Bill Text: AZ SB1322 | 2016 | Fifty-second Legislature 2nd Regular | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Community colleges; expenditure limitation

Spectrum: Bipartisan Bill

Status: (Passed) 2016-03-24 - Chapter 58 [SB1322 Detail]

Download: Arizona-2016-SB1322-Engrossed.html

 

 

 

Senate Engrossed

 

 

 

State of Arizona

Senate

Fifty-second Legislature

Second Regular Session

2016

 

 

SENATE BILL 1322

 

 

 

AN ACT

 

amending sections 15‑1444, 15‑1445, 15‑1466.01 and 15‑1471, Arizona Revised Statutes; repealing section 15-1474, Arizona Revised Statutes; repealing laws 2009, chapter 59, section 3; repealing laws 2010, chapter 117, section 19; relating to community college district finance.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 15-1444, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1444.  General powers and duties of district governing boards

A.  Except as otherwise provided, the district board shall:

1.  Maintain each community college for a period of not less than eight months in each year and, if the funds of the district are sufficient, maintain each community college for a longer period.

2.  Adopt policies in a public forum to offer programs that meet the educational needs of the population served by the community college.

3.  Enforce the courses of study prescribed by the district board.

4.  Visit each community college under its jurisdiction and examine carefully into its management, conditions and needs.

5.  Exclude from each community college all books, publications or papers of a sectarian, partisan or denominational character intended for use as textbooks.

6.  Appoint and employ a chancellor or chancellors, vice‑chancellors, a president or presidents, vice‑presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees it deems necessary. The district board may enter into employment contracts with chancellors, vice‑chancellors and presidents for a duration of more than one year but not more than five years.

7.  Determine the salaries of persons it appoints and employs.

8.  Remove any officer or employee if in its judgment the interests of education in this state require the removal.

9.  Award degrees, certificates and diplomas on the completion of courses and curriculum curricula as it deems appropriate.

10.  Appoint or employ, if it deems necessary, police officers who shall have the authority and power of peace officers.  The police officers who have received a certificate from the Arizona peace officer standards and training board are eligible for membership in and benefits under either title 38, chapter 5, article 2 or the public safety personnel retirement system under title 38, chapter 5, article 4.

11.  Determine the location within the district of a community college and purchase, receive, hold, make and take leases of, sell and convey real or personal property for the benefit of the community colleges under its jurisdiction.

12.  Obtain insurance or be self‑insured, or a combination of insurance and self‑insurance, against loss, to the extent it is determined necessary on community college buildings of the district.  The local district shall have an insurable interest in the buildings.

B.  The district board may:

1.  Administer trusts declared or created for the district and receive by gift or devise and hold in trust or otherwise property wheresoever located, and if not otherwise provided, dispose of the property for the benefit of the district.

2.  Lease real property, as lessor or as lessee.  If a district is the lessee, the lease may contain an option to purchase the property.  The district board may adopt policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to lease property under this paragraph.  Any delegation by the district board pursuant to this paragraph may be rescinded in whole or in part at any time by the district board.

3.  Sue and be sued.

4.  Contract.  The district board may adopt such policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to contract under this paragraph.  Any delegation of authority under this paragraph may be rescinded by the district board at any time in whole or in part.

5.  Construct, remodel and repair buildings.

6.  In conjunction with other districts, establish policies for procurement of goods and services.

7.  Provide a plan or plans for employee benefits, which may include optional retirement programs pursuant to section 15‑1451, subsection A, which allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.

8.  Accept grants or donations of monies from the United States, or from any of its agencies, departments or officers, from this state, political subdivisions of this state, from tribal governments, school districts, special taxing districts or from persons, corporations, foundations or associations.  A district board shall deposit the monies into a specific fund or account and a district board shall administer the monies in accordance with the purpose of the grant or donation with specific policies or restrictions as described or stipulated in the grant or donation.  In the case of personal property granted or donated to or for the benefit of a community college district, a district board shall immediately transfer possession and ownership of the property to the designated district.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

9.  Enter into intergovernmental agreements or contracts pursuant to section 11‑952.01 for participation in programs offered by public agency pools or separately contract with a trustee or board of trustees that provides a common self‑insurance program with pooled funds and risks pursuant to section 15‑382, subsection B, paragraph 2.  The district board is not required to engage in competitive procurement in order to make the decision to participate in these programs.

