A.R.S. tit. 15 | Title 15 — Education

Chapter 1 General Provisions

Article 1 General Provisions

§ 15-101 Definitions

In this title, unless the context otherwise requires:

"Accommodation school" means either:

(a) A school that is operated through the county board of supervisors and the county school superintendent and that the county school superintendent administers to serve a military reservation or territory that is not included within the boundaries of a school district.

(b) A school that provides educational services to homeless children or alternative education programs as provided in section 15-308, subsection B.

(c) A school that is established to serve a military reservation, the boundaries of which are coterminous with the boundaries of the military reservation on which the school is located.

"Assessed valuation" means the valuation derived by applying the applicable percentage as provided in title 42, chapter 15, article 1 to the full cash value or limited property value, whichever is applicable, of the property.
"Charter holder" means a person that enters into a charter with the state board for charter schools. For the purposes of this paragraph, "person" means an individual, partnership, corporation, association or public or private organization of any kind.
"Charter school" means a public school established by contract with the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts pursuant to article 8 of this chapter to provide learning that will improve pupil achievement.
"Child with a disability" means a child with a disability as defined in section 15-761.
"Class A bonds" means general obligation bonds approved by a vote of the qualified electors of a school district at an election held on or before December 31, 1998.
"Class B bonds" means general obligation bonds approved by a vote of the qualified electors of a school district at an election held from and after December 31, 1998.
"Competency" means a demonstrated ability in a skill at a specified performance level.
"Course" means organized subject matter in which instruction is offered within a given period of time and for which credit toward promotion, graduation or certification is usually given. A course consists of knowledge selected from a subject for instructional purposes in the schools.
"Course of study" means a list of required and optional subjects to be taught in the schools.
"Dual enrollment course" means a college-level course that is conducted on the campus of a high school or on the campus of a career technical education district, that is applicable to an established community college academic degree or certificate program and that is transferable to a university under the jurisdiction of the Arizona board of regents. A dual enrollment course that is applicable to a community college occupational degree or certificate program may be transferable to a university under the jurisdiction of the Arizona board of regents.
"Elementary grades" means kindergarten programs and grades one through eight.
"Fiscal year" means the year beginning July 1 and ending June 30.
"Governing board" means a body organized for the government and management of the schools within a school district or a county school superintendent in the conduct of an accommodation school.
"Lease" means an agreement for conveyance and possession of real or personal property.
"Limited property value" means the value determined pursuant to title 42, chapter 13, article 7. Limited property value shall be used as the basis for assessing, fixing, determining and levying primary property taxes.
"Nontest" means not relating to knowledge or skills in reading, writing, mathematics, social studies, science or any other course.
"Parent" means the natural or adoptive parent of a child or a person who has custody of a child.
"Person who has custody" means a parent or legal guardian of a child, a person to whom custody of the child has been given by order of a court or a person who stands in loco parentis to the child.
"Primary property taxes" means all ad valorem taxes except for secondary property taxes.
"Private school" means a nonpublic institution where instruction is imparted.
"School" or "public school" means any public institution established for the purposes of offering instruction to pupils in programs for preschool children with disabilities, kindergarten programs or any combination of elementary grades or secondary grades one through twelve.
"School district" means a political subdivision of this state with geographic boundaries organized for the purpose of the administration, support and maintenance of the public schools or an accommodation school.
"Secondary grades" means grades nine through twelve.
"Secondary property taxes" means ad valorem taxes used to pay the principal of and the interest and redemption charges on any bonded indebtedness or other lawful long-term obligation issued or incurred for a specific purpose by a school district or a community college district and amounts levied pursuant to an election to exceed a budget, expenditure or tax limitation.
"Subject" means a division or field of organized knowledge, such as English or mathematics, or a selection from an organized body of knowledge for a course or teaching unit, such as the English novel or elementary algebra.

§ 15-102 Parental involvement in the school; definition

A. Each school district governing board, in consultation with parents, teachers and administrators, shall develop and adopt a policy to promote the involvement of parents and guardians of children enrolled in the schools within the school district, including:

A plan for parent participation in the schools that is designed to improve parent and teacher cooperation in such areas as homework, attendance and discipline. The plan shall provide for the administration of a parent-teacher satisfaction survey.
Procedures by which parents may learn about the course of study for their children and review learning materials, including the source of any supplemental educational materials.
Procedures by which parents have access to the school's library collection of available books and materials and parents may receive a list of books and materials borrowed from the library by their children. The policy must provide that the following are exempt from the procedures prescribed pursuant to this paragraph:

(a) Schools without a full-time library media specialist or an equivalent position.

(b) School district libraries that have agreements with county free library districts, municipal libraries or other entities pursuant to section 15-362, subsection D.

Procedures by which parents who object to any learning material or activity on the basis that the material or activity is harmful may withdraw their children from the activity or from the class or program in which the material is used. Objection to a learning material or activity on the basis that the material or activity is harmful includes objection to the material or activity because it questions beliefs or practices in sex, morality or religion.
If a school district offers any sex education curricula pursuant to section 15-711 or 15-716 or pursuant to any rules adopted by the state board of education, procedures to prohibit the school district from providing sex education instruction to a pupil unless the pupil's parent provides written permission for the child to participate in the sex education curricula.
Procedures by which parents will be notified in advance of and given the opportunity to opt their children in to any instruction, learning materials or presentations regarding sexuality, in courses other than formal sex education curricula.
Procedures by which parents may learn about the nature and purpose of clubs and activities that are part of the school curriculum, extracurricular clubs and activities that have been approved by the school.
Procedures by which parents may learn about parental rights and responsibilities under the laws of this state, including the following:

(a) The right to opt in to a sex education curriculum if one is provided by the school district.

(b) Open enrollment rights pursuant to section 15-816.01.

(d) The right to opt out of immunizations pursuant to section 15-873.

(e) The promotion requirements prescribed in section 15-701.

(f) The minimum course of study and competency requirements for graduation from high school prescribed in section 15-701.01.

(g) The right to opt out of instruction on acquired immune deficiency syndrome pursuant to section 15-716.

(h) The right to review test results pursuant to section 15-743.

(i) The right to participate in gifted programs pursuant to section 15-779.01.

(j) The right to access instructional materials pursuant to section 15-730.

(k) The right to receive a school report card pursuant to section 15-746.

(l) The attendance requirements prescribed in sections 15-802, 15-803 and 15-821.

(m) The right to public review of courses of study, textbooks and library books and materials pursuant to sections 15-721 and 15-722.

(n) The right to be excused from school attendance for religious purposes pursuant to section 15-806.

(o) Policies related to parental involvement pursuant to this section.

(p) The right to seek membership on school councils pursuant to section 15-351.

(q) Information about the student accountability information system as prescribed in section 15-1041.

(r) The right to access the failing schools tutoring fund pursuant to section 15-241.

(s) The right to access all written and electronic records of a school district or school district employee concerning the parent's child pursuant to section 15-143.

B. The policy adopted by the governing board pursuant to this section may also include the following components:

A plan by which parents will be made aware of the district's parental involvement policy and this section, including:

(a) Rights under the family educational rights and privacy act of 1974 (20 United States Code section 1232g) relating to access to children's official records.

(b) The parent's right to inspect the school district policies and curriculum.

Efforts to encourage the development of parenting skills.
Communicating to parents techniques that are designed to assist the child's learning experience in the home.
Efforts to encourage access to community and support services for children and families.
Promoting communication between the school and parents concerning school programs and the academic progress of the parents' children.
Identifying opportunities for parents to participate in and support classroom instruction at the school.
Efforts to support, with appropriate training, parents as shared decision-makers and to encourage membership on school councils.
Recognizing the diversity of parents and developing guidelines that promote widespread parental participation and involvement in the school at various levels.
Developing preparation programs and specialized courses for certificated employees and administrators that promote parental involvement.
Developing strategies and programmatic structures at schools to encourage and enable parents to participate actively in their children's education.

C. The governing board shall adopt a policy to provide to parents the information required by this section in either an electronic or a printed form. The governing board shall provide to parents a copy of the policy adopted pursuant to this subsection in an annual notice.

D. A parent shall submit a written request for information pursuant to this section during regular business hours to either the school principal at the school site or the superintendent of the school district at the office of the school district. Within ten days after receiving the request for information, the school principal or the superintendent of the school district shall either deliver the requested information to the parent or submit to the parent a written explanation of the reasons for denying the requested information. If the request for information is denied or the parent does not receive the requested information within fifteen days after submitting the request for information, the parent may request the information in writing from the school district governing board, which shall formally consider the request at the next scheduled public meeting of the governing board if the request can be properly noticed on the agenda. If the request cannot be properly noticed on the agenda, the governing board shall formally consider the request at the next subsequent public meeting of the governing board.

E. For the purposes of this section, "parent" means the natural or adoptive parent or legal guardian of a minor child.

§ 15-103 School districts; financial mismanagement; intervention; definitions

A. The state board of education shall review allegations of school district insolvency and gross mismanagement. The state board shall give the school district an opportunity to respond to these allegations at a public meeting. If the state board determines that the school district is insolvent or has grossly mismanaged its finances, the state board shall appoint a receiver or fiscal crisis team for that school district.

B. The state board shall find a school district insolvent if it finds one or more of the following:

The school district is unable to pay debts as they fall due or in the usual course of business.
The salaries of any teachers or other employees have remained unpaid for forty-five days.
The tuition due another school district or other state institution remains unpaid on or after January 1 of the year following the school year it was due and there is no dispute regarding the validity or amount of the claim.
The school district has defaulted in payment of its bonds or interest on bonds or in payment of rentals due any state or federal authority or private business for a period of sixty calendar days and no action has been initiated within that period of time to make payment.
The school district has contracted for any loan not authorized by law.
The school district has accumulated and has operated with a deficit equal to five per cent or more of the school district's revenue control limit for any fiscal year within the past two fiscal years or the conditions prescribed in section 15-107 have occurred.
The school district's warrants have not been honored for payment by the school district's servicing bank or by the county treasurer and the warrants have remained unpaid for a period of more than sixty calendar days.

C. A school district shall not be deemed to be insolvent pursuant to subsection B of this section if the circumstances are the result of the failure of the state to make any payments of monies due the school district at the time payment is due.

D. The state board of education shall have jurisdiction over all petitions requesting that a school district be placed in receivership and a receiver be appointed or that a fiscal crisis team be appointed because of the school district's alleged insolvency or gross mismanagement. The state board shall have the burden of demonstrating by a preponderance of the evidence that the school district is insolvent or is engaged in gross mismanagement.

E. If the state board of education finds that the school district is insolvent or has engaged in gross mismanagement, the state board may place the school district in receivership and appoint a receiver recommended by the state board. The state board shall develop and adopt a list of qualified receivers to be appointed by the board.

F. On appointment, the receiver may perform any of the actions prescribed in paragraphs 1 through 11 of this subsection and shall begin a full review and investigation of the school district's financial affairs and submit to the state board of education a detailed report listing the findings of that investigation that shall include a financial improvement plan and budget that details how the school district will eliminate any continued gross financial mismanagement and achieve financial solvency. The plan shall include a proposed timeline for achieving financial solvency. The receiver shall submit the report within one hundred twenty days after the receiver's appointment. The financial improvement plan approved by the state board of education may authorize the receiver to do any of the following:

Override any decisions of the school district's governing board or the school district superintendent, or both, concerning the management and operation of the school district, and initiate and make decisions concerning the management and operation of the school district.
Attend any and all meetings of the school district's governing board and administrative staff.
Supervise the day-to-day activities of the school district's staff, including reassigning the duties and responsibilities of personnel in a manner that, in the determination of the receiver, best suits the needs of the school district.
Place on extended leave, suspend or terminate for cause the school district's superintendent or chief financial officer, or both. The receiver is not authorized to provide a severance or buyout package to the school district's superintendent or chief financial officer if the school district is placed into receivership by the state board of education. A person terminated pursuant to this paragraph may appeal the receiver's decision to the state board of education if an appeal is filed with the state board within thirty days of receiving notice of the termination.
Authorize pupils to transfer from schools operated by the school district to schools operated by another school district that is not currently in receivership.
Appoint a chief educational officer who shall possess the powers and duties of a school district superintendent. A chief educational officer who is appointed pursuant to this paragraph shall hold a valid administrative certificate.
Appoint a chief fiscal officer who shall possess the powers and duties of the school district's chief school business official and any other duties regarding budgeting, accounting and other financial matters that are assigned to the school district by law.
Appoint a competent independent public accountant to audit the accounts of the school district.
Reorganize the school district's financial accounts, management and budgetary systems to improve financial responsibility and reduce financial inefficiency within the district.
Establish school district fiscal guidelines and a system of internal controls, including internal administrative controls and internal accounting controls, with provisions for internal audits.
Cancel or renegotiate any contract, other than contracts of certificated teachers who have been employed by the school district in the capacity of a certificated teacher for more than one year immediately before the date the receiver was appointed, to which the governing board or the school district is a party if the cancellation or renegotiation of the contract will produce needed economies in the operation of the district's schools. The receiver may refuse to reemploy any certificated teacher who has not been employed by the school district for more than the major portion of three consecutive school years as provided in section 15-536.

G. The receiver's power, authority and duties shall be effective on the date of the receiver's appointment by the state board of education. The receiver shall perform the receiver's duties according to the instructions of the state board of education order and according to law. The receiver shall promptly report any violations of law, including a violation of the uniform system of financial records, to the state board of education.

H. On review and approval of the state board of education, the receiver shall take all necessary steps to implement the financial improvement plan and budget utilizing those powers identified in the plan as prescribed in subsection F of this section.

I. The salary and benefits of the receiver and any officers or employees appointed by the receiver shall be paid by the school district. The state board of education shall determine the salary for the receiver and any officers or employees appointed by the receiver based on amounts recommended by the state board.

J. The state board of education shall remove the school district from receivership and dismiss the receiver and dismiss any officer or employee appointed by the receiver thirty days after all of the following have occurred:

The auditor general certifies that the school district has been financially solvent for one fiscal year.
The auditor general certifies that the school district's financial records are in compliance with the uniform system of financial records and generally accepted accounting principles.
The receiver certifies that the school district is no longer engaged in gross mismanagement.
The state board of education has determined that the school district is able to pay its debts as those debts become due.

K. Beginning ninety days after the submission of the first report prescribed in subsection F of this section, the receiver shall submit a quarterly progress report to the state board of education. The state board of education shall review the expenses and costs of the receiver at least once each calendar quarter.

L. The state board of education shall formally review the receiver's progress every six months. If, based on the quarterly progress reports, the state board determines that the receiver's progress is insufficient, the state board may remove the current receiver and appoint another receiver for the school district.

M. The state board of education may dismiss the receiver for cause or on a majority vote of no confidence in the receiver of the state board.

N. The school district shall indemnify the receiver and any officer or employee appointed by the receiver who is made or threatened to be made a party to any litigation by reason of their status under this section if the receiver, officer or employee acted in good faith and in a manner that the receiver, officer or employee reasonably believed to be consistent with the best interest of the school district and if the receiver, officer or employee had no reasonable cause to believe that the conduct was unlawful.

O. During the period of time that the school district is in receivership, no member, officer, employee or agent of the school district may enter into any contract or incur any liability on behalf of the school district for any purpose if the amount of the contract or liability exceeds the receiver's authorized financial plan and budget for the school district. The receiver may discipline, including, if warranted, imposing a suspension from duty without pay, removal from office or termination of, any school district employee or officer who violates this subsection.

P. This section does not create a private cause of action against the school district or its officers, directors, board members or employees.

Q. The assumption of control of the school district by the receiver shall in no way interfere with the election or reelection of school district governing board members.

R. This section shall not interfere with a school district's ability to declare bankruptcy under federal law.

S. The state board of education shall continue to monitor and offer technical assistance to a school district for two years after its removal from receivership.

T. All information received and records or reports kept by the state board of education during an investigation resulting from a complaint against a receiver appointed pursuant to this section or section 15-107 are confidential and not a public record.

U. The state board of education or the department of education shall immediately notify the auditor general if the board or department has knowledge that a superintendent or chief financial officer who was employed at the school district at the time the school district was placed in receivership is currently employed in another school district or charter school in this state.

V. Notwithstanding any other law, a fiscal crisis team appointed pursuant to this section shall be subject to section 15-107, subsections E through H and a school district that is assigned a level two fiscal crisis team pursuant to this section shall be subject to section 15-107, subsections J, K and L.

W. For the purposes of this section:

"Fiscal crisis team" means either:

(a) A level one fiscal crisis team with the duties and authority prescribed in section 15-107, subsection D, paragraph 2.

(b) A level two fiscal crisis team with the duties and authority prescribed in section 15-107, subsection D, paragraph 3.

"Gross mismanagement" means that the school district's officers or employees committed or engaged in gross incompetence or systemic and egregious mismanagement of the school district's finances or financial records.
"Notice" means written notice personally served or delivered by certified mail, return receipt requested.
"Receiver" means an individual appointed by the state board of education from the persons recommended by the state board for the purpose of managing a school district placed in receivership by the state board of education.
"Receivership" means the state or condition of being under the control of the receiver appointed by the state board of education.
"Superintendent" means the chief executive officer of the school district.

§ 15-104 Mental health screening; consent; form; exemption

A. Before it conducts a mental health screening on any pupil, defined as a survey, analysis or evaluation created by a governmental or private third party pursuant to the protection of pupil rights amendment (20 United States Code section 1232h; 34 Code of Federal Regulations part 98), a school district or charter school must have obtained the written consent of the pupil's parent or legal guardian. The written consent must satisfy all of the following requirements:

Contain language that clearly explains the nature of the screening program and when and where the screening will take place.
Be signed by the pupil's parent or legal guardian.
Provide notice that a copy of the actual survey, analysis or evaluation questions to be asked of the student is available for inspection upon request by the parent or legal guardian.

B. The chemical abuse and related gang activity survey conducted by the Arizona criminal justice commission pursuant to section 41-2416 is exempt from the provisions of this section if the survey does not include questions related to depression or religiosity.

§ 15-105 Use of restraint and seclusion techniques; requirements; definitions

A. A school may permit the use of restraint or seclusion techniques on any pupil if both of the following apply:

The pupil's behavior presents an imminent danger of bodily harm to the pupil or others.
Less restrictive interventions appear insufficient to mitigate the imminent danger of bodily harm.

B. If a restraint or seclusion technique is used on a pupil:

School personnel shall maintain continuous visual observation and monitoring of the pupil while the restraint or seclusion technique is in use.
The restraint or seclusion technique shall end when the pupil's behavior no longer presents an imminent danger to the pupil or others.
The restraint or seclusion technique shall be used only by school personnel who are trained in the safe and effective use of restraint and seclusion techniques unless an emergency situation does not allow sufficient time to summon trained personnel.
The restraint technique employed may not impede the pupil's ability to breathe.
The restraint technique may not be out of proportion to the pupil's age or physical condition.

C. Schools may establish policies and procedures for the use of restraint or seclusion techniques in a school safety or crisis intervention plan if the plan is not specific to any individual pupil.

D. Schools shall establish reporting and documentation procedures to be followed when a restraint or seclusion technique has been used on a pupil. The procedures shall include the following requirements:

School personnel shall provide the pupil's parent or guardian with written or oral notice on the same day that the incident occurred, unless circumstances prevent same-day notification. If the notice is not provided on the same day of the incident, notice shall be given within twenty-four hours after the incident.
Within a reasonable time following the incident, school personnel shall provide the pupil's parent or guardian with written documentation that includes information about any persons, locations or activities that may have triggered the behavior, if known, and specific information about the behavior and its precursors, the type of restraint or seclusion technique used and the duration of its use.
Schools shall review strategies used to address a pupil's dangerous behavior if there has been repeated use of restraint or seclusion techniques for the pupil during a school year. The review shall include a review of the incidents in which restraint or seclusion technique were used and an analysis of how future incidents may be avoided, including whether the pupil requires a functional behavioral assessment.

E. If a school district or charter school summons law enforcement instead of using a restraint or seclusion technique on a pupil, the school shall comply with the reporting, documentation and review procedures established under subsection D of this section. Notwithstanding this section, school resource officers are authorized to respond to situations that present the imminent danger of bodily harm according to protocols established by their law enforcement agency.

F. This section does not prohibit schools from adopting policies pursuant to section 15-843, subsection B, paragraph 3.

G. For the purposes of this section:

"Restraint" means any method or device that immobilizes or reduces the ability of a pupil to move the pupil's torso, arms, legs or head freely, including physical force or mechanical devices. Restraint does not include any of the following:

(a) Methods or devices implemented by trained school personnel or used by a pupil for the specific and approved therapeutic or safety purposes for which the method or device is designed and, if applicable, prescribed.

(b) The temporary touching or holding of the hand, wrist, arm, shoulder or back for the purpose of inducing a pupil to comply with a reasonable request or to go to a safe location.

(d) Physical force used to take a weapon away from a pupil or to separate and remove a pupil from another person when the pupil is engaged in a physical assault on another person.

"School" means a school district, a charter school, a public or private special education school that provides services to pupils placed by a public school, the Arizona state schools for the deaf and the blind and a private school.
"Seclusion" means the involuntary confinement of a pupil alone in a room from which egress is prevented. Seclusion does not include the use of a voluntary behavior management technique, including a timeout location, as part of a pupil's education plan, individual safety plan, behavioral plan or individualized education program that involves the pupil's separation from a larger group for purposes of calming.

§ 15-106 Identity verified fingerprints

An applicant who applies for a new teaching certificate in order to teach in a school district, a participant in field experience or student teaching in this state, an applicant who applies for a renewal of an existing teaching certificate in order to continue teaching in a school district, an applicant who is required for the first time to be fingerprinted in order to teach in a charter school and an applicant who is required to renew fingerprints in order to continue teaching in a charter school pursuant to section 15-183, an applicant who is required to be fingerprinted pursuant to section 15-512 and any person who is contracted by this state, by a school district or by a charter school to provide tutoring services shall submit for an identity verified fingerprint card that will be used by the department of public safety to process the fingerprint clearance card pursuant to title 41, chapter 12, article 3.1 as follows:

The applicant shall submit a request for an application packet from the department of public safety.
The application packet shall be contained in an envelope specified by the department of public safety and shall include the following:

(a) A blank applicant fingerprint card.

(b) An application for a fingerprint clearance card.

A school district or charter school may contract for fingerprinting services through an entity or entities and shall provide a copy of the instructions to the entity or entities as provided by the department of public safety regarding the submission of identity verified fingerprints. If a school district or charter school elects to provide fingerprinting services, the school district or charter school shall authorize an individual employed by the school district or charter school to administer the services.
The department of public safety shall provide instructions to law enforcement agencies and public schools regarding the submission of identity verified fingerprints. The department of public safety shall reject the application for a fingerprint clearance card if the application is not correct or is not submitted according to the instructions provided by the department of public safety.
The applicant, at the time that identity verified fingerprints are taken, shall provide the law enforcement agency, school district, charter school or other entity with a completed application form for a fingerprint clearance card, the fingerprint card with the requisite demographic information and the required fee in the form of a money order or cashier's check made out to the department of public safety. The law enforcement agency, school district, charter school or other entity shall verify the identity of the applicant through recognized means of photographic identification and a comparison of the demographic information on the photographic identification against the demographic information on the application form and the fingerprint card. The authorized person taking the fingerprints shall enter on the application form a description of the photographic identification presented by the applicant. The law enforcement agency, school district, charter school or other entity shall place the completed fingerprint card, the completed application form or any other form required by the department of public safety and the fee provided by the applicant in the postage prepaid envelope provided by the department of public safety and mail it to the fingerprinting division in the department of public safety. A law enforcement agency, school district, charter school or other entity may charge the applicant a reasonable fee for services provided pursuant to this section.
Fingerprints submitted electronically or through an internet-based system pursuant to section 41-1758.01 shall include a completed application for a fingerprint clearance card, the requisite applicant demographic information and the required fee, and shall be identity verified in accordance with instructions provided by the department of public safety. The department shall reject the application for a fingerprint clearance card if the application is not correct or is not submitted according to the department's instructions. The entity or entities contracted by the department shall comply with:

(a) All information privacy and security measures and submission standards established by the department.

(b) The information technology security policy approved by the department.

The department of public safety shall process the application packet in the same manner prescribed for fingerprint clearance cards issued pursuant to title 41, chapter 12, article 3.1.
The department of public safety shall provide for digital storage and retrieval of identity verified fingerprints taken pursuant to this section. The fingerprints taken pursuant to this section shall be digitally designated in the fingerprint archive as identity verified fingerprint records.
A person who has a set of identity verified fingerprints on file with the department of public safety pursuant to this section shall not be required to submit a new set of fingerprints to the department of public safety to renew the person's fingerprint clearance card. On receipt of the required application form and fee for a renewal fingerprint clearance card from a person required to submit identity verified fingerprints, the department of public safety shall attempt to use the electronic copy of the applicant's identity verified fingerprints that are retained pursuant to this section to conduct the state and national criminal records checks. The department of public safety may require the applicant to submit a new set of identity verified fingerprints if the department of public safety determines that the original fingerprints submitted have been lost or damaged or are found to be otherwise of insufficient quality to conduct a valid technical fingerprint search either by the department of public safety or the federal bureau of investigation.
A person who participates in a teacher preparation program that is approved by the state board of education and who does not participate in field experience or student teaching in this state shall not be required to obtain a fingerprint clearance card pursuant to this section.

§ 15-107 School district overexpenditures; fiscal crisis teams; quarterly progress reports; fiscal management report; annual report; actions resulting from overexpenditures; professional development; definition

A. A county school superintendent, within two business days, shall provide written notice to the department of education, if, in the county school superintendent's judgment, a school district has committed an overexpenditure under this section. If the department of education, without prior notification from a county school superintendent, determines pursuant to section 15-905, subsection L that a school district's expenditures exceed the school district's general budget limit or unrestricted capital budget limit, or both, the department shall notify the county school superintendent of the county in which the school district is located and take any actions required by this section. Notwithstanding any other law, a warrant shall not be drawn by a county school superintendent for an expenditure that is in excess of the amount budgeted and that has not been previously expended, unless the county school superintendent is notified in writing by the department of education that budget capacity exists as determined by the department based on information provided by the school district.

B. The department of education, in conjunction with the county school superintendent, shall monitor the school district and provide technical assistance to the school district and to the county school superintendent to resolve the overexpenditure.

C. If the department of education determines that the school district has failed to take appropriate action to resolve the overexpenditure or that the original notice of overexpenditure pursuant to subsection A of this section constitutes an overexpenditure that will cause the school district's overall expenditures to exceed the school district's general budget limit or unrestricted capital budget limit by $50,000 or one-half of one percent, whichever is less, the department shall request that the matter be placed on the agenda of a meeting of the state board of education for action pursuant to this section.

D. At the request of the department of education, the state board of education shall call a public meeting to consider overexpenditures by any school district. The state board of education shall require the superintendent of the school district and any other school district personnel who may have information relevant to the overexpenditure to appear before the state board of education. After testimony from all interested parties, the state board of education shall take one of the following actions:

Require the department of education, in conjunction with the county school superintendent, to monitor the expenditures of the school district.
Direct the department of education to contract with a level one fiscal crisis team. The level one fiscal crisis team shall provide on-site oversight and off-site monitoring for the school district for not longer than twelve months and shall advise the school district on all financial issues and professional development training related to financial issues.
Direct the department of education to contract with a level two fiscal crisis team. The level two fiscal crisis team shall provide on-site oversight and off-site monitoring for the school district for not longer than twenty-four months, shall have the authority prescribed for level one fiscal crisis teams and may override any financial act or decision of the school district, including expenditures.
Appoint a receiver who, subject to the discretion of the state board of education, may take any actions prescribed in section 15-103, subsection F.

E. The level one and level two fiscal crisis teams shall be composed of at least one person who has knowledge of school finance and may include current or former school district financial officers, current or former school district business managers, certified public accountants and current or former school district superintendents. The fiscal crisis teams shall not include employees of the state board of education or the department of education.

F. The expenses incurred by a fiscal crisis team or by a receiver appointed pursuant to this section shall be paid by the school district. The state board of education shall review the expenses and costs of each fiscal crisis team at least once each calendar quarter.

G. Beginning ninety days after submitting the fiscal management report prescribed in subsection H of this section, the fiscal crisis team or receiver appointed pursuant to this section shall submit a detailed written quarterly progress report to the state board of education that includes all of the following:

The results of the review of the school district's finances, including expenditures.
The recommendations and decisions made by the fiscal crisis team or the receiver appointed pursuant to this section.
The status of the fiscal management plan described pursuant to subsection H of this section.
Recommendations to the state board of education on the content of professional development training related to overexpenditures.
Any recommendations of potential action to be taken concerning professional certificates issued to school district personnel by the state board of education or the department of education. The state board of education shall review the recommendations submitted pursuant to this paragraph and shall take appropriate action.

H. After appointment, the fiscal crisis team or the receiver appointed pursuant to this section shall review the financial affairs of the school district and may work with school finance personnel at the department of education to ensure that the finances of the school district are in compliance with the laws of this state. A school district that has been assigned a fiscal crisis team or a receiver pursuant to this section shall submit, in consultation with the receiver or the fiscal crisis team, a fiscal management report to the state board of education within one hundred twenty days after the date that the state board of education appointed the receiver or the fiscal crisis team. The fiscal management report shall include the following:

A description of the fiscal management plan that has been implemented to correct the overexpenditure, including the following:

(a) The manner in which the fiscal management plan will address the findings and recommendations of the fiscal crisis team.

(b) A timeline for complete resolution of the overexpenditure.

(d) The identification of any issues that need to be resolved before the fiscal management plan may be fully implemented.

(e) The identification of any long-term issues resulting from the overexpenditure that will extend to future fiscal years.

A description of the manner in which the fiscal management plan was developed, including identification of the role of the fiscal crisis team or the receiver, the role of the school district governing board and the role of the administrators of the school district.

I. On or before December 31, the state board of education shall submit an annual report to the governor, the president of the senate and the speaker of the house of representatives. The state board shall provide a copy of this report to the secretary of state. The annual report shall include the following:

A summarized compilation of the fiscal management reports submitted by school districts pursuant to subsection H of this section.
The actions taken by the state board of education, the department of education, school districts, fiscal crisis teams and receivers during the most recently completed fiscal year.
Recommendations regarding improvements to the laws of this state or to administrative actions required under the laws of this state.

