Page 1,
between lines 29 and 30, insert:
"Sec. 2. Section
15-119, Arizona Revised Statutes, is amended to read:
START_STATUTE15-119. Vacant
and partially used buildings; list; sale or lease; equipment; definitions
A. The
division of school facilities board, in
conjunction with within the department of
administration, shall annually publish a list of
vacant buildings and partially used buildings that are owned by this state or
by school districts in this state and that may be suitable for the operation of
a school. The division of school facilities board shall make the list publicly available on the website of
the division of school facilities board
and on request to applicants for charter schools, to applicants applying to the division of school facilities board for
additional space and to existing district and charter schools. The
list shall include the address of each building, a short description of the
building, the name of the owner of the building and any other pertinent
information related to the vacancy and capacity of the building. The division of school facilities board shall
annually submit the list to the governor, the president of the senate and the
speaker of the house of representatives and provide a copy of the list to the
secretary of state and the state board for charter schools.
B. If
a school district decides to sell or lease a vacant building or partially used
building, the school district may not prohibit a charter school or a private
school from negotiating to buy or lease the property in the same manner as other
potential buyers or lessees. A school district may not accept an
offer for the sale or lease of the vacant building or partially used building
from a potential buyer or lessee that is less than an offer from a charter
school or private school. This section does not require the owner of
a building on the list to sell or lease the building or a portion of the
building to a charter school, to any other school or to any other prospective
buyer or tenant, except that the owner of a building on the list may not
withdraw the property from sale or lease solely because a charter school or
private school is the highest bidder. At the conclusion of a lease
for an existing tenant that is a public school or that is providing services to
public school students, the lease may be terminated, renewed according to the
terms of the existing agreement, or renewed with a negotiated
increase. The building owner must provide the rationale for a
proposed increase to the lessee, which may include considerations for the
percentage of revenue that should be dedicated to educational facilities,
inflators related to student enrollment increases or the annual GDP price
deflator as defined in section 41-563, or expenses for building and
parking lot maintenance and upgrades.
C. A
school district may sell used equipment to a charter school or private school
before the school district attempts to sell or dispose of the equipment by
other means.
D. Buildings
that are used for career and technical education, special education services, preschool
programs, schools that have been open for less fewer than five years or magnet schools are not considered
partially used buildings for the purposes of this section, except that these exemptions this exemption may not be
applied to more than twenty-five percent of a district's school
buildings.
E. For
the purposes of this section:
1. "Partially
used building" means a building with at least four thousand five hundred
square feet of contiguous, unused space.
2. "Vacant
building" means a building that has been vacant and unused for at least
two years. END_STATUTE
Sec. 3. Section
15-181, Arizona Revised Statutes, is amended to read:
START_STATUTE15-181. Charter
schools; purpose; scope
A. Charter
schools may be established pursuant to this article to provide a learning
environment that will improve pupil achievement. Charter schools provide
additional academic choices for parents and pupils. Charter schools
may consist of new schools or all or any portion of an existing
school. Charter schools are public schools that serve as
alternatives to traditional public schools and charter schools are not subject
to the requirements of article XI, section 1, Constitution of Arizona, or title 41, chapter 16 of this title 56.
B. Charter
schools shall comply with all provisions of this article in order to receive
state funding as prescribed in section 15-185." END_STATUTE
Renumber to
conform
Page 7, line
9, strike "executive"; strike "board" insert "division within the department of administration"
Line 18,
strike "executive"
Line 19,
strike the first "board" insert "DIVISION within
the department of administration"
Page 10,
strike line 43, insert "section 15-550, subsection D from
certification pursuant to this title"
Page 11,
strike line 4, insert "subsection C, paragraph 9 or section 15-550,
subsection E from"
Page 13,
between lines 41 and 42, insert:
"Sec. 6. Section
15-213.01, Arizona Revised Statutes, is amended to read:
START_STATUTE15-213.01. Procurement
practices; guaranteed energy cost savings contracts; definitions
A. Notwithstanding
section 15-213, subsection A, a school district may contract for the
procurement of a guaranteed energy cost savings contract with a qualified
provider through a competitive sealed proposal process as provided by the
procurement practices adopted by the state board of education.
B. A
school district may enter into a guaranteed energy cost savings contract with a
qualified provider if it determines that the energy savings project pays for
itself within the expected life, according to the manufacturer's equipment
standards, of the energy cost savings measures implemented, the term of the
financial agreement or twenty-five years, whichever is shortest, if the
recommendations in the proposal are followed. The school district
shall retain the cost savings achieved by a guaranteed energy cost savings
contract, and these cost savings may be used to pay for the contract and
project implementation.
C. The
school district shall use objective criteria in selecting the qualified
provider, including the cost of the contract, the energy cost savings, the net
projected energy savings, the quality of the technical approach, the quality of
the project management plan, the financial solvency of the qualified provider
and the experience of the qualified provider with projects of similar size and
scope. The school district shall set forth each criterion with its
respective numerical weighting in the request for proposal.
D. In
selecting a contractor to perform any construction work related to performing
the guaranteed energy cost savings contract, the qualified provider may develop
and use a prequalification process for contractors. These
prequalifications may require the contractor to demonstrate that the contractor
is adequately bonded to perform the work and that the contractor has not failed
to perform on a prior job.
E. A
study shall be performed by the selected qualified provider in order to
establish the exact scope of the guaranteed energy cost savings contract, the
fixed cost savings guarantee amount and the methodology for determining actual
savings. This report shall be reviewed and approved by the school
district before the actual installation of any equipment. The
qualified provider shall transmit a copy of the approved study to the division of school facilities board within the department of administration and the governor's
office of energy policy.
F. The
guaranteed energy cost savings contract shall require that, in determining
whether the projected energy savings calculations have been met, the energy
savings shall be computed by comparing the energy baseline before installation
or implementation of the energy cost savings measures with the energy consumed
after installation or implementation of the energy cost savings
measures. The qualified provider and the school district may agree
to make modifications to the energy baseline only for any of the following:
1. Changes
in utility rates.
2. Changes
in the number of days in the utility billing cycle.
3. Changes
in the square footage of the facility.
4. Changes
in the operational schedule of the facility.
5. Changes
in facility temperature.
6. Significant
changes in the weather.
7. Significant
changes in the amount of equipment or lighting used in the facility.
8. Significant
changes in the nature or intensity of energy use, such as the change of
classroom space to laboratory space.
G. The
information to develop the energy baseline shall be derived from historical
energy costs or actual energy measurements or shall be calculated from energy
measurements at the facility where energy cost savings measures are to be
installed or implemented. The baseline shall be established before
the installation or implementation of energy cost savings measures.
H. At
the qualified provider's expense, the proposal shall include an independent
third-party validation of cost savings calculations associated with each
proposed energy cost savings measure by a licensed, registered professional
engineer, with credentials from the national association of energy engineers,
who has demonstrated experience in energy analysis. The school
district must approve the selection of the credentialed engineer.
I. A
school district, or two or more school districts, may enter into a financing
agreement with a qualified provider or the financial institution, trustee or
paying agent for the purchase and installation or implementation of energy cost
savings measures. The guaranteed energy cost savings contract may
provide for payments over a period of not more than the expected life, according
to the manufacturer's equipment standards, of the energy cost savings measures
implemented, the term of the financial agreement or twenty-five years,
whichever is shortest. The contract shall provide that all payments,
except obligations on termination of the contract before its expiration, shall
be made pursuant to the terms of the financing agreement. If a
school district purchases the energy cost savings measure, the qualified
provider shall guarantee that the energy cost savings meet or exceed the school
district's total cost of the energy savings project purchase.
J. The
guaranteed energy cost savings contract shall include a written guarantee of
the qualified provider that the energy savings will meet or exceed the costs of
the energy cost savings measures over the expected life, according to the
manufacturer's equipment standards, of the energy cost savings measures
implemented, the term of the financial agreement or twenty-five years,
whichever is shortest. The qualified provider shall:
1. For
the term of the guaranteed energy cost savings contract, prepare a measurement
and verification report on an annual basis in addition to an annual
reconciliation of savings.
2. Reimburse
the school district for any shortfall of guaranteed energy cost savings on an
annual basis.
3. Use
the international performance and measurement and verification protocol
standards or the federal energy management program standards to validate the
savings guarantee.
K. The
school district may obtain any required financing as part of the original
competitive sealed proposal process from the qualified provider or a
third-party financing institution.
L. A
qualified provider that is awarded the contract shall give a sufficient bond to
the school district for its faithful performance of the equipment installment.
M. The
qualified provider is required to make public the information in the
subcontractor's bids only if the qualified provider is awarded the guaranteed
energy cost savings contract by the school district.
N. For
all projects carried out under this section, the district shall report to the
governor's office of energy policy:
1. The
name of the project.
2. The
name of the qualified provider.
3. The
total cost of the project.
4. The
expected energy cost savings and relevant escalators.
5. The
agreed-on baseline in the measurement and verification agreement in both
kilowatt hours and dollars.
O. This
section does not apply to the construction of new buildings.
P. A
school district may use a simplified energy performance contract for projects
that are less than five hundred thousand dollars $500,000. Simplified energy performance contracts
are not required to include an energy savings guarantee and shall comply with
all requirements in this section except for the requirements that are
specifically related to the energy savings guarantee and the measurement and
verification of the guaranteed savings.
Q. For
the purposes of this section:
1. "Construction"
means the process of building, altering, repairing, improving or demolishing
any school district structure or building, or other public improvements of any
kind to any school district real property. Construction does not
include the routine operation, routine repair or routine maintenance of
existing structures, buildings or real property.
2. "Energy
baseline" means a calculation of the amount of energy used in an existing
facility before the installation or implementation of the energy cost savings
measures.
3. "Energy
cost savings measure" means a training program or facility alteration
designed to reduce energy consumption and may include one or more of the
following, and any related meters or other measuring devices:
(a) Insulating
the building structure or systems in the building.
(b) Storm
windows or doors, caulking or weather stripping, multiglazed windows or door
systems, additional glazing, reductions in glass area, or other window and door
system modifications that reduce energy consumption.
(c) Automated
or computerized energy control systems.
(d) Heating,
ventilating or air conditioning system modifications or replacements, including
geothermal.
(e) Replacing
or modifying lighting fixtures to increase the energy efficiency of the
lighting system without increasing the overall illumination of a facility
unless an increase in illumination is necessary to conform to the applicable
state or local building code for the lighting system after the proposed
modifications are made.
(f) Indoor
air quality improvements to increase air quality that conform to the applicable
state or local building code requirements.
(g) Energy
recovery systems.
(h) Installing
a new or retrofitting an existing day lighting system.
(i) Procurement
of low-cost utility supplies of all types, including electricity, natural
gas, propane and water.
(j) Devices
that reduce water consumption and water costs or that reduce sewer charges.
(k) Rainwater
harvesting systems.
(l) Combined
heat and power systems.
(m) Renewable
and alternative energy projects and renewable energy power service agreements.
(n) Self-generation
systems.
(o) Any
additional building systems and infrastructure that produce energy, or that
provide utility cost savings not specifically mentioned in this paragraph, if
the improvements meet the life-cycle cost requirement and enhance
building system performance or occupant comfort and safety, excluding those
systems that fall under section 15-213.02.
(p) Geothermal.
4. "Guaranteed
energy cost savings contract" means a contract for implementing one or
more energy cost savings measures.
5. "Life-cycle
cost" means the sum of present values of investment costs, capital costs,
installation costs, energy costs, operating costs, maintenance costs and
disposal costs and utility rebates over the life of the project, product or
measure as provided by federal life-cycle cost rules, regulations and
criteria contained in the United States department of energy federal energy
management program "guidance on life-cycle cost analysis"
required by executive order 13423, January 2007.
6. "Qualified
provider" means a person or a business that is experienced in designing,
implementing or installing energy cost savings measures, that has a record of
established projects or measures of similar size and scope, that has
demonstrated technical, operational, financial and managerial capabilities to
design and operate energy cost savings measures and projects and that has the
financial ability to satisfy guarantees for energy cost savings. END_STATUTE
Sec. 7. Section
15-213.03, Arizona Revised Statutes, is amended to read:
START_STATUTE15-213.03. Procurement
practices; guaranteed energy production contracts; definitions
A. Notwithstanding
section 15-213, subsection A, a school district may contract
for the procurement of procure a guaranteed energy
production contract with a qualified provider through a competitive sealed
proposal process as provided by the procurement practices adopted by the state
board of education.
B. The
school district shall use objective criteria in selecting the qualified
provider, including the guaranteed energy price, the guaranteed energy
production, the quality of the technical approach, the quality of the project
management plan, the financial solvency of the qualified provider and the
experience of the qualified provider with projects of similar size and
scope. The school district shall set forth each criterion with its
respective numerical weighting in the request for proposal.
C. In
selecting a contractor to perform any construction work related to performing
the guaranteed energy production contract, the qualified provider may develop
and use a prequalification process for contractors. These
prequalifications may require the contractor to demonstrate that the contractor
is adequately bonded to perform the work and that the contractor has not failed
to perform on a prior job.
D. When
submitting a proposal for the installation of equipment, the qualified provider
shall include information containing the guaranteed energy production
associated with each proposed energy production measure. The school district
shall review and approve this guarantee before the actual installation of any
equipment. The qualified provider shall transmit a copy of the
approved guarantee to the division of school facilities board within the department of administration
and to the governor's office of energy
policy.
E. A
guaranteed energy production contract shall include a guaranteed energy price,
and a written guaranteed energy production as measured on an annual basis over
the expected life of the energy production measures implemented or within
twenty-five years, whichever is shorter. The qualified provider shall:
1. Prepare
a measurement and verification report on an annual basis in addition to an
annual reconciliation of any guaranteed energy production shortfall.
2. Reimburse
the school district for any guaranteed energy production shortfall on an annual
basis by multiplying any energy production shortfall by either the difference
between the guaranteed energy price and the effective utility rate, or an
alternative method as mutually agreed on by the school district and the qualified provider.
F. The
school district may obtain any required financing as part of the original
competitive sealed proposal process from the qualified provider or a
third-party financing institution.
G. A
qualified provider that is awarded the contract shall give a sufficient bond to
the school district for its faithful performance of the equipment installment.
H. The
qualified provider is required to make public information in the
subcontractor's bids only if the school district awards the qualified provider
the guaranteed energy production contract.
I. For
all projects carried out under this section, the district shall report to the
governor's office of energy policy and the division
of school facilities board within
the department of administration:
1. The
name of the project.
2. The
name of the qualified provider.
3. The
total cost of the project.
4. The
expected guaranteed energy production and guaranteed energy price, including
relevant escalators, if applicable, over the term of the guaranteed energy
production contract.
J. For
all projects carried out under this section, the district shall report to the division of school facilities board within the department of administration, by October 15 each
year, the actual energy production and guaranteed energy price.
K. For
the purposes of this section:
1. "Actual
energy production" means the actual amount of energy that flows from the
energy production measure on an annual basis as measured by a meter in kilowatt
hours alternating current.
2. "Construction"
means the process of building, altering, repairing, improving or demolishing
any school district structure or building, or other public improvements of any
kind to any school district real property. Construction does not include the
routine operation, routine repair or routine maintenance of existing
structures, buildings or real property.
3. "Effective
utility rate" means the average price per kilowatt hour that a school
district paid to its utility provider for electricity service to the facility
that is the subject of the guaranteed energy production contract over the
previous twelve months.
4. "Energy
production measure" means renewable and alternative energy projects or
renewable energy power service agreements.
5. "Guaranteed
energy price" means the agreed on price to be charged to the school for
each kilowatt hour alternating current of actual energy production as such may
change on an annual basis as set forth in the guaranteed energy production
contract.
6. "Guaranteed
energy production" means the amount of energy, measured in kilowatt hours
alternating current, that the qualified provider guarantees for each year of
the guaranteed energy production contract.
7. "Guaranteed
energy production contract" means a contract for implementing one or more
energy production measures between one or more qualified providers and a school
district.
8. "Guaranteed
energy production shortfall" means the amount, if any, that the actual
energy production is less than the guaranteed energy production in any given
year.
9. "Qualified
provider" means a person or a business that is experienced in designing,
implementing or installing energy cost savings measures, that has demonstrated
technical, operational, financial and managerial capabilities to design and
operate cost savings measures and projects and that has the financial ability
to satisfy guarantees for guaranteed energy production, financial solvency and
experience for projects of similar size and scope.END_STATUTE"
Renumber to
conform
Page 19,
line 31, after "the" insert "division of";
strike the second "board" insert "within the
department of administration"
Line 33,
after "the" insert "division of";
strike "board" insert "within the department of
administration"
Page 25,
line 28, after "facilities" insert "oversight";
strike "15-2001" insert "41-5701.02"
Line 29,
after "facilities" insert "oversight"
Line 38,
strike "15-2011" insert "41-5711"
Line 40,
after "facilities" insert "oversight"
Page 26,
line 6, after the second "facilities" insert "oversight"
Line 8,
strike "15-2011" insert "41-5711"
Between
lines 11 and 12, insert:
"Sec. 11. Section
15-342, Arizona Revised Statutes, is amended to read:
START_STATUTE15-342. Discretionary
powers
The
governing board may:
1. Expel
pupils for misconduct.
2. Exclude
from grades one through eight children under six years of age.
3. Make
such separation of groups of pupils as it deems advisable.
4. Maintain
such special schools during vacation as deemed necessary for the benefit of the
pupils of the school district.
5. Permit Allow a superintendent or principal
or representatives of the superintendent or principal to travel for a school
purpose, as determined by a majority vote of the board. The board
may permit allow members and members-elect
of the board to travel within or without the school district for a school
purpose and receive reimbursement. Any expenditure for travel and
subsistence pursuant to this paragraph shall be as provided in title 38,
chapter 4, article 2. The designated post of duty referred to in
section 38-621 shall be construed, for school district governing board
members, to be the member's actual place of residence, as opposed to the school
district office or the school district boundaries. Such expenditures shall be a
charge against the budgeted school district funds. The governing
board of a school district shall prescribe procedures and amounts for
reimbursement of lodging and subsistence expenses. Reimbursement amounts shall
not exceed the maximum amounts established pursuant to section 38-624,
subsection C.
6. Construct
or provide in rural districts housing facilities for teachers and other school
employees that the board determines are necessary for the
operation of to operate the school.
7. Sell
or lease to the state, a county, a city, another school district or a tribal
government agency any school property required for a public purpose, provided if the sale or lease of the
property will not affect the normal operations of a school within the school
district.
8. Annually
budget and expend funds spend monies for
membership in an association of school districts within this state.
9. Enter
into leases or lease-purchase agreements for school buildings or grounds,
or both, as lessor or as lessee, for periods of less than twenty years subject
to voter approval for construction of school buildings as prescribed in section
15-341, subsection A, paragraph 7.
10. Subject
to title 41, chapter 16 of this title 56, sell school sites or enter into leases or lease-purchase
agreements for school buildings and grounds, as lessor or as lessee, for a
period of twenty years or more, but not to exceed ninety-nine years, if
authorized by a vote of the school district electors in an election called by
the governing board as provided in section 15-491, except that authorization
by the school district electors in an election is not required if one of the
following requirements is met:
(a) The
market value of the school property is less than $50,000 or the property is
procured through a renewable energy development agreement, an energy
performance contract, which among other items includes a renewable energy power
service agreement, or a simplified energy performance contract pursuant to
section 15-213.01.
(b) The
buildings and sites are completely funded with monies distributed by the school facilities division within the department of
administration or at the direction of the school facilities oversight board, or its predecessor.
(c) The
transaction involves the sale of improved or unimproved property pursuant to an
agreement with the school facilities oversight board in
which the school district agrees to sell the improved or unimproved property
and transfer the proceeds of the sale to the school facilities oversight
board in exchange for monies from the school facilities oversight
board for the acquisition of a more suitable school site. For
a sale of property acquired by a school district prior to before July 9, 1998, a school district shall transfer to the
school facilities oversight board that portion of the
proceeds that equals the cost of the acquisition of a more suitable school
site. If there are any remaining proceeds after the transfer of monies to the
school facilities oversight board, a school district
shall only use those remaining proceeds for future land purchases approved by
the school facilities oversight board, or for capital
improvements not funded by the school facilities oversight
board for any existing or future facility.
(d) The
transaction involves the sale of improved or unimproved property pursuant to a
formally adopted plan and the school district uses the proceeds of this sale to
purchase other property that will be used for similar purposes as the property
that was originally sold, provided that if the
sale proceeds of the improved or unimproved property are used within two years
after the date of the original sale to purchase the replacement
property. If the sale proceeds of the improved or unimproved
property are not used within two years after the date of the original sale to
purchase replacement property, the sale proceeds shall be used towards
payment of toward paying any outstanding bonded
indebtedness. If any sale proceeds remain after paying for
outstanding bonded indebtedness, or if the district has no outstanding bonded
indebtedness, sale proceeds shall be used to reduce the district's primary tax
levy. A school district shall not use this subdivision unless all of
the following conditions exist:
(i) The
school district is the sole owner of the improved or unimproved property that
the school district intends to sell.
(ii) The
school district did not purchase the improved or unimproved property that the
school district intends to sell with monies that were distributed pursuant to title 41, chapter 16 of this title 56.
(iii) The
transaction does not violate section 15-341, subsection G.
11. Review
the decision of a teacher to promote a pupil to a grade or retain a pupil in a
grade in a common school or to pass or fail a pupil in a course in high
school. The pupil has the burden of proof to overturn the decision
of a teacher to promote, retain, pass or fail the pupil. In order to sustain
the burden of proof, the pupil shall demonstrate to the governing board that
the pupil has mastered the academic standards adopted by the state board of
education pursuant to sections 15-701 and 15-701.01. If the
governing board overturns the decision of a teacher pursuant to this paragraph,
the governing board shall adopt a written finding that the pupil has mastered
the academic standards. Notwithstanding title 38, chapter 3, article
3.1, the governing board shall review the decision of a teacher to promote a
pupil to a grade or retain a pupil in a grade in a common school or to pass or
fail a pupil in a course in high school in executive session unless a parent or
legal guardian of the pupil or the pupil, if emancipated, disagrees that the
review should be conducted in executive session and then the review shall be
conducted in an open meeting. If the review is conducted in executive session,
the board shall notify the teacher of the date, time and place of the review
and shall allow the teacher to be present at the review. If the
teacher is not present at the review, the board shall consult with the teacher
before making its decision. Any request, including the written
request as provided in section 15-341, the written evidence presented at
the review and the written record of the review, including the decision of the
governing board to accept or reject the teacher's decision, shall be retained
by the governing board as part of its permanent records.
12. Provide
transportation or site transportation loading and unloading areas for any child
or children if deemed for the best interest of the district, whether within or
without the district, county or state.
13. Enter
into intergovernmental agreements and contracts with school districts or other
governing bodies as provided in section 11-952. Intergovernmental
agreements and contracts between school districts or between a school district
and other governing bodies as provided in section 11-952 are exempt from
competitive bidding under the procurement rules adopted by the state board of
education pursuant to section 15-213.
14. Include
in the curricula it prescribes for high schools in the school district career
and technical education, vocational education and technology education programs
and career and technical, vocational and technology program improvement
services for the high schools, subject to approval by the state board of education. The
governing board may contract for the provision of career and technical,
vocational and technology education as provided in section 15-789.
15. Suspend
a teacher or administrator from the teacher's or administrator's duties without
pay for a period of time of not to exceed ten school days, if the board
determines that suspension is warranted pursuant to section 15-341,
subsection A, paragraphs paragraph 21
and or 22.
16. Dedicate
school property within an incorporated city or town to such
that city or town or within a county to that county for
use as a public right-of-way if both of the following apply:
(a) Pursuant
to an ordinance adopted by such the city,
town or county, there will be conferred upon on the school district privileges and benefits that may include
benefits related to zoning.
(b) The
dedication will not affect the normal operation of any school within the
district.
17. Enter
into option agreements for the purchase of school sites.
18. Donate
surplus or outdated learning materials, educational equipment and furnishings
to nonprofit community organizations where if
the governing board determines that the anticipated cost of selling the
learning materials, educational equipment or furnishings equals or exceeds the
estimated market value of the materials.
19. Prescribe
policies for the assessment of to assess reasonable
fees for students to use district-provided parking
facilities. The fees are to be applied by the district solely
against costs incurred in operating or securing the parking facilities. Any
policy adopted by the governing board pursuant to this paragraph shall include
a fee waiver provision in appropriate cases of need or economic hardship.
20. Establish
alternative educational education
programs that are consistent with the laws of this state to educate pupils,
including pupils who have been reassigned pursuant to section 15-841,
subsection E or F.
21. Require
a period of silence to be observed at the commencement of the first class of
the day in the schools. If a governing board chooses to require a
period of silence to be observed, the teacher in charge of the room in which
the first class is held shall announce that a period of silence not to exceed
one minute in duration will be observed for meditation, and during that time no
activities shall take place and silence shall be maintained.
22. Require
students to wear uniforms.
23. Exchange
unimproved property or improved property, including school sites, where if the governing board determines
that the improved property is unnecessary for the continued operation of the
school district without requesting authorization by a vote of the school
district electors and if the governing board determines
that the exchange is necessary to protect the health, safety or welfare of
pupils or when if the governing
board determines that the exchange is based on sound business principles for
either:
(a) Unimproved
or improved property of equal or greater value.
(b) Unimproved
property that the owner contracts to improve if the value of the property
ultimately received by the school district is of equal or greater value.
24. For
common and high school pupils, assess reasonable fees for optional
extracurricular activities and programs conducted when the common or high
school is not in session, except that no fees shall not be charged for pupils' access to or use of computers or
related materials. For high school pupils, the governing board may assess
reasonable fees for fine arts and vocational education courses and for optional
services, equipment and materials offered to the pupils beyond those required
to successfully complete the basic requirements of any other course, except
that no fees shall not be charged
for pupils' access to or use of computers or related materials. Fees assessed
pursuant to this paragraph shall be adopted at a public meeting after notice
has been given to all parents of pupils enrolled at schools in the district and
shall not exceed the actual costs of the activities, programs, services,
equipment or materials. The governing board shall authorize
principals to waive the assessment of all or part of a fee assessed pursuant to
this paragraph if it creates an economic hardship for a pupil. For
the purposes of this paragraph, "extracurricular activity" means any
optional, noncredit, educational or recreational activity that supplements the
education program of the school, whether offered before, during or after
regular school hours.
25. Notwithstanding
section 15-341, subsection A, paragraphs 7 and 9, construct school
buildings and purchase or lease school sites, without a vote of the school
district electors, if the buildings and sites are totally funded from one or
more of the following:
(a) Monies
in the unrestricted capital outlay fund, except that the estimated cost shall
not exceed $250,000 for a district that utilizes uses section 15-949.
(b) Monies
distributed from at the direction of
the school facilities oversight board established by
section 15-2001 41-5701.02 or
by the school facilities division within the department of administration
pursuant to title 41, chapter 56.
(c) Monies
specifically donated for the purpose of constructing school buildings.
This
paragraph shall does not be construed to eliminate the requirement for an election to
raise revenues for a capital outlay override pursuant to section 15-481
or a bond election pursuant to section 15-491.
26. Conduct
a background investigation that includes a fingerprint check conducted pursuant
to section 41-1750, subsection G for certificated personnel and personnel
who are not paid employees of the school district, as a condition of
employment. A school district may release the results of a
background check to another school district for employment purposes. The
school district may charge the costs of fingerprint checks to its fingerprinted
employee, except that the school district may not charge the costs of
fingerprint checks for personnel who are not paid employees of the school
district.
27. Unless
otherwise prohibited by law, sell advertising as follows:
(a) Advertisements
shall be age appropriate and not contain promotion of promote any substance that is illegal for minors such as
alcohol, tobacco and drugs or gambling. Advertisements shall comply with the
state sex education policy of abstinence.
(b) Advertising
approved by the governing board for the exterior of school buses may appear
only on the sides of the bus in the following areas:
(i) The
signs shall be below the seat level rub rail and not extend above the bottom of
the side windows.
(ii) The
signs shall be at least three inches from any required lettering, lamp, wheel
well or reflector behind the service door or stop signal arm.
(iii) The
signs shall not extend from the body of the bus so as to allow a handhold or
present a danger to pedestrians.
(iv) The
signs shall not interfere with the operation of any door or window.
(v) The
signs shall not be placed on any emergency doors.
(c) The
school district shall establish an advertisement fund that is composed of
revenues from the sale of advertising. The monies in an
advertisement fund are not subject to reversion.
28. Assess
reasonable damage deposits to pupils in grades seven through twelve for the use of using textbooks, musical
instruments, band uniforms or other equipment required for academic
courses. The governing board shall adopt policies on any damage
deposits assessed pursuant to this paragraph at a public meeting called for
this purpose after providing notice to all parents of pupils in grades seven
through twelve in the school district. Principals of individual schools within
the district may waive the damage deposit requirement for any textbook or other
item if the payment of the damage deposit would create an economic hardship for
the pupil. The school district shall return the full amount of the
damage deposit for any textbook or other item if the pupil returns the textbook
or other item in reasonably good condition within the time period prescribed by
the governing board. For the purposes of this paragraph, "in
reasonably good condition" means the textbook or other item is in the same
or a similar condition as it was when the pupil received it, plus ordinary wear
and tear.
29. Notwithstanding
section 15-1105, expend surplus monies in the civic center school fund
for maintenance and operations or unrestricted capital outlay, if sufficient
monies are available in the fund after meeting the needs of programs
established pursuant to section 15-1105.
30. Notwithstanding
section 15-1143, expend spend surplus
monies in the community school program fund for maintenance and operations or
unrestricted capital outlay, if sufficient monies
are available in the fund after meeting the needs of programs established
pursuant to section 15-1142.
31. Adopt
guidelines for standardization of to
standardize the format of the school report cards required by section 15-746
for schools within the district.
32. Adopt
policies that require parental notification when a law enforcement officer
interviews a pupil on school grounds. Policies adopted pursuant to
this paragraph shall not impede a peace officer from the
performance of performing the peace officer's
duties. If the school district governing board adopts a policy that
requires parental notification:
(a) The
policy may provide reasonable exceptions to the parental notification
requirement.
(b) The
policy shall set forth whether and under what circumstances a parent may be
present when a law enforcement officer interviews the pupil, including
reasonable exceptions to the circumstances under which a parent may be present
when a law enforcement officer interviews the pupil, and shall specify a
reasonable maximum time after a parent is notified that an interview of a pupil
by a law enforcement officer may be delayed to allow the parent to be present.
33. Enter
into voluntary partnerships with any party to finance with funds
monies other than school district funds
monies and cooperatively design school facilities that
comply with the adequacy standards prescribed in section 15-2011
41-5711 and the square footage per pupil
requirements pursuant to section 15-2041 41-5741, subsection D, paragraph 3, subdivision
(b). The design plans and location of any such school facility shall
be submitted to the school facilities oversight board for
approval pursuant to section 15-2041
41-5741, subsection 0. If the school facilities oversight board approves the design plans and location of any
such school facility, the party in partnership with the school district may
cause to be constructed and the district may begin operating the school
facility before monies are distributed from
at the direction of the school facilities oversight board
pursuant to section 15-2041 41-5741. Monies
distributed from the new school facilities fund to a school district in a
partnership with another party to finance and design the school facility shall
be paid to the school district pursuant to section 15-2041 41-5741. The school district shall reimburse
the party in partnership with the school district from the monies paid to the
school district pursuant to section 15-2041 41-5741, in accordance with the voluntary partnership
agreement. Before the school facilities oversight board
distributes directs the distribution of
any monies pursuant to this subsection, the school district shall demonstrate
to the school facilities oversight board that the
facilities to be funded pursuant to section 15-2041 41-5741, subsection O meet the minimum adequacy
standards prescribed in section 15-2011 41-5711. If the cost to construct the school
facility exceeds the amount that the school district receives from the new
school facilities fund, the partnership agreement between the school district
and the other party shall specify that, except as otherwise provided by the
other party, any such excess costs shall be the responsibility of the school
district. The school district governing board shall adopt a
resolution in a public meeting that an analysis has been conducted on the
prospective effects of the decision to operate a new school with existing
monies from the school district's maintenance and operations budget and how
this decision may affect other schools in the school district. If a
school district acquires land by donation at an appropriate school site
approved by the school facilities oversight board and a
school facility is financed and built on the land pursuant to this paragraph,
the school facilities oversight board shall distribute direct the distribution of an
amount equal to twenty percent of the fair market value of the land that can be
used for academic purposes. The school district shall place the
monies in the unrestricted capital outlay fund and increase the unrestricted
capital budget limit by the amount of the monies placed in the
fund. Monies distributed under this paragraph shall be distributed
from the new school facilities fund pursuant to section 15-2041 41-5741. If a school district acquires land
by donation at an appropriate school site approved by the school facilities oversight board and a school facility is financed and built on
the land pursuant to this paragraph, the school district shall not receive
monies from the school facilities board for the donation
of real property pursuant to section 15-2041 41-5741, subsection F. It is unlawful for:
(a) A
county, city or town to require as a condition of any land use approval that a
landowner or landowners that entered into a partnership pursuant to this
paragraph provide any contribution, donation or gift, other than a site
donation, to a school district. This subdivision only applies to the
property in the voluntary partnership agreement pursuant to this paragraph.
(b) A
county, city or town to require as a condition of any land use approval that
the landowner or landowners located within the geographic boundaries of the
school subject to the voluntary partnership pursuant to this paragraph provide
any donation or gift to the school district except as provided in the voluntary
partnership agreement pursuant to this paragraph.
(c) A
community facilities district established pursuant to title 48, chapter 4,
article 6 to be used for reimbursement of financing the construction of a
school pursuant to this paragraph.
(d) A
school district to enter into an agreement pursuant to this paragraph with any
party other than a master planned community party. Any land area consisting of
at least three hundred twenty acres that is the subject of a development
agreement with a county, city or town entered into pursuant to section 9-500.05
or 11-1101 shall be deemed to be a master planned
community. For the purposes of this subdivision, "master
planned community" means a land area consisting of at least three hundred
twenty acres, which may be noncontiguous, that is the subject of a zoning
ordinance approved by the governing body of the county, city or town in which
the land is located that establishes the use of the land area as a planned area
development or district, planned community development or district, planned
unit development or district or other land use category or district that is
recognized in the local ordinance of such county, city or town and that
specifies the use of such land is for a master planned development.
