Bill Text: AZ SB1350 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: ADE school finance revisions
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2014-04-24 - Chapter 226 [SB1350 Detail]
Download: Arizona-2014-SB1350-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-first Legislature Second Regular Session 2014
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SENATE BILL 1350 |
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AN ACT
amending section 15‑101, Arizona Revised Statutes; amending Title 15, chapter 1, article 1, Arizona Revised Statutes, by adding section 15-116; amending sections 15‑185, 15‑211, 15‑393, 15‑792.03, 15‑901, 15‑902.03, 15‑923, 15‑941, 15‑946 and 15-980, Arizona Revised Statutes; relating to school finance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-101, Arizona Revised Statutes, is amended to read:
15-101. Definitions
In this title, unless the context otherwise requires:
1. "Accommodation school" means either:
(a) A school that is operated through the county board of supervisors and the county school superintendent and that the county school superintendent administers to serve a military reservation or territory that is not included within the boundaries of a school district.
(b) A school that provides educational services to homeless children or alternative education programs as provided in section 15‑308, subsection B.
(c) A school that is established to serve a military reservation, the boundaries of which are coterminous with the boundaries of the military reservation on which the school is located.
2. "Assessed valuation" means the valuation derived by applying the applicable percentage as provided in title 42, chapter 15, article 1 to the full cash value or limited property value, whichever is applicable, of the property.
3. "Charter holder" means a person that enters into a charter with the state board for charter schools. For the purposes of this paragraph, "person" means an individual, partnership, corporation, association or public or private organization of any kind.
4. "Charter school" means a public school established by contract with a district governing board, the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district with enrollment of more than fifteen thousand full‑time equivalent students or a group of community college districts with a combined enrollment of more than fifteen thousand full‑time equivalent students pursuant to article 8 of this chapter to provide learning that will improve pupil achievement.
5. "Child with a disability" means a child with a disability as defined in section 15‑761.
6. "Class A bonds" means general obligation bonds approved by a vote of the qualified electors of a school district at an election held on or before December 31, 1998.
7. "Class B bonds" means general obligation bonds approved by a vote of the qualified electors of a school district at an election held from and after December 31, 1998.
8. "Competency" means a demonstrated ability in a skill at a specified performance level.
9. "Course" means organized subject matter in which instruction is offered within a given period of time and for which credit toward promotion, graduation or certification is usually given. A course consists of knowledge selected from a subject for instructional purposes in the schools.
10. "Course of study" means a list of required and optional subjects to be taught in the schools.
11. "Dual enrollment course" means a college level course that is conducted on the campus of a high school or on the campus of a joint technical education district, that is applicable to an established community college academic degree or certificate program and that is transferable to a university under the jurisdiction of the Arizona board of regents. A dual enrollment course that is applicable to a community college occupational degree or certificate program may be transferable to a university under the jurisdiction of the Arizona board of regents.
12. "Elementary grades" means kindergarten programs and grades one through eight.
12. 13. "Fiscal year" means the year beginning July 1 and ending June 30.
13. 14. "Governing board" means a body organized for the government and management of the schools within a school district or a county school superintendent in the conduct of an accommodation school.
14. 15. "Lease" means an agreement for conveyance and possession of real or personal property.
15. 16. "Limited property value" means the value determined pursuant to title 42, chapter 13, article 7. Limited property value shall be used as the basis for assessing, fixing, determining and levying primary property taxes.
16. 17. "Parent" means the natural or adoptive parent of a child or a person who has custody of a child.
17. 18. "Person who has custody" means a parent or legal guardian of a child, a person to whom custody of the child has been given by order of a court or a person who stands in loco parentis to the child.
18. 19. "Primary property taxes" means all ad valorem taxes except for secondary property taxes.
19. 20. "Private school" means a nonpublic institution where instruction is imparted.
20. 21. "School" or "public school" means any public institution established for the purposes of offering instruction to pupils in programs for preschool children with disabilities, kindergarten programs or any combination of elementary grades or secondary grades one through twelve.
21. 22. "School district" means a political subdivision of this state with geographic boundaries organized for the purpose of the administration, support and maintenance of the public schools or an accommodation school.
23. "Secondary grades" means grades nine through twelve.
22. 24. "Secondary property taxes" means ad valorem taxes used to pay the principal of and the interest and redemption charges on any bonded indebtedness or other lawful long‑term obligation issued or incurred for a specific purpose by a school district or a community college district and amounts levied pursuant to an election to exceed a budget, expenditure or tax limitation.
23. 25. "Subject" means a division or field of organized knowledge, such as English or mathematics, or a selection from an organized body of knowledge for a course or teaching unit, such as the English novel or elementary algebra.
Sec. 2. Title 15, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 15-116, to read:
15-116. Public schools; fees; waiver; prohibition
A. A SCHOOL DISTRICT GOVERNING BOARD OR CHARTER SCHOOL GOVERNING BODY THAT AUTHORIZES THE ASSESSMENT OF FEES PURSUANT TO THIS TITLE SHALL ENSURE THAT ALL FEES CONTAIN A PROVISION THAT ALLOWS THE FEES TO BE WAIVED IN the event of ECONOMIC HARDSHIP TO THE PUPIL.
B. The nonpayment of FEES CHARGED BY A PUBLIC SCHOOL may NOT pREVENT A PUPIL from ENROLLING IN, APPLYING TO OR REMAINING ENROLLED IN A PUBLIC SCHOOL.
C. THIS SECTION does not PROHIBIT A SCHOOL DISTRICT OR CHARTER SCHOOL FROM CHARGING TUITION TO A NONRESIDENT PUPIL AS PERMITTED BY THIS TITLE.
Sec. 3. Section 15-185, Arizona Revised Statutes, is amended to read:
15-185. Charter schools; financing; civil penalty; transportation; definitions
A. Financial provisions for a charter school that is sponsored by a school district governing board are as follows:
1. The charter school shall be included in the district's budget and financial assistance calculations pursuant to paragraph 3 of this subsection and chapter 9 of this title, except for chapter 9, article 4 of this title. The charter of the charter school shall include a description of the methods of funding the charter school by the school district. The school district shall send a copy of the charter and application, including a description of how the school district plans to fund the school, to the state board of education before the start of the first fiscal year of operation of the charter school. The charter or application shall include an estimate of the student count for the charter school for its first fiscal year of operation. This estimate shall be computed pursuant to the requirements of paragraph 3 of this subsection.
2. A school district is not financially responsible for any charter school that is sponsored by the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts.
3. A school district that sponsors a charter school may:
(a) Increase its student count as provided in subsection B, paragraph 2 of this section during the first year of the charter school's operation to include those charter school pupils who were not previously enrolled in the school district. A charter school sponsored by a school district governing board is eligible for the charter additional assistance prescribed in subsection B, paragraph 4 of this section. The district additional assistance allocation as provided in section 15‑961 for the school district sponsoring the charter school shall be increased by the amount of the charter additional assistance. The school district shall include the full amount of the charter additional assistance in the funding provided to the charter school.
(b) Compute separate weighted student counts pursuant to section 15‑943, paragraph 2, subdivision (a) for its noncharter school versus charter school pupils in order to maintain eligibility for small school district support level weights authorized in section 15‑943, paragraph 1 for its noncharter school pupils only. The portion of a district's student count that is attributable to charter school pupils is not eligible for small school district support level weights.
4. If a school district uses the provisions of paragraph 3 of this subsection, the school district is not eligible to include those pupils in its student count for the purposes of computing an increase in its revenue control limit and district support level as provided in section 15‑948.
5. A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing an increase in its district additional assistance as provided in section 15‑961, subsection B, except that if the charter school was previously a school in the district, the district may include in its student count any charter school pupils who were enrolled in the school district in the prior year.
6. A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing the revenue control limit which is used to determine the maximum budget increase as provided in chapter 4, article 4 of this title unless the charter school is located within the boundaries of the school district.
7. If a school district converts one or more of its district public schools to a charter school and receives assistance as prescribed in subsection B, paragraph 4 of this section, and subsequently converts the charter school back to a district public school, the school district shall repay the state the total charter additional assistance received for the charter school for all years that the charter school was in operation. The repayment shall be in one lump sum and shall be reduced from the school district's current year equalization assistance. The school district's general budget limit shall be reduced by the same lump sum amount in the current year.
B. Financial provisions for a charter school that is sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts are as follows:
1. The charter school shall calculate a base support level as prescribed in section 15‑943, except that section 15‑941 does not apply to these charter schools.