J. A school district that is assigned a level two fiscal crisis team or a receiver pursuant to this section shall require professional development training for school district governing board members and appropriate administrative personnel of the school district, including the school district superintendent, who are involved in district finances and budgeting, as determined by the level two fiscal crisis team or by the receiver. The professional development training shall be selected from a list approved by the state board of education, and the cost of the professional development training shall be paid by the school district. Governing board members and district administrative personnel shall complete at least twelve hours of professional development training within one hundred twenty days after the assignment of a level two fiscal crisis team or the appointment of a receiver. The fiscal crisis team or the receiver shall report to the state board of education whether the professional development training requirements prescribed in this subsection have been met.

K. A school district governing board member who fails to complete the professional development training within the time prescribed in subsection J of this section is guilty of nonfeasance in office, and the state board of education shall forward a complaint to the attorney general. The attorney general may bring an action in superior court against a school district governing board member for failure to comply with the professional development training requirements prescribed in subsection J of this section. If a court determines that a school district governing board member failed to comply with the professional development training requirements prescribed in subsection J of this section, the court shall issue an order removing the school district governing board member from office. Any vacancy in the office of the school district governing board as a result of a court order issued pursuant to this subsection shall be filled in the manner provided by law.

L. If any of the administrative personnel of the school district fails to complete the professional development training within the time prescribed in subsection J of this section, the state board of education may take appropriate action concerning current certificates held by that person.

M. All information received and records or reports kept by the state board of education during an investigation resulting from a complaint against a receiver appointed pursuant to this section or section 15-103 are confidential and not a public record.

N. For the purposes of this section, "overexpenditure" means an expenditure that exceeds any of the following:

The general budget limit of the school district or the amount budgeted by the school district, whichever is less.
The unrestricted capital budget limit of the school district or the amount budgeted for capital by the school district, whichever is less.

§ 15-108 Medical marijuana; school campuses; prohibition; definition

(Subsection A was added with a 1998 Prop. 105 clause pursuant to L12, Ch. 159)

A. In addition to the limitations prescribed in section 36-2802, subsection B, a person, including a cardholder as defined in section 36-2801, may not lawfully possess or use marijuana on the campus of any public university, college, community college or postsecondary educational institution. This subsection does not prohibit medical research projects involving marijuana that are conducted on the campus of any public university, college, community college or postsecondary institution as authorized by applicable federal approvals, which may include the United States food and drug administration, the United States drug enforcement administration and the national institutes on drug abuse, and on approval of any applicable university institutional review board.

B. A person may not lawfully possess or use marijuana on the campus of any high school, junior high school, middle school, common school or preschool in this state.

§ 15-109 Biometric information; prohibition; definition

A. A school in a school district or a charter school shall not collect biometric information from a pupil unless the pupil's parent or guardian gives written permission to collect biometric information from the pupil.

B. At least thirty days before a school in a school district or charter school will collect biometric information, the school shall provide written notice to the parents and guardians of pupils of the intent to collect biometric information. The notice shall include a statement in eighteen point bold-faced capital letters that the parent or guardian must give written permission to collect biometric information from the pupil before the school may collect biometric information.

C. For the purposes of this section, "collect biometric information" means the noninvasive electronic measurement and evaluation of any physical characteristics that are attributable to a single person, including fingerprint characteristics, eye characteristics, hand characteristics, vocal characteristics, facial characteristics and any other physical characteristics used for the purpose of electronically identifying that person with a high degree of certainty.

§ 15-110 Rights of students at public educational institutions; limitations; definition

A. A public educational institution shall not discriminate against students or parents on the basis of a religious viewpoint or religious expression.

B. If an assignment requires a student's viewpoint to be expressed in coursework, artwork or other written or oral assignments, a public educational institution shall not penalize or reward a student on the basis of religious content or a religious viewpoint. In such an assignment, a student's academic work that expresses a religious viewpoint shall be evaluated based on ordinary academic standards of substance and relevance to the course curriculum or requirements of the coursework or assignment.

C. Students in public educational institutions may pray or engage in religious activities or religious expression before, during and after the school day in the same manner and to the same extent that students may engage in nonreligious activities or expression.

D. Students in public educational institutions may wear clothing, accessories and jewelry that display religious messages or religious symbols in the same manner and to the same extent that other types of clothing, accessories and jewelry that display messages or symbols are permitted.

E. This section shall not be construed to authorize this state or any of its political subdivisions to do either of the following:

Require any person to participate in prayer or in any other religious activity.
Violate the constitutional rights of any person.

F. This section shall not be construed to limit the authority of any public educational institution to do any of the following:

Maintain order and discipline on the campus of the public educational institution in a content and viewpoint neutral manner.
Protect the safety of students, employees and visitors of the public educational institution.
Adopt and enforce policies and procedures regarding student speech at school provided that the policies and procedures do not violate the rights of students as guaranteed by the United States and Arizona constitutions and laws.
Adopt and enforce policies and procedures that prohibit students from wearing any type of clothing, accessories and jewelry that is worn with the intent to convey affiliation with a criminal street gang as defined in section 13-105.

G. A student or a student's parent shall not initiate legal action to enforce this section unless the student or the student's parent has done the following:

The student or the student's parent shall submit a complaint in writing with the specific facts of the alleged violation to the principal of the school. The principal shall investigate the complaint and respond in writing, including a description of any action taken to resolve the complaint, within fifteen days of receiving the written complaint.
If the action taken by the principal of the school does not resolve the complaint of the student or the student's parent, the student or the student's parent shall submit a complaint in writing with the specific facts of the alleged violation to the superintendent or designated administrator. The superintendent or designated administrator shall investigate the complaint and respond in writing, including a description of any action taken to resolve the complaint, within twenty-five days of receiving the written complaint.
If the action taken by the superintendent or designated administrator does not resolve the complaint of the student or the student's parent, the student or the student's parent may pursue legal action to enforce this section.

H. For the purposes of this section, "public educational institution" means any of the following:

A school district, including its schools.
A charter school.
An accommodation school.
The Arizona state schools for the deaf and the blind.

§ 15-111 Declaration of policy

The legislature finds and declares that public school pupils should be taught to treat and value each other as individuals and not be taught to resent or hate other races or classes of people.

§ 15-112 Prohibited courses and classes; enforcement

A. A school district or charter school in this state shall not include in its program of instruction any courses or classes that include any of the following:

Promote the overthrow of the United States government.
Promote resentment toward a race or class of people.
Are designed primarily for pupils of a particular ethnic group.
Advocate ethnic solidarity instead of the treatment of pupils as individuals.

B. If the state board of education or the superintendent of public instruction determines that a school district or charter school is in violation of subsection A, the state board of education or the superintendent of public instruction shall notify the school district or charter school that it is in violation of subsection A. If the state board of education or the superintendent of public instruction determines that the school district or charter school has failed to comply with subsection A within sixty days after a notice has been issued pursuant to this subsection, the state board of education or the superintendent of public instruction may direct the department of education to withhold up to ten per cent of the monthly apportionment of state aid that would otherwise be due the school district or charter school. The department of education shall adjust the school district or charter school's apportionment accordingly. When the state board of education or the superintendent of public instruction determines that the school district or charter school is in compliance with subsection A, the department of education shall restore the full amount of state aid payments to the school district or charter school.

C. The department of education shall pay for all expenses of a hearing conducted pursuant to this section.

D. Actions taken under this section are subject to appeal pursuant to title 41, chapter 6, article 10.

E. This section shall not be construed to restrict or prohibit:

Courses or classes for Native American pupils that are required to comply with federal law.
The grouping of pupils according to academic performance, including capability in the English language, that may result in a disparate impact by ethnicity.
Courses or classes that include the history of any ethnic group and that are open to all students, unless the course or class violates subsection A.
Courses or classes that include the discussion of controversial aspects of history.

F. Nothing in this section shall be construed to restrict or prohibit the instruction of the holocaust, any other instance of genocide, or the historical oppression of a particular group of people based on ethnicity, race, or class.

§ 15-113 Rights of parents; public educational institutions; definitions

A. A parent of a student in a public educational institution has the right to review learning materials and activities in advance. A parent who objects to any learning material or activity on the basis that the material or activity is harmful may request to withdraw that parent's student from the activity or from the class or program in which the material is used and request an alternative assignment.

B. A charter school may require parents to waive the right to object to learning materials or activities pursuant to subsection A of this section as a condition of enrollment if the charter school provides a complete list of books and materials to be used each school year before the student enrolls. If the charter school introduces books or materials that were not disclosed prior to enrollment, the parent retains the right to object to those materials pursuant to subsection A of this section.

C. A charter school may require that any request to review learning materials or activities or to withdraw the student from learning materials or activities pursuant to subsection A of this section be made in writing.

D. A public educational institution shall obtain signed, written consent from a student's parent or guardian before doing either of the following:

Using video, audio or electronic materials that may be inappropriate for the age of the student.
Providing sex education instruction to the student. At the same time the public educational institution seeks consent, it shall inform the student's parent or guardian of the parent's or guardian's right to review the instructional materials and activities.

E. For the purposes of this section:

"Objects to any learning material or activity on the basis that the material or activity is harmful" means objecting to the material or activity because of sexual content, violent content or profane or vulgar language.
"Public educational institution" means any of the following:

(a) A school district, including its schools.

(b) A charter school.

(d) The Arizona state schools for the deaf and the blind.

§ 15-114 Display of school, charter school and school district achievements, classifications or rankings; expiration; definition

A. A school, charter school or school district shall not display any achievement, classification or ranking that was assigned by a public or private entity after the achievement, classification or ranking is no longer current unless the year of issuance of the achievement, classification or ranking is prominently displayed.

B. Any person may submit a complaint in writing to the department of education with evidence and specific facts of an alleged violation of subsection A of this section. The department of education shall investigate the complaint. If the department determines that there is a violation of this section, it shall send to the school, charter school or school district written notification of the violation and instruction to comply with this section.

C. For the purposes of this section, "display" means the placing of an achievement, classification or ranking on or in any billboard, marquee, pupil transportation vehicle, letterhead, advertising, internet web page, intranet page, office, classroom, hallway, gymnasium or similar place.

§ 15-115 Preference for childbirth and adoption; allowable presentations

A. In view of the state's strong interest in promoting childbirth and adoption over elective abortion, no school district or charter school in this state may endorse or provide financial or instructional program support to any program that does not present childbirth and adoption as preferred options to elective abortion.

B. In view of the state's strong interest in promoting childbirth and adoption over elective abortion, no school district or charter school in this state may allow any presentation during instructional time or furnish any materials to pupils as part of any instruction that does not give preference, encouragement and support to childbirth and adoption as preferred options to elective abortion.

§ 15-115.01 Public educational institution facility; prohibition; definitions

A. A facility that is run by or that operates on the property of a public educational institution may not perform or provide an abortion, unless the abortion is necessary to save the life of the woman having the abortion.

B. For the purposes of this section:

"Abortion" has the same meaning prescribed in section 36-2151.
"Medical emergency" has the same meaning prescribed in section 36-2151.
"Public educational institution" means any of the following:

(a) A community college as defined in section 15-1401.

(b) A university under the jurisdiction of the Arizona board of regents.

(d) A charter school.

(e) An accommodation school.

(f) The Arizona state schools for the deaf and the blind.

§ 15-116 Public schools; fees; waiver; prohibition

A. A school district governing board or charter school governing body that authorizes the assessment of fees pursuant to this title shall ensure that all fees contain a provision that allows the fees to be waived in the event of economic hardship to the pupil.

B. The nonpayment of fees charged by a public school may not prevent a pupil from enrolling in, applying to or remaining enrolled in a public school.

C. This section does not prohibit a school district or charter school from charging tuition to a nonresident pupil as permitted by this title.

§ 15-117 Surveys; pupil information; parental permission and informed consent; exceptions; penalties; definitions

A. Notwithstanding any other law, each school district and charter school shall obtain written informed consent from the parent of a pupil before administering any survey that solicits personal information about the pupil regarding any of the following:

Critical appraisals of another person with whom a pupil has a close relationship.
Gun or ammunition ownership.
Illegal, antisocial or self-incriminating behavior.
Income or other financial information.
Legally recognized privileged or analogous relationships, such as relationships with a lawyer, physician or member of the clergy.
Medical history or medical information.
Mental health history or mental health information.
Political affiliations, opinions or beliefs.
Pupil biometric information.
The quality of home interpersonal relationships.
Religious practices, affiliations or beliefs.
Self-sufficiency as it pertains to emergency, disaster and essential services interruption planning.
Sexual behavior or attitudes.
Voting history.

B. At least seven days before administering any survey to a pupil, every school district and charter school shall provide a copy of the survey to the pupil's parent along with a written informed consent form and shall obtain written informed consent from the pupil's parent for the pupil to participate in the survey pursuant to subsection A of this section. The pupil's parent may at any time revoke consent for the pupil to participate in any survey pursuant to subsection A of this section. For any pupil who is at least eighteen years of age, the permission or consent that would otherwise be required from the pupil's parent pursuant to this section is required only from the pupil. All surveys conducted pursuant to subsection A of this section shall be approved and authorized by the school district or charter school. The school district or charter school is subject to the penalties prescribed in subsection L of this section. A teacher or other school employee may not administer any survey pursuant to subsection A of this section without written authorization from the school district or charter school.

C. This section applies to all surveys conducted pursuant to subsection A of this section:

Regardless of the stated purpose of the survey.
Regardless of the quantity or percentage of questions that solicit data pursuant to subsection A of this section.
Including written or digital surveys.

D. This section does not apply to:

Mental health screening pursuant to section 15-104 or the identification of or programming for children with disabilities or gifted pupils pursuant to chapter 7, articles 4 and 4.1 of this title.
Class instruction, discussion or assignments on subjects within the purview of the course.
Private schools.
Any exam administered by a nationally recognized college entrance or career readiness exam provider that a student takes on public school property, regardless of whether the exam is taken during the school day.
Any survey conducted or implemented by the Arizona criminal justice commission if, at least seven days before the survey is administered to a pupil, the school district or charter school provides the pupil's parent with a paper or electronic copy of the survey or electronic access to the survey.
Any method of surveying a student that is conducted because a person has a reasonable belief that a minor is or has been a victim of abuse pursuant to section 13-3620.

E. A penalty may not be imposed on a pupil or the parent of a pupil who does not participate in any survey conducted pursuant to subsection A of this section. Participation in any survey pursuant to subsection A of this section is not required:

To demonstrate that a pupil has met competency requirements for any grade level, course or subject.
For a pupil to qualify for placement into any grade level, course or subject.
For a pupil to be promoted to the next grade.
For a pupil to receive credit for any course or as part of a letter grade for any course.
For a pupil to graduate from high school.
For a pupil to obtain a high school equivalency diploma.

F. A school district or charter school shall provide an alternative educational activity for any pupil whose parent does not consent for that pupil to participate in a survey conducted pursuant to subsection A of this section.

G. Any pupil whose parent does not give written informed consent for that pupil to participate in any survey pursuant to subsection A of this section and who attends the alternative educational activity pursuant to this section shall be counted toward daily attendance and average daily membership for the school pursuant to section 15-901 and may not be counted absent from school.

H. Responses to any survey pursuant to subsection A of this section may not be included:

As part of a school academic performance indicator pursuant to section 15-241, or as part of any other similar school rating system.
In the education learning and accountability system pursuant to section 15-249, or in any other similar system.
In the student accountability information system pursuant to section 15-756.10 or 15-1041, or in any other similar system.

I. A penalty may not be imposed on and a reward may not be granted to a teacher, administrator, other school employee, school district, school or charter school based on the pupil participation rate in any survey conducted pursuant to subsection A of this section.

J. On request, a charter school or school district shall provide any available information in a timely manner to the parent of a pupil regarding a survey administered pursuant to subsection A of this section, including:

The name of the survey.
The date or dates on which the survey will be administered.
The method or methods of administering the survey.
The amount of time required to administer the survey.
The type of information collected by the survey.
The reasons for administering the survey.

K. A parent of a pupil that has a reasonable belief that a school district or charter school has violated this section may file a complaint with the attorney general or the county attorney for the county in which an alleged violation of this section occurred. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may initiate a suit in the superior court in the county in which the school district or charter school is located for the purpose of complying with this section. After receiving written notice of an alleged failure to comply with this section, a school district or charter school that determines that a violation has occurred is not subject to a penalty or cause of action under this section if the school district or charter school cures the violation. For the purposes of this subsection, "cure" means to destroy any information gathered in violation of this section and to provide written instruction to the individual circulating the survey, to be kept on file for one year after receipt of the written notice of the alleged failure to comply.

L. For each violation of this section, the court may impose a civil penalty not to exceed $500. The school district or charter school determined to be out of compliance with this section shall pay all penalties.

M. An attorney acting on behalf of a public school may request a legal opinion of the county attorney or attorney general as to whether the public school would violate this section.

N. All penalties collected by the court for a suit initiated in superior court by the attorney general shall be paid to the office of the attorney general for the use and reimbursement of costs of prosecution pursuant to this section. All penalties collected by the court for a suit initiated in superior court by a county attorney shall be paid to the county treasurer of the county in which the court is held for the use and reimbursement of costs of prosecution pursuant to this section.

O. For the purposes of this section:

"Parent" has the same meaning prescribed in section 15-101, except that parent does not mean this state if the pupil is a ward of the state.
"Survey" means:

(a) When used as a noun, an instrument that investigates the attitudes, behaviors, beliefs, experiences, opinions or thoughts of a pupil or group of pupils.

(b) When used as a verb, to use an instrument to investigate the attitudes, behaviors, beliefs, experiences, opinions or thoughts of a pupil or group of pupils.

§ 15-118 Recess; requirements; exceptions; definition

A. Each school district and charter school shall provide at least two recess periods during the school day for pupils in kindergarten programs and grades one through three. From and after August 1, 2019 each school district and charter school shall provide at least two recess periods during the school day for pupils in kindergarten programs and grades one through five.

B. Notwithstanding subsection A of this section, a school that offers a half-day kindergarten program is required to provide at least one recess period during the school day for pupils in that kindergarten program. A school district or a charter school may count a pupil's participation in a physical education course during a school day as one of that day's recess periods required by subsection A of this section.

C. A school district or charter school is not required to extend the school day as part of meeting the requirements of subsection A of this section.

D. This section does not apply to middle schools, junior high schools, high schools, Arizona online instruction or schools in which the lowest grade of instruction offered is grade five.

E. For the purposes of this section, "recess" means a period of time during the regular school day, including time during a scheduled lunch period, during which a pupil is able to engage in physical activity or social interaction with other pupils.

§ 15-119 Vacant and partially used buildings; list; sale or lease; equipment; definitions

A. The division of school facilities 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 shall make the list publicly available on the website of the division of school facilities and on request to applicants for charter schools, to applicants applying to the division of school facilities 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 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 fewer than five years or magnet schools are not considered partially used buildings for the purposes of this section, except that 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:

"Partially used building" means a building with at least four thousand five hundred square feet of contiguous, unused space.
"Vacant building" means a building that has been vacant and unused for at least two years.

§ 15-120 Suicide prevention training; approved materials; posting; immunity; spending classification

A. Beginning in the 2020-2021 school year, school districts and charter schools shall provide training in suicide awareness and prevention for school guidance counselors, teachers, principals and other school personnel who work with pupils in grades six through twelve. Each person who is required to obtain training pursuant to this section shall complete that training at least once every three years. The training must include:

Training in suicide prevention.
Training to identify the warning signs of suicidal behavior in adolescents and teens.
Appropriate intervention and referral techniques.

B. The training prescribed in subsection A of this section:

Must use evidence-based training materials.
May be provided within the framework of existing in-service training programs offered by the school district or charter school or as part of professional development activities.

C. The Arizona health care cost containment system administration shall make available suicide prevention training that complies with the requirements of this section and post this training information on the administration's website. On or before July 1, 2020, the administration shall identify or develop and post on the administration's website a list of approved materials that schools may use to provide the training prescribed in subsection A of this section. The administration shall annually update these approved materials.

D. School personnel, entities or any other persons are not civilly liable for any actions taken in good faith pursuant to this section except in cases of gross negligence, wilful misconduct or intentional wrongdoing.

E. The auditor general shall classify any costs incurred by school districts in implementing this section as classroom spending for the purposes of the annual report prepared pursuant to section 41-1279.03, subsection A, paragraph 9.

§ 15-120.01 Public schools; child care services; reduced fees

A public school that provides or contracts for child care services may reduce the fee a public school employee pays for the child care services if the cost the public school pays for those services is not grossly disproportionate to the total consideration received from the employee.

§ 15-120.02 Interscholastic and intramural athletics; designation of teams; biological sex; cause of action; definition

A. Each interscholastic or intramural athletic team or sport that is sponsored by a public school or a private school whose students or teams compete against a public school shall be expressly designated as one of the following based on the biological sex of the students who participate on the team or in the sport:

"Males", "men" or "boys".
"Females", "women" or "girls".
"Coed" or "mixed".

B. Athletic teams or sports designated for "females", "women" or "girls" may not be open to students of the male sex.

C. This section does not restrict the eligibility of any student to participate in any interscholastic or intramural athletic team or sport designated as being for "males", "men" or "boys" or designated as "coed" or "mixed".

D. A government entity, any licensing or accrediting organization or any athletic association or organization may not entertain a complaint, open an investigation or take any other adverse action against a school for maintaining separate interscholastic or intramural athletic teams or sports for students of the female sex.

E. Any student who is deprived of an athletic opportunity or suffers any direct or indirect harm as a result of a school knowingly violating this section has a private cause of action for injunctive relief, damages and any other relief available under law against the school.

F. Any student who is subject to retaliation or another adverse action by a school or an athletic association or organization as a result of reporting a violation of this section to an employee or representative of the school or the athletic association or organization, or to any state or federal agency with oversight of schools in this state, has a private cause of action for injunctive relief, damages and any other relief available under law against the school or the athletic association or organization.

G. Any school that suffers any direct or indirect harm as a result of a violation of this section has a private cause of action for injunctive relief, damages and any other relief available under law against the government entity, the licensing or accrediting organization or the athletic association or organization.

H. All civil actions must be initiated within two years after the alleged violation of this section occurred. A person or organization that prevails on a claim brought pursuant to this section is entitled to monetary damages, including damages for any psychological, emotional or physical harm suffered, reasonable attorney fees and costs and any other appropriate relief.

I. For the purposes of this section, "school" means either:

A school that provides instruction in any combination of kindergarten programs or grades one through twelve.
An institution of higher education.

§ 15-120.03 Sexually explicit materials; prohibition; exemptions; definition

A. Except as prescribed in section 15-711, a public school in this state may not refer students to or use any sexually explicit material in any manner.

B. Materials may be exempted from the provisions of subsection A if all of the following requirements are met:

The exempted material possesses serious educational value for minors or possesses serious literary, artistic, political or scientific value.
The public school requires written parental consent before the public school refers a student to or uses the exempted material. The public school shall require parental consent on a per-material basis.
The public school provides students for whom parental consent is not secured under paragraph 2 of this subsection with an alternative assignment that does not contain sexually explicit material.

C. For the purposes of this section, "sexually explicit materials" includes textual, visual or audio materials or materials accessed via any other medium that depict any of the following:

Sexual conduct. For the purposes of this paragraph, "sexual conduct" means acts of masturbation, sexual intercourse or physical contact with a person's clothed or unclothed genitals, pubic area, buttocks or, if such person is a female, breast.
Sexual excitement. For the purposes of this paragraph, "sexual excitement" means the condition of human male or female genitals when in a state of sexual stimulation or arousal.
Ultimate sexual acts. For the purposes of this paragraph, "ultimate sexual acts" means sexual intercourse, vaginal or anal, fellatio, cunnilingus, bestiality or sodomy. A sexual act is simulated when it depicts explicit sexual activity that gives the appearance of consummation of ultimate sexual acts.

§ 15-120.04 Postings on website; satisfaction of requirement

Notwithstanding any other law:

A school district, a school that is operated by a school district or a charter school may satisfy any statutory requirement to post, prominently display, make accessible or otherwise include specified information on its website by making a link to the information available on the school district's, the school's or the charter school's home page.
A school district, a school that is operated by a school district or a charter school may consolidate all information that it is statutorily required to post, prominently display, make accessible or otherwise include on its website on a single webpage and post a link to the webpage on the school district's, the school's or the charter school's home page.

§ 15-120.05 Student access to internet; student use of wireless communication devices; policies and procedures; annual notice; definitions

A. Each school district governing board and charter school governing body shall prescribe and enforce policies and procedures that both:

Govern student access to the internet as provided by the school, including policies that restrict student access to social media platforms. The policies and procedures adopted pursuant to this paragraph shall allow teachers to give students access to social media platforms to the extent necessary for educational purposes.
Limit the use of wireless communication devices by students during the school day. The policies and procedures adopted pursuant to this paragraph shall do all of the following:

(a) Allow students to use wireless communication devices if any of the following applies:

(i) For educational purposes, as directed by the student's teacher.

(ii) During an emergency.

(iii) The student needs the student's wireless communication device because the student has a medical condition.

(b) Include procedures for a student's parent to contact the student during the school day.

B. At the beginning of each school year, the school district shall provide to parents, teachers and students a copy of the policies adopted pursuant to subsection A of this section and notify the parents, teachers and students of any changes to the policy.

C. For the purposes of this section:

"School day" means periods of time when students are at school, including meals, passing periods and recess.
"Social media platform" means a website, computer application or other digital platform that is used for social networking and creating or exchanging virtual content.
"Wireless communication devices" includes personal devices and devices that are provided by the school.

§ 15-120.06 School officers; children with disabilities; required training; definition

A. Each school district or charter school that employs one or more officers on one or more school campuses, including indirect employment through the school safety program pursuant to section 15-154, shall train each officer how to recognize and effectively interact with children with disabilities as defined in section 15-761.

B. For the purposes of this section, "officer" includes:

A peace officer.
A full-authority reserve peace officer who is certified by the Arizona peace officer standards and training board.
An individual who is employed by the school district or charter school in the individual's off-duty capacity as an officer described in paragraph 1 or 2 of this subsection.
An individual who was previously employed as a peace officer in this state and who retired in good standing.
A juvenile probation officer.

§ 15-120.07 High school sports; automatic external defibrillators; definitions

A. Notwithstanding title 36, chapter 21.1, article 3, beginning August 1, 2026, each public school in this state that provides instruction to students in any of grades nine through twelve and that sponsors an athletic team or sports program shall:

Provide an automated external defibrillator at each school campus and school-sponsored athletic event.
Ensure that each automated external defibrillator that is provided pursuant to paragraph 1 of this subsection is all of the following:

(a) In an unlocked location that is clearly marked and easily accessible both during the school day and at each school-sponsored athletic event.

(b) In a location from which the automated external defibrillator may be promptly retrieved and used at the school or school-sponsored athletic event.

(c) In a location that complies with guidelines that are established by a nationally recognized organization that is focused on emergency cardiovascular care.

(d) Maintained in good working order and tested according to the manufacturer's guidelines.

B. A school district or charter school may accept gifts, grants, donations and in-kind donations for the purposes of this section, including to purchase and maintain automated external defibrillators.

C. For the purposes of this section:

"Automated external defibrillator" has the same meaning prescribed in section 36-2261.
"School-sponsored athletic event":

(a) Means an event that takes place on a school campus and that is related to a sport or other athletic activity in which students participate as individuals or as members of a team.

(b) Includes scheduled practices, trainings and competitions.

Article 2 Employee Annuity and Deferred Compensation Plans

§ 15-121 School employees; participation in federal retirement plans and deferred compensation plans; prohibition against use of public monies; exceptions

A. Employees of school districts, accommodation school employees, employees of the community college districts, employees of the universities and all other certificated and noncertificated employees of the schools of this state, including those located at state institutions, may participate in federal retirement or deferred compensation plans as provided in 26 United States Code sections 401(a), 403(b) and 457(b), if the governing body approves.

B. Upon election by an employee to participate through salary reduction contributions if permitted under federal law or by election of the governing board to make nonelective employer contributions, the governing board of a school district, the county school superintendent, the community college district governing board, the Arizona board of regents or other governing body or employer of the employee shall:

Invest such an amount as authorized by the employee, to be reduced from the regular annual salary of the employee, in a 26 United States Code section 403(b) tax sheltered annuity or custodial account or a 26 United States Code section 457(b) deferred compensation plan.
Invest nonelective employer contributions in a 26 United States Code section 401(a) defined contribution plan or a 26 United States Code section 403(b) tax sheltered annuity or custodial account.

C. The amount to be invested shall be determined by the employee not less than fifteen days before the employee's first payday in the school year, or at any time during the school year at the option of the governing body. The employing body or county school superintendent shall assume no responsibility other than to make the requested payments during the actual time of the employment of the employee. The employer shall transfer to the fund manager the employee contributions within ten working days after each and every payroll date. Contributions transferred after that date shall include a penalty of six per cent a year for each day the contributions are late. The penalty shall be paid by the employer. If the employee changes the employee's employment to another school or school district, the employee may authorize the employee's new employer to continue the payments if the governing body approves.

D. State, county, district or other public monies shall not be used in the purchase of any annuity or payment of any deferred compensation authorized by this article, except for monies authorized for the following purposes:

The recruitment and retention of selected employees, including teachers when there are shortages of teachers.
As a benefit to encourage teachers specifically selected by the governing board or the board's authorized designee to teach in an underperforming school.
For the reduction of the unfunded liabilities of unused leave pay accruals with in-service nonelective employer contributions.
For the replacement of unused leave pay or other types of severance pay at the time of severance of employment.
To buy out the individually negotiated contracts of key employees.
To provide incentives for the early retirement of selected employees as determined by the governing board.

E. If monies are contributed pursuant to subsection D, paragraph 4, 5 or 6, at the discretion of the governing board, those monies may be contributed pursuant to 26 United States Code section 401(a) only in the final year of service, or pursuant to 26 United States Code section 403(b) both in the final year of service and for up to five tax years following the tax year of the final year of service.