34. Enter
into an intergovernmental agreement with a presiding judge of the juvenile
court to implement a law-related education program as defined in section 15-154. The
presiding judge of the juvenile court may assign juvenile probation officers to
participate in a law-related education program in any school district in the
county. The cost of juvenile probation officers who participate in
the program implemented pursuant to this paragraph shall be funded by the
school district.
35. Offer
to sell outdated learning materials, educational equipment or furnishings at a
posted price commensurate with the value of the items to pupils who are
currently enrolled in that school district before those materials are offered
for public sale.
36. If
the school district is a small school district as defined in section 15-901,
and if permitted allowed by federal
law, opt out of federal grant opportunities if the governing board determines
that the federal requirements impose unduly burdensome reporting requirements.
37. Prescribe
and enforce policies and procedures for the emergency administration of
inhalers by trained employees of the school district and nurses who are under
contract with the school district pursuant to section 15-158.
38. Develop
policies and procedures to allow principals to budget for or assist with
budgeting federal, state and local monies.END_STATUTE"
Renumber to
conform
Page 26,
line 14, strike "final authority" insert
"requirement prohibition"
Line 15,
after the comma strike remainder of line
Strike lines
16 through 18, insert "a county, city, town, school
district governing board or charter school governing body may not require the
use of face coverings by students or staff during school hours and on school
property."
Page 39, between lines 18 and 19, insert:
"Sec. 16. Section
15-481, Arizona Revised Statutes, is amended to read:
START_STATUTE15-481. Override
election; budget increases; informational pamphlet; notice; ballot; effect
A. If
a proposed budget of a school district exceeds the aggregate budget limit for
the budget year, at least ninety days before the proposed election the
governing board shall order an override election to be held on the first
Tuesday following the first Monday in November as prescribed by section 16-204,
subsection F for the purpose of presenting the proposed budget to the qualified
electors of the school district who by a majority of those voting either shall
affirm or reject the budget. At the same time as the order of the
election, the governing board shall publicly declare the deadline for
submitting arguments, as set by the county school superintendent pursuant to
subsection B, paragraph 9 of this section, to be submitted in the informational
pamphlet and shall immediately post the deadline in a prominent location on the
district's website. In addition, the governing board shall prepare
an alternate budget that does not include an increase in the budget of more
than the amount permitted allowed as
provided in section 15-905. If the qualified electors approve
the proposed budget, the governing board of the school district shall follow
the procedures prescribed in section 15-905 for adopting a budget that
includes the authorized increase. If the qualified electors
disapprove the proposed budget, the governing board shall follow the procedures
prescribed in section 15-905 for adopting a budget that does not include
the proposed increase or the portion of the proposed increase that exceeds the
amount authorized by a previously approved budget increase as prescribed in
subsection P of this section.
B. The
county school superintendent shall prepare an informational pamphlet on the
proposed increase in the budget and a sample ballot and, at least forty days prior to before the election, shall
transmit the informational pamphlet and the sample ballot to the governing
board of the school district. The governing board, on receipt of the
informational pamphlet and the ballot, shall mail or distribute the
informational pamphlet and the ballot to the households in which qualified
electors reside within the school district at least thirty-five days prior to before the
election. Any distribution of material concerning the proposed
increase in the budget shall not be conducted by children enrolled in the
school district. The informational pamphlet shall contain the
following information:
1. The
date of the election.
2. The
voter's polling place and the times it is open.
3. The
proposed total increase in the budget that exceeds the amount permitted
pursuant to section 15-905.
4. The
total amount of the current year's budget, the total amount of the proposed
budget and the total amount of the alternate budget.
5. If
the override is for a period of more than one year, a statement indicating the
number of years the proposed increase in the budget would be in effect and the
percentage of the school district's revenue control limit that the district is requesting
for the future years.
6. The
proposed total amount of revenues that will fund the increase in the budget and
the amount that will be obtained from a levy of taxes on the taxable property
within the school district for the first year for which the budget increase was
adopted.
7. The
proposed amount of revenues that will fund the increase in the budget and that
will be obtained from other than a levy of taxes on the taxable property within
the school district for the first year for which the budget increase was
adopted.
8. The
dollar amount and the purpose for which the proposed increase in the budget is
to be expended for the first year for which the budget increase was
adopted. The purpose statement shall only present factual
information in a neutral manner. Advocacy for the expenditures is strictly
limited to the arguments submitted pursuant to paragraph 9 of this subsection.
9. At
least two arguments, if submitted, but no not
more than ten arguments for and two arguments, if submitted, but no not more than ten arguments against the
proposed increase in the budget. The arguments shall be in a form
prescribed by the county school superintendent, and each argument shall not
exceed two hundred words. Arguments for the proposed increase in the
budget shall be provided in writing and signed by the governing
board. The ballot arguments for the proposed increase in the budget
shall be signed as the governing board of the school district without listing
any member's individual name for the arguments for the proposed
increase. If submitted, additional arguments in favor of the
proposed increase in the budget shall be provided in writing and signed by
those in favor. Arguments against the proposed increase in the
budget shall be provided in writing and signed by those in opposition. The
names of persons and entities submitting written arguments shall be included in
the informational pamphlet. The county school superintendent shall review all
factual statements contained in the written arguments and correct any
inaccurate statements of fact. The superintendent shall not review
and correct any portion of the written arguments that are identified as
statements of the author's opinion. The county school superintendent
shall make the written arguments available to the public as provided in title
39, chapter 1, article 2. A deadline for submitting arguments to be
included in the informational pamphlet shall be set by the county school
superintendent.
10. A
statement that the alternate budget shall be adopted by the governing board if
the proposed budget is not adopted by the qualified electors of the school
district.
11. The
current limited property value and the net assessed valuation provided by the
department of revenue, the first year tax rate for the proposed override and
the estimated amount of the secondary property taxes if the proposed budget is
adopted for each of the following:
(a) An
owner-occupied residence whose assessed valuation is the average assessed
valuation of property classified as class three, as prescribed by section 42-12003
for the current year in the school district.
(b) An
owner-occupied residence whose assessed valuation is one-half of
the assessed valuation of the residence in subdivision (a) of this paragraph.
(c) An
owner-occupied residence whose assessed valuation is twice the assessed
valuation of the residence in subdivision (a) of this paragraph.
(d) A
business whose assessed valuation is the average of the assessed valuation of
property classified as class one, as prescribed by section 42-12001,
paragraphs 12 and 13 for the current year in the school district.
12. If
the election is conducted pursuant to subsection L or M of this section, the
following information:
(a) An
executive summary of the school district's most recent capital improvement plan
submitted to the school facilities oversight board.
(b) A
complete list of each proposed capital improvement that will be funded with the
budget increase and a description of the proposed cost of each improvement,
including a separate aggregation of capital improvements for administrative
purposes as defined by the school facilities oversight board.
(c) The
tax rate associated with each of the proposed capital improvements and the
estimated cost of each capital improvement for the owner of a single family
home that is valued at eighty thousand dollars $80,000.
C. For
the purpose of this section, the school district may use its staff, equipment,
materials, buildings or other resources only to distribute the informational
pamphlet at the school district office or at public hearings and to produce
such information as required in subsection B of this section. , provided that nothing in This subsection shall
does not preclude school districts from holding or
participating in any public hearings at which testimony is given by at least
one person for the proposed increase and one person against the proposed
increase. Any written information provided by the district
pertaining to the override election shall include financial information showing
the estimated first year tax rate for the proposed budget override amount.
D. If
any amount of the proposed increase will be funded by a levy of taxes in the
district, the election prescribed in subsection A of this section shall be held
on the first Tuesday following the first Monday in November as prescribed by
section 16-204, subsection F. If the proposed increase will be
fully funded by revenues from other than a levy of taxes, the elections
prescribed in subsection A of this section shall be held on any date prescribed
by section 16-204. The elections shall be conducted as nearly
as practicable in the manner prescribed in article 1 of this chapter, sections
15-422 through 15-424 and section 15-426, relating to special
elections, except that:
1. The
notices required pursuant to section 15-403 shall be posted not less than
twenty-five days before the election.
2. Ballots
shall be counted pursuant to title 16, chapter 4, article 10.
E. If
the election is to exceed the revenue control limit and if the proposed
increase will be fully funded by a levy of taxes on the taxable property within
the school district, the ballot shall contain the words "budget increase,
yes" and "budget increase, no", and the voter shall signify the
voter's desired choice. The ballot shall also contain the amount of
the proposed increase of the proposed budget over the alternate budget, a
statement that the amount of the proposed increase will be based on a
percentage of the school district's revenue control limit in future years, if
applicable, as provided in subsection P of this section and the following
statement:
Any budget
increase authorized by this election shall be entirely funded by a levy of
taxes on the taxable property within this school district for the year for
which adopted and for ____ subsequent years, shall not be realized from monies
furnished by the state and shall not be subject to the limitation on taxes
specified in article IX, section 18, Constitution of Arizona. Based
on the current net assessed valuation used for secondary property tax purposes,
to fund the proposed increase in the school district's budget would require an
estimated tax rate of $______________ dollar
per one hundred dollars $100 of net
assessed valuation used for secondary property tax purposes and is in addition
to the school district's tax rate that will be levied to fund the school
district's revenue control limit allowed by law.
F. If
the election is to exceed the revenue control limit and if the proposed increase
will be fully funded by revenues from other than a levy of taxes on the taxable
property within the school district, the ballot shall contain the words
"budget increase, yes" and "budget increase, no", and the
voter shall signify the voter's desired choice. The ballot shall also contain:
1. The
amount of the proposed increase of the proposed budget over the alternate
budget.
2. A
statement that the amount of the proposed increase will be based on a
percentage of the school district's revenue control limit in future years, if
applicable, as provided in subsection P of this section.
3. The
following statement:
Any budget
increase authorized by this election shall be entirely funded by this school
district with revenues from other than a levy of taxes on the taxable property
within the school district for the year for which adopted and for ______
subsequent years and shall not be realized from monies furnished by the state.
G. Except
as provided in subsection H of this section, the maximum budget increase that
may be requested and authorized as provided in subsection E or F of this
section or the combination of subsections E and F of this section is fifteen
percent of the revenue control limit as provided in section 15-947,
subsection A for the budget year. If a school district requests an override
pursuant to section 15-482 or to continue with a budget override pursuant
to section 15-482 for pupils in kindergarten programs and grades one
through three that was authorized before December 31, 2008, the maximum budget
increase that may be requested and authorized as provided in subsection E or F
of this section or the combination of subsections E and F of this section is
ten percent of the revenue control limit as provided in section 15-947,
subsection A for the budget year.
H. Special
budget override provisions for school districts with a student count of less
than one hundred fifty-four in kindergarten programs and grades one
through eight or with a student count of less than one hundred seventy-six
in grades nine through twelve are as follows:
1. The
maximum budget increase that may be requested and authorized as provided in
subsections E and F of this section is the greater of the amount prescribed in
subsection G of this section or a limit computed as follows:
(a) For
common or unified districts with a student count of less than one hundred fifty-four
in kindergarten programs and grades one through eight, the limit computed as
prescribed in item (i) or (ii) of this subdivision, whichever is appropriate:
(i)
Small
School Support Level Weight Phase Down
Student Student for
Small Isolated Reduction
Count Count Limit School
Districts Base Level Factor
- 125 x 1.358
+ (0.0005 x x $ = $
(500 - Student
Count))
Small
Isolated
Phase
Down Phase Down School District
Base Reduction
Factor Elementary Limit
$150,000 - $
= $
(ii)
Small
School Support Level Weight Phase Down
Student Student for
Small Reduction
Count Count Limit School
Districts Base Level Factor
- 125
x 1.278 + (0.0003 x x $ = $
(500
- Student Count))
Small
Phase
Down Phase Down School District
Base Reduction
Factor Elementary Limit
$150,000 - $ = $
(b) For
unified or union high school districts with a student count of less than one
hundred seventy-six in grades nine through twelve, the limit computed as
prescribed in item (i) or (ii) of this subdivision, whichever is appropriate:
(i)
Small
School Support Level Weight Phase Down
Student Student for
Small Isolated Reduction
Count Count Limit School
Districts Base Level Factor
- 100 x 1.468
+ (0.0005 x x $ = $ __
(500 - Student
Count))
Small
Isolated
Phase
Down Phase Down District
Base Reduction
Factor Secondary Limit
$350,000 - $
= $
(ii)
Small
School Support Level Weight Phase Down
Student Student for
Small Reduction
Count Count Limit School
Districts Base Level_ Factor
- 100
x 1.398 + (0.0004 x x $ = $
(500
- Student Count))
Small
Phase
Down Phase Down School District
Base Reduction
Factor Secondary Limit
$350,000 - $
= $
(c) If
both subdivisions (a) and (b) of this paragraph apply to a unified school
district, its limit for the purposes of this paragraph is the combination of
its elementary limit and its secondary limit.
(d) If
only subdivision (a) or (b) of this paragraph applies to a unified school
district, the district's limit for the purposes of this paragraph is the sum of
the limit computed as provided in subdivision (a) or (b) of this paragraph plus
ten percent of the revenue control limit attributable to those grade levels
that do not meet the eligibility requirements of this
subsection. If a school district budgets monies outside the revenue
control limit pursuant to section 15-949, subsection E, the district's limit for the purposes of this paragraph
is only the ten percent of the revenue control
limit attributable to those grade levels that are not included under section 15-949,
subsection E. For the purposes of
this subdivision, the revenue control limit is separated into elementary
and secondary components based on the weighted student count as provided in
section 15-971, subsection B, paragraph 2, subdivision (a).
2. If
a school district utilizes this subsection to request an override of more than
one year, the ballot shall include an estimate of the amount of the proposed
increase in the future years in place of the statement that the amount of the
proposed increase will be based on a percentage of the school district's
revenue control limit in future years, as prescribed in subsections E and F of
this section.
3. Notwithstanding
subsection P of this section, the maximum period of an override authorized
pursuant to this subsection is five years.
4. Subsection
P, paragraphs 1 and 2 of this section do not apply to overrides authorized
pursuant to this subsection.
I. If
the election is to exceed the revenue control limit as provided in section 15-482
and if the proposed increase will be fully funded by a levy of taxes on the
taxable property within the school district, the ballot shall contain the words
"budget increase, yes" and "budget increase, no", and the
voter shall signify the voter's desired choice. The ballot shall also contain
the amount of the proposed increase of the budget over the alternate budget, a
statement that the amount of the proposed increase will be based on a
percentage of the school district's revenue control limit in future years, if
applicable, as provided in subsection Q of this section, and the following
statement:
Any budget
increase authorized by this election shall be entirely funded by a levy of
taxes on the taxable property within this school district for the year for
which adopted and for _____ subsequent years, shall not be realized from monies
furnished by the state and shall not be subject to the limitation on taxes
specified in article IX, section 18, Constitution of Arizona. Based
on the current net assessed valuation used for secondary property tax purposes,
to fund the proposed increase in the school district's budget that will be
funded by a levy of taxes on the taxable property within this school district
would require an estimated tax rate of $__________ dollar per one hundred dollars $100 of net assessed valuation used for secondary property tax
purposes and is in addition to the school district's tax rate that will be
levied to fund the school district's revenue control limit allowed by law.
J. If
the election is to exceed the revenue control limit as provided in section 15-482
and if the proposed increase will be fully funded by revenues other than a levy
of taxes on the taxable property within the school district, the ballot shall
contain the words "budget increase, yes" and "budget increase,
no", and the voter shall signify the voter's desired choice. The ballot
shall also contain the amount of the proposed increase of the proposed budget
over the alternate budget, a statement that the amount of the proposed increase
will be based on a percentage of the school district's revenue control limit in
future years, if applicable, as provided in subsection Q of this section and
the following statement:
Any budget
increase authorized by this election shall be entirely funded by this school
district with revenues from other than a levy of taxes on the taxable property
within the school district for the year for which adopted and for _____
subsequent years and shall not be realized from monies furnished by the state.
K. The
maximum budget increase that may be requested and authorized as provided in
subsection I or J of this section, or a combination of both of these
subsections, is five percent of the revenue control limit as provided in
section 15-947, subsection A for the budget year. For a common
school district not within a high school district or a common school district
within a high school district that offers instruction in high school subjects
as provided in section 15-447, five percent of the revenue control limit
means five percent of the revenue control limit attributable to the weighted
student count in preschool programs for children with disabilities,
kindergarten programs and grades one through eight as provided in section 15-971,
subsection B. For a unified school district, five percent of the revenue
control limit means five percent of the revenue control limit attributable to
the weighted student count in preschool programs for children with
disabilities, kindergarten programs and grades one through twelve. For a union
high school district, five percent of the revenue control limit means five
percent of the revenue control limit attributable to the weighted student count
in grades nine through twelve.
L. If
the election is to exceed district additional assistance and if the proposed
increase will be fully funded by a levy of taxes on the taxable property within
the school district, the ballot shall contain the words "budget increase,
yes" and "budget increase, no", and the voter shall signify the
voter's desired choice. An election held pursuant to this subsection shall be
held on the first Tuesday after the first Monday of November. The ballot shall
also contain the amount of the proposed increase of the proposed budget over
the alternate budget and the following statement:
Any budget
increase authorized by this election shall be entirely funded by a levy of
taxes on the taxable property within this school district for the year in which
adopted and for _____ subsequent years, shall not be realized from monies
furnished by the state and shall not be subject to the limitation on taxes
specified in article IX, section 18, Constitution of Arizona. Based
on the current net assessed valuation used for secondary property tax purposes,
to fund the proposed increase in the school district's budget would require an
estimated tax rate of $_______________ dollar
per one hundred dollars $100 of net
assessed valuation used for secondary property tax purposes and is in addition
to the school district's tax rate that will be levied to fund the school
district's district additional assistance allowed by law.
M. If
the election is to exceed district additional assistance and if the proposed
increase will be fully funded by revenues from other than a levy of taxes on
the taxable property within the school district, the ballot shall contain the
words "budget increase, yes" and "budget increase, no", and
the voter shall signify the voter's desired choice. An election held pursuant
to this subsection shall be held on the first Tuesday after the first Monday of
November. The ballot shall also contain the amount of the proposed increase of
the proposed budget over the alternate budget and the following statement:
Any budget
increase authorized by this election shall be entirely funded by this school
district with revenues from other than a levy of taxes on the taxable property
within the school district for the year in which adopted and for ______
subsequent years and shall not be realized from monies furnished by the state.
N. If
the election is to exceed a combination of the revenue control limit as
provided in subsection E or F of this section, the revenue control limit as
provided in subsection I or J of this section or district additional assistance
as provided in subsection L or M of this section, the ballot shall be prepared
so that the voters may vote on each proposed increase separately and shall
contain statements required in the same manner as if each proposed increase
were submitted separately.
O. If
the election provides for a levy of taxes on the taxable property within the
school district, at least thirty days prior to before the election, the department of revenue shall provide
the school district governing board and the county school superintendent with
the current net assessed valuation of the school district. The
governing board and the county school superintendent shall use the current net
assessed valuation of the school district to translate the amount of the
proposed dollar increase in the budget of the school district over that allowed
by law into a tax rate figure.
P. If
the voters in a school district vote to adopt a budget in excess of the revenue
control limit as provided in subsection E or F of this section, any additional
increase shall be included in the aggregate budget limit for each of the years
authorized. Any additional increase shall be excluded from the determination
of equalization assistance. The school district governing board,
however, may levy on the net assessed valuation used for secondary property tax
purposes of the property in the school district the additional increase if
adopted under subsection E of this section for the period of one year, two
years or five through seven years as authorized. If an additional increase is
approved as provided in subsection F of this section, the school district
governing board may only use revenues derived from the school district's prior
year's maintenance and operation fund ending cash balance to fund the
additional increase. If a budget increase was previously authorized
and will be in effect for the budget year or budget year and subsequent years,
as provided in subsection E or F of this section, the governing board may
request a new budget increase as provided in the same subsection under which
the prior budget increase was adopted, which shall not exceed the maximum
amount permitted allowed under
subsection G of this section. If the voters in the school district
authorize the new budget increase amount, the existing budget increase no
longer is in effect. If the voters in the school district do not
authorize the budget increase amount, the existing budget increase remains in
effect for the time period for which it was authorized. The maximum
additional increase authorized as provided in subsection E or F of this section
and the additional increase that is included in the aggregate budget limit is
based on a percentage of a school district's revenue control limit in future
years, if the budget increase is authorized for more than one
year. If the additional increase:
1. Is
for two years, the proposed increase in the second year is equal to the initial
proposed percentage increase.
2. Is
for five years or more, the proposed increase is equal to the initial proposed
percentage increase in the following years of the proposed increase, except
that in the next to last year it is two-thirds of the initial proposed
percentage increase and it is one-third of the initial proposed
percentage increase in the last year of the proposed increase.
Q. If
the voters in a school district vote to adopt a budget in excess of the revenue
control limit as provided in subsection I or J of this section, any additional
increase shall be included in the aggregate budget limit for each of the years
authorized. Any additional increase shall be excluded from the determination
of equalization assistance. The school district governing board,
however, may levy on the net assessed valuation used for secondary property tax
purposes of the property in the school district the additional increase if
adopted under subsection I of this section for the period of one year, two
years or five through seven years as authorized. If an additional increase is
approved as provided in subsection J of this section, the increase may only be
budgeted and expended if sufficient monies are available in the maintenance and
operation fund of the school district. If a budget increase was
previously authorized and will be in effect for the budget year or budget year
and subsequent years, as provided in subsection I or J of this section, the
governing board may request a new budget increase as provided in the same
subsection under which the prior budget increase was adopted that does not
exceed the maximum amount permitted under subsection K of this
section. If the voters in the school district authorize the new
budget increase amount, the existing budget increase no longer is in
effect. If the voters in the school district do not authorize the
budget increase amount, the existing budget increase remains in effect for the
time period for which it was authorized. The maximum additional
increase authorized as provided in subsection I or J of this section and the
additional increase that is included in the aggregate budget limit is based on a
percentage of a school district's revenue control limit in future years, if the
budget increase is authorized for more than one year. If the additional
increase:
1. Is
for two years, the proposed increase in the second year is equal to the initial
proposed percentage increase.
2. Is
for five years or more, the proposed increase is equal to the initial proposed
percentage increase in the following years of the proposed increase, except
that in the next to last year it is two-thirds of the initial proposed
percentage increase and it is one-third of the initial proposed
percentage increase in the last year of the proposed increase.
R. If
the voters in a school district vote to adopt a budget in excess of district
additional assistance as provided in subsection L of this section, any
additional increase shall be included in the aggregate budget limit for each of
the years authorized. The additional increase shall be excluded from
the determination of equalization assistance. The school district
governing board, however, may levy on the net assessed valuation used for
secondary property tax purposes of the property in the school district the
additional increase for the period authorized but not to exceed ten years. For
overrides approved by a vote of the qualified electors of the school district
at an election held from and after October 31, 1998, the period of the
additional increase prescribed in this subsection shall not exceed seven years
for any capital override election.
S. If
the voters in a school district vote to adopt a budget in excess of district
additional assistance as provided in subsection M of this section, any
additional increase shall be included in the aggregate budget limit for each of
the years authorized. The additional increase shall be excluded from
the determination of equalization assistance. The school district
governing board may only use revenues derived from the school district's prior
year's maintenance and operation fund ending cash balance and capital outlay
fund ending cash balance to fund the additional increase for the period
authorized but not to exceed ten years. For overrides approved by a vote of
the qualified electors of the school district at an election held from and
after October 31, 1998, the period of the additional increase prescribed in
this subsection shall not exceed seven years for any capital override election.
T. In
addition to subsections P and S of this section, from the maintenance and
operation fund and capital outlay fund ending cash balances, the school
district governing board shall first use any available revenues to reduce its
primary tax rate to zero and shall use any remaining revenues to fund the
additional increase authorized as provided in subsections F and M of this
section.
U. If
the voters in a school district disapprove the proposed budget, the alternate
budget that, except for any budget increase authorized by a prior election,
does not include an increase in the budget in excess of the amount provided in
section 15-905 shall be adopted by the governing board as provided in
section 15-905.
V. The
governing board may request that any override election be cancelled if any
change in chapter 9 of this title changes the amount of the aggregate budget
limit as provided in section 15-905. The request to cancel the override
election shall be made to the county school superintendent at least eighty days
prior to before the date of the
scheduled override election.
W. For
any election conducted pursuant to subsection L or M of this section:
1. The
ballot shall include the following statement in addition to any other statement
required by this section:
The
capital improvements that are proposed to be funded through this override
election are to exceed the state standards and are in addition to monies
provided by the state.
___________
school district is proposing to increase its budget by $__________ to fund
capital improvements over and above those funded by the state. Under
the students first capital funding system, _________ school district is entitled
to state monies for new construction and renovation of school buildings in
accordance with state law.
2. The
ballot shall contain the words "budget increase, yes" and
"budget increase, no", and the voter shall signify the voter's
desired choice.
3. At
least eighty-five days before the election, the school district shall
submit proposed ballot language to the director of the Arizona legislative
council. The director of the Arizona legislative council shall
review the proposed ballot language to determine whether the proposed ballot
language complies with this section. If the director of the Arizona
legislative council determines that the proposed ballot language does not
comply with this section, the director, within ten calendar days of
the receipt of after receiving the proposed ballot
language, shall notify the school district of the director's objections, and the school district shall resubmit revised ballot
language to the director for approval.
X. If
the voters approve the budget increase pursuant to subsection L or M of this
section, the school district shall not use the override proceeds for any
purposes other than the proposed capital improvements listed in the
informational pamphlet, except that up to ten percent of the override proceeds
may be used for general capital expenses, including cost overruns of proposed
capital improvements.
Y. Each
school district that currently increases its budget pursuant to this section is required to shall hold a public meeting
each year between September 1 and October 31 at which an update of the programs
or capital improvements financed through the override is discussed and at which
the public is permitted allowed an
opportunity to comment and:
1. If
the increase is pursuant to subsection L or M of this section, at a minimum,
the update shall include the progress of capital improvements financed through
the override, a comparison of the current status and the original projections
on the construction of capital improvements, the costs of capital improvements
and the costs of capital improvements in progress or completed since the prior
meeting and the future capital plans of the school district. The
school district shall include in the public meeting a discussion of the school
district's use of state capital aid and voter-approved bonding in funding
capital improvements, if any.
2. If
the increase is pursuant to subsection E, F, I or J of this section, the update
shall include at a minimum the amount expended in the previous fiscal year and
the amount included in the current budget for each of the purposes listed in
the informational pamphlet prescribed by subsection B of this section.
Z. If
a budget in excess of district additional assistance was previously adopted by
the voters in a school district and will be in effect for the budget year or
budget year and subsequent years, as provided in subsection L or M of this
section, the governing board may request an additional budget in excess of
district additional assistance. If the voters in a school district
authorize the additional budget in excess of district additional assistance,
the existing district additional assistance budget increase remains in effect.
AA. Notwithstanding
any other law, the maximum budget increase that may be authorized pursuant to
subsection L or M of this section is ten percent of the school district's
revenue control limit.
BB. If
the election is to continue to exceed the revenue control limit and if the
proposed override will be fully funded by a continuation of a levy of taxes on
the taxable property in the school district, the ballot shall contain the words
"budget override continuation, yes" and "budget override
continuation, no", and the voter shall signify the voter's desired
choice. The ballot shall also contain the amount of the proposed continuation
of the budget increase of the proposed budget over the alternate budget, a
statement that the amount of the proposed increase will be based on a
percentage of the school district's revenue control limit in future years, if
applicable, as provided in subsection P of this section and the following
statement:
Any budget
increase continuation authorized by this election shall be entirely funded by a
levy of taxes on the taxable property in this school district for the year for
which adopted and for _______ subsequent years, shall not be realized from
monies furnished by the state and shall not be subject to the limitation on
taxes specified in article IX, section 18, Constitution of
Arizona. Based on the current net assessed valuation used for
secondary property tax purposes, to fund the proposed continuation of the
increase in the school district's budget would require an estimated
continuation of a tax rate of $______________ dollar per one hundred dollars $100 of assessed valuation used for secondary property tax
purposes and is in addition to the school district's tax rate that will be
levied to fund the school district's revenue control limit allowed by law.
CC. If
the election is to continue to exceed the revenue control limit as provided in
section 15-482 and if the proposed override will be fully funded by a
continuation of a levy of taxes on the taxable property in the school district,
the ballot shall contain the words "budget override continuation,
yes" and "budget override continuation, no", and the voter shall
signify the voter's desired choice. The ballot shall also contain the amount
of the proposed continuation of the budget increase of the proposed budget over
the alternate budget, a statement that the amount of the proposed increase will
be based on a percentage of the school district's revenue control limit in
future years, if applicable, as provided in subsection P of this section and
the following statement:
Any budget
increase continuation authorized by this election shall be entirely funded by a
levy of taxes on the taxable property in this school district for the year for
which adopted and for ______ subsequent years, shall not be realized from
monies furnished by the state and shall not be subject to the limitation on
taxes specified in article IX, section 18, Constitution of
Arizona. Based on the current net assessed valuation used for
secondary property tax purposes, to fund the proposed continuation of the
increase in the school district's budget would require an estimated
continuation of a tax rate of $_______________ dollar per one hundred dollars $100 of net assessed valuation used for secondary property tax
purposes and is in addition to the school district's tax rate that will be
levied to fund the school district's revenue control limit allowed by law. END_STATUTE
Sec. 17. Section
15-491, Arizona Revised Statutes, is amended to read:
START_STATUTE15-491. Elections
on school property; exceptions
A. The
governing board of a school district may, and on petition of fifteen percent of
the school electors as shown by the poll list at the last preceding annual
school election shall, call an election for the following purposes:
1. To
locate or change the location of school buildings.
2. To
purchase or sell school sites or buildings or sell school sites pursuant to
section 15-342 or to build school buildings, but the authorization by
vote of the school district shall not necessarily specify the site to be
purchased.
3. To
decide whether the bonds of the school district shall be issued and sold for
the purpose of raising money monies for
purchasing or leasing school lots, for building or renovating school buildings,
for supplying school buildings with furniture, equipment and technology, for
improving school grounds, for purchasing pupil transportation vehicles or for
liquidating any indebtedness already incurred for such purposes. Bonds issued
for furniture, equipment and technology, other than fixtures, shall mature no not later than the July 1 that follows
the fifth year after the bonds were issued. A school district shall not issue
class B bonds until the school district has obligated in contract the entire proceeds
of any class A bonds issued by the school district. The total amount
of class A and class B bonds issued by a school district shall not exceed the
debt limitations prescribed in article IX, sections 8 and 8.1, Constitution of
Arizona.
4. To
lease for twenty or more years, as lessor or as lessee, school buildings or
grounds. Approval by a majority of the school district electors
voting authorizes the governing board to negotiate for and enter into a
lease. The ballot shall list the school buildings or grounds for
which a lease is sought. If the governing board does not enter into
a lease of twenty or more years of the school buildings
or grounds listed on the ballot within twenty years of after the date of the election and the board continues to seek
such a lease, the governing board shall call a special election to reauthorize
the board to negotiate for and to enter into a lease of ten twenty or more years.
5. To
change the list of capital projects or the purposes authorized by prior voter
approval to issue bonds.
6. To
extend from six to ten years the time period to issue class B bonds authorized
in 2009 or earlier. Elections pursuant to this paragraph may not be held later
than the sixth November after the election approving the issuance of the bonds.
B. No A petition shall be
is not required for the holding of the first election to be held in a joint common school
district for any of the purposes specified in subsection A of this
section. The certification of election results required by section
15-493 shall be made to the board of supervisors of the jurisdictional
county.
C. When
the election is called to determine whether or not bonds of the school district
shall be issued and sold for the purposes enumerated in the call for the
election, the question shall be submitted to the vote of the qualified electors
of the school district as defined in section 15-401 and subject to
section 15-402.
D. The
governing board shall order the election to be held and the election notice and
procedures to be conducted in the manner prescribed in title 35, chapter 3,
article 3. If a petition for an election has been filed with the
governing board as provided in subsection A of this section, the board shall
act on the petition within sixty days by ordering the election to be held as
provided in this subsection. If a school district bond election is
scheduled for the same date a school district will hold an override election,
the governing body shall deliver a copy of the notice of election and ballot to
the county school superintendent who shall include the notice of election and
ballot with the informational pamphlet and ballot prepared for the override
election. Mailing of the information required for both the override
and bond elections shall constitute compliance with the notice provisions of
this section.
E. The
elections to be held pursuant to this section shall only be held on dates
prescribed by section 16-204, except that elections held pursuant to this
section to decide whether class B bonds shall be issued, or any other
obligation incurred that will require the assessment of secondary property
taxes, shall only be held on the first Tuesday after the first Monday of
November.
F. Subsection
A, paragraph 2 of this section does not apply to the sale of school property if
the market value of the school property is less than fifty
thousand dollars $50,000.
G. Bond
counsel fees, financial advisory fees, printing costs and paying agent and
registrar fees for bonds issued pursuant to an election under this section
shall be paid from either the amount authorized by the qualified electors of
the school district or current operating funds. Bond election expenses shall
be paid from current operating funds only.
H. For
any election conducted to decide whether class B bonds will be issued pursuant
to this section:
1. Except
as provided in paragraph 2 of this subsection, the ballot shall include the
following statement:
The
capital improvements that are proposed to be funded through this bond issuance
are to exceed the state standards and are in addition to monies provided by the
state.
__________
school district is proposing to issue class B general obligation bonds totaling
$__________ to fund capital improvements over and above those funded by the
state. Under the students first capital funding system, _________ school
district is entitled to state monies for new construction and renovation of
school buildings in accordance with state law.
2. For
a school district that is a career technical education district, the ballot
shall include the following statement:
________,
a career technical education district, is proposing to issue class B general
obligation bonds totaling $_________ to fund capital improvements at a campus
owned or operated and maintained by the career technical education district.