2. Notwithstanding paragraph 1 of this subsection, the student count shall be determined initially using an estimated student count based on actual registration of pupils before the beginning of the school year. NOTWITHSTANDING SECTION 15-1042, SUBSECTION F, STUDENT LEVEL DATA submitted to the department MAY BE USED TO DETERMINE ESTIMATED STUDENT COUNTS. After the first forty days, one hundred days or two hundred days in session, as applicable, the charter school shall revise the student count to be equal to the actual average daily membership, as defined in section 15‑901, of the charter school. Before the fortieth day, one hundredth day or two hundredth day in session, as applicable, the state board of education, the state board for charter schools, the sponsoring university, the sponsoring community college district or the sponsoring group of community college districts may require a charter school to report periodically regarding pupil enrollment and attendance, and the department of education may revise its computation of equalization assistance based on the report. A charter school shall revise its student count, base support level and charter additional assistance before May 15. A charter school that overestimated its student count shall revise its budget before May 15. A charter school that underestimated its student count may revise its budget before May 15.
3. A charter school may utilize section 15‑855 for the purposes of this section. The charter school and the department of education shall prescribe procedures for determining average daily membership.
4. Equalization assistance for the charter school shall be determined by adding the amount of the base support level and charter additional assistance. The amount of the charter additional assistance is one thousand six hundred eighty-four dollars nineteen cents per student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and one thousand nine hundred sixty-two dollars ninety cents per student count in grades nine through twelve.
5. The state board of education shall apportion state aid from the appropriations made for such purposes to the state treasurer for disbursement to the charter schools in each county in an amount as determined by this paragraph. The apportionments shall be made as prescribed in section 15‑973, subsection B.
6. The charter school shall not charge tuition for pupils who reside in this state, levy taxes or issue bonds. A charter school may admit pupils who are not residents of this state and shall charge tuition for those pupils in the same manner prescribed in section 15‑823.
7. Not later than noon on the day preceding each apportionment date established by paragraph 5 of this subsection, the superintendent of public instruction shall furnish to the state treasurer an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the charter schools for the amount apportioned.
C. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the sum of the daily membership, which includes enrollment as prescribed in section 15‑901, subsection A, paragraph 1, subdivisions (a) and (b) and daily attendance as prescribed in section 15‑901, subsection A, paragraph 5, for that pupil in the school district and the charter school shall not exceed 1.0. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the department of education shall direct the average daily membership to the school with the most recent enrollment date. On validation of actual enrollment in both a charter school and a public school that is not a charter school and if the sum of the daily membership or daily attendance for that pupil is greater than 1.0, the sum shall be reduced to 1.0 and shall be apportioned between the public school and the charter school based on the percentage of total time that the pupil is enrolled or in attendance in the public school and the charter school. The uniform system of financial records shall include guidelines for the apportionment of the pupil enrollment and attendance as provided in this section.
D. Charter schools are allowed to accept grants and gifts to supplement their state funding, but it is not the intent of the charter school law to require taxpayers to pay twice to educate the same pupils. The base support level for a charter school or for a school district sponsoring a charter school shall be reduced by an amount equal to the total amount of monies received by a charter school from a federal or state agency if the federal or state monies are intended for the basic maintenance and operations of the school. The superintendent of public instruction shall estimate the amount of the reduction for the budget year and shall revise the reduction to reflect the actual amount before May 15 of the current year. If the reduction results in a negative amount, the negative amount shall be used in computing all budget limits and equalization assistance, except that:
1. Equalization assistance shall not be less than zero.
2. For a charter school sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts, the total of the base support level and the charter additional assistance shall not be less than zero.
3. For a charter school sponsored by a school district, the base support level for the school district shall not be reduced by more than the amount that the charter school increased the district's base support level and district additional assistance allocation.
E. If a charter school was a district public school in the prior year and is now being operated for or by the same school district and sponsored by the state board of education, the state board for charter schools, a university, a community college district, a group of community college districts or a school district governing board, the reduction in subsection D of this section applies. The reduction to the base support level of the charter school or the sponsoring district of the charter school shall equal the sum of the base support level and the charter additional assistance received in the current year for those pupils who were enrolled in the traditional public school in the prior year and are now enrolled in the charter school in the current year.
F. Equalization assistance for charter schools shall be provided as a single amount based on average daily membership without categorical distinctions between maintenance and operations or capital.
G. At the request of a charter school, the county school superintendent of the county where the charter school is located may provide the same educational services to the charter school as prescribed in section 15‑308, subsection A. The county school superintendent may charge a fee to recover costs for providing educational services to charter schools.
H. If the sponsor of the charter school determines at a public meeting that the charter school is not in compliance with federal law, with the laws of this state or with its charter, the sponsor of a charter school may submit a request to the department of education to withhold up to ten per cent of the monthly apportionment of state aid that would otherwise be due the charter school. The department of education shall adjust the charter school's apportionment accordingly. The sponsor shall provide written notice to the charter school at least seventy‑two hours before the meeting and shall allow the charter school to respond to the allegations of noncompliance at the meeting before the sponsor makes a final determination to notify the department of education of noncompliance. The charter school shall submit a corrective action plan to the sponsor on a date specified by the sponsor at the meeting. The corrective action plan shall be designed to correct deficiencies at the charter school and to ensure that the charter school promptly returns to compliance. When the sponsor determines that the charter school is in compliance, the department of education shall restore the full amount of state aid payments to the charter school.
I. In addition to the withholding of state aid payments pursuant to subsection H of this section, the sponsor of a charter school may impose a civil penalty of one thousand dollars per occurrence if a charter school fails to comply with the fingerprinting requirements prescribed in section 15‑183, subsection C or section 15‑512. The sponsor of a charter school shall not impose a civil penalty if it is the first time that a charter school is out of compliance with the fingerprinting requirements and if the charter school provides proof within forty-eight hours of written notification that an application for the appropriate fingerprint check has been received by the department of public safety. The sponsor of the charter school shall obtain proof that the charter school has been notified, and the notification shall identify the date of the deadline and shall be signed by both parties. The sponsor of a charter school shall automatically impose a civil penalty of one thousand dollars per occurrence if the sponsor determines that the charter school subsequently violates the fingerprinting requirements. Civil penalties pursuant to this subsection shall be assessed by requesting the department of education to reduce the amount of state aid that the charter school would otherwise receive by an amount equal to the civil penalty. The amount of state aid withheld shall revert to the state general fund at the end of the fiscal year.
J. A charter school may receive and spend monies distributed by the department of education pursuant to section 42‑5029, subsection E and section 37‑521, subsection B.
K. If a school district transports or contracts to transport pupils to the Arizona state schools for the deaf and the blind during any fiscal year, the school district may transport or contract with a charter school to transport sensory impaired pupils during that same fiscal year to a charter school if requested by the parent of the pupil and if the distance from the pupil's place of actual residence within the school district to the charter school is less than the distance from the pupil's place of actual residence within the school district to the campus of the Arizona state schools for the deaf and the blind.
L. Notwithstanding any other law, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts shall not include any student in the student count of the university, community college district or group of community college districts for state funding purposes if that student is enrolled in and attending a charter school sponsored by the university, community college district or group of community college districts.
M. The governing body of a charter school shall transmit a copy of its proposed budget or the summary of the proposed budget and a notice of the public hearing to the department of education for posting on the department of education's website no later than ten days before the hearing and meeting. If the charter school maintains a website, the charter school governing body shall post on its website a copy of its proposed budget or the summary of the proposed budget and a notice of the public hearing.
N. The governing body of a charter school shall collaborate with the private organization that is approved by the state board of education pursuant to section 15‑792.02 to provide approved board examination systems for the charter school.
O. If permitted by federal law, a charter school may opt out of federal grant opportunities if the charter holder or the appropriate governing body of the charter school determines that the federal requirements impose unduly burdensome reporting requirements.
P. For the purposes of this section:
1. "Monies intended for the basic maintenance and operations of the school" means monies intended to provide support for the educational program of the school, except that it does not include supplemental assistance for a specific purpose or title VIII of the elementary and secondary education act of 1965 monies. The auditor general shall determine which federal or state monies meet the definition in this paragraph.
2. "Operated for or by the same school district" means the charter school is either governed by the same district governing board or operated by the district in the same manner as other traditional schools in the district or is operated by an independent party that has a contract with the school district. The auditor general and the department of education shall determine which charter schools meet the definition in this subsection.
Sec. 4. Section 15-211, Arizona Revised Statutes, is amended to read:
15-211. K-3 reading program; receipt and use of monies; additional funding; program termination
A. The state board of education, in collaboration with the department of education, shall establish a K‑3 reading program to improve the reading proficiency of pupils in kindergarten programs and grades one, two and three in the public schools of this state.
B. On or before October 1, 2012, each school district and charter school shall submit to the state board of education a plan for improving the reading proficiency of its pupils in kindergarten programs and grades one, two and three. The plan shall include baseline data on the reading proficiency of its pupils in kindergarten programs and grades one, two and three and a budget for spending monies from both the K‑3 support level weight and the K‑3 reading support level weight established in section 15‑943. Beginning in fiscal year 2013‑2014 and each fiscal year thereafter, each school district and charter school shall submit to the state board of education on or before October 1 an updated K‑3 reading program plan that includes data on program expenditures and results.
