Bill Text: AZ SB1506 | 2021 | Fifty-fifth Legislature 1st Regular | Introduced


Bill Title: Community colleges; districts; workforce development

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-02 - Senate read second time [SB1506 Detail]

Download: Arizona-2021-SB1506-Introduced.html

 

 

 

REFERENCE TITLE: community colleges; districts; workforce development

 

 

 

 

State of Arizona

Senate

Fifty-fifth Legislature

First Regular Session

2021

 

SB 1506

 

Introduced by

Senator Gabaldon

 

 

AN ACT

 

amending sections 15-1409 and 15-1472, Arizona Revised Statutes; relating to community colleges.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1. Section 15-1409, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1409. Community college tuition financing districts; formation; powers and duties; issuance and sale of bonds for capital outlay

A. A community college tuition financing district shall contract with an existing community college district to provide instructional and student services within the community college tuition financing district.

B. The minimum assessed valuation and population requirements prescribed in section 15-1402 do not apply to community college tuition financing districts.

C. A community college tuition financing district shall be formed in the same manner prescribed in sections 15-1403 and 15-1404, except that the county board of supervisors shall serve as the governing board of the community college tuition financing district and the county board of supervisors by majority vote may adopt a resolution to submit the question of the formation of a community college tuition financing district and the approval of a proposed tax rate to fund the community college tuition financing district directly to the qualified electors of the county at a special or general election called for that purpose as prescribed in section 16-204 and title 35, chapter 3, article 3. The resolution adopted by the county board of supervisors shall include a statement that the primary property tax levy limit for the community college tuition financing district shall be no not less than the levy limit of the most recently formed community college district in this state.

D. Except as provided in this section, a county board of supervisors has the same powers and duties specified in section 15-1444 for community college districts.

E. A community college tuition financing district shall not award degrees, certificates or diplomas.

F. A community college tuition financing district is not eligible to receive equalization aid pursuant to section 15-1468 or state contribution for capital outlay for initial or additional campuses pursuant to section 15-1463.

G. The state aid eligibility requirements prescribed in section 15-1466, subsection E, paragraphs 1 and 2 do not apply to community college tuition financing districts.

H. Notwithstanding any other law, the same student shall not be counted twice as a full-time equivalent student in both a community college tuition financing district and a community college district. Notwithstanding any other law, beginning with the fiscal year after the year in which the community college tuition financing district is formed and has established its primary tax rate, a district that provides services in a community college tuition financing district pursuant to section 15-1470 shall no longer count these students in the district's full-time equivalent student count.

I. If a community college tuition financing district is converted into a community college district by the formation of a community college district pursuant to section 15-1402 or 15-1402.01, the community college tuition financing district is dissolved and any equipment, property, personnel, liabilities and assets are transferred to the community college district.

J. If a community college tuition financing district is formed in a county that provides reimbursement for the attendance of nonresident state students pursuant to section 15-1469, that county shall continue to provide reimbursement payments to community college districts as set forth in section 15-1469 until the fiscal year in which a qualifying levy is adopted and budgeted in support of the community college tuition financing district by the county board of supervisors. The total reimbursement payments due to other community college districts in any fiscal year pursuant to section 15-1469 shall be reduced by the amount of any nonqualifying levy expended in the prior fiscal year.  This reduction shall be shared by each community college district that receives a reimbursement payment from the county based on that community college district's proportionate number of full-time equivalent students from the county where the community college tuition financing district is located.  For the purposes of this subsection:

1. "Nonqualifying levy" means a levy that is adopted to support the community college tuition financing district and that is less than the amount of a qualifying levy.

2. "Qualifying levy" means a levy that is at least equal to the sum of the reimbursement payments and the amount of the community college services provided in the fiscal year immediately before the year that a levy was first adopted to support the operations of the community college tuition financing district.

K. The board of supervisors of a county that has formed a community college tuition financing district by majority vote may enter into an intergovernmental agreement to loan monies to the community college tuition financing district in an amount that does not exceed two hundred thousand dollars $200,000. Any loan pursuant to this subsection shall be repaid from the next scheduled collection of property taxes to fund the community college tuition financing district.  The annual interest charges on any loan pursuant to this subsection shall not exceed five percent.

L. A community college tuition financing district may issue bonds for capital outlay purposes in the same manner prescribed in section 15-1465 for community college districts.  The county board of supervisors is solely responsible for determining the encumbrance and approval of the expenditure of the proceeds of the bonds issued pursuant to this subsection and shall not delegate or transfer this authority to any other entity.

