Section R7-2-1002. Applicability

A.      Articles 10 and 11 apply to every expenditure of public mon- ies, including federal assistance monies and grants, by a school district as specified in A.R.S. § 15-213(A) for the procurement of all construction, materials and services when the total pro- curement cost exceeds the aggregate dollar amount specified in A.R.S. § 41-2535(A). If procurement involves the expendi- ture of federal assistance or contract monies, the school district shall  comply  with  federal  law  and  authorized   regulations

which are mandatorily applicable and which are not presently reflected in Articles 10 and 11.

B.       Articles 10 and 11 apply to the disposal of school district materials regardless of value.

C.      Nothing in Articles 10 and 11 shall prevent any governing board from complying with the terms and conditions of any grant, gift, bequest or cooperative agreement.

D.      Articles 10 and 11 do not apply to:

1.        Agreements for providing career and technological edu- cation and vocational education pursuant to A.R.S. § 15- 789;

2.        Contracts between a school district and other govern- ments, including intergovernmental agreements and con- tracts pursuant to A.R.S. § 11-952, except as provided by R7-2-1191 through R7-2-1196;

3.        Purchases for amounts not exceeding the aggregate dollar amount specified in A.R.S. § 41-2535(A). Such procure- ments shall comply with the guidelines prescribed by the Auditor General in the Uniform System of Financial Records pursuant to A.R.S. § 15-271(C);

4.        Contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial or administrative proceeding in which the school district is or may become a party;

5.        Agreements negotiated by legal counsel representing the school district in settlement of litigation or threatened liti- gation;

6.        Expenditures from student activity monies as defined in

A.R.S. § 15-1121, if no district funds are involved;

7.        Expenditures for common school textbooks as defined in

A.R.S. § 15-721(G);

8.        The placement of a pupil in a private school that provides special education services if such placement is prescribed in the pupil’s individualized education program and the private school has been approved by the Department of Education   Division  of  Special  Education  pursuant  to

A.R.S. § 15-765(D);

9.        Purchases of any products, materials and services directly from Arizona Industries for the Blind, certified nonprofit agencies that serve individuals with disabilities as defined in A.R.S. § 41-2636(G), and Arizona Correctional Indus- tries if the delivery and quality of the products, materials or services meet the school district's reasonable require- ments;

10.     The  decision   to  participate   in  programs  pursuant  to

A.R.S. § 15-382. A program authorized by A.R.S. § 15- 382 is not required to engage in competitive bidding for the services necessary to administer the program or for the purchase of insurance or reinsurance;

11.     The purchase of water, gas or electric utilities from a pub- lic service corporation. This exemption expressly does not apply to guaranteed energy cost savings contracts and guaranteed energy production contracts subject to A.R.S.

§ 15-213.01 and A.R.S. § 15-213.03; and

12.     Purchases of professional certifications, professional memberships and conference registrations.

E.       Unless displaced by the particular provisions of Articles 10 and 11, the principles of law and equity, including the Uniform Commercial Code of this state, the common law of contracts as applied in this state and law relative to agency, fraud, mis- representation, duress, coercion, and mistake supplement the provisions of Articles 10 and 11.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4).

Amended effective March 21, 1991 (Supp. 91-1).

Amended effective March 6, 1997 (Supp. 97-1).

Amended effective December 4, 1998 (Supp. 98-4). Amended by final exempt rulemaking at 21 A.A.R. 1491, effective October 28, 2013 (Supp. 15-3). Amended by final exempt rulemaking at 21 A.A.R. 1525, effective July 1, 2015 (Supp. 15-3).