3. The
ballot shall conform to the requirements of title 35, chapter 3, article 3.
4. At
least eighty-five days before the election, the school district shall
submit proposed ballot language to the county school superintendent and the
director of the Arizona legislative council. The director of the
Arizona legislative council shall review the proposed ballot language to
determine whether the proposed ballot language complies with this
section. If the director of the Arizona legislative council
determines that the proposed ballot language does not comply with this section,
the director, within ten calendar days of the receipt of after receiving the proposed ballot language, shall notify the
school district and the county school superintendent of the director's
objections, and the school district shall resubmit
revised ballot language to the director for approval.
5. No Not later than thirty-five days
before a class B bond election conducted pursuant to this section, the school
district shall mail an informational pamphlet prepared by the county school
superintendent to each household that contains a qualified elector in the
school district. The informational pamphlet shall contain, at a
minimum, the following information:
(a) An
executive summary of the school district's most recent capital plan submitted
to the school facilities oversight board.
(b) A
complete list of each proposed capital improvement that will be funded with the
proceeds of the bonds and a description of the proposed cost of each
improvement, including a separate aggregation of capital improvements for
administrative purposes as defined by the school facilities oversight
board.
(c) The
tax rate associated with each of the proposed capital improvements and the
estimated cost of each capital improvement for the owner of a single family
home that is valued at one hundred thousand dollars $100,000.
I. For
any election conducted to decide whether impact aid revenue bonds shall be
issued pursuant to this section:
1. The
ballot shall include the following statement:
The
capital improvements that are proposed to be funded through this bond issuance
are to exceed the state standards and are in addition to monies provided by the
state.
__________
school district is proposing to issue impact aid revenue bonds totaling
$__________ to fund capital improvements over and above those funded by the
state. Under the students first capital funding system, _________ school
district is entitled to state monies for new construction and renovation of
school buildings in accordance with state law.
2. The
ballot shall contain the words "bond approval, yes" and "bond
approval, no", and the voter shall signify the voter's desired choice.
3. At least eighty-five days before the election, the
school district shall submit proposed ballot language
to the director of the legislative council. The director of the legislative
council shall review the proposed ballot language to determine whether the
proposed ballot language complies with this section. If the director
of the legislative council determines that the proposed ballot language does
not comply with this section, the director, within ten calendar days of the receipt of after receiving the proposed ballot
language, shall notify the school district of the director's objections, and the school district shall
resubmit revised ballot language to the director for approval.
4. No Not later than thirty-five days
before an impact aid revenue bond election conducted pursuant to this section,
the school district shall mail an informational pamphlet prepared by the county
school superintendent to each household that contains a qualified elector in
the school district. The informational pamphlet shall contain, at a minimum, the
following information:
(a) The
date of the election.
(b) The
voter's polling place and the times it is open.
(c) An
executive summary of the school district's most recent capital plan submitted
to the school facilities
oversight board.
(d) A
complete list of each proposed capital improvement that will be funded with the
proceeds of the bonds and a description of the proposed cost of each
improvement, including a separate aggregation of capital improvements for
administrative purposes as defined by the school facilities oversight board.
(e) A
statement that impact aid revenue bonds will be fully funded by aid that the
school district receives from the federal government and do not require a levy
of taxes in the district.
(f) A
statement that if the bonds are approved, the first priority for the impact aid
will be to pay the debt service for the bonds and that other uses of the monies
are prohibited until the debt service obligation is met.
(g) A
statement that if the impact aid revenue bonds are approved, the school
district shall not issue or sell class B bonds while the district has existing
indebtedness from impact aid revenue bonds, except for bonds issued to refund
any bonds issued by the board.
J. If
the voters approve the issuance of school district class B bonds or impact aid
revenue bonds, the school district shall not use the bond proceeds for any
purposes other than the proposed capital improvements listed in the
informational pamphlet, except that up to ten percent of the bond proceeds may
be used for general capital expenses, including cost overruns of proposed
capital improvements. The proposed capital improvements may be
changed by a subsequent election as provided by this section.
K. Each
school district that issues bonds under this section is required
to shall hold a public meeting each year between
September 1 and October 31, until the bond proceeds are spent, at which an
update of the progress of capital improvements financed through bonding is
discussed and at which the public is permitted allowed an opportunity to comment. At a minimum, the
update shall include a comparison of the current status and the original
projections on the construction of capital improvements, the costs of capital
improvements and the costs of capital improvements in progress or completed
since the prior meeting and the future capital bonding plans of the school
district. The school district shall include in the public meeting a
discussion of the school district's use of state capital aid and voter-approved
capital overrides in funding capital improvements, if any.
L. If
an election is held to change the purpose or list of capital projects
authorized by prior voter approval to issue bonds pursuant to subsection A,
paragraph 5 of this section, the following requirements apply:
1. The
election may be held only on the first Tuesday after the first Monday in
November.
2. No Not later than thirty-five days
before the election, the school district shall mail an informational pamphlet
prepared by the county school superintendent to each household in the school
district that contains a qualified elector. The informational pamphlet shall
contain, at a minimum, the following information:
(a) The
date of the election.
(b) The
voter's polling place and the times it is open.
(c) A
statement as to why the election was called.
(d) A
complete list of each proposed capital improvement that is in addition to the
initial capital improvements presented in the informational pamphlet when the
bonds were approved and the proposed cost of each improvement, including a
separate aggregation of capital improvements for administrative purposes as
defined by the school facilities oversight board.
(e) A
complete list of each capital improvement that was presented in the
informational pamphlet when the bonds were initially approved and that is
proposed to be eliminated or to have its cost reduced, and the proposed cost of
each improvement, including a separate aggregation of capital improvements for
administrative purposes as defined by the school facilities
oversight board.
(f) Arguments
for and against the proposed change, if submitted, as provided by section 15-481,
subsection B, paragraph 9. The ballot arguments for the proposed
change shall be signed as the governing board of the school district without
listing any member's individual name for the arguments for the proposed change.
3. The
ballot shall contain the words "change capital improvements, yes" and
"change capital improvements, no", and the voter shall signify the
voter's desired choice.
4. If
the election is to add a purpose that was not on the initial ballot, the ballot
shall list the purpose that is proposed to be added.
M. If
an election is held to extend the time to issue bonds pursuant to subsection A,
paragraph 6 of this section, the following requirements apply:
1. The
election may be held only on the first Tuesday after the first Monday in
November.
2. No Not later than thirty-five days
before the election, the school district shall mail an informational pamphlet
prepared by the county school superintendent to each household in the school
district that contains a qualified elector. The informational
pamphlet shall contain, at a minimum, the following information:
(a) The
date of the election.
(b) The
voter's polling place and the times it is open.
(c) A
statement as to why the election was called.
(d) Arguments
for and against the proposed change, if submitted, as provided in section 15-481,
subsection B, paragraph 9. The ballot arguments for the proposed
change shall be signed as the governing board of the school district without
listing any member's individual name for the arguments for the proposed change.
3. The
ballot shall contain the words "extend time to issue bonds, yes" and
"extend time to issue bonds, no", and the voter shall signify the
voter's desired choice.END_STATUTE"
Renumber to
conform
Page 44,
line 34, after "employer" insert ", the state
board of education"
Page 47,
between lines 6 and 7, insert:
"Sec. 21. Title
15, chapter 7, article 1, Arizona Revised Statutes, is amended by adding
sections 15-711.01 and 15-717.02, to read:
START_STATUTE15-711.01. Instruction;
child assault awareness; abuse prevention
Notwithstanding any other law, age-appropriate and
grade-appropriate classroom instruction regarding child assault awareness and
abuse prevention is allowed.
START_STATUTE15-717.02. Prohibited
instruction; disciplinary action; legal action; civil penalty
A. A
teacher, administrator or other employee of a school district, charter school
or state agency who is involved with students and teachers in grades preschool
through the twelfth grade may not require instruction in or make part of a
course the following concepts:
1. One
race, ethnic group or sex is inherently morally or intellectually superior to
another race, ethnic group or sex.
2. An
individual, by virtue of the individual's race, ethnicity or sex, is inherently
racist, sexist or oppressive, whether consciously or unconsciously.
3. An
individual should be invidiously discriminated against or receive adverse
treatment solely or partly because of the individual's race, ethnicity or sex.
4. An
individual's moral character is determined by the individual's race, ethnicity
or sex.
5. An
individual, by virtue of the individual's race, ethnicity or sex, bears
responsibility for actions committed by other members of the same race, ethnic
group or sex.
6. An
individual should feel discomfort, guilt, anguish or any other form of
psychological distress because of the individual's race, ethnicity or sex.
7. academic
achievement, Meritocracy or traits such as a hard work
ethic are racist or sexist or were created by members of a particular race,
ethnic group or sex to oppress members of another race, ethnic group or sex.
B. An
attorney acting on behalf of a public school may request a legal opinion of the
county attorney or attorney general as to whether a proposed use of school
district resources would violate this section.
C. A
teacher who violates this section shall be subject to disciplinary action,
including the suspension or revocation of the teacher's certificate, as the state
board deems appropriate.
D. The
attorney general or the county attorney for the county in which an alleged
violation of this section occurs may initiate a suit in the superior court in
the county in which the school district, charter school or state agency is
located for the purpose of complying with this section.
E. for
each violation of this section, including subsequent or continued violations,
the court may impose a civil penalty not to exceed $5,000 per school district,
charter school or state agency where the violation occurs.
F. This
section does not preclude any training on sexual harassment or lessons on
recognizing and reporting abuse." END_STATUTE
Renumber to conform
Page 49,
line 34, strike the comma insert "and"
Line 35,
strike "and the auditor general"
Line 38,
after the period insert "The auditor general may provide
assistance related to this section."
Page
66, between lines 39 and 40, insert:
"Sec. 29. Section
15-907, Arizona Revised Statutes, is amended to read:
START_STATUTE15-907. Incurring
liabilities in excess of school district budget; petition; approval; procedure
for expenditures
A. In
the event of excessive and unexpected legal expenses or for an emergency for
which the school district did not receive funding from the school
facilities board pursuant to section 15-2022 41-5721 because there were insufficient monies in the
emergency deficiencies correction fund, the governing board of the school
district may petition the county school superintendent, or in the case of an
accommodation school, the county school superintendent may petition the county
board of supervisors, requesting authority to incur liabilities in excess of
the school district budget, in an amount the governing board deems necessary.
The governing board of the school district shall follow the procedures for the
truth in taxation notice and hearing prescribed in section 15-905.01,
subsection B.
B. The
county school superintendent shall forward the petition together with the
superintendent's recommendation and a copy of the budget of the school district
to the board of supervisors.
C. The
board of supervisors shall hold a hearing on the petition within twenty days
after receipt and shall determine whether the petition shall be allowed,
allowed after revision or denied.
D. If
the petition is allowed in whole or in part, the governing board shall be
authorized to incur liabilities in accordance with the petition, and a copy of
the order of the board of supervisors authorizing the incurring of such
liabilities shall be filed with the county school
superintendent. The county school superintendent, upon
on presentation of proper vouchers, shall draw warrants
against the additional allowance. Any liability so incurred shall be in
addition to the aggregate budget estimate of the school district for the
succeeding year.
E. The
portion of the primary tax rate to fund these liabilities in excess of the
school district budget as provided in this section shall not be included in the
computation of additional state aid for education prescribed in section 15-972.END_STATUTE"
Page 72,
between lines 27 and 28, insert:
"Sec. 34. Section
15-964, Arizona Revised Statutes, is amended to read:
START_STATUTE15-964. Federal
impact adjustment
A. The
governing board of a school district may compute a federal impact adjustment to
the unrestricted capital budget limit. The maximum amount of the
federal impact adjustment is the sum of the following:
1. Twenty-five
per cent percent of the monies
received from forest reserve funds by the school district in the prior fiscal
year as provided in section 41-736.
2. For
a school district that is not an accommodation school, the lesser of:
(a) Twenty-five
per cent percent of the title VIII
of the elementary and secondary education act of 1965 revenues received in the
prior fiscal year.
(b) The
total amount of title VIII of the elementary and secondary education act of
1965 revenues received in the prior fiscal year minus the sum of the following:
(i) The
amount of title VIII of the elementary and secondary education act of 1965
assistance used to increase the general budget limit as provided in section 15-905,
subsections K and O for the prior fiscal year.
(ii) The
amount budgeted for title VIII of the elementary and secondary education act of
1965 administrative costs as provided in section 15-905, subsection P for
the current year.
(iii) The
amount budgeted for principal and interest on impact aid revenue bonds pursuant
to section 15-2104 41-5804
for the current year.
B. The
federal impact adjustment shall only be budgeted and expended for new construction,
major renovation of buildings or expenditures that may be budgeted in the
unrestricted capital fund.
C. If
the governing board underestimated the amount of the federal impact adjustment
for the current year, the board may adjust the unrestricted capital budget
limit and the budget before May 15. If the board overestimated the
amount of the federal impact adjustment for the current year, the board shall
adjust the unrestricted capital budget limit and the budget before May 15. Not
later than May 18, the budget as revised shall be submitted electronically to
the superintendent of public instruction." END_STATUTE
Renumber to
conform
Page 74,
after line 40, insert:
"Sec. 36. Section
15-995, Arizona Revised Statutes, is amended to read:
START_STATUTE15-995. Special
district assessment for adjacent ways by school district
A. The
governing board of a school district may contract for constructing, maintaining
or otherwise improving any public way adjacent to any parcel of land owned by
the school district or leased for school purposes by the school district, or an
intersection of any public way adjoining a quarter block in which the parcel of
land is situated, and for the construction of constructing sidewalks, sewers, utility lines, roadways and
other related improvements in or along such streets and intersections, and to
pay for such improvements by the levy of levying
a special assessment on the taxable property in the school
district. A school district shall not use any portion of the monies
generated from the special assessment for any construction, maintenance or
other improvements to the school district's property except improvements
necessary to ensure the safe ingress to and egress from public school property
directly adjacent to the public way for buses and fire
equipment. The assessment shall be made a part of the itemized
statement that is regularly filed with the county school superintendent and
that shows the amount of monies needed for the expenses of schools within the
school district for the ensuing year. Each adjacent ways project
proposal to be funded through this special assessment must be filed with the division of school facilities board within the department of administration and include the project
cost estimate. If the entire project cost for the adjacent ways
project is greater than fifty thousand dollars $50,000, the school facilities board division shall approve or deny the project within sixty days
after receipt of receiving the
filing of the project proposal by the school district and the expenditure shall
not be made unless the school facilities board division validates both of the following within sixty days
after receipt of receiving the
filing of the proposal:
1. The
project that is proposed to be funded by the assessment is in
compliance complies with state laws relating to
adjacent ways projects.
2. The
proposal selected by the school district does not contain additional work that
is not listed in the adjacent ways proposal submitted by the school district.
B. If
any property that is owned by a school district or leased by a school district
for school purposes from any city or county, the state or the United States is
included within the assessment district to be assessed to pay the costs and
expenses of any public improvements initiated by a city, in order to make the
assessments thereon payable by the city in which the improvement is initiated,
the governing board may contract with the municipality or its improvement
district to reimburse it for the amount of the assessment against the property
and to pay the amount so contracted for by the levy of a special assessment as
provided by subsection A of this section.
C. The
governing board of the school district shall follow the truth in taxation
notice and hearing requirements prescribed in section 15-905.01,
subsection B.
D. The
portion of the primary tax rate to fund adjacent ways as provided in this
section shall not be included in the computation of additional state aid for
education as prescribed in section 15-972. END_STATUTE
Sec. 37. Section
15-996, Arizona Revised Statutes, is amended to read:
START_STATUTE15-996. Duties
of county treasurer relating to school district's monies
The
county treasurer shall:
1. Receive
and hold all school district monies and keep a separate account for each school
district and for the special county school reserve fund. The county
treasurer may maintain separate accounts for each fund of a school district or
the county treasurer may maintain only two accounts for each school district's
monies in addition to the funds provided for in sections 15-1024, 15-1025
and 15-2041 41-5741. If
only two accounts are maintained, the first account shall consist of
maintenance and operation, unrestricted capital outlay and adjacent ways monies
and the classroom site fund prescribed in section 15-977 and the second
account shall consist of federal and state grant monies and all other monies.
2. Pool
school district monies for investment except as provided in sections 15-1024
and 15-1025. Interest earned on the monies pooled for
investment shall be apportioned at least quarterly to the appropriate school
district based on an average monthly balance as prescribed in the uniform
system of accounting for county treasurers as provided in section 41-1279.21.
3. Notwithstanding
section 11-605, register warrants only as follows:
(a) If
separate accounts are maintained for each fund, warrants may only be registered
on the maintenance and operation, unrestricted capital outlay and adjacent ways
accounts and the classroom site fund prescribed in section 15-977 and
only if the total cash balance of all three accounts is insufficient to pay the
warrants, except that, during the period of time when a school district is
under receivership pursuant to section 15-103, a warrant may be
registered on the debt service account for which the cash balance in the debt
service account is insufficient to cover the debt service payment if there are
not sufficient monies in the debt service account to cover the debt.
(b) If
the county treasurer maintains only two accounts as provided in paragraph 1 of
this section:
(i) The
county treasurer may register warrants only on the first account and only if
the balance of that account is insufficient to pay the warrants.
(ii) The
county treasurer may honor warrants for any federal or state grant fund with a negative
balance as long as the total balance in the second account is
positive. If the second account total balance is negative, the
warrant for a federal or state grant fund shall be charged to the maintenance
and operation fund. Any interest charged to the federal or state
grant fund as a result of a negative balance that is in excess of interest
earned on the fund shall be transferred to the maintenance and operation fund
at the end of the fiscal year or the end of the grant year. If a federal
or state grant fund has a negative balance at the end of the fiscal year or
grant year, sufficient expenditures shall be transferred to the maintenance and
operation fund to eliminate the negative balance.
4. Notify
the county school superintendent by the fifteenth day of each calendar month of
the month end balances of each school district account.
5. Pay
warrants issued by the county school superintendent and duly endorsed by the
person entitled to receive the monies.
6. On
each property tax bill and each property tax statement prepared, separately
state and identify by name each school district's primary property tax rate,
the secondary property tax rate that is associated with overrides, the
secondary property tax rate that is associated with class A bonds and the
secondary property tax rate that is associated with class B
bonds. For the purposes of this paragraph, "class A bonds"
and "class B bonds" have the same meanings prescribed in section 15-101.
END_STATUTE
Sec. 38. Section
15-1021, Arizona Revised Statutes, is amended to read:
START_STATUTE15-1021. Limit
on bonded indebtedness; limit on authorization and issuance of bonds;
definitions
A. Until
December 31, 1999, a school district may issue class A bonds for the purposes
specified in this section and chapter 4, article 5 of this title to an amount
in the aggregate, including the existing indebtedness, not exceeding fifteen
percent of the taxable property used for secondary property tax purposes, as
determined pursuant to title 42, chapter 15, article 1, within a school
district as ascertained by the last property tax assessment previous to issuing
the bonds.
B. From
and after December 31, 1998, a school district may issue class B bonds for the
purposes specified in this section and chapter 4, article 5 of this title to an
amount in the aggregate, including the existing class B indebtedness, not
exceeding ten percent of the net assessed value of the full cash value of the
property in that school district, or one thousand five hundred
dollars $1,500 per student count pursuant to
section 15-901, subsection A, paragraph 13, whichever amount is
greater. A school district shall not issue class B bonds until the
proceeds of any class A bonds issued by the school district have been obligated
in contract. The total amount of class A and class B bonds issued by
a school district shall not exceed the debt limitations prescribed in article
IX, section 8, Constitution of Arizona.
C. Until
December 31, 1999, a unified school district, as defined under article IX,
section 8.1, Constitution of Arizona, may issue class A bonds for the purposes
specified in this section and chapter 4, article 5 of this title to an amount
in the aggregate, including the existing indebtedness, not exceeding thirty
percent of the taxable property used for secondary property tax purposes, as
determined pursuant to title 42, chapter 15, article 1, within a unified school
district as ascertained by the last property tax assessment previous to issuing
the bonds.
D. From
and after December 31, 1998, a unified school district, as defined under
article IX, section 8.1, Constitution of Arizona, may issue class B bonds for
the purposes specified in this section and chapter 4, article 5 of this title
to an amount in the aggregate, including the existing class B indebtedness, not
exceeding twenty percent of the net assessed value of the full cash value of
the property in that school district, or one thousand five hundred
dollars $1,500 per student count pursuant to
section 15-901, subsection A, paragraph 13, whichever amount is greater.
A unified school district shall not issue class B bonds until the proceeds of
any class A bonds issued by the unified school district have been obligated in
contract. The total amount of class A and class B bonds issued by a
unified school district shall not exceed the debt limitations prescribed in
article IX, section 8.1, Constitution of Arizona.
E. Bonds
authorized to be issued by an election held after July 1, 1980 and before
November 24, 2009 may not be issued more than six years after the date of the
election, except that the time period may be extended to ten years pursuant to
an election conducted pursuant to section 15-491, subsection A, paragraph
6 and except that class A bonds shall not be issued after December 31,
1999. Bonds authorized to be issued by an election held after
November 24, 2009 may not be issued more than ten years after the date of the
election.
F. Except
as provided in section 15-491, subsection A, paragraph 3, bond proceeds
shall not be expended for items whose useful life is less than the average life
of the bonds issued, except that bond proceeds shall not be expended for items
whose useful life is less than five years.
G. A
career technical education district shall not spend class B bond proceeds to
construct or renovate a facility located on the campus of a school in a school
district that participates in the career technical education district unless the
facility is only used to provide career and technical education and is
available to all pupils who live within the career technical education
district. If the facility is not owned by the career technical
education district, an intergovernmental agreement or a written contract shall
be executed for ten years or the duration of the bonded indebtedness, whichever
is greater. The intergovernmental agreement or written contract
shall include provisions:
1. That
preserve the usage of the facility renovated or constructed, or both, only for
career and technology programs operated by the career technical education
district.
2. That
include the process to be used by the participating district to compensate the
career technical education district in the event that the facility is no longer
used only for career and technical education programs offered by the career
technical education district during the life of the bond.
H. A
school district shall not authorize, issue or sell bonds pursuant to this
section if the school district has any existing indebtedness from impact aid
revenue bonds pursuant to title 41, chapter 16 56, article 8 of this
title, except for bonds issued to refund any bonds issued by the
governing board.
I. For
the purposes of this section, "full cash value" and "net
assessed value" have the same meanings prescribed in section 42-11001."
END_STATUTE
Renumber to
conform
Page 76,
between lines 35 and 36, insert:
"Sec. 40. Section
15-1107, Arizona Revised Statutes, is amended to read:
START_STATUTE15-1107. Litigation
recovery fund; disposition of proceeds
A. Monies
received for and derived from settlement of legal controversies or from
recovery of costs, attorney fees or damages by a school district in litigation
by or against the school district shall be deposited with the county treasurer
who shall credit the deposits to the litigation recovery fund of the school
district. The litigation recovery fund is a continuing fund that is
not subject to reversion.
B. If
a school district receives monies as provided in subsection A of this section
for the purpose of replacing or repairing school buildings or other school
property, the governing board, or the superintendent or chief administrative
officer with the approval of the governing board, may apply the proceeds only
to:
1. Reimburse
the school facilities board building renewal grant fund
established by section 15-2032 41-5731
or the emergency deficiencies correction fund established by section 15-2022 41-5721 to the extent
that monies were received by the school district from the school
facilities board, from those funds for replacing
or repairing school buildings or other school property that was the subject of
the dispute and the monies recovered by the school district pursuant to
subsection A of this section are designated for the replacement or
repair. The school district shall prioritize the reimbursement of the school facilities board as described in this
paragraph, if applicable.
2. Pay
any outstanding bonded indebtedness of the school district that is payable from
the levy of taxes on property within the school district.
3. Construct,
acquire, improve, repair or furnish school buildings after notice. If the proceeds are applied to a
project that costs more than two hundred fifty thousand dollars $250,000, the governing board, or the superintendent or chief
administrative officer with the approval of the governing board, may apply the
proceeds after notice and a hearing.
4. Replace
or repair the school property other than school buildings.
C. Except
as provided in subsection B of this section, the governing board, or the
superintendent or chief administrative officer with the approval of the governing
board, may apply the proceeds of litigation recoveries to procure legal
services or for the costs of litigation." END_STATUTE
Renumber to
conform
Page 77,
line 11, strike "department" insert "career and technical education district"
Line 12,
after the period insert "The career and technical education
district shall apply to the department to receive reimbursement for the cost of
the exam."
Page 78,
strike lines 38 through 45
Strike pages
79 through 87
Page 88,
strike lines 1 through 6, insert:
"Sec. 44. Repeal
Section 15-2003, Arizona Revised Statutes, is repealed.
Sec. 45. Transfer and renumber
Title 15,
chapter 16, Arizona Revised Statutes, is transferred and renumbered for
placement in title 41, Arizona Revised Statutes, as a new chapter 56. Title
15, chapter 16, articles 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11, Arizona Revised
Statutes, are transferred and renumbered for placement in title 41, chapter 56,
Arizona Revised Statutes, as added by this act, as new articles 1, 2, 3, 4, 5,
6, 7, 8, 9, 10 and 11, respectively. The following sections are transferred
and renumbered for placement in title 41, chapter 56, article 1:
Former Sections New Sections
15-2001
………………………………………………………………………………………………………………………… 41-5701.02
15-2002
………………………………………………………………………………………………………………………………… 41-5702
15-2004
………………………………………………………………………………………………………………………………… 41-5703
15-2005
………………………………………………………………………………………………………………………………… 41-5704
15-2006
………………………………………………………………………………………………………………………………… 41-5705
The
following section is transferred and renumbered for placement in title 41,
chapter 56, article 2:
Former Section
New Section
15-2011
………………………………………………………………………………………………………………………………… 41-5711
The
following section is transferred and renumbered for placement in title 41,
chapter 56, article 3:
Former
Section New Section
15-2022
………………………………………………………………………………………………………………………………… 41-5721
The
following section is transferred and renumbered for placement in title 41,
chapter 56, article 4:
Former
Section New Section
15-2032
………………………………………………………………………………………………………………………………… 41-5731
The
following section is transferred and renumbered for placement in title 41,
chapter 56, article 5:
Former
Section New Section
15-2041
………………………………………………………………………………………………………………………………… 41-5741
The
following sections are transferred and renumbered for placement in title 41,
chapter 56, article 6:
Former
Sections New Sections
15-2051
………………………………………………………………………………………………………………………………… 41-5751
15-2052
………………………………………………………………………………………………………………………………… 41-5752
15-2053
………………………………………………………………………………………………………………………………… 41-5753
15-2054
………………………………………………………………………………………………………………………………… 41-5754
15-2055
………………………………………………………………………………………………………………………………… 41-5755
15-2056
………………………………………………………………………………………………………………………………… 41-5756
15-2057
………………………………………………………………………………………………………………………………… 41-5757
15-2059
………………………………………………………………………………………………………………………………… 41-5758
15-2060
………………………………………………………………………………………………………………………………… 41-5759
15-2061
………………………………………………………………………………………………………………………………… 41-5760
15-2062
………………………………………………………………………………………………………………………………… 41-5761
15-2064
………………………………………………………………………………………………………………………………… 41-5762
15-2065
………………………………………………………………………………………………………………………………… 41-5763
15-2066
………………………………………………………………………………………………………………………………… 41-5764
The
following sections are transferred and renumbered for placement in title 41, chapter
56, article 7:
Former
Sections New Sections
15-2081
………………………………………………………………………………………………………………………………… 41-5781
15-2082 …………………………………………………………………………………………………………………………………
41-5782
15-2083
………………………………………………………………………………………………………………………………… 41-5783
15-2084
………………………………………………………………………………………………………………………………… 41-5784
15-2085
………………………………………………………………………………………………………………………………… 41-5785
15-2086
………………………………………………………………………………………………………………………………… 41-5786
15-2087
………………………………………………………………………………………………………………………………… 41-5787
15-2088
………………………………………………………………………………………………………………………………… 41-5788
15-2089
………………………………………………………………………………………………………………………………… 41-5789
15-2090
………………………………………………………………………………………………………………………………… 41-5790
15-2091
………………………………………………………………………………………………………………………………… 41-5791
15-2093
………………………………………………………………………………………………………………………………… 41-5792
15-2094
………………………………………………………………………………………………………………………………… 41-5793
15-2095
………………………………………………………………………………………………………………………………… 41-5794
The
following sections are transferred and renumbered for placement in title 41,
chapter 56, article 8:
Former Sections
New Sections
15-2101
………………………………………………………………………………………………………………………………… 41-5801
15-2102
………………………………………………………………………………………………………………………………… 41-5802
15-2103
………………………………………………………………………………………………………………………………… 41-5803
15-2104
………………………………………………………………………………………………………………………………… 41-5804
15-2105
………………………………………………………………………………………………………………………………… 41-5805
15-2106
………………………………………………………………………………………………………………………………… 41-5806
15-2107
………………………………………………………………………………………………………………………………… 41-5807
15-2108 …………………………………………………………………………………………………………………………………
41-5808
15-2109
………………………………………………………………………………………………………………………………… 41-5809
15-2110
………………………………………………………………………………………………………………………………… 41-5810
15-2111
………………………………………………………………………………………………………………………………… 41-5811
15-2112
………………………………………………………………………………………………………………………………… 41-5812
15-2113
………………………………………………………………………………………………………………………………… 41-5813
15-2114
………………………………………………………………………………………………………………………………… 41-5814
15-2115
………………………………………………………………………………………………………………………………… 41-5815
The
following sections are transferred and renumbered for placement in title 41,
chapter 56, article 9:
Former
Sections New Sections
15-2131
………………………………………………………………………………………………………………………………… 41-5831
15-2132
………………………………………………………………………………………………………………………………… 41-5832
The
following section is transferred and renumbered for placement in title 41,
chapter 56, article 10:
Former
Section New Section
15-2141 …………………………………………………………………………………………………………………………………
41-5841
The
following sections are transferred and renumbered for placement in title 41,
chapter 56, article 11:
Former
Sections New Sections
15-2151
………………………………………………………………………………………………………………………………… 41-5851
15-2152
………………………………………………………………………………………………………………………………… 41-5852
15-2153
………………………………………………………………………………………………………………………………… 41-5853
15-2154
………………………………………………………………………………………………………………………………… 41-5854
15-2155 …………………………………………………………………………………………………………………………………
41-5855
15-2156
………………………………………………………………………………………………………………………………… 41-5856
15-2157
………………………………………………………………………………………………………………………………… 41-5857
15-2158
………………………………………………………………………………………………………………………………… 41-5858
Sec. 46. Section
15-2401, Arizona Revised Statutes, is amended to read:
START_STATUTE15-2401. Definitions
In this
chapter, unless the context otherwise requires:
1. "Annual
education plan" means an initial individualized evaluation and subsequent
annual reviews that are developed for a qualified student who meets the
criteria specified in paragraph 7 8,
subdivision (a), item (i), (ii) or (iii) of this section to determine ongoing
annual eligibility through the school year in which the qualified student
reaches twenty-two years of age and whether the student may be eligible
pursuant to section 36-2981 and should be referred for eligibility
determination.
2. "Child
who receives free or reduced-price lunches under the national school lunch and
child nutrition acts" includes an incoming kindergartener or any other
student who meets the eligibility requirements established under the national
school lunch and child nutrition acts (42 United States Code sections 1751
through 1793) for free or reduced-price lunches, or an equivalent measure
recognized for participating in the federal free and reduced-price lunch
program and other school programs dependent on a poverty measure.
2. 3. "Curriculum"
means a course of study for content areas or grade levels, including any
supplemental materials required or recommended by the curriculum, approved by
the department.
3. 4. "Department"
means the department of education.
4. 5. "Eligible
postsecondary institution" means a community college as defined in section
15-1401, a university under the jurisdiction of the Arizona board of
regents or an accredited private postsecondary institution.
5. 6. "Parent"
means a resident of this state who is the parent, stepparent or legal guardian
of a qualified student.
6. 7. "Qualified
school" means a nongovernmental primary or secondary school or a preschool
for pupils with disabilities that is located in this state or, for qualified
students who reside within the boundaries of an Indian reservation in this
state, that is located in an adjacent state and that is within two miles of the
border of the state in which the qualified student resides, and that does not
discriminate on the basis of race, color or national origin.
7. 8. "Qualified
student" means a resident of this state who:
(a) Is
any of the following:
(i) Identified
as having a disability under section 504 of the rehabilitation act of 1973 (29
United States Code section 794).
(ii) Identified
by a school district or by an independent third party pursuant to section 15-2403,
subsection I as a child with a disability as defined in section 15-731 or
15-761.
(iii) A
child with a disability who is eligible to receive services from a school
district under section 15-763.
(iv) Attending
a school or school district that has been was
assigned a letter grade of D or F pursuant to section 15-241 for the most recent year in which letter grades were assigned
or who is currently eligible to attend kindergarten and who resides within the
attendance boundary of a school that has been was assigned a letter grade of D or F pursuant to section 15-241
for the most recent year in which letter grades were assigned.
(v) A
previous recipient of a scholarship issued pursuant to section 15-891 or
this section, unless the qualified student's parent has been removed from
eligibility in the program for failure to comply pursuant to section 15-2403,
subsection C.
(vi) A
child of a parent who is a member of the armed forces of the United States and
who is on active duty, or who was killed in the line of duty or who is a
veteran of the armed forces of the United States. A child who meets the
requirements of this item is not subject to subdivision (b) of this paragraph.
(vii) A
child who is a ward of the juvenile court and who is residing with a
prospective permanent placement pursuant to section 8-862 and the case
plan is adoption or permanent guardianship.
(viii) A
child who was a ward of the juvenile court and who achieved permanency through
adoption or permanent guardianship.
(ix) A
child who is the sibling of a current or previous Arizona empowerment
scholarship account recipient or of an eligible qualified student who accepts
the terms of and enrolls in an Arizona empowerment scholarship account.
(x) A
child who resides within the boundaries of an Indian reservation in this state
as determined by the department of education or a tribal government.
