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REFERENCE TITLE: education authority districts |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2551 |
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Introduced by Representatives Heinz, Chabin: Ableser, Campbell CH, Campbell CL, Farley, Fleming, Pancrazi, Patterson, Waters, Senator Aboud
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AN ACT
amending Title 15, Arizona Revised Statutes, by adding chapter 19; relating to EDUCATION AUTHORITY DISTRICTs.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, Arizona Revised Statutes, is amended by adding chapter 19, to read:
CHAPTER 19
Education AUTHORITY DISTRICT
ARTICLE 1. ORGANIZATION
15-2401. Definitions
In this chapter, unless the context otherwise requires:
1. "Advisory board" means the advisory board of the education authority.
2. "Authority" means an education authority established pursuant to this chapter.
3. "Authority board" means the governing board of the education authority.
4. "Board of directors" means the county board of supervisors serving as the board of directors of the education authority. END_STATUTE
15-2402. Formation of education authority; board of directors; duties
A. An education authority is established in each county. The boundaries of the authority are the boundaries of the county.
B. The county board of supervisors shall serve as the board of directors of the education authority. The supervisors shall not receive compensation or reimbursement of expenses for their services on the board of directors.
C. The board of directors shall:
1. Call an election for the establishment of an education authority in the county as provided by section 15-2403, subsection A.
2. Appoint certain members of the authority board of the education authority as provided by section 15-2403.
3. Approve the authority's budget pursuant to section 15-2431.
D. The education authority is a corporate and political body, separate and independent of this state or the county, and except as otherwise limited, modified or provided by this chapter, has all of the rights, powers and immunities of municipal corporations except to acquire real property by eminent domain. The board of directors and the authority may not levy or otherwise impose any tax or assessment, other than charges for the use of facilities owned or managed by the authority. The qualified electors residing in the authority may levy a tax for the authority's fiscal needs as provided by this chapter, but the board of directors has no independent authority to impose a tax. Subject to that limitation, the authority is considered to be a tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona.
15-2403. Education authority; election; establishment; authority board
A. The board of directors shall call an election of the qualified electors of the county to authorize the establishment of an education authority within the boundaries of the county. The election shall be held on the earliest or second earliest consolidated election date prescribed by section 16-204 occurring at least ninety days after the district is established.
B. The election ballot shall include the following two questions:
1. "Shall the Education authority levy and collect taxes as provided by sections 15-2433 through 15‑2437, Arizona Revised Statutes?".
2. "Shall the Education authority issue grants to County Public School Districts to support the educational goals and objectives of County Schools, to be paid exclusively from authorized tax revenues?".
C. The board of directors shall order the authority's establishment on the approval of both questions by a majority of the qualified electors voting on each issue in the election. If either question is disapproved, the authority shall not be established and further proceedings under this chapter shall be terminated.
D. Members of the authority board must reside in the county and shall be appointed within thirty days after the formation of the district as follows:
1. One member who is appointed, on a rotating basis, by Each School District governing board in that county.
2. One member who is appointed by the board of directors and who is selected from a list of nominees submitted by a statewide labor organization consisting of teachers selected by the board of directors.
3. One member who is appointed by the governing body of an organization of science, technology, engineering and mathematics teachers in this state selected by the board of directors.
4. One member who is appointed by the governing body of a local organization devoted to regional economic opportunities selected by the board of directors.
5. One member who is appointed by a countywide organization devoted to Workforce Development selected by the board of directors.
6. One member who represents a nonprofit organization, who has substantial knowledge and experience regarding public education and who is appointed by the board of directors.
7. If the county contains a university under the jurisdiction of the Arizona board of regents, the president of that university shall appoint one additional member who is employed by the university.
8. If the county contains a community college district, the chancellor of that community college district shall appoint one additional member who is employed by the community college district.
E. The appointing entities prescribed in subsection D of this section shall receive nominations for appointment to the authority board from specified interested parties and shall appoint the members from the nominees. The appointing entities shall make appointments to the authority board to provide broad geographic representation among the members. No more than three members may reside in the same school district or in the unincorporated areas of the county. The initial members shall be appointed to terms of two, three and four years, chosen by lot. All subsequent members shall be appointed to terms of four years, except for interim appointments to fill unexpired terms. A member of the authority board may be removed on a two‑thirds vote of all members. The removal is effective immediately.
F. A member of the authority board shall not hold any elected office while serving on the board. An authority board member who takes elective office or files nominating petitions for elective office is considered to have resigned from the authority board effective immediately.