Article 3 Teacher Exchange

§ 15-131 Exchange teacher agreements

A. The governing board of any school district in this state or the Arizona board of regents may enter into agreements with any foreign country, state, territory or possession of the United States or other school district within the state for the exchange and employment of teachers or professors having required certificates in this state and teachers or professors in the public schools, universities or colleges of any foreign country, state, territory or possession of the United States or other school district within the state having certification or qualifications equivalent to that of the exchange teacher or professor of this state.

B. In all cases of the exchange of any foreign teacher or professor such exchange shall be contracted for and effected exclusively through the teacher exchange program as authorized by federal statutes enacted by the Congress of the United States.

§ 15-132 Certification of exchange teachers and professors

The state board of education shall issue temporary certificates to exchange teachers and professors of foreign countries and other states whose training and background comply with the rules promulgated by the board for certification and are equivalent to those of the local teacher with whom the exchange is made.

§ 15-133 Certification required; employment

An international teacher or professor may not be employed in this state unless the international teacher or professor has been issued proper certification.

§ 15-134 Payment of salaries of exchange teachers

During the exchange teaching provided for in this article, the salaries of the exchange teachers or professors may be paid by either the school districts or universities or colleges by which they are regularly employed, or by the school districts or universities or colleges in which the exchange teaching service is rendered. The school district or university or college shall pay the salary of only one of the two exchange teachers and in an amount not to exceed the annual salary of its regularly employed teachers or professors.

§ 15-135 Deductions for retirement; preservation of rights

A. All regular deductions for retirement as required by law shall be made from the salary of the local teacher or professor participating in exchange teaching pursuant to this article.

B. No such teacher or professor shall lose any right of certification, retirement, salary status or other benefit provided by law or by the rules of the governing board of the school district or the Arizona board of regents due to exchange teaching under this article.

Article 4 Educational Records

§ 15-141 Educational records; injunction; special action

A. The right to inspect and review educational records and the release of or access to these records, other information or instructional materials is governed by federal law in the family educational and privacy rights act of 1974 (20 United States Code sections 1232g, 1232h and 1232i), and federal regulations issued pursuant to such act.

B. In addition to the enforcement procedures provided in the family educational and privacy rights act of 1974, the superior court may grant injunctive or special action relief if any educational agency or institution or an officer or employee of an agency or institution fails to comply with the act regardless of whether the agency or institution is the recipient of any federal funds subject to termination pursuant to the act or whether administrative remedies through any federal agency have been exhausted.

C. Notwithstanding any financial debt owed by the pupil, the governing board of a school district shall release to the department of juvenile corrections all educational records relating to a pupil who is awarded to the department of juvenile corrections within ten working days after the date the request is received.

D. A juvenile court may require a school district to provide the court with the educational records of a juvenile who is accused of committing a delinquent or incorrigible act before the juvenile is adjudicated. The educational records shall include the juvenile's cumulative file and discipline file and, if applicable, records that are compiled pursuant to the individuals with disabilities education act (P.L. 91-230; 84 Stat. 175; 20 United States Code section 1400) and the rehabilitation act of 1973 (P.L. 93-112; 87 Stat. 394; 29 United States Code section 794). The presiding judge of the juvenile court shall adopt procedures for the transmission of the educational records from the school district to the juvenile court. The disclosure of the educational records shall comply with the family educational and privacy rights act of 1974 (20 United States Code section 1232g) and shall ensure the ability of the juvenile court to effectively serve, before adjudication, the juvenile whose records are released. Nothing in this subsection shall be considered to prevent the juvenile court from adjudicating a juvenile prior to receiving educational records pursuant to this subsection.

E. A school district may release pupil attendance, disciplinary and other educational records to a law enforcement agency and county attorney pursuant to an intergovernmental agreement among the school district, law enforcement agency, county attorney and other state, local or tribal government agencies to create a local or tribal governmental juvenile justice network for the purpose of:

Providing appropriate programs and services to intervene with juveniles currently involved in the juvenile justice system.
Providing appropriate programs and services designed to deter at-risk juveniles from dropping out of school or other delinquent behavior.
Increasing the safety and security of the community and its children by reducing juvenile crime.

F. Educational records provided pursuant to an intergovernmental agreement entered into pursuant to subsection E shall be used solely for the purposes of the agreement and shall not be disclosed to any other party, except as provided by law.

§ 15-142 Directory information relating to students; notice; opt-out; consent; access to directory information; access to school property; violation; definition

A. Except as provided in subsection B of this section, a school may disclose directory information relating to students in accordance with state and federal law if the school first notifies the parent or eligible student of all of the following:

The types of information that the school has designated as directory information.
The right of the parent or eligible student to refuse the school's designation of any or all of the types of information about the student as directory information.
The period of time within which a parent or eligible student must notify the school in writing that the parent or eligible student does not want any or all of the types of information about the student designated as directory information.

B. Except as required by state or federal law, a school may not disclose the address, telephone number or email address of a student unless either:

The parent or eligible student has affirmatively consented in writing to the disclosure.
The parent or eligible student has not opted out of the disclosure pursuant to subsection A of this section and the disclosure is either:

(a) To one or more students who are enrolled in the school and for educational purposes.

(b) To school employees and for school business purposes.

C. If the governing board of a school district or the governing body of a charter school allows the release of directory information relating to students, subject to subsections A and B of this section, or allows access to school buildings, school grounds or other school property to persons who inform students of educational or occupational opportunities, the governing board or governing body shall provide access to directory information relating to students and to school property on the same basis for official recruiting representatives of the militia of this state and the armed services of the United States for the purpose of informing students of educational and occupational opportunities available in the militia and the armed services. If the school district or charter school allows the release of directory information relating to students, subject to subsections A and B of this section, the information shall be released on or before October 31 of each year. The department of education shall design and provide to school districts and charter schools a form to allow parents or eligible students to request that a student's directory information not be released pursuant to the elementary and secondary education act as reauthorized by the no child left behind act of 2001. School districts and charter schools shall distribute the form to parents and eligible students each year separate from any other form. If a school district or charter school distributes materials to parents and eligible students through an electronic communication or on an internet website, the form may be distributed in the same manner. A person who is wrongfully denied access to directory information or access to school buildings, school grounds or other school property may notify the department of education, which shall report the alleged violation to the United States department of education.

D. Notwithstanding subsection C of this section, student transcripts may not be released to representatives of postsecondary institutions, the militia of this state or the armed services of the United States unless the student consents in writing to the release of the student's transcript. The governing board of the school district or the governing body of the charter school shall provide the student with a transcript release form that allows the student to designate in separate check boxes whether the transcript is to be released to postsecondary institutions, the militia of this state or the armed services of the United States, or to any combination of these entities.

E. This section does not authorize school districts or charter schools to release information that would violate the family educational rights and privacy act of 1974 (20 United States Code section 1232g). Any person who suspects that a school district or charter school has knowingly violated the family educational rights and privacy act may notify the principal of the charter school or the superintendent of the school district. If the matter is not satisfactorily resolved by the principal of the charter school or the superintendent of the school district within sixty days after the notice, the person may file a complaint with the superintendent of public instruction. If the superintendent of public instruction determines that a school district or charter school is knowingly in violation of the family educational rights and privacy act, the superintendent of public instruction shall notify the school district or charter school that it is in violation of the family educational rights and privacy act. If the superintendent of public instruction determines that the school district or charter school has failed to correct the violation within sixty days after a notice has been issued pursuant to this subsection, the superintendent of public instruction may inform the family policy compliance office of the United States department of education of a possible violation of the family educational rights and privacy act.

F. For the purposes of this section, "eligible student" means a student who is at least eighteen years of age or is emancipated.

§ 15-143 Educational records; rights of parents

A. In accordance with the rights secured under section 1-602, subsection A, paragraph 2, a parent shall have access to all written and electronic records of a school district or charter school or a school district or charter school employee concerning the parent's child and to all electronic accounts of the parent's child, including all of the following:

Attendance records.
Test scores of school-administered tests and statewide assessments.
Grades.
Extracurricular activities or club participation.
Disciplinary records.
Counseling records.
Psychological records.
Applications for admission.
Health and immunization information, including any medical records that are maintained by a health clinic or medical facility operated or controlled by the school district or charter school or that are located on school district or charter school property.
Teacher and counselor evaluations.
Reports of behavioral patterns.
Email accounts.
Online or virtual accounts or data.

B. A parent may file suit against a school district or charter school that violates subsection A of this section in the superior court in the county in which the violation occurs. This section does not preclude a parent from filing a suit asserting a violation of this section or any other claim otherwise allowed by law.

C. A parent who successfully asserts a claim under subsection A of this section may recover:

Declaratory relief.
Injunctive relief to prevent or remedy a violation of subsection A of this section or the effects of the violation.
Reasonable attorney fees and costs.
Any other appropriate relief.

Article 5 Safety Requirements

§ 15-151 Eye protective devices; definition

A. Every student, teacher and visitor in public and private schools, community colleges, colleges and universities shall wear appropriate eye protective ware while participating in or when observing vocational, technical, industrial arts, art or laboratory science activities involving exposure to:

Molten metals or other molten materials.
Cutting, shaping and grinding of materials.
Heat treatment, tempering or kiln firing of any metal or other materials.
Welding fabrication processes.
Explosive materials.
Caustic solutions.
Radioactive materials.

B. The governing board of every school district, the governing board of every community college district, the Arizona board of regents and every person maintaining a private or parochial school in this state shall equip schools within their jurisdiction with eye protective ware for use as required in this article.

C. Standards and rules for the enforcement of this article shall be prescribed by the governing board of every school district, the community college district governing board of each community college district and the Arizona board of regents.

D. Schools, community colleges, colleges and universities may receive and expend federal, state and local monies to provide eye protective devices.

E. For purposes of this article, "eye protective wear" means devices meeting the standards of the American national standards institute's standards for occupational and education eye protection, Z87.1-1989.

§ 15-152 Pest management at schools; notice

A. The governing board of each school district shall develop and adopt a policy to provide pupils and employees with at least forty-eight hours' notice before pesticides are applied on school property. The policy shall include at least the following:

Procedures for oral notification to pupils and employees during the regular school session.
Procedures for written, electronic or telephonic notification to parents or guardians at least forty-eight hours prior to the application of pesticides.

B. For purposes of this section, pesticides do not include:

Nonrestricted use disinfectants, sanitizers or deodorizers regulated by the federal insecticide, fungicide and rodenticide act but include other pesticides regulated under the federal insecticide, fungicide and rodenticide act (P.L. 100-532; 102 Stat. 2654; 7 United States Code section 136).
Nonresidual pesticide applications performed or contracted by public health agencies for vector control.
Emergency applications of a pesticide that has a toxicity category of III or IV pursuant to 40 Code of Federal Regulations section 156.62 to control harmful pests that pose an imminent threat to the public health.

§ 15-153 Crime reporting; policies and procedures; notification; discipline

A. Each school district governing board and charter school governing body shall prescribe and enforce policies and procedures for school personnel to report any suspected crime against a person or property that is a serious offense as defined in section 13-706 or that involves a deadly weapon or dangerous instrument or serious physical injury and any conduct that poses a threat of death or serious physical injury to an employee, student or other person on the school property. The policies shall dictate a process for employees to document and report the conduct, including specifying the employees responsible for making a report to the local law enforcement agency pursuant to section 15-341, subsection A, paragraph 30. Conduct that is considered to be bullying, harassment or intimidation shall be addressed according to policies adopted pursuant to section 15-341, subsection A, paragraph 36.

B. Each school district governing board and charter school governing body shall prescribe and enforce policies and procedures that require the school district or charter school to notify the parent or guardian of each student who is involved in a suspected crime or any conduct that is described in subsection A of this section, subject to the requirements of federal law.

C. On or before January 1, 2020, each school district or charter school shall post the policies and procedures prescribed by this section on its website. If the school district or charter school maintains an online manual of policies and procedures, the school district or charter school may post a link to that manual with a reference to the appropriate policies and procedures.

D. A person who violates subsection A of this section may be disciplined for violating the policies of the school district governing board or charter school governing body pursuant to section 15-341, subsection A, paragraphs 21 and 22, and, notwithstanding section 15-341, subsection A, paragraphs 21 and 22, may be subject to dismissal. Each school district governing board and charter school governing body shall prescribe and enforce policies and procedures that require the school district or charter school to maintain a record on any person who is disciplined pursuant to this subsection and, on request, shall make that record available to any public school, school district governing board or charter school governing body that is considering hiring that person.

E. By July 1, 2020, the department of education shall develop a process to verify that each school district and charter school has adopted the policies and procedures required by this section.

F. Beginning January 21, 2020, a school district or charter school that has not adopted the policies and procedures required by this section is not eligible to apply for school safety program grants pursuant to section 15-154.

§ 15-154 School safety program; purpose; program proposals; requirements; annual report; public records exemption; definitions

A. The school safety program is established within the department of education to support, promote and enhance safe and effective learning environments for all students by supporting the costs of placing school resource officers, juvenile probation officers, school safety officers, school counselors and school social workers on school campuses. The school safety program may also support the costs of purchasing safety technology, safety training and infrastructure improvements for school campuses as provided in subsection D of this section. A school district or charter school may apply to participate in the school safety program as provided in this section for up to three fiscal years by submitting by April 15 a program proposal to the department of education. A school district or charter school that receives approval for a three-year program under this subsection may annually submit a modified spending plan for its approved program.

B. A program proposal submitted by a school district or charter school for supporting the costs of placing school resource officers, juvenile probation officers or school safety officers, or any combination of these officers, on a school campus shall contain:

A detailed description of the school safety needs of the charter school or school district.
A plan to provide the current school building blueprints, floor plans and school safety assessments for each school site to the local law enforcement agency, emergency medical services provider and fire department that provides services to the school site.
A plan for implementing a law-related education program or a plan that demonstrates the existence of a law-related education program as a school safety prevention strategy.
A plan to use trained school resource officers, juvenile probation officers or school safety officers, or any combination of these officers, in the school.
A plan to train school resource officers, juvenile probation officers or school safety officers, or any combination of these officers, on the family educational rights and privacy act, civil rights and adolescent mental health issues.
If the school district or charter school has already participated in the school safety program, information on the success, compliance and implementation of the most recent grant.

C. A program proposal submitted by a school district or charter school for supporting the costs of placing school counselors or school social workers, or both, on a school campus shall contain:

A detailed description of the school safety needs of the charter school or school district.
A plan to provide the current school building blueprints, floor plans and school safety assessments for each school site to the local law enforcement agency, emergency medical services provider and fire department that provides services to the school site.
A plan for implementing a school guidance and counseling program that includes the following:

(a) A detailed description of the relationship between the school counselor or the school social worker, or both, and local community resources.

(b) A plan for using school counselor and school social worker services in the school, or both.

(d) Policies on confidentiality under the school guidance and counseling plan.

(e) Policies on notifying parents and other family members of issues or concerns as identified in the school guidance and counseling plan.

(f) A detailed description of the school's, school district's or charter school's referral procedures to the appropriate community entities and state agencies.

If the school district or charter school has already participated in the school safety program, information on the success, compliance and implementation of the most recent approved program proposal.

D. If a school district or charter school whose program proposal pursuant to subsection B or C of this section was approved by the state board of education cannot place one or more of the school resource officers, juvenile probation officers, school safety officers, school counselors or school social workers, or any combination of these individuals, as included in the approved program proposal, the school district or charter school may submit an alternative program proposal for supporting the costs of purchasing safety technology, safety training and infrastructure improvements for its school campus or campuses. An alternative program proposal submitted pursuant to this subsection shall contain:

A detailed description of the safety needs of the school district or charter school.
A detailed description of the proposed expenditures and capital improvements, including:

(a) The safety needs that each proposed expenditure will address.

(b) The specific technology or training program that the school district or charter school seeks to acquire.

(c) For infrastructure improvements, all costs associated with the improvements, including architectural and engineering fees, safety evaluations and equipment for securing entrances and exits.

Any other information requested by the department of education.

E. The department of education shall review and administer the school resource officers, juvenile probation officers and school safety officers program proposals in cooperation with the courts, law enforcement agencies and law-related education providers awarded a contract pursuant to section 41-2534, subject to review and approval by the state board of education. The department of education shall use relevant crime statistics to assess the needs of each program proposal and shall visit school districts and charter schools that submit program proposals in order to verify the information contained in the program proposals. The department of education shall contract to provide guidelines, curricula and support resources for school resource officers, juvenile probation officers and school safety officers to use in implementing a law-related education program.

F. The department of education shall review and administer the school counselors and school social workers program proposals in cooperation with school administrators, principals, teachers, parents and community mental health professionals. The department of education shall use relevant school-level academic, social and emotional statistics to assess the needs of each program proposal and shall visit school districts and charter schools that submit program proposals in order to verify the information contained in the program proposals.

G. The department of education shall review and administer the safety technology, safety training and infrastructure improvements program proposals. The department shall use relevant crime statistics to assess the needs of each program proposal and may visit school districts and charter schools that submit program proposals in order to verify the information contained in the program proposals. The department may approve all or part of a safety technology, safety training or infrastructure improvement program proposal.

H. The department of education, subject to the review and approval of the state board of education, shall distribute monies to the school districts and charter schools that are in compliance with program requirements prescribed in this section and in section 15-154.02 and whose program proposals have been approved by the state board of education.

I. The department of education shall review program proposals submitted by school districts and charter schools for participation in the school safety program and shall select school sites that are eligible to receive funding based on school safety needs pursuant to this section. The department of education may prioritize program proposals for school resource officer, juvenile probation officer and school safety officer grants to school districts and charter schools that have agreements to share the cost of the school resource officer, juvenile probation officer or school safety officer with a law enforcement agency or the courts.

J. The department of education shall evaluate the effectiveness of all the approved program proposals submitted pursuant to subsections B, C and D of this section within the school safety program and report on the activities of the program and the participants in the school safety program to the president of the senate, the speaker of the house of representatives and the governor on or before November 1 of each year and shall provide a copy of this report to the secretary of state. The evaluation and report shall include survey results from participating schools and data from participating schools on the impact of participating in the school safety program. The department shall establish data guidelines for school safety program participants to follow in reporting pursuant to this subsection.

K. The school safety program established by this section shall include a school safety program guidance manual adopted by the department of education that requires a dispute resolution process to be included in the service agreement between a school district or charter school that submitted a program proposal and received a school resource officer grant or school safety officer grant from the school safety program and the law enforcement agency that provides services to the school district or charter school.

L. Any appropriations that are made to the department of education for the approved program proposals within the school safety program are exempt from the provisions of section 35-190 relating to lapsing of appropriations. All monies that are not used for an approved program proposal within the school safety program during the fiscal year for which the monies were appropriated revert to the department of education for distribution to the program in the following fiscal year.

M. Monies received by a school district or charter school under the school safety program shall be spent to implement the approved program proposals.

N. The auditor general shall include the school safety program as part of its ongoing sunset review of agencies and programs.

O. Notwithstanding any other law, school building blueprints and floor plans are not public records and are exempt from title 39, chapter 1.

P. For the purposes of this section:

"Law-related education" means interactive education to equip children and youth with knowledge and skills pertaining to the law, school safety and effective citizenship.
"Law-related education program" means a program designed to provide children and youth with knowledge, skills and activities pertaining to the law and legal process and to promote law-abiding behavior with the purpose of preventing children and youth from engaging in delinquency or violence and enabling them to become productive citizens.
"School counselor" means a professional educator who holds a valid school counselor certificate issued by the department of education.
"School guidance and counseling program" means a counseling program that supports, promotes and enhances the academic, personal, social, emotional and career development of all students.
"School resource officer" means any of the following:

(a) A peace officer.

(b) A full-authority reserve peace officer who is certified by the Arizona peace officer standards and training board.

(c) An individual who was previously employed as a peace officer in this state, who retired in good standing and who is assigned to participate in the school safety program by a law enforcement agency pursuant to section 15-155.

"School safety officer" means a school resource officer who is working in an off-duty capacity.
"School social worker" means a professional educator who holds a valid school social worker certificate issued by the department of education.

§ 15-154.01 Character education matching grant program

A. Any public or charter school that teaches a character education curriculum pursuant to section 15-719 is eligible for a state matching grant. The school shall provide matching monies from any lawful source, except that the school shall not use resources obtained from a federal character education grant as matching monies to obtain a second state character education grant.

B. The character education program shall be an age-specific, stand-alone character education curriculum with the following elements:

Applicable definitions for character qualities that include at least five of the following attributes:

(a) Attentiveness.

(b) Caring.

(d) Compassion.

(e) Diligence.

(f) Discernment.

(g) Forgiveness.

(h) Generosity.

(i) Gratefulness.

(j) Initiative.

(k) Orderliness.

(l) Respect.

(m) Responsibility.

(n) Sincerity.

(o) Trustworthiness.

(p) Virtue.

(q) Wisdom.

Activities that provide a forum for practical application and an environment in which character-related behavior is identified, recognized and reinforced, such as literature or visual media presentations or discussion of character values as they relate to a specific story.
Stories from the lives of our nation's leaders in which character qualities are demonstrated.
Mentors or teachers who demonstrate the character qualities defined in the lessons presented.
Mentor and teacher training for praising students who demonstrate specific character qualities.
A precourse and postcourse survey of parents, teachers and students on their assessment of the program.

C. The department of education shall administer the program and distribute the state matching grant monies. The department may annually retain up to seven per cent of the state matching grant monies for the cost of administering the program. Programs must demonstrate proven and effective curriculum and training to receive matching grant funds.

D. The department of education shall distribute the state matching grant monies under this section for services provided by organizations that have been previously preapproved as providers of proven and effective programs. Grant applications submitted by schools:

Shall be submitted to the department of education and shall list a selected preapproved program provider.
Shall be fairly and objectively reviewed and approved by a technical evaluation team that is appointed by the procurement division of the department of education and that is composed of representatives from the department of education, the education community, the business community and nonprofit organizations.
Are subject to the procurement laws of this state.

E. The department of education shall apply for all applicable character education grants from the federal government.

F. The department of education shall evaluate the effectiveness of all character education programs funded by state and federal resources.

§ 15-154.02 Emergency response plans; school safety assessments; approved providers; triennial safety assessments

A. Each school district and charter school that receives monies pursuant to section 15-154 for an approved school safety program shall do both of the following:

Develop an emergency response plan pursuant to section 15-341, subsection A, paragraph 31 or section 15-183, subsection E, paragraph 10 to satisfy the requirements prescribed in this paragraph.
Every five years, contract with a school safety assessment provider from the list compiled pursuant to subsection B of this section to conduct a school safety assessment, including an assessment of the physical security of each school site and a review of the emergency response plan for each school site.

B. The department of education shall compile a list of approved school safety assessment providers and shall make the list available to school districts and charter schools that participate in the school safety program established by section 15-154.

C. Every three years, the department of education shall select a random sample of school districts and charter schools that are participating in the school safety program established by section 15-154 and shall conduct a safety assessment of the selected school districts and charter schools. The department shall provide a copy of the safety assessment results to the respective school district's governing board or charter school's governing body and the administrators of each school site that was assessed.

§ 15-155 School safety program; funding

A. The department of education shall cooperate with the county school superintendent, the county sheriff and the local chief of police to allow a law enforcement agency, with the consent of the school, to assign a peace officer, a full-authority reserve peace officer who is certified by the Arizona peace officer standards and training board or an individual who was previously employed as a peace officer in this state and who retired in good standing to participate in the school safety program in each school in the county. The cost of the peace officer is a state charge that is funded by the department of education, except for agreements to share the cost of the school resource officer pursuant to section 15-154, subsection I.

B. In cooperation with the department of education and the county school superintendent and with the consent of the school, the presiding judge of the juvenile court may assign juvenile probation officers to participate in the school safety program in each school in the county. The cost of juvenile probation officers is a state charge that is funded by the department of education, except for agreements to share the cost of the juvenile probation officer pursuant to section 15-154, subsection I.

§ 15-156 Liquid roofing systems; violation; classification; definition

A. A person shall not knowingly apply or allow to be applied a liquid roofing system that the person knows or with the exercise of reasonable care should know contains at least one-tenth of one per cent by weight or volume of any diisocyanate on a building that is owned or operated by a public school while a teacher or student is present in the building.

B. A person shall not knowingly allow any teacher or student to remain in a building that is owned or operated by a public school during, and for at least two hours after, a liquid roofing system has been applied that the person knows or with the exercise of reasonable care should know contains at least one-tenth of one per cent by weight or volume of any diisocyanate.

C. Current material safety data sheets must be supplied to the school prior to the application of liquid roofing systems containing more than one-tenth of one per cent by weight or volume of any diisocyanate on a building owned or operated by a public school. Applicators of liquid roofing systems must follow all applicable occupational safety and health administration regulations. All federal, state, and local regulations governing the use, shipment, and disposal of diisocyanates shall be followed and strictly adhered to.

D. A person who violates this section is guilty of a class 2 misdemeanor.

E. For the purposes of this section, "diisocyanate" means any diisocyanate used in a liquid applied roofing system including methylene bisphenyl diisocyanate, also known as methylene diphenyl diisocyanate or MDI, polymeric methylene bisphenyl diisocyanate, also known as polymeric MDI, or hexamethylene diisocyanate or HDI.

§ 15-157 Emergency administration; epinephrine delivery systems; trained personnel; immunity

Pursuant to a standing order issued by the chief medical officer of the department of health services, the chief medical officer of a county health department, a doctor of medicine licensed pursuant to title 32, chapter 13, a doctor of naturopathic medicine licensed pursuant to title 32, chapter 14, a doctor of osteopathic medicine licensed pursuant to title 32, chapter 17, a nurse practitioner licensed pursuant to title 32, chapter 15 or a physician assistant licensed pursuant to title 32, chapter 25, an employee of a school district or charter school who is trained in the administration of epinephrine delivery systems may administer or assist in the administration of epinephrine delivery systems to a pupil or an adult whom the employee believes in good faith to be exhibiting symptoms of anaphylactic shock while at school or at a school-sponsored activity. Each school district and charter school may stock two or more juvenile doses and two or more adult doses of epinephrine delivery systems at each school pursuant to a standing order issued by the chief medical officer of the department of health services, the chief medical officer of a county health department, a doctor of medicine licensed pursuant to title 32, chapter 13, a doctor of naturopathic medicine licensed pursuant to title 32, chapter 14, a doctor of osteopathic medicine licensed pursuant to title 32, chapter 17, a nurse practitioner licensed pursuant to title 32, chapter 15 or a physician assistant licensed pursuant to title 32, chapter 25. A school district or charter school may accept monetary donations for or apply for grants to purchase epinephrine delivery systems or may participate in third-party programs to obtain epinephrine delivery systems at fair market, free or reduced prices. The chief medical officer of the department of health services, the chief medical officer of a county health department, a doctor of medicine licensed pursuant to title 32, chapter 13, a doctor of naturopathic medicine licensed pursuant to title 32, chapter 14, a doctor of osteopathic medicine licensed pursuant to title 32, chapter 17, a nurse practitioner licensed pursuant to title 32, chapter 15 or a physician assistant licensed pursuant to title 32, chapter 25, a school district, a charter school and employees of a school district or charter school are immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this section, except in cases of gross negligence, wilful misconduct or intentional wrongdoing.

§ 15-158 Emergency administration of inhalers by trained personnel; immunity; definitions

A. Pursuant to a standing order issued by the chief medical officer of a county health department, a physician licensed pursuant to title 32, chapter 13 or 17 or a nurse practitioner licensed pursuant to title 32, chapter 15, a nurse who is under contract with a school district or charter school or an employee of a school district or charter school who is trained in the administration of inhalers may administer or assist in the administration of an inhaler to a pupil or an adult whom the employee or contracted nurse believes in good faith to be exhibiting symptoms of respiratory distress while at school or at a school-sponsored activity. A school district or charter school may accept monetary donations for or apply for grants for the purchase of inhalers and spacers or holding chambers or may accept donations of inhalers and spacers or holding chambers directly from the product manufacturer.

B. Chief medical officers of county health departments, physicians licensed pursuant to title 32, chapter 13 or 17, nurse practitioners licensed pursuant to title 32, chapter 15, school districts, charter schools, employees of school districts and charter schools and nurses who are under contract with a school district or charter school are immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this section, except in cases of gross negligence, wilful misconduct or intentional wrongdoing.

C. For the purposes of this section:

"Bronchodilator" means albuterol or another short-acting bronchodilator that is approved by the United States food and drug administration for the treatment of respiratory distress.
"Inhaler" means a device that delivers a bronchodilator to alleviate symptoms of respiratory distress, that is manufactured in the form of a metered-dose inhaler or dry-powder inhaler and that includes a spacer or holding chamber that attaches to the inhaler to improve the delivery of the bronchodilator.
"Respiratory distress" includes the perceived or actual presence of coughing, wheezing or shortness of breath.

§ 15-159 Use of sunscreen in schools

A pupil who attends any public school in this state may possess and use a topical sunscreen product while on school property or at a school-sponsored event without a note or prescription from a licensed health care professional.

§ 15-160 Student identification cards; suicide prevention; contact information required

A. Beginning July 1, 2021, if a school district governing board or charter school governing body issues identification cards to students in grades nine through twelve, the school district governing board or charter school governing body shall include at least one of the following on each new identification card issued to a student in grade nine through twelve:

The telephone number for a national suicide prevention lifeline.
The telephone number for a national network of local crisis centers.
A statement describing how to access a text-based emotional support service.
The telephone number for a local suicide prevention hotline.

B. A school district governing board or charter school governing body may include the information described in subsection A of this section on student identification cards by printing the information on, or by affixing a sticker that contains the information to, the identification cards.

§ 15-160.01 Child abuse hotline; required posting

Each school that is operated by a school district and each charter school shall post in a clearly visible location in a public area of the school that is readily accessible to students a sign that contains all of the following:

In boldfaced type, the telephone number of the centralized intake hotline that is established pursuant to section 8-455 concerning suspected abuse and neglect of children.
Instructions to call 911 for emergencies.
Directions for accessing the website of the department of child safety for more information on reporting child abuse, child neglect and the exploitation of children.