10.  Name a building or a group of buildings that is located on a community college campus on behalf of a person or entity that has made a significant contribution of monies or other property to the community college or the community college district.

11.  Enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit-sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through community college district research.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

12.  Enter into an intergovernmental agreement pursuant to section 15‑1747 to participate in a reciprocity agreement subject to the terms of the reciprocity agreement.

13.  Engage in entrepreneurial and commercial activities.  Monies received pursuant to this paragraph not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

14.  Collect auxiliary fees, including cafeteria fees, food service fees, bookstore fees and dormitory fees.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

15.  Provide goods and services pursuant to a contract with a political subdivision of this state or with a tribal Government.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

C.  If a district acquires real or personal property, whether by purchase, exchange, condemnation, gift or otherwise, the district shall pay to the county treasurer any taxes on the property that were unpaid as of the date of acquisition, including penalties and interest.  The lien for unpaid delinquent taxes, penalties and interest on property acquired by the district:

1.  Is not abated, extinguished, discharged or merged in the title to the property.

2.  Is enforceable in the same manner as other delinquent tax liens.

D.  In a district whose boundaries encompass a vehicle emissions control area as defined in section 49‑541, the district board shall require all out‑of‑county and out‑of‑state students to sign an affidavit at the time of course registration that the student's vehicle meets the requirements of section 49‑542.  The district board on property under its jurisdiction within a vehicle emissions control area shall prohibit the parking of those vehicles that fail to comply with section 49‑542.

E.  A community college district and a joint technical education district governing board may enter into agreements for the provision of administrative, operational and educational services and facilities.

F.  Each district may establish a program for the exchange of students between the community colleges under its jurisdiction and colleges and universities located in Sonora, Mexico.  The program may provide for in‑state tuition for Sonora students at the community colleges under the jurisdiction of the district in exchange for similar tuition provisions for Arizona students enrolled or seeking enrollment in Sonora colleges and universities. The community colleges may work in conjunction with the Arizona‑Mexico commission in the governor's office to coordinate recruitment and admissions activities to provide for in‑state tuition for up to fifty Sonora students at the community colleges under the jurisdiction of the district in exchange for similar tuition provisions for up to fifty total Arizona students enrolled or seeking enrollment in Sonora colleges and universities.

G.  Each district shall facilitate transfer articulation coordination pursuant to section 15‑1824. END_STATUTE

Sec. 2.  Section 15-1445, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1445.  Administrative powers and duties of district governing boards

A district board shall:

1.  Adopt policies for the government of the community colleges under its jurisdiction.

2.  In conjunction with other district boards, set standards for the establishment, development, administration, operation and accreditation of community colleges in the district.

3.  Fix tuitions and graduate the tuitions and fees between institutions and between residents, nonresidents and students from foreign countries.  The district board may waive tuitions and fees and graduate tuitions and waivers for an employee or the spouse or dependent child of an employee of the district, or for a nonresident student enrolled in the district if the district board determines the waiver is in the best interest of this state and the student.

4.  In conjunction with other district boards, submit to the economic estimates commission before January 10 of each year the estimated number of full‑time equivalent students for the district as prescribed in section 15‑1466.01.

5.  Establish curriculums curricula and designate courses that in its judgment will best serve the interests of this state.

6.  Determine academic classes that qualify as open entry, open exit classes and prescribe policies for the operation of open entry, open exit classes.

7.  In conjunction with other district boards and the state board of education, review and adopt, within the scope of the statutory definitions of vocational and technological technical education, program and staff standards with modifications as necessary for courses taught in community colleges.  The district board shall base the standards on vocational and technological technical competence.

8.  In conjunction with other district boards, establish qualifications of the instructional staff that, at a minimum, shall be equal to those required to meet accreditation guidelines and establish standards of vocational and technological technical competence required to instruct in occupational as well as academic subjects.

9.  In conjunction with other district boards, prescribe guidelines providing for the transferability between community college district vocational and technological technical education programs and in conjunction with the state board of education prescribe guidelines for the interrelationship of secondary programs and postsecondary programs.

10.  In conjunction with other district boards, prescribe the manner in which the self‑evaluation of vocational and technological technical education programs is conducted as provided in section 15‑1452.

11.  If requested by the state board of education, assist in the preparation, publication and distribution of an annual state plan and a comprehensive five year five-year state plan.