(xi) A
child of a parent who is legally blind or deaf or hard of hearing as defined in
section 36-1941.
(xii) A
child who receives free or reduced-price lunches under the national school
lunch and child nutrition acts.
(b) And,
except as provided in subdivision (a), item (vi) of this paragraph, who meets
any of the following requirements:
(i) Attended
a governmental primary or secondary school as a full-time student as
defined in section 15-901 for at least the first one
hundred thirty days of the current
or prior fiscal year and who transferred from a governmental primary or
secondary school under a contract to participate in an Arizona empowerment
scholarship account. First, second and third grade students who are enrolled
in Arizona online instruction must receive four hundred hours of logged instruction
to be eligible pursuant to this item. Fourth, fifth and sixth grade students
who are enrolled in Arizona online instruction must receive five hundred hours
of logged instruction to be eligible pursuant to this item. Seventh and eighth
grade students who are enrolled in Arizona online instruction must receive five
hundred fifty hours of logged instruction to be eligible pursuant to this
item. High school students who are enrolled in Arizona online instruction must
receive five hundred hours of logged instruction to be eligible pursuant to
this item.
(ii) Previously
participated in an Arizona empowerment scholarship account.
(iii) Received
a scholarship under section 43-1505 and who continues to attend a
qualified school if the student attended a governmental primary or secondary
school as a full-time student as defined in section 15-901 for at
least ninety days of the prior fiscal year or one full semester before
attending a qualified school.
(iv) Was
eligible for an Arizona scholarship for pupils with disabilities and received
monies from a school tuition organization pursuant to section 43-1505 or
received an Arizona scholarship for pupils with disabilities but did not
receive monies from a school tuition organization pursuant to section 43-1505
and who continues to attend a qualified school if the student attended a
governmental primary or secondary school as a full-time student as
defined in section 15-901 for at least ninety days of the prior fiscal
year or one full semester prior to before
attending a qualified school.
(v) Has
not previously attended a governmental primary or secondary school but is
currently eligible to enroll in a kindergarten program in a school district or
charter school in this state or attended a program for preschool children with
disabilities.
(vi) Has
not previously attended a governmental primary or secondary school but is
currently eligible to enroll in a program for preschool children with
disabilities in this state.
(vii) Was
counted among the average daily membership for the purposes of determining
state funding at any governmental primary or secondary school in this state in
the prior fiscal year, including as an Arizona online instruction student.
8. 9. "Treasurer"
means the office of the state treasurer. END_STATUTE
Sec. 47. Section
15-2402, Arizona Revised Statutes, is amended to read:
START_STATUTE15-2402. Arizona
empowerment scholarship accounts; funds
A. Arizona
empowerment scholarship accounts are established to provide options for the
education of students in this state.
B. To
enroll a qualified student for an Arizona empowerment scholarship account, the
parent of the qualified student must sign an agreement to do all of the
following:
1. Use
a portion of the Arizona empowerment scholarship account monies allocated
annually to provide an education for the qualified student in at least the
subjects of reading, grammar, mathematics, social studies and science, unless
the Arizona empowerment scholarship account is allocated monies according to a
transfer schedule other than quarterly transfers pursuant to section 15-2403,
subsection F.
2. Not
enroll the qualified student in a school district or charter school and release
the school district from all obligations to educate the qualified student.
This paragraph does not relieve the school district or charter school that the
qualified student previously attended from the obligation to conduct an
evaluation pursuant to section 15-766.
3. Not
accept a scholarship from a school tuition organization pursuant to title 43
concurrently with an Arizona empowerment scholarship account for the qualified
student in the same year a parent signs the agreement pursuant to this section.
4. Use
monies deposited in the qualified student's Arizona empowerment scholarship
account only for the following expenses of the qualified student:
(a) Tuition
or fees at a qualified school.
(b) Textbooks
required by a qualified school.
(c) If
the qualified student meets any of the criteria specified in section 15-2401,
paragraph 7 8, subdivision
(a), item (i), (ii) or (iii) as determined by a school district or by an
independent third party pursuant to section 15-2403, subsection I, the
qualified student may use the following additional services:
(i) Educational
therapies from a licensed or accredited practitioner or provider,
including and up to any amount not covered by insurance if the expense is
partially paid by a health insurance policy for the qualified student.
(ii) A
licensed or accredited paraprofessional or educational aide.
(iii) Tuition
for vocational and life skills education approved by the department.
(iv) Associated
goods and services that include educational and psychological evaluations,
assistive technology rentals and braille translation goods and services
approved by the department.
(d) Tutoring
or teaching services provided by an individual or facility accredited by a
state, regional or national accrediting organization.
(e) Curricula
and supplementary materials.
(f) Tuition
or fees for a nonpublic online learning program.
(g) Fees
for a nationally standardized norm-referenced achievement test, an advanced
placement examination or any exams related to college or university admission.
(h) Tuition
or fees at an eligible postsecondary institution.
(i) Textbooks
required by an eligible postsecondary institution.
(j) Fees
to manage the Arizona empowerment scholarship account.
(k) Services
provided by a public school, including individual classes and extracurricular
programs.
(l) Insurance
or surety bond payments.
(m) Uniforms
purchased from or through a qualified school.
(n) If
the qualified student meets the criteria specified in section 15-2401,
paragraph 7 8, subdivision
(a), item (i), (ii) or (iii) and if the qualified student is in the second year
prior to the final year of a contract executed pursuant to this article, costs
associated with an annual education plan conducted by an independent evaluation
team. The department shall prescribe minimum qualifications for independent
evaluation teams pursuant to this subdivision and factors that teams must use
to determine whether the qualified student shall be eligible to continue to
receive monies pursuant to this article through the school year in which the
qualified student reaches twenty-two years of age. An
independent evaluation team that provides an annual education plan pursuant to
this subdivision shall submit a written report that summarizes the results of
the evaluation to the parent of the qualified student and to the department on
or before July 31. The written report submitted by the independent
evaluation team is valid for one year. If the department determines
that the qualified student meets the eligibility criteria prescribed in the
annual education plan, the qualified student is eligible to continue to receive
monies pursuant to this article until the qualified student reaches twenty-two
years of age, subject to annual review. A parent may appeal the
department's decision pursuant to title 41, chapter 6, article
10. As an addendum to a qualified student's final-year contract, the
department shall provide the following written information to the parent of the
qualified student:
(i) That
the qualified student will not be eligible to continue to receive monies
pursuant to this article unless the results of an annual education plan
conducted pursuant to this subdivision demonstrate that the qualified student
meets the eligibility criteria prescribed in the annual education plan.
(ii) That
the parent is entitled to obtain an annual education plan pursuant to this
subdivision to determine whether the qualified student meets the eligibility
criteria prescribed in the annual education plan.
(iii) A
list of independent evaluation teams that meet the minimum qualifications
prescribed by the department pursuant to this subdivision.
(o) Public
transportation services in this state, including a commuter pass for the
qualified student, or transportation network services as defined in section 28-9551
between the qualified student's residence and a qualified school in which the
qualified student is enrolled.
5. Not
file an affidavit of intent to homeschool pursuant to section 15-802,
subsection B, paragraph 2 or 3.
6. Not
use monies deposited in the qualified student's account for any of the
following:
(a) Computer
hardware or other technological devices, except as otherwise allowed under
paragraph 4, subdivision (c) of this subsection.
(b) Transportation
of the pupil, except for transportation services as described in
paragraph 4, subdivision (o) of this subsection.
(c) Consumable
educational supplies, including paper, pens or markers.
C. In
exchange for the parent's agreement pursuant to subsection B of this section,
the department shall transfer from the monies that would otherwise be allocated
to a recipient's prior school district, or if the child is currently eligible to
attend kindergarten, the monies that the department determines would otherwise
be allocated to a recipient's expected school district of attendance, to the
treasurer for deposit into an Arizona empowerment scholarship account an amount
that is equivalent to ninety percent of the sum of the base support level and
additional assistance prescribed in sections 15-185 and 15-943 for
that particular student if that student were attending a charter school.
D. A
child who participates in an Arizona empowerment scholarship account continues
to be entitled to an equitable share of the funding that would otherwise be
allocated to a school district or charter school for that child from the
classroom site fund established by section 15-977. To ensure this
equity, and in recognition of the fact a child's primary instruction may take
place in a variety of settings:
1. Notwithstanding
any other law, a child who is participating in an Arizona empowerment
scholarship account shall be included in the estimated statewide weighted student
count for the purposes of calculating the per pupil amount from the classroom
site fund pursuant to section 15-977, subsection G, paragraph 1 as long
as that student continues to participate in an Arizona empowerment scholarship
account.
2. In
addition to any amounts transferred from the classroom site fund to a school
district or charter school, the department shall annually transfer from the
fund to the treasurer for deposit in each Arizona empowerment scholarship
account an amount that is equivalent to the per pupil amount multiplied by the
student's weighted count that would be calculated if that student were
attending the student's prior school district or charter school or, if the
child is an incoming kindergartener, the child's expected school district of
attendance.
3. Notwithstanding
any other law, the amount transferred to each Arizona empowerment scholarship
account pursuant to paragraph 2 of this subsection shall count toward the total
amount the department is required to allocate and transfer to each account
pursuant to subsection C of this section and may be used for any Arizona
empowerment scholarship account expenditure allowed pursuant to subsection B of
this section, notwithstanding any other law.
D. E. The department of
education empowerment scholarship account fund is established consisting of
monies appropriated by the legislature. The department shall administer the
fund. Monies in the fund are subject to legislative
appropriation. Monies in the fund shall be used for the department's
costs in administering Arizona empowerment scholarship accounts under this
chapter. Monies in the fund are exempt from the provisions of
section 35-190 relating to lapsing of appropriations. If the
number of Arizona empowerment scholarship accounts significantly increases
after fiscal year 2020-2021, the department may request an increase in
the amount appropriated to the fund in any subsequent fiscal year in the budget
estimate submitted pursuant to section 35-113. The department
shall list monies in the fund as a separate line item in its budget estimate.
E. F. The state treasurer
empowerment scholarship account fund is established consisting of monies
appropriated by the legislature. The state treasurer shall
administer the fund. Monies in the fund shall be used for the state
treasurer's costs in administering the Arizona empowerment scholarship accounts
under this chapter. If the number of Arizona empowerment scholarship
accounts significantly increases after fiscal year 2020-2021, the state
treasurer may request an increase in the amount appropriated to the fund in any
subsequent fiscal year in the budget estimate submitted pursuant to section 35-113. Monies
in the fund are subject to legislative appropriation. Monies in the fund are
exempt from the provisions of section 35-190 relating to lapsing of
appropriations. The state treasurer shall list monies in the fund as a
separate line item in its budget estimate.
F. G. A parent must renew
the qualified student's Arizona empowerment scholarship account on an annual
basis.
G. H. Notwithstanding any
changes to the student's multidisciplinary evaluation team plan, a student who
has previously qualified for an Arizona empowerment scholarship account remains
eligible to apply for renewal until the student finishes high school.
H. I. If a parent does not
renew the qualified student's Arizona empowerment scholarship account for a
period of three academic years, the department shall notify the parent that the
qualified student's account will be closed in sixty calendar
days. The notification must be sent through certified mail, email
and telephone, if applicable. The parent has sixty calendar days to
renew the qualified student's Arizona empowerment scholarship account. If
the parent chooses not to renew or does not respond in sixty calendar days, the
department shall close the account and any remaining monies shall be returned
to the state.
I. J. A signed agreement
under this section constitutes school attendance required by section 15-802.
J. K. A qualified school or
a provider of services purchased pursuant to subsection B, paragraph 4 of this
section may not share, refund or rebate any Arizona empowerment scholarship
account monies with the parent or qualified student in any manner.
K. L. Notwithstanding
subsection I of this section, on the qualified student's graduation from
a postsecondary institution or after any period of four consecutive years after
high school graduation in which the student is not enrolled in an eligible
postsecondary institution, but not as long as the account holder
continues using a portion of account monies for eligible expenses each year and
is in good standing, the qualified student's Arizona empowerment
scholarship account shall be closed and any remaining monies shall be returned
to the state.
L. M. Monies received
pursuant to this article do not constitute taxable income to the parent of the
qualified student. END_STATUTE
Sec. 48. Section
15-2403, Arizona Revised Statutes, is amended to read:
START_STATUTE15-2403. Arizona
empowerment scholarship accounts; administration; appeals; audit; rules; policy
handbook
A. The
treasurer may contract with private financial management firms to manage
Arizona empowerment scholarship accounts.
B. The
department shall conduct or contract for annual audits of Arizona empowerment
scholarship accounts to ensure compliance with section 15-2402,
subsection B, paragraph 4. The department shall also conduct or
contract for random, quarterly and annual audits of Arizona empowerment
scholarship accounts as needed to ensure compliance with section 15-2402,
subsection B, paragraph 4.
C. The
department may remove any parent or qualified student from eligibility for an
Arizona empowerment scholarship account if the parent or qualified student
fails to comply with the terms of the contract or applicable laws, rules or
orders or knowingly misuses monies or knowingly fails to comply with the terms of
the contract with intent to defraud and shall notify the
treasurer. The department shall notify the treasurer to suspend the
account of a parent or qualified student and shall notify the parent or
qualified student in writing that the account has been suspended and that no
further transactions will be allowed or disbursements made. The notification
shall specify the reason for the suspension and state that the parent or
qualified student has ten days, not including weekends, to respond and take
corrective action. If the parent or qualified student refuses or
fails to contact the department, furnish any information or make any report
that may be required for reinstatement within the ten-day period, the
department may remove the parent or qualified student pursuant to this
subsection.
D. A
parent may appeal to the state board of education any administrative decision
the department makes pursuant to this article, including determinations of
allowable expenses, removal from the program or enrollment
eligibility. The department shall notify the parent in writing that
the parent may appeal any administrative decision under this article and the
process by which the parent may appeal at the same time the department notifies
the parent of an administrative decision under this article. The state
board of education shall establish an appeals process, and the department shall
post this information on the department's website in the same location as the
policy handbook developed pursuant to subsection J of this section.
E. The
state board of education may refer cases of substantial misuse of monies to the
attorney general for the purpose of collection or for the purpose of a criminal
investigation if the state board of education obtains evidence of fraudulent
use of an account.
F. The
department shall make quarterly transfers of the amount calculated pursuant to
section 15-2402, subsection C to the treasurer for deposit in the Arizona
empowerment scholarship account of each qualified student, except the
department may make transfers according to another transfer schedule if the
department determines a transfer schedule other than quarterly transfers is
necessary to operate the Arizona empowerment scholarship account.
G. The
department shall accept applications between July 1 and June 30 of each year.
The department shall enroll and issue an award letter to eligible applicants
within forty-five thirty days after
receipt of a completed application and all required
documentation. On or before May 30 of each year, the department
shall furnish to the joint legislative budget committee an estimate of the
amount required to fund Arizona empowerment scholarship accounts for the
following fiscal year. The department shall include in its budget
request for the following fiscal year the amount estimated pursuant to section
15-2402, subsection C for each qualified student.
H. The
state board of education may adopt rules and policies necessary to administer
Arizona empowerment scholarship accounts, including rules and policies:
1. For
establishing an appeals process pursuant to subsection D of this section.
2. For
conducting or contracting for examinations of the use of account monies.
3. For
conducting or contracting for random, quarterly and annual reviews of accounts.
4. For
establishing or contracting for the establishment of an online anonymous fraud
reporting service.
5. For
establishing an anonymous telephone hotline for fraud reporting.
6. That
require a surety bond or insurance for account holders.
I. The
department shall contract with an independent third party for the purposes of
determining whether a qualified student is eligible to receive educational
therapies or services pursuant to section 15-2402, subsection B,
paragraph 4, subdivision (c).
J. On
or before July 1 of each year, the department shall develop an applicant and
participant handbook that includes information relating to policies and
processes of Arizona empowerment scholarship accounts. The policy handbook
shall comply with the rules adopted by the state board of education pursuant to
this section. the department shall post the handbook on its website.
K. except
for cases in which the attorney general determines that a parent or account
holder has committed fraud, any expenditure from an Arizona empowerment
scholarship account for a purchase that is deemed ineligible pursuant to
section 15-2402 and that is subsequently repaid by the parent or account holder
shall be credited back to the Arizona empowerment scholarship account balance
within thirty days after the receipt of payment. END_STATUTE
Sec. 49. Section
35-185.01, Arizona Revised Statutes, is amended to read:
START_STATUTE35-185.01. Treasurer's
warrant notes; form; redemption; exception
A. If
monies are not available to pay warrants, checks or substitute checks, or
electronic funds transfer vouchers of the department of administration
presented to the state treasurer pursuant to section 35-185, the
treasurer, in lieu of payment, shall issue and shall exchange or sell a
treasurer's warrant note or notes in the amount or amounts equal to the sum of
the face value of the warrants, checks or substitute checks, or electronic
funds transfer vouchers presented for payment. Treasurer's warrant notes shall
be issued in lieu of payment of state general fund warrants, checks or
substitute checks, or electronic funds transfer vouchers only or in exchange
for previously issued treasurer's warrant notes. Before issuing
warrant notes, the state treasurer is not required to divest from program
funding obligations issued pursuant to section 15-2157 41-5857, board funding obligations issued pursuant to
section 28-7678, monies in the budget stabilization fund or operating
monies invested in securities that are earning a rate of interest greater than
the cost of issuing warrant notes. For the purposes of this
subsection, "monies are not available" means an operating cash
balance is not available to pay warrants, checks or substitute checks, or
electronic funds transfer vouchers except for those operating monies invested
in program funding obligations issued pursuant to section 15-2157 41-5857, board funding obligations issued pursuant to
section 28-7678, monies in the budget stabilization fund or operating
monies invested in securities that are earning a rate of interest greater than
the total cost of issuing any warrant notes.
B. The
face value of a treasurer's warrant note may be equal to the sum of any
combination of warrants, checks or substitute checks, and electronic funds
transfer vouchers presented for payment. The treasurer may sell
warrant notes at public or private sale and shall use the proceeds of the sale
to pay warrants, checks or substitute checks, and electronic funds transfer vouchers
previously presented pursuant to section 35-185. Treasurer's
warrant notes shall not be sold at a price below their face value.
C. Each
treasurer's warrant note sold or exchanged shall be dated the date the
respective warrants are presented for payment. If the date of
delivery of a treasurer's warrant note that is sold is later than the date of
presentment of the respective warrant or warrants, the purchaser of the
treasurer's warrant note shall pay the accrued interest as an additional
purchase price. The accrued interest shall be paid to the holder of
the respective unpaid warrant or warrants, which shall be deemed to bear
interest at the same rate as the respective treasurer's warrant note from
presentment to payment from the proceeds of warrant notes sold.
D. The
treasurer shall establish a maturity date for each treasurer's warrant note of
not longer than ninety days from the date of initial issue. The
treasurer may specify that treasurer's warrant notes may be called for
redemption at any time before the specified maturity date.
E. The
treasurer shall pay interest from the treasurer's warrant note redemption fund
on the face value of each warrant note at the rate established by the state
treasurer at the time of issuing the warrant note. Interest shall be
paid from the date of the treasurer's warrant note until the maturity date or
redemption date. The treasurer shall establish the interest rate
before the exchange or sale of warrant notes at a rate of not more than the
maximum rate permitted by the state loan commissioners.
F. The
state loan commissioners, at a meeting called and chaired by the state
treasurer, shall fix or change the maximum rate of interest that may be paid on
warrant notes. Any change of the maximum allowable rate of interest
as established by the state loan commissioners shall not affect warrant notes
issued before the date of the change.
G. Each
treasurer's warrant note shall be signed by the treasurer or the treasurer's
designated agent and countersigned by the director of the department of
administration or the director's designated agent. The required
signatures may be electronic signatures. All treasurer's warrant notes shall
be substantially in the following form:
Treasurer's warrant note
(20__ to ____ fiscal year)
Number _____________________
Phoenix, Arizona _________________, 20__
On
_________, 20__, the treasurer of the state of Arizona will pay to the order of
_______________ at ___________________ $_____________ with interest at _______
per annum from the date of issuance until paid (calculated on a 365/366 day
basis).
(insert
early redemption provisions)
____________________________ ____________________________
(Countersigned)
State
Treasurer
Director of
the department
of
administration
H. Treasurer's
warrant notes may be exchanged or sold for the combined face value of any
number of treasurer's warrant notes previously issued. Except for those
treasurer's warrant notes issued in exchange for or to redeem treasurer's
warrant notes previously issued, treasurer's warrant notes may not be issued,
exchanged or sold except in payment of or to provide monies to pay warrants,
checks or substitute checks, and electronic funds transfer vouchers presented
for payment as provided in section 35-185.
I. Treasurer's
warrant notes issued in any fiscal year shall be numbered consecutively
beginning with the number one. Treasurer's warrant notes shall be
redeemed in numerical order. If the treasurer has sufficient monies to
pay only a portion of the lowest numbered outstanding warrant note, the
treasurer may deposit the monies with the paying agent pursuant to subsection K
of this section or call in the lowest numbered warrant note, before maturity
according to its terms, and pay the bearer the amount available and issue to
the bearer a new warrant note bearing a number that will preserve, for the new
warrant note, the priority of the partially paid warrant note and bearing a
value equal to the amount of principal and interest remaining unpaid. The
new warrant note and the partial payment of principal and interest on the
partially paid warrant note shall be exchanged for the partially paid warrant
note. The new warrant note shall pay interest at the same rate as
the partially paid warrant note. The treasurer may make the changes
in the form and date of the new warrant note as necessary to reflect the amount
of unpaid interest on the partially paid warrant note.
J. The
treasurer may include in the form of the treasurer's warrant notes provisions
regarding the redemption and payment of treasurer's warrant notes before
maturity as are consistent with subsections I and K of this section and section
35-185.02. If prior redemption is to be a provision of a
treasurer's warrant note, the note shall provide a method to notify the holder
of the note by publication or written, telegraphic or electronic means as
chosen by the treasurer.
K. The
treasurer may appoint a paying agent to facilitate the redemption and payment
of treasurer's warrant notes. Monies deposited with the paying agent
shall be allocated to pay the principal of, interest on and any prior
redemption premiums associated with treasurer's warrant notes in numerical
order. A treasurer's warrant note is deemed paid for all purposes of
this section and section 35-185.02 when there is deposited with the
paying agent sufficient monies to pay all amounts when due on the treasurer's
warrant note and all amounts when due on all outstanding treasurer's warrant
notes bearing a lower number. A paying agent appointed pursuant to
this subsection shall provide security deposits as required by the treasurer.
L. When
the treasurer or the paying agent, if payment is made to a paying agent,
pursuant to subsection K of this section, pays treasurer's warrant notes or
when the warrant notes are redeemed, the treasurer or paying agent shall mark
on the face of the treasurer's warrant notes the word "cancelled" or
shall cancel the warrant notes by electronic means indicating the date of
cancellation and shall promptly present the notes to the director of the
department of administration who shall give the state treasurer a receipt
therefor.
M. If
the state loan commissioners determine that it will result in a lower net
effective interest rate on one, some or all warrant notes to be issued by the
treasurer during the current fiscal year, the commissioners may authorize the
treasurer to purchase letters of credit and to incur and pay insurance
premiums, attorney fees or other related costs incurred with respect to treasurer's
warrant notes. All such payments shall be treated in the same manner
as interest to be paid on treasurer's warrant notes and shall be paid from the
treasurer's warrant note redemption fund.
N. If
treasurer's warrant notes are to be exchanged for warrants, checks or
substitute checks, or electronic funds transfer vouchers held by banks or
savings and loan associations, the treasurer may enter into agreements with
such banks or savings and loan associations to provide for the issuance,
reissuance and custody of treasurer's warrant notes, the fixing of the interest
rates on the treasurer's warrant notes and the method of giving notice to the
holders of the notes. Such agreements may provide for a book entry
system for the treasurer's warrant notes or may provide for the issuance of one
note with an appropriate grid on the reverse, which shall show the advancements
made by the banks or savings and loan associations and also the payments of
interest and reductions of principal. Such agreements may be continuing
in nature, may be executed at any time and may apply to any treasurer's warrant
notes exchanged for either warrants, checks or substitute checks, or electronic
funds transfer vouchers or treasurer's warrant notes at any time during the
remainder of the fiscal year in which the agreement is made. The
agreements shall provide a method to preserve the priority of, interest rate on
and other terms of each treasurer's warrant note exchanged pursuant to the
agreement. Any such agreement shall not become effective until
approved by the state loan commissioners. END_STATUTE
Sec. 50. Section
35-212, Arizona Revised Statutes, is amended to read:
START_STATUTE35-212. Injunctive
and civil remedies; time limit; definition
A. The
attorney general in the attorney general's discretion may bring an action in
the name of the this state to:
1. Enjoin
the illegal payment of public monies, including violations of section 11-952
and title 41, chapter 23.
2. Recover
illegally paid public monies plus twenty percent of that amount together with
interest and costs, including reasonable attorney fees, to be paid to the state
treasurer or other appropriate official, or, in the
case of public monies of a political subdivision that did not originate or were
not received from this state, to the political subdivision, to the credit of
the fund from which the payment was made.
B. The
attorney general may bring an action to recover illegally paid public monies
against:
1. Any
person who received the illegal payment.
2. The
public body or the public officer acting in the officer's official capacity who
ordered or caused the illegal payment or has supervisory authority over the
person that ordered or caused the illegal payment.
3. The
public official, employee or agent who ordered or caused the illegal payment,
including a payment ordered or caused to be made without authorization of law.
4. The
public official, employee or agent of this state, a political subdivision of
this state or a budget unit who knowingly uses public monies or other public
resources, including email, equipment or compensated work time, to organize,
plan or execute any activity that impedes or prevents a public school from operating
for any period of time, unless the public official, employee or agent is acting
in good faith and in furtherance of the official's, employee's or agent's
official duties.
5. The
teacher, administrator or other employee of a school district or charter school
or the state employee whose violation of section 15-717.02 resulted in an
illegal use of public monies.
C. A
public official, employee or agent of this state, a
political subdivision of this state or a budget unit who is charged with
collecting, receiving, safekeeping, transferring or disbursing public monies
may be held personally liable for an illegal payment of public monies,
including payment made without authorization of law.
D. A
public official, employee or agent of this state, a political subdivision of
this state or a budget unit who is responsible for disbursing, collecting,
receiving, safekeeping or transferring public monies pursuant to a warrant,
check or substitute check, electronic funds transfer voucher or other form of
claim that does not originate from the public official, employee or agent
making the disbursal may not be held personally liable for illegal payments
made pursuant to such warrants, checks or substitute checks, electronic funds
transfer vouchers or other claims unless the public official, employee or agent
knew or should have known that a warrant, check or substitute check, electronic
funds transfer voucher or other claim would result in an illegal payment of
public monies.
E. An
action brought pursuant to this article is subject to title 12, chapter 7,
article 2. If the action is brought by the attorney general, the
action must be brought within five years after the date an illegal payment was
ordered and section 12-821.01 does not apply to the action.
F. For
the purposes of this section, "public monies" includes all monies
coming into the lawful possession, custody or control of budget units, state
agencies, boards, commissions or departments or a state officer, employee or
agent in an official capacity, and
all monies coming into the lawful possession, custody or control of a tax-supported political subdivision or an
officer, employee or agent of a tax-supported political subdivision in an
official capacity
irrespective of the source from which, or the manner in which, the monies are
received. END_STATUTE
Sec. 51. Section
35-313, Arizona Revised Statutes, is amended to read:
START_STATUTE35-313. Investment
of trust and treasury monies; loan of securities
A. The
state treasurer shall invest and reinvest trust and treasury monies in any of
the following items:
1. Obligations
issued or guaranteed by the United States or any of its agencies, sponsored
agencies, corporations, sponsored corporations or instrumentalities.
2. Repurchase
agreements collateralized with securities that are authorized for investment
pursuant to state law and that are purchased from authorized counterparties
that have adequate capital and liquidity as determined by the state treasurer.
3. Bonds
or other evidences of indebtedness of this state or any of the counties or
incorporated cities, towns or duly organized school districts.
4. Commercial
paper whose issuer is investment grade for short-term obligations by any
two nationally recognized statistical rating organizations.
5. Bills
of exchange or time drafts known as banker's acceptances that are drawn on and
accepted by a commercial bank.
6. Negotiable
certificates of deposit issued by a nationally or state-chartered bank or
savings and loan association.
7. Bonds,
debentures, notes or other evidences of indebtedness that are denominated in
United States dollars and that carry an investment grade rating by a nationally
recognized bond rating agency.
8. Securities
of or any other interests in any open-end or closed-end management
type investment company or investment trust, including exchange traded products
whose underlying investments are invested in securities allowed by state law,
registered under the investment company act of 1940 (54 Stat. 789; 15 United
States Code sections 80a-1 through 80a-64), as
amended. For any treasurer investment pool that seeks to maintain a
constant share price, both of the following apply:
(a) The
investment company or investment trust takes delivery of the collateral for any
repurchase agreement either directly or through an authorized custodian.
(b) The
investment policy of the investment company or investment trust includes
seeking to maintain a constant share price.
9. Certificates
of deferred property taxes as provided by section 42-17309.
10. Treasurer's
warrant notes issued pursuant to section 35-185.01 or registered warrants
of a county issued pursuant to section 11-605, if the yield is equal to
or greater than yields on eligible investment instruments of comparable
maturities.
11. Shares
in the treasurer's local government investment pools pursuant to section 35-326
if investment policies of the pool seek to maintain a constant share price.
12. Shares
in the treasurer's long-term local government investment pools, the terms
of which are determined by the state board of investment, pursuant to section
35-326.01.
13. Subject
to subsection D of this section, state transportation board funding obligations
delivered pursuant to section 28-7678.
14. Deposits
placed in accordance with the procedures prescribed in section 35-323.01.
15. Institutional
common trust funds whose underlying investments are invested in securities
allowed by state law.
16. Program
funding obligations delivered by the credit enhancement eligibility board
pursuant to section 15-2157 41-5857.
B. In
case of default or failure to honor a county treasurer's warrant, the state
treasurer may withhold the first state shared revenues that would otherwise be
distributed to the defaulting county in the amount necessary to honor the note,
including accrued interest to and beyond the date of default.
C. The
state treasurer may contract to loan securities owned by the trust funds and
operating monies deposited in the investment pools pursuant to section 35-316,
subsection B to the financial or dealer community through one or more of the
entities listed in section 35-317, subsection A, or authorized by the
board of investment pursuant to section 35-311, subsection E, if the
borrower transfers collateral to the state treasurer or acting agent of the
state in the form of cash or securities authorized for investment pursuant to
state law. Collateral posted in the form of cash shall be in an
amount equal to at least one hundred percent of the market value of the loaned
securities as agreed. Collateral posted in the form of securities
shall be in an amount of at least one hundred two percent of the market value
of the loaned securities as established from time to time by the board of
investment. The loaned securities shall be valued as to market value
daily, and, if necessary, the borrower shall post additional collateral, as
agreed, to ensure that the required margin is maintained. The state
treasurer may collect from the borrower all dividends, interest, premiums,
rights and other distributions to which the lender of securities would
otherwise be entitled. The state treasurer may terminate the
contract on at least five business days' notice, as agreed, and the borrower
may terminate the contract on at least two business days' notice, as agreed.
D. The
state treasurer shall invest operating monies in state transportation board
funding obligations delivered pursuant to section 28-7678 pursuant to the
following:
1. The
state treasurer shall liquidate investments of operating monies if necessary to
invest in state transportation board funding obligations, except that if
operating monies in the state general fund fall below an $800,000,000 average
over the previous twelve consecutive months, the state treasurer is not
required to purchase state transportation board funding obligations pursuant to
this subsection.
2. Each
series of state transportation board funding obligations shall bear interest at
a fixed interest rate equal to the mean bid-ask price of the United
States treasury obligation with a maturity date closest to the maturity date of
the state transportation board funding obligation as determined by the pricing
system used by the state treasurer before the date the state treasurer receives
a certificate from the state transportation board that states the board's
determination to deliver an obligation to the state treasurer and the
anticipated delivery date of the obligation. The delivery date shall
be between fifteen and sixty days after the day the state treasurer receives
the certificate.
3. The
state treasurer shall notify the state transportation board and the director of
the department of transportation in writing when the operating monies fall
below $400,000,000. If operating monies fall below $200,000,000, the
state treasurer may call the investment in the state transportation board
funding obligations in $25,000,000 increments up to the amount that the
operating monies are below $200,000,000. The state treasurer shall
give the state transportation board and the director of the department of
transportation at least fifteen days' notice of the call. END_STATUTE
Sec. 52. Section
37-221, Arizona Revised Statutes, is amended to read:
START_STATUTE37-221. Sale
or lease of state lands for public education purposes
A. Notwithstanding
any other law, school districts may enter into leases of state land for more
than ten years if the land is to be used for public education
purposes. These leases shall be granted according to the
constitution of this state and department rules. School districts
shall make all applications apply
for leases for educational purposes on forms prepared and furnished by the
department, and an authorized agent of the governing board of the school
district shall sign and swear to the application. A school district
shall not use lands leased to it under this section except for public educational education purposes.
B. The
department shall develop procedures to give priority to the procedures used for
school districts to lease state lands for public education
purposes. The department shall develop procedures to simplify the
procedures used for school districts to lease state lands for public education
purposes. The procedures shall specify that any leases entered into
and any improvements made to properties leased pursuant to this section using
state monies shall comply with the requirements of title 15 41, chapter 16 56.
C. The
department shall develop procedures to give priority to the procedures used for
school districts to purchase state lands for public education
purposes. The department shall develop procedures to simplify the
procedures used for school districts to purchase state lands for public
education purposes. The procedures shall specify that any purchase
of school lands by school districts using state monies shall comply with the
requirements of title 15 41, chapter
16 56.
D. Any
monies received by the department from the lease of state public school land
for public education purposes pursuant to this section shall be transferred to the school facilities board for deposit in the new school
facilities fund established by section 15-2041 41-5741.