§ 15-160.02 Seizure management and treatment plans; requirements; immunity; online instruction; rules

A. Beginning in the 2022-2023 school year, the parent or guardian of a student who has a seizure disorder and who is enrolled in a school that is operated by a school district or a charter school in this state may submit to the school district or charter school in which the student is enrolled a copy of a seizure management and treatment plan for school personnel to use if the student suffers a seizure at school or while participating in a school-sponsored activity. The plan must be developed by the student's parent or guardian and the physician or registered nurse practitioner as defined in section 32-1601 responsible for the student's seizure treatment. The plan must be submitted to and reviewed by the school district or charter school:

Before or at the beginning of the school year.
If the student enrolls in the school district or charter school after the beginning of the school year, when the student enrolls.
As soon as practicable following a diagnosis of the student's seizure disorder.

B. A seizure management and treatment plan must meet all of the following requirements:

Outline procedures recommended by the physician or registered nurse practitioner as defined in section 32-1601 responsible for the student's seizure treatment to manage an active seizure if the student suffers a seizure at school or while participating in a school-sponsored activity.
Outline other health care services available at the school that the student may receive to help to manage the student's seizure disorder at school or while participating in a school-sponsored activity.
Be signed by the student's parent or guardian and the physician or registered nurse practitioner as defined in section 32-1601 responsible for the student's seizure treatment.

C. A school nurse who is employed by or under contract with a school district or charter school shall review each seizure management and treatment plan. If a school nurse is not available, the school district or charter school shall designate an employee who is responsible for reviewing seizure management and treatment plans.

D. School districts, charter schools, employees of school districts or charter schools and nurses who are under contract with a school district or charter school are immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of a seizure management and treatment plan submitted pursuant to this section, including an action or failure to act in administering a medication, assisting with self-administration or otherwise providing for the care of a student under a seizure management and treatment plan submitted for the student under this section, except in cases of gross negligence, wilful misconduct or intentional wrongdoing.

E. A school nurse who is employed by or under contract with a school district or charter school that has received a seizure management and treatment plan shall complete an online course of instruction for school nurses regarding managing students with seizure disorders. The course must be approved by the state board of education and include information about seizure recognition and related first aid. The training prescribed in this subsection may not be required more than once in a five-year period.

F. A school principal, guidance counselor, teacher, bus driver or classroom aide whose duties at the school include regular contact with students who have submitted a seizure management and treatment plan shall complete an online course of instruction for school personnel regarding awareness of students with seizure disorders. The course must be approved by the state board of education and include information about seizure recognition and related first aid. The training prescribed in this subsection may not be required more than once in a five-year period.

G. A school district or charter school complies with this section if a student requires an educational accommodation under section 504 of the rehabilitation act of 1973 (P.L. 93-112; 87 Stat. 355; 29 United States Code section 794) and the student's accommodation plan includes a seizure management and treatment plan.

H. Beginning September 1, 2023, each charter school and school that is operated by a school district shall have at least one school employee at the school other than a school nurse who has met the training requirements necessary to administer or assist with the self-administration of both of the following:

A seizure rescue medication or a medication prescribed to treat seizure disorder symptoms as approved by the United States food and drug administration, or its successor agency.
A manual dose of prescribed electrical stimulation using a vagus nerve stimulator magnet as approved by the United States food and drug administration, or its successor agency.

I. Not later than December 1, 2022, the state board of education shall approve an online course of instruction that is provided free of charge by a nonprofit national foundation and that supports the welfare of individuals with epilepsy and seizure disorders to satisfy the training required by subsections E and F of this section.

J. The state board of education shall adopt rules as necessary to administer this section.

§ 15-160.03 Department of child safety caseworker; school visit; identification requirement

A. When a department of child safety caseworker visits a child at the child's school for the purpose of an interview, the school shall require that the caseworker present the caseworker's department of child safety identification. The caseworker may be asked to show the caseworker's valid driver license or valid nonoperating identification license on request. The school may not keep a digital or physical record of the caseworker's personal identifying information. The school may keep a digital or physical record of the caseworker's department of child safety identification.

B. If a department of child safety caseworker declines or is unable to provide the forms of identification listed in subsection A of this section, the department of child safety caseworker shall provide the child's school with the contact information for the department of child safety office where the caseworker is employed. The school shall contact the department of child safety office and verify the caseworker's identification and employment.

§ 15-160.04 Routine health care services; employee credentials; training requirements; definition

A. On request by a student's parent or guardian, each school district or charter school that provides routine health care services to students in the school's health office shall provide the health care credentials, if any, of each individual who provides routine health care services to students in the school's health office.

B. On request by a student's parent or guardian, each school district or charter school shall provide information describing the types of emergency response training, including cardiopulmonary resuscitation training, that the school district or charter school requires school employees to complete.

C. This section does not require a school district or charter school to release the personally identifiable information of a school employee or an individual who provides routine health care services to students, including the employee's or individual's address, salary, social security number or telephone number.

D. For the purposes of this section, "health care credentials" means a license, certificate, permit or registration to practice a health care profession under title 32.

Article 6 State Prohibitions

§ 15-161 State control over private schools

Nothing in this title shall be construed to provide the state board of education or the governing boards of school districts control or supervision over private schools.

Article 8 Charter Schools

§ 15-181 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 56.

B. Charter schools shall comply with all provisions of this article in order to receive state funding as prescribed in section 15-185.

§ 15-182 State board for charter schools; membership; terms; compensation; duties

A. The state board for charter schools is established consisting of the following members:

The superintendent of public instruction or the superintendent's designee.
Five members of the general public, at least two of whom reside in a school district where at least sixty percent of the children who attend school in the district meet the eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free lunches, and at least one of whom resides on an Indian reservation, who are appointed by the governor pursuant to section 38-211.
Two members of the business community who are appointed by the governor pursuant to section 38-211.
A teacher who provides classroom instruction at a charter school and who is appointed by the governor pursuant to section 38-211.
An operator of a charter school who is appointed by the governor pursuant to section 38-211.
An operator of an alternative charter school, as recognized by the department of education as a school whose sole and clearly stated mission is to serve specific populations of at-risk students, who is appointed by the governor pursuant to section 38-211.
Three members of the legislature who serve as advisory members and who are appointed jointly by the president of the senate and the speaker of the house of representatives.

B. The superintendent of public instruction shall serve a term on the state board for charter schools that runs concurrently with the superintendent's term of office. The members appointed pursuant to subsection A, paragraph 7 of this section shall serve two-year terms on the state board for charter schools that begin and end on the third Monday in January and that run concurrently with their respective terms of office. Members appointed pursuant to subsection A, paragraphs 2, 3, 4, 5 and 6 of this section shall serve staggered four-year terms that begin and end on the third Monday in January.

C. The state board for charter schools shall annually elect a president and such other officers as it deems necessary from among its membership.

D. Members of the state board for charter schools are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

E. The state board for charter schools shall:

Exercise general supervision over charter schools that are sponsored by the board, recommend legislation pertaining to charter schools to the legislature and adopt rules and policies that the board deems necessary to accomplish the purposes prescribed in this section.
Grant charter status to qualifying applicants for charter schools pursuant to section 15-183.
Adopt and use an official seal in the authentication of its acts.
Keep a record of its proceedings.
Adopt rules for its own government.
Determine the policy of the board and the work undertaken by it.
Delegate to the superintendent of public instruction the execution of board policies.
Prepare a budget for expenditures necessary for the proper maintenance of the board and the accomplishment of its purpose.

F. The state board for charter schools may:

Contract.
Sue and be sued.
Use the services of the auditor general.
Subject to title 41, chapter 4, article 4 and legislative appropriation, employ staff.

G. The state board for charter schools may accept gifts or grants of monies or real or personal property from public and private organizations, if the purpose of the gift or grant specified by the donor is approved by the board and is within the scope of the board's powers and duties. The board shall establish and administer a gift and grant fund for the deposit of monies received pursuant to this subsection.

§ 15-183 Charter schools; application; requirements; immunity; exemptions; renewal of application; reprisal; fee; funds; annual reports; definitions

A. An applicant seeking to establish a charter school shall apply in writing to a proposed sponsor as prescribed in subsection C of this section. The application, application process and application time frames shall be posted on the sponsor's website and shall include the following, as specified in the application adopted by the sponsor:

A detailed educational plan.
A detailed business plan.
A detailed operational plan.
Any other materials required by the sponsor.

B. The sponsor of a charter school may contract with a public body, private person or private organization for the purpose of establishing a charter school pursuant to this article.

C. The sponsor of a charter school may be either the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts, subject to the following requirements:

An applicant may not apply for sponsorship to any person or entity other than those prescribed in this subsection.
The applicant may apply to the state board of education or the state board for charter schools. Notwithstanding any other law, neither the state board for charter schools nor the state board of education shall grant a charter to a school district governing board for a new charter school or for the conversion of an existing district public school to a charter school. The state board of education or the state board for charter schools may approve the application if the application meets the requirements of this article and may approve the charter if the proposed sponsor determines, within its sole discretion, that the applicant is sufficiently qualified to operate a charter school and that the applicant is applying to operate as a separate charter holder by considering factors such as whether:

(a) The schools have separate governing bodies, governing body membership, staff, facilities and student population.

(b) Daily operations are carried out by different administrators.

(d) The applicant's charter management organization has multiple charter holders serving varied grade configurations on one physical site or nearby sites serving one community.

(e) The applicant is reconstituting an existing school site population at the same or new site.

(f) The applicant is reconstituting an existing grade configuration from a prior charter holder with at least one grade remaining on the original site with the other grade or grades moving to a new site. The state board of education or the state board for charter schools may approve any charter schools transferring charters. If the state board of education or the state board for charter schools rejects the preliminary application, the state board of education or the state board for charter schools shall notify the applicant in writing of the reasons for the rejection and of suggestions for improving the application. An applicant may submit a revised application for reconsideration by the state board of education or the state board for charter schools. The applicant may request, and the state board of education or the state board for charter schools may provide, technical assistance to improve the application.

The applicant may submit the application to a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts. A university, a community college district or a group of community college districts shall not grant a charter to a school district governing board for a new charter school or for the conversion of an existing district public school to a charter school. A university, a community college district or a group of community college districts may approve the application if it meets the requirements of this article and if the proposed sponsor determines, in its sole discretion, that the applicant is sufficiently qualified to operate a charter school.
Each applicant seeking to establish a charter school shall submit a full set of fingerprints to the approving agency for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. If an applicant will have direct contact with students, the applicant shall possess a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. The criminal records check shall be completed before the issuance of a charter.
All persons engaged in instructional work directly as a classroom, laboratory or other teacher or indirectly as a supervisory teacher, speech therapist or principal and all charter representatives, charter school governing body members and officers, directors, members and partners of the charter holder shall have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1, unless the person is a volunteer or guest speaker who is accompanied in the classroom by a person with a valid fingerprint clearance card. A charter school shall not employ in any position that requires a valid fingerprint clearance card a person against whom the state board of education has taken disciplinary action as prescribed in section 15-505 or whose certificate has been suspended, surrendered or revoked, unless the person's certificate has been subsequently reinstated by the state board of education. All other personnel shall be fingerprint checked pursuant to section 15-512, or the charter school may require those personnel to obtain a fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1. Before employment, the charter school shall make documented, good faith efforts to contact previous employers of a person to obtain information and recommendations that may be relevant to the person's fitness for employment as prescribed in section 15-512, subsection F, including checking the educator information system that is maintained by the department of education pursuant to section 15-505. The charter school shall notify the department of public safety if the charter school or sponsor receives credible evidence that a person who possesses a valid fingerprint clearance card is arrested for or is charged with an offense listed in section 41-1758.03, subsection B. A person who is employed at a charter school that has met the requirements of this paragraph is not required to meet any additional requirements that are established by the department of education or that may be established by rule by the state board of education. The state board of education may not adopt rules that exceed the requirements for persons who are qualified to teach in charter schools prescribed in title I of the every student succeeds act (P.L. 114-95) or the individuals with disabilities education improvement act of 2004 (P.L. 108-446). Charter schools may hire personnel who have not yet received a fingerprint clearance card if proof is provided of the submission of an application to the department of public safety for a fingerprint clearance card and if the charter school that is seeking to hire the applicant does all of the following:

(a) Documents in the applicant's file the necessity for hiring and placing the applicant before the applicant receives a fingerprint clearance card.

(b) Ensures that the department of public safety completes a statewide criminal records check on the applicant. A statewide criminal records check shall be completed by the department of public safety every one hundred twenty days until the date that the fingerprint check is completed or the fingerprint clearance card is issued or denied.

(c) Obtains references from the applicant's current employer and the two most recent previous employers except for applicants who have been employed for at least five years by the applicant's most recent employer.

(d) Provides general supervision of the applicant until the date that the fingerprint card is obtained.

(e) Completes a search of criminal records in all local jurisdictions outside of this state in which the applicant has lived in the previous five years.

(f) Verifies the fingerprint status of the applicant with the department of public safety.

A charter school that complies with the fingerprinting requirements of this section shall be deemed to have complied with section 15-512 and is entitled to the same rights and protections provided to school districts by section 15-512.
If a charter school operator is not already subject to a public meeting or hearing by the municipality in which the charter school is located, the operator of a charter school shall conduct a public meeting at least thirty days before the charter school operator opens a site or sites for the charter school. The charter school operator shall post notices of the public meeting in at least three different locations that are within three hundred feet of the proposed charter school site.
A person who is employed by a charter school or who is an applicant for employment with a charter school, who is arrested for or charged with a nonappealable offense listed in section 41-1758.03, subsection B and who does not immediately report the arrest or charge to the person's supervisor or potential employer is guilty of unprofessional conduct and the person shall be immediately dismissed from employment with the charter school or immediately excluded from potential employment with the charter school.
A person who is employed by a charter school and who is convicted of any nonappealable offense listed in section 41-1758.03, subsection B or is convicted of any nonappealable offense that amounts to unprofessional conduct under section 15-550 shall immediately do all of the following:

(a) Surrender any certificates issued by the department of education.

(b) Notify the person's employer or potential employer of the conviction.

(d) Surrender the person's fingerprint clearance card.

D. An entity that is authorized to sponsor charter schools pursuant to this article has no legal authority over or responsibility for a charter school sponsored by a different entity. This subsection does not apply to the state board of education's duty to exercise general supervision over the public school system pursuant to section 15-203, subsection A, paragraph 1.

E. The charter of a charter school shall do all of the following:

Ensure compliance with federal, state and local rules, regulations and statutes relating to health, safety, civil rights and insurance. The department of education shall publish a list of relevant rules, regulations and statutes to notify charter schools of their responsibilities under this paragraph.
Ensure that it is nonsectarian in its programs, admission policies and employment practices and all other operations.
Ensure that it provides a comprehensive program of instruction for at least a kindergarten program or any grade between grades one and twelve, except that a school may offer this curriculum with an emphasis on a specific learning philosophy or style or certain subject areas such as mathematics, science, fine arts, performance arts or foreign language.
Ensure that it designs a method to measure pupil progress toward the pupil outcomes adopted by the state board of education pursuant to section 15-741.01, including participation in the statewide assessment and the nationally standardized norm-referenced achievement test as designated by the state board and the completion and distribution of an annual report card as prescribed in chapter 7, article 3 of this title.
Ensure that, except as provided in this article and in its charter, it is exempt from all statutes and rules relating to schools, governing boards and school districts.
Ensure that, except as provided in this article, it is subject to the same financial and electronic data submission requirements as a school district, including the uniform system of financial records as prescribed in chapter 2, article 4 of this title, procurement rules as prescribed in section 15-213 and audit requirements. The auditor general shall conduct a comprehensive review and revision of the uniform system of financial records to ensure that the provisions of the uniform system of financial records that relate to charter schools are in accordance with commonly accepted accounting principles used by private business. A school's charter may include exceptions to the requirements of this paragraph that are necessary as determined by the university, the community college district, the group of community college districts, the state board of education or the state board for charter schools. The department of education or the office of the auditor general may conduct financial, program or compliance audits.
Ensure compliance with all federal and state laws relating to the education of children with disabilities in the same manner as a school district.
Ensure that it provides for a governing body for the charter school that is responsible for the policy decisions of the charter school. Notwithstanding section 1-216, if there is a vacancy or vacancies on the governing body, a majority of the remaining members of the governing body constitute a quorum for the transaction of business, unless that quorum is prohibited by the charter school's operating agreement.
Ensure that it provides a minimum of one hundred eighty instructional days before June 30 of each fiscal year unless it is operating on an alternative calendar approved by its sponsor. The superintendent of public instruction shall adjust the apportionment schedule accordingly to accommodate a charter school utilizing an alternative calendar.
Ensure that the charter school, in conjunction with local law enforcement agencies and emergency response agencies, develop an emergency response plan for each school in accordance with minimum standards developed jointly by the department of education and the division of emergency management within the department of emergency and military affairs. Any emergency response plan developed pursuant to this paragraph must address how the school and emergency responders will communicate with and provide assistance to students with disabilities.

F. A charter school shall collect and maintain information about each teacher's educational and teaching background and experience in a particular academic content subject area. A charter school shall either post the information on the charter school's website or make the information available for inspection on request of parents and guardians of pupils enrolled at the charter school. This subsection does not require any charter school to release personally identifiable information in relation to any teacher, including the teacher's address, salary, social security number or telephone number.

G. The charter of a charter school may be amended at the request of the governing body of the charter school and on the approval of the sponsor.

H. Charter schools may contract, sue and be sued.

I. The charter is effective for fifteen years from the first day of the fiscal year as specified in the charter, subject to the following:

At least eighteen months before the charter expires, the sponsor shall notify the charter school that the charter school may apply for renewal and shall make the renewal application available to the charter school. A charter school that elects to apply for renewal shall file a complete renewal application at least fifteen months before the charter expires. A sponsor shall give written notice of its intent not to renew the charter school's request for renewal to the charter school at least twelve months before the expiration of the charter. The sponsor shall make data used in making renewal decisions available to the school and the public and shall provide a public report summarizing the evidence basis for each decision. The sponsor may deny the request for renewal if, in its judgment, the charter holder has failed to do any of the following:

(a) Meet or make sufficient progress toward the academic performance expectations set forth in the performance framework.

(b) Meet the operational performance expectations set forth in the performance framework or any improvement plans.

(d) Complete the obligations of the contract.

(e) Comply with this article or any provision of law from which the charter school is not exempt.

A charter operator may apply for early renewal. At least nine months before the charter school's intended renewal consideration, the operator of the charter school shall submit a letter of intent to the sponsor to apply for early renewal. The sponsor shall review fiscal audits and academic performance data for the charter school that are annually collected by the sponsor, review the current contract between the sponsor and the charter school and provide the qualifying charter school with a renewal application. On submission of a complete application, the sponsor shall give written notice of its consideration of the renewal application. The sponsor may deny the request for early renewal if, in the sponsor's judgment, the charter holder has failed to do any of the following:

(a) Meet or make sufficient progress toward the academic performance expectations set forth in the performance framework.

(b) Meet the operational performance expectations set forth in the performance framework or any improvement plans.

(d) Complete the obligations of the contract.

(e) Comply with this article or any provision of law from which the charter school is not exempt.

A sponsor shall review a charter at five-year intervals using a performance framework adopted by the sponsor and may revoke a charter at any time if the charter school breaches one or more provisions of its charter or if the sponsor determines that the charter holder has failed to do any of the following:

(a) Meet or make sufficient progress toward the academic performance expectations set forth in the performance framework.

(b) Meet the operational performance expectations set forth in the performance framework or any improvement plans.

(d) Comply with this article or any provision of law from which the charter school is not exempt.

In determining whether to renew or revoke a charter holder, the sponsor must consider making sufficient progress toward the academic performance expectations set forth in the sponsor's performance framework as one of the most important factors.
Before the sponsor adopts a determination of intent to revoke a charter, the charter holder shall have at least thirty days to address the problems, as necessary or applicable, associated with the reason or reasons for the determination of intent to revoke. The sponsor is not required to provide the charter holder with thirty days to correct the problems associated with the reason or reasons for adopting a determination of intent to revoke if the reason or reasons cannot be remedied, including a failure to submit required financial audits pursuant to subsection E, paragraph 6 of this section and section 15-914, or for a matter of health or safety, or both. Before the sponsor adopts a determination of intent to revoke a charter, the sponsor shall give written notice to the charter holder that includes the reason or reasons for the sponsor's consideration to revoke the charter. Notice may be provided by electronic means or by United States mail and is effective on the date of email or, if sent by United States mail, the earlier of the date of receipt by the charter holder or within five days after the notice is mailed. The determination of whether to proceed to revocation shall be made at a public meeting called for that purpose.

J. The charter may be renewed for successive periods of twenty years.

K. A charter school that is sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts may not be located on the property of a school district unless the district governing board grants this authority.

L. A governing board or a school district employee who has control over personnel actions shall not take unlawful reprisal against another employee of the school district because the employee is directly or indirectly involved in an application to establish a charter school. A governing board or a school district employee shall not take unlawful reprisal against an educational program of the school or the school district because an application to establish a charter school proposes to convert all or a portion of the educational program to a charter school. For the purposes of this subsection, "unlawful reprisal" means an action that is taken by a governing board or a school district employee as a direct result of a lawful application to establish a charter school and that is adverse to another employee or an education program and:

With respect to a school district employee, results in one or more of the following:

(a) Disciplinary or corrective action.

(b) Detail, transfer or reassignment.

(d) An unfavorable performance evaluation.

(e) A reduction in pay, benefits or awards.

(f) Elimination of the employee's position without a reduction in force by reason of lack of monies or work.

(g) Other significant changes in duties or responsibilities that are inconsistent with the employee's salary or employment classification.

With respect to an educational program, results in one or more of the following:

(a) Suspension or termination of the program.

(b) Transfer or reassignment of the program to a less favorable department.

(d) Significant reduction or termination of funding for the program.

M. Charter schools shall secure insurance for liability and property loss. The governing body of a charter school that is sponsored by the state board of education or the state board for charter schools may enter into an intergovernmental agreement or otherwise contract to participate in an insurance program offered by a risk retention pool established pursuant to section 11-952.01 or 41-621.01 or the charter school may secure its own insurance coverage. The pool may charge the requesting charter school reasonable fees for any services it performs in connection with the insurance program.

N. Charter schools do not have the authority to acquire property by eminent domain.

O. A sponsor, including members, officers and employees of the sponsor, is immune from personal liability for all acts done and actions taken in good faith within the scope of its authority.

P. Charter school sponsors and this state are not liable for the debts or financial obligations of a charter school or persons who operate charter schools.

Q. The sponsor of a charter school shall establish procedures to conduct administrative hearings on determination by the sponsor that grounds exist to revoke a charter. Procedures for administrative hearings shall be similar to procedures prescribed for adjudicative proceedings in title 41, chapter 6, article 10. Except as provided in section 41-1092.08, subsection H, final decisions of the state board of education and the state board for charter schools from hearings conducted pursuant to this subsection are subject to judicial review pursuant to title 12, chapter 7, article 6.

R. The sponsoring entity of a charter school shall have oversight and administrative responsibility for the charter schools that it sponsors. In implementing its oversight and administrative responsibilities, the sponsor shall ground its actions in evidence of the charter holder's performance in accordance with the performance framework adopted by the sponsor. The performance framework shall be publicly available, shall be placed on the sponsoring entity's website and shall include:

The academic performance expectations of the charter school and the measurement of sufficient progress toward the academic performance expectations.
The operational expectations of the charter school, including adherence to all applicable laws and obligations of the charter contract.
The financial expectations of the charter school.
Intervention and improvement policies.

S. Charter schools may pledge, assign or encumber their assets to be used as collateral for loans or extensions of credit.

T. All property accumulated by a charter school shall remain the property of the charter school.

U. Charter schools may not locate a school on property that is less than one-fourth mile from agricultural land regulated pursuant to section 3-365, except that the owner of the agricultural land may agree to comply with the buffer zone requirements of section 3-365. If the owner agrees in writing to comply with the buffer zone requirements and records the agreement in the office of the county recorder as a restrictive covenant running with the title to the land, the charter school may locate a school within the affected buffer zone. The agreement may include any stipulations regarding the charter school, including conditions for future expansion of the school and changes in the operational status of the school that will result in a breach of the agreement.

V. A transfer of a charter to another sponsor, a transfer of a charter school site to another sponsor or a transfer of a charter school site to a different charter shall be completed before the beginning of the fiscal year that the transfer is scheduled to become effective. An entity that sponsors charter schools may accept a transferring school after the beginning of the fiscal year if the transfer is approved by the superintendent of public instruction. The superintendent of public instruction shall have the discretion to consider each transfer during the fiscal year on a case-by-case basis. A charter holder seeking to transfer sponsors shall comply with the current charter terms regarding assignment of the charter. A charter holder transferring sponsors shall notify the current sponsor that the transfer has been approved by the new sponsor.

W. Notwithstanding subsection V of this section, a charter holder on an improvement plan must notify parents or guardians of registered students of the intent to transfer the charter and the timing of the proposed transfer. On the approved transfer, the new sponsor shall enforce the improvement plan but may modify the plan based on performance.

X. Notwithstanding subsection Y of this section, the state board for charter schools shall charge a processing fee to any charter school that amends its contract to participate in Arizona online instruction pursuant to section 15-808. The charter Arizona online instruction processing fund is established consisting of fees collected and administered by the state board for charter schools. The state board for charter schools shall use monies in the fund only for processing contract amendments for charter schools participating in Arizona online instruction. Monies in the fund are continuously appropriated.

Y. The sponsoring entity may not charge any fees to a charter school that it sponsors unless the sponsor has provided services to the charter school and the fees represent the full value of those services provided by the sponsor. On request, the value of the services provided by the sponsor to the charter school shall be demonstrated to the department of education.

Z. Charter schools may 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 charter school in the county. The cost of juvenile probation officers who participate in the program implemented pursuant to this subsection shall be funded by the charter school.

AA. The sponsor of a charter school shall modify previously approved curriculum requirements for a charter school that wishes to participate in the board examination system prescribed in chapter 7, article 6 of this title.

BB. If a charter school decides not to participate in the board examination system prescribed in chapter 7, article 6 of this title, pupils enrolled at that charter school may earn a Grand Canyon diploma by obtaining a passing score on the same board examinations.

CC. Notwithstanding subsection Y of this section, a sponsor of charter schools may charge a new charter application processing fee to any applicant. The application fee shall fully cover the cost of application review and any needed technical assistance. Authorizers may approve policies that allow a portion of the fee to be returned to the applicant whose charter is approved.

DD. A charter school may choose to provide a preschool program for children with disabilities pursuant to section 15-771.

EE. Pursuant to the prescribed graduation requirements adopted by the state board of education, the governing body of a charter school operating a high school may approve a rigorous computer science course that would fulfill a mathematics course required for graduation from high school. The governing body may approve a rigorous computer science course only if the rigorous computer science course includes significant mathematics content and the governing body determines the high school where the rigorous computer science course is offered has sufficient capacity, infrastructure and qualified staff, including competent teachers of computer science.

FF. A charter school may allow the use of school property, including school buildings, grounds, buses and equipment, by any person, group or organization for any lawful purpose, including a recreational, educational, political, economic, artistic, moral, scientific, social, religious or other civic or governmental purpose. The charter school may charge a reasonable fee for the use of the school property.

GG. A charter school and its employees, including the governing body, or chief administrative officer, are immune from civil liability with respect to all decisions made and actions taken to allow the use of school property, unless the charter school or its employees are guilty of gross negligence or intentional misconduct. This subsection does not limit any other immunity provisions that are prescribed by law.

HH. Sponsors authorized pursuant to this section shall submit an annual report to the auditor general on or before October 1. The report shall include:

The current number of charters authorized and the number of schools operated by authorized charter holders.
The academic, operational and financial performance of the sponsor's charter portfolio as measured by the sponsor's adopted performance framework.
For the prior year, the number of new charters approved, the number of charter schools closed and the reason for the closure.
The sponsor's application, amendment, renewal and revocation processes, charter contract template and current performance framework as required by this section.

II. The auditor general shall prescribe the format for the annual report required by subsection HH of this section and may require that the annual report be submitted electronically. The auditor general shall review the submitted annual reports to ensure that the reports include the required items in subsection HH of this section and shall make the annual reports available on request. If the auditor general finds significant noncompliance or if a sponsor fails to submit the annual report required by subsection HH of this section, on or before December 31 of each year the auditor general shall report to the governor, the president of the senate, the speaker of the house of representatives and the chairs of the senate and house education committees or their successor committees, and the legislature shall consider revoking the sponsor's authority to sponsor charter schools.

JJ. Each charter representative, charter school governing body member and officer, director, member and partner of a charter holder, as allowed by the charter holder, may have:

Access to the charter school's students and student records.
Unrestricted access to the charter school's campuses.
Authority to make final decisions regarding student learning in the charter school.
Authority to make final decisions regarding the safety of the charter school's students and school campuses.

KK. For the purposes of this section:

"Charter representative" means an individual who both:

(a) Has the authority to execute contracts on behalf of the charter holder in accordance with the charter holder's articles of incorporation, operating agreement or bylaws.

(b) Represents the charter holder before the state board for charter schools in matters relating to accountability and compliance with federal, state and local laws and with the terms and conditions of the charter.

"Charter school governing body member" means an individual who is a member of a body organized to govern and manage a charter school.
"Officer, director, member or partner of a charter holder":

(a) Means an individual who has the authority to manage the operations and functions of a charter school or to make decisions on behalf of a charter holder.

(b) Includes:

(i) An individual who possesses an ownership interest or voting rights, or both, in the charter school.

(ii) An individual who is identified in any of sections 10-140, 10-801, 10-840, 10-3140, 10-3840, 29-301, 29-1001, 29-3102 and 29-4101.

§ 15-183.01 New charter application processing fund

The new charter application processing fund is established consisting of fees collected by the state board for charter schools. The state board for charter schools shall administer the fund. The state board for charter schools shall use monies in the fund only for the processing of applications submitted for new charters. Monies in the fund are continuously appropriated.

§ 15-184 Charter schools; admissions requirements; parental classroom visits

A. A charter school shall enroll all eligible pupils who submit a timely application, unless the number of applications exceeds the capacity of a program, class, grade level or building.

B. A charter school shall give enrollment preference to pupils who are returning to the charter school in the second or any subsequent year of its operation and to siblings of pupils who are already enrolled in the charter school.

