percentage of district expenditures spent on maintenance of academic facilities for the last five (5) fiscal years.
      2. (ii) The district with the highest percentage spent on maintenance shall be ranked first, and the district with the lowest percentage spent on maintenance shall be ranked last.

   5. (E)

      1. (i) The division will rank projects by:

(b) (b) Statewide facility needs list ranking weighted at fifty percent (50%); and

1. (c) (c) Percentage of district expenditures spent on maintenance of academic facilities for the last five (5) fiscal years ranking weighted twenty percent (20%).

   1. (ii) The project with the lowest score will be ranked first, and the project with the highest score will be ranked last.

   2. (F)

      1. (i) The division will ensure that all required district preventive maintenance inspections are completed and documented for the previous fiscal year.
      2. (ii) Supporting documentation shall include completed CMMS work orders and uploaded inspection documents.
      3. (iii) Projects from districts that have not completed and documented all required preventive maintenance inspections shall be moved to the bottom of the project ranking list, in the order the project was ranked under this subdivision (e)(3).

2. (4) Commission funding of projects.

   1. (A) For each of the two (2) years of an Academic Facilities Partnership Program funding cycle there will be two (2) categories of funds from which to fund projects:

      1. (i) One (1) for warm, safe, and dry systems replacement and space replacement projects; and
      2. (ii) One (1) for space projects.

   2. (B) Projects will be funded as follows for each year of a funding cycle:

      1. (i) Fifty percent (50%) will be allocated to each category to fund projects in ranked order on the respective project ranking list;
      2. (ii)

(b) (b) If any funds remain after all warm, safe, and dry projects are funded, and if there are any unfunded space projects remaining, the remaining funds will be transferred to the space category;

1. (iii)

(b) (b) If funds remain after all space projects are funded, and if there are any unfunded warm, safe, and dry projects remaining, the remaining funds will be transferred to the warm, safe, and dry category;

1. (iv) If funds become available during the funding cycle year due to rescinded projects, unfunded projects remaining in the appropriate category will be funded in ranked order; and

   1. (v) Any funds remaining after Year 2 will carry over into the next funding cycle and will not be designated as belonging to one category or the other.

(f)

1. (1) If a school district’s new construction project is approved for funding in the current funding cycle, the district must execute the partnership agreement, which is Appendix B to this part.
2. (2) If the partnership agreement is not executed within the time period set forth in 6 CAR § 321-106(h), unless there is an approved waiver, the state financial participation in part or in whole may be deemed null and void by the commission.

(g)

1. (1) In accordance with Arkansas Code § 6-21-114(d) and the Rules Governing Property Insurance Requirements, 6 CAR pt. 324, every academic facility must be insured and remain insured for ninety percent (90%) of replacement cost to be eligible for state financial participation.
2. (2) If, as of the date of application or at any point thereafter, an academic facility involved in a project is not sufficiently insured as required, as indicated in the district’s current statement of values, the application shall be denied by the division and any state financial participation shall cease.