E. For
the purposes of this section, a school district shall be considered to have
abandoned a lease when leased property and any improvements are no longer being
used for public education purposes. END_STATUTE
Sec. 53. Section
37-521, Arizona Revised Statutes, is amended to read:
START_STATUTE37-521. Permanent
state school fund; composition; use
A. After
any appropriation pursuant to section 37-527, the permanent state school fund
shall consist of:
1. The
proceeds of all lands granted to the state by the United States for the support
of common schools.
2. All
property which accrues to the state by escheat or forfeiture.
3. All
property donated for the benefit of the common schools, unless the terms of the
donation otherwise provide.
4. All
unclaimed shares and dividends of any corporation incorporated under the laws
of this state.
5. The
proceeds of sale of timber, mineral, gravel or other natural products or
property from school lands and state lands other than those granted for
specific purposes.
6. The
residue of the lands granted for payment of the bonds and accrued interest
issued by Maricopa, Pima, Yavapai and Coconino counties, after the purpose of
the grant has been satisfied, and the five per cent of the proceeds of sales of
public lands lying within this state sold by the United States subsequent to
admission of this state into the union, as granted by the enabling act.
B. The
fund shall be and remain a perpetual fund and distributions from the fund
pursuant to article X, section 7, Constitution of Arizona, plus monies derived
from the rental of the lands and property, interest and accrued rent for that
year credited pursuant to section 37-295 and interest paid on installment
sales, shall be used as follows:
1. If
there are outstanding state school facilities revenue bonds pursuant to title 15 41, chapter 16 56, article 6, outstanding qualified zone academy bonds
pursuant to title 15 41, chapter 16 56, article 7 or outstanding state
school trust revenue bonds issued to correct existing deficiencies, the state
treasurer and the state land department shall annually transfer to the state
school facilities revenue bond debt service fund established in section 15-2054 41-5754, the state
school improvement revenue bond debt service fund established in section 15-2084 41-5784 and the state
school trust revenue bond debt service fund the amount that is necessary to pay
that fiscal year's debt service on outstanding state school facilities revenue
bonds, qualified zone academy bonds and state school trust revenue bonds,
before transferring amounts for any other uses.
2. If
there are no outstanding state school facilities revenue bonds pursuant to title
15 41, chapter 16 56, article 6 or if the amount of monies available under this
subsection exceeds the amount required under paragraph 1 of this subsection,
the monies are subject to legislative appropriation to the new school
facilities fund established by section 15-2041 41-5741.
3. If
the amount of monies available under this subsection exceeds the amount
required under paragraphs 1 and 2 of this subsection, the legislature may
annually appropriate an amount to be used as provided in section 15-971,
subsection H, except that the amount appropriated may not exceed the amount
appropriated from the permanent state school fund and from the rent and
interest paid on installment sales for this purpose in fiscal year 2000-2001.
4. Notwithstanding
paragraphs 1, 2 and 3 of this subsection, from and after June 30, 2001, any
expendable earnings under this subsection that exceed the fiscal year 2000-2001
expendable earnings shall be deposited in the classroom site fund established
by section 15-977. END_STATUTE
Sec. 54. Section
41-1092.02, Arizona Revised Statutes, is amended to read:
START_STATUTE41-1092.02. Appealable
agency actions; application of procedural rules; exemption from article
A. This
article applies to all contested cases as defined in section 41-1001 and
all appealable agency actions, except contested cases with or appealable agency
actions of:
1. The
state department of corrections.
2. The
board of executive clemency.
3. The
industrial commission of Arizona.
4. The
Arizona corporation commission.
5. The
Arizona board of regents and institutions under its jurisdiction.
6. The
state personnel board.
7. The
department of juvenile corrections.
8. The
department of transportation, except as provided in title 28, chapter 30,
article 2.
9. The
department of economic security except as provided in section 46-458.
10. The
department of revenue regarding:
(a) Income
tax or withholding tax.
(b) Any
tax issue related to information associated with the reporting of income tax or
withholding tax unless the taxpayer requests in writing that this article apply
and waives confidentiality under title 42, chapter 2, article 1.
11. The
board of tax appeals.
12. The
state board of equalization.
13. The
state board of education, but only in connection with contested cases and
appealable agency actions related to either:
(a) Applications
for issuance or renewal of a certificate and discipline of certificate holders
pursuant to sections 15-203, 15-534, 15-534.01, 15-535,
15-545 and 15-550.
(b) The
Arizona empowerment scholarship account program pursuant to title 15, chapter
19.
14. The
board of fingerprinting.
15. The
department of child safety except as provided in sections 8-506.01 and 8-811.
B. Unless
waived by all parties, an administrative law judge shall conduct all hearings
under this article, and the procedural rules set forth in this article and
rules made by the director apply.
C. Except
as provided in subsection A of this section:
1. A
contested case heard by the office of administrative hearings regarding taxes
administered under title 42 shall be subject to section 42-1251.
2. A
final decision of the office of administrative hearings regarding taxes
administered under title 42 may be appealed by either party to the director of
the department of revenue, or a taxpayer may file and appeal directly to the
board of tax appeals pursuant to section 42-1253.
D. Except
as provided in subsections A, B, E, F and G of this section and notwithstanding
any other administrative proceeding or judicial review process established in
statute or administrative rule, this article applies to all appealable agency
actions and to all contested cases.
E. Except
for a contested case or an appealable agency action regarding unclaimed
property, sections 41-1092.03, 41-1092.08 and 41-1092.09 do
not apply to the department of revenue.
F. The
board of appeals established by section 37-213 is exempt from:
1. The
time frames for hearings and decisions provided in section 41-1092.05,
subsection A, section 41-1092.08 and section 41-1092.09.
2. The
requirement in section 41-1092.06, subsection A to hold an informal
settlement conference at the appellant's request if the sole subject of an
appeal pursuant to section 37-215 is the estimate of value reported in an
appraisal of lands or improvements.
G. Auction
protest procedures pursuant to title 37, chapter 2, article 4.1 are exempt from
this article." END_STATUTE
Renumber to
conform
Page 103,
between lines 27 and 28, insert:
"Sec. 57. Section
41-2632, Arizona Revised Statutes, is amended to read:
START_STATUTE41-2632. Cooperative
purchasing authorized; definitions
A. Any
public procurement unit may either participate in, sponsor, conduct or
administer a cooperative purchasing agreement for the procurement
of to procure any materials, services,
professional services, construction or construction services with one or more
public procurement units or external procurement activities in accordance with
an agreement entered into between the participants. The cooperative
purchasing may include joint or multiparty contracts between public procurement
units and open-ended public procurement unit contracts that shall be are available to local public
procurement units. A nonprofit corporation may enter into an
agreement pursuant to this section if one or more of the parties involved is a
public procurement unit. An agreement entered into as provided in
this article is exempt from section 11-952, subsection D. Parties under
a cooperative purchasing agreement may:
1. Sponsor,
conduct or administer a cooperative agreement for the procurement
to procure or disposal dispose of any materials, services or construction.
2. Cooperatively
use materials or services.
3. Commonly
use or share warehousing facilities, capital equipment and other facilities.
4. Provide
personnel, except that the requesting public procurement unit shall pay the
public procurement unit providing the personnel the direct and indirect cost of
providing the personnel, in accordance with the agreement.
5. On
request, make available to other public procurement units informational,
technical or other services or software that may assist in improving the
efficiency or economy of procurement. The public procurement unit
furnishing the informational, technical or other services or software has the
right to request reimbursement for the reasonable and necessary costs of
providing these services or software.
6. Pursuant
to the rules for cooperative purchasing adopted by the director, purchase
materials, services, professional services, construction or construction
services under the terms of a contract between a vendor and a public
procurement unit or an external procurement activity without complying with the
requirements of sections 41-2533, 41-2534 and 41-2535.
B. The
division of school facilities board within the department of administration or school districts,
or both, may enter into an agreement with a public procurement unit pursuant to
this section for the purpose of procuring materials and services needed to
correct deficiencies in school facilities.
C. The
activities described in this section do not limit what parties may do under a
cooperative purchasing agreement.
D. A
nonprofit corporation operating as a public procurement unit under this
section, on request of the auditor general, shall provide to the auditor
general all documentation concerning any cooperative purchasing transaction the
public procurement unit administers under this section.
E. A
nonprofit corporation operating as a public procurement unit under this section
shall comply with all procurement laws applicable to the public procurement
unit participating in a cooperative purchasing transaction that the nonprofit
corporation administers.
F. This
section does not abrogate the responsibility of each public procurement unit to
ensure compliance with procurement laws that apply to the particular public
procurement, notwithstanding the fact that the cooperative purchase is
administered by a nonprofit corporation operating under this section.
G. Any
public procurement unit conducting or administering a cooperative purchasing
agreement for the procurement of to procure
construction services or professional services shall comply with the
requirements of section 34-603 or 41-2578.
H. For
the purposes of this section:
1. "Construction
services" has the same meaning prescribed in section 41-2503.
2. "Professional
services" has the same meaning prescribed in section 41-2578. END_STATUTE
Sec. 58. Section
41-3022.18, Arizona Revised Statutes, is amended to read:
START_STATUTE41-3022.18. School
facilities oversight board; termination July 1, 2022
A. The
school facilities oversight board terminates on July 1,
2022.
B. Title
15 41, chapter 16 56, articles 1, 2, 3, 4, 5, 6, 7, 8 and 9 and this section are
repealed on January 1, 2023 only if either:
1. The
board has no outstanding state school facilities revenue bonds issued pursuant
to title 15 41, chapter 16 56, article 6, no outstanding state
school improvement revenue bonds issued pursuant to title 15 41, chapter 16 56,
article 7 and no outstanding lease-to-own transactions pursuant to
sections 15-2004 41-5703,
15-2005 41-5704 and 15-2006 41-5705.
2. The
legislature has otherwise provided for paying or retiring any outstanding state
school facilities revenue bonds, any outstanding state school improvement
revenue bonds and any outstanding lease-to-own transactions.
C. If
neither of the conditions in subsection B of this section have has occurred on or before January 1, 2023, title 15 41, chapter 16 56, articles 1, 2, 3, 4, 5, 6, 7, 8 and 9 and this section are
repealed thirty days after the retirement of all revenue bonds issued pursuant
to title 15 41, chapter 16 56, articles 6 and 7 and any
outstanding lease-to-own transactions issued pursuant to sections 15-2004 41-5703, 15-2005 41-5704 and 15-2006 41-5705. END_STATUTE
Sec. 59. Section
41-3026.01, Arizona Revised Statutes, is amended to read:
START_STATUTE41-3026.01. Credit
enhancement eligibility board; termination July 1, 2026
A. The
credit enhancement eligibility board terminates on July 1, 2026.
B. Title
15 41, chapter 16 56, articles 10 and 11 are repealed on January 1, 2027 only if
both of the following apply:
1. The
board has no outstanding program funding obligations issued pursuant to title 15 41, chapter 16 56, article 11 or the legislature has otherwise provided for
paying or retiring any outstanding program funding obligations issued pursuant
to title 15 41, chapter 16 56, article 11.
2. There
are no outstanding guaranteed financings approved pursuant to title 15 41, chapter 16 56, article 11.
C. If
both of the conditions in subsection B of this section do not exist on January
1, 2027, title 15 41, chapter 16 56, articles 10 and 11 are repealed
thirty days after both of the conditions in subsection B of this section are
met. END_STATUTE
Sec. 60. Heading change
The article
heading of title 41, chapter 56, article 1, as transferred and renumbered, is
changed from "SCHOOL FACILITIES BOARD" to "SCHOOL
FACILITIES".
Sec. 61. Title
41, chapter 56, article 1, Arizona Revised Statutes, as transferred and
renumbered, is amended by adding sections 41-5701 and 41-5701.01, to read:
START_STATUTE41-5701. Definitions
In
this chapter, unless the context otherwise requires:
1. "Board"
means the school facilities oversight board.
2. "Division"
means the division of school facilities within the department of
administration. END_STATUTE
START_STATUTE41-5701.01. Division
of school facilities
A. The
division of school facilities is established within the department of
administration.
B. The
director of the department of administration shall appoint the director of the
division. END_STATUTE
Sec. 62. Section
41-5701.02, Arizona Revised Statutes, as transferred and renumbered, is amended
to read:
START_STATUTE41-5701.02. School
facilities oversight board; members; conflict of interest; violation;
classification; change orders; notification
A. The
school facilities oversight board is established within the division consisting of the following members who shall be are appointed by the governor
pursuant to section 38-211 in such a manner as to provide for approximate
geographic balance and approximate balance between public and private members:
1. One
member who is an elected member of a school district governing board with
knowledge and experience in the area of finance.
2. One
private citizen who represents an organization of taxpayers.
3. One
member with knowledge and experience in public procurement.
4. One
member who is a registered professional architect and who has current knowledge
and experience in school architecture.
5. One
member with knowledge and experience in school facilities management in a
public school system.
6. One
member with knowledge and experience in demographics.
7. One
member who is a teacher and who currently provides classroom instruction.
8. One
member who is a registered professional engineer and who has current knowledge
and experience in school engineering.
9. One
member who is an owner or officer of a private construction company whose
business does not include school construction.
1. One
member who represents a statewide organization of taxpayers.
2. One
member who is a registered professional architect.
3. One
member with knowledge and experience in school facilities management in a
public school system.
4. One
member who is a registered professional engineer.
5. Two
members who are owners or officers of a private construction company, who have
knowledge of and experience in constructing large commercial or government
buildings and whose businesses do not include school construction.
6. One
person who represents the business community.
B. In
addition to the members appointed pursuant to subsection A of this section: ,
1. The superintendent of public
instruction or the superintendent's designee shall serve as an advisory
nonvoting member of the school facilities oversight board.
2. The
director of the department of administration or the director's designee shall
serve as an advisory nonvoting member of the school facilities oversight board.
C. The
governor shall appoint a chairperson from members appointed pursuant to
subsection A of this section.
D. C. Members
of the school facilities oversight board serve four-year
terms. The school facilities oversight board
shall meet as often as the members deem necessary. A majority of the
members constitutes a quorum for the transaction of business.
E. D. The
unexcused absence of a member for more than three consecutive meetings is
justification for removal by a majority vote of the board. If the
member is removed, notice shall be given of the removal pursuant to section 38-292.
F. E. The
governor shall fill a vacancy by appointment of a qualified person as provided
in subsection A of this section.
G. F. Members
of the board who are employed by government entities are not eligible to
receive compensation. Members of the board who are not employed by
government entities are entitled to payment of one hundred fifty
dollars $150 for each meeting attended, prorated
for partial days spent for each meeting, up to two thousand five
hundred dollars $2,500 each year. All
members are eligible for reimbursement of expenses pursuant to title 38,
chapter 4, article 2. These expenses and the payment of compensation
are payable to a member from monies appropriated to the board from the new
school facilities fund.
H. G. Members
and employees of the school facilities oversight board
are subject to title 38, chapter 3, article 8.
I. H. In
addition to the requirements prescribed in subsection H
G of this section, employees of the school facilities oversight board may not have a direct or indirect financial
interest in any property purchased, facility constructed or contract financed
with monies made available by the board or any other public
monies. A person who knowingly violates this subsection is guilty of
a class 1 misdemeanor.
J. I. The
school facilities board division shall
establish policies and procedures relating to building renewal grant change
orders that include the following:
1. The
board staff division shall approve
or reject a change order within two business days.
2. If
a school district approves work referenced in a change order before the board division approves the change order,
the school district is responsible for the cost and construction of the
project.
K. J. The
school facilities board division
shall establish policies and procedures to ensure that it notifies school
districts in a uniform manner and at least annually of the services and funding
that are available from the board and
the division for facility construction, renovation
and repair projects. The board division
shall update and post this information on its website on or before July 1 of
each year.
L. K. The
school facilities board division
shall establish and maintain a list of the persons who are responsible for
facilities management at each school district in this state. A school district
shall promptly notify the board division
of any change to persons who are responsible for facilities management at that
school district. The board division
shall update and post this information on its website on or before July 1 of
each year.
M. L. Members
of the school facilities oversight board may not solicit,
accept or provide gifts that are prohibited by state law. END_STATUTE
Sec. 63. Section
41-5702, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5702. Powers
and duties; staffing; reporting requirements
A. The
school facilities board division
shall:
1. Make assessments of Assess school
facilities and equipment deficiencies and approve the distribution of grants as
appropriate.
2. Maintain
a database of school facilities to administer allow for the administration of the building
renewal grant fund and new school facilities formula and
the building renewal grant fund. The facilities listed in the
database must include all buildings that are owned by school
districts. The school facilities board division shall ensure that the database is updated on at least
an annual basis. Each school district shall report to the school facilities board no division not later
than September 1 of each year information as required by the school
facilities board for the administration of division to
administer the building renewal grant fund and computation
of by the school facilities oversight board to compute new
school facilities formula distributions, including the nature and cost of major
repairs, renovations or physical improvements to or replacement of building
systems or equipment that were made in the previous year and that were paid for
either with local monies or monies provided by the school
facilities board from the building renewal grant fund. Each
school district shall report any school or school buildings that have been
closed, that are vacant or partially used pursuant to section 15-119 and
that have been leased to another entity or that operate as a charter
school. The school facilities board division shall develop guidelines and definitions for the
reporting prescribed in this paragraph and may review or audit the information,
or both, to confirm the information submitted by a school
district. Notwithstanding any other provision of this chapter, if a
school district converts space that is listed in the database maintained
pursuant to this paragraph to space that will be used for administrative
purposes, the school district is responsible for any costs associated with the conversion converting, maintenance
maintaining and replacement of replacing that space. If a building is significantly
upgraded or remodeled, the school facilities board division shall adjust the age of that school facility in the
database as follows:
(a) Determine
the building capacity value as follows:
(i) Multiply
the student capacity of the building by the per pupil square foot capacity
established by section 15-2041 41-5741.
(ii) Multiply
the product determined in item (i) of this subdivision by the cost per square
foot established by section 15-2041
41-5741.
(b) Divide
the cost of the renovation by the building capacity value determined in
subdivision (a) of this paragraph.
(c) Multiply
the quotient determined in subdivision (b) of this paragraph by the currently
listed age of the building in the database.
(d) Subtract
the product determined in subdivision (c) of this paragraph from the currently
listed age of the building in the database, rounded to the nearest whole
number. If the result is a negative number, use zero.
3. Inspect, contract with a third party to inspect or certify school district
self-inspections of school buildings at least once every five years to
ensure compliance with the building adequacy standards prescribed in section 15-2011 41-5711, the accuracy
of the reporting of vacant and partially used buildings pursuant to this
subsection and routine preventive maintenance guidelines as prescribed in this
section with respect to construction of constructing
new buildings and maintenance of maintaining
existing buildings. The school facilities board division shall randomly select twenty school districts every
thirty months and inspect provide for
them to be inspected pursuant to this paragraph.
4. Review
and approve student population projections submitted by school districts to
determine to what extent school districts are entitled to monies to construct
new facilities pursuant to section 15-2041. The board shall make a final
determination within five months after the receipt of an application by a
school district for monies from the new school facilities fund.
5. Certify
that plans for new school facilities meet the building adequacy standards
prescribed in section 15-2011.
6. 4. Develop prototypical
elementary and high school designs. The board division shall review the design differences between the
schools with the highest academic productivity scores and the schools with the
lowest academic productivity scores. The board division shall also review the results of a valid and reliable
survey of parent quality rating in the highest performing schools and the
lowest performing schools in this state. The survey of parent quality rating
shall be administered by the department of education. The board division shall consider the design
elements of the schools with the highest academic productivity scores and
parent quality ratings in the development of elementary and high school
designs. The board division
shall develop separate school designs for elementary, middle and high schools
with varying pupil capacities.
7. 5. Develop application
forms, reporting forms and procedures to carry out the requirements of this
article, including developing and implementing policies and procedures to:
(a) Ensure
that the division and the school facilities oversight board, as applicable, notifies
notify school districts in a uniform manner of the services and funding
available for school districts from the board or the division for facility construction,
renovation and repair projects. The policies and procedures shall require the division and the board to
provide at least one annual communication to school districts in a manner
prescribed by the board division and
shall require each school district to develop and maintain a list of persons
who are responsible for facilities management at that school district.
(b) Establish
a project eligibility assessment for all projects submitted for building
renewal grant funding or emergency deficiencies correction funding, including
establishing standardized criteria for project eligibility. Before
the board division formally approves
a project, the staff of the board division may
review the costs and scope of the proposed project with persons and entities
that have submitted bids on the project.
(c) Ensure
that the division and the school facilities oversight board maintains maintain standardized
documentation of all projects submitted to the board and the
division for consideration to receive services or a financial award from
the board or the division. The board and the division shall maintain standardized documentation of
any project awarded monies by the board or the division,
including records of payments to school districts in a manner prescribed by the
board division. The
standardized documentation shall include the following as part of the
eligibility determination criteria:
(i) Whether
the problem that the proposed project intends to address caused the building or
facility to fall below the minimum school facility adequacy guidelines
prescribed in section 15-2011 41-5711.
(ii) Whether
the school district performed the routine preventive maintenance required pursuant to by section 15-2032
41-5731 on the building or facility.
(d) Require
a school district to submit contact information for each proposed project,
including the name, e-mail email address
and telephone number of persons who are responsible for facilities management
at the school district.
(e) Require
a school district to provide justification for each proposed project, including
all of the following:
(i) The
school district's use or planned use of the facility.
(ii) A
detailed description of the problem and the school district's recommended
solution.
(iii) Any
completed professional study regarding the proposed project.
(iv) Any
citation or report from government entities.
(v) The
estimated cost of the proposed project, with documentation.
(vi) The
project category.
(vii) A
description of any local funding that will be used for the proposed project.
(viii) Documentation
on associated insurance coverage, if applicable.
(f) If
the application is for monies from the building renewal grant fund established
by section 15-2032, require the school district to report the preventive
maintenance activities completed during the previous twelve months for the
facility for which the monies are being requested.
(g) (f) Require that an initial application not be
considered complete until all necessary information is submitted.
(h) (g) Allow a school district to submit an incomplete
application and request technical assistance from the staff of the board if the
school district is unable to provide sufficient information in the initial
application.
(i) (h) If applicable, require that a complete application
be received by the board at least fifteen business days before the next
regularly scheduled board meeting in order for the application to be considered
at that meeting. An incomplete application may be considered at that
meeting if both the staff of the board and the superintendent of the school
district deem the project critical.
(j) (i) Allow the staff of the board or the
division, as applicable, to notify a school district in writing before
review by the board or division that the proposed project
does not meet eligibility criteria prescribed in this chapter. The
written notification shall include documentation to support the staff's
determination that the proposed project does not meet the eligibility criteria
prescribed in this chapter. The school district may directly appeal
the staff's determination of ineligibility to the executive director of the board division. The school district may directly appeal
the executive director's determination of ineligibility to
the board.
(k) (j) Prohibit the staff of the board or
division from requesting that a school district withdraw a project
application from review by the board or division if the
initial staff review determines that the proposed project
may be ineligible for monies from the board
pursuant to this
chapter.
8. Review
and approve or reject requests submitted by school districts to take actions
pursuant to section 15-341, subsection G.
9. 6. Submit electronically
an annual report on or before December 15 to the speaker of the house of
representatives, the president of the senate, the superintendent of public
instruction, the secretary of state and the governor that includes the
following information:
(a) A
detailed description of the amount of monies distributed by the school
facilities board division under this chapter in the previous fiscal
year.
(b) A
list of each capital project that received monies from the school
facilities board division under this chapter during the previous fiscal
year, a brief description of each project that was funded and a summary of the board's division's reasons for the distribution of distributing monies
for the project.
(c) A
summary of the findings and conclusions of the building maintenance inspections
conducted pursuant to this article during the previous fiscal year.
(d) A
summary of the findings of common design elements and characteristics of the
highest performing schools and the lowest performing schools based on academic
productivity, including the results of the parent quality rating
survey. For the purposes of this subdivision, "academic
productivity" means academic year advancement per calendar year as
measured with student-level data using the statewide nationally
standardized norm-referenced achievement test.
10. 7. On or before December
1 of each year, report electronically to the joint committee on capital review
the amounts necessary to fulfill the requirements of sections 15-2022
and 15-2041 section 41-5721 for the
following three fiscal years. In developing the amounts necessary
for this report, the school facilities board division shall use the most recent average daily membership
data available. On request from the board division, the department of education shall make available the
most recent average daily membership data for use in calculating the amounts
necessary to fulfill the requirements of section 15-2041
41-5721 for the following three fiscal
years. The board division
shall provide copies of the report to the president of the senate, the speaker
of the house of representatives and the governor.
11. Adopt
minimum school facility adequacy guidelines to provide the minimum quality and
quantity of school buildings and the facilities and equipment necessary and
appropriate to enable pupils to achieve the educational goals of the Arizona
state schools for the deaf and the blind. The school facilities board shall
establish minimum school facility adequacy guidelines applicable to the Arizona
state schools for the deaf and the blind.
12. In
each even-numbered year, report electronically to the joint committee on capital
review the amounts necessary to fulfill the requirements of section 15-2041
for the Arizona state schools for the deaf and the blind for the following two
fiscal years. The Arizona state schools for the deaf and the blind
shall incorporate the findings of the report in any request for new school
facilities monies. Any monies provided to the Arizona state schools
for the deaf and the blind for new school facilities are subject to legislative
appropriation.
13. 8. On or before June 15
of each year, submit electronically detailed information regarding demographic
assumptions, and a proposed
construction schedule and new school construction cost estimates
for individual projects approved in the current fiscal year and expected
project approvals for the upcoming fiscal year to the joint committee on
capital review for its review. A copy of the report shall also be
submitted electronically to the governor's office of strategic planning and
budgeting. The joint legislative budget committee staff, the governor's
office of strategic planning and budgeting staff and the school
facilities board division staff shall agree on the
format of the report.
14. 9. Every two years,
provide school districts with information on improving and maintaining the
indoor environmental quality in school buildings.
15. On
or before December 31 of each year, report to the joint legislative budget
committee on all class B bond approvals by school districts in that
year. Each school district shall report to the school facilities
board on or before December 1 of each year information required by the school
facilities board for the report prescribed in this paragraph.
16. Validate
proposed adjacent ways projects submitted by school districts as prescribed in
section 15-995.
10. Adopt
rules regarding the validation of adjacent ways projects pursuant to paragraph
11 of this subsection.
11. Validate
proposed adjacent ways projects that are submitted by school districts as
prescribed in section 15-995 pursuant to rules adopted by the division
under paragraph 10 of this subsection.
12. Submit
a monthly report to the school facilities oversight board that details each
adjacent ways project validated pursuant to paragraph 11 of this subsection.
13. Brief
the joint committee on capital review at least once each year regarding the use
of monies from all of the following:
(a) The
emergency deficiencies correction fund established by section 41-5721.
(b) The
building renewal grant fund established by section 41-5731.
(c) The
new school facilities fund established by section 41-5741.
B. The
school facilities oversight board or the
division may contract for the following services in compliance with the
procurement practices prescribed in title 41,
chapter 23 of this title:
1. Private
services.
2. Construction
project management services.
3. Assessments
for school buildings to determine if the buildings have outlived their useful
life pursuant to section 15-2041 41-5741,
subsection G or have been condemned.
4. Services
related to land acquisition and development of a school site.
C. The
board shall:
1. Review
and approve student population projections submitted by school districts to
determine to what extent school districts are entitled to monies to construct
new facilities pursuant to section 41-5741. The school
facilities oversight board shall make a final determination within five months
after receiving an application from a school district for monies from the new
school facilities fund.
2. Certify
that plans for new school facilities meet the building adequacy standards
prescribed in section 41-5711.
3. Review
and approve or reject requests submitted by school districts to take actions
pursuant to section 15-341, subsection G.
4. On
or before December 15 of each year electronically submit a report to the
speaker of the house of representatives, the president of the senate, the
superintendent of public instruction, the secretary of state and the governor
that includes the following information:
(a) A detailed
description of the amount of monies the board distributed under this chapter in
the previous fiscal year.
(b) A
list of each capital project that received monies from the board under this
chapter during the previous fiscal year, a brief description of each project
that was funded and a summary of the board's reasons for distributing monies
for the project.
(c) A
summary of the findings and conclusions of the building maintenance inspections
conducted pursuant to this article during the previous fiscal year.
5. On
or before December 1 of each year, electronically report to the joint committee
on capital review the amounts necessary to fulfill the requirements of section
41-5741 for the
following three fiscal years. In developing the amounts necessary for this
report, the board shall use the most recent average daily membership data
available. On request from the board, the department of education shall make
available the most recent average daily membership data for use in calculating
the amounts necessary to fulfill the requirements of section 41-5741 for the
following three fiscal years. The board shall provide copies of the
report to the president of the senate, the speaker of the house of
representatives and the governor.
6. Adopt
minimum school facility adequacy guidelines to provide the minimum quality and
quantity of school buildings and the facilities and equipment necessary and
appropriate to enable pupils to achieve the educational goals of the Arizona
state schools for the deaf and the blind. The board shall establish minimum
school facility adequacy guidelines applicable to the Arizona state schools for
the deaf and the blind.
7. On
or before June 15 of each year, electronically submit to the joint committee on
capital review for its review detailed information regarding demographic
assumptions, a proposed construction schedule and new school construction cost
estimates for individual projects approved in the current fiscal year and
expected project approvals for the upcoming fiscal year. A copy of the report
shall also be submitted electronically to the governor's office of strategic
planning and budgeting. The joint legislative budget committee staff, the
governor's office of strategic planning and budgeting staff and the board staff
shall agree on the format of the report.
8. On
or before December 31 of each year, report to the joint legislative budget
committee on all class B bond approvals by school districts in that year. Each
school district shall report to the board on or before December 1 of each year
information required by the board for the report prescribed in this paragraph.
C. D. The governor
director of the division shall appoint an
executive serve as the director of the school
facilities oversight board pursuant to
section 38-211. The executive
director is eligible to receive compensation as determined
pursuant to section 38-611 and may hire and fire necessary staff
subject to title 41, chapter 4, article 4 of
this title and as approved by the legislature in the budget. The executive director shall have demonstrated competency in school
finance, facilities design or facilities management, either in private business
or government service. The executive director serves at the pleasure of the
governor. The staff of the school facilities oversight board
is exempt from title 41, chapter 4, articles 5 and 6 of this title. The executive director:
1. Shall
analyze applications for monies submitted to the board and to
the division by school districts.
2. Shall
assist the board and the division in developing forms and
procedures for the distribution distributing
and review of reviewing applications
and the distribution of distributing monies
to school districts.
3. May
review or audit, or both, the expenditure of monies by a school district for
deficiencies corrections and new school facilities.
4. Shall
assist the board and the division in the
preparation of preparing the board's and division's annual report reports.
5. Shall
research and provide reports on issues of general interest to the board and the division.
6. May
aid school districts in the development of developing
reasonable and cost-effective school designs in order to avoid
statewide duplicated efforts and unwarranted expenditures in the area of school
design.
7. May
assist school districts in facilitating the development of multijurisdictional
facilities.
8. Shall
assist the board and the division in any other
appropriate matter or method as directed by the division and the
members of the board.
9. Shall
establish procedures to ensure compliance with the notice and hearing
requirements prescribed in section 15-905. The notice and
hearing procedures adopted by the board shall include the requirement, with
respect to the board's consideration of any application filed after July 1,
2001 or after December 31 of the year in which the property becomes territory
in the vicinity of a military airport or ancillary military facility as defined
in section 28-8461 for monies to fund the construction of new school
facilities proposed to be located in territory in the vicinity of a military
airport or ancillary military facility, that the military airport receive
notification of the application by first class mail at least thirty days before
any hearing concerning the application.
10. May
expedite any request for monies in which the local match was not obtained for a
project that received preliminary approval by the state board for school
capital facilities.
11. Shall
expedite any request for monies in which the school district governing board
submits an application that shows an immediate need for a new school facility.
12. Shall
make a determination as to determine administrative
completion completeness within one
month after the receipt of receiving an
application by from a school
district for monies from the new school facilities fund.
13. Shall
provide technical support to school districts as requested by school districts
in connection with the construction of constructing
new school facilities and the maintenance of maintaining existing school facilities and may contract
directly with construction project managers pursuant to subsection B of this
section. This paragraph does not restrict a school district from contracting
with a construction project manager using district or state resources.
D. E. When appropriate, the school facilities board and the division
shall review and use the statewide school facilities inventory and needs
assessment conducted by the joint committee on capital review and issued in
July, 1995.
E. F. The school facilities oversight board shall contract with one or more private
building inspectors to complete an initial assessment of school facilities and
equipment and shall inspect each school building in this state at least once every
five years to ensure compliance with section 15-2011 41-5711. A copy of the inspection report,
together with any recommendations for building maintenance, shall be provided
to the school facilities oversight board and the
governing board of the school district.
F. G. The school
facilities division or the board,
as applicable, may consider appropriate combinations of facilities or
uses in making assessments of assessing and
curing deficiencies pursuant to subsection A, paragraph 1 of this section and
in certifying plans for new school facilities pursuant to subsection A C, paragraph 5 2 of this section.
G. H. The board shall not
award any monies to fund new facilities that are financed by class A bonds that
are issued by the school district.
H. I. The board or the division shall not distribute monies to a school
district for replacement replacing or
repair of repairing facilities if
the costs associated with the replacement or repair are covered by insurance or
a performance or payment bond.
I. J. The board division may contract for construction services and materials
that are necessary to correct existing deficiencies in school district
facilities. The board division
may procure the construction services necessary pursuant to this subsection by
any method, including construction-manager-at-risk, design-build,
design-bid-build or job-order-contracting as provided
by title 41, chapter 23 of this title.
The construction planning and services performed pursuant to this subsection
are exempt from section 41-791.01.
J. K. The school
facilities board division may enter into
agreements with school districts to allow school facilities board division staff and contractors access to school property for
the purposes of performing the construction services necessary pursuant to
subsection I J of this
section.