C. A charter school may give enrollment preference to children who are in foster care or meet the definition of unaccompanied youth prescribed in the McKinney-Vento homeless assistance act (42 United States Code section 11434a).

D. A charter school may give enrollment preference to and reserve capacity for pupils who either:

Are children, grandchildren or legal wards of any of the following:

(a) Employees of the school.

(b) Employees of the charter holder.

(d) Directors, officers, partners or board members of the charter holder.

Attended another charter school or are the siblings of that pupil if the charter school previously attended by the pupil has the identical charter holder, board and governing board membership as the enrolling charter school or is managed by the same educational management organization, charter management organization or educational service provider as determined by the charter authorizer.
Are children of a member of the armed forces of the United States who either is on active duty or was killed in the line of duty.

E. If remaining capacity is insufficient to enroll all pupils who submit a timely application, the charter school shall select pupils through an equitable selection process such as a lottery except that preference shall be given to siblings of a pupil who is selected through an equitable selection process such as a lottery.

F. Except as provided in subsections A through D of this section, a charter school shall not limit admission based on ethnicity, national origin, gender, income level, disabling condition, proficiency in the English language or athletic ability.

G. A charter school may limit admission to pupils within a given age group or grade level.

H. A charter school may provide instruction to pupils of a single gender with the approval of the sponsor of the charter school. An existing charter school may amend its charter to provide instruction to pupils of a single gender and, if approved by the sponsor of the charter school, may provide instruction to pupils of a single gender at the beginning of the next school year.

I. A charter school may refuse to admit any pupil who has been expelled from another educational institution or who is in the process of being expelled from another educational institution.

J. A charter school governing body must develop and adopt in a public meeting policies to allow for visits, tours and observations of all classrooms by parents of enrolled pupils and parents who wish to enroll their children in the charter school unless a visit, tour or observation threatens the health and safety of pupils and staff. These policies and procedures must be easily accessible from the home page on each school's website.

§ 15-185 Charter schools; financing; civil penalties; transportation; definition

A. A school district is not financially responsible for any charter school that is sponsored by the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts.

B. Financial provisions for a charter school that is sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts are as follows:

The charter school shall calculate a base support level as prescribed in section 15-943, except that:

(a) Section 15-941 does not apply to these charter schools.

(b) The small school weights prescribed in section 15-943, paragraph 1 apply if a charter holder holds one charter for one or more school sites and the average daily membership for the school sites are combined for the calculation of the small school weight. The small school weight shall not be applied individually to a charter holder if one or more of the following conditions exist and the combined average daily membership derived from the following conditions is greater than six hundred:

(i) The organizational structure or management agreement of the charter holder requires the charter holder or charter school to contract with a specific management company.

(ii) The governing body of the charter holder has identical membership to another charter holder in this state.

(iii) The charter holder is a subsidiary of a corporation that has other subsidiaries that are charter holders in this state.

(iv) The charter holder holds more than one charter in this state.

(c) Notwithstanding subdivision (b) of this paragraph, for fiscal years 2015-2016 and 2016-2017, the department of education shall reduce by thirty-three percent the amount provided by the small school weight for charter schools prescribed in subdivision (b) of this paragraph.

Notwithstanding paragraph 1 of this subsection, the student count shall be determined initially using an estimated student count based on actual registration of pupils before the beginning of the school year. Notwithstanding section 15-1042, subsection F, student level data submitted to the department may be used to determine estimated student counts. After the first forty days, one hundred days or two hundred days in session, as applicable, the charter school shall revise the student count to be equal to the actual average daily membership, as defined in section 15-901, of the charter school. Before the fortieth day, one hundredth day or two hundredth day in session, as applicable, the state board of education, the state board for charter schools, the sponsoring university, the sponsoring community college district or the sponsoring group of community college districts may require a charter school to report periodically regarding pupil enrollment and attendance, and the department of education may revise its computation of equalization assistance based on the report. A charter school shall revise its student count, base support level and charter additional assistance before May 15. A charter school that overestimated its student count shall revise its budget before May 15. A charter school that underestimated its student count may revise its budget before May 15.
A charter school may use section 15-855 for the purposes of this section. The charter school and the department of education shall prescribe procedures for determining average daily membership.
Equalization assistance for the charter school shall be determined by adding the amount of the base support level and charter additional assistance. The amount of the charter additional assistance is $2,131.90 per student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and $2,484.69 per student count in grades nine through twelve.
The state board of education shall apportion state aid from the appropriations made for such purposes to the state treasurer for disbursement to the charter schools in each county in an amount as determined by this paragraph. The apportionments shall be made as prescribed in section 15-973, subsection B.
The charter school shall not charge tuition for pupils who reside in this state, levy taxes or issue bonds. A charter school may admit pupils who are not residents of this state and shall charge tuition for those pupils in the same manner prescribed in section 15-823.
Not later than noon on the day preceding each apportionment date established pursuant to paragraph 5 of this subsection, the superintendent of public instruction shall furnish to the state treasurer an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the charter schools for the amount apportioned.

C. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the sum of the daily membership, which includes enrollment as prescribed in section 15-901, subsection A, paragraph 1, subdivisions (a) and (b) and daily attendance as prescribed in section 15-901, subsection A, paragraph 5, for that pupil in the school district and the charter school shall not exceed 1.0. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the department of education shall direct the average daily membership to the school with the most recent enrollment date. On validation of actual enrollment in both a charter school and a public school that is not a charter school and if the sum of the daily membership or daily attendance for that pupil is greater than 1.0, the sum shall be reduced to 1.0 and shall be apportioned between the public school and the charter school based on the percentage of total time that the pupil is enrolled or in attendance in the public school and the charter school. The uniform system of financial records shall include guidelines to apportion the pupil enrollment and attendance as provided in this section.

D. Charter schools are allowed to accept grants and gifts to supplement their state funding, but it is not the intent of the charter school law to require taxpayers to pay twice to educate the same pupils. The base support level for a charter school or for a school district sponsoring a charter school shall be reduced by an amount equal to the total amount of monies received by a charter school from a federal or state agency if the federal or state monies are intended for the basic maintenance and operations of the school. The superintendent of public instruction shall estimate the amount of the reduction for the budget year and shall revise the reduction to reflect the actual amount before May 15 of the current year. If the reduction results in a negative amount, the negative amount shall be used in computing all budget limits and equalization assistance, except that:

Equalization assistance shall not be less than zero.
For a charter school sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts, the total of the base support level and the charter additional assistance shall not be less than zero.

E. If a charter school was a district public school in the prior year and sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts, the reduction in subsection D of this section applies. The reduction to the base support level of the charter school shall equal the sum of the base support level and the charter additional assistance received in the current year for those pupils who were enrolled in the traditional public school in the prior year and are now enrolled in the charter school in the current year.

F. Equalization assistance for charter schools shall be provided as a single amount based on average daily membership without categorical distinctions between maintenance and operations or capital.

G. At the request of a charter school, the county school superintendent of the county where the charter school is located may provide the same educational services to the charter school as prescribed in section 15-308, subsection A. The county school superintendent may charge a fee to recover costs for providing educational services to charter schools.

H. If the sponsor of the charter school determines at a public meeting that the charter school is not in compliance with federal law, with the laws of this state or with its charter, the sponsor of a charter school may submit a request to the department of education to withhold up to ten percent of the monthly apportionment of state aid that would otherwise be due the charter school. The department shall adjust the charter school's apportionment accordingly. The sponsor shall provide written notice to the charter school at least seventy-two hours before the meeting and shall allow the charter school to respond to the allegations of noncompliance at the meeting before the sponsor makes a final determination to notify the department of education of noncompliance. The charter school shall submit a corrective action plan to the sponsor on a date specified by the sponsor at the meeting. The corrective action plan shall be designed to correct deficiencies at the charter school and to ensure that the charter school promptly returns to compliance. When the sponsor determines that the charter school is in compliance, the department shall restore the full amount of state aid payments to the charter school.

I. In addition to the withholding of state aid payments pursuant to subsection H of this section, the sponsor of a charter school may impose a civil penalty of $1,000 per occurrence if a charter school fails to comply with the fingerprinting requirements prescribed in section 15-183, subsection C or section 15-512. The sponsor of a charter school shall not impose a civil penalty if it is the first time the charter school is out of compliance with the fingerprinting requirements and if the charter school provides proof within forty-eight hours after written notification that an application for the appropriate fingerprint check has been received by the department of public safety. The sponsor of the charter school shall obtain proof that the charter school has been notified, and the notification shall identify the date of the deadline and shall be signed by both parties. The sponsor of a charter school shall automatically impose a civil penalty of $1,000 per occurrence if the sponsor determines that the charter school subsequently violates the fingerprinting requirements. Civil penalties pursuant to this subsection shall be assessed by requesting the department of education to reduce the amount of state aid that the charter school would otherwise receive by an amount equal to the civil penalty. The amount of state aid withheld shall revert to the state general fund at the end of the fiscal year.

J. A charter school may receive and spend monies distributed by the department of education pursuant to section 42-5029, subsection E, section 42-5029.02, subsection A and section 37-521, subsection B.

K. If a school district transports or contracts to transport pupils to the Arizona state schools for the deaf and the blind during any fiscal year, the school district may transport or contract with a charter school to transport sensory impaired pupils during that same fiscal year to a charter school if requested by the parent of the pupil and if the distance from the pupil's place of actual residence within the school district to the charter school is less than the distance from the pupil's place of actual residence within the school district to the campus of the Arizona state schools for the deaf and the blind.

L. Notwithstanding any other law, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts shall not include any student in the student count of the university, community college district or group of community college districts for state funding purposes if that student is enrolled in and attending a charter school sponsored by the university, community college district or group of community college districts.

M. The governing body of a charter school shall transmit a copy of its proposed budget or the summary of the proposed budget and a notice of the public hearing to the department of education for posting on the department of education's website not later than ten days before the hearing and meeting. If the charter school maintains a website, the charter school governing body shall post on its website a copy of its proposed budget or the summary of the proposed budget and a notice of the public hearing.

N. The governing body of a charter school shall collaborate with the private organization that is approved by the state board of education pursuant to section 15-792.02 to provide approved board examination systems for the charter school.

O. If allowed by federal law, a charter school may opt out of federal grant opportunities if the charter holder or the appropriate governing body of the charter school determines that the federal requirements impose unduly burdensome reporting requirements.

P. For the purposes of this section, "monies intended for the basic maintenance and operations of the school" means monies intended to provide support for the educational program of the school, except that it does not include supplemental assistance for a specific purpose or title VIII of the elementary and secondary education act of 1965 monies. The auditor general shall determine which federal or state monies meet this definition.

§ 15-185.01 Charter school pupils attending career technical education districts; average daily membership calculation

Notwithstanding section 15-185, subsection C, if a pupil is enrolled in both a charter school and a career technical education district and resides within the boundaries of a school district participating in the career technical education district, the average daily membership for that pupil shall be calculated in the same manner prescribed for a pupil who is enrolled in both the member school district and a career technical education district pursuant to section 15-393.

§ 15-186 Pupil disciplinary procedures; notification

Each charter school governing body shall develop procedures that require the charter school to annually report to the department of education in a manner prescribed by the department the number of suspensions and expulsions that involve the possession, use or sale of an illegal substance under title 13, chapter 34 and the type of illegal substance involved in each suspension or expulsion. The department of education shall compile this information and annually post the information on its website. The information shall not include personally identifiable information, shall comply with the family educational rights and privacy act of 1974 (P.L. 93-380; 88 Stat. 57; 20 United States Code section 1232g) and shall show the number of suspensions and expulsions associated with each illegal substance aggregated statewide and by county.

§ 15-186.01 Parental notification; immunity

A. In addition to the notification requirements prescribed in section 15-186, each charter school governing body shall prescribe and enforce reasonable and appropriate policies to notify a pupil's parent or guardian if any person engages in harassing, threatening, or intimidating conduct against that pupil. A charter school and its officials and employees are immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this section, except in cases of gross negligence or wanton or wilful neglect.

B. A person commits threatening or intimidating if the person threatens or intimidates by word or conduct to cause physical injury to another person or serious damage to the property of another on school grounds. A person commits harassment if, with intent to harass or with knowledge that the person is harassing another person, the person anonymously or otherwise contacts, communicates or causes a communication with another person by verbal, electronic, mechanical, telephonic or written means in a manner that harasses on school grounds or substantially disrupts the school environment.

§ 15-187 Charter schools; teachers; employment benefits

A. A teacher who is employed by or teaching at a charter school and who was previously employed as a teacher at a school district shall not lose any right of certification, retirement or salary status or any other benefit provided by law, by the rules of the governing board of the school district or by the rules of the board of directors of the charter school due to teaching at a charter school on the teacher's return to the school district.

B. A teacher who is employed by or teaching at a charter school and who submits an employment application to the school district where the teacher was employed immediately before employment by or at a charter school shall be given employment preference by the school district if both of the following conditions are met:

The teacher submits an employment application to the school district not later than three years after ceasing employment with the school district.
A suitable position is available at the school district.

C. A charter school that is sponsored by a university, a community college district, a group of community college districts, the state board of education or the state board for charter schools is eligible to participate in the Arizona state retirement system pursuant to title 38, chapter 5, article 2. The charter school is a political subdivision of this state for purposes of title 38, chapter 5, articles 2 and 2.1.

D. Notwithstanding any other law, a charter school shall not adopt policies that provide employment retention priority for teachers based on tenure or seniority.

§ 15-187.01 Optional inclusion of charter school employees in state health and accident coverage; payment of premiums; advance notice; minimum period of participation; definition

A. If a governing body of a charter school determines that state health and accident insurance coverage is necessary or desirable and in the best interest of the charter school, it may provide for inclusion of the charter school's employees and spouses and dependents of the charter school's employees in state health and accident insurance coverage pursuant to section 38-651.

B. If the charter school elects to participate in the state health and accident insurance coverage, it shall be the only health and accident insurance coverage offered to charter school employees.

C. A charter school governing body that elects to include its employees in the state health and accident insurance coverage shall notify the department of administration of its intention to do so by January 15 of the calendar year prior to the school year starting after June 30 in which the charter school's employees would be eligible to receive state health and accident insurance coverage.

D. A charter school governing body that elects to include its employees in the state health and accident insurance coverage shall participate in state health and accident insurance coverage for at least two years.

E. Charter schools that opt to participate in the state health and accident insurance coverage shall agree to accept the benefit level, plan design, insurance providers, premium level and other terms and conditions determined by the department of administration and shall accept such other contractual arrangements made by the department of administration with health and accident insurance providers.

F. Charter schools shall reimburse the department of administration for administrative and operational costs associated with charter schools participating in the state health and accident insurance coverage determined pursuant to section 38-651, subsection K.

G. As used in this section, "state health and accident insurance coverage" means the health and accident coverage procured by the department of administration under section 38-651.

§ 15-188 Charter schools stimulus fund

A. The charter schools stimulus fund is established for the purpose of providing financial support to charter school applicants and charter schools for start-up costs and costs associated with renovating or remodeling existing buildings and structures. The fund consists of monies appropriated by the legislature and grants, gifts, devises and donations from any public or private source. The department of education shall administer the fund.

B. The state board of education shall adopt rules to implement the provisions of this section, including application and notification requirements. If sufficient monies are appropriated for this purpose, monies from the charter schools stimulus fund shall be distributed to qualifying charter school applicants and charter schools in the following manner:

Each qualifying charter school applicant or charter school shall be awarded an initial grant of up to one hundred thousand dollars during or before the first year of the charter school's operation. If an applicant for a charter school receives an initial grant pursuant to this paragraph and fails to begin operating a charter school within the next eighteen months, the applicant shall reimburse the department of education for the amount of the initial grant plus interest calculated at a rate of ten per cent a year.
Applicants for charter schools and charter schools that received initial grants pursuant to paragraph 1 may apply to the department of education for an additional grant of up to one hundred thousand dollars. If an applicant for a charter school receives an additional grant pursuant to this paragraph and fails to begin operating a charter school within the next eighteen months, the applicant shall reimburse the department of education for the amount of the additional grant plus interest calculated at a rate of ten per cent a year. A reimbursement required by this paragraph is in addition to any reimbursement required by paragraph 1.

C. Monies in the charter schools stimulus fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 15-189 Charter schools; total compensation statement

Each fiscal year, the governing body of a charter school shall provide to each charter school employee a total compensation statement that is broken down by category of benefit or payment and that includes, for that employee, at least all of the following:

Base salary and any additional pay.
Medical benefits and the value of any employer-paid portions of insurance plan premiums.
Retirement benefit plans, including social security.
Legally required benefits.
Any paid leave.
Any other payment made to or on behalf of the employee.
Any other benefit provided to the employee.

§ 15-189.01 Charter schools; zoning; development fees

A. Charter schools shall be classified the same as public schools that are operated by a school district for the purposes of zoning and the assessment of zoning fees, site plan fees and development fees, including any required hearings or applications. Municipalities and counties shall allow a charter school to be established and operate at a location or in a facility for which the zoning regulations of the county or municipality cannot legally prohibit schools operated by school districts, except that a county or municipality may adopt zoning regulations that prohibit a charter school from operating on property that is less than an acre in size and that is located within an existing single family residence zoning district.

B. Except as provided in subsection D of this section, a charter school is subject to the same level of oversight and the same rules, hearing requirements, application requirements, ordinances, limitations and other requirements, if any, that would be applied to and enforced against a school that is operated by a school district. A municipality or county shall not enforce, or attempt to enforce, any ordinance, procedure or process against a charter school that cannot be legally enforced against a school district. Voluntary compliance of a school district in the zoning regulations of a municipality or a county does not result in the application of those zoning regulations to a charter school.

C. The construction and development of the charter school facility shall be subject to the building codes, including life and safety building codes, of the municipality, county or state in which the charter school facility is located.

D. Municipalities and counties shall adopt procedures to ensure that hearings and administrative reviews involving charter schools are scheduled and conducted on an expedited basis and that charter schools receive a final determination from the municipality or county within thirty days after the beginning of processes requiring only an administrative review and within ninety days after the beginning of processes requiring a public hearing and allowing an appeal to a board of adjustment, city or town governing body or board of supervisors.

E. Except as provided in subsection F of this section, no political subdivision of this state may enact or interpret any law, rule or ordinance in a manner that conflicts with this section.

F. Notwithstanding subsections A and B of this section, a charter school shall not be established or operated on commercial or residential property in an age restricted community that is located in unorganized territory.

G. A charter school may authorize a third party to apply to a municipality or county as the representative of that charter school for any application or action prescribed in subsections A through D of this section.

§ 15-189.02 Charter schools; public bidding requirements

A. A charter school's procurement is exempt from public bidding requirements if the aggregate dollar amount of the procurement does not exceed the maximum amount of the exemption authorized by title 41, chapter 23 or pursuant to rules adopted by the director of the department of administration.

B. Notwithstanding subsection A, the state board for charter schools may authorize an exemption from public bidding requirements that exceeds the maximum exemption prescribed in subsection A of this section for any charter school sponsored by the state board for charter schools.

§ 15-189.03 Academic credits; transfer

A. If a pupil who was previously enrolled in a charter school or school district enrolls in a charter school in this state, the charter school shall accept credits earned by the pupil in courses or instructional programs at the charter school or school district. A charter school governing board may adopt a policy concerning the application of transfer credits for the purpose of determining whether a credit earned by a pupil who was previously enrolled in a school district or charter school will be assigned as an elective or core credit.

B. A pupil who transfers from a charter school or school district shall be provided with a list that indicates which credits have been accepted as an elective credit and which credits have been accepted as a core credit by the charter school. Within ten school days after receiving the list, a pupil may request to take an examination in each particular course in which core credit has been denied. The charter school shall accept the credit as a core credit for each particular course in which the pupil takes an examination and receives a passing score on a test designed and evaluated by a teacher in the charter school who teaches the subject matter on which the examination is based.

§ 15-189.04 Policies and procedures; emergency administration; epinephrine and inhalers

The governing body of each charter school shall prescribe and enforce policies and procedures for the emergency administration of epinephrine delivery systems by a trained employee of the charter school pursuant to section 15-157 and may prescribe and enforce policies and procedures for the emergency administration of inhalers by a trained employee of the charter school or a nurse who is under contract with the charter school pursuant to section 15-158.

§ 15-189.05 Charter school budgets; posting of teacher salary information; annual report

A. The budget for each charter school shall contain the following information:

The average salary of all teachers employed by the charter school for the current year.
The average salary of all teachers employed by the charter school for the previous year.
The dollar increase in the average salary of all teachers employed by the charter school for the current year.
The percentage increase in the average salary of all teachers employed by the charter school for the current year.

B. Each charter school shall prominently post the information required by subsection A of this section on its website home page separately from its budget.

C. On or before November 30 of each year, the department of education shall electronically submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that compiles the information required by subsection A of this section for all charter schools statewide.

§ 15-189.06 Charter schools; teacher performance evaluation systems; principal evaluation policies

A. Each charter school governing body shall establish a system to evaluate the performance of teachers in the charter school that results in at least one evaluation of each teacher by a qualified evaluator each school year. Each governing body shall establish a teacher performance evaluation system that meets all of the following criteria:

Is designed to improve teacher performance and student achievement.
Includes the use of quantitative data on the academic progress for all students, which shall account for between twenty percent and thirty-three percent of the evaluation outcomes.
Includes four performance classifications, designated as highly effective, effective, developing and ineffective.

B. Each charter school governing body shall adopt in a public meeting policies to implement for principal evaluations at the charter school. Before adopting principal evaluation policies, the governing body shall provide opportunities for public discussion on the proposed policies. For charter holders, the principal evaluation policies apply to each charter school's instructional leader whose primary responsibility is to oversee the academic performance of the charter school. This subsection does not apply to an officer, director, member or partner of the charter holder. Each governing body shall adopt principal evaluation policies that meet all of the following criteria:

Are designed to improve principal performance and student achievement.
Include the use of quantitative data on the academic progress for all students, which shall account for between twenty percent and thirty-three percent of the evaluation outcomes.
Include four performance classifications, designated as highly effective, effective, developing and ineffective.
Describe both of the following:

(a) The methods used to evaluate the performance of principals, including the data used to measure student performance and job effectiveness.

(b) The formula used to determine evaluation outcomes.

§ 15-189.07 Library collection; parental access; public review; exemption

A. Each charter school governing body shall do all of the following:

Beginning January 1, 2023, in consultation with parents, teachers and administrators, develop and adopt procedures by which parents have access to the charter school's library collection of available books and materials and may receive a list of books and materials borrowed from the library by their children.
Make available on the charter school's website for review by the public a list of all books and materials purchased after January 1, 2023 for any of the charter school's school libraries for a period of at least sixty days after the purchase. Each charter school site shall make available on the school's website for review by the public a list of all books and materials purchased after January 1, 2023 for the school library for a period of at least sixty days after the purchase. This paragraph does not apply to the purchase of a book or material that is intended to replace a lost or damaged book or material.
Ensure that each charter school site notifies the parents of each pupil enrolled at the charter school site of the opening and closing dates of the public review required under paragraph 2 of this section within seven school days before the opening date.

B. Charter school sites without a full-time library media specialist or an equivalent position are exempt from the requirements of this section and from any procedures adopted pursuant to this section.

Article 9 Family Literacy Program

§ 15-191 Definitions

In this article, unless the context otherwise requires:

"Eligible parent" means a parent who meets the following requirements:

(a) Has a three year old or four year old child.

(b) Lacks sufficient mastery of basic educational or basic English language skills needed to function effectively in society or lacks a high school diploma or its equivalent.

"Family literacy program" means a program that is established pursuant to this article and that is designed to promote the acquisition of language and literacy skills by parents and their preschool children in a shared instructional setting.

Chapter 2 State Governance of Schools

Article 1 State Board of Education

§ 15-201 State board of education; members; appointment; terms

A. The state board of education shall be composed of the superintendent of public instruction, the president of a state university or a state college, four lay members, a president or chancellor of a community college district, a person who is an owner or administrator of a charter school, a superintendent of a high school district, a classroom teacher and a county school superintendent. A member who is a president of a state university or a state college shall not succeed himself.

B. The governor shall appoint each member, other than the superintendent of public instruction, pursuant to section 38-211 for a term of four years beginning on the third Monday in January.

§ 15-202 Meetings; majority required for validation; travel expenses; immunity

A. The state board of education shall hold four regular meetings annually at times it directs. Special meetings may be held on the call of the presiding officer.

B. Concurrence of a majority of all members of the board is necessary for validation of an act of the board.

C. Members shall be allowed travel expenses and reimbursement for subsistence, as provided by title 38, chapter 4, article 2, to be paid on claims approved by the department of administration, as other claims against the state are paid, from the appropriation for the board authorized in the general appropriations bill.

D. Members of the board are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings with approval of a majority of all members of the board.

§ 15-203 Powers and duties; definition

A. The state board of education shall:

Exercise general supervision over and regulate the conduct of the public school system and adopt any rules and policies it deems necessary to accomplish this purpose.
Keep a record of its proceedings.
Make rules for its own government.
Determine the policy and work undertaken by it.
Subject to title 41, chapter 4, article 4, employ staff.
Prescribe and supervise the duties of its employees pursuant to title 41, chapter 4, article 4, if not otherwise prescribed by statute.
Delegate to the superintendent of public instruction the execution of board policies and rules.
Recommend to the legislature changes or additions to the statutes pertaining to schools.
Prepare, publish and distribute reports concerning the educational welfare of this state.
Prepare a budget for expenditures necessary for proper maintenance of the board and accomplishment of its purposes and present the budget to the legislature.
Aid in the enforcement of laws relating to schools.
Prescribe a minimum course of study in the common schools, minimum competency requirements for the promotion of pupils from the third grade and minimum course of study and competency requirements for the promotion of pupils from the eighth grade. The state board of education shall prepare a fiscal impact statement of any proposed changes to the minimum course of study or competency requirements and, on completion, shall send a copy to the director of the joint legislative budget committee and the director of the school facilities division within the department of administration. The state board of education shall not adopt any changes in the minimum course of study or competency requirements in effect on July 1, 1998 that will have a fiscal impact on school capital costs.
Prescribe minimum course of study and competency requirements for the graduation of pupils from high school. The state board of education shall prepare a fiscal impact statement of any proposed changes to the minimum course of study or competency requirements and, on completion, shall send a copy to the director of the joint legislative budget committee and the director of the school facilities division within the department of administration. The state board of education shall not adopt any changes in the minimum course of study or competency requirements in effect on July 1, 1998 that will have a fiscal impact on school capital costs.
Pursuant to section 15-501.01, supervise and control the certification of persons engaged in instructional work directly as any classroom, laboratory or other teacher or indirectly as a supervisory teacher, speech therapist, principal or superintendent in a school district, including school district preschool programs, or any other educational institution below the community college, college or university level, and prescribe rules for certification.
Adopt a list of approved tests for determining special education assistance to gifted pupils as defined in and as provided in chapter 7, article 4.1 of this title. The adopted tests shall provide separate scores for quantitative reasoning, verbal reasoning and nonverbal reasoning and shall be capable of providing reliable and valid scores at the highest ranges of the score distribution.
Adopt rules governing the methods for the administration of all proficiency examinations.
Adopt proficiency examinations for its use and determine the passing score for the proficiency examinations.
Include within its budget the cost of contracting for the purchase, distribution and scoring of the examinations as provided in paragraphs 16 and 17 of this subsection.
Supervise and control the qualifications of professional nonteaching school personnel and prescribe standards relating to qualifications. The standards shall not require the business manager of a school district to obtain certification from the state board of education.
Impose such disciplinary action, including disciplinary action pursuant to section 15-505 or the issuance of a letter of censure, suspension, suspension with conditions or revocation of a certificate, on a finding of immoral or unprofessional conduct.
Establish an assessment, data gathering and reporting system for pupil performance as prescribed in chapter 7, article 3 of this title, including qualifying examinations for the college credit by examination incentive program pursuant to section 15-249.06.
Adopt a rule to promote braille literacy pursuant to section 15-214.
Adopt rules prescribing procedures for the state board of education to investigate every written complaint alleging that a certificated person, a person seeking certification or a noncertificated person has engaged in immoral or unprofessional conduct.
For purposes of federal law, serve as the state board for vocational and technological education and meet at least four times each year solely to execute the powers and duties of the state board for vocational and technological education.
Develop and maintain a handbook for use in the schools of this state that provides guidance for the teaching of moral, civic and ethical education. The handbook shall promote existing curriculum frameworks and shall encourage school districts to recognize moral, civic and ethical values within instructional and programmatic educational development programs for the general purpose of instilling character and ethical principles in pupils in kindergarten programs and grades one through twelve.
Require pupils to recite the following passage from the declaration of independence for pupils in grades four through six at the commencement of the first class of the day in the schools, except that a pupil shall not be required to participate if the pupil or the pupil's parent or guardian objects:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. . . .

Adopt rules that provide for certification reciprocity pursuant to section 15-501.01.
Adopt rules that provide for the presentation of an honorary high school diploma to a person who has never obtained a high school diploma and who meets both of the following requirements:

(a) Currently resides in this state.

(b) Provides documented evidence from the department of veterans' services that the person enlisted in the armed forces of the United States and served in World War I, World War II, the Korean conflict or the Vietnam conflict.

Cooperate with the Arizona-Mexico commission in the governor's office and with researchers at universities in this state to collect data and conduct projects in the United States and Mexico on issues that are within the scope of the duties of the department of education and that relate to quality of life, trade and economic development in this state in a manner that will help the Arizona-Mexico commission to assess and enhance the economic competitiveness of this state and of the Arizona-Mexico region.
Adopt rules to define and provide guidance to schools as to the activities that would constitute immoral or unprofessional conduct of certificated and noncertificated persons.
Adopt guidelines to encourage pupils in grades nine, ten, eleven and twelve to volunteer for twenty hours of community service before graduation from high school. A school district that complies with the guidelines adopted pursuant to this paragraph is not liable for damages resulting from a pupil's participation in community service unless the school district is found to have demonstrated wanton or reckless disregard for the safety of the pupil and other participants in community service. For the purposes of this paragraph, "community service" may include service learning. The guidelines shall include the following:

(a) A list of the general categories in which community service may be performed.