C. School districts and charter schools shall use monies generated by the K‑3 reading support level weight established in section 15‑943 only on reading programs for pupils in kindergarten programs and grades one, two and three with particular emphasis on pupils in kindergarten programs and grades one and two.
D. Each school district and charter school that is assigned a letter grade of C, D or F pursuant to section 15‑241, subsection H or that has more than ten per cent of its pupils in grade three reading far below the third grade level according to the reading portion of the Arizona instrument to measure standards test, or a successor test, shall receive monies generated by the K‑3 reading support level weight established in section 15‑943 only after the K‑3 reading program plan of the school district or charter school has been approved by the state board of education.
E. Pupils in A CHARTER SCHOOL that is IN ITS FIRST YEAR OF OPERATION AND THAT IS SPONSORED BY THE STATE BOARD OF EDUCATION, THE STATE BOARD FOR CHARTER SCHOOLS, A UNIVERSITY UNDER THE JURISDICTION OF THE ARIZONA BOARD OF REGENTS, A COMMUNITY COLLEGE DISTRICT OR A GROUP OF COMMUNITY COLLEGE DISTRICTS are ELIGIBLE for THE K-3 READING SUPPORT LEVEL WEIGHT.
E. F. The department of education shall solicit gifts, grants and donations from any lawful public or private source in order to provide additional funding for the K‑3 reading program.
F. G. The program established by this section ends on July 1, 2022 pursuant to section 41‑3102.
Sec. 5. Section 15-393, Arizona Revised Statutes, is amended to read:
15-393. Joint technical education district governing board; report; definitions
A. The management and control of the joint district are vested in the joint technical education district governing board, including the content and quality of the courses offered by the district, the quality of teachers who provide instruction on behalf of the district, the salaries of teachers who provide instruction on behalf of the district and the reimbursement of other entities for the facilities used by the district. Unless the governing boards of the school districts participating in the formation of the joint district vote to implement an alternative election system as provided in subsection B of this section, the joint board shall consist of five members elected from five single member districts formed within the joint district. The single member district election system shall be submitted as part of the plan for the joint district pursuant to section 15‑392 and shall be established in the plan as follows:
1. The governing boards of the school districts participating in the formation of the joint district shall define the boundaries of the single member districts so that the single member districts are as nearly equal in population as is practicable, except that if the joint district lies in part in each of two or more counties, at least one single member district may be entirely within each of the counties comprising the joint district if this district design is consistent with the obligation to equalize the population among single member districts.
2. The boundaries of each single member district shall follow election precinct boundary lines, as far as practicable, in order to avoid further segmentation of the precincts.
3. A person who is a registered voter of this state and who is a resident of the single member district is eligible for election to the office of joint board member from the single member district. The terms of office of the members of the joint board shall be as prescribed in section 15‑427, subsection B. An employee of a joint technical education district or the spouse of an employee shall not hold membership on a governing board of a joint technical education district by which the employee is employed. A member of one school district governing board or joint technical education district governing board is ineligible to be a candidate for nomination or election to or serve simultaneously as a member of any other governing board, except that a member of a governing board may be a candidate for nomination or election for any other governing board if the member is serving in the last year of a term of office. A member of a governing board shall resign the member's seat on the governing board before becoming a candidate for nomination or election to the governing board of any other school district or joint technical education district, unless the member of the governing board is serving in the last year of a term of office.
4. Nominating petitions shall be signed by the number of qualified electors of the single member district as provided in section 16‑322.
B. The governing boards of the school districts participating in the formation of the joint district may vote to implement any other alternative election system for the election of joint district board members. If an alternative election system is selected, it shall be submitted as part of the plan for the joint district pursuant to section 15‑392, and the implementation of the system shall be as approved by the United States justice department.
C. The joint technical education district shall be subject to the following provisions of this title:
1. Chapter 1, articles 1 through 6.
2. Sections 15‑208, 15‑210, 15‑213 and 15‑234.
3. Articles 2, 3 and 5 of this chapter.
4. Section 15‑361.
5. Chapter 4, articles 1, 2 and 5.
6. Chapter 5, articles 1, 2 and 3.
7. Sections 15‑701.01, 15‑722, 15‑723, 15‑724, 15‑727, 15‑728, 15‑729 and 15‑730.
8. Chapter 7, article 5.
9. Chapter 8, articles 1, 3 and 4.
10. Sections 15‑828 and 15‑829.
11. Chapter 9, article 1, article 6, except for section 15‑995, and article 7.
12. Sections 15‑941, 15‑943.01, 15‑948, 15‑952, 15‑953 and 15‑973.
13. Sections 15‑1101 and 15‑1104.
14. Chapter 10, articles 2, 3, 4 and 8.
D. Notwithstanding subsection C of this section, the following apply to a joint technical education district:
1. A joint district may issue bonds for the purposes specified in section 15‑1021 and in chapter 4, article 5 of this title to an amount in the aggregate, including the existing indebtedness, not exceeding one per cent of the taxable property used for secondary tax purposes, as determined pursuant to title 42, chapter 15, article 1, within the joint technical education district as ascertained by the last property tax assessment previous to issuing the bonds.
2. The number of governing board members for a joint district shall be as prescribed in subsection A of this section.
3. The student count for the first year of operation of a joint technical education district as provided in this article shall be determined as follows:
(a) Determine the estimated student count for joint district classes that will operate in the first year of operation. This estimate shall be based on actual registration of pupils as of March 30 scheduled to attend classes that will be operated by the joint district. The student count for the district of residence of the pupils registered at the joint district shall be adjusted. The adjustment shall cause the district of residence to reduce the student count for the pupil to reflect the courses to be taken at the joint district. The district of residence shall review and approve the adjustment of its own student count as provided in this subdivision before the pupils from the school district can be added to the student count of the joint district.
(b) The student count for the new joint district shall be the student count as determined in subdivision (a) of this paragraph.
(c) For the first year of operation, the joint district shall revise the student count to the actual average daily membership as prescribed in section 15‑901, subsection A, paragraph 1 for students attending classes in the joint district. A joint district shall revise its student count, the base support level as provided in section 15‑943.02, the revenue control limit as provided in section 15‑944.01 and the district additional assistance as provided in section 15‑962.01 prior to May 15. A joint district that overestimated its student count shall revise its budget prior to May 15. A joint district that underestimated its student count may revise its budget prior to May 15.
(d) After March 15 of the first year of operation, the district of residence shall adjust its student count by reducing it to reflect the courses actually taken at the joint district. The district of residence shall revise its student count, the base support level as provided in section 15‑943, the revenue control limit as provided in section 15‑944 and the district additional assistance as provided in section 15‑962.01 prior to May 15. A district that underestimated the student count for students attending the joint district shall revise its budget prior to May 15. A district that overestimated the student count for students attending the joint district may revise its budget prior to May 15.
(e) A joint district for the first year of operation shall not be eligible for adjustment pursuant to section 15‑948.
(f) The procedures for implementing this paragraph shall be as prescribed in the uniform system of financial records.
(g) Pupils in an approved joint technical education district centralized program may generate an average daily membership of 1.0 during any day of the week and at any time between July 1 and June 30 of each fiscal year.
For the purposes of this paragraph, "district of residence" means the district that included the pupil in its average daily membership for the year before the first year of operation of the joint district and that would have included the pupil in its student count for the purposes of computing its base support level for the fiscal year of the first year of operation of the joint district if the pupil had not enrolled in the joint district.
4. A student includes any person enrolled in the joint district without regard to the person's age or high school graduation status, except that:
(a) A student in a kindergarten program or in grades one through nine who enrolls in courses offered by the joint technical education district shall not be included in the joint district's student count or average daily membership.
(b) A student in a kindergarten program or in grades one through nine who is enrolled in career and technical education courses shall not be funded in whole or in part with monies provided by a joint technical education district, except that a pupil in grade eight or nine may be funded with monies generated by the five cent qualifying tax rate authorized in subsection F of this section.
(c) A student who is over twenty‑one years of age shall not be included in the student count of the joint district for the purposes of chapter 9, articles 3, 4 and 5 of this title.
5. A joint district may operate for more than one hundred eighty days per year, with expanded hours of service.
6. A joint district may use the carryforward provisions of section 15‑943.01.
7. A school district that is part of a joint district shall use any monies received pursuant to this article to supplement and not supplant base year career and technical education courses, and directly related equipment and facilities, except that a school district that is part of a joint technical education district and that has used monies received pursuant to this article to supplant career and technical education courses that were offered before the first year that the school district participated in the joint district or the first year that the school district used monies received pursuant to this article or that used the monies for purposes other than for career and technical education courses shall use one hundred per cent of the monies received pursuant to this article to supplement and not supplant base year career and technical education courses.