12.  In conjunction with other district boards and the state board of education, develop a process to determine program funding priorities for state aid purposes.  Each district board shall submit state aid recommendations to the legislature.  The recommendations shall be based on the process and on existing cost studies of vocational and technological technical education in this state.

13.  In conjunction with other district boards, prescribe qualifications for admission to community colleges for honorably discharged veterans who served on active duty in the armed forces for a minimum of one year and who were previously enrolled at a community college or university in this state.  For the purpose of determining the qualifications, the district board may not consider prior failing grades received by the veteran at a community college or university in this state.

14.  Require the publisher of each literary and nonliterary textbook used in the community colleges of the district to furnish computer software in a standardized format, when software becomes available for nonliterary textbooks, to the district board from which braille versions of the textbook may be produced.

15.  Identify students simultaneously enrolled in a course for both high school and college credit by using the same student level data element required by section 15‑1042, subsection A.  The auditor general shall have access to this information when certifying the full‑time equivalent student enrollment pursuant to section 15‑1466.01, subsection A, paragraph 4.

16.  Beginning July 1, 2007, purchase Acquire United States flags that are manufactured in the United States and that are at least two feet by three feet and hardware to appropriately display the United States flag and purchase flags, acquire a legible copy of the Constitution of the United States and the Bill of Rights that is manufactured in the United States, and display the flags in each classroom in accordance with title 4 of the United States Code and display a legible copy of the Constitution of the United States and the Bill of Rights adjacent to the flag. END_STATUTE

Sec. 3.  Section 15-1466.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1466.01.  Calculation of full‑time equivalent student enrollment; report

A.  In determining state aid under sections 15‑1464 and 15‑1466, the number of full‑time equivalent students shall be calculated in the following manner:

1.  For the basic actual full‑time equivalent student enrollment, add the number of full‑time equivalent students enrolled as of forty‑five days after classes begin in the fall semester to the number of full‑time equivalent students enrolled as of forty‑five days after classes begin in the spring semester, not including additional short‑term classes, and divide the sum by two.

2.  For the additional short‑term and open entry, open exit full‑time equivalent student enrollments:

(a)  Determine the total number of credit units for students enrolled in additional short‑term and open entry, open exit classes for the fiscal year.

(b)  Determine the total number of credit units for students who have completed the additional short‑term and open entry, open exit classes for the fiscal year.  Any student who has not completed the class by June 30 of each fiscal year shall not be eligible to be counted for state aid purposes until the following year.

(c)  Add the amounts in subdivisions (a) and (b) of this paragraph.

(d)  Divide the amount determined in subdivision (c) of this paragraph by two.

(e)  Divide the quotient obtained in subdivision (d) of this paragraph by thirty.

(f)  The result in subdivision (e) of this paragraph is the additional short‑term and open entry, open exit full‑time equivalent student enrollments for the fiscal year.

3.  For the skill center and adult basic education courses full‑time equivalent student enrollment, divide by six hundred forty the total class attended clock hours of persons who complete vocational training.  Any student who does not complete vocational training programs by June 30 of each fiscal year shall not be eligible to be counted for state aid purposes until the following year.

4.  The total of basic actual, additional short‑term and open entry, open exit and skill center full‑time equivalent student enrollment shall be the basis of providing state aid.  Beginning with the audit for the year ending June 30, 2003, the auditor general shall audit separately any full‑time equivalent student enrollment where a student is enrolled in a course for both high school and college credit simultaneously, except for credit received at a private college or a college owned, operated or chartered by an Indian tribe, taking into consideration any relevant law, regulation or rule.  The full‑time equivalent student enrollment reported by each district for all basic actual, additional short‑term and open entry, open exit classes and skill center and adult basic education courses shall be audited annually by the auditor general.  The auditor general shall report the results of the audit to the staffs of the joint legislative budget committee and the governor's office of strategic planning and budgeting by October 15 of each year.

5.  For a student who takes a course for which credit is awarded by both a community college and a high school, in which the instructor is an employee of the high school and in which the class is being taught on the high school campus during the normal high school operating hours, the amount of state aid that the community college would otherwise receive for that student shall be reduced by fifty per cent percent.