K. L. Each school district
shall develop routine preventive maintenance guidelines for its
facilities. The guidelines shall include plumbing systems,
electrical systems, heating, ventilation and air conditioning systems, special
equipment and other systems and for roofing systems shall recommend visual
inspections performed by district staff for signs of structural stress and
weakness. The guidelines shall be submitted to the school
facilities board division for review and
approval. If on inspection by the school facilities
board division it is determined that a school
district facility was inadequately maintained pursuant to the school district's
routine preventive maintenance guidelines, the school district shall return the
building to compliance with the school district's routine preventive
maintenance guidelines.
L. M. The school
facilities board and the division may temporarily
transfer monies, or, if
applicable, direct the division to transfer monies, between the capital reserve fund established by section 15-2003,
the emergency deficiencies correction fund established by section 15-2022 41-5721 and the new
school facilities fund established by section 15-2041
41-5741 if all of the following conditions are met:
1. The
transfer is necessary to avoid a temporary shortfall in the fund into which the
monies are transferred.
2. The
transferred monies are restored to the fund where the monies originated as soon
as practicable after the temporary shortfall in the other fund has been
addressed.
3. The
school facilities board reports and the division report to the joint committee on capital
review the amount of and the reason for any monies transferred.
M. N. After notifying each
school district, and if a written objection from the school district is not
received by the school facilities board or
the division within thirty days of after
the notification, the school facilities board or the division may access public utility company records of
power, water, natural gas, telephone and broadband usage to assemble consistent
and accurate data on utility consumption at school facilities to determine the
effectiveness of facility design, operation and maintenance measures intended
to reduce energy and water consumption and costs. Any public utility
that provides service to a school district in this state shall provide the data
requested by the school facilities board or
the division pursuant to this subsection.
N. O. The school
facilities division or the board shall not require
a common school district that provides instruction to pupils in grade nine to
obtain approval from the school facilities division
or the board to reconfigure its school facilities. A common school
district that provides instruction to pupils in grade nine is not entitled to
additional monies from the school facilities division or the board for facilities to educate pupils in grade
nine.
O. P. A school district may
appeal the denial of a request for monies pursuant to this chapter or any other
appealable agency action by the school facilities division or the board pursuant to title 41,
chapter 6, article 10 of this title. For the
purposes of this subsection, "appealable agency action" has the same
meaning prescribed in section 41-1092. END_STATUTE
Sec. 64. Section
41-5703, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5703. School
facilities oversight board lease-to-own; fund; expiration
A. In
order to fulfill the requirements of section 15-2041 41-5741, the school facilities
board may acquire school facilities for the use of one or more school districts
by entering into one or more lease-to-own transactions in
accordance with this section. For the purposes
of this section, providing school facilities includes land acquisition, related
infrastructure, fixtures, furnishings, equipment and costs of the lease-to-own
transaction. The school facilities board may
provide monies to provide school facilities in part pursuant to section 15-2041 41-5741 and in part
through a lease-to-own transaction.
B. A
lease-to-own transaction may provide for:
1. The
ground lease of the land for the facilities to a private entity for the term of
the lease-to-own transaction or for a term of up to one and one-half
times the term of the lease-to-own transaction, subject to earlier
termination on completion of performance of the lease-to-own
agreement. The ground lessor may either be the school district or
the school facilities board, whichever holds title to the
land.
2. The
lease of the completed school facilities by a private entity to the school facilities board for an extended term of years pursuant
to a lease-to-own agreement.
3. The
sublease of the completed school facilities by the school
facilities board to the school district during the term of the lease-to-own
agreement. The sublease shall provide for the use, maintenance and
operation of the school facilities by the school district and for the transfer
of ownership of the school facilities to the school district on completion of
performance of the lease-to-own agreement.
4. The
option for the school facilities board's purchase of the
school facilities and transfer of ownership of the school facilities to the
school district before the expiration of the lease-to-own
agreement.
5. The
services of trustees, financial advisors, paying agents, transfer agents,
underwriters, lawyers and other professional service providers, credit
enhancements or liquidity facilities and all other services considered
necessary by the school facilities board in connection
with the lease-to-own transaction, and related agreements and
arrangements including arrangements for the creation and sale of certificates
of participation evidencing proportionate interests in the lease payments to be
made by the school facilities board pursuant to the lease-to-own
agreement.
C. The
sublease of the school facilities to the school district is subject to this
section and to the provisions of the lease-to-own
agreement. Neither a ground lease by the school district as lessor
nor a sublease of the school facilities to the school district is required to
be authorized by a vote of the school district electors. A ground lease is not
subject to any limitations or requirements applicable to leases or lease-purchase
agreements pursuant to section 15-342 or any other section of title 15 or this title
chapter.
D. Any
school facility that is constructed through a lease-to-own
agreement shall meet the minimum building adequacy standards set forth in
section 15-2011 41-5711.
E. School
districts may use local monies to exceed the minimum adequacy standards and to
build athletic fields and any other capital project for leased-to-own
facilities.
F. The
school facilities board shall include any square footage
of new school facilities constructed through lease-to-own
agreements in the computations prescribed in section 15-2011 41-5711.
G. A The lease-to-own fund
is established consisting of monies appropriated by the
legislature. The school facilities board shall
administer the fund and distribute monies in the fund to make payments pursuant
to lease-to-own agreements entered into by the school
facilities board pursuant to this section, to make payments to or for
the benefit of school districts pursuant to local lease-to-own
agreements entered into by school districts pursuant to section 15-2005 41-5704 and to pay costs considered necessary by the school facilities board in connection with lease-to-own
transactions and local lease-to-own
transactions. Payments by the school facilities
board pursuant to a lease-to-own agreement or local lease-to-own
agreement shall be made only from the lease-to-own
fund. On notice from the school facilities
board, the state treasurer shall invest and divest monies in the fund as
provided by section 35-313, and monies earned from investment shall be
credited to the lease-to-own fund.
H. A
lease-to-own agreement entered into by the school
facilities board pursuant to this section shall provide that:
1. At
the completion of the lease-to-own agreement, ownership of the
school facilities and land associated with the lease-to-own
agreement shall be transferred to the school district as specified in the
agreement.
2. The
obligation of the school facilities board to make any
payment under the lease-to-own agreement is a current expense,
payable exclusively from appropriated monies, and is not a general obligation
indebtedness of this state or the school facilities
board. The obligation of a school district to make expenditures
under a sublease pursuant to subsection B, paragraph 3 of this section is a
current expense, payable exclusively from budgeted monies, and is not a general
obligation indebtedness of the school district.
3. If
the legislature fails to appropriate monies or the school
facilities board fails to allocate such monies for any periodic payment
or renewal term of the lease-to-own agreement, the lease-to-own
agreement terminates at the end of the current term and this state and the school facilities board are relieved of any subsequent
obligation under the agreement and the school district is relieved of any
subsequent obligation under the sublease.
4. The
lease-to-own agreement shall be reviewed and approved by the
attorney general before the agreement may take effect.
5. Before
the agreement takes effect and after review by the attorney general, the
project or projects related to the agreement shall be submitted for review by
the joint committee on capital review.
I. The
school facilities board may covenant to use its best
efforts to budget, obtain, allocate and maintain sufficient appropriated monies
to make payments under a lease-to-own agreement, but the lease-to-own
agreement shall acknowledge that appropriating state monies is a legislative
act and is beyond the control of the school facilities
board or of any other party to the lease-to-own agreement.
J. The
land and the school facilities on the land are exempt from taxation during the
term of the lease-to-own agreement and during construction and
subsequent occupancy by the school district pursuant to the sublease.
K. The
powers prescribed in this section are in addition to the powers conferred by
any other law. Without reference to any other provision of title 15, this title chapter
or to any other law, this section is authority for
the completion of the purposes prescribed in this section for the school facilities board to provide school facilities for use by
school districts through lease-to-own transactions pursuant to this
section without regard to the procedure required by any other law. Except as
otherwise provided in this section, the provisions of title 15
and this title chapter that
relate to the matters contained in this section are superseded because this
section is the exclusive law on these matters.
L. The
school facilities board shall not enter into lease-to-own
transactions, including any refinancings or refundings, pursuant to this
section from and after May 15, 2006. END_STATUTE
Sec. 65. Section
41-5704, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5704. Local
lease-to-own by school districts; expiration
A. In
order to fulfill the requirements of section 15-2041 41-5741, with the approval of the school
facilities board, a school district may acquire school facilities by
entering into a local lease-to-own transaction in accordance with
this section. For purposes of this section, providing school
facilities includes land acquisition, related infrastructure, fixtures,
furnishings, equipment and costs of the local lease-to-own
transaction. The school facilities board may
provide monies to provide school facilities in part pursuant to section 15-2041 41-5741 and in part
through payments to or for the benefit of a school district for a local lease-to-own
transaction.
B. A
local lease-to-own transaction may provide for:
1. The
ground lease of the land for the facilities to a private entity for the term of
the local lease-to-own transaction or for a term of up to one and
one-half times the term of the local lease-to-own
transaction, subject to earlier termination on completion of performance of the
local lease-to-own agreement. The ground lessor may
either be the school district or the school facilities
board, whichever holds title to the land.
2. The
lease of the completed school facilities by a private entity to the school
district for an extended term of years pursuant to a local lease-to-own
agreement. The local lease-to-own agreement shall
provide for the use, maintenance and operation of the school facilities by the
school district and for the transfer of ownership of the school facilities to
the school district on completion of performance of the local lease-to-own
agreement.
3. The
option for the school district's purchase of the school facilities and transfer
of ownership of the school facilities to the school district before the
expiration of the local lease-to-own agreement.
4. The
services of trustees, financial advisors, paying agents, transfer agents,
underwriters, lawyers and other professional service providers, credit
enhancements or liquidity facilities and all other services considered
necessary by the school district or the school facilities
board in connection with the local lease-to-own transaction, and
related agreements and arrangements including arrangements for the creation and
sale of certificates of participation evidencing proportionate interests in the
lease payments to be made by the school district pursuant to the local lease-to-own
agreement.
C. Neither
a ground lease by the school district as lessor nor a local lease-to-own
agreement is required to be authorized by a vote of the school district
electors. A ground lease is not subject to any limitations or
requirements applicable to leases or lease-purchase agreements pursuant
to section 15-342 or any other section of title 15 or this
title chapter.
D. The
school facilities board may make payments to or for the benefit
of the school district from the lease-to-own fund established by
section 15-2004 41-5703
for the payment of amounts payable under the local lease-to-own
agreement.
E. Any
school facility that is constructed through a lease-to-own
agreement shall meet the minimum building adequacy standards set forth in
section 15-2011 41-5711.
F. School
districts may use local monies to exceed the minimum adequacy standards and to
build athletic fields and any other capital project for leased-to-own
facilities.
G. The
school facilities board shall include any square footage
of new school facilities constructed through lease-to-own
agreements in the computations prescribed in section 15-2011 41-5711.
H. A
local lease-to-own agreement entered into by a school district
pursuant to this section shall provide that:
1. At
the completion of the lease-to-own agreement, ownership of the
school facilities and land associated with the lease-to-own
agreement shall be transferred to the school district as specified in the agreement.
2. The
obligation of the school district to make any payment or expenditure under the
local lease-to-own agreement is a current expense, payable
exclusively from properly budgeted monies, and is not a general obligation
indebtedness of this state, the school facilities board or
the school district, and that any payment by the school
facilities board to or for the benefit of the school district from the
lease-to-own fund established by section 15-2004 41-5703 for payments of amounts payable under the local
lease-to-own agreement is a current expense, payable exclusively
from appropriated monies, and is not a general obligation indebtedness of this
state or the school facilities board.
3. If
the school district fails to properly budget for payments under the local lease-to-own
agreement or if the legislature fails to appropriate monies or the school facilities board fails to allocate monies for periodic
payment to or for the benefit of the school district for payments under the
local lease-to-own agreement, the local lease-to-own
agreement terminates at the end of the current term and the school district,
the school facilities board and this state are relieved of
any subsequent obligation under the local lease-to-own agreement.
4. The
local lease-to-own agreement shall be reviewed and approved by the
attorney general before the agreement may take effect.
5. Before
the agreement takes effect and after review by the attorney general, the
project or projects related to the agreement shall be submitted for review by
the joint committee on capital review.
I. The
school district may covenant to use its best efforts to budget, obtain,
allocate and maintain sufficient monies to make payments under a local lease-to-own
agreement, but the local lease-to-own agreement shall acknowledge
that budgeting school district monies is a governmental act of the school
district governing board that may not be contracted away. The school
facilities oversight board is not required to covenant to
budget, obtain, allocate or maintain sufficient monies in the lease-to-own
fund to make payments to or for the benefit of a school district for payments
under a local lease-to-own agreement.
J. The
land and the school facilities on the land are exempt from taxation during the
term of the local lease-to-own agreement and during construction
and subsequent occupancy by the school district pursuant to the local lease-to-own
agreement.
K. The
powers prescribed in this section are in addition to the powers conferred by
any other law. Without reference to any other provision of title 15 or this title chapter
or to any other law, this section is authority for
the completion of the purposes prescribed in this section for school districts
to provide school facilities through local lease-to-own
transactions pursuant to this section without regard to the procedure required
by any other law. Except as otherwise provided in this section, the provisions
of title 15 or this title chapter that relate to the matters contained in this section
are superseded because this section is the exclusive law on these matters.
L. School
districts shall not enter into lease-to-own transactions, including any
refinancings or refundings, pursuant to this section from and after May 15,
2006. END_STATUTE
Sec. 66. Section
41-5705, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5705. Lease-to-own
amount; expiration
A. In
order to fulfill the requirements of section 15-2041 41-5741, the school facilities
board may enter into lease-to-own transactions for up to a maximum
of two hundred million dollars $200,000,000
in any fiscal year.
B. The
school facilities board shall not enter into lease-to-own
transactions, including any refinancings or refundings, pursuant to this
section from and after May 15, 2006. END_STATUTE
Sec. 67. Section
41-5711, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5711. Minimum
school facility adequacy requirements; definition
A. The
school facilities board, as determined and prescribed in
this chapter, shall provide funding to school districts for new construction as
the number of pupils in the district fills the existing school facilities and
requires more pupil space.
B. School
buildings in a school district are adequate if all of the following
requirements are met:
1. The
buildings contain sufficient and appropriate space and equipment that comply
with the minimum school facility adequacy guidelines established pursuant to
subsection F of this section. The state shall not fund facilities for elective
courses that require the school district facilities to exceed minimum school
facility adequacy requirements. The school facilities
board shall determine whether a school building meets the requirements of this
paragraph by analyzing the total square footage that is available for each
pupil in conjunction with the need for specialized spaces and equipment.
2. The
buildings are in compliance with federal, state and local building and fire
codes and laws that are applicable apply to
the particular building, except that a school with an aggregate area of less
than five thousand square feet is subject to permitting and inspection by a
local fire marshal and is only subject to regulation or inspection by the
office of the state fire marshal if the county, city or town in which the school
is located does not employ a local fire marshal. An existing school
building is not required to comply with current requirements for new buildings
unless this compliance is specifically mandated by law or by the building or
fire code of the jurisdiction where the building is located.
3. The
building systems, including roofs, plumbing, telephone systems, electrical
systems, heating systems and cooling systems, are in working order and are
capable of being properly maintained.
4. The
buildings are structurally sound.
C. The
standards that shall be used by the school facilities
board to determine whether a school building meets the minimum adequate gross
square footage requirements are as follows:
1. For
a school district that provides instruction to pupils in programs for preschool
children with disabilities, kindergarten programs and grades one through six,
eighty square feet per pupil in programs for preschool children with
disabilities, kindergarten programs and grades one through six.
2. For
a school district that provides instruction to up to eight hundred pupils in
grades seven and eight, eighty-four square feet per pupil in grades seven
and eight.
3. For
a school district that provides instruction to more than eight hundred pupils
in grades seven and eight, eighty square feet per pupil in grades seven and
eight or sixty-seven thousand two hundred square feet, whichever is more.
4. For
a school district that provides instruction to up to four hundred pupils in
grades nine through twelve, one hundred twenty-five square feet per pupil
in grades nine through twelve.
5. For
a school district that provides instruction to more than four hundred and up to
one thousand pupils in grades nine through twelve, one hundred twenty square
feet per pupil in grades nine through twelve or fifty thousand square feet,
whichever is more.
6. For
a school district that provides instruction to more than one thousand and up to
one thousand eight hundred pupils in grades nine through twelve, one hundred
twelve square feet per pupil in grades nine through twelve or one hundred
twenty thousand square feet, whichever is more.
7. For
a school district that provides instruction to more than one thousand eight
hundred pupils in grades nine through twelve, ninety-four square feet per
pupil in grades nine through twelve or two hundred one thousand six hundred
square feet, whichever is more.
D. The
school facilities board may modify the square footage
requirements prescribed in subsection C of this section or modify the amount of
monies awarded to cure the square footage deficiency pursuant to this section
for particular school districts based on extraordinary circumstances for any of
the following considerations:
1. The
number of pupils served by the school district.
2. Geographic
factors.
3. Grade
configurations other than those prescribed in subsection C of this section.
E. In
measuring the square footage per pupil requirements of subsection C of this
section, the school facilities board shall:
1. Use
the projected one hundredth day average daily membership for the current school
year.
2. For
each school, use the lesser of either:
(a) Total
gross square footage.
(b) Student
capacity multiplied by the appropriate square footage per pupil prescribed by
subsection C of this section.
3. Consider
the total space available in all schools in use in the school district, except
that the school facilities board shall allow an exclusion
of the square footage for certain schools and the pupils within the schools'
boundaries if the school district demonstrates to the board's satisfaction
unusual or excessive busing of pupils or unusual attendance boundary changes
between schools.
4. Compute
the gross square footage of all buildings by measuring from exterior wall to
exterior wall. Square footage used solely for district
administration, storage of vehicles and other nonacademic purposes shall be
excluded from the net square footage.
5. Include
all portable and modular buildings.
6. Include
in the net square footage new construction funded wholly or partially by the school facilities board based on the square footage funded by
the school facilities board. If the new
construction is to exceed the square footage funded by the school
facilities board, the excess square footage shall not be included in the
net square footage if any of the following applies:
(a) The
excess square footage was constructed before July 1, 2002 or funded by a class
B bond, impact aid revenue bond or capital outlay override approved by the
voters after August 1, 1998 and before June 30, 2002 or funded from
unrestricted capital outlay expended before June 30, 2002.
(b) The
excess square footage of new school facilities does not exceed twenty-five
percent of the minimum square footage requirements pursuant to subsection C of
this section.
(c) The
excess square footage of expansions to school facilities does not exceed twenty-five
percent of the minimum square footage requirements pursuant to subsection C of
this section.
7. Exclude
square footage built under a developer agreement according to section 15-342,
paragraph 33 until the school facilities board provides
funding for the square footage under section 15-2041 41-5741, subsection O.
8. Include
square footage that a school district has leased to another entity.
F. The
school facilities board shall adopt rules establishing
minimum school facility adequacy guidelines. The guidelines shall
provide the minimum quality and quantity of school buildings and facilities and
equipment necessary and appropriate to enable pupils to achieve the academic
standards pursuant to section 15-203, subsection A, paragraphs 12 and 13
and sections 15-701 and 15-701.01. At a minimum, the school facilities board shall address all of the following in
developing these guidelines:
1. School
sites.
2. Classrooms.
3. Libraries
and media centers, or both.
4. Cafeterias.
5. Auditoriums,
multipurpose rooms or other multiuse space.
6. Technology.
7. Transportation.
8. Facilities
for science, arts and physical education.
9. Other
facilities and equipment that are necessary and appropriate to achieve the
academic standards prescribed pursuant to section 15-203, subsection A,
paragraphs 12 and 13 and sections 15-701 and 15-701.01.
10. Appropriate
combinations of facilities or uses listed in this section.
G. The
board may convene subcommittees as needed on specific issues, including school
facility safety standards. Notwithstanding any other law, a school district
that receives grant monies from the building renewal grant fund established by
section 41-5731 or monies from the new school facilities fund established
by section 41-5741 shall consider school facility safety standards when
completing approved projects or constructing new school facilities with monies
received from those funds.
G. H. The board shall
consider the facilities and equipment of the schools with the highest academic
productivity scores, as prescribed in section 15-2002 41-5702, subsection A, paragraph 9 6, subdivision (d), and the highest parent quality ratings in
the establishment of the guidelines.
H. I. The school
facilities board may consider appropriate combinations of facilities or
uses in making assessments of assessing and
curing existing deficiencies pursuant to section 15-2002 41-5702, subsection A, paragraph 1 and in certifying
plans for new school facilities pursuant to section 15-2002 41-5702, subsection A C, paragraph 5 2.
I. J. If the school
facilities board makes any changes to the minimum adequacy requirements
prescribed in this section, the board shall provide a fiscal impact statement
of the effect of the proposed changes to the joint committee on capital review
for review.
J. K. For the purposes of
this section, "student capacity" means the capacity adjusted to
include any additions to or deletions of space, including modular or portable
buildings at the school. The school facilities
board shall determine the student capacity for each school in conjunction with
each school district, recognizing each school's allocation of space as of July
1, 1998, to achieve the academic standards prescribed pursuant to section 15-203,
subsection A, paragraphs 12 and 13 and sections 15-701 and 15-701.01.
END_STATUTE
Sec. 68. Section
41-5721, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5721. Emergency
deficiencies correction fund; definition
A. The
emergency deficiencies correction fund is established consisting of monies
transferred from the new school facilities fund established by section 15-2041 41-5741. The
school facilities board division shall administer the emergency deficiencies
correction fund and distribute monies in accordance with the rules of the school facilities board division to school
districts for emergency purposes. The school
facilities board division shall not transfer
monies from the new school facilities fund if the division, in
conjunction with the school
facilities oversight board, determines that the transfer will affect,
interfere with, disrupt or reduce any capital projects that the school
facilities board has approved pursuant to section 15-2041 41-5741. The school facilities
board division
shall transfer to the emergency deficiencies correction fund the amount
necessary each fiscal year to fulfill the requirements of this
section. Within thirty days after transferring monies to the
emergency deficiencies correction fund, the school facilities
board division
shall report to the director of the joint legislative budget committee and the
director of the governor's office of strategic planning and budgeting the
amount and source of the transfer. Monies in the emergency deficiencies
correction fund are continuously appropriated and are exempt from the
provisions of section 35-190 relating to lapsing of appropriations.
B. If
the school facilities board division determines that
there are insufficient monies in the emergency deficiencies correction fund to
correct an emergency, the school district may correct the emergency pursuant to
section 15-907.
C. If
a school district has an emergency, the school district shall apply to the school facilities board division for funding for the
emergency. The school district's application shall disclose any
insurance or building renewal monies available to the school district to pay
for the emergency. Before applying to the division for funding
for the emergency, the school district governing board shall issue an emergency
declaration or resolution to be eligible for monies from the emergency
deficiencies correction fund.
D. The
school facilities board division staff shall
acknowledge receipt of the school district's application for emergency
deficiencies funding in writing within five business days after receiving the
application. The school facilities board division staff shall include
in the written acknowledgement of receipt to the school district any
investigative, study or informational requirements from the school district,
along with an estimated timeline to complete the requirements, necessary for
the school facilities board division staff to make a recommendation for decision regarding
funding to the school facilities board.
E. The
board shall review all policies and procedures that the division develops to
administer this section.
E. F. For the purposes of
this section, "emergency":
1. Means a serious need for
materials, services or construction or expenses in excess of
that exceeds the school district's adopted budget for the
current fiscal year and that seriously threatens the
functioning of the school district, the preservation or protection of property
or public health, welfare or safety.
2. Includes
all of the following:
(a) A
situation that threatens life services such as adequate water supply, energy
and wastewater.
(b) A
situation in which a school district is under orders from an authority having
jurisdiction for an unsafe environment such as the department of environmental
quality, the occupational safety and health administration or the state fire
marshal.
(c) The
school district receives a professional and certified assessment showing that
one or more facilities or systems are structurally unsafe and directly impact
the functions of the school district with no alternative option available.
END_STATUTE
Sec. 69. Section
41-5731, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5731. Building
renewal grant fund; rules; definitions
A. The
building renewal grant fund is established consisting of monies appropriated to
the fund by the legislature. The school facilities board division shall administer the fund and distribute monies to
school districts for the purpose of maintaining the adequacy of existing school
facilities. Monies in the fund are exempt from the provisions of
section 35-190 relating to lapsing of appropriations.
B. The
school facilities board division shall
distribute monies from the building renewal grant fund
based on grant requests from school districts to fund primary building renewal
projects. Project requests shall be prioritized by the school facilities board division, with
priority given to school districts that have provided routine preventive
maintenance on the facility. A school district must
submit a preventive maintenance plan to the division to be eligible to receive
monies from the building renewal grant fund. The school facilities board division shall
approve only projects that will be completed within twelve months, unless
similar projects on average take longer to complete. A
grant issued under this section expires twelve months after the grant request
is approved unless the division issues an extension, except that if the
division approves a project and determines that similar projects on average
take longer than twelve months to complete, the division shall extend the grant
expiration date based on the average amount of time that similar projects take
to complete. The division shall establish a process by which a
school district may request an extension under this subsection. On
expiration of a grant, a school district shall return any building renewal
grant fund monies that the school district has not spent to the division for
deposit in the building renewal grant fund. the division may spend monies from
the fund for assessments to determine whether a grant from the fund is
warranted under this section.
C. School
districts that receive monies from the building renewal grant
fund shall use these monies on projects for buildings or any part of a building
in the school facilities board's division's
database for any of the following:
1. Major
renovations and repairs to a building that is used for student instruction or
other academic purposes.
2. Upgrading
systems and areas that will maintain or extend the useful life of the building.
3. Infrastructure
costs.
D. Monies
received from the fund shall not be used for any of the following purposes:
1. New
construction.
2. Remodeling
interior space for aesthetic or preferential reasons.
3. Exterior
beautification.
4. Demolition.
5. Routine
preventive maintenance.
6. Any
project in a building, or part of a building, that is being leased to another entity.
E. Accommodation
schools are not eligible for monies from the building renewal grant fund.
F. If
the school facilities board division or
a court of competent jurisdiction determines that a school district received
monies from the building renewal grant fund that must be reimbursed to the school facilities board division due to
legal action associated with improper construction by a hired contractor, the
school district shall reimburse the school facilities board
division an agreed-on amount for deposit into the
building renewal grant fund.
G. The
school facilities board division shall
categorize each project that is eligible for monies from the building renewal
grant fund as either critical or noncritical. The board
division shall adopt policies and procedures to
prioritize critical projects and to designate critical projects as projects
that immediately impact student safety or building closures or that result in
operational disruptions. Critical projects have priority over any
previously approved noncritical projects.
H. If
the school facilities board division determines
that sufficient monies are not available for a noncritical project that the board division has approved, the board division shall notify the school
district that submitted the project request that monies will be distributed
from the building renewal grant fund for the project only if the legislature
appropriates sufficient monies. If sufficient monies are not
available in the fiscal year in which the project is awarded for a noncritical
project, the noncritical project does not receive priority in the next fiscal
year.
I. Building
renewal grants pursuant to this section shall be used only for projects that
serve an academic purpose.
J. The
division shall do both of the following:
1. Implement
policies and procedures to require a school district to report the preventive
maintenance activities completed during the previous twelve months for the
facility for which the monies are being requested.
2. Submit
a monthly report to the school facilities oversight board that details how
monies from the building renewal grant fund have been distributed.
K. In
addition to establishing a project eligibility assessment under section 41-5702,
subsection A, paragraph 5, subdivision (b), the division shall adopt rules
regarding both of the following:
1. The
approval of building renewal grants pursuant to this section.
2. Time
frames for the division regarding all of the following with respect to this
section:
(a) Approving
or denying grant requests for critical projects.
(b) Notifying
an applicant if the applicant's application is incomplete.
(c) Providing
regular updates to applicants regarding completed applications.
(d) Distributing
monies from the building renewal grant fund.
L. The
board shall review all policies and procedures that the division develops to
administer this section.
M. The
division may spend monies from the fund for assessments to determine if a grant
from the fund is warranted under this section.
J. N. For
the purposes of this section:
1. "Primary
building renewal projects" means projects that are necessary for buildings
owned by school districts that are required to meet the minimum adequacy
standards for student capacity and that fall below the minimum school facility
adequacy guidelines, as adopted by the school facilities
board pursuant to section 15-2011 41-5711,
for school districts that have provided routine preventive maintenance to the
school facility.
2. "Routine
preventive maintenance" means services that are performed on a regular
schedule at intervals ranging from four times a year to once every three years,
or on the schedule of services recommended by the manufacturer of the specific
building system or equipment, and that are intended to extend the useful life
of a building system and reduce the need for major repairs.
3. "Student
capacity" has the same meaning prescribed in section 15-2011 41-5711. END_STATUTE
Sec. 70. Section
41-5741, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5741. New
school facilities fund; capital plan; reporting requirements
A. The
new school facilities fund is established consisting of monies appropriated by
the legislature and monies credited to the new school facilities
fund pursuant to section 37-221. The school
facilities board division shall administer the new school facilities fund and, at the direction of the school facilities oversight
board, shall distribute monies, as a continuing appropriation, to school
districts for the purpose of constructing new school facilities and for
contracted expenses pursuant to section 15-2002 41-5702, subsection B, paragraphs 2, 3 and
4. On June 30 of each fiscal year, any unobligated
contract monies in the new school facilities fund shall be transferred to the
capital reserve fund established by section 15-2003.
B. The
school facilities oversight board shall prescribe a
uniform format for use by the school district governing board in developing and
annually updating a capital plan that consists of each of the following:
1. Enrollment
projections for the next five years for elementary schools and eight years for
middle and high schools, including a description of the methods used to make
the projections.
2. A
description of new schools or additions to existing schools needed to meet the
building adequacy standards prescribed in section 15-2011 41-5711. The description shall include:
(a) The
grade levels and the total number of pupils that the school or addition is
intended to serve.
(b) The
year in which it is necessary for the school or addition to begin operations.
(c) A
timeline that shows the planning and construction process for the school or
addition.
3. Long-term
projections of the need for land for new schools.
4. Any
other necessary information required by the school facilities oversight
board to evaluate a school district's capital plan.
5. If
a school district pays tuition for all or a portion of the school district's
high school pupils to another school district, the capital plan shall indicate
the number of pupils for which the district pays tuition to another
district. If a school district accepts pupils from another school
district pursuant to section 15-824, subsection A, the school district
shall indicate the projections for this population separately. This
paragraph does not apply to a small isolated school district as defined in
section 15-901.
C. If
the capital plan indicates a need for a new school or an addition to an
existing school within the next four years or a need for land within the next
ten years, the school district shall submit its plan to the school facilities oversight board on or before September 1 and shall request
monies from the new school facilities fund for the new construction or
land. The school facilities board may require a
school district to sell land that was previously purchased entirely with monies
provided by the school facilities board if the school facilities board determines that the property is no
longer needed within the ten-year period specified in this subsection for
a new school or no longer needed within that ten-year period for an
addition to an existing school. Monies provided for land are in
addition to any monies provided pursuant to subsection D of this section.
D. At the direction of the school facilities board,
the division shall distribute
monies from the new school facilities fund for additional square footage as
follows:
1. The
school facilities board shall review and evaluate the
enrollment projections. On or before December 15 of each year,
following the submission of the enrollment projections, the school
facilities board shall either approve the projections as submitted or
revise the projections. In approving or revising the enrollment
projections, the school facilities board shall use the
average daily membership data available during the current school
year. On request from the school facilities
board, the department of education shall make available the most recent average
daily membership data for use in revising the enrollment
projections. In determining new construction requirements, the school facilities board shall determine the net new growth of
pupils that will require additional square footage that exceeds the building
adequacy standards prescribed in section 15-2011 41-5711. If the projected growth and the
existing number of pupils exceed three hundred fifty pupils who are served in a
school district other than the pupil's resident school district, the school facilities board, the receiving school district and the
resident school district shall develop a capital facilities plan on how to best
serve those pupils. A small isolated school district as defined in
section 15-901 is not required to develop a capital facilities plan
pursuant to this paragraph.
2. If
the average daily membership projections indicate that additional space will
not be needed within the next two school years in order to meet the building
adequacy standards prescribed in section 15-2011 41-5711, the request shall be held for consideration by
the school facilities board for possible future funding
and the school district shall annually submit an updated plan until the
additional space is needed.
3. If
the average daily membership projections indicate that additional space will be
needed within the next two school years in order to meet the building adequacy
standards prescribed in section 15-2011 41-5711, the school facilities
board shall provide an amount as follows:
(a) Determine
the number of pupils requiring additional square footage to meet building
adequacy standards. This amount for elementary schools shall not be
less than the number of new pupils for whom space will be needed in the next
year and shall not exceed the number of new pupils for whom space will be
needed in the next five years. This amount for middle and high
schools shall not be less than the number of new pupils for whom space will be needed
in the next four years and shall not exceed the number of new pupils for whom
space will be needed in the next eight years.
(b) Multiply
the number of pupils determined in subdivision (a) of this paragraph by the
square footage per pupil. The square footage per pupil is ninety
square feet per pupil for preschool children with disabilities, kindergarten
programs and grades one through six, one hundred square feet for grades seven
and eight, one hundred thirty-four square feet for a school district that
provides instruction in grades nine through twelve for fewer than one thousand
eight hundred pupils and one hundred twenty-five square feet for a school
district that provides instruction in grades nine through twelve for at least
one thousand eight hundred pupils. The total number of pupils in
grades nine through twelve in the district shall determine the square footage
factor to use for net new pupils. The school
facilities board may modify the square footage requirements prescribed
in this subdivision for particular schools based on any of the following
factors:
(i) The
number of pupils served or projected to be served by the school district.
(ii) Geographic
factors.
(iii) Grade
configurations other than those prescribed in this subdivision.
(iv) Compliance
with minimum school facility adequacy requirements established pursuant to
section 15-2011 41-5711.