(b) A description of the methods by which community service will be monitored.

(d) Orientation and notification procedures of community service opportunities for pupils entering grade nine, including the development of a notification form. The notification form shall be signed by the pupil and the pupil's parent or guardian, except that a pupil shall not be required to participate in community service if the parent or guardian notifies the principal of the pupil's school in writing that the parent or guardian does not wish the pupil to participate in community service.

(e) Procedures for a pupil in grade nine to prepare a written proposal that outlines the type of community service that the pupil would like to perform and the goals that the pupil hopes to achieve as a result of community service. The pupil's written proposal shall be reviewed by a faculty advisor, a guidance counselor or any other school employee who is designated as the community service program coordinator for that school. The pupil may alter the written proposal at any time before performing community service.

(f) Procedures for a faculty advisor, a guidance counselor or any other school employee who is designated as the community service program coordinator to evaluate and certify the completion of community service performed by pupils.

To facilitate the transfer of military personnel and their dependents to and from the public schools of this state, pursue, in cooperation with the Arizona board of regents, reciprocity agreements with other states concerning the transfer credits for military personnel and their dependents. A reciprocity agreement entered into pursuant to this paragraph shall:

(a) Address procedures for each of the following:

(i) Transferring student records.

(ii) Awarding credit for completed coursework.

(iii) Allowing a student to satisfy the graduation requirements prescribed in section 15-701.01 through the successful performance on comparable exit-level assessment instruments administered in another state.

(b) Include appropriate criteria developed by the state board of education and the Arizona board of regents.

Adopt guidelines that school district governing boards shall use in identifying pupils who are eligible for gifted programs and in providing gifted education programs and services. The state board of education shall adopt any other guidelines and rules that it deems necessary in order to carry out the purposes of chapter 7, article 4.1 of this title.
For each of the alternative textbook formats of human-voiced audio, large-print and braille, designate alternative media producers to adapt existing standard print textbooks or to provide specialized textbooks, or both, for pupils with disabilities in this state. Each alternative media producer shall be capable of producing alternative textbooks in all relevant subjects in at least one of the alternative textbook formats. The board shall post the designated list of alternative media producers on its website.
Adopt a list of approved professional development training providers for use by school districts as provided in section 15-107, subsection J. The professional development training providers shall meet the training curriculum requirements determined by the state board of education in at least the areas of school finance, governance, employment, staffing, inventory and human resources, internal controls and procurement.
Adopt rules to prohibit a person who violates the notification requirements prescribed in section 15-183, subsection C, paragraph 8 or section 15-550, subsection D from certification pursuant to this title until the person is no longer charged or is acquitted of any offenses listed in section 41-1758.03, subsection B. The state board shall also adopt rules to prohibit a person who violates the notification requirements, certification surrender requirements or fingerprint clearance card surrender requirements prescribed in section 15-183, subsection C, paragraph 9 or section 15-550, subsection E from certification pursuant to this title for at least ten years after the date of the violation.
Adopt rules for the alternative certification of teachers of nontraditional foreign languages that allow for the passing of a nationally accredited test to substitute for the education coursework required for certification.
Adopt rules to define competency-based educational pathways for college and career readiness that may be used by schools. The rules shall include the following components:

(a) The establishment of learning outcomes that will be expected for students in a particular subject, beginning with math.

(b) A mechanism to allow pupils in grades seven through twelve who have demonstrated competency in a subject to immediately obtain credit for the mastery of that subject. The rules shall include a list of applicable subjects.

In consultation with the department of health services, the department of education, medical professionals, school health professionals, school administrators and an organization that represents school nurses in this state, adopt rules that prescribe the following for school districts and charter schools:

(a) Annual training in the administration of epinephrine delivery systems for designated medical and nonmedical school personnel. The annual training prescribed in this subdivision is optional during any fiscal year in which a school does not stock epinephrine delivery systems at the school during that fiscal year.

(b) Annual training for all school site personnel on the recognition of anaphylactic shock symptoms and the procedures to follow when anaphylactic shock occurs, following the national guidelines of the American academy of pediatrics. The annual training prescribed in this subdivision is optional during any fiscal year in which a school does not stock epinephrine delivery systems at the school during that fiscal year.

(d) Procedures for annually requesting a standing order for epinephrine delivery systems pursuant to section 15-157 from the chief medical officer of the department of health services, the chief medical officer of a county health department, a doctor of medicine licensed pursuant to title 32, chapter 13, a doctor of naturopathic medicine licensed pursuant to title 32, chapter 14 or a doctor of osteopathic medicine licensed pursuant to title 32, chapter 17.

(e) Procedures for reporting the use of epinephrine delivery systems to the department of health services.

In consultation with the department of education, medical professionals, school health professionals, school administrators and an organization that represents school nurses in this state, adopt rules that prescribe the following for school districts and charter schools that elect to administer inhalers:

(a) Annual training in the recognition of respiratory distress symptoms and the procedures to follow when respiratory distress occurs, in accordance with good clinical practice, and the administration of inhalers, as directed on the prescription protocol, by designated medical and nonmedical school personnel.

(b) Requirements for school districts and charter schools that elect to administer inhalers to designate at least two employees at each school to be trained in the recognition of respiratory distress symptoms and the procedures to follow when respiratory distress occurs, in accordance with good clinical practice, and at least two employees at each school to be trained in the administration of inhalers, as directed on the prescription protocol.

(d) Procedures for annually requesting a standing order for inhalers and spacers or holding chambers pursuant to section 15-158 from the chief medical officer of a county health department, a physician licensed pursuant to title 32, chapter 13, 14 or 17 or a nurse practitioner licensed pursuant to title 32, chapter 15.

(e) Procedures for notifying a parent once an inhaler has been administered.

Adopt rules for certification that allow substitute teachers who can demonstrate primary teaching responsibility in a classroom as defined by the state board of education to use the time spent in that classroom toward the required capstone experience for standard teaching certification.
For the purposes of Sandra Day O'Connor civics celebration day instruction under section 15-710.01, develop a list of recommended resources relating to civics education that align with the academic standards prescribed by the state board of education in social studies pursuant to sections 15-701 and 15-701.01. The state board shall establish a process that allows public schools to recommend resources for addition to the list.
Direct and oversee the work of all investigators related to investigating certificated persons, persons seeking certification and noncertificated persons for immoral or unprofessional conduct under this title and rules adopted pursuant to this title. The investigators shall be housed within and are employees of the state board of education.
Establish best practices for social media and cellular telephone use between students and school personnel, including teachers, coaches and counselors, and encourage school district governing boards and charter school governing bodies to adopt policies that implement these best practices. The state board of education shall make these best practices available to both public and private schools.
For the purposes of 9/11 education day instruction under section 15-710.02, develop a list of recommended resources relating to age-appropriate education on the terrorist attacks of September 11, 2001 that align with the academic standards prescribed by the state board pursuant to sections 15-701 and 15-701.01. The state board shall establish a process that allows public schools to recommend resources for addition to the list.

B. The state board of education may:

Contract.
Sue and be sued.
Distribute and score the tests prescribed in chapter 7, article 3 of this title.
Provide for an advisory committee or hearing officers to conduct hearings and screenings to determine whether grounds exist to impose disciplinary action against a certificated person, whether grounds exist to reinstate a revoked or surrendered certificate, whether grounds exist to approve or deny an initial application for certification or a request for renewal of a certificate and whether grounds exist to impose or lift disciplinary action against a noncertificated person. The board may delegate its responsibility to conduct hearings and screenings to its advisory committee or hearing officers. Hearings shall be conducted pursuant to title 41, chapter 6, article 6.
Proceed with the disposal of any complaint requesting disciplinary action against a noncertificated person after the board has imposed disciplinary action pursuant to section 15-505 or against a person holding a certificate as prescribed in subsection A, paragraph 14 of this section after the suspension or expiration of the certificate or surrender of the certificate by the holder.
Assess costs and reasonable attorney fees against a person who files a frivolous complaint or who files a complaint in bad faith. Costs assessed pursuant to this paragraph shall not exceed the expenses incurred by the state board of education in the investigation of the complaint.
Issue subpoenas to compel the attendance and testimony of witnesses and production of documents or any physical evidence in connection with an investigation or hearing of an allegation that a certificated person, a person seeking certification or a noncertificated person has engaged in immoral or unprofessional conduct. If a subpoena issued by the board is disobeyed, the board may petition the superior court to enforce the subpoena. Any failure to obey an order of the court pursuant to this paragraph may be punished by the court as contempt.

C. For the purposes of this section, "noncertificated person" has the same meaning prescribed in section 15-505.

§ 15-204 Acceptance of gifts and grants; gifts and grants fund; use; unexpended monies

A. The state board of education may accept gifts or grants of monies or real or personal property from public and private organizations, if the purpose of the gift or grant specified by the donor is approved by the board and is within the scope of the board's powers and duties. There is established a fund for the placement of such monies which shall be designated as the gift and grant fund.

B. Any such monies received by the state board shall be placed in the appropriate gift and grant fund and expended for the purpose specified by the donor.

C. If all or part of the monies accepted by the board from a donor are not expended prior to the end of the fiscal year in which the gift or grant was accepted, the balance of the amount donated shall remain in the gift or grant fund until needed for the purpose specified by the donor.

§ 15-205 Education of Indians in state schools; contracts with department of interior

A. The state board of education may enter into contracts with the department of the interior for the welfare and education of Indians in schools of this state, in accordance with the act of Congress approved April 16, 1934, as amended by the act of June 4, 1936. The board shall administer the expenditure of federal funds provided under such contracts.

B. No contract as provided for in subsection A shall be binding on the school district affected until it is approved by the district governing board.

§ 15-206 Federal grants for educational purposes; administration

A. The state board of education may accept on behalf of this state from any federal agency monies which have been appropriated by act of Congress for defense in education, reduction of illiteracy, teaching of immigrants, employment and training, educational support services or other educational purpose.

B. The state board of education shall not reserve funds for state use in excess of actual cost not to exceed ten per cent of the grants to this state for provision to school district governing boards under the elementary and secondary education act of 1965, as amended (20 United States Code sections 2911 through 2952 and 2971 through 2976).

C. The state board of education, following regular educational fiscal procedure for counties, shall be the chief educational authority for administration and supervision of the expenditure of federal appropriations described in subsection A, and the state treasurer shall be trustee thereof.

§ 15-207 Apportionment and expenditure of federal grants for educational purposes

A. The state board of education shall apportion the monies described in section 15-206 for the aid of the school districts of this state to supplement monies otherwise provided therefor.

B. Monies so apportioned shall be expended by the school districts for the purposes and in the manner set forth in the federal grant. In the absence of federal regulation the state board of education shall determine the purposes and methods of expenditure in accordance with section 15-206. The state board of education may, with the approval of the board of supervisors, authorize expenditure of monies received pursuant to section 15-206 in excess of the annual budgets of school districts.

§ 15-208 Application by school district for apportionment of federal monies; hearing

A. A school district which, by reason of an emergency, finds it necessary to expend monies in excess of its annual budget for any purpose set forth in section 15-206 may apply to the state board of education for an apportionment from federal funds available under section 15-207.

B. The board shall conduct a hearing and an investigation concerning the application. If the hearing and investigation disclose that the district needs additional funds for the proper conduct of its school, the board may, in its discretion, apportion such monies as it deems necessary to the district.

§ 15-209 Disbursement of apportioned federal funds

If monies are apportioned to a school district pursuant to section 15-207, the state board of education shall direct the department of administration division of finance to draw a warrant for the amount apportioned, and the state treasurer shall pay the warrant upon presentation, as provided by law. The school district shall immediately deposit the monies with the county treasurer of the county in which the district is located, and the treasurer shall place it in the appropriate fund to the credit of the district. Thereafter the monies shall be disbursed by the county treasurer only on the voucher of the school district and the warrant of the county school superintendent.

§ 15-210 Unlawful expenditure of federal monies

If a school district expends or attempts to expend monies received pursuant to section 15-207 in a manner other than as directed by the state board of education or as provided by the federal grant, the state board of education shall immediately deliver to the county treasurer of the county in which such district is located written notice directing him to refuse to pay further warrants drawn against monies so provided in the fund prescribed in section 15-209. Copies of the notice shall be served upon the governing board of the school district and the county school superintendent. No further expenditures shall be made by the school district from such monies, and no further monies shall be apportioned or paid to the district until it has complied with the federal regulations and directions of the state board of education. Upon compliance to the satisfaction of the state board of education, the state board shall deliver written notice to the county treasurer and the county school superintendent and thereafter the monies may be expended as provided in section 15-206.

§ 15-211 K-3 reading program; dyslexia specialist; dyslexia training; receipt and use of monies; additional funding; annual report

A. The department of education shall administer a K-3 reading program to improve the reading proficiency of pupils in kindergarten programs and grades one, two and three in the public schools of this state.

B. The department of education shall designate a dyslexia specialist for the department to provide school districts and charter schools with support and resources that are necessary to assist students with dyslexia.

C. On or before July 1, 2022, each school district and charter school shall ensure that at least one kindergarten through third grade teacher, literacy coach or literacy specialist in each school has received training related to dyslexia that complies with the requirements prescribed in section 15-219.

D. Each school district and charter school shall submit to the department of education a plan for improving the reading proficiency of the school district's or the charter school's pupils in kindergarten programs and grades one, two and three. The plan shall include baseline data on the reading proficiency of the school district's or the charter school's pupils in kindergarten programs and grades one, two and three and a budget for spending monies from both the K-3 support level weight and the K-3 reading support level weight established in section 15-943. Each school district and charter school shall annually submit to the department of education on or before October 1 an updated K-3 reading program plan that includes data on program expenditures and results.

E. School districts and charter schools shall use monies generated by the K-3 reading support level weight established in section 15-943 only on instructional purposes based on the plan submitted pursuant to subsection D of this section intended to improve reading proficiency for pupils in kindergarten programs and grades one, two and three with particular emphasis on pupils in kindergarten programs and grades one and two.

F. Each school district and charter school that is assigned a letter grade of C, D or F pursuant to section 15-241 or that has more than ten percent of its pupils in grade three who do not demonstrate sufficient reading skills as established by the state board of education according to the reading portion of the statewide assessment shall receive monies generated by the K-3 reading support level weight established in section 15-943 only after the K-3 reading program plan of the school district or charter school has been submitted, reviewed and recommended for approval by the department of education and approved by the state board. The state board must give approval to a school district or charter school before any portion of the monies generated by the K-3 reading support level weight may be distributed to the school district or charter school pursuant to this subsection.

G. Pupils in a charter school that is in its first year of operation and that is sponsored by the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts are eligible for the K-3 reading support level weight.

H. The department of education shall solicit gifts, grants and donations from any lawful public or private source in order to provide additional funding for the K-3 reading program.

I. The state board of education may establish rules and policies for the K-3 reading program, including:

The proper use of monies in accordance with subsection E of this section.
The distribution of monies by the department of education in accordance with subsection D of this section.
The compliance of reading proficiency plans submitted pursuant to subsection D of this section with section 15-704.

J. Pursuant to subsection I of this section, the department of education shall develop program implementation guidance for school districts and charter schools to assist schools in administering an effective K-3 evidence-based reading program plan. This guidance shall include identifying and recommending appropriate program expenditures, providing technical oversight and assistance for annually updating reading program plans, selecting and adopting evidence-based reading curricula and providing and promoting teacher professional development that is based on evidence-based reading research. The department shall prioritize supports and interventions, including enrollment in reading trainings and professional development, for school districts and charter schools that have the highest percentage of pupils who do not demonstrate sufficient reading skills as established by the state board of education. The department shall deposit any monies received for offering reading trainings or professional development, including coaching, in the department of education professional development revolving fund established by section 15-237.01.

K. On or before December 15, the department of education shall submit an annual report on the K-3 reading program to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this annual report to the secretary of state, the state board of education and the chairpersons of the education committees of the senate and the house of representatives. The report shall contain all of the following:

Information on the improvement of K-3 reading in this state, including achievement data statewide and achievement data at the school district and charter school level. The information pursuant to this paragraph shall include data and information on continued proficiency on the statewide assessment in subsequent grades.
A description of the activities of the department to support school districts and charter schools in improving K-3 reading.
Specific findings on methods by which the department may continue to improve support and assistance for school districts and charter schools in the administration of K-3 reading program plans.
Information and data on K-3 reading program plans throughout this state and the expenditure of K-3 reading monies by school districts and charter schools.
Data reported pursuant to section 15-701, subsection A, paragraph 2, subdivision (d).

§ 15-212 Expenditure of private funds; exemption

A. Prior to expenditure of any monies granted to the state board of education by a private organization, the superintendent of public instruction shall present a plan governing the expenditure of such funds to the state board of education for approval.

B. Upon approval of the plan by the state board of education, the superintendent of public instruction may expend the private grants as provided in the plan.

C. Any funds granted to the state board of education as a private grant shall be exempt from the provisions of section 35-190, relating to lapsing of appropriations.

§ 15-213 Procurement practices of school districts and charter schools; violations; classification; definitions

A. The state board of education shall adopt rules prescribing procurement practices for all school districts in this state as follows:

The state board shall submit to the auditor general proposed rules consistent with the procurement practices prescribed in title 41, chapter 23, modifying the provisions for public notice of invitation for bids, requests for proposals and requests for qualifications to allow a governing board to give public notice of the invitation for bids, requests for proposals and requests for qualifications by publication in the official newspaper of the county as prescribed in section 11-255, modifying the provisions relating to disposal of materials to comply with section 15-342, paragraph 18, providing for governing board delegation of procurement authority and modifying as necessary other provisions that the state board determines are not appropriate for school districts. The rules shall include provisions specifying that school districts are not required to engage in competitive bidding in order to make the decision to participate in programs pursuant to section 15-382 and that a program authorized by section 15-382 is not required to engage in competitive bidding for the services necessary to administer the program or for purchase of insurance or reinsurance. The rules shall include provisions specifying that school districts are not required to engage in competitive bidding in order to place a pupil in a private school that provides special education services if such a placement is prescribed in the pupil's individualized education program and the private school has been approved by the department of education division of special education pursuant to section 15-765, subsection D. This placement is not subject to rules adopted by the state board of education before November 24, 2009 pursuant to this section. The rules for procurement of construction projects shall include provisions specifying that surety bonds furnished as bid security and performance and payment bonds shall be executed and furnished as required by title 34, chapter 2 or 6, as applicable. The rules shall specify the total cost of a procurement that is subject to invitations for bids, requests for proposals and requests for clarification, using the aggregate dollar amount limits for procurements prescribed in section 41-2535. The rules must follow the prompt payment requirements prescribed in sections 41-2576 and 41-2577 except for external funding that has not yet been received.
The state board of education shall adopt rules for procurements involving construction not exceeding $150,000, which shall be known as the simplified school construction procurement program. At a minimum, the rules for a simplified construction procurement program shall require that:

(a) Each county school superintendent maintain a list of persons who desire to receive solicitations to bid on construction projects to which additions shall be allowed throughout the year.

(b) The list of persons be available for public inspection.

(c) A performance bond and a payment bond as required by this section be provided for contracts for construction by contractors.

(d) All bids for construction be opened at a public opening and the bids shall remain confidential until the public opening.

(e) All persons desiring to submit bids be treated equitably and the information related to each project be available to all eligible persons.

(f) Competition for construction projects under the simplified school construction procurement program be encouraged to the maximum extent possible. At a minimum, a school district shall submit information on each project to all persons listed with the county school superintendent by any school district within that county.

(g) A provision, covenant, clause or understanding in, collateral to or affecting a construction contract that makes the contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the contract to be conducted in another state is against this state's public policy and is void and unenforceable.

The state board of education shall adopt rules for the procurement of goods and information services by school districts and charter schools using electronic, online bidding. The rules adopted by the state board shall include the use of reverse auctions and shall be consistent with the procurement practices prescribed in title 41, chapter 23, article 13, modifying as necessary those provisions and the rules adopted pursuant to that article that the state board determines are not appropriate for school districts and charter schools. Until the rules are adopted, school districts and charter schools may procure goods and information services pursuant to title 41, chapter 23, article 13 using the rules adopted by the department of administration in implementing that article.
The state board shall adopt rules for the procurement by school districts of any materials, services, goods, construction or construction services that ensure maximum practicable competition as prescribed in section 41-2565 and shall require that a person:

(a) That contracts for or purchases any materials, services, goods, construction or construction services in a manner contrary to the rules adopted by the state board pursuant to this section is personally liable for the recovery of all public monies paid plus twenty percent of that amount and legal interest from the date of payment and all costs and damages arising out of the violation as prescribed in section 41-2616.

(b) That intentionally or knowingly contracts for or purchases any materials, services, goods, construction or construction services pursuant to a scheme or artifice to avoid the rules adopted by the state board pursuant to this section is guilty of a class 4 felony as prescribed in section 41-2616.

(c) That prepares procurement specifications may not receive any direct or indirect benefit from using those specifications.

(d) That serves on a selection committee for a procurement may not be a contractor or subcontractor under a contract awarded under the procurement or provide any specified professional services, construction, construction services, materials or other services under the contract. A person that serves on a selection committee for a procurement and that fails to disclose contact with a representative of a competing vendor or fails to provide required accurate information is subject to a civil penalty as prescribed in section 41-2616.

The state board shall adopt rules requiring school districts to obtain and maintain a record of proof that a construction or construction services provider that has been awarded a contract with the school district, or school purchasing cooperative, has a valid license to practice in this state.
The auditor general shall review the proposed rules to determine whether the rules are consistent with the procurement practices prescribed in title 41, chapter 23 and any modifications are required to adapt the procedures for school districts.
If the auditor general approves the proposed rules, the auditor general shall notify the state board in writing and the state board shall adopt such rules.
If the auditor general objects to the proposed rules, the auditor general shall notify the state board of the objections in writing and the state board, in adopting the rules, shall conform the proposed rules to meet the objections of the auditor general or revise the proposed rules to which an objection has been made and submit the revisions to the auditor general for approval.

B. After the bids submitted in response to an invitation for bids are opened and the award is made or after the proposals or qualifications are submitted in response to a request for proposals or a request for qualifications and the award is made, the governing board shall make available for public inspection all information, all bids, proposals and qualifications submitted and all findings and other information considered in determining whose bid conforms to the invitation for bids and will be the most advantageous with respect to price, conformity to the specifications and other factors or whose proposal or qualifications are to be selected for the award, including the rationale for awarding a contract for any specified professional services, construction, construction services or materials to an entity selected from a qualified select bidders list or through a school purchasing cooperative. The invitation for bids, request for proposals or request for qualifications shall include a notice that all information and bids, proposals and qualifications submitted will be made available for public inspection. The rules adopted by the state board shall prohibit the use in connection with procurement of specifications in any way proprietary to one supplier unless the specification includes all of the following:

A statement of the reasons no other specification is practicable.
A description of the essential characteristics of the specified product.
A statement specifically allowing an acceptable alternative product to be supplied.

C. A project or purchase may not be divided or sequenced into separate projects or purchases in order to avoid the limits prescribed by the state board under subsection A of this section.

D. A contract for the procurement of construction or construction services shall include a provision that provides for negotiations between the school district and the contractor for the recovery of damages related to expenses incurred by the contractor for a delay for which the school district is responsible, that is unreasonable under the circumstances and that was not within the contemplation of the parties to the contract. This subsection does not void any provision in the contract that requires notice of delays, provides for arbitration or any other procedure for settlement or provides for liquidated damages.

E. The auditor general may conduct discretionary reviews, investigations and audits of the financial and operational procurement activities of school districts, nonexempt charter schools and school purchasing cooperatives. The auditor general has final review and approval authority over all school district, nonexempt charter school and school purchasing cooperative audit contracts and any audit reports issued in accordance with this section. If the attorney general has reasonable cause to believe an employee of a school district or school purchasing cooperative, or an employee of an entity that has been awarded a contract by a school district or school purchasing cooperative, has engaged in, is engaging in or is about to engage in any practice or transaction that violates the rules adopted by the state board of education pursuant to this section, the attorney general may:

Require that person to file on forms prescribed by the attorney general a statement or report in writing and under oath as to all the facts and circumstances concerning a violation of the rules adopted by the state board pursuant to this section by that person and any other data and information deemed necessary by the attorney general.
Examine under oath any person in connection with a violation of the rules adopted by the state board pursuant to this section.

F. In addition to the requirements of sections 15-914 and 15-914.01, school districts, nonexempt charter schools and school purchasing cooperatives, in connection with any audit conducted by a certified public accountant, shall contract for a systematic review of purchasing practices using methodology consistent with sampling guidelines established by the auditor general. The auditor general shall consider cost when establishing guidelines pursuant to this subsection and to the extent possible shall attempt to minimize the cost of the review. The purpose of the review is to determine whether the school district, nonexempt charter school or school purchasing cooperative is in compliance with the procurement laws and applicable procurement rules of this state. A copy of the review shall be submitted on completion to the auditor general. The auditor general may conduct discretionary reviews of school districts, nonexempt charter schools and school purchasing cooperatives that are not required to contract for independent audits.

G. A school district school employee who has control over personnel actions may not take reprisal against a school district school employee for that employee's disclosure of information that is a matter of public concern, including a violation of this section, to a public body pursuant to title 38, chapter 3, article 9.

H. The attorney general or county attorney has jurisdiction to enforce this section. The attorney general or county attorney may seek relief for any violation of this section through an appropriate civil or criminal action in superior court, including an action to enjoin a threatened or pending violation of this section and including an action to enforce compliance with any request for documents made by the auditor general pursuant to this section.

I. The department of education shall enact policies and procedures for the acceptance and disposition of complaints from the public regarding school procurement practices and shall forward all school procurement complaints to the attorney general. Notwithstanding rules adopted by the state board, school districts shall not be required to prepare or submit an annual report on the benefits associated with the use of construction-manager-at-risk, design-build, qualified select bidders list and job-order-contracting methods.

J. The state board of education shall adopt, and the auditor general shall review, rules authorizing school districts to procure construction services by construction-manager-at-risk, design-build, qualified select bidders list and job-order-contracting methods of project delivery. The rules shall not require school districts to obtain bid security for the construction-manager-at-risk method of project delivery.

K. A school district or charter school may evaluate United States general services administration contracts for materials and services. The governing board or governing body may authorize purchases under a current contract for materials or services without complying with the requirements of the procurement rules adopted by the state board of education if the governing board or governing body determines in writing that all of the following apply:

The price for materials or services is equal to or less than the contractor's current federal supply contract price with the general services administration.
The contractor has indicated in writing that the contractor is willing to extend the current federal supply contract pricing, terms and conditions to the school district or charter school.
The purchase order adequately identifies the federal supply contract on which the order is based.
The purchase contract is cost effective and is in the best interests of the school district or charter school.

L. Unless otherwise provided by law, multiterm contracts for materials or services and contracts for job-order-contracting construction services may be entered into if the duration of the contract and the conditions of renewal or extension, if any, are included in the invitation for bids or the request for proposals and if monies are available for the first fiscal period at the time the contract is executed. The duration of contracts for materials or services and contracts for job-order-contracting construction services are limited to not more than five years unless the governing board determines in writing before the procurement solicitation is issued that a contract of longer duration would be advantageous to the school district. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of monies.

M. Notwithstanding the rules adopted by the state board of education, the maximum dollar amount of an individual job order for job-order-contracting construction services is $1,000,000 or a higher or lower amount prescribed by the governing board in a policy adopted in a public meeting held pursuant to title 38, chapter 3, article 3.1. Requirements shall not be artificially divided or fragmented in order to constitute a job order that satisfies the requirements of this subsection.

N. A person who supervises or participates in contracts, purchases, payments, claims or other financial transactions, or a person who supervises or participates in the planning, recommending, selecting or contracting for materials, services, goods, construction, or construction services of a school district or school purchasing cooperative is guilty of a class 6 felony if the person solicits, accepts or agrees to accept any personal gift or benefit with a value of $300 or more from a person or vendor that has secured or has taken steps to secure a contract, purchase, payment, claim or financial transaction with the school district or school purchasing cooperative. Soliciting, accepting or agreeing to accept any personal gift or benefit with a value of less than $300 is a class 1 misdemeanor. A gift or benefit does not include an item of nominal value such as a greeting card, t-shirt, mug or pen.

O. Any person or vendor that has secured or has taken steps to secure a contract, purchase, payment, claim or financial transaction with a school district or school purchasing cooperative that offers, confers or agrees to confer any personal gift or benefit with a value of $300 or more on a person who supervises or participates in contracts, purchases, payments, claims or other financial transactions, or on a person who supervises or participates in planning, recommending, selecting or contracting for materials, services, goods, construction or construction services of a school district or school purchasing cooperative, is guilty of a class 6 felony. Offering, conferring or agreeing to confer any personal gift or benefit with a value of less than $300 is a class 1 misdemeanor. A gift or benefit does not include an item of nominal value such as a greeting card, t-shirt, mug or pen.

P. Any person or vendor convicted under subsection O of this section may be suspended for up to six months or barred for up to three years by the director of the department of administration from doing business with school districts and school purchasing cooperatives. The director of the department of administration shall adopt rules, including administrative procedures, to suspend or bar any person from consideration for award of contracts pursuant to this section.

Q. For the purposes of this section:

"Gift or benefit" means a payment, distribution, expenditure, advance, deposit or donation of monies, any intangible personal property or any kind of tangible personal or real property. Gift or benefit does not include either:

(a) Food or beverage.

(b) Expenses or sponsorships relating to a special event or function to which individuals listed in subsection N of this section are invited.

"Nonexempt charter school" means a charter school that is not exempted from procurement laws pursuant to section 15-183, subsection E, paragraph 6.
"School purchasing cooperative" means an entity that is engaged in cooperative purchasing as defined in section 41-2631.
"Total cost" means the cost of all materials and services, including the cost of labor performed by employees of the school district, for all construction as provided in subsection A of this section.

§ 15-213.01 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 within the department of administration and the department of administration.

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:

Changes in utility rates.
Changes in the number of days in the utility billing cycle.
Changes in the square footage of the facility.
Changes in the operational schedule of the facility.
Changes in facility temperature.
Significant changes in the weather.
Significant changes in the amount of equipment or lighting used in the facility.
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:

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.
Reimburse the school district for any shortfall of guaranteed energy cost savings on an annual basis.
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 the following information to the department of administration:

The name of the project.
The name of the qualified provider.
The total cost of the project.
The expected energy cost savings and relevant escalators.
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 $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. A school district may elect to use a shorter capital cost repayment schedule than required pursuant to this section.