8. A joint technical education district shall use any monies received pursuant to this article to enhance and not supplant career and technical education courses and directly related equipment and facilities.
9. A joint technical education district or a school district that is part of a joint district shall only include pupils in grades ten through twelve in the calculation of student count or average daily membership if the pupils are enrolled in courses that are approved jointly by the governing board of the joint technical education district and each participating school district for satellite courses taught within the participating school district, or approved solely by the joint technical education district for centrally located courses. Student count and average daily membership from courses that are not part of an approved program for career and technical education shall not be included in student count and average daily membership of a joint technical education district.
E. The joint board shall appoint a superintendent as the executive officer of the joint district.
F. Taxes may be levied for the support of the joint district as prescribed in chapter 9, article 6 of this title, except that a joint technical education district shall not levy a property tax pursuant to law that exceeds five cents per one hundred dollars assessed valuation except for bond monies pursuant to subsection D, paragraph 1 of this section. Except for the taxes levied pursuant to section 15‑994, such taxes shall be obtained from a levy of taxes on the taxable property used for secondary tax purposes.
G. The schools in the joint district are available to all persons who reside in the joint district and to pupils whose district of residence within this state is paying tuition on behalf of the pupils to a district of attendance that is a member of the joint technical education district, subject to the rules for admission prescribed by the joint board.
H. The joint board may collect tuition for adult students and the attendance of pupils who are residents of school districts that are not participating in the joint district pursuant to arrangements made between the governing board of the district and the joint board.
I. The joint board may accept gifts, grants, federal monies, tuition and other allocations of monies to erect, repair and equip buildings and for the cost of operation of the schools of the joint district.
J. One member of the joint board shall be selected chairman. The chairman shall be selected annually on a rotation basis from among the participating school districts. The chairman of the joint board shall be a voting member.
K. A joint board and a community college district may enter into agreements for the provision of administrative, operational and educational services and facilities.
L. Any agreement between the governing board of a joint technical education district and another joint technical education district, a school district, a charter school or a community college district shall be in the form of an intergovernmental agreement or other written contract. The auditor general shall modify the uniform system of financial records and budget forms in accordance with this subsection. The intergovernmental agreement or other written contract shall completely and accurately specify each of the following:
1. The financial provisions of the intergovernmental agreement or other written contract and the format for the billing of all services.
2. The accountability provisions of the intergovernmental agreement or other written contract.
3. The responsibilities of each joint technical education district, each school district, each charter school and each community college district that is a party to the intergovernmental agreement or other written contract.
4. The type of instruction that will be provided under the intergovernmental agreement or other written contract, including individualized education programs pursuant to section 15‑763.
5. The quality of the instruction that will be provided under the intergovernmental agreement or other written contract.
6. The transportation services that will be provided under the intergovernmental agreement or other written contract and the manner in which transportation costs will be paid.
7. The amount that the joint technical education district will contribute to a course and the amount of support required by the school district or the community college.
8. That the services provided by the joint technical education district, the school district, the charter school or the community college district be proportionally calculated in the cost of delivering the service.
9. That the payment for services shall not exceed the cost of the services provided.
M. On or before December 31 of each year, each joint technical education district shall submit a detailed report to the career and technical education division of the department of education. The career and technical education division of the department of education shall collect, summarize and analyze the data submitted by the joint districts, shall submit an annual report that summarizes the data submitted by the joint districts to the governor, the speaker of the house of representatives, the president of the senate and the state board of education and shall submit a copy of this report to the secretary of state. The data submitted by each joint technical education district shall include the following:
1. The average daily membership of the joint district.
2. The program listings and program descriptions of programs offered by the joint district, including the course sequences for each program.
3. The costs associated with each program offered by the joint district.
4. The completion rate for each program offered by the joint district. For the purposes of this paragraph, "completion rate" means the completion rate for students who are designated as concentrators in that program by the department of education under the career and technology approved plan.
5. The graduation rate from the school district of residence of students who have completed a program in the joint district.
6. A detailed description of the career opportunities available to students after completion of the program offered by the joint district.
7. A detailed description of the career placement of students who have completed the program offered by the joint district.
8. Any other data deemed necessary by the department of education to carry out its duties under this subsection.
N. If the career and technical education division of the department of education determines that a course does not meet the criteria for approval as a joint technical education course, the governing board of the joint technical education district may appeal this decision to the state board of education acting as the state board of vocational education.
O. Notwithstanding any other law, the average daily membership for a pupil who is enrolled in a joint technical education course defined in section 15‑391 and who does not meet the criteria specified in subsection Q or R of this section shall be 0.25 for each course, except the sum of the average daily membership shall not exceed the limits prescribed by subsection D, Q or R of this section, as applicable.
P. If a career and technical education course or program is provided on a satellite campus, the sum of the average daily membership, as provided in section 15‑901, subsection A, paragraph 1, for that pupil in both the school district and joint technical education district shall not exceed 1.25. The school district and the joint district shall determine the apportionment of the average daily membership for that pupil between the school district and the joint district. A pupil who attends a course or program at a satellite campus and who is not enrolled in the school district where the satellite campus is located may generate the average daily membership pursuant to this subsection if the pupil is enrolled in a school district that is a member district in the same joint technical education district.
Q. The sum of the average daily membership of a pupil who is enrolled in both the school district and joint technical education district course or program provided at a community college pursuant to subsection K of this section or at a centralized campus shall not exceed 1.75. The member school district and the joint district shall determine the apportionment of the average daily membership and student enrollment for that pupil between the member school district and the joint district, except that the amount apportioned shall not exceed 1.0 for either entity. Notwithstanding any other law, the average daily membership for a pupil in grade ten, eleven or twelve who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a centralized campus shall be 0.75. To qualify for funding pursuant to this subsection, a centralized campus shall offer programs and courses to all eligible students in each member district of the joint technical education district.
R. The average daily membership for a pupil in grade ten, eleven or twelve who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a leased centralized campus shall not exceed 0.75. The sum of the average daily membership, as provided in section 15‑901, subsection A, paragraph 1, of a pupil who is enrolled in both the school district and in joint technical education district courses provided at a leased centralized campus shall not exceed 1.75 if all of the following conditions are met:
1. The course qualifies as a joint technical education course as defined in section 15-391.
2. The course is offered to all eligible students in each member district of the joint technical education district and enrolls students from multiple high schools.
3. The joint technical education district program in which the course is included addresses a specific industry need and has been developed in cooperation with that industry, or the leased facility is a state or federal asset that would otherwise be unused or underutilized.
4. The lease is established at fair market value if the lease is executed for a facility located on the site of a member district and was approved by the joint committee on capital review, except that a lease that was executed or renewed before December 31, 2012 is not subject to approval by the joint committee on capital review. The requirement prescribed in this paragraph does not apply from and after December 31, 2016.
S. A student who is enrolled in an accommodation school as defined in section 15‑101 may be treated as a student of the school district in which the student physically resides for the purposes of enrollment in a joint technical education district and shall be included in the calculation of average daily membership for either the joint technical education district or the accommodation school, or both.
T. Notwithstanding any other law, beginning in fiscal year 2011‑2012, the student count for a joint technical education district shall be equivalent to the joint technical education district's average daily membership.
U. For the purposes of this section:
1. "Base year" means the complete school year in which voters of a school district elected to join a joint technical education district.
2. "Centralized campus" means a facility that is owned and operated by a joint technical education district for the purpose of offering joint technical education programs or joint technical education courses as defined in section 15‑391.
3. "Lease" means a written agreement in which the right of occupancy or use of real property is conveyed from one person or entity to another person or entity for a specified period of time.
4. "Leased centralized campus" means a facility that is leased and operated by a joint technical education district for the purpose of offering joint technical education programs or joint technical education courses as defined in section 15‑391.
5. "Satellite campus" means a facility that is owned or operated by a school district for the purpose of offering joint technical education programs or joint technical education courses as defined in section 15‑391.
Sec. 6. Section 15-792.03, Arizona Revised Statutes, is amended to read:
15-792.03. Grand Canyon diploma
A. The private organization selected pursuant to section 15‑792.02 shall develop the Grand Canyon diploma to be approved and adopted by the state board of education. School districts and charter schools in this state may choose to offer a Grand Canyon diploma beginning in the 2012‑2013 school year. A high school student who is enrolled in a school district or charter school that offers a Grand Canyon diploma may choose to pursue a Grand Canyon diploma.