B.  FOR THE PURPOSES OF CALCULATING THE DISTRICT EXPENDITURE LIMITATION PRESCRIBED IN ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA, AND PURSUANT TO SECTION 41-563, THE NUMBER OF FULL-TIME EQUIVALENT STUDENTS SHALL BE CALCULATED IN THE FOLLOWING MANNER:

1.  DETERMINE THE TOTAL OF BASIC ACTUAL, ADDITIONAL SHORT-TERM AND OPEN ENTRY, OPEN EXIT AND SKILL CENTER FULL-TIME EQUIVALENT STUDENTS AS PRESCRIBED IN SUBSECTION A OF THIS SECTION.

2.  DETERMINE THE NUMBER OF FULL-TIME EQUIVALENT STUDENTS INCLUDED IN PARAGRAPH 1 of this subsection who WERE ENROLLED IN CAREER AND TECHNICAL EDUCATION COURSES THAT HAVE BEEN APPROVED BY THE DEPARTMENT OF EDUCATION IN ACCORDANCE WITH THE CARL D. PERKINS CAREER and TECHNICAL EDUCATION IMPROVEMENT ACT OF 2006.

3.  MULTIPLY THE AMOUNT DETERMINED IN PARAGRAPH 2 of this subsection BY 0.3.

4.  ADD THE AMOUNTS IN PARAGRAPHS 1 AND 3 of this subsection.  THIS sum IS THE FULL-TIME EQUIVALENT STUDENT ENROLLMENT FOR THE PURPOSE OF THE EXPENDITURE LIMITATION.

C.  THE FULL-TIME EQUIVALENT STUDENT ENROLLMENT REPORTED BY EACH DISTRICT FOR ALL BASIC ACTUAL, ADDITIONAL SHORT-TERM AND OPEN ENTRY, OPEN EXIT CLASSES AND SKILL CENTER AND ADULT BASIC EDUCATION COURSES PURSUANT TO SUBSECTION A of this section SHALL BE AUDITED ANNUALLY BY THE AUDITOR GENERAL.  THE AUDITOR GENERAL SHALL AUDIT SEPARATELY ANY FULL-TIME EQUIVALENT STUDENT ENROLLMENT in which A STUDENT IS ENROLLED IN A COURSE FOR BOTH HIGH SCHOOL AND COLLEGE CREDIT SIMULTANEOUSLY, EXCEPT FOR CREDIT RECEIVED AT A PRIVATE COLLEGE OR A COLLEGE that is OWNED, OPERATED OR CHARTERED BY AN INDIAN TRIBE, TAKING INTO CONSIDERATION ANY RELEVANT LAW, REGULATION OR RULE. BEGINNING WITH THE AUDIT FOR THE YEAR ENDING JUNE 30, 2016, THE AUDITOR GENERAL SHALL AUDIT SEPARATELY THE CALCULATION OF FULL-TIME EQUIVALENT STUDENT ENROLLMENT IN SUBSECTION B of this section FOR THE PURPOSE OF THE EXPENDITURE LIMITATION FOR USE PURSUANT TO SECTION 41-563.  THE AUDITOR GENERAL SHALL REPORT THE RESULTS OF THE AUDIT TO THE STAFFS OF THE JOINT LEGISLATIVE BUDGET COMMITTEE, THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING AND THE ECONOMIC ESTIMATES COMMISSION on or before OCTOBER 15 OF EACH YEAR.

D.  PURSUANT TO SECTION 15-1445, PARAGRAPH 4, A COMMUNITY COLLEGE DISTRICT MAY SUBMIT TO THE ECONOMIC ESTIMATES COMMISSION ONE OF THE FOLLOWING ESTIMATES OF FULL-TIME EQUIVALENT STUDENT ENROLLMENT:

1.  THE MOST RECENT AUDITED FULL-TIME EQUIVALENT STUDENT ENROLLMENT COUNT CALCULATED PURSUANT TO SUBSECTION B OF THIS SECTION.

2.  THE AVERAGE OF THE FIVE MOST RECENT AUDITED FULL-TIME EQUIVALENT STUDENT ENROLLMENT COUNTS CALCULATED PURSUANT TO SUBSECTION B OF THIS SECTION.

3.  A FULL-TIME EQUIVALENT STUDENT ENROLLMENT COUNT THAT EXCEEDS THE MOST RECENT AUDITED FULL-TIME EQUIVALENT STUDENT ENROLLMENT COUNT CALCULATED PURSUANT TO SUBSECTION B OF THIS SECTION BY UP TO FIVE PERCENT IF THE ACTUAL FULL-TIME EQUIVALENT STUDENT ENROLLMENT COUNT AS OF FORTY-FIVE DAYS AFTER CLASSES BEGIN IN THE CURRENT FALL SEMESTER EXCEEDS THE ACTUAL FULL-TIME EQUIVALENT STUDENT ENROLLMENT COUNT AS OF FORTY-FIVE DAYS AFTER CLASSES BEGaN IN THE FALL SEMESTER OF THE PREVIOUS YEAR.