R. For the purposes of this section:

"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.
"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.
"Energy cost savings" means one or both of the following:

(a) An estimated reduction in net fuel costs, energy costs, water costs, stormwater fees or other utility costs, or related net operating costs, including costs for anticipated equipment replacement and repair, from or as compared to an established baseline of those costs.

(b) An estimated revenue increase associated with additional facility use or the use of improved meters or other measuring devices due to improvements included in the guaranteed energy cost savings contract.

"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.

(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.

"Guaranteed energy cost savings contract" means a contract for implementing one or more energy cost savings measures.
"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.
"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.

§ 15-213.02 Program for school energy and water use efficiency programs; definitions

A. The program for school energy and water use efficiency is established within the department. The program is voluntary and is designed to facilitate cooperation between utility companies and schools to increase energy or water use efficiency and to reduce energy or water costs for schools. A school district or charter school that chooses to participate in the program shall contract with a utility company that provides retail electric, natural gas or water service to the school to finance energy or water savings at school district or charter school buildings. The utility company shall fund the energy or water savings measures and the school district or charter school shall repay the utility company investment by an energy or water charge on its utility bill equivalent to the energy or water saved by the energy savings measure.

B. School districts and charter schools that wish to participate in the program shall:

Negotiate an agreement with an eligible utility company. The agreement shall:

(a) Identify the energy or water savings measures that are proposed to be financed by the utility company.

(b) Identify the cost of the energy or water savings measures.

(c) Identify the energy or water savings that the measure is expected to achieve, determined by a reasonable research-based investigation.

(d) Provide that the utility company investment and a reasonable carrying charge that shall not exceed the interest rate prescribed pursuant to section 42-1123, subsection A, be repaid by payment at the utility company’s current price schedule of the amount of energy or water that is projected to be saved by the savings measures, as a separately defined component of the utility company’s monthly bill. The payment schedule may extend for up to twenty-five years, the effective life of the energy or water savings measures or the repayment period of the utility company’s investment plus reasonable carrying charge, whichever occurs first.

(e) Identify the approximate period for repayment of the utility company’s investment plus a reasonable carrying charge.

(f) Require that the utility company and the school district or charter school jointly revise the estimate of energy or water savings and the corresponding monthly payment annually based on actual experience.

(g) Provide that the school district or charter school shall receive the financial benefits of the energy or water savings measures after the repayment of the utility company’s investment and a reasonable carrying charge. The energy or water savings projects shall be cost effective over the effective life of the measures, and each project shall provide utility cost savings to the school district or charter school that exceed the total payments to the utility.

Request approval of the agreement from the department. The department shall determine whether the agreement meets the requirements of this section.

C. After approval of the agreement by the department, the school district or charter school may enter into the approved contract. A copy of each contract shall be provided to the department.

D. Payments to the utility company under the agreement shall be considered part of the school district or charter school’s maintenance and operations budget and shall not be paid with excess utilities monies levied pursuant to section 15-910. Procurement of energy saving measures shall be subject to the provisions of section 15-213. The procurement of energy savings measures shall not be subject to the provisions of section 15-213.01.

E. Nothing in this section shall impose an obligation on any utility company to invest monies or contract with any school district or charter school.

F. For purposes of this section:

"Eligible utility company" means an agricultural improvement district or public service company that provides retail electric or natural gas service or a utility providing water service.
"Energy or water savings measures" shall include capital improvements, maintenance, technical assistance or operational assistance designed to reduce energy consumption or to shift energy consumption to off peak periods or to reduce water use.

§ 15-213.03 Procurement practices; guaranteed energy production contracts; definitions

A. Notwithstanding section 15-213, subsection A, a school district may 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 within the department of administration and to the governor's office.

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:

Prepare a measurement and verification report on an annual basis in addition to an annual reconciliation of any guaranteed energy production shortfall.
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 and the division of school facilities within the department of administration:

The name of the project.
The name of the qualified provider.
The total cost of the project.
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 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:

"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.
"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.
"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.
"Energy production measure" means renewable and alternative energy projects or renewable energy power service agreements.
"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.
"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.
"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.
"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.
"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.

§ 15-214 Braille literacy; rules; requirements; definitions

A. The state board of education shall adopt rules to promote braille literacy that:

Ensure that each blind pupil receives an individualized braille literacy assessment and appropriate educational services resulting from the assessment, establish standards of proficiency and instruction, provide materials in a computer accessible format capable of braille reproduction and require that certified teachers of visually impaired pupils meet braille competencies as specified in this section.
Ensure that, in developing the individualized written education program for each blind pupil, the presumption is that proficiency in braille is essential for that pupil to achieve satisfactory educational progress. Braille instruction and use are not required by this section if, in the course of developing the pupil's individualized education program, all members of the team concur that the pupil's visual impairment does not affect reading and writing performance commensurate with ability. This section does not require the exclusive use of braille if other special education services are appropriate to the pupil's educational needs. The provision of other appropriate services does not preclude braille use or instruction.
Ensure that instruction in braille is sufficient to enable each blind pupil to communicate effectively and efficiently in all subject areas with the same level of proficiency expected of the pupil's peers of comparable ability and grade level. The pupil's individualized education program shall specify:

(a) The results of a braille assessment.

(b) The methods by which braille will be implemented.

(d) The length of the period of instruction and the frequency and duration of each instructional session.

(e) The level of competency in braille to be achieved by the end of the period of instruction and a description of the objective measures to be used to evaluate the pupil's level of competency.

(f) A list of the appropriate braille materials and equipment needed to allow the pupil to achieve the level of competency specified in the individualized education program.

(g) The rationale for not providing braille if braille is not determined to be an appropriate medium.

Ensure that the department of education requires all publishers of textbooks to furnish the department with electronic versions for literary and nonliterary subjects when electronic versions become available for nonliterary subjects, in a standard format approved by the department of education from which braille versions of the textbook can be produced.
Ensure that teachers who are certified in educating blind pupils and visually impaired pupils in this state are required to demonstrate competence in braille as measured by successfully completing either:

(a) A national certification in unified English braille examination.

(b) A comparable braille test developed in a university-level teacher preparation program.

B. For the purposes of this section:

"Blind pupil" means a pupil who meets one or more of the following conditions:

(a) Cannot successfully use vision as a primary and efficient channel for learning.

(b) Exhibits such a low degree or amount of visual acuity or visual field that vision is not considered as a primary mode of learning.

"Braille" means the unified English braille code.

§ 15-215 Petition process for regulatory exemptions; annual report

A. Notwithstanding any other law, if a school district or charter school has been assigned a letter grade of A pursuant to section 15-241 during at least two out of the last three consecutive years and has not been assigned a letter grade of C, D or F during the same three years and the school district or charter school does not have any schools under its control that have been assigned a letter grade of F pursuant to section 15-241 during the same three years, the school district or charter school may receive exemptions from statutes and rules as prescribed in this section.

B. If a school district or charter school qualifies for an exemption pursuant to subsection A of this section, the school district or charter school on approval of the charter school sponsor may identify and submit exemptions to statutes and rules relating to schools, charter schools, school district governing boards, charter school governing bodies and school districts to the state board of education for approval. The state board of education shall review and may approve the exemptions submitted by the school district or charter school, except for those statutes and rules that the state board of education determines directly apply to the following, as applicable:

Certification.
Health and safety.
State academic standards and assessments.
Requirements for the graduation of pupils from high school.
Special education.
Financial compliance and procurement requirements.
The school and school district accountability provisions of section 15-241.

C. The state board of education may make adjustments to the list of exemptions submitted by school districts and charter schools to comply with voter-approved mandates and federal law in the least restrictive manner allowed by law.

D. Exemptions previously issued by the state board of education pursuant to this section shall be immediately discontinued if a school district or charter school falls below the criteria prescribed in subsection A of this section.

E. The state board of education shall submit to the governor, the president of the senate and the speaker of the house of representatives on or before December 1 of each year a report that includes a list of the exemptions submitted by school districts and charter schools and a list of the exemptions that were denied by the state board. The state board shall provide a copy of this report to the secretary of state.

§ 15-217 Performance measures; adult education and workforce development programs

A. The state board of education, in cooperation with the office of economic opportunity, shall adopt performance measures to evaluate the performance of adult education and workforce development programs established by sections 15-217.01, 15-217.02 and 41-5421. The performance measures must include:

Measurements of adult learner progress toward earning a high school diploma or high school equivalency diploma.
The number of high school diplomas or high school equivalency diplomas earned.
The number of industry-recognized credentials earned.
The number of adult learners or graduates who have matriculated at an institution of higher learning or postsecondary educational institution.
The number of adult learners or graduates who have newly acquired employment, who are now earning higher wages or who have obtained a better job or a promotion.
Other relevant measures as adopted by the state board of education, in cooperation with the office of economic opportunity.

B. The performance measures adopted by the state board of education pursuant to this section must both:

Allow for a comparable evaluation across adult education and workforce development programs.
Consider the variety of learning levels of adult learners who are entering the programs.

§ 15-217.01 Community college adult education workforce development program; fund; program schools; annual reports

A. The community college adult education workforce development program is established within the department of education to provide adult learners with preparation for and access to integrated education and training as defined in the workforce innovation and opportunity act (P.L. 113-128; 128 Stat. 1425; 29 United States Code section 3272) and additional study and support services.

B. The department shall accept applications from program applicants beginning on July 1 and not later than June 30 of each year. The department shall determine whether each program applicant is eligible to participate in the program not later than six weeks after the department receives the program applicant's completed application. To be eligible to participate in the program, the program applicant must be a community college district that is established pursuant to section 15-1402, that provides high school diplomas or high school equivalency diplomas and that provides adult education and literacy activities that prepare adult learners for, or provide adult learners with access to, integrated education and training models, including workforce training, industry-recognized credentials, degree programs or workforce programs that are accredited by a regional accrediting body that is recognized by the United States department of education. If a program applicant is eligible pursuant to this subsection, the department shall distribute monies to the program applicant as prescribed in subsection D of this section.

C. A program school may receive monies pursuant to subsection D of this section for each adult learner who is a student in the program if the adult learner meets both of the following requirements:

Enrolls in a community college adult education program.
Pursues academic skills development related to adult education and literacy activities as defined in the workforce innovation and opportunity act.

D. The community college adult education workforce development program fund is established consisting of legislative appropriations and any other monies. The department shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department may use not more than five percent of the monies that are appropriated to the fund each year for the costs of administering the community college adult education workforce development program. Notwithstanding any other law, a program school shall be funded as follows:

The program school may receive up to $5,000 per full-time student in the program each fiscal year. Part-time students shall be funded in proportion to the number of enrolled courses or hours of instruction.
Each quarter, the department shall distribute fund monies to all program schools that meet the criteria prescribed in subsection B of this section in a proportional manner based on the number of adult learners each program school serves. The total amount distributed pursuant to this paragraph in any quarter may not exceed the sum of:

(a) One-fourth of the total amount that is allocated for program schools in the fiscal year.

(b) The amount of unspent monies, if any, that were allocated for program schools in a previous quarter.

E. A program school shall use monies received under this section to increase the program school's capacity to provide adult education and literacy activities that prepare adult learners for, or provide adult learners with access to, integrated education and training models that lead to industry-recognized training, industry-recognized credentials, a community college certificate or a community college degree. In addition to any monies received from the fund, a program school may accept and spend federal monies and private grants, gifts, contributions and devises to assist the program school in carrying out the purposes of this section. A portion of monies may be used for additional support services to ensure the success of adult learners in the program, including the following:

Transportation assistance for adult learners with a demonstrated need.
Child care services for dependents of adult learners while the adult learners are on-site.
College and career counseling.
Job placement assistance.

F. For each year that monies are appropriated by the legislature to the fund established by this section, on or before October 30, each participating community college shall submit a report regarding the community college adult education workforce development program to the department. The department shall compile the reports received from each participating community college and, on or before December 15 of each year, shall provide an annual report to the governor, the president of the senate, the speaker of the house of representatives and the state board of education and shall provide a copy of the report to the secretary of state. Each report must include, at a minimum, all of the following information for each participating community college for the preceding school year:

The number of adult learners enrolled in the program.
The completion rate of high school diplomas and high school equivalency diplomas earned by adult learners enrolled in the program.
The average progress of adult learners toward meeting completion criteria.
The number and type of industry-recognized credentials, community college certificates, community college degree credits and community college degrees earned by adult learners enrolled in the program.
A descriptive summary of the community college adult education workforce development program offered.
The number of adult learners who have newly acquired proficiency in the English language.
Information required for the performance measures adopted by the state board of education pursuant to section 15-217.

G. The department may request information from any program applicant or program school for the purposes of determining program eligibility and funding distributions pursuant to this section.

H. The department may develop a process to bring a program school into compliance or revoke the program school's authorization to participate in the program.

§ 15-217.02 Continuing high school and workforce training program; service providers; program schools; requirements; exemptions; reporting; enrollment limits; rules

A. The state board of education shall establish a continuing high school and workforce training program that provides adult learners with alternative study services and that leads to the issuance of a high school diploma and industry-recognized credentials. The department of education shall administer the program. The state board of education shall authorize eligible service providers to participate in the continuing high school and workforce training program and to establish a program school in partnership with a school district or nonprofit charter school.

B. To be eligible to participate in the continuing high school and workforce training program, a service provider must meet both of the following:

Be a nonprofit corporation that is qualified as tax-exempt pursuant to section 501(c)(3) of the internal revenue code or be an adult education provider that is approved by the division of adult education within the department of education.
Demonstrate at least a ten-year history of providing workforce training and career services in this state to persons who are at least eighteen years of age and whose educational and training opportunities have been limited by educational disadvantages, disabilities or other barriers to education, such as lack of reliable and affordable transportation, lack of child care or food insecurity.

C. A high school diploma may be issued pursuant to this section only to an adult learner who meets all the graduation requirements of section 15-701.01 and the state board of education.

D. A program school shall meet all applicable legal requirements prescribed in this title for a public school, including requirements for student assessments and special education services and prohibitions against admission limits based on ethnicity, national origin, gender, income level, disabling condition, English language proficiency or athletic ability unless one of the following applies:

Program schools established under this section are expressly exempt from the legal requirement.
The state board of education determines that the legal requirement is not feasible.
The state board of education determines that the legal requirement is not applicable to the education of adult learners.

E. The following provisions of this title do not apply to program schools established under this section:

The English language proficiency assessment requirements under sections 15-756 and 15-756.05.
The residency record requirement under section 15-802.
The withdrawal form requirements under section 15-827 for any adult learner who has not attended another school in this state during the two years immediately preceding the adult learner's enrollment in the program school.
The school records requirements under section 15-828.
The letter grades assigned under section 15-241.

F. Each program school shall:

Exercise the program school's best effort to obtain confirmation of each adult learner's withdrawal from another school in this state, including requesting a student transcript or receiving verbal confirmation from an official of the school from which the adult learner withdrew.
Require an adult learner who enrolls in the program school to provide both:

(a) Verifiable documentation of the adult learner's residency in this state.

(b) Reliable proof of the adult learner's age, which may include an identification record issued by a state, federal or tribal government or a military identification card.

Administer an English language proficiency assessment that is accepted by universities or community colleges in this state.

G. Notwithstanding any other law, the department of education shall distribute monies to an approved program school as follows:

The program school shall receive $7,700 per full-time student enrolled in the program school. Part-time students shall be funded in proportion to the number of enrolled courses or hours of instruction.
The program school is eligible to receive funding for any adult learner regardless of age.
The program school is not eligible for any other school finance formula funding for adult learners enrolled in the program school, including any of the following:

(a) Transportation funding pursuant to section 15-945.

(b) Arizona online instruction funding pursuant to section 15-808.

(d) Additional assistance.

H. The department of education shall develop application procedures for the continuing high school and workforce training program. The service provider shall submit the application on behalf of the program school. An application submitted pursuant to this section must include all of the following:

A description of the service provider's partnership with a school district or nonprofit charter school.
A description of the program school's administrative structure, program activities, program staff, budget and specific curriculum that is aligned with the state academic standards.
The program school's academic calendar and a schedule describing the program school's length of school day, program sequence, multidisciplinary courses, pace and instructional activities, or any combination of these items.
Confirmation of the program school's location and a description of the program school's facility, including all of the following:

(a) Accessibility.

(b) Available classroom space.

(d) Health and safety requirements.

A description of specific academic, behavioral and emotional support services the service provider will offer to adult learners who enroll in the program school.
A description of the adult learner and family supports that the program school will provide at no cost to adult learners, including all of the following:

(a) On-site child care for dependents of enrolled adult learners while the adult learner is on-site.

(b) Local transportation assistance for adult learners with a verifiable need.

(d) Job placement assistance.

A description of the available counseling services that assist adult learners in overcoming barriers to educational success, including any of the following:

(a) Educational disadvantages.

(b) Homelessness.

(d) Disabling conditions.

A description of the career technical education instruction the program school will provide. Career technical education instruction and courses must lead to industry-recognized credentials or result in an adult learner earning course credits from a university or community college. A service provider may partner with a community college district or career technical education district to provide career technical education instruction.
A description of specific program outcomes, goals and metrics the program school will use to determine adult learner success.
The projected number of adult learners the program school will enroll.

I. The state board of education, in consultation with the department of education, shall evaluate applications submitted for the continuing high school and workforce training program and approve program schools that demonstrate, through evidence or other documentation, the ability to provide adult learners with the instruction and support that lead to a high school diploma and one or more industry-recognized credentials. The following apply to approval of a program school's participation in the continuing high school and workforce training program:

Initial approval shall be for a period of not more than two school years.
Renewal of approval shall be for a period of not more than four school years and is contingent on specific performance expectations, including student progression, graduation rates and earning of industry-recognized credentials.
If an approved service provider fails to meet any requirements of this section or any rules adopted by the state board, the state board shall immediately initiate a process to bring the program school into compliance or to revoke the program school's authorization to participate in the continuing high school and workforce training program.

J. An approved program school participating in the continuing high school and workforce training program shall annually report the following information to the department of education:

The number of adult learners enrolled in the program school.
The graduation rate of adult learners enrolled in the program school.
The average progress of adult learners toward meeting graduation requirements, including the average of each of the following:

(a) The amount of time that an adult learner participates in the program.

(b) The number of course credits earned by an adult learner.

The number and type of industry-recognized credentials earned by adult learners enrolled in the program school.
The number of adult learners who have newly acquired proficiency in the English language, as demonstrated by an assessment administered pursuant to subsection F, paragraph 3 of this section.
A descriptive summary of the academic, behavioral and emotional support services the service provider offers to adult learners in the program school.
The information required by the performance measures adopted by the state board of education pursuant to section 15-217.

K. On or before October 30, 2025 and each year thereafter, each program school shall submit a report regarding the continuing high school and workforce training program to the department of education.

L. On or before December 15, 2025 and each year thereafter, the department of education shall submit an annual report evaluating the effectiveness of the continuing high school and workforce training program to the governor, the president of the senate, the speaker of the house of representatives and the state board of education. The department shall provide a copy of the report to the secretary of state.

M. The state board of education may approve program schools with a total projected full-time enrollment of:

In fiscal year 2025-2026, not more than one hundred thirty.
Beginning in fiscal year 2026-2027, zero.

N. If the total full-time enrollment requested by approved program schools is greater than the amounts prescribed in subsection M of this section, the state board of education may direct the department of education to prioritize funding distribution to program schools demonstrating the highest performance. New program schools shall be prioritized based on the services and supports for adult learners as outlined in their applications.

O. A program school may not either:

Conduct advertising or marketing campaigns directed at students who are currently enrolled in a school district or charter school, or undertake any other activity that encourages students who are currently enrolled in a school district or charter school to stop attending school in order to enroll in a program school.
Enroll a student who was enrolled in a school district or charter school within the preceding thirty days.

P. The state board of education may adopt rules to carry out the purposes of this section.

Q. The department of education shall provide adequate staff support for the state board of education to comply with this section.

§ 15-218 Suicide awareness and prevention training; child abuse and sexual abuse prevention and training; continuing education

A. The state board of education shall adopt rules to allow certificated teachers and administrators to count suicide awareness and prevention training programs as continuing education credits.

B. The state board of education shall adopt rules to allow certificated teachers and administrators to count awareness and prevention training on issues concerning child abuse and the sexual abuse of children, including warning signs that a child may be a victim of child abuse or sexual abuse, as continuing education credits.

C. Any rules regarding continuing education credits adopted by the state board of education pursuant to this section shall include a reasonable limit of credits that may count towards certification renewal requirements.

§ 15-219 Dyslexia and reading impairment screening, intervention, accommodation and technology; continuing education; rules; training

A. The state board of education shall adopt rules to allow certificated teachers, literacy coaches, literacy specialists and administrators to count training regarding screening, intervention, accommodation, use of technology and advocacy for students with reading impairments, including dyslexia, as continuing education credits.

B. The department of education shall annually develop a list of training opportunities related to dyslexia that satisfy the requirements prescribed in subsection C of this section.

C. The training opportunities related to dyslexia developed pursuant to this section must meet professional development requirements and all of the following requirements:

Include at least one training opportunity that is provided entirely online.
Include the knowledge and practice standards of an international organization on dyslexia that is designated by the department of education.
Enable teachers, literacy coaches, literacy specialists and administrators to understand and recognize dyslexia.
Enable teachers, literacy coaches, literacy specialists and administrators to implement structured literacy instruction that is systematic, explicit, multisensory and evidence-based to meet the educational needs of students with dyslexia.

Article 2 Department of Education

§ 15-231 Department of education

A. There is created a department of education.

B. The department shall be administered through:

The state board of education, which shall be the policy-determining body of the department.
The superintendent of public instruction, in whom all executive, administrative and ministerial functions of the department are vested and who is the executive officer responsible for the execution of policies of the state board of education.

C. In addition to any divisions established by law, the superintendent of public instruction may establish such divisions as in the judgment of the superintendent of public instruction are necessary for the proper transaction of the business of the department.

D. The department shall be conducted under the control of the superintendent of public instruction.

§ 15-231.03 School safety survey report

On or before September 15, 2007, and every four years thereafter, the department of education shall conduct a random survey of school districts on school safety and submit a written report that summarizes the results to the governor, the president of the senate and the speaker of the house of representatives and submit a copy of this report to the Arizona state library, archives and public records.

§ 15-231.04 Department of education intellectual property fund

The department of education intellectual property fund is established consisting of monies received pursuant to section 41-2752. The department shall administer the fund. Subject to legislative appropriation, the department shall use fund monies to improve the maintenance, administration and development of the education learning and accountability system established pursuant to section 15-249.

§ 15-232 Division of adult education; duties

(Caution: 1998 Prop. 105 applies)

A. There is established a division of adult education within the department of education, under the jurisdiction of the state board of education, which shall:

Prescribe a course of study for adult education in school districts.
Make available and supervise the program of adult education in other institutions and agencies of this state.
Adopt rules for the establishment and conduct of classes for immigrant and adult education, including the teaching of English to foreigners, in school districts.
Devise plans for establishment and maintenance of classes for immigrant and adult education, including the teaching of English to foreigners, stimulate and correlate the Americanization work of various agencies, including governmental, and perform such other duties as may be prescribed by the state board of education and the superintendent of public instruction.
Prescribe a course of study to provide training for adults to continue their basic education to the degree of passing an equivalency test approved by the state board of education.
Review, approve and monitor a fee structure that may be implemented by adult education providers to ensure they meet state and federal law and considers an individual's ability to pay. The approved fee structure shall include a sliding scale fee schedule, based on household income, that shall be assessed to each individual participating in any program offered by the adult education provider.

B. The department of education shall provide classes under this section only to adults who are citizens or legal residents of the United States or are otherwise lawfully present in the United States. This subsection shall be enforced without regard to race, religion, gender, ethnicity or national origin.

C. The department of education shall report on December 31 and June 30 of each year to the joint legislative budget committee the total number of adults who applied for instruction and the total number of adults who were denied instruction under this section because the applicant was not a citizen or legal resident of the United States or was not otherwise lawfully present in the United States.

§ 15-233 Night schools for teaching English

The governing board of a school district in which there are fifteen or more persons over sixteen years of age who either do not read and write or speak the English language who desire to attend a night school may establish a night school for teaching the English language, American ideals and an understanding of American institutions.

§ 15-234 Appropriations for adult education; eligibility; supplemental fees; definition

A. Any appropriation made to the state board of education or department of education for the purposes of adult education may be expended for costs to the department of activities related to adult education including the costs of operating the division of adult education. In addition, any of the monies may be allocated to an adult education provider as provided in subsections B and C of this section.

B. An adult education provider which offers a course of study for adult education under section 15-232 is eligible for allocation of funds pursuant to subsection C of this section from the state board of education if the district or county offering such course meets all applicable standards established under rules of the state board.

C. The state board of education may allocate from its available appropriation for adult education any amount it deems appropriate for the use of an eligible adult education provider to compensate for costs of conducting the course of study of adult education based on an application which shall include a budget and other criteria as established by the state board of education. This application must be approved by the state board of education prior to the commencement of classes or courses of study if the applicant wishes to be compensated. Compensation shall be limited to the approved amount in the application.

D. An adult education provider that offers a course of study for adult education pursuant to section 15-232 may charge supplemental fees to adults who are eligible to participate in the adult education program. Any supplemental fees charged for adult education programs shall be approved by the department of education prior to the imposition of the fees. Adult education providers shall conspicuously post information on the supplemental fee structure and shall provide advance written notice to all program participants of any changes to the approved fee structure at least ninety days prior to taking effect. Any supplemental fees collected pursuant to this subsection shall only be used to support and expand adult education instruction not to supplant existing state and federal funding. The department of corrections shall not charge supplemental fees pursuant to this subsection.

E. For the purposes of this section, "adult education provider" means a school district, community college district, correctional facility or community-based organization, an institution serving educationally disadvantaged adults, or any other institution that receives public funds to provide adult education services.

§ 15-235 Division of special education; director; duties; qualifications; advisory committee; members

A. A division of special education is established to carry out this section, section 15-236 and chapter 7, article 4 of this title subject to the superintendent of public instruction.

B. There shall be at least one director of the division of special education.

C. The director or directors shall carry out this section, section 15-236 and chapter 7, article 4 of this title and the duties prescribed by the state board of education relating to the administration of this section, section 15-236 and chapter 7, article 4 of this title.

D. The division of special education may review special education programs, including placement of pupils, to determine that program, evaluation and placement procedures comply with sections 15-766 and 15-767 and the rules approved by the state board of education.

E. Only a person who is experienced in special education is eligible for appointment as a director of the division of special education.

F. A special education advisory committee is established that shall advise and consult with the state board of education, the superintendent of public instruction and the director or directors of the division of special education and that shall engage in other activities as are provided in this section. The advisory committee shall be composed pursuant to the requirements of 20 United States Code section 1412(A)(21)(b) and (c). The state board of education shall appoint the members of the advisory committee for staggered three year terms. Vacancies shall be filled for the unexpired term in the same manner as original appointments.

G. The advisory committee shall have a minimum of two meetings a year.

H. The advisory committee annually shall elect its own chairman and vice-chairman. The state board of education shall regularly submit, as part of its budget request, any item or items sufficient to cover expenses of the operation of the advisory committee, and of its members in connection with their attendance at meetings of the advisory committee and other advisory committee activities.

§ 15-236 Special education programs; program and fiscal audits

A. The department of education shall conduct program and fiscal audits of selected district special education programs. The audits shall be designed to determine the degree of compliance with existing statutes and regulations and the appropriate placement of students in special education programs. A report of the findings of such audits shall be completed on or before February 3 of each year. If the department of education determines that a child has been inappropriately placed in a special education program of a school district, the district's weighted student count for educational support services for students in group B as provided in section 15-943 shall be recomputed and the district's entitlement to state aid adjusted accordingly.

B. For each fiscal year the department of education shall request a separate line item appropriation for program and fiscal audits of special education programs in the budget estimate submitted pursuant to section 35-113.

§ 15-237 Publications; production revolving fund

A. The department of education may make available to the public at a reasonable cost publications produced by the department. Each separate production of a department publication shall contain a statement as to the number of copies produced, the total production cost and the cost of production per copy. Monies obtained by the sale of publications shall be deposited in the department's production revolving fund for producing further publications.

B. There is established a department of education production revolving fund for use for expenses incurred for producing and distributing publications of the department.

C. The department of education production revolving fund shall be established as a separate account on the books of the department of education.

D. Monies of the department of education production revolving fund shall not revert to the state general fund.

§ 15-237.01 Department of education professional development revolving fund; exemption

A. The department of education may make available to educators at a reasonable cost professional development content through the department. Monies obtained from tuition for professional development shall be deposited in the department's professional development revolving fund to be used to offset the cost of providing professional development content.

B. The department of education professional development revolving fund is established as a separate account on the books of the department for use for expenses incurred for producing and delivering professional development courses and content.

C. Monies in the department of education professional development revolving fund are subject to legislative appropriation and are exempt from the provisions of section 35-190, relating to the lapsing of appropriations.

§ 15-238 Statewide student estimate

Before February 15 of each year the department of education shall submit to the economic estimates commission the total estimated statewide number of students determined for the current year.

§ 15-239 School compliance and recognition; accreditation; audits

A. The department of education may:

Monitor school districts to ascertain that laws applying to the school districts are implemented as prescribed by law.
Adopt a system of recognition for school districts that meet or exceed the requirements of the law that apply to the school districts.
Establish standards and procedures for the accreditation of all schools requesting state accreditation.

B. The department of education may adopt guidelines necessary to implement this section.

C. The department of education may conduct financial, compliance or average daily membership audits of school districts and charter schools. Beginning in fiscal year 2011-2012 and in each fiscal year thereafter, the department of education shall include at least a ten per cent sample of daily attendance records as part of the average daily membership audits.

D. The auditor general may conduct financial, program, compliance or average daily membership audits of school districts and charter schools. Beginning in fiscal year 2011-2012 and in each fiscal year thereafter, the auditor general shall include at least a ten per cent sample of daily attendance records as part of the average daily membership audits.