B. Students are eligible for the Grand Canyon diploma and may be awarded the Grand Canyon diploma at the end of grade ten or during or at the end of grade eleven or twelve if the students meet the criteria. Students who elect to pursue a Grand Canyon diploma shall participate in a board examination system that consists of internationally benchmarked instructional programs of study chosen by an interstate compact on board examination systems.
C. Students who are eligible for a Grand Canyon diploma shall have multiple pathways available to them and may:
1. Enroll the following fall semester in a community college under the jurisdiction of a community college district in this state. Community colleges under the jurisdiction of a community college district in this state shall admit students who obtain a Grand Canyon diploma and who otherwise meet the qualifications for admission. The school district or charter school from which the student earned the Grand Canyon diploma shall include that student in the school district's or charter school's student count average daily membership and shall continue to receive per pupil funding for a student who earns a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled as a full‑time student in a community college under the jurisdiction of a community college district in this state. The school district or charter school shall subtract twenty per cent of its average daily membership amount and reimburse the community college if the student has earned a Grand Canyon diploma and is attending a community college as a full‑time student. If the student attends community college on a community college campus, the school district or charter school shall reimburse the community college district for the amount of operating and capital outlay full-time student equivalency monies. For the purposes of this paragraph, the amount of operating full‑time student equivalency monies shall be equivalent to the average appropriation per full‑time student equivalent for all community college districts as calculated pursuant to section 15‑1466, subsection C, paragraph 2. Fifty per cent of the remaining balance of the per pupil funding shall be used for teacher and pupil incentives, including scholarship programs, to offset the costs of board examinations and to provide customized programs of assistance for students who do not pass the board examinations. The other fifty per cent shall be used for maintenance and operations, including capital. Under this paragraph, a student who earns a Grand Canyon diploma is responsible for tuition. A student who earns a Grand Canyon diploma may enroll in community college courses offered on a community college campus or a high school campus, or both. Notwithstanding any other law, community college districts shall not classify a student who remains in high school pursuant to this paragraph as a full‑time equivalent student. Students who take courses on high school campuses pursuant to this paragraph shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve. The expenditure by community college districts of payments from the school district or charter school to the community colleges under this section shall not be included under the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona. If the instruction provided under this paragraph is offered on a community college campus, the funding and implementation mechanics between the school district or charter school and the community college shall be determined by agreement between the school district or charter school and the community college.
2. Remain in high school and enroll in additional advanced preparation board examination programs that are designed to prepare those students for admission to selective postsecondary institutions that offer baccalaureate degree programs. These board examination programs shall be selected from a list approved by an interstate compact for board examination systems. The school district or charter school from which the student became eligible for the Grand Canyon diploma shall include that student in the school district's or charter school's student count average daily membership and shall continue to receive per pupil funding for a student who is eligible for a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in approved advanced preparation board examination programs at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the pupil becomes eligible for a Grand Canyon diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve.
3. Enroll in a full‑time career and technical education program offered on a high school campus or a joint technical education district campus, or any combination of these campuses. Students who elect to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the pupil becomes eligible for a Grand Canyon diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve. The school district or charter school from which the student became eligible for the Grand Canyon diploma shall include that student in the school district's or charter school's student count AVERAGE daily membership and shall continue to receive per pupil funding for a student who is eligible for a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in an approved full‑time career and technical education program. Notwithstanding any other law, if the instruction provided under this paragraph is provided by a joint technical education district in a full‑time career and technical education program that is designed to lead to a certificate that is awarded by an industry or recognized as meeting industry standards, the sum of the average daily membership for that pupil shall not exceed 1.25, and the average daily membership shall be apportioned at 1.0 for the joint technical education district and 0.25 for the school district.
4. Remain in high school without completing the next level of board examination systems and participate in programs of study available to the students through the school district or charter school. The school district or charter school will continue to include the students in the school district's or charter school's count and shall continue to receive per pupil funding for the students until those students would have otherwise graduated at the end of grade twelve, as long as those students are enrolled in approved programs of study at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall be eligible to participate in extracurricular activities, including interscholastic sports.
5. If accepted for admission to a university under the jurisdiction of the Arizona board of regents, enroll in the university after completion of additional high school coursework designed to prepare students for admission to selective postsecondary institutions that offer baccalaureate degrees. The school district or charter school from which the student earned the grand canyon diploma shall include that student in the school district's or charter school's student count average daily membership and shall continue to receive per pupil funding for a student who earns a grand canyon diploma until that student would otherwise have graduated at the end of grade twelve for as long as that student is enrolled as a full‑time student in the university. One‑third of the school district's or charter school's average daily membership amount shall be retained by the school district or the operator of the charter school. One‑third of the school district's or charter school's average daily membership amount shall be retained for use at the school site. One‑third of the school district's or charter school's average daily membership amount shall be distributed as follows:
(a) One‑half shall be deposited in a scholarship account established and managed by the school district from which the student graduated specifically for a student who qualifies for the grand canyon diploma and who attends a university under the jurisdiction of the Arizona board of regents as a full‑time student.
(b) One‑half shall be retained by the university where the student is enrolled.
D. Students who pursue but do not meet the eligibility requirements for a Grand Canyon diploma at the end of grade ten or eleven shall receive a customized program of assistance during the next school year that addresses areas in which the student demonstrated deficiencies in the approved board examinations. These students may retake the board examinations at the next available examination administration. Students may choose to return to a traditional academic program without completing the board examination system curriculum.
E. The private organization selected pursuant to section 15‑792.02 shall develop detailed requirements for students to become eligible for the Grand Canyon diploma, as approved and adopted by the state board of education, that include at least the following:
1. Demonstrated skills and knowledge in English and mathematical literacy to be successful in college level courses offered by the community colleges in this state that count toward a degree or certificate without taking remedial or developmental coursework as determined by an interstate compact on board examination systems.
2. Satisfactory grades on approved board examinations in subjects determined to be necessary to prepare a student to enter community college without remedial or developmental coursework and that do not include coursework required exclusively for entry into an institution that awards baccalaureate degrees.
Sec. 7. Section 15-901, Arizona Revised Statutes, is amended to read:
15-901. Definitions
A. In this title, unless the context otherwise requires:
1. "Average daily membership" means the total enrollment of fractional students and full‑time students, minus withdrawals, of each school day through the first one hundred days or two hundred days in session, as applicable, for the current year. Withdrawals include students formally withdrawn from schools and students absent for ten consecutive school days, except for excused absences identified by the department of education. For the purposes of this section, school districts and charter schools shall report student absence data to the department of education at least once every sixty days in session. For computation purposes, the effective date of withdrawal shall be retroactive to the last day of actual attendance of the student or excused absence.
(a) "Fractional student" means:
(i) For common schools, a preschool child who is enrolled in a program for preschool children with disabilities of at least three hundred sixty minutes each week that meets at least two hundred sixteen hours over the minimum number of days or a kindergarten student who is at least five years of age before January 1 of the school year and enrolled in a school kindergarten program that meets at least three hundred fifty‑six hours for a one hundred eighty day school year, or the instructional hours prescribed in this section. Lunch periods and recess periods may not be included as part of the instructional hours unless the child's individualized education program requires instruction during those periods and the specific reasons for such instruction are fully documented. In computing the average daily membership, preschool children with disabilities and kindergarten students shall be counted as one‑half of a full‑time student. For common schools, a part‑time student is a student enrolled for less than the total time for a full‑time student as defined in this section. A part‑time common school student shall be counted as one‑fourth, one‑half or three‑fourths of a full‑time student if the student is enrolled in an instructional program that is at least one‑fourth, one‑half or three‑fourths of the time a full‑time student is enrolled as defined in subdivision (b) of this paragraph.
(ii) For high schools, a part‑time student who is enrolled in less than four subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, in a recognized high school. The average daily membership of a part‑time high school student shall be 0.75 if the student is enrolled in an instructional program of three subjects that meet at least five hundred forty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section. The average daily membership of a part‑time high school student shall be 0.5 if the student is enrolled in an instructional program of two subjects that meet at least three hundred sixty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section. The average daily membership of a part‑time high school student shall be 0.25 if the student is enrolled in an instructional program of one subject that meets at least one hundred eighty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.
(b) "Full‑time student" means:
(i) For common schools, a student who is at least six years of age before January 1 of a school year, who has not graduated from the highest grade taught in the school district and who is regularly enrolled in a course of study required by the state board of education. First, second and third grade students, ungraded students at least six, but under nine, years of age by September 1 or ungraded group B children with disabilities who are at least five, but under six, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least seven hundred twelve hours for a one hundred eighty day school year, or the instructional hours prescribed in this section. Fourth, fifth and sixth grade students or ungraded students at least nine, but under twelve, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least eight hundred ninety hours for a one hundred eighty day school year, or the instructional hours prescribed in this section. Seventh and eighth grade students or ungraded students at least twelve, but under fourteen, years of age by September 1 must be enrolled in an instructional program that meets for at least one thousand hours. Lunch periods and recess periods may not be included as part of the instructional hours unless the student is a child with a disability and the child's individualized education program requires instruction during those periods and the specific reasons for such instruction are fully documented.