G. The appointment of the authority board member pursuant to subsection D, paragraph 1 of this section shall be determined as follows:
1. The first appointment shall be made by the governing board of the largest school district in the county.
2. The second appointment shall be made by the governing board of the second largest school district in the county.
3. Each subsequent appointment shall be made by the governing boards of the next largest school district in the county in order of population, until governing boards of all school districts in the county have made an appointment.
4. Subsequent appointments shall repeat the sequence of appointments provided in paragraphs 1, 2 and 3 of this subsection.
H. For the purposes of subsection G of this section, the population of school districts in the county shall be based on the population at the time of each appointment made by the second largest school district in the county.
I. If there is a vacancy of the authority board member appointed pursuant to subsection D, paragraph 1 of this subsection, the governing board that appointed the vacating member shall appoint a replacement for the remainder of the unexpired term.
15-2404. Authority operating plan; authority board powers and duties; advisory board
A. The authority board shall submit a plan for the operation of the education authority, including proposals for the distribution of grants to school districts in the authority. The operating plan shall:
1. Be developed and submitted to the board of directors within ninety days after the appointment of the authority board.
2. Be finalized following public hearings and meetings held throughout the authority.
3. Specify the general purposes for which the monies of the authority, including tax revenues pursuant to sections 15-2433 through 15‑2437, will be spent during the first twenty years of the authority's operations.
4. Prohibit the Authority from spending more than ten per cent of collected revenues on administrative and operational costs.
B. The authority board shall:
1. Promote education achievement in the district by approving grants to provide assistance to school districts and nonprofit corporations for the development and operations of educational activities. The authority board shall award grants based on the per student population of each school district, which must use grant monies to support science, technology, engineering, arts and mathematics programs. Remaining revenues may be used to support science, technology, math and engineering programs in each school district. School districts may not use more than five per cent of grants monies for administrative costs.
2. Adopt an annual budget as provided by section 15-2431 and submit the budget to the board of directors for approval.
3. Appoint from among its members a secretary and such other officers as may be necessary to conduct its business.
4. Employ an executive director and prescribe the terms and conditions of employment.
5. Keep and maintain a complete and accurate record of all of its proceedings. The board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1.
6. Provide for the use, maintenance and operation of the properties and interests owned or managed by the authority.
C. The authority board may:
1. Enter into contracts, including intergovernmental agreements under title 11, chapter 7, article 3, as necessary to carry out the purposes and requirements of this chapter.
2. Adopt administrative rules as necessary to administer and operate the authority and any property under its jurisdiction.
3. Acquire by any lawful means, other than eminent domain, and operate, maintain, encumber and dispose of real and personal property and interests in property.
4. Retain legal counsel and other consultants as necessary to carry out the authority's purposes.
D. The authority board shall appoint an advisory board consisting of members representing a broad spectrum of interested parties to advise the authority in its activities and to fully perform and accomplish its purposes.
15-2405. Executive director; duties
A. The executive director of the authority is responsible to the authority board for managing, administering and supervising the authority's activities.
B. The executive director shall negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the authority or to carry out or accomplish the purposes of this chapter, all of which are subject to approval by the authority board.
C. The executive director shall:
1. Employ a fiscal agent to deposit, hold, invest and disburse the authority's monies.
2. Employ administrative and clerical employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. Employees of the authority are considered to be public employees for purposes of title 38.
3. Recommend the employment of consultants by the board, including outside counsel and a professional facility management company.
4. Direct the activities of outside consultants.
15-2406. Local financial participation
A. The authority shall spend no more than ten per cent of its general revenues for administration of the authority, and shall do all things necessary or convenient to accomplish this purpose.
B. For the purposes of subsection A, the amount spent shall be measured at the end of every tenth fiscal year following the authority's establishment for the entire period since its formation, except that the requirement shall not interfere with, delay or impede the payment of any amounts due and payable on any outstanding obligation of the authority.
15-2407. Gift ban; exemptions
A. A principal or lobbyist or any other person acting on behalf of a principal or lobbyist may not give a gift to any member or employee of the authority board, and an authority board member or employee may not accept a gift from a principal or lobbyist.
B. For the purposes of this section, a gift does not include any of the following:
1. Salary, compensation or employer-reimbursed expenses lawfully paid to a board member or employee.
2. A family gift.
3. An award or prize that is given to competitors in a contest or event that is open to the public, including a random drawing.
4. Any discount or other benefit that is offered to a board member or employee on the same conditions as to the public, to a class consisting of all board members and employees or to a group or class in which membership is unrelated to being a board member or employee.
5. An educational event or speaking engagement.
6. Expenses that are related to a special event or function to which all members of the board are invited and that are properly reported.