M. Notwithstanding any other law, a provisional community college district that began operations before January 1, 2015:

1. May continue to operate as a provisional community college district. The governing board of a provisional community college district that began operations before January 1, 2015 shall continue to be elected in the same manner prescribed in section 15-1441.

2. Is not eligible to receive monies pursuant to section 15-784 or section 15-1472, subsection D, paragraph 2, subdivision (a).

3. Is not eligible for equalization aid pursuant to section 15-1468.

4. Is not a board as defined in section 15-1481.

5. Unless otherwise specified, is a community college district for the purposes of section 42-5029 or 42-5029.02.

6. Is not subject to section 42-17056. END_STATUTE

Sec. 2. Section 15-1472, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1472. Community college districts; workforce development accounts; reports

A. Each community college district shall establish a separate workforce development account to receive only tax revenues authorized pursuant to section 42-5029, subsection E, paragraph 3 and section 42-5029.02, subsection A, paragraph 3. Each community college district board shall approve the expenditure of these monies in accordance with section 15-1461 and consistent with subsection B of this section.

B. Monies received pursuant to subsection A of this section shall be expended for workforce development and job training purposes. These expenditures may include:

1. Partnerships with businesses and educational institutions.

2. Additional faculty for improved and expanded classroom instruction and course offerings.

3. Technology, equipment and technology infrastructure for advanced teaching and learning in classrooms or laboratories.

4. Student services such as assessment, advisement and counseling for new and expanded job opportunities.

5. The purchase, lease or lease-purchase of real property, for new construction, remodeling or repair of buildings or facilities on real property.

C. The state treasurer shall transfer monies under this section into each district's workforce development account by the fifteenth day of each month. The state treasurer shall also allocate and distribute any pooled interest earnings earned from revenues authorized in section 42-5029, subsection E, paragraph 3 and section 42-5029.02, subsection A, paragraph 3 to each district in accordance with the method prescribed in subsection D, paragraph 2 of this section.

D. Revenues authorized for community college districts in section 42-5029, subsection E, paragraph 3 and section 42-5029.02, subsection A, paragraph 3 shall be distributed by the this state in the following manner:

1. For thirteen fiscal years beginning in fiscal year 2001-2002, the state treasurer shall allocate one million dollars $1,000,000 per fiscal year for the purpose of bringing this state into compliance with the matching capital requirements prescribed in section 15-1463. The state treasurer shall distribute the monies authorized in this subsection to each district in the order in which each campus qualified for funding pursuant to section 15-1463.

2. After the monies have been paid each year to the eligible districts pursuant to paragraph 1 of this subsection, the state treasurer shall distribute monies from the workforce development fund to each community college district in the following manner:

(a) Each district shall receive the sum of two hundred thousand dollars $200,000.  This subdivision does not apply to a community college tuition financing district established pursuant to section 15-1409, but this subdivision does apply to a provisional community college district authorized under section 15-1409, subsection M.

(b) After each district has received the payments prescribed in subdivision (a) of this paragraph, the remainder of monies in the fund shall be distributed to each district according to each district's full-time equivalent student enrollment percentage of the total statewide audited full-time equivalent student enrollment in the preceding fiscal year prescribed in section 15-1466.01.  The percentage distribution under this subdivision shall be adjusted annually on October 1 of each year.

E. Revenues received by community college districts shall not be used by the legislature to supplant or reduce any state aid authorized in this chapter or supplant any proceeds from the sale of bonds authorized in this article and article 5 of this chapter.

F.  Monies received under this section shall not be considered to be local revenues for the purposes of article IX, section 21, Constitution of Arizona.

G. Each community college district or community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation shall submit a report once every two years of its workforce development plan activities and the expenditures authorized in this section to the governor, president of the senate, speaker of the house of representatives, joint legislative budget committee and Arizona commerce authority by December 1 of every even-numbered year.  The report shall include the purpose and goals for which the workforce development monies were expended by each district or community college together with a general accounting of the expenditures authorized in subsection B of this section. A copy of the final report shall also be provided to the secretary of state. For the purposes of this subsection, "qualifying Indian tribe" has the same meaning prescribed in section 42-5031.01. END_STATUTE

Sec. 3. Retroactivity

This act applies retroactively to from and after June 30, 2021.

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