(ii) For high schools, a student not graduated from the highest grade taught in the school district, or an ungraded student at least fourteen years of age by September 1, and enrolled in at least an instructional program of four or more subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, that meets for a total of at least seven hundred twenty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section in a recognized high school. A full‑time student shall not be counted more than once for computation of average daily membership. The average daily membership of a full-time high school student shall be 1.0 if the student is enrolled in at least four subjects that meet at least seven hundred twenty hours for a one hundred eighty day school year, or the equivalent instructional hours prescribed in this section.
(iii) If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten and repeats kindergarten in the following school year, a school district or charter school is not eligible to receive basic state aid on behalf of that child during the child's second year of kindergarten. If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten but does not remain enrolled, a school district or charter school may receive a portion of basic state aid on behalf of that child in the subsequent year. A school district or charter school may charge tuition for any child who is ineligible for basic state aid pursuant to this item.
(iv) Except as otherwise provided by law, for a full‑time high school student who is concurrently enrolled in two school districts or two charter schools, the average daily membership shall not exceed 1.0.
(v) Except as otherwise provided by law, for any student who is concurrently enrolled in a school district and a charter school, the average daily membership shall be apportioned between the school district and the charter school and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and the charter school.
(vi) Except as otherwise provided by law, for any student who is concurrently enrolled, pursuant to section 15‑808, in a school district and Arizona online instruction or a charter school and Arizona online instruction, the average daily membership shall be apportioned between the school district and Arizona online instruction or the charter school and Arizona online instruction and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and Arizona online instruction or the charter school and Arizona online instruction.
(vii) For homebound or hospitalized, a student receiving at least four hours of instruction per week.
2. "Budget year" means the fiscal year for which the school district is budgeting and that immediately follows the current year.
3. "Common school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and either:
(a) Grades one through eight.
(b) Grades one through nine pursuant to section 15‑447.01.
4. "Current year" means the fiscal year in which a school district is operating.
5. "Daily attendance" means:
(a) For common schools, days in which a pupil:
(i) Of a kindergarten program or ungraded, but not group B children with disabilities, and at least five, but under six, years of age by September 1 attends at least three‑quarters of the instructional time scheduled for the day. If the total instruction time scheduled for the year is at least three hundred fifty‑six hours but is less than seven hundred twelve hours, such attendance shall be counted as one‑half day of attendance. If the instructional time scheduled for the year is at least six hundred ninety‑two hours, "daily attendance" means days in which a pupil attends at least one‑half of the instructional time scheduled for the day. Such attendance shall be counted as one‑half day of attendance.
(ii) Of the first, second or third grades, ungraded and at least six, but under nine, years of age by September 1 or ungraded group B children with disabilities and at least five, but under six, years of age by September 1 attends more than three‑quarters of the instructional time scheduled for the day.
(iii) Of the fourth, fifth or sixth grades or ungraded and at least nine, but under twelve, years of age by September 1 attends more than three‑quarters of the instructional time scheduled for the day, except as provided in section 15‑797.
(iv) Of the seventh or eighth grades or ungraded and at least twelve, but under fourteen, years of age by September 1 attends more than three‑quarters of the instructional time scheduled for the day, except as provided in section 15‑797.
(b) For common schools, the attendance of a pupil at three‑quarters or less of the instructional time scheduled for the day shall be counted as follows, except as provided in section 15‑797 and except that attendance for a fractional student shall not exceed the pupil's fractional membership:
(i) If attendance for all pupils in the school is based on quarter days, the attendance of a pupil shall be counted as one‑fourth of a day's attendance for each one‑fourth of full‑time instructional time attended.
(ii) If attendance for all pupils in the school is based on half days, the attendance of at least three‑quarters of the instructional time scheduled for the day shall be counted as a full day's attendance and attendance at a minimum of one‑half but less than three‑quarters of the instructional time scheduled for the day equals one‑half day of attendance.
(c) For common schools, the attendance of a preschool child with disabilities shall be counted as one‑fourth day's attendance for each thirty‑six minutes of attendance not including lunch periods and recess periods, except as provided in paragraph 1, subdivision (a), item (i) of this subsection for children with disabilities up to a maximum of three hundred sixty minutes each week.
(d) For high schools or ungraded schools in which the pupil is at least fourteen years of age by September 1, the attendance of a pupil shall not be counted as a full day unless the pupil is actually and physically in attendance and enrolled in and carrying four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, that count toward graduation in a recognized high school except as provided in section 15‑797 and subdivision (e) of this paragraph. Attendance of a pupil carrying less than the load prescribed shall be prorated.
(e) For high schools or ungraded schools in which the pupil is at least fourteen years of age by September 1, the attendance of a pupil may be counted as one‑fourth of a day's attendance for each sixty minutes of instructional time in a subject that counts toward graduation, except that attendance for a pupil shall not exceed the pupil's full or fractional membership.
(f) For homebound or hospitalized, a full day of attendance may be counted for each day during a week in which the student receives at least four hours of instruction.
(g) For school districts that maintain school for an approved year‑round school year operation, attendance shall be based on a computation, as prescribed by the superintendent of public instruction, of the one hundred eighty days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each pupil is enrolled.
6. "Daily route mileage" means the sum of:
(a) The total number of miles driven daily by all buses of a school district while transporting eligible students from their residence to the school of attendance and from the school of attendance to their residence on scheduled routes approved by the superintendent of public instruction.
(b) The total number of miles driven daily on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible student from the place of his residence to a school transportation pickup point or to the school of attendance and from the school transportation scheduled return point or from the school of attendance to his residence. Daily route mileage includes the total number of miles necessary to drive to transport eligible students from and to their residence as provided in this paragraph.
7. "District support level" means the base support level plus the transportation support level.
8. "Eligible students" means:
(a) Students who are transported by or for a school district and who qualify as full‑time students or fractional students, except students for whom transportation is paid by another school district or a county school superintendent, and:
(i) For common school students, whose place of actual residence within the school district is more than one mile from the school facility of attendance or students who are admitted pursuant to section 15‑816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches and whose actual place of residence outside the school district boundaries is more than one mile from the school facility of attendance.
(ii) For high school students, whose place of actual residence within the school district is more than one and one‑half miles from the school facility of attendance or students who are admitted pursuant to section 15‑816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches and whose actual place of residence outside the school district boundaries is more than one and one‑half miles from the school facility of attendance.
(b) Kindergarten students, for purposes of computing the number of eligible students under subdivision (a), item (i) of this paragraph, shall be counted as full‑time students, notwithstanding any other provision of law.
(c) Children with disabilities, as defined by section 15‑761, who are transported by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of this title and who qualify as full‑time students or fractional students regardless of location or residence within the school district or children with disabilities whose transportation is required by the pupil's individualized education program.
(d) Students whose residence is outside the school district and who are transported within the school district on the same basis as students who reside in the school district.
9. "Enrolled" or "enrollment" means when a pupil is currently registered in the school district.
10. "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.
11. "High school district" means a political subdivision of this state offering instruction to students for grades nine through twelve or that portion of the budget of a common school district that is allocated to teaching high school subjects with permission of the state board of education.
12. "Revenue control limit" means the base revenue control limit plus the transportation revenue control limit.
13. "Student count" means average daily membership as prescribed in this subsection for the fiscal year before the current year, except that for the purpose of budget preparation student count means average daily membership as prescribed in this subsection for the current year.
14. "Submit electronically" means submitted in a format and in a manner prescribed by the department of education.
15. "Total bus mileage" means the total number of miles driven by all buses of a school district during the school year.
16. "Total students transported" means all eligible students transported from their place of residence to a school transportation pickup point or to the school of attendance and from the school of attendance or from the school transportation scheduled return point to their place of residence.
17. "Unified school district" means a political subdivision of the state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through twelve.
B. In this title, unless the context otherwise requires:
1. "Base" means the revenue level per student count specified by the legislature.
2. "Base level" means the following amounts plus the percentage increases to the base level as provided in sections 15‑902.04, 15‑918.04, 15‑919.04 and 15‑952, except that if a school district or charter school is eligible for an increase in the base level as provided in two or more of these sections, the base level amount shall be calculated by compounding rather than adding the sum of one plus the percentage of the increase from those different sections:
(a) For fiscal year 2007‑2008, three thousand two hundred twenty‑six dollars eighty-eight cents.
(b) For fiscal year 2008‑2009, three thousand two hundred ninety‑one dollars forty-two cents.