(c) Multiply
the product obtained in subdivision (b) of this paragraph by the cost per
square foot. The cost per square foot is $90 $270.24 for preschool children with disabilities, kindergarten
programs and grades one through six, $95 $285.30
for grades seven and eight and $110 $330.30
for grades nine through twelve. The cost per square foot
shall be adjusted annually for construction market considerations based on an
index identified or developed by the joint legislative budget committee as
necessary but not less than once each year. Each
annual construction market adjustment applies to all projects approved by the
school facilities board under this subsection during that year. The
school facilities board shall multiply the cost per square
foot by 1.05 for any school district located in a rural area. The school facilities board may only modify the base cost per square
foot prescribed in this subdivision for particular schools based on geographic
conditions or site conditions. Any extra monies
received as a result of a modification based on geographic conditions or site
conditions may be used to address unforeseen costs at any stage of a project
under this section. For the purposes of this subdivision,
"rural area" means an area outside a thirty-five-mile
radius of a boundary of a municipality with a population of more than fifty
thousand persons.
(d) Once
the school district governing board obtains approval from the school
facilities board for new facility construction monies, additional
portable or modular square footage created for the express purpose of providing
temporary space for pupils until the completion of the new facility and any
additional space funded by the school district shall not be included by the school facilities board for the purpose of new construction
funding calculations. On completion of the new facility construction
project, any additional space funded by the school district shall be included
as prescribed by this chapter and, if the portable or modular facilities
continue in use, the portable or modular facilities shall be included as
prescribed by this chapter, unless the school facilities
board approves their continued use for the purpose of providing temporary space
for pupils until the completion of the next new facility that has been approved
for funding from the new school facilities fund.
4. For
projects approved after December 31, 2001, and notwithstanding paragraph 3 of
this subsection, a unified school district that does not have a high school is
not eligible to receive high school space as prescribed by section 15-2011 41-5711 and this
section unless the unified district qualifies for geographic factors prescribed
by paragraph 3, subdivision (b), item (ii) of this subsection.
5. If
a career technical education district leases a building from a school district,
that building shall be included in the school district's square footage
calculation for the purposes of new construction pursuant to this section.
6. If
a school district leases a building to another entity, that building shall be
included in the school district's square footage calculation for purposes of
new construction pursuant to this section.
7. A
school district shall qualify for monies from the new school facilities fund
for additional square footage in a fiscal year only if the school
facilities board has approved or revised its enrollment projection under
paragraph 1 of this subsection on or before December 15 of the prior fiscal
year.
E. Monies
for architectural and engineering fees, project management services and
preconstruction services shall be distributed on the completion of the analysis
by the school facilities board of the school district's
request. After receiving monies pursuant to this subsection, the
school district shall submit a design development plan for the school or
addition to the school facilities board before any monies
for construction are distributed. If the school district's request
meets the building adequacy standards, the school facilities
board may review and comment on the district's plan with respect to the efficiency
and effectiveness of the plan in meeting state square footage and facility
standards before distributing directing the distribution of
the remainder of the monies. If the school facilities
board modifies the cost per square foot as prescribed in subsection D,
paragraph 3, subdivision (c) of this section, the school
facilities board may deduct the cost of project management services and
preconstruction services from the required cost per square foot. The
school facilities board may decline to fund the project if
the square footage is no longer required due to revised enrollment
projections. The school facilities board may decline a
portion of the funding if a portion of the square footage is no longer needed
due to revised enrollment projections.
F. At the direction of the school facilities board, the division shall distribute the
monies needed for land for new schools so that land may be purchased at a price
that is less than or equal to fair market value and in advance of the
construction of the new school. If necessary, the school
facilities board may direct the
division to distribute monies for land to be leased for new schools if
the duration of the lease exceeds the life expectancy of the school facility by
at least fifty percent. A school district shall not use land
purchased or partially purchased with monies provided by at the
direction of the school facilities board for a
purpose other than a site for a school facility without obtaining prior written
approval from the school facilities board. A
school district shall not lease, sell or take any action that would diminish
the value of land purchased or partially purchased with monies provided by at the direction of the school facilities board without obtaining prior written approval from the school facilities board. The proceeds derived through
the sale of any land purchased or partially purchased, or the sale of buildings
funded or partially funded, with monies provided by at the
direction of the school facilities board shall be
returned to the state fund from which it was appropriated and to any other
participating entity on a proportional basis. Except as provided in
section 15-342, paragraph 33, if a school district acquires real property
by donation at an appropriate school site approved by the school
facilities board, the school facilities board shall
direct the division
to distribute an amount equal to twenty percent of the fair market value
of the donated real property that can be used for academic
purposes. The school district shall place the monies in the
unrestricted capital outlay fund and increase the unrestricted capital budget
limit by the amount of monies placed in the fund. Monies distributed
under this subsection shall be distributed from the new school facilities
fund. A school district that receives monies from the new school
facilities fund for a donation of land pursuant to section 15-342,
paragraph 33 shall not receive monies from the school facilities
board or the division
for the donation of real property pursuant to this subsection. A
school district shall not pay a consultant a percentage of the value of any of
the following:
1. Donations
of real property, services or cash from any of the following:
(a) Entities
that have offered to provide construction services to the school district.
(b) Entities
that have been contracted to provide construction services to the school
district.
(c) Entities
that build residential units in that school district.
(d) Entities
that develop land for residential use in that school district.
2. Monies
received from the school facilities board under this chapter on behalf
of the school district.
3. Monies
paid by or at the direction
of the school facilities board on behalf of the
school district.
G. In
addition to distributions to school districts based on pupil growth
projections, a school district may submit an application to the school
facilities board for monies from the new school facilities fund if one
or more school buildings have outlived their useful life or have
been condemned. If the school facilities
board determines that the school district needs to build a new school building
for these reasons, the school facilities board shall
remove the square footage computations that represent the building from the
computation of the school district's total square footage for purposes of this
section. If the square footage recomputation reflects that the
school district no longer meets building adequacy standards, the school
district qualifies for a distribution of monies from the new school
construction formula in an amount determined pursuant to subsection D of this
section. The school facilities board
may only modify the base cost per square foot prescribed in this subsection
under extraordinary circumstances for geographic factors or site conditions.
H. School
districts that receive monies from the new school facilities fund shall
establish a district new school facilities fund and shall use the monies in the
district new school facilities fund only for the purposes prescribed in this
section. By October 15 of each year, each school district shall report to the school facilities board the projects
funded at each school in the previous fiscal year with monies from the district
new school facilities fund and shall provide an accounting of the monies
remaining in the new school facilities fund at the end of the previous fiscal
year.
I. If
a school district has surplus monies received from the new school facilities
fund, the school district may use the surplus monies only for capital purposes
for the project for up to one year after completion of the
project. If the school district possesses surplus monies from the new
school construction project that have not been expended within one year of the
completion of the project, the school district shall return the surplus monies
to the school facilities board division
for deposit in the new school facilities fund.
J. The
board's consideration of any application filed after December 31 of the
year in which the property becomes territory in the vicinity of a military
airport or ancillary military facility as defined in section 28-8461 for
monies to fund the construction of new school facilities proposed to be located
in territory in the vicinity of a military airport or ancillary military
facility shall include, if after notice is transmitted to the military airport
pursuant to section 15-2002 41-5702
and before the public hearing the military airport provides comments and an
analysis concerning compatibility of the proposed school facilities with the
high noise or accident potential generated by military airport or ancillary
military facility operations that may have an adverse effect on public health
and safety, consideration and an analysis of the comments and an analysis
provided by the military airport before making a final determination.
K. If
a school district uses its own project manager for new school construction, the
members of the school district governing board and the project manager shall
sign an affidavit stating that the members and the project manager understand
and will follow the minimum adequacy requirements prescribed in section 15-2011 41-5711.
L. The
school facilities board division
shall establish a separate account in the new school facilities fund designated
as the litigation account to pay attorney fees, expert witness fees and other
costs associated with litigation in which the school facilities
board pursues the recovery of damages for deficiencies correction that resulted
from alleged construction defects or design defects that the school
facilities board believes caused or contributed to a failure of the
school building to conform to the building adequacy requirements prescribed in
section 15-2011 41-5711.
Attorney fees paid pursuant to this subsection shall not exceed the market rate
for similar types of litigation. On or before December 1 of each
year, the school facilities board shall report to the
joint committee on capital review the costs associated with current and
potential litigation that may be paid from the litigation account.
M. Until
the state board of education and the auditor general adopt rules pursuant to
section 15-213, subsection J, the school facilities
board may allow school districts to contract for construction services and
materials through the qualified select bidders list method of project delivery
for new school facilities pursuant to this section.
N. The
school facilities board shall submit electronically a
report on project management services and preconstruction services to the
governor, the president of the senate and the speaker of the house of
representatives by December 31 of each year. The report shall compare projects
that use project management and preconstruction services with those that do
not. The report shall address cost, schedule and other measurable
components of a construction project. School districts, construction-manager-at-risk
firms and project management firms that participate in a school
facilities board funded board-funded project
shall provide the information required by the school facilities
board in relation to this report.
O. If
a school district constructs new square footage according to section 15-342,
paragraph 33, the school facilities board shall review the
design plans and location of any new school facility submitted by school
districts and another party to determine whether the design plans comply with
the adequacy standards prescribed in section 15-2011 41-5711 and the square footage per pupil requirements
pursuant to subsection D, paragraph 3, subdivision (b) of this
section. When the school district qualifies for a distribution of
monies from the new school facilities fund according to this section, the school facilities board shall direct the division to
distribute monies to the school district from the new school facilities fund
for the square footage constructed under section 15-342, paragraph 33 at
the same cost per square foot established by this section that was in effect at
the time of the beginning of the construction of the school
facility. Before the school facilities board distributes
directs the division to distribute any monies
pursuant to this subsection, the school district shall demonstrate to the school facilities board that the facilities to be funded
pursuant to this section meet the minimum adequacy standards prescribed in
section 15-2011 41-5711. The
agreement entered into pursuant to section 15-342, paragraph 33 shall set
forth the procedures for the allocation of these funds to the parties that
participated in the agreement.
P. Accommodation
schools are not eligible for monies from the new school facilities fund.
Q. If
the school facilities board approves a school district for
funding from the new school facilities fund and the full legislative
appropriation is not available to the school district in the fiscal year
following the approval by the school facilities board, the school district may use any legally available
monies to pay for the land or the new construction project approved by the school facilities board and may reimburse the fund from which
the monies were used in subsequent years with legislative appropriations when
those appropriations are made available by this state. END_STATUTE
Sec. 71. Section
41-5751, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5751. Authorization
of state school facilities revenue bonds
A. The
school facilities board may issue negotiable revenue bonds
pursuant to this article. If authorized by the legislature, bonds may be issued
under this article in a principal amount not exceeding two
hundred million dollars $200,000,000 in a fiscal
year to:
1. Provide
monies to pay the cost of:
(a) Acquiring
real property and constructing new school facilities as provided by section 15-2041 41-5741.
(b) Bond
related expenses including any expenses incurred by the school
facilities board to issue and administer its bonds including
underwriting fees and costs, trustee fees, financial consultant fees, printing
and advertising costs, paying agent fees, transfer agent fees, legal,
accounting, feasibility consultant and other professional fees and expenses,
bond insurance or other credit enhancements or liquidity facilities, attorney
and accounting fees and expenses related to credit enhancement, bond insurance
or liquidity enhancement, remarketing fees, rating agency fees and costs,
travel and telephone expenses and all other fees considered necessary by the school facilities board in order to market and administer the
bonds.
2. Fully
or partially fund any reserves or sinking accounts established by the bond
resolution.
B. The
school facilities board shall authorize the bonds by
resolution. The resolution shall prescribe:
1. The
fixed or variable rate or rates of interest, the date or dates on which
interest is payable and the denominations of the bonds.
2. The
date or dates of the bonds and maturity, within ten years after the date of
issuance.
3. The
form of the bonds.
4. The
manner of executing the bonds.
5. The
medium and place of payment.
6. The
terms of redemption, which may provide for a premium for early redemption.
C. The
bonds issued pursuant to this article shall be known as state school facilities
revenue bonds. END_STATUTE
Sec. 72. Section
41-5752, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5752. Issuance
and sale of revenue bonds
A. The
school facilities board shall issue
the bonds in the number and amount provided in the resolution.
B. The
bonds shall be sold at public or private sale at the price and on the terms
prescribed in the resolution at, above or below par.
C. The
net proceeds of the sale of the bonds shall be deposited in the revenue bond
proceeds fund established pursuant to section 15-2053 41-5753. END_STATUTE
Sec. 73. Section
41-5753, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5753. School
facilities revenue bond proceeds fund; use for new school facilities
A. If
the school facilities board issues revenue bonds under
this article, the board shall establish a school facilities revenue bond
proceeds fund consisting of the net proceeds received from the sale of the
bonds.
B. The
school facilities board may use
monies in the school facilities revenue bond proceeds fund only for the
purposes provided in section 15-2051
41-5751, subsection A. Monies in the revenue bond
proceeds fund are exempt from lapsing under section 35-190.
C. The
state treasurer or bond trustee shall administer and account for the school
facilities revenue bond proceeds fund. END_STATUTE
Sec. 74. Section
41-5754, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5754. School
facilities revenue bond debt service fund
A. The
school facilities board shall establish a school
facilities revenue bond debt service fund consisting of monies transferred to
the fund pursuant to sections 37-521 and 42-5030.01.
B. Monies
in the school facilities revenue bond debt service fund may be used only for
the purposes authorized by this article.
C. The
state treasurer or bond trustee shall administer and account for the school
facilities revenue bond debt service fund. END_STATUTE
Sec. 75. Section
41-5755, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5755. Securing
principal and interest
A. In
connection with issuing bonds authorized by this article and to secure the
principal and interest on the bonds, the school facilities
board by resolution may:
1. Segregate
the school facilities revenue bond debt service fund into one or more accounts
and subaccounts and provide that bonds issued under this article may be secured
by a lien on all or part of the monies paid into the school facilities revenue
bond debt service fund or into any account or subaccount in the fund.
2. Provide
that the bonds issued under this article are secured by a first lien on the
monies paid into the school facilities revenue bond debt service fund as
provided by section 37-521, subsection B, paragraph 1 and section 42-5030.01,
and pledge and assign to or in trust for the benefit of the holder or holders
of the bonds all or part of the monies in the school facilities revenue bond
debt service fund, any account or subaccount in the fund or in the school
facilities revenue bond proceeds fund as is necessary to secure and pay the
principal, the interest and any premium on the bonds as they come due.
3. Establish
priorities among bondholders based on criteria adopted by the board.
4. Set
aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe
the procedure, if any, by which the terms of any contract with bondholders may
be amended or abrogated, the amount of bonds the holders of which must consent
to and the manner in which the consent may be given.
6. Provide
for payment of bond related expenses from the proceeds of the sale of the bonds
or other revenues authorized by this article and available to the board.
7. Provide
for the services of trustees, cotrustees, agents and consultants and other
specialized services with respect to the bonds.
8. Take
any other action that in any way may affect the security and protection of the
bonds or interest on the bonds.
9. Refund
any bonds issued by the board, if these bonds are secured from the same source
of revenues as the bonds authorized by this article, by issuing new bonds.
10. Issue
bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article.
B. Bonds
issued to refund any bonds issued by the board as provided by subsection A,
paragraphs 9 and 10 of this section are not subject to legislative
authorization or the two hundred million dollar limitation
$200,000,000 limit prescribed by section 15-2051 41-5751, subsection A. END_STATUTE
Sec. 76. Section
41-5757, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5757. Bond
purchase; cancellation
The school facilities board may purchase bonds for cancellation out
of any monies available for the purchase, at a price of not more than either of
the following:
1. If
the bonds are redeemable at the time of the purchase, the applicable redemption
price plus accrued interest to the next interest payment date on the bonds.
2. If
the bonds are not redeemable at the time of the purchase, the applicable
redemption price on the first date after the purchase on which the bonds become
subject to redemption plus accrued interest to that date. END_STATUTE
Sec. 77. Section
41-5758, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5758. Payment
of revenue bonds
A. The
revenue bonds shall be paid solely from monies from the school facilities
revenue bond debt service fund established by section 15-2054 41-5754 and other monies that are credited to the school
facilities revenue bond debt service fund.
B. The
state treasurer or the paying agent for the revenue bonds shall cancel all
revenue bonds when paid. END_STATUTE
Sec. 78. Section
41-5759, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5759. Investment
of monies in school facilities revenue bond proceeds fund
A. As
provided by section 15-2062 41-5761,
the school facilities board may
authorize the state treasurer or bond trustee to invest monies in the school
facilities revenue bond proceeds fund established by section 15-2053 41-5753.
B. The
order directing an investment shall state a specified time when the proceeds
from the sale of the bonds will be used. The state treasurer or bond
trustee shall make the investment in such a way as to mature at the specified
date.
C. All
monies earned as interest or otherwise derived from the investment of the
monies in the school facilities revenue bond proceeds fund shall be credited to
the school facilities revenue bond debt service fund established by section 15-2054 41-5754. END_STATUTE
Sec. 79. Section
41-5760, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5760. Investment
of monies in school facilities revenue bond debt service fund
A. The
school facilities board may
authorize the state treasurer or bond trustee to invest and reinvest any monies
in the school facilities revenue bond debt service fund as provided by section 15-2062 41-5761.
B. All
monies earned as interest or otherwise derived from the investment of the
monies in the school facilities revenue bond debt service fund shall be
credited to that fund. END_STATUTE
Sec. 80. Section
41-5761, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5761. Authorized
investments of fund monies
A. On
notice from the school facilities board,
the state treasurer or bond trustee shall invest and divest monies in either
the school facilities revenue bond proceeds fund or the school facilities
revenue debt service fund in any of the following:
1. Obligations
issued or guaranteed by the United States or any of the senior debt of its
agencies, sponsored agencies, corporations, sponsored corporations or
instrumentalities.
2. State,
county or municipal bonds issued in this state on which the payments of
interest have not been deferred.
3. Investment
agreements and repurchase agreements collateralized by investments described in
paragraph 1 of this subsection.
B. The
purchase of the securities shall be made by the state treasurer or bond trustee
on authority of a resolution of the board. The treasurer or bond
trustee shall act as custodian of all securities purchased. The
securities may be sold on an order of the board. END_STATUTE
Sec. 81. Section
41-5763, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5763. Effect
of changing circumstances on bonds; agreement of state
A. Bonds
issued under this article remain valid and binding obligations of the board
notwithstanding that, before the delivery of the bonds, any of the persons whose signatures appear on the bonds cease
to be members of the school facilities board.
B. An
amendment of any provision of this article does not diminish or impair the
validity of bonds issued under this article or the remedies and rights of
bondholders.
C. This
state pledges to and agrees with the holders of the bonds authorized by this
article that this state will not limit, alter or impair the rights and remedies
of the bondholders, until all bonds issued under this article, together with
interest on the bonds, interest on any unpaid installments of principal or
interest and all costs and expenses in connection with any action or
proceedings by or on behalf of the bondholders, are fully met and
discharged. The board, as agent for this state, may include this
pledge and undertaking in its resolutions and indentures authorizing and
securing the bonds. END_STATUTE
Sec. 82. Section
41-5764, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5764. Validity
of bonds; certification by attorney general
A. This
article constitutes full authority for authorizing and issuing bonds without
reference to any other law of this state. No other law with regard
to authorizing or issuing obligations or that in any way impedes or restricts
performing the acts authorized by this article may be construed to apply to any
proceedings taken or acts done pursuant to this article.
B. The
validity of bonds issued under this article does not depend on and is not
affected by the legality of any proceeding relating to any action by the school facilities board in granting or lending monies or the
acquisition, construction or improvement of any facility paid with monies
provided by the board.
C. The
school facilities board may submit to the attorney general
revenue bonds to be issued under this article after all proceedings for
authorizing the bonds have been completed. Within fifteen days after
submission, the attorney general shall examine the bonds and pass on the
validity of the bonds and the regularity of the proceedings. If the
bonds and proceedings comply with the Constitution of Arizona and this article,
and if the bonds when delivered and paid for will constitute binding and legal
obligations of the board, the attorney general shall certify in substance that
the bonds are issued according to the constitution and laws of this state. The
certificate shall also state that the bonds are also validly secured by the
obligation to transfer monies from designated sources of revenue, including
income on the permanent state school fund established by section 37-521,
to cover any insufficiencies.
D. The
bonds shall recite that they are regularly issued pursuant to this
article. That recital, together with the certification by the
attorney general under subsection C of this section, constitutes prima facie
evidence of the legality and validity of the bonds. From and after
the sale and delivery of the bonds, they are incontestable by the school facilities board or this state. END_STATUTE
Sec. 83. Section
41-5781, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5781. Authorization
of state school improvement revenue bonds; expiration
A. The
school facilities board may issue revenue bonds in a
principal amount not to exceed eight hundred million dollars
$800,000,000 pursuant to this article. The school facilities board may also issue qualified zone academy
bonds within the meaning of section 1397e of the United States internal revenue
code of 1986 or successor provisions pursuant to this article in a principal
amount not to exceed twenty million dollars
$20,000,000. The qualified zone academy bonds shall be
separately accounted for within the school improvement revenue bond proceeds
fund established by section 15-2083
41-5783. All bonds authorized by this section may be
issued for the following purposes:
1. To
provide monies to pay the cost of:
(a) Correcting
existing deficiencies as prescribed by section 15-2021.
(b) Bond
related bond-related expenses, including
any expenses incurred by the school facilities board to
issue and administer its bonds, including underwriting
fees and costs, trustee fees, financial consultant fees, printing and
advertising costs, paying agent fees, transfer agent fees, legal, accounting,
feasibility consultant and other professional fees and expenses, bond insurance
or other credit enhancements or liquidity facilities, attorney and accounting
fees and expenses related to credit enhancement, bond insurance or liquidity
enhancement, remarketing fees, rating agency fees and costs, travel and
telephone expenses and all other fees considered necessary by the school facilities board in order to market
and administer the bonds.
2. To
fully or partially fund any reserves or sinking accounts established by the
bond resolution.
B. The
school facilities board shall authorize the bonds by
resolution. The resolution shall prescribe:
1. The
fixed or variable rate or rates of interest, the date or dates on which
interest is payable and the denominations of the bonds.
2. The
date or dates of the bonds and maturity, within twenty years after the date of
issuance.
3. The
form of the bonds.
4. The
manner of executing the bonds.
5. The
medium and place of payment.
6. The
terms of redemption, which may provide for a premium for early redemption.
C. The
bonds issued pursuant to this article shall be known as state school
improvement revenue bonds.
D. The
authority of the school facilities board to issue school
improvement revenue bonds pursuant to this article expires from and after
June 30, 2003, except for bonds issued to refund any bonds issued by the
board. END_STATUTE
Sec. 84. Section
41-5782, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5782. Issuance
and sale of school improvement revenue bonds
A. The
school facilities board shall issue the school improvement
revenue bonds in the number and amount provided in the resolution.
B. The
bonds shall be sold at public or private sale at the price and on the terms
prescribed in the resolution at, above or below par.
C. The
net proceeds of the sale of the bonds shall be deposited in the school
improvement revenue bond proceeds fund established pursuant to section 15-2083 41-5783. END_STATUTE
Sec. 85. Section
41-5783, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5783. School
improvement revenue bond proceeds fund; use for school improvements
A. If
the school facilities board issues
revenue bonds under this article, the board shall establish a school
improvement revenue bond proceeds fund consisting of the net proceeds received
from the sale of the bonds.
B. The
school facilities board may use monies in the school
improvement revenue bond proceeds fund only for the purposes provided in
section 15-2081 41-5781,
subsection A. Monies in the school improvement revenue bond proceeds
fund are exempt from lapsing under section 35-190.
C. The
state treasurer or bond trustee shall administer and account for the school
improvement revenue bond proceeds fund. END_STATUTE
Sec. 86. Section
41-5784, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5784. School
improvement revenue bond debt service fund
A. The
school facilities board shall establish a school
improvement revenue bond debt service fund consisting of monies received by the
school facilities board pursuant to
section 42-5029, subsection E, section 42-5029.02,
subsection A, paragraph 1 and section 37-521, subsection B,
paragraph 1. All monies received pursuant to section 42-5029,
subsection E and section 42-5029.02, subsection A,
paragraph 1 shall be accounted for separately and shall be used only for
debt service of school improvement revenue bonds. All monies
received pursuant to section 37-521, subsection B, paragraph 1 shall be
accounted for separately and shall be used only for debt service of qualified
zone academy bonds.
B. Monies
in the school improvement revenue bond debt service fund may be used only for
the purposes authorized by this article.
C. The
state treasurer or bond trustee shall administer and account for the school
improvement revenue bond debt service fund. END_STATUTE
Sec. 87. Section
41-5785, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5785. Securing
principal and interest
A. In
connection with issuing bonds authorized by this article and to secure the
principal and interest on the bonds, the school facilities
board by resolution may:
1. Segregate
the school improvement revenue bond debt service fund into one or more accounts
and subaccounts and provide that bonds issued under this article may be secured
by a lien on all or part of the monies paid into the revenue bond debt service
fund or into any account or subaccount in the fund.
2. Provide
that the bonds issued under this article are be secured by a first lien on the monies paid into the school
improvement revenue bond debt service fund as provided by section 42-5029,
subsection E, paragraph 1 and section 42-5029.02,
subsection A, paragraph 1 and pledge and assign to or in trust for the
benefit of the holder or holders of the bonds all or part of the monies in the
school improvement revenue bond debt service fund, in any account or subaccount
in the fund or in the school improvement revenue bond proceeds fund as is
necessary to secure and pay the principal, the interest and any premium on the
bonds as they come due.
3. Establish
priorities among bondholders based on criteria adopted by the board.
4. Set
aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe
the procedure, if any, by which the terms of any contract with bondholders may
be amended or abrogated, the amount of bonds the holders of which must consent
to and the manner in which the consent may be given.
6. Provide
for payment of bond related bond-related
expenses from the proceeds of the sale of the bonds or other revenues
authorized by this article and available to the board.
7. Provide
for the services of trustees, cotrustees, agents and consultants and other
specialized services with respect to the bonds.
8. Take
any other action that in any way may affect the security and protection of the
bonds or interest on the bonds.
9. Refund
any bonds issued by the board, if these bonds are secured from the same source
of revenues as the bonds authorized by this article, by issuing new bonds,
whether at or before maturity of the bonds being refunded.
10. Issue
bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article.
B. Bonds
issued to refund any bonds that are issued by the board
as provided by subsection A, paragraphs 9 and 10 of this section are not
subject to legislative authorization or subject to the eight
hundred million dollar limitation $800,000,000 limit prescribed
by section 15-2081 41-5781,
subsection A. END_STATUTE
Sec. 88. Section
41-5787, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5787. Bond
purchase; cancellation
The school facilities board may purchase bonds
for cancellation out of any monies available for the purchase at a price of not
more than either of the following:
1. If
the bonds are redeemable at the time of the purchase, the applicable redemption
price plus accrued interest to the next interest payment date on the bonds.
2. If
the bonds are not redeemable at the time of the purchase, the applicable
redemption price on the first date after the purchase on which the bonds become
subject to redemption plus accrued interest to that date. END_STATUTE
Sec. 89. Section
41-5788, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5788. Payment
of revenue bonds
A. The
revenue bonds shall be paid solely from monies from the school improvement
revenue bond debt service fund established pursuant to section 15-2084 41-5784 and other monies that are credited to the school
improvement revenue bond debt service fund.
B. The
state treasurer or the paying agent for the revenue bonds shall cancel all
revenue bonds when paid. END_STATUTE
Sec. 90. Section
41-5789, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5789. Investment
of monies in school improvement revenue bond proceeds fund
A. As
provided by section 15-2091 41-5791,
the school facilities board may
authorize the state treasurer or bond trustee to invest monies in the school
improvement revenue bond proceeds fund established pursuant to section 15-2083 41-5783.
B. The
order directing an investment shall state a specified time when the proceeds
from the sale of the bonds will be used. The state treasurer or bond
trustee shall make the investment in such a way as to mature at the specified
date.
C. All
monies earned as interest or otherwise derived from the investment of the
monies in the school improvement revenue bond proceeds fund shall be credited
to the school improvement revenue bond debt service fund established by section
15-2084 41-5784. END_STATUTE
Sec. 91. Section
41-5790, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5790. Investment
of monies in school improvement revenue bond debt service fund
A. The
school facilities board may authorize the state treasurer
or bond trustee to invest and reinvest any monies in the school improvement
revenue bond debt service fund as provided by section 15-2091 41-5791.
B. All
monies earned as interest or otherwise derived from the investment of the
monies in the school improvement revenue bond debt service fund shall be
credited to that fund. END_STATUTE
Sec. 92. Section
41-5791, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5791. Authorized
investments of fund monies
A. On
notice from the school facilities board, the state
treasurer or bond trustee shall invest and divest monies in either the school
improvement revenue bond proceeds fund or the school improvement revenue bond debt service fund in any of the following:
1. Obligations
issued or guaranteed by the United States or any of the senior debt of its
agencies, sponsored agencies, corporations, sponsored corporations or
instrumentalities.
2. State,
county or municipal bonds that are issued in this state and on which the
payments of interest have not been deferred.
3. Investment
agreements and repurchase agreements collateralized by investments described in
paragraph 1 of this subsection.
B. The
purchase of the securities shall be made by the state treasurer or bond trustee
on authority of a resolution of the board. The treasurer or bond
trustee shall act as custodian of all securities purchased. The
securities may be sold on an order of the board. END_STATUTE
Sec. 93. Section
41-5793, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5793. Effect
of changing circumstances on bonds; agreement of state
A. Bonds
issued under this article remain valid and binding obligations of the board
notwithstanding that before the delivery of the bonds any of the persons whose
signatures appear on the bonds cease to be members of the school
facilities board.
B. An
amendment of any provision of this article does not diminish or impair the
validity of bonds issued under this article or the remedies and rights of
bondholders.
C. This
state pledges to and agrees with the holders of the bonds authorized by this
article that this state will not limit, alter or impair the rights and remedies
of the bondholders until all bonds issued under this article, together with
interest on the bonds, interest on any unpaid installments of principal or
interest and all costs and expenses in connection with any action or
proceedings by or on behalf of the bondholders, are fully met and
discharged. The board, as agent for this state, may include this
pledge and undertaking in its resolutions and indentures authorizing and securing
the bonds. END_STATUTE
Sec. 94. Section
41-5794, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5794. Validity
of bonds; certification by attorney general
A. This
article constitutes full authority for authorizing and issuing bonds without
reference to any other law of this state. No other law with regard to
authorizing or issuing obligations or that in any way impedes or restricts performing
the acts authorized by this article may be construed to apply to any
proceedings taken or acts done pursuant to this article.
B. The
validity of bonds issued under this article does not depend on and is not
affected by the legality of any proceeding relating to any action by the school facilities board in granting or lending monies or the
acquisition, construction or improvement of any facility paid with monies
provided by the board.
C. The
school facilities board may submit to the attorney general
revenue bonds to be issued under this article after all proceedings for
authorizing the bonds have been completed. Within fifteen days after
submission, the attorney general shall examine the bonds and pass on the
validity of the bonds and the regularity of the proceedings. If the bonds and
proceedings comply with the Constitution of Arizona and this article, and if
the bonds when delivered and paid for will constitute binding and legal
obligations of the board, the attorney general shall certify in substance that
the bonds are issued according to the constitution and laws of this state.
D. The
bonds shall recite that they are regularly issued pursuant to this
article. That recital, together with the certification by the
attorney general under subsection C of this section, constitutes prima facie
evidence of the legality and validity of the bonds. From and after
the sale and delivery of the bonds, they are incontestable by the school facilities board or this state. END_STATUTE
Sec. 95. Section
41-5805, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5805. Securing
principal and interest
To
secure the principal and interest on the impact aid revenue bonds, the school district governing board by
resolution may:
1. Segregate
the impact aid revenue bond debt service fund into one or more accounts and
subaccounts and provide that bonds issued under this article may be secured by a
lien on all or part of the monies paid into the impact aid revenue bond debt
service fund or into any account or subaccount in the fund.
2. Provide
that the bonds issued under this article are be secured by a first
lien on the monies paid in the impact aid revenue bond debt service fund as
provided by section 15-2104 41-5804 and pledge and assign
to or in trust for the benefit of the holder or holders of the bonds all or
part of the monies in the impact aid revenue bond debt service fund or an
account or subaccount as is necessary to secure and pay the principal, the
interest and any premium on the bonds as they come due.
3. Establish
priorities among bondholders based on criteria adopted by the governing board.
4. Set
aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe
the procedure, if any, by which the terms of any contract with bondholders may
be amended or abrogated, the amount of bonds the holders of which must consent
to and the manner in which the consent may be given.
6. Provide
for payment of bond related expenses from the proceeds of the sale of the bonds
or other revenues authorized by this article available to the school district.
7. Provide
for the services of trustees, cotrustees, agents and consultants and other
specialized services with respect to the bonds.
8. Take
any other action that in any way may affect the security and protection of the
bonds or interest on the bonds.
9. Refund
any bonds issued by the school district, if these bonds are secured from the
same source of revenues as the bonds authorized by this article, by issuing new
bonds.
10. Issue
bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article. END_STATUTE
Sec. 96. Section
41-5810, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5810. Authorized
investments of fund monies
A. The
monies in either the impact aid revenue bond building fund or debt service fund
may be invested and reinvested at the direction of the school district governing board in any
of the investments authorized by section 15-2062 41-5761.
B. The
purchase of the securities shall be made by the county treasurer or the
treasurer's designated agent on authority of a resolution of the governing
board. The county treasurer shall act as custodian of all securities
purchased. The securities may be sold on an order of the governing
board. END_STATUTE
Sec. 97. Section
41-5832, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5832. Indoor
air quality requirements
A. When
the school facilities board or the division
approves the construction of a school building, the school facilities board division shall
conduct an environmental site assessment. The board division shall consider site assessment standards in
accordance with the American society for testing and materials standard E1527,
standard practice for environmental site assessments: phase I environmental
site assessment process.
B. The
school facilities board or the division shall
not approve a school building project if any of the following conditions exist exists:
1. The
environmental site assessment indicates that the site cannot meet, within
reasonable expenditures, the same criteria established for residential
properties.
2. The
plans incorporate flat roof construction that does not have adequate pitch
towards drains in order to prevent pooling of water.