Sec. 4.  Section 15-1471, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1471.  Expenditure limitations; overrides

A.  A district board, on the approval of a majority of the qualified electors in the district voting at a regularly scheduled election on the first Tuesday after the first Monday in November, may authorize expenditures in excess of the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona.  The excess expenditures authorized shall be a specified percentage of the expenditure limitation.  The impact of the authorization shall appear on the ballot and in publicity pamphlets in the same manner as prescribed in section 41‑563.03.

B.  In the resolution requesting the voters to approve expenditures in excess of the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, the district board shall state the number of years in which the authority to expend in excess of the limitation otherwise prescribed is to be in effect.  The district board shall not request authority from the voters for a period of less than two years nor more than seven years.

C.  Any authorization of expenditures made pursuant to this section shall be used in determining a modified expenditure limitation which that is equal to the expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, increased by the specified percentage, beginning with the fiscal year immediately following the approval of the qualified electors of the district.  The district board shall not authorize expenditures in excess of the modified expenditure limitation in subsequent fiscal years unless subsequent approval for additional excess expenditures is received as provided in subsection A of this section.

D.  A DISTRICT BOARD, BY AN AFFIRMATIVE VOTE OF TWO-THIRDS OF THE MEMBERS OF THE BOARD, MAY REFER TO THE VOTERS IN THE DISTRICT A PERMANENT CHANGE IN THE BASE LIMIT USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION PRESCRIBED PURSUANT TO ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA.  A PERMANENT CHANGE IN THE BASE LIMIT MAY BE AUTHORIZED ON THE APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS IN THE DISTRICT VOTING AT A REGULARLY SCHEDULED ELECTION ON THE FIRST TUESDAY AFTER THE FIRST MONDAY IN NOVEMBER.  THE IMPACT OF THE AUTHORIZATION SHALL APPEAR ON THE BALLOT AND IN PUBLICITY PAMPHLETS IN THE SAME MANNER AS PRESCRIBED IN SECTION 41-563.03.

E.  IN THE RESOLUTION REQUESTING THE VOTERS TO APPROVE A PERMANENT CHANGE IN THE BASE LIMIT USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION PRESCRIBED PURSUANT TO ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA, THE DISTRICT BOARD SHALL STATE ALL OF THE FOLLOWING:

1.  THE CURRENT BASE LIMIT USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION.

2.  THE PROPOSED BASE LIMIT TO BE USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION.

3.  THE INCREASE IN EXPENDITURE LIMITATION CAPACITY GENERATED BY A CHANGE IN THE BASE LIMIT FOR THE MOST RECENT CALCULATED EXPENDITURE LIMITATION.

4.  A RATIONALE FOR THE REQUEST TO AUTHORIZE A PERMANENT CHANGE IN THE BASE LIMIT USED IN THE CALCULATION OF THE EXPENDITURE LIMITATION.

F.  ANY AUTHORIZATION OF A PERMANENT CHANGE IN THE BASE LIMIT PURSUANT TO SUBSECTION D OF THIS SECTION SHALL BE USED IN DETERMINING An EXPENDITURE LIMITATION PRESCRIBED PURSUANT TO ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA, BEGINNING WITH THE FISCAL YEAR IMMEDIATELY FOLLOWING THE APPROVAL OF THE PERMANENT CHANGE BY THE QUALIFIED ELECTORS OF THE DISTRICT. END_STATUTE

Sec. 5.  Repeal

Section 15-1474, Arizona Revised Statutes, is repealed.

Sec. 6.  Repeal

Laws 2009, chapter 59, section 3 is repealed.

Sec. 7.  Repeal

Laws 2010, chapter 117, section 19 is repealed.

Sec. 8.  Community college district; full-time equivalent submissions; repeal

A.  Notwithstanding section 15-1466.01, subsection D, Arizona Revised Statutes, as added by this act, a community college district may submit to the economic estimates commission the average of the ten most recent audited full-time equivalent student enrollment counts.

B.  This section is repealed from and after June 30, 2019.

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