(c) For fiscal years 2009‑2010, 2010‑2011, 2011‑2012 and 2012‑2013, three thousand two hundred sixty‑seven dollars seventy‑two cents.
(d) For fiscal year 2013-2014, three thousand three hundred twenty‑six dollars fifty-four cents.
3. "Base revenue control limit" means the base revenue control limit computed as provided in section 15‑944.
4. "Base support level" means the base support level as provided in section 15‑943.
5. "Certified teacher" means a person who is certified as a teacher pursuant to the rules adopted by the state board of education, who renders direct and personal services to school children in the form of instruction related to the school district's educational course of study and who is paid from the maintenance and operation section of the budget.
6. "DD" means programs for children with developmental delays who are at least three years of age but under ten years of age. A preschool child who is categorized under this paragraph is not eligible to receive funding pursuant to section 15‑943, paragraph 2, subdivision (b).
7. "ED, MIID, SLD, SLI and OHI" means programs for children with emotional disabilities, mild intellectual disabilities, a specific learning disability, a speech/language impairment and other health impairments. A preschool child who is categorized as SLI under this paragraph is not eligible to receive funding pursuant to section 15‑943, paragraph 2, subdivision (b).
8. "ED‑P" means programs for children with emotional disabilities who are enrolled in private special education programs as prescribed in section 15‑765, subsection D, paragraph 1 or in an intensive school district program as provided in section 15‑765, subsection D, paragraph 2.
9. "ELL" means English learners who do not speak English or whose native language is not English, who are not currently able to perform ordinary classroom work in English and who are enrolled in an English language education program pursuant to sections 15‑751, 15‑752 and 15‑753.
10. "Full‑time equivalent certified teacher" or "FTE certified teacher" means for a certified teacher the following:
(a) If employed full time as defined in section 15‑501, 1.00.
(b) If employed less than full time, multiply 1.00 by the percentage of a full school day, or its equivalent, or a full class load, or its equivalent, for which the teacher is employed as determined by the governing board.
11. "Group A" means educational programs for career exploration, a specific learning disability, an emotional disability, a mild intellectual disability, remedial education, a speech/language impairment, developmental delay, homebound, bilingual, other health impairments and gifted pupils.
12. "Group B" means educational improvements for pupils in kindergarten programs and grades one through three, educational programs for autism, a hearing impairment, a moderate intellectual disability, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairments, preschool severe delay, a severe intellectual disability and emotional disabilities for school age pupils enrolled in private special education programs or in school district programs for children with severe disabilities or visual impairment and English learners enrolled in a program to promote English language proficiency pursuant to section 15‑752.
13. "HI" means programs for pupils with hearing impairment.
14. "Homebound" or "hospitalized" means a pupil who is capable of profiting from academic instruction but is unable to attend school due to illness, disease, accident or other health conditions, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for a period of not less than three school months or a pupil who is capable of profiting from academic instruction but is unable to attend school regularly due to chronic or acute health problems, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for intermittent periods of time totaling three school months during a school year. The medical certification shall state the general medical condition, such as illness, disease or chronic health condition, that is the reason that the pupil is unable to attend school. Homebound or hospitalized includes a student who is unable to attend school for a period of less than three months due to a pregnancy if a competent medical doctor, after an examination, certifies that the student is unable to attend regular classes due to risk to the pregnancy or to the student's health.
15. "K‑3" means kindergarten programs and grades one through three.
16. "K‑3 Reading" means reading programs for pupils in kindergarten programs and grades one, two and three.
17. "MD‑R, A‑R and SID‑R" means resource programs for pupils with multiple disabilities, autism and severe intellectual disability.
18. "MD‑SC, A‑SC and SID-SC" means self‑contained programs for pupils with multiple disabilities, autism and severe intellectual disability.
19. "MD‑SSI" means a program for pupils with multiple disabilities with severe sensory impairment.
20. "MOID" means programs for pupils with moderate intellectual disability.
21. "OI‑R" means a resource program for pupils with orthopedic impairments.
22. "OI‑SC" means a self‑contained program for pupils with orthopedic impairments.
23. "PSD" means preschool programs for children with disabilities as provided in section 15‑771.
24. "P‑SD" means programs for children who meet the definition of preschool severe delay as provided in section 15‑771.
25. "Qualifying tax rate" means the qualifying tax rate specified in section 15‑971 applied to the assessed valuation used for primary property taxes.
26. "Small isolated school district" means a school district that meets all of the following:
(a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.
(b) Contains no school that is fewer than thirty miles by the most reasonable route from another school, or, if road conditions and terrain make the driving slow or hazardous, fifteen miles from another school that teaches one or more of the same grades and is operated by another school district in this state.
(c) Is designated as a small isolated school district by the superintendent of public instruction.
27. "Small school district" means a school district that meets all of the following:
(a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.
(b) Contains at least one school that is fewer than thirty miles by the most reasonable route from another school that teaches one or more of the same grades and is operated by another school district in this state.
(c) Is designated as a small school district by the superintendent of public instruction.
28. "Transportation revenue control limit" means the transportation revenue control limit computed as prescribed in section 15‑946.
29. "Transportation support level" means the support level for pupil transportation operating expenses as provided in section 15‑945.
30. "VI" means programs for pupils with visual impairments.
31. "Voc. Ed." means career and technical education and vocational education programs, as defined in section 15‑781.
Sec. 8. Section 15-902.03, Arizona Revised Statutes, is amended to read:
15-902.03. Procedures for determining average daily membership
A. The department of education shall compute recompute and aggregate average daily membership for the current previous fiscal year no later than April 15 August 30, and shall not further aggregate student data after April 15 for the current year. The department shall inform school districts and charter schools of their final average daily membership counts no later than April 22 of the current year September 15. School districts shall use these student counts to determine the average daily membership for the budget year. No later than November 1 of each year, state AID CALCULATIONS FOR ALL SCHOOL DISTRICTS AND CHARTER SCHOOLS FOR THE PREVIOUS FISCAL YEAR must BE FINALIZED AND the BUDGET LIMITS FOR SCHOOL DISTRICTS must BE ADJUSTED. Any future adjustments in student counts, if discovered by the school district or charter school after April 15, shall be made pursuant to section 15‑915. This subsection does not apply to Arizona online instruction.
B. Notwithstanding subsection A of this section, school districts may continue to make budget adjustments pursuant to section 15‑905, make corrections pursuant to section 15‑915 and use the adjustment for growth in student count pursuant to section 15-948.
Sec. 9. Section 15-923, Arizona Revised Statutes, is amended to read:
15-923. Contracts for transportation
A. As an alternative to maintaining and operating a transportation program or in conjunction with a transportation program, a school district may, if it is found to be economically advantageous, contract for transportation. Contracts may be with another political subdivision, a common or contract carrier or a private party.
B. In addition to other powers and duties prescribed by title 11, chapter 2, article 4, any board of supervisors may at the request of any or all of the governing boards of the school districts within the county provide necessary student transportation. If the board of supervisors and the governing board or boards of such school districts mutually agree that such an arrangement is economically advantageous, the governing board of the school district is authorized to sell or lease its bus or buses to the board of supervisors for such purposes. Agreement between the parties shall be by written contract.
C. In no event shall An eligible student who is transported part by contract and part by school district transportation facilities may not be counted as more than one eligible student.
D. MILES DRIVEN TO TRANSPORT ELIGIBLE STUDENTS may NOT BE REPORTED AS DAILY ROUTE MILES BY MORE THAN ONE SCHOOL DISTRICT.
D. E. Each school district shall submit electronically to the department of education the routes contracted, the contractor contract information, the number of eligible students transported by each contractor and any additional information requested by the department of education.
Sec. 10. Section 15-941, Arizona Revised Statutes, is amended to read:
15-941. Teacher experience index; computation; definition
A. The teacher experience index for each school district shall be computed as follows:
1. For the school district:
Number of FTE
years of
experience of
Number of years Number of FTE certified
of experience certified teachers teachers___
1 x ____ = ____
2 x ____ = ____
3 x ____ = ____
4 x ____ = ____
5 x ____ = ____
6 x ____ = ____
7 x ____ = ____
8 x ____ = ____
9 x ____ = ____
10 x ____ = ____
11 x ____ = ____
12 x ____ = ____
13 x ____ = ____
14 x ____ = ____
15 (or more) x ____ = ____
Total
A B
2. Divide total B by total A to determine the average number of FTE years of experience of FTE certified teachers in the school district.
3. For the state:
Number of FTE
years of
experience of
Number of years Number of FTE certified
of experience certified teachers teachers___
1 x ____ = ____
2 x ____ = ____
3 x ____ = ____
4 x ____ = ____
5 x ____ = ____
6 x ____ = ____
7 x ____ = ____
8 x ____ = ____
9 x ____ = ____
10 x ____ = ____
11 x ____ = ____
12 x ____ = ____
13 x ____ = ____
14 x ____ = ____
15 (or more) x ____ = ____
Total
C D
4. Divide total D by total C to determine the average number of FTE years of experience of FTE certified teachers in the state.