7. Flowers.
8. Food and beverage.
9. Informational materials, including a book, calendar, pamphlet, periodical, report or video.
10. An item that is not used and that is returned to the donor or delivered to a charitable organization within fifteen days after receipt and that is not claimed as a charitable contribution for state or federal income tax purposes.
11. An item that is given to a board member or employee if the board member or employee gives an item of approximately the same value to the giver of the item at the same time the item is given or on a similar occasion as the one that prompted the original item to be given.
12. An item of a personal nature that was customarily received by an individual from the donor before the individual became a board member or employee.
13. An item that is given to the general public at an event.
14. An item of nominal value such as a greeting card, baseball cap, t‑shirt, mug or pen.
15. Nonrecreational travel or lodging, or both.
16. Personal hospitality.
17. A plaque, award or other form of recognition to a board member or employee to signify the honorary recognition of a service or other notable accomplishment.
18. Professional or consulting services that are rendered on matters directly related to holding a position on the board or being an employee of the board and that are not rendered to obtain a benefit for any registered principal, public body, lobbyist, designated public lobbyist or authorized public lobbyist or the clients of a principal or lobbyist.
15-2408. Conflicts of interest
A. Authority board members are subject to title 38, chapter 3, article 8, relating to conflicts of interest, including the penalties prescribed by section 38-510.
B. A member of the authority board or the board of directors shall not have any direct or indirect financial interest in any:
1. Contract entered into by the district.
2. Private corporation or other entity with which the district contracts.
15-2409. Performance audits; public report
A. Beginning in 2012 and at least every fifth year thereafter, the auditor general shall conduct a performance audit, as defined in section 41‑1278, of the authority.
B. On or before June 30 of the respective year, the auditor general shall issue a public report of the performance audit, including findings and specific recommendations for statutory and administrative changes to improve the operation of the authority. The auditor general shall submit copies of the report to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state.
15-2410. Quarterly report; appearance before joint legislative budget committee
A. Within six weeks after the end of each calendar quarter, the authority board shall prepare a report signed by the executive director and transmit the report to the governor, the legislature, as provided by section 41-1178, and the joint legislative budget committee. The report shall include a progress report of the authority's activities during the previous quarter.
B. At the request of the chairperson of the joint legislative budget committee, the executive director shall appear before the joint legislative budget committee to report on the authority's activities and financial performance during the previous year.
ARTICLE 2. FINANCIAL PROVISIONS
15-2431. Annual budget
A. On or before May 31 of each year, the authority board shall hold a public hearing to adopt a budget for the following fiscal year that includes:
1. Receipts during the preceding fiscal year.
2. Expenditures during the preceding fiscal year.
3. Estimates of amounts necessary for expenses during the following fiscal year, including amounts proposed for:
(a) Planning costs.
(b) The authority's administrative costs.
4. Anticipated revenue to the authority from each source in the following fiscal year.
5. A complete asset and liability statement.
6. A statement of profit or loss.
7. Cash on hand as of the date the budget is adopted and the anticipated balance at the end of the current fiscal year.
8. An itemized statement of commitments, reserves and anticipated obligations for the following fiscal year.
B. The authority board:
1. Shall transmit a copy of the budget to the board of directors.
2. May amend the budget on a finding of good cause.
15-2432. General fund; investments
A. The authority shall maintain a general fund and may establish accounts and subaccounts within the general fund as necessary and convenient. The authority shall deposit all revenues and monies it receives initially in the general fund.
B. The authority may invest any unexpended monies in the fund as provided in title 35, chapter 2. Interest and other income from investments of monies in any account shall be credited to that account except as otherwise provided by law.
C. The authority's investments must mature when the fund assets will be required for the purposes of this chapter. If the liquid assets in the fund or any account or subaccount become insufficient to meet the statutory obligations, the authority board shall direct its fiscal agent to liquidate sufficient securities to meet all of the current obligations and immediately notify the board of directors and the auditor general of the insufficiency. The auditor general shall investigate and audit the circumstances surrounding the depletion of the fund, account or subaccount and report the findings to the authority board and the board of directors.
15-2433. Excise tax on car rentals; exceptions
A. The qualified electors, by majority vote at an election held pursuant to section 15-2403, may levy and, if levied, the department of revenue shall collect an excise tax on the gross proceeds of sales or gross income from the business of car rental in the authority, beginning on the first day of the first month beginning ninety days after the election. The tax shall be in effect for three hundred sixty months. The tax imposed pursuant to this section is in addition to any other taxes levied by this state or any other political subdivision of this state.