3. The
plans do not incorporate indoor air quality guidelines that are acceptable to
the board division. The board division shall consider indoor air
quality guidelines in accordance with the sheet metal and air conditioning
contractors national association's publication entitled "indoor air
quality guidelines for occupied buildings under construction".
C. Each
school district governing board that installed or renovated its HVAC system on
or after the effective date of this article August 12, 2005 shall ensure that its HVAC system meets both of
the following requirements:
1. Is
maintained and operated in a manner consistent with ventilation standards
acceptable to the board division. The
board division shall consider
ventilation standards in accordance with standard 62.
2. Is
operated continuously during school activity hours except during scheduled
maintenance and emergency repairs and except during periods for which school
officials can demonstrate to the governing board's satisfaction that the
quantity of outdoor air supplied by an air supply system that is not
mechanically driven meets the requirements for air changes per hour acceptable
to the board.
D. Each
school district governing board that installed or renovated its HVAC system
before the effective date of this article August
12, 2005 shall ensure that its HVAC system is maintained and operated in
accordance with the prevailing maintenance and standards at the time of the
installation or renovation of the HVAC system. END_STATUTE
Sec. 98. Section
41-5841, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5841. Achievement
district school application
A. The
credit enhancement eligibility board established by section 15-2152 41-5852 shall establish an application process,
application forms and selection criteria for a public school or charter school
to qualify as an achievement district school for the purposes of article 11 of
this chapter.
B. A
public school or charter school that meets all of the following criteria is
eligible to qualify as an achievement district school:
1. Has
been assigned a letter grade of A, or an equivalent successor classification,
pursuant to section 15-241.
2. Has
proven instructional strategies and curricula that demonstrate high academic
outcomes.
3. Has
a verifiable enrollment demand, including the placement of prospective pupils
on a waiting list.
4. Has
a sound financial plan that contemplates operational costs and future
enrollment growth.
5. Has
shown a commitment to provide technical assistance, including business
services, curriculum development and teacher training, to an underperforming
school in the state.
6. Meets
any other criteria established by the credit enhancement eligibility board.
C. The
credit enhancement eligibility board shall meet regularly to evaluate
achievement district school applications and shall either approve or deny each
application submitted. The board shall report its decision on each
application to the public school or charter school within ten business days
after the board's decision.
D. If
a school's application is approved pursuant to this section, the school
qualifies as an achievement district school and is eligible to apply for
participation in the Arizona public school credit enhancement program
established by section 15-2155 41-5855.
END_STATUTE
Sec. 99. Section
41-5851, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5851. Definitions
In this
article, unless the context otherwise requires:
1. "Achievement
district school" means a public school or a charter school that has
qualified as an achievement district school pursuant to article 10 of this
chapter and that has submitted an application with the board pursuant to this
article to obtain guaranteed financing.
2. "Board"
means the credit enhancement eligibility board established by section 15-2152 41-5852.
3. "Fund"
means the Arizona public school credit enhancement fund established by section 15-2154 41-5854.
4. "Guaranteed
financing" means debt obligations that are issued by or on behalf of a
public school or a charter school to acquire, construct, renovate, equip,
refinance or improve capital facilities and for which the board has approved a
guarantee of all or a portion of the principal and interest payments pursuant
to the program.
5. "Program"
means the Arizona public school credit enhancement program established by
section 15-2155 41-5855.
6. "Program
funding obligations" means program funding obligations approved and issued
by the board pursuant to section 15-2157 41-5857.
7. "Program
leverage ratio" means the ratio at any time between the aggregate
principal amount of guaranteed financings outstanding and the amounts on deposit
in the fund. END_STATUTE
Sec. 100. Section
41-5853, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5853. Powers
and duties of the board
A. The
board is a body corporate and politic and may have an official seal that is
judicially noticed.
B. The
board may:
1. Sue
and be sued in its own name.
2. Contract
and enter into agreements as necessary to carry out its responsibilities under
this article.
3. Contract
with experts, advisers, consultants and agents, including financial experts,
legal counsel and other advisers and consultants as may be necessary for
services to assist the board.
4. Make
and execute contracts and other instruments necessary or convenient for the
performance of its duties and the exercise of its power and functions.
5. Pursuant
to section 15-2155 41-5855,
approve financing for an achievement district school as guaranteed financing
under the program.
6. Do
all acts, whether or not expressly authorized, that may be deemed necessary or
proper for the protection of the monies in the Arizona public school credit
enhancement fund, except that the board may not take any action that would
create a general or moral obligation of this state or any agency of the state.
7. Contract
with any entity relating to guaranteed financings.
8. Issue
program funding obligations pursuant to section 15-2157 41-5857.
9. Adopt
rules governing the operation of the program.
10. Take
any other action that is necessary or appropriate to carry out this article.
C. The
school facilities board division
shall provide staff as requested by the board to support the activities of the credit enhancement eligibility board. END_STATUTE
Sec. 101. Section
41-5854, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5854. Arizona
public school credit enhancement fund; purposes; exemption
A. The
Arizona public school credit enhancement fund is established consisting of:
1. Payments
of program participation fees paid by schools that have participated in
guaranteed financings pursuant to section 15-2155 41-5855.
2. Repayments
of monies of the fund that are used to make payments of principal and interest
on guaranteed financings pursuant to section 15-2156 41-5856.
3. The
proceeds of program funding obligations issued by the board pursuant to section
15-2157 41-5857.
4. Gifts,
grants and donations received from any public or private source to carry out
the purposes of this article.
5. Interest
earnings and investment income earned on monies in the fund.
6. Any
other monies distributed, paid or deposited to the fund by law or pursuant to
contracts arising out of a guaranteed financing.
B. Monies
and other assets of the fund shall be held and disbursed separate and apart
from all other monies or assets of this state or political subdivisions of this
state.
C. Monies
in the fund shall be used for the following purposes:
1. By
the state treasurer to make payments of principal or interest on guaranteed
financings pursuant to section 15-2156 41-5856.
2. By
the board at its direction:
(a) To
pay any operational or administrative expenses of the board, including fees for
advisers, rating agencies and professionals retained by the board.
(b) To
make payments to bond insurers to provide municipal bond insurance guaranteeing
the timely payment of all or a portion of any guaranteed financing.
(c) To
make payments of principal and interest in connection with any program funding
obligations.
D. The
state treasurer shall administer the fund and shall disburse monies in the fund
as required by subsection C, paragraph 1 of this section and as directed by the
board pursuant to subsection C, paragraph 2 of this section. The
state treasurer shall separately account for monies received from each source
listed in subsection A of this section and may establish accounts and
subaccounts as necessary to properly account for and use monies in the fund.
E. Monies
received pursuant to subsection A of this section may not be used for any
purpose except guaranteeing or making payments of principal and interest on
guaranteed financings approved by the board and any costs and expenses of the
program or the board as provided in this article.
F. The
state treasurer shall invest and divest monies in the fund as provided in
section 35-313, and monies earned from investment shall be credited to
the fund. Monies in the fund are exempt from the provisions of section 35-190
relating to lapsing of appropriations. END_STATUTE
Sec. 102. Section
41-5857, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5857. Program
funding obligations; immunity
A. The
board may deliver nonnegotiable program funding obligations in one or more
series in an aggregate principal amount of not more than eighty
million dollars $80,000,000.
B. The
board shall sell any program funding obligations prescribed in subsection A of
this section to the state treasurer, and the state treasurer shall buy such
obligations as an allowable investment of the fund. The total
principal amount of program funding obligations outstanding at any one time may
not exceed eighty million dollars $80,000,000. The
board may reissue to the state treasurer any called program funding obligations
on the same terms as the obligations that were called and in a principal amount
that does not exceed the principal amount called.
C. The
board shall authorize each program funding obligation by a resolution that sets
forth:
1. The
rate or rates of interest.
2. The
date or dates of maturity.
3. The
terms of redemption.
4. The
form and manner of execution of the program funding obligation.
5. Any
terms necessary to secure credit enhancement or other sources of payment or
security.
6. Any
other terms deemed necessary or advisable by the board.
D. The
interest rate to be paid on program funding obligations authorized by the board
pursuant to subsection C of this section shall be equal to the sum of the
following:
1. The
actual rate of interest earned by the state treasurer on the investment of the
proceeds from the sale of the program funding obligations.
2. For
any period during which guaranteed financings are outstanding, an additional
interest rate of at least one hundred basis points as determined by the board.
E. The
principal of and interest on the program funding obligations shall be secured
by and paid from monies deposited in the fund, on the terms set forth in the
resolution, and are subordinate to any payments that are necessary to be made
for guaranteed financings. Principal payments shall be paid on a
basis proportional to the reduction in outstanding principal of guaranteed
financings under the program. Interest shall be paid on an annual or
more frequent basis as set forth in the resolution of the board. The
monies pledged under this section to the program funding obligations are
immediately subject to the lien of the pledge without any future physical
delivery or further act. A lien of any pledge is valid and binding against all
parties having claims of any kind in tort, contract or otherwise against the
board irrespective of whether the parties have notice of the lien. When placed
in the board's records, the resolution by which the pledge is created is notice
to all concerned of the creation of the pledge.
F. Program
funding obligations shall be sold at private sale to the state treasurer at a
price and on terms provided by the board in its resolution pursuant to this
section. The proceeds from the sale of program funding obligations shall
be deposited into the fund and may be used for the purposes of the fund as set
forth in section 15-2154 41-5854.
G. Program
funding obligations are:
1. Special
obligations of the board.
2. Not
obligations that are general, special or otherwise of this state.
3. Not
a legal debt of this state.
4. Payable
and enforceable only from the monies and fund pledged and assigned by the board
in its resolution.
H. Any
member of the board or a person executing a program funding obligation is not
personally liable for the payment of the program funding obligation. END_STATUTE
Sec. 103. Section
41-5858, Arizona Revised Statutes, as transferred and renumbered, is amended to
read:
START_STATUTE41-5858. Quarterly
reports
Within
thirty days after the last day of each calendar quarter, the school
facilities board division staff, in collaboration
with the credit enhancement eligibility board, shall
submit to the speaker of the house of representatives, the president of the
senate, the director of the joint legislative budget committee and the director
of the governor's office of strategic planning and budgeting a quarterly report
on the implementation of the program pursuant to this article. The
quarterly report shall include at least the following information:
1. A
listing of all outstanding guaranteed financings approved by the board,
including the following information for each financing:
(a) The
name of the public school or charter school by or on behalf of which the debt
obligation was issued.
(b) The
date of the issuance.
(c) The
original amount of the issuance.
(d) The
interest rate of the issuance.
(e) The
term length of the issuance.
(f) The
credit rating of the issuance.
(g) The
amount of principal and interest due on the debt obligation in the current
fiscal year.
(h) The
purpose for which the debt obligation was issued, separately delineated for
obligations to construct new capital facilities, renovate existing capital
facilities or refinance existing debt obligations.
(i) The
current outstanding principal of the debt obligation.
2. A
listing of all guaranteed financings subject to section 15-2156 41-5856 in the prior quarter, including the amounts
disbursed for payment of principal and interest for the guaranteed financing
and the terms and conditions the school is subject to under section 15-2156 41-5856, subsections
C, D and E.
3. The
current balance of the Arizona public school credit enhancement fund.
4. The
current program leverage ratio. END_STATUTE
Sec. 104. Subject
to the requirements of article IV, part 1, section 1, Constitution of Arizona,
section 42-5029, Arizona Revised Statutes, is amended to read:
START_STATUTE42-5029. Remission
and distribution of monies; withholding; definition
A. The
department shall deposit, pursuant to sections 35-146 and 35-147,
all revenues collected under this article and articles 4, 5 and 8 of this
chapter pursuant to section 42-1116, separately accounting for:
1. Payments
of estimated tax under section 42-5014, subsection D.
2. Revenues
collected pursuant to section 42-5070.
3. Revenues
collected under this article and article 5 of this chapter from and after June
30, 2000 from sources located on Indian reservations in this state.
4. Revenues
collected pursuant to section 42-5010, subsection G and section 42-5155,
subsection D.
5. Revenues
collected pursuant to section 42-5010.01 and section 42-5155,
subsection E.
B. The
department shall credit payments of estimated tax to an estimated tax clearing
account and each month shall transfer all monies in the estimated tax clearing account
to a fund designated as the transaction privilege and severance tax clearing
account. The department shall credit all other payments to the transaction
privilege and severance tax clearing account, separately accounting for the
monies designated as distribution base under sections 42-5010, 42-5164
and 42-5205. Each month the department shall report to the
state treasurer the amount of monies collected pursuant to this article and
articles 4, 5 and 8 of this chapter.
C. On
notification by the department, the state treasurer shall distribute the monies
deposited in the transaction privilege and severance tax clearing account in
the manner prescribed by this section and by sections 42-5164 and 42-5205,
after deducting warrants drawn against the account pursuant to sections 42-1118
and 42-1254.
D. Of
the monies designated as distribution base, and subject to the requirements of
section 42-5041, the department shall:
1. Pay
twenty-five percent to the various incorporated municipalities in this
state in proportion to their population to be used by the municipalities for
any municipal purpose.
2. Pay
38.08 percent to the counties in this state by averaging the following
proportions:
(a) The
proportion that the population of each county bears to the total state
population.
(b) The
proportion that the distribution base monies collected during the calendar
month in each county under this article, section 42-5164, subsection B
and section 42-5205, subsection B bear to the total distribution base
monies collected under this article, section 42-5164, subsection B and
section 42-5205, subsection B throughout the state for the calendar
month.
3. Pay
an additional 2.43 percent to the counties in this state as follows:
(a) Average
the following proportions:
(i) The
proportion that the assessed valuation used to determine secondary property
taxes of each county, after deducting that part of the assessed valuation that
is exempt from taxation at the beginning of the month for which the amount is
to be paid, bears to the total assessed valuations used to determine secondary
property taxes of all the counties after deducting that portion of the assessed
valuations that is exempt from taxation at the beginning of the month for which
the amount is to be paid. Property of a city or town that is not within or
contiguous to the municipal corporate boundaries and from which water is or may
be withdrawn or diverted and transported for use on other property is
considered to be taxable property in the county for purposes of determining
assessed valuation in the county under this item.
(ii) The
proportion that the distribution base monies collected during the calendar
month in each county under this article, section 42-5164, subsection B
and section 42-5205, subsection B bear to the total distribution base
monies collected under this article, section 42-5164, subsection B and
section 42-5205, subsection B throughout the this state for the calendar month.
(b) If
the proportion computed under subdivision (a) of this paragraph for any county
is greater than the proportion computed under paragraph 2 of this subsection,
the department shall compute the difference between the amount distributed to
that county under paragraph 2 of this subsection and the amount that would have
been distributed under paragraph 2 of this subsection using the proportion
computed under subdivision (a) of this paragraph and shall pay that difference
to the county from the amount available for distribution under this paragraph.
Any monies remaining after all payments under this subdivision shall be
distributed among the counties according to the proportions computed under
paragraph 2 of this subsection.
4. After
any distributions required by sections 42-5030, 42-5030.01, 42-5031,
42-5032, 42-5032.01 and 42-5032.02, and after making any
transfer to the water quality assurance revolving fund as required by section
49-282, subsection B, credit the remainder of the monies designated as
distribution base to the state general fund. From this amount the
legislature shall annually appropriate to:
(a) The
department of revenue sufficient monies to administer and enforce this article
and articles 5 and 8 of this chapter.
(b) The
department of economic security monies to be used for the purposes stated in
title 46, chapter 1.
(c) The
firearms safety and ranges fund established by section 17-273, fifty thousand dollars $50,000 derived
from the taxes collected from the retail classification pursuant to section 42-5061
for the current fiscal year.
E. If
approved by the qualified electors voting at a statewide general election, all
monies collected pursuant to section 42-5010, subsection G and section 42-5155,
subsection D shall be distributed each fiscal year pursuant to this
subsection. The monies distributed pursuant to this subsection are
in addition to any other appropriation, transfer or other allocation of public
or private monies from any other source and shall not supplant, replace or
cause a reduction in other school district, charter school, university or community
college funding sources. The monies shall be distributed as follows:
1. If
there are outstanding state school facilities revenue bonds pursuant to title 15 41, chapter 16 56, article 7, each month one-twelfth of the amount that
is necessary to pay the fiscal year's debt service on outstanding state school
improvement revenue bonds for the current fiscal year shall be transferred each
month to the school improvement revenue bond debt service fund established by
section 15-2084 41-5784. The
total amount of bonds for which these monies may be allocated for the payment
of debt service shall not exceed a principal amount of eight
hundred million dollars $800,000,000 exclusive of
refunding bonds and other refinancing obligations.
2. After
any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent percent of the remaining monies
collected during the preceding month shall be transferred to the technology and
research initiative fund established by section 15-1648 to be distributed
among the universities for the purpose of investment in technology and research-based
initiatives.
3. After
the transfer of monies pursuant to paragraph 1 of this subsection, three per cent percent of the remaining monies
collected during the preceding month shall be transferred to the workforce
development account established in each community college district pursuant to
section 15-1472 for the purpose of investment in workforce development
programs.
4. After
transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth
of the amount a community college that is owned, operated or chartered by a
qualifying Indian tribe on its own Indian reservation would receive pursuant to
section 15-1472, subsection D, paragraph 2 if it were a community college
district shall be distributed each month to the treasurer or other designated
depository of a qualifying Indian tribe. Monies distributed pursuant to this
paragraph are for the exclusive purpose of providing support to one or more
community colleges owned, operated or chartered by a qualifying Indian tribe
and shall be used in a manner consistent with section 15-1472, subsection
B. For the purposes of this paragraph, "qualifying Indian
tribe" has the same meaning as defined in section 42-5031.01,
subsection D.
5. After
transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth
of the following amounts shall be transferred each month to the department of
education for the increased cost of basic state aid under section 15-971
due to added school days and associated teacher salary increases enacted in
2000:
(a) In
fiscal year 2001-2002, $15,305,900.
(b) In
fiscal year 2002-2003, $31,530,100.
(c) In
fiscal year 2003-2004, $48,727,700.
(d) In
fiscal year 2004-2005, $66,957,200.
(e) In
fiscal year 2005-2006 and each fiscal year thereafter, $86,280,500.
6. After
transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars $7,800,000
is appropriated each fiscal year, to be paid in monthly installments, to
the department of education to be used for school safety as provided in section
15-154 and two hundred thousand dollars $200,000 is appropriated each fiscal year, to be paid in
monthly installments, to the department of education to
be used for the character education matching grant program as provided in
section 15-154.01.
7. After
transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no not more than seven
million dollars $7,000,000 may be appropriated by
the legislature each fiscal year to the department of education to be used for
accountability purposes as described in section 15-241 and title 15,
chapter 9, article 8.
8. After
transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars $1,500,000
is appropriated each fiscal year, to be paid in monthly installments, to
the failing schools tutoring fund established by section 15-241.
9. After
transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty-five million dollars $25,000,000 shall
be transferred each fiscal year to the state general fund to reimburse the state general fund for the cost of the income tax credit
allowed by section 43-1072.01.
10. After
the payment of monies pursuant to paragraphs 1 through 9 of this subsection,
the remaining monies collected during the preceding month shall be transferred
to the classroom site fund established by section 15-977. The
monies shall be allocated as follows in the manner prescribed by section 15-977:
(a) Forty
per cent percent shall be allocated
for teacher compensation based on performance.
(b) Twenty
per cent percent shall be allocated
for increases in teacher base compensation and employee related expenses.
(c) Forty
per cent percent shall be allocated
for maintenance and operation purposes.
F. The
department shall credit the remainder of the monies in the transaction
privilege and severance tax clearing account to the state general fund, subject
to any distribution required by section 42-5030.01.
G. Notwithstanding
subsection D of this section, if a court of competent jurisdiction finally
determines that tax monies distributed under this section were illegally
collected under this article or articles 5 and 8 of this chapter and orders the
monies to be refunded to the taxpayer, the department shall compute the amount
of such monies that was distributed to each city, town and county under this
section. Each city's, town's and county's proportionate share of the
costs shall be based on the amount of the original tax payment each
municipality and county received. Each month the state treasurer shall reduce
the amount otherwise distributable to the city, town and county under this
section by one thirty-sixth 1/36 of
the total amount to be recovered from the city, town or county until the total
amount has been recovered, but the monthly reduction for any city, town or
county shall not exceed ten percent of the full monthly distribution to that
entity. The reduction shall begin for the first calendar month after
the final disposition of the case and shall continue until the total amount,
including interest and costs, has been recovered.
H. On
receiving a certificate of default from the greater Arizona development
authority pursuant to section 41-2257 or 41-2258 and to the extent
not otherwise expressly prohibited by law, the state treasurer shall withhold
from the next succeeding distribution of monies pursuant to this section due to
the defaulting political subdivision the amount specified in the certificate of
default and immediately deposit the amount withheld in the greater Arizona
development authority revolving fund. The state treasurer shall continue
to withhold and deposit the monies until the greater Arizona development
authority certifies to the state treasurer that the default has been
cured. In no event may the state treasurer withhold any amount that
the defaulting political subdivision certifies to the state treasurer and the
authority as being necessary to make any required deposits then due for the
payment of principal and interest on bonds of the political subdivision that
were issued before the date of the loan repayment agreement or bonds and that
have been secured by a pledge of distributions made pursuant to this section.
I. Except
as provided by sections 42-5033 and 42-5033.01, the population of a
county, city or town as determined by the most recent United States decennial
census plus any revisions to the decennial census certified by the United
States bureau of the census shall be used as the basis for apportioning monies
pursuant to subsection D of this section.
J. Except
as otherwise provided by this subsection, on notice from the department of
revenue pursuant to section 42-6010, subsection B, the state treasurer
shall withhold from the distribution of monies pursuant to this section to the
affected city or town the amount of the penalty for business location municipal
tax incentives provided by the city or town to a business entity that locates a
retail business facility in the city or town. The state treasurer
shall continue to withhold monies pursuant to this subsection until the entire
amount of the penalty has been withheld. The state treasurer shall credit any
monies withheld pursuant to this subsection to the state general fund as
provided by subsection D, paragraph 4 of this section. The state
treasurer shall not withhold any amount that the city or town certifies to the
department of revenue and the state treasurer as being necessary to make any
required deposits or payments for debt service on bonds or other long-term
obligations of the city or town that were issued or incurred before the
location incentives provided by the city or town.
K. On
notice from the auditor general pursuant to section 9-626, subsection D,
the state treasurer shall withhold from the distribution of monies pursuant to
this section to the affected city the amount computed pursuant to section 9-626,
subsection D. The state treasurer shall continue to withhold monies
pursuant to this subsection until the entire amount specified in the notice has
been withheld. The state treasurer shall credit any monies withheld
pursuant to this subsection to the state general fund as provided by subsection
D, paragraph 4 of this section.
L. Except
as otherwise provided by this subsection, on notice from the attorney general
pursuant to section 41-194.01, subsection B, paragraph 1 that an
ordinance, regulation, order or other official action adopted or taken by the
governing body of a county, city or town violates state law or the Constitution
of Arizona, the state treasurer shall withhold the distribution of monies
pursuant to this section to the affected county, city or town and shall
continue to withhold monies pursuant to this subsection until the attorney
general certifies to the state treasurer that the violation has been
resolved. The state treasurer shall redistribute the monies withheld
pursuant to this subsection among all other counties, cities and towns in
proportion to their population as provided by subsection D of this section.
The state treasurer shall not withhold any amount that the county, city or town
certifies to the attorney general and the state treasurer as being necessary to
make any required deposits or payments for debt service on bonds or other long-term
obligations of the county, city or town that were issued or incurred before
committing the violation.
M. For
the purposes of this section, "community college district" means a
community college district that is established pursuant to sections 15-1402
and 15-1403 and that is a political subdivision of this state and, unless
otherwise specified, includes a community college tuition financing district
established pursuant to section 15-1409. END_STATUTE
Sec. 105. Section
42-5030.01, Arizona Revised Statutes, is amended to read:
START_STATUTE42-5030.01. Distribution
of revenues for school facilities
From and
after June 30, 1999, if there are outstanding state school facilities revenue
bonds pursuant to title 15 41,
chapter 16 56, article 6, and if the
amount of monies available under section 37-521, subsection B, paragraph
1 is insufficient to pay the debt service due on the outstanding bonds in that
fiscal year, the state treasurer shall transfer to the state school facilities
revenue bond debt service fund established pursuant to section 15-2054
41-5754 the amount that is necessary to pay the
debt service due in that fiscal year on the outstanding bonds from state
general fund revenues that were collected pursuant to this chapter. END_STATUTE
Sec. 106. Section
43-1089.02, Arizona Revised Statutes, is amended to read:
START_STATUTE43-1089.02. Credit
for donation of school site
A. A
credit is allowed against the taxes imposed by this title in the amount of
thirty percent of the value of real property and improvements donated by the
taxpayer to a school district or a charter school for use as a school or as a
site for the construction of a school.
B. To
qualify for the credit:
1. The
real property and improvements must be located in this state.
2. The
real property and improvements must be conveyed unencumbered and in fee simple,
except that:
(a) The
conveyance must include as a deed restriction and protective covenant running
with title to the land the requirement that as long as the donee holds title to
the property the property shall only be used as a school or as a site for the
construction of a school, subject to subsection I or J of this section.
(b) In
the case of a donation to a charter school, the donor shall record a lien on
the property as provided by subsection J, paragraph 3 of this section.
3. The
conveyance shall not violate section 15-341, subsection D or section 15-183,
subsection U.
C. For
the purposes of this section, the value of the donated property is the
property's fair market value as determined in an appraisal as defined in
section 32-3601 that is conducted by an independent party and that is
paid for by the donee.
D. If
the property is donated by co-owners, including individual partners in a
partnership, each donor may claim only the pro rata share of the allowable
credit under this section based on the ownership interest. If the
property is donated by a husband and wife who file separate returns for a
taxable year in which they could have filed a joint return, they may determine
between them the share of the credit each will claim. The total of
the credits allowed all co-owner donors may not exceed the allowable credit.
E. If
the allowable tax credit exceeds the taxes otherwise due under this title on
the claimant's income, or if there are no taxes due under this title, the
taxpayer may carry the amount of the claim not used to offset the taxes under
this title forward for not more than five consecutive taxable years' income tax
liability.
F. The
credit under this section is in lieu of any deduction pursuant to section 170
of the internal revenue code taken for state tax purposes.
G. On
written request by the donee, the donor shall disclose in writing to the donee
the amount of the credit allowed pursuant to this section with respect to the
property received by the donee.
H. A
school district or charter school may refuse the donation of any property for
purposes of this section.
I. If
the donee is a school district:
1. The
district shall notify the division of school facilities board established by section 15-2001
within the department of administration and furnish the board division with any information the board division requests regarding the
donation. A school district shall not accept a donation pursuant to
this section unless the school facilities board division has reviewed the proposed donation and has issued a
written determination that the real property and improvements are suitable as a
school site or as a school. The school facilities
board division shall issue a determination that
the real property and improvements are not suitable as a school site or as a
school if the expenses that would be necessary to make the property suitable as
a school site or as a school exceed the value of the proposed donation.
2. The
district may sell any donated property pursuant to section 15-342, but
the proceeds from the sale shall only be used for capital
projects. The school facilities oversight board shall direct the division of school facilities
within the department of administration to withhold an amount that
corresponds to the amount of the proceeds from any monies that would otherwise
be due the school district from the school facilities
board pursuant to section 15-2041
41-5741.
J. If
the donee is a charter school:
1. The
charter school shall:
(a) Immediately
notify the sponsor of the charter school by certified mail and shall furnish
the sponsor with any information requested by the sponsor regarding the
donation during the ten year ten-year
period after the conveyance is recorded.
(b) Notify
the sponsor by certified mail, and the sponsor shall notify the state
treasurer, in the event of the charter school's financial failure or if the
charter school:
(i) Fails
to establish a charter school on the property within forty-eight months
after the conveyance is recorded.
(ii) Fails
to provide instruction to pupils on the property within forty-eight months
after the conveyance is recorded.
(iii) Establishes
a charter school on the property but subsequently ceases to operate the charter
school on the property for twenty-four consecutive months or fails to
provide instruction to pupils on the property for twenty-four consecutive
months.
2. The
charter school, or a successor in interest, shall pay to the state treasurer
the amount of the credit allowed under this section, or if that amount is
unknown, the amount of the allowable credit under this section, if any of the
circumstances listed in paragraph 1, subdivision (b) of this subsection
occurs. If the amount is not paid within one year after the treasurer receives
notice under paragraph 1, subdivision (b) of this subsection, a penalty and
interest shall be added, determined pursuant to title 42, chapter 1, article 3.
3. A
tax credit under this section constitutes a lien on the property, which the
donor must record along with the title to the property to qualify for the
credit. The amount of the lien is the amount of the allowable credit under
this section, adjusted according to the average change in the GDP price
deflator, as defined in section 41-563, for each calendar year since the
donation, but not exceeding twelve and one-half percent more than the allowable
credit. The lien is subordinate to any liens securing the financing
of the school construction. The lien is extinguished on the earliest
of the following:
(a) Ten
years after the lien is recorded. After that date, the charter
school, or a successor in interest, may request the state treasurer to release
the lien.
(b) On
payment to the state treasurer by the donee charter school, or by a successor
in interest, of the amount of the allowable credit under this section, either
voluntarily or as required by paragraph 2 of this subsection. After the
required amount is paid, the charter school or successor in interest may
request the state treasurer to release the lien.
(c) On
conveyance of fee simple title to the property to a school district.
(d) On
enforcement and satisfaction of the lien pursuant to paragraph 4 of this
subsection.
4. The
state treasurer shall enforce the lien by foreclosure within one year after
receiving notice of any of the circumstances described in paragraph 1,
subdivision (b) of this subsection.
5. Subject
to paragraphs 3 and 4 of this subsection, the charter school may sell any
donated property." END_STATUTE
Renumber to
conform
Page 107,
line 39, after "year" insert ", except that school districts and
charter schools with fewer than one hundred eighty days of instruction pursuant
to section 15-341.01, Arizona Revised Statutes, shall report whether they
offered in-person, teacher-led instruction for an equivalent
proportion of instructional days"
Page 109,
line 2, strike "complete" insert "subsequent"
Page 111,
line 5, after "facilities" insert "oversight"
Line 7,
strike "15-2041" insert "41-5741"
Line 8,
after "as" insert "transferred, renumbered and"
Between
lines 32 and 33, insert:
"Sec. 115. Career technical education; funding following student graduation;
fiscal years 2021-2022 through 2024-2025
Notwithstanding
section 15-393, subsection Y, Arizona Revised Statutes, as added by this act,
for fiscal years 2021-2022, 2022-2023, 2023-2024 and 2024-2025, a student
participating in an approved career technical education program included on the
in-demand regional education list compiled pursuant to section 15-393,
subsection X, Arizona Revised Statutes, as added by this act, on the date the
list is compiled qualifies for funding in the year immediately following
graduation.
Sec. 116. Terms of school facilities board members
Notwithstanding
section 41-5701.02, Arizona Revised Statutes, as transferred, renumbered
and amended by this act, a person who is serving as a member of the school
facilities board on the effective date of this act is eligible to continue to
serve as a member of the school facilities oversight board until expiration of
the current term of office.
Sec. 117. Succession
A. As
provided by this act, the school facilities oversight board within the school
facilities division within the department of administration and the school
facilities division within the department of administration succeed to the
authority, powers, duties and responsibilities of the school facilities board
as provided in this act.
B. This
act does not alter the effect of any actions that were taken or impair the
valid obligations of the school facilities board in existence before the
effective date of this act.
C. Administrative
rules and orders that were adopted by the school facilities board continue in
effect until superseded by administrative action by the school facilities
oversight board or the school facilities division within the department of
administration as provided in this act.
D. All
administrative matters, contracts and judicial and quasi-judicial
actions, whether completed, pending or in process, of the school facilities
board on the effective date of this act are transferred to and retain the same
status with the school facilities oversight board or the school facilities
division within the department of administration as provided in this act.
E. All
certificates, licenses, registrations, permits and other indicia of
qualification and authority that were issued by the school facilities board
retain their validity for the duration of their terms of validity as provided
by law.
F. All
equipment, records, furnishings and other property, all data and investigative
findings, all obligations and all appropriated monies that remain unexpended
and unencumbered on the effective date of this act of the school facilities
board are transferred to the school facilities oversight board or the school
facilities division within the department of administration as provided in this
act.
G. All
personnel who are under the state personnel system and employed by the school
facilities board are transferred to comparable positions and pay
classifications in the respective administrative units of the school facilities
oversight board on the effective date of this act.
Sec. 118. Classroom site fund; per pupil calculation; recalculation; fiscal
year 2021-2022; retroactivity
A. Notwithstanding
section 15-977, subsection G, paragraph 1, Arizona Revised Statutes, within
ten days after the effective date of this act, the staff of the joint
legislative budget committee shall revise its calculation of the per pupil
amount from the classroom site fund established by section 15-977,
Arizona Revised Statutes, for fiscal year 2021-2022 to include children
participating in an Arizona empowerment scholarship account as prescribed in
section 15-2402, subsection D, Arizona Revised Statutes, as added by this
act.
B. Subsection
A of this section applies retroactively to from and after March 29, 2021."
Renumber to
conform
Page 111,
between lines 38 and 39, insert:
"A. Section
15-342.05, Arizona Revised Statutes, as added by this act, applies
retroactively to from and after June 30, 2021."
Reletter to
conform
After line
42, insert:
"Sec. 121. Effective date
Section 15-973,
Arizona Revised Statutes, as amended by this act, is effective from and after
June 30, 2022.
Sec. 122. Conditional enactment
Section 15-711.01,
Arizona Revised Statutes, as added by this act, does not become effective
unless House Bill 2035, fifty-fifth legislature, first regular session,
relating to parental rights and sex education instruction, becomes law.
Sec. 123. Requirements for enactment; three-fourths vote
Pursuant
to article IV, part 1, section 1, Constitution of Arizona, section 42-5029,
Arizona Revised Statutes, as amended by this act, is effective only on the
affirmative vote of at least three-fourths of the members of each house of the
legislature."
Amend title to conform
Bill
Number: S.B. 1826