5. Subtract the quotient obtained in paragraph 4 from the quotient obtained in paragraph 2 and multiply the remainder by 0.0225.
6. Add 1.00 to the product obtained in paragraph 5.
B. Librarians, guidance counselors, curriculum coordinators and other personnel who do not conduct regularly scheduled classes shall not be included as certified teachers and shall be coded separately from certified teachers in the uniform system of financial records.
C. Each school district shall on or before October 15 submit to the superintendent of public instruction in electronic format the data prescribed in subsection A, paragraphs 1 and 2 of this section for the current year. The superintendent of public instruction shall use the data to compute the teacher experience index of each school district for the budget year.
D. The superintendent of public instruction shall on or before March 15 February 1 shall notify each school district of its preliminary teacher experience index for the budget year. Between March 15 February 1 and April 15 March 1, a school district may submit corrections to data that it submitted pursuant to subsection C of this section and the superintendent of public instruction on or before April March 15 shall recompute the teacher experience index for the district all school districts for the budget year using the corrected data. The teacher experience index for a school district that does not submit data corrections between March 15 and April 15 shall be the teacher experience index computed for the district by the superintendent of public instruction on or before March 15. A school district that submits data corrections pursuant to this subsection shall submit a letter explaining the need for the corrections to the superintendent of public instruction and the chairman of the joint legislative budget committee. The teacher experience index for the budget year shall not be recalculated after April March 15 unless the superintendent of public instruction determines that the school district has submitted data resulting in an overstatement of the teacher experience index for the budget year.
E. For the purposes of this section, "number of years of experience" means the number of years of classroom instruction conducted by a certified teacher in the school district in which the certified teacher is currently employed, including the number of years of experience of the certified teacher granted by the school district for the certified teacher on the district's salary schedule for experience outside of the school district.
Sec. 11. Section 15-946, Arizona Revised Statutes, is amended to read:
15-946. Transportation revenue control limit
A. The transportation revenue control limit for each school district for the fiscal years 1985‑1986, 1986‑1987 and 1987‑1988 is computed as follows:
1. Determine the adopted operational expenditure budget for pupil transportation for the fiscal year 1984‑1985 effective January 1, 1985.
2. Determine the transportation revenue control limit for the school district for the fiscal year 1984‑1985 as provided in this section before April 18, 1985.
3. If the school district's transportation revenue control limit for the fiscal year 1984‑1985 as provided in paragraph 2 of this subsection is equal to or greater than the amount determined in paragraph 1 of this subsection, the transportation revenue control limit for the fiscal year 1985‑1986 is the change in the transportation support level from the fiscal year 1984‑1985 to the fiscal year 1985‑1986 plus the transportation revenue control limit for the fiscal year 1984‑1985 as provided in paragraph 2 of this subsection. For the fiscal years 1986‑1987 and 1987‑1988 the transportation revenue control limit is the transportation revenue control limit for the current year plus the change in the transportation support level for the current year to the budget year.
4. If the school district's transportation revenue control limit for the fiscal year 1984‑1985 as provided in paragraph 2 of this subsection is less than the amount determined in paragraph 1 of this subsection, the transportation revenue control limit for the fiscal year 1985‑1986 is the sum of the following:
(a) The transportation revenue control limit for the school district for the fiscal year 1984‑1985 as provided in paragraph 2 of this subsection.
(b) The change in the transportation support level from the fiscal year 1984‑1985 to the fiscal year 1985‑1986.
(c) One‑third of the amount obtained by subtracting the transportation revenue control limit for fiscal year 1984‑1985 as provided in paragraph 2 of this subsection from the amount determined in paragraph 1 of this subsection.
5. If the transportation revenue control limit of the school district for the fiscal year 1984‑1985 as provided in paragraph 2 of this subsection is less than the amount determined in paragraph 1 of this subsection, the transportation revenue control limit for the fiscal years 1986‑1987 and 1987‑1988 is the sum of the following:
(a) The transportation revenue control limit for the current year.
(b) The change in the transportation support level from the current year to the budget year.
(c) One‑third of the amount obtained by subtracting the transportation revenue control limit for the fiscal year 1984‑1985 as provided in paragraph 2 of this subsection from the amount determined in paragraph 1 of this subsection.
B. The transportation revenue control limit for each school district for the fiscal year 1988‑1989 and each year thereafter shall be the transportation revenue control limit for the current year plus the increase in the transportation support level from the current year to the budget year, except that for fiscal year 2006‑2007 and for each fiscal year thereafter, the transportation revenue control limit shall not increase if the transportation revenue control limit is more than one hundred twenty per cent of the transportation support level. For a school district that sponsors a charter school, its transportation revenue control limit for the budget year shall be calculated as follows:
1. Calculate separately, as prescribed by the department of education, the total transportation support level for the current year for all charter schools under the district's sponsorship in the current year.
2. Calculate separately, as prescribed by the department of education, the total transportation support level for the budget year for all charter schools under the district's sponsorship in the budget year.
3. Subtract the amount determined in paragraph 2 of this subsection from the amount determined in paragraph 1 of this subsection. If the result is zero or less, use zero in paragraph 4 of this subsection.
4. Subtract the amount determined in paragraph 3 of this subsection from the district's transportation revenue control limit for the current year. This is the adjusted transportation revenue control limit for the current year.
5. The transportation revenue control limit for the budget year is the adjusted transportation revenue control limit for the current year determined in paragraph 4 of this subsection plus the increase in the transportation support level from the current year to the budget year.
C. Notwithstanding subsection B of this section, if the transportation support level of a school district exceeds the transportation revenue control limit in any budget year, the transportation revenue control limit shall be adjusted in that budget year and every budget year thereafter to equal the transportation support level.
Sec. 12. Section 15-980, Arizona Revised Statutes, is amended to read:
15-980. Uncollected property tax; property tax loss; supplemental state aid
A. a school district is eligible for supplemental state aid pursuant to this section if a county treasurer certifies to a school district after January 1 that, in the treasurer’s reasonable belief, more than twenty per cent of the primary property tax revenues that the school district is entitled by law to receive pursuant to section 42‑18052 will not be remitted to the district due to one of the following circumstances:
1. Property tax delinquencies, the district is eligible for supplemental state aid pursuant to this section.
2. A loss of property tax revenue resulting from a decrease in assessed valuation due to a natural disaster such as fire or flood.
B. On receiving a certificate pursuant to subsection A of this section, the school district may apply to the department of education for supplemental state aid. The application shall include the county treasurer's certified estimate of the total amount of uncollected primary property taxes or the amount of lost property tax revenue for the school district for the tax year payable in the current fiscal year.
C. Within forty‑five days after receiving a complete and correct application, the state board of education shall pay to the school district from amounts appropriated for state aid the amount determined in subsection B of this section. The department of education shall notify the county treasurer and the county school superintendent of the amount and the date of the payment of the supplemental state aid. Supplemental state aid paid under this section shall be excluded from the calculation made pursuant to section 15‑973, subsection C.
D. The superintendent of a school district that receives supplemental state aid due to delinquent property taxes pursuant to subsection a, paragraph 1 of this section shall report to the department of education between May 5 and May 25 the actual amount of primary property taxes that were was not collected and remitted to the district during the current fiscal year, based on information from the county treasurer. If the amount of supplemental state aid paid pursuant to subsection C of this section exceeds the actual amount of the uncollected primary property taxes that the district is entitled to receive, the state board of education shall deduct the difference between the amount of supplemental state aid paid and the amount of the uncollected primary property taxes from the June 15 and, if necessary, subsequent apportionments of state aid pursuant to section 15‑973, subsection B.
E. Beginning on June 1 after the payment of supplemental state aid, the county school superintendent shall report quarterly to the department of education the amount of any payments of delinquent primary property taxes received by the district during the previous quarter with respect to a tax year for which the supplemental state aid was paid and not previously deducted from state aid pursuant to subsection D of this section. The department shall deduct the amount reported from the next apportionment of state aid to the district pursuant to section 15‑973, subsection B until the supplemental state aid is repaid. If the district does not receive any apportionment pursuant to section 15‑973, subsection B, the department shall direct the school district superintendent to pay that amount to the state treasurer for deposit in the state general fund.
f. a school district that receives supplemental state aid due to loss of assessed valuation pursuant to subsection a, paragraph 2 of this section may receive supplemental state aid for up to three fiscal years. the amount of supplemental state aid shall be reduced each year by one-third and any increased property tax revenue due to higher assessed valuation.
Sec. 13. Retroactivity
This act applies retroactively to from and after June 30, 2014.