B. the rate of the tax is 0.35 per cent of the gross proceeds or gross income from the business.
C. The tax applies to the business of leasing or renting, for less than one year, motor vehicles for hire without a driver that are designed to operate on the streets and highways of this state and that are primarily intended to carry not more than fourteen passengers, regardless of whether the vehicle is registered or licensed in this state.
D. The tax does not apply to the lease or rental of:
1. A motor vehicle as a temporary replacement vehicle that is loaned at no charge by a repair facility or dealer for use while the vehicle that it is replacing is not in service because of breakdown, repair, service, damage or loss.
2. A motor vehicle to an automobile dealership, a repair facility, an insurance company or any other PERSON that provides that vehicle at no charge to a person whose own motor vehicle is being repaired, adjusted or serviced.
E. The tax is not taxable under section 42-5071.
F. The department of revenue shall require a report of the number of lease or rental transactions and shall transmit that number to the state treasurer.
15-2434. Excise tax on hotels and motels
A. The qualified electors, by majority vote at an election held pursuant to section 15-2403, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42-5070 in the authority. A tax under this section is in addition to the tax imposed by title 42, chapter 5 and any tax imposed by any other political subdivision in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months.
C. the rate of the tax is 0.45 per cent of the gross proceeds or gross income from the business.
15-2435. Tax on restaurants and bars
A. The qualified electors, by majority vote at an election held pursuant to section 15-2403, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42-5074 in the authority. A tax under this section is in addition to the tax imposed by title 42, chapter 5 and any tax imposed by any other political subdivision in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months.
C. the rate of the tax is 0.25 per cent of the tax base prescribed by section 42-5074.
15-2436. Tax on amusements and sporting events
A. The qualified electors, by majority vote at an election held pursuant to section 15-2403, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from persons taxed under title 42, chapter 5 and classified under section 42‑5073 in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months.
C. the rate of the tax is 0.375 per cent of the tax base prescribed by section 42-5073.
15-2437. Tax on retail
A. The qualified electors, by majority vote at an election held pursuant to section 15-2403, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42-5061 in the authority. A tax under this section is in addition to the tax imposed by title 42, chapter 5 and any tax imposed by any other political subdivision in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months.
C. the rate of the tax is 0.15 per cent of the tax base prescribed by section 42-5061.
15-2438. Administration of tax
A. Unless the context otherwise requires, section 42-6102 governs the administration of the taxes imposed under this article.
B. Each month the state treasurer shall transmit the net revenues collected pursuant to this article to the authority for deposit in the authority's general fund.
15-2439. Annual audit
A. The board of directors shall cause an independent certified public accountant to conduct an annual audit of each of the authority's funds, accounts and subaccounts within one hundred twenty days after the end of the fiscal year.
B. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes no further action within thirty days after the audit is filed, the audit is considered to be sufficient.
C. The authority board shall pay negotiated and approved fees and costs of the certified public accountant and auditor general under this section from the authority's general fund.
15-2440. Lien of pledge
A. Any pledge made under this article is valid and binding from the time when the pledge is made.
B. Any lien of any pledge is valid and binding against all parties who have claims of any kind against the authority, regardless of whether the parties have notice of the lien. The official resolution or any instrument by which this pledge is created, when adopted by the authority board, is notice to all concerned of the creation of the pledge, and those instruments need not be recorded in any other place to perfect the pledge.
15-2441. Use of surplus monies
If a balance remains in any account after all related costs have been paid:
1. The authority board shall credit the balance to repay any other outstanding indebtedness of the authority.
2. If the authority has no outstanding indebtedness, the authority board shall credit the remaining balance to the authority's general fund.
Sec. 2. Election
A. Except as otherwise provided by this section, the election held under section 15-2403, Arizona Revised Statutes, as added by this act, shall be conducted as nearly as practicable in the manner prescribed for general elections in title 16, Arizona Revised Statutes.
B. The county election officer shall account for costs specifically incurred with respect to the ballot issue under this section. The education authority shall reimburse the county for the costs listed in this subsection specifically incurred with respect to the ballot issue under this section from the authority's general fund on submission of the bill by the county election officer. If the electors disapprove the formation of the education authority, the election costs may be reimbursed from private sources. Costs specifically incurred with respect to the ballot issue under this section include the following:
1. Costs of mailing, publishing, posting and printing ballots, publicity pamphlets, notices, election materials and other matters concerning the election.
2. Legal and other consulting fees and costs relating to the election.
3. Telecommunications costs.
4. Compensation of the election board, county election officers and employees and other labor costs incurred to administer, hold, canvass and announce the results of the election.
5. Any other costs attributable to the election.
C. This act does not constitute a submission of any provision of law to the people for approval under the power of the referendum.