E. When conducting monitoring and audit activities allowed by this section, the department of education shall prescribe an audit window of up to three consecutive fiscal years immediately preceding the current fiscal year at the time the monitoring or audit activity commences. If the department issues findings within twenty-four months after the beginning of audit or monitoring activities, the department may adjust funding to a school district or charter school if actions that took place within the audit window resulted in overpayment or underpayment of state aid to the school district or charter school or the miscalculation of the budget limit for the school district, or both. Notwithstanding section 15-901, subsection A, paragraph 1, subdivision (a), adjustments to average daily membership for failure to provide sufficient instructional time to meet the requirements for a full-time student pursuant to section 15-901, subsection A, paragraph 1, subdivision (b), may be made proportionately according to the percentage by which the instructional time provided does not meet the required number of instructional hours prescribed for that grade level. Adjustments to state aid and budget limits as prescribed by this subsection shall be made in accordance with section 15-915.

§ 15-240 High-quality teacher professional development program; annual report; definitions

A. The department of education shall establish a high-quality teacher professional development program and, subject to available appropriations, may issue scholarships or grants, or both, on a competitive basis as determined by the department, to qualified applicants in order to obtain high-quality teacher professional development from a qualifying postsecondary institution that will support certificated teachers in gaining additional credentials and certifications to teach in high-need content areas. Scholarships and grants issued pursuant to this subsection may not exceed $2,000 per qualified applicant. Any qualified applicant who receives a scholarship or grant pursuant to this subsection shall agree to teach in a public school in this state for at least three additional years after completing the coursework or program at a qualifying postsecondary institution. A qualified applicant who accepts a scholarship or grant pursuant to this subsection and who does not teach in a public school in this state for at least three additional years after completing the coursework or program at a qualifying postsecondary institution shall pay back the full amount of the scholarship or grant in a manner to be determined by the department. The department may retain up to three percent of the monies appropriated for the program to offset administrative costs.

B. On or before November 1 of each year, the department of education shall submit to the governor, the president of the senate and the speaker of the house of representatives a report that summarizes the results of the program. The department shall provide a copy of this report to the secretary of state.

C. For the purposes of this section:

"High-need content area" means any science, technology, engineering or mathematics or career and technical education content.
"Qualified applicant" means a teacher who is certificated in this state by the state board of education pursuant to section 15-203 and who is currently teaching in a public school in this state.
"Qualifying postsecondary institution" means a regionally or nationally accredited public or private postsecondary educational institution in this state.

§ 15-241 School, charter school and school district accountability; annual achievement profiles; classification; letter grade system; profiles; appeals process; failing schools tutoring fund; definition

A. On or before November 1 of each year, the department of education shall compile for each public school and local education agency, and shall recommend to the state board of education, an annual achievement profile that consists of an educational dashboard that reflects the achievement for each public school and local education agency on the academic and educational performance indicators prescribed in subsection D of this section, except that a career technical education district may not be assigned a letter grade pursuant to this section. The department shall provide any technical assistance needed by the state board to make final adoption of the annual achievement profile.

B. Each school, charter holder and school district shall submit to the department of education any data that is required and requested and that is necessary to compile the achievement profile. A school or local education agency that fails to submit the information that is necessary is not eligible to receive monies from the classroom site fund established by section 15-977.

C. The annual achievement profile compiled by the department of education and recommended to the state board of education shall be used to determine a standard measurement of acceptable academic progress for each school and local education agency and a school and local education agency classification pursuant to subsection G of this section. Any disclosure of educational records compiled by the department pursuant to this section shall comply with the family educational rights and privacy act of 1974 (20 United States Code section 1232g).

D. The annual achievement profile for schools and local education agencies shall include, at a minimum, the following academic and educational performance indicators:

Multiple measures of academic performance or other academically relevant indicators of school quality that are appropriate to assess the educational impact of a school during the academic year as determined by the state board of education.
Academic progress on assessments adopted pursuant to sections 15-741 and 15-741.02 in English language arts and mathematics.
Academic progress on the English language learner assessments administered pursuant to section 15-756, subsection B and section 15-756.05.
Progress toward college and career readiness for all schools and local education agencies that offer instruction in any of grades nine through twelve.
Academic progress on assessments administered pursuant to section 15-741.02.
Multiple measures of educational performance or other relevant indicators of school quality that assess a school's educational impact, such as graduation rates and attendance rates.

E. If neither the school nor the school district meets the minimum student count as recommended by the department of education and approved by the state board of education for any of the performance indicators prescribed in subsection D of this section, the performance indicator shall not be factored into the letter grade assigned pursuant to this section.

F. Subject to final adoption by the state board of education, the department of education shall determine the criteria for each school and local education agency classification on each performance indicator of the annual achievement profile prescribed in subsection D of this section using a researched-based methodology and shall recommend to the state board for final adoption the criteria for each school and local education agency classification. The department shall develop the methodology in collaboration with a coalition of qualified technical and policy stakeholders appointed by the state board. The department shall provide technical assistance and, on request, student or statewide performance indicator data needed to determine and calculate the methodology and final letter grades. At a minimum, the methodology shall include the performance of pupils at all achievement levels, account for pupil mobility, account for the distribution of pupil achievement at each school and local education agency and include longitudinal indicators of academic performance. For the purposes of this subsection, "researched-based methodology" means the systematic and objective application of statistical and quantitative research principles to calculate the indicators used to determine A through F letter grades.

G. The annual achievement profile shall use classifications based on an A through F letter grade system adopted by the state board of education in which a letter grade of A reflects an excellent level of performance and a letter grade of F reflects a failing level of performance. The A through F letter grade system shall be applied to each performance indicator of the annual achievement profile prescribed in subsection D of this section, and the state board shall assign an overall letter grade for the public school or local education agency. The A through F letter grade system shall indicate expected standards of performance for all schools on each performance indicator of the annual achievement profile prescribed in subsection D of this section and the manner in which schools may rise above or fall below those expected standards of performance. The state board may also assign a school a letter grade of F on each performance indicator of the annual achievement profile prescribed in subsection D of this section if the state board determines that the school is among the persistently lowest-achieving schools in the state on the majority of the performance indicators of the annual achievement profile under the federal school accountability requirements pursuant to section 1003(g) of the elementary and secondary education act (20 United States Code section 6303).

H. The classification on each performance indicator of the annual achievement profile for each school and the criteria used to determine classification pursuant to subsections F and G of this section shall be included on the school report card prescribed in section 15-746.

I. Subject to final adoption by the state board of education, the department of education shall use achievement profiles appropriately to assess the educational impact of accommodation schools, alternative schools and extremely small schools, may develop profiles for schools that participate in the board examination system prescribed in chapter 7, article 6 of this title and schools that participate in Arizona online instruction pursuant to section 15-808 and may develop other exceptions as prescribed by the state board for the purposes of this section.

J. The department of education shall establish a process, including a deadline for when requests must be submitted, for a school or local education agency to correct student data used to determine the school's or local education agency's annual achievement profile. If a correction to student data is required, the department shall notify the school or local education agency of the data correction process and shall annually process student data correction requests. The state board of education shall establish an appeals process to allow a school or local education agency to appeal the school's or local education agency's final letter grade, or a letter grade applied to a performance indicator prescribed in subsection D of this section, based on mitigating factors, including achievement profile designations based on incorrect data, identified by the department.

K. The failing schools tutoring fund is established consisting of monies collected pursuant to section 42-5029, subsection E and section 42-5029.02, subsection A, paragraph 8 as designated for this purpose. The department of education shall administer the fund. The department may use monies from the fund to purchase materials designed to assist students to meet the Arizona academic standards and to achieve a passing score on assessments adopted by the state board of education.

L. For the purposes of this section, "academic progress" means measures of both proficiency and academic gain.

§ 15-241.01 School accountability; alternative operation plans

A. If a school district has six or more schools and at least one-half of the schools in the district are assigned a letter grade of D or F pursuant to this section and at least one school is assigned a letter grade of F, the department of education may submit to the state board of education a recommendation for a public hearing to determine if the school district should be subject to an alternative operation plan and the reasons for that recommendation. When considering whether to recommend a public hearing pursuant to this subsection, the department shall consider at least the following:

The likelihood that continued school-based interventions will be successful.
The extent to which the school district administrators and the school district governing board impacted the assignment of the letter grades of D and F to the district's schools.
Whether those schools assigned a letter grade of D or F have demonstrated reasonable academic growth as determined by the measure of academic progress established pursuant to this section.

B. If the department of education recommends a public hearing pursuant to subsection A of this section, the state board of education shall meet and may provide by a majority vote of the entire board for the development and implementation of an alternative operation plan as allowed by this section. When determining whether to place a school district under an alternative operation plan, the state board shall consider at least the following:

The likelihood that continued school-based interventions will be successful.
The extent to which the school district administrators and the school district governing board impacted the assignment of the letter grades D and F to the district's schools.
Whether those schools assigned a letter grade of D or F have demonstrated reasonable academic growth as determined by the measure of academic progress established pursuant to this section.

C. Before a hearing is held pursuant to subsection B of this section, the department of education shall recommend to the state board of education at least three governmental, nonprofit or private organizations or persons to manage the school district's affairs. If the state board approves the implementation of an alternative operation plan, it shall make an appointment from the list provided by the department of education. On making this appointment the state board shall immediately determine which powers enumerated in subsection D of this section shall be temporarily granted to the appointed organization or person. The authority granted pursuant to this subsection shall be effective until the state board reviews the alternative operation plan as described in subsection E of this section.

D. An organization or person appointed pursuant to subsection C of this section shall begin a full review and investigation of the school district's educational affairs and shall submit to the state board of education a detailed report listing the findings of that investigation. This report shall include an alternative operation plan that details how the school district will raise the level of academic achievement so that all of the schools in the school district are assigned grade letters of A, B or C pursuant to this section. The plan shall include a proposed timeline for improving academic achievement. The alternative operation plan shall also include a timeline and details concerning how the organization or person will transition the administration of the school district back to the locally elected governing board. The organization or person shall submit the report within one hundred twenty days from the date the organization or person was appointed by the state board. If approved by the state board, the alternative operation plan may authorize the appointed organization or person to do any of the following:

Override any decisions of the school district governing board or the school district superintendent, or both, concerning the management and operation of the school district, and initiate and make decisions concerning the management and operation of the school district, including reopening the school as a charter school.
Hire personnel, terminate personnel and cancel existing employment contracts, including the district superintendent, to the extent permitted by law. The appointed organization or person may refuse to reemploy any certificated teacher who has not been employed by the school district for more than the major portion of three consecutive school years as provided in section 15-536.
Attend any meetings of the school district governing board and administrative staff.
Supervise the activities of the school district's staff, including reassigning the duties and responsibilities of personnel in a manner that, as determined by the appointed organization or person, best suits the needs of the school district.
To the extent permitted by law, cancel or renegotiate any contract, other than contracts of certificated teachers who have been employed by the school district in the capacity of a certificated teacher for more than one year, to which the governing board or the school district is a party if the cancellation or renegotiation of the contract will produce needed economies in the operation of the district's schools.

E. The state board of education shall periodically review the status of a school district that is operating under an alternative operation plan pursuant to this section to determine whether the operations of the school district should be returned to the school district governing board. Before the state board makes a determination to terminate an alternative operation plan, the state board or its designee shall meet with the school district governing board or its designee to establish an appropriate time frame and address any additional operational considerations that are necessary to ensure a smooth transition of authority from the appointed organization or person back to the school district governing board. When determining whether to terminate an alternative operation plan, the state board shall consider whether the district's schools have made significant academic gains as determined by individual school achievement profiles established pursuant to this section.

F. If at any time the state board determines that the progress of an organization or person who is appointed pursuant to this subsection or subsection C of this section is insufficient, the state board may remove that organization or person and make an alternative appointment. All authority granted pursuant to the approved alternative operation plan shall be transferred to the newly appointed organization or person. The state board may require the newly appointed organization or person to prepare a revised alternative operation plan as described in subsection D of this section.

G. All expenses and costs of an organization or person appointed by the state board pursuant to subsection C or F of this section shall be paid by the school district. The state board of education shall review the expenses and costs at least twice each calendar year to ensure that the fees are reasonable and appropriate.

H. The operation of a school district by an organization or person appointed pursuant to this section shall not interfere with the election of school district governing board members.

I. The school district shall indemnify the organization or person appointed pursuant to subsection C or F of this section if that organization or person is made or threatened to be made a party to any litigation by reason of the organization's or person's status under this section if the organization or person acted in good faith and in a manner the organization or person believed to be lawful and in the best interest of the school district.

J. All information received and records or reports kept by the state board of education during an investigation resulting from a complaint against an organization or person appointed pursuant to subsection C or F of this section are confidential and are not public records.

§ 15-241.02 School improvement plans; solutions teams; withholding of state monies

A. If a school is assigned a letter grade of D pursuant to section 15-241, within ninety days after receiving notice of the classification, the school district governing board shall develop an improvement plan for the school, submit a copy of the plan to the superintendent of public instruction and the county educational service agency and supervise the implementation of the plan. The governing board shall include in the plan necessary components as identified by the state board of education. Within thirty days after submitting the improvement plan to the superintendent of public instruction and the county educational service agency, the governing board shall hold a public meeting in each school that has been assigned a letter grade of D and shall present the respective improvement plans that have been developed for each school. The governing board, within thirty days after receiving notice of the classification, shall provide written notification of the classification to each residence within the attendance area of the school. The notice shall explain the improvement plan process and provide information regarding the public meeting required by this subsection.

B. A school that has not submitted an improvement plan pursuant to subsection A of this section is not eligible to receive monies from the classroom site fund established by section 15-977 for every day that a plan has not been received by the superintendent of public instruction within the time specified in subsection A of this section plus an additional ninety days. The state board of education shall require the superintendent of the school district to testify before the board and explain the reasons that an improvement plan for that school has not been submitted.

C. If a charter school is assigned a letter grade of D pursuant to section 15-241, within thirty days the school shall notify the parents of the students attending the school of the classification. The notice shall explain the improvement plan process and provide information regarding the public meeting required by this subsection. Within ninety days after receiving the classification, the charter holder shall present an improvement plan to the charter sponsor at a public meeting and submit a copy of the plan to the sponsor of the charter school. The charter holder shall include in the improvement plan necessary components as identified by the state board of education. The school is not eligible to receive monies from the classroom site fund established by section 15-977 for every day that an improvement plan has not been received by the sponsor of the charter school within the time specified in this subsection plus an additional ninety days. The charter holder shall appear before the sponsoring board and explain why the improvement plan has not been submitted.

D. If a school is assigned a letter grade of D pursuant to section 15-241 for a third consecutive year, the department of education shall visit the school site to confirm the classification data and to review the implementation of the school's improvement plan. The school shall be assigned a letter grade of F unless an alternate letter grade is assigned after an appeal pursuant to section 15-241, subsection J. A school that is assigned a letter grade of D for fewer than three consecutive years may also be assigned a letter grade of F if the state board of education determines that there is no reasonable likelihood that the school will achieve an average level of performance within the next two years.

E. The superintendent of public instruction and the county educational service agency shall collaborate to assign a solutions team to a school assigned a letter grade of D pursuant to section 15-241 or a school assigned a letter grade of F pursuant to section 15-241 based on academic need and available resources. County educational service agencies may enter into agreements to provide services to schools from other counties. Any other school, subject to available resources, may be assigned a solutions team pursuant to a mutual agreement between the department of education or the county education service agency, or both, and the school. The solutions team shall be composed of master teachers, fiscal analysts and curriculum assessment experts who are certified by the state board of education as Arizona academic standards technicians. The department of education or the county educational service agency may hire or contract with administrators, principals and teachers who have demonstrated experience in improving academic outcomes and may use these personnel as part of the solutions team. The department of education shall work with staff at the school to assist in curricula alignment and shall instruct teachers on how to increase pupil academic progress, considering the school's annual achievement profile. The solutions team shall consider the existing improvement plan to assess the need for changes to curricula, professional development and resource allocation and shall present a statement of its findings to the school administrator and district superintendent. Within forty-five days after the presentation of the solutions team's statement of findings, the school district governing board, in cooperation with each school within the school district that is assigned a letter grade of D and its assigned solutions team representative, shall develop and submit to the department of education and the county educational service agency an action plan that details the manner in which the school district will assist the school as the school incorporates the findings of the solutions team into the improvement plan. The department of education shall review the action plan and shall either accept the action plan or return the action plan to the school district for modification. If the school district does not submit an approved action plan within forty-five days, the state board of education may direct the superintendent of public instruction to withhold up to ten percent of state monies that the school district would otherwise be entitled to receive each month until the plan is submitted to the department of education and the county educational service agency, at which time those monies shall be returned to the school district.

F. The parent or guardian of a pupil may apply to the department of education, in a manner determined by the department of education, for a certificate of supplemental instruction from the failing schools tutoring fund established by section 15-241. Pupils attending a school assigned a letter grade of D or F may select an alternative tutoring program in academic standards from a provider that is certified by the state board of education. To qualify, the provider must state in writing a level of academic improvement for the pupil that includes a timeline for improvement that is agreed to by the parent or guardian of the pupil. The state board of education shall annually review academic performance levels for certified providers and may remove a provider at a public hearing from an approved list of providers if that provider fails to meet its stated level of academic improvement. The state board of education shall determine the application guidelines and the maximum value for each certificate of supplemental instruction. The state board of education shall annually complete a market survey in order to determine the maximum value for each certificate of supplemental instruction. This subsection does not require this state to provide additional monies beyond the monies provided pursuant to section 42-5029, subsection E, paragraph 7 or section 42-5029.02, subsection A, paragraph 7.

G. Within sixty days after receiving notification of a school being assigned a letter grade of F pursuant to section 15-241, the school district governing board shall evaluate needed changes to the existing school improvement plan, consider recommendations from the solutions team, submit a copy of the plan to the superintendent of public instruction and the county educational service agency and supervise the implementation of the plan. Within thirty days after submitting the improvement plan to the superintendent of public instruction and the county educational service agency, the governing board shall hold a public meeting in each school that has been assigned a letter grade of F and shall present the respective improvement plans that have been developed for each school. The governing board, within thirty days after receiving notice of the classification, shall provide written notification of the classification to each residence in the attendance area of the school. The notice shall explain the improvement plan process and provide information regarding the public meeting required by this subsection.

H. A school that has not submitted an improvement plan pursuant to subsection G of this section is not eligible to receive monies from the classroom site fund established by section 15-977 for every day that a plan has not been received by the superintendent of public instruction within the time specified in subsection G of this section plus an additional ninety days. The state board of education shall require the superintendent of the school district to testify before the board and explain the reasons that an improvement plan for that school has not been submitted.

I. If a charter school is assigned a letter grade of F pursuant to section 15-241, the department of education shall immediately notify the charter school's sponsor. The charter school's sponsor shall either take action to restore the charter school to acceptable performance or revoke the charter school's charter. Within thirty days, the charter school shall notify the parents of the students attending the school of the classification and of any pending public meetings to review the issue.

J. The department of education shall evaluate a school that has been assigned a letter grade of F pursuant to section 15-241 to determine whether the school, charter holder or school district failed to properly implement its school improvement plan, align the curricula with academic standards, provide teacher training, prioritize the budget or implement other proven strategies to improve academic performance. After visiting the school site pursuant to subsection D of this section, the department of education shall submit to the state board of education a recommendation either to proceed pursuant to subsections E, F and G of this section or that the school be subject to a public hearing to determine whether the school failed to properly implement its improvement plan and the reasons for the department's recommendation. If the school is a charter school, the department shall submit a report to the sponsor of the charter school. The sponsor shall make a determination pursuant to subsection N of this section.

K. If the department recommends a public hearing, the state board of education shall meet and may provide by a majority vote at the public hearing for the continued operation of the school as allowed by this subsection. The state board of education shall determine whether governmental, nonprofit and private organizations may submit applications to the state board to fully or partially manage the school. The state board's determination shall include:

Whether and to what extent the local governing board may participate in the operation of the school, including personnel matters.
Whether and to what extent the state board will participate in the operation of the school.
Resource allocation pursuant to subsection M of this section.
Provisions for the development and submittal of a school improvement plan to be presented in a public meeting at the school.
A suggested time frame for the alternative operation of the school.

L. The state board of education shall periodically review the status of a school that is operated by an organization other than the school district governing board to determine whether the operation of the school should be returned to the school district governing board. Before the state board makes a determination, the state board or its designee shall meet with the school district governing board or its designee to determine the time frame, operational considerations and appropriate continuation of existing improvements that are necessary to ensure a smooth transition of authority from the other organization back to the school district governing board.

M. If an alternative operation plan is provided pursuant to subsection K of this section, the state board of education shall pay for the operation of the school and shall adjust the school district's district additional assistance pursuant to section 15-961, base support level pursuant to section 15-943, monies distributed from the classroom site fund established by section 15-977 and transportation support level pursuant to section 15-945 to accurately reflect any reduction in district services that are no longer provided to that school by the district. The state board may modify the school district's revenue control limit, the district support level and the general budget limit calculated pursuant to section 15-947 by an amount that corresponds to this reduction in services. The state board shall retain the portion of state aid that would otherwise be due the school district for the school and shall distribute that portion of state aid directly to the organization that contracts with the state board to operate the school.

N. If the sponsor of a charter school determines that a charter holder failed to properly implement its improvement plan, the sponsor of the charter school shall revoke the charter school's charter.

O. If there are more than two schools in a district and more than one-half, or in any case more than five, of the schools in the district are assigned a letter grade of F pursuant to section 15-241 for more than two consecutive years, in the next election of governing board members the election ballot shall contain the following statement immediately above the listing of governing board candidates:

Within the last five years, (number of schools) schools in the ________ school district have been assigned a letter grade of D or F.

P. At least twice each year the department of education shall publish in a newspaper of general circulation in each county of this state a list of schools that are assigned a letter grade of F pursuant to section 15-241.

Q. The state board of education shall adopt guidelines to include supplementary training in reading instruction for teachers who provide instruction to pupils in a kindergarten program or grade one, two or three in an improvement plan pursuant to subsection A of this section.

R. In addition to any other corrective procedures prescribed in this section and sections 15-241 and 15-241.01, a school that has been assigned a letter grade of D or F for two consecutive years shall implement a science, technology, engineering and mathematics intervention strategy under the supervision of the state board of education.

S. In addition to any other corrective procedures prescribed in this section, a school district that has been assigned a letter grade of D or F pursuant to section 15-241 for two consecutive years shall implement a parent involvement strategy. The parent involvement strategy shall be included in the school improvement plan for each applicable school within the district, as prescribed in subsection A or G of this section, as applicable.

T. The department of education shall publish criteria for a school's or school district's exit status from a previous assignment of a letter grade of F in accordance with this section. The criteria shall prescribe the actions and results necessary to be deemed to have complied with this section regarding school improvement, including the proper implementation of a school improvement plan pursuant to subsection J of this section. These criteria shall be provided to a school or school district if it is assigned a letter grade of F pursuant to section 15-241.

§ 15-242 Nutrition standards

A. The department shall develop minimum nutrition standards that meet at least federal guidelines and regulations for foods and beverages sold or served on the school grounds of elementary schools, middle schools and junior high schools during the normal school day. These nutrition standards may include portion sizes, minimum nutrient values and a listing of contents. This subsection does not prohibit the department from developing minimum nutrition standards that are more stringent than the federal guidelines and regulations for foods and beverages sold or served on school grounds during the normal school day.

B. All elementary schools, middle schools and junior high schools shall participate in the national school lunch program as defined in Public Law 108-265 except that a school district with fewer than one hundred pupils that is not currently participating in the national school lunch program may be exempt from this subsection if the school district governing board determines at a public meeting to not participate in the requirements of this subsection.

C. Food and beverages sold or served on the school grounds of elementary schools, middle schools and junior high schools or at school-sponsored events of elementary schools, middle schools and junior high schools during the normal school day shall meet the nutrition standards developed by the department, including foods and beverages offered as any of the following:

A la carte items in the food service program.
Food and beverages sold in vending machines, snack bars and meal-period kiosks and at school stores.

D. Foods of minimal nutritional value as defined by 7 Code of Federal Regulations section 210.11(2) shall not be served or sold during the normal school day on any elementary school, middle school or junior high school campus.

E. New contracts and renewal contracts for food or beverages, or both, shall expressly prohibit the sale of sugared, carbonated beverages and all other foods of minimal nutritional value as defined by 7 Code of Federal Regulations section 210.11(2) on elementary school, middle school and junior high school campuses. The department may approve a carbonated drink that is determined by the department to meet or exceed the department's minimum nutrition standards.

F. Parents, pupils and community members may review food and beverage contracts to ensure that food and beverages sold on elementary school, middle school and junior high school campuses provide nutritious sustenance to pupils, promote good health, help students learn, provide energy and model fit living for life.

G. School districts that offer instruction in grades nine through twelve may adopt nutrition standards for high school campuses.

H. Notwithstanding subsection D of this section, the department shall issue exemptions to allow school districts and charter schools to conduct fund-raisers that include the sale of foods of minimal nutritional value.

I. Nothing in this section shall be construed to:

Prohibit a school district from developing and adopting nutrition standards that are more stringent than those developed pursuant to this section.
Prohibit or limit the sale or distribution of any food or beverage item through fund-raising activities of students, teachers or educational groups when the items are intended for sale off the school grounds.
Prohibit or limit the sale or distribution of any food or beverage items to teachers, administrators or other adults in a faculty lounge or under other circumstances where the sale or distribution is limited to teachers, administrators or other adults.

§ 15-242.01 Ultraprocessed foods; prohibition; certification; definition

A. Beginning in the 2026-2027 school year, any school that participates in a federally funded or assisted meal program shall not serve, sell or allow a third party to sell ultraprocessed food on the school campus during the normal school day. This subsection does not prevent a student's parent or guardian from providing ultraprocessed food to the student during the normal school day.

B. The department of education shall post on the department's website both of the following:

A standardized form that a public school may use to certify that the public school is complying with the requirements prescribed by this section.
A list of each public school that has certified to the department that the public school is complying with the requirements prescribed by this section.

C. For the purposes of this section, "ultraprocessed food" means a food or beverage that contains one or more of the following ingredients:

Potassium bromate.
Propylparaben.
Titanium dioxide.
Brominated vegetable oil.
Yellow dye 5.
Yellow dye 6.
Blue dye 1.
Blue dye 2.
Green dye 3.
Red dye 3.
Red dye 40.

§ 15-243 Golden rule special plate fund

A. The golden rule special plate fund is established consisting of monies received pursuant to section 28-2424. The department of education shall administer the fund. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The department of education shall distribute monies in the fund before July 1 of each year.

B. The department of education shall allocate monies to a private golden rule foundation that is an incorporated nonprofit corporation in this state and that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The department of education shall select a private golden rule foundation that provides golden rule programs that demonstrate the promotion of the golden rule in schools in this state and in communities in this state to receive monies from the golden rule special plate fund.

§ 15-244 Office of Indian education; definition

A. The office of Indian education is established in the department of education. The superintendent of public instruction shall hire appropriate personnel for the office.

B. The office of Indian education shall:

In collaboration with Indian nations, provide technical assistance to schools and Indian nations to meet the educational needs of Native American pupils.
Provide technical assistance to schools and Indian nations in the planning, development, implementation and evaluation of curricula that are culturally relevant and aligned to state standards.
Provide technical assistance to schools and Indian nations to develop culturally appropriate curricula and instructional materials.
Establish an Indian education advisory council in the department of education that shall include at least parents who are not certificated teachers.
Encourage and foster parental involvement in the education of Native American pupils.

C. At least once each year, representatives from all Indian nations, members of the state board, the governor's office, the governor's office on tribal relations, the intertribal council of Arizona, the legislature, the superintendent of public instruction and the Indian education advisory council shall meet to assist in evaluating, consolidating and coordinating all activities relating to the education of Native American pupils.

D. Based on data submitted pursuant to subsection E of this section, the office of Indian education, in collaboration with entities that serve Native American pupils, shall submit an annual statewide Native American education status report to all Indian nations in this state. The division shall provide a copy of this report to the secretary of state.

E. A school district with tribal lands located within its boundaries shall provide a district-wide Native American education status report to all Indian nations represented within the school district boundaries and to the department of education.

F. The status reports prescribed in subsections D and E of this section shall be written in a brief format and shall include the following information, through which public school performance is measured and reported to the Indian nations:

Student achievement as measured by a statewide test approved by the state board, with results disaggregated by ethnicity.
School safety.
The dropout rate.
Attendance.
Parent and community involvement.
Educational programs that target Native American pupils.
Financial reports.
The current status of federal Indian education policies and procedures.
School district initiatives to decrease the number of student dropouts and increase attendance.
Public school use of variable school calendars.
School district consultations with parent advisory committees.

G. The state board of education, in consultation with the Indian nations in this state, may adopt rules to implement this section.

H. For the purposes of this section, "Indian nations" means an Indian nation, tribe or pueblo located in this state.

§ 15-244.01 Tribal college dual enrollment program fund; intergovernmental agreements

A. The tribal college dual enrollment program fund is established consisting of monies deposited pursuant to section 5-568, other monies appropriated by the legislature and gifts, grants, devises and other contributions of monies or property from any lawful public or private source. The department of education shall administer the fund. The department shall distribute monies in the fund to provide choice and access to higher education for high school students in this state by compensating tribal colleges for books and instructional materials and for tuition and fees that are waived to allow high school students to attend classes at tribal college campuses, including classes that are provided electronically by the tribal college to high school students. Monies in the fund are subject to legislative appropriation. On notice from the department, 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 fund.

B. The office of Indian education within the department may provide technical assistance to tribal colleges and high schools in connection with initiating and operating a dual enrollment program.

C. A tribal college dual enrollment program may offer courses pursuant to intergovernmental agreements with high schools that are located outside of a reservation to student members of a tribe living off of the reservation and to other students. A course offered pursuant to this subsection must qualify for a certificate or degree program and must relate to tribal language, government or culture or any other college subject.

§ 15-245 Mandatory reporting training; materials

A. The Arizona prosecuting attorneys' advisory council shall develop a statewide training curriculum on the mandatory reporting laws of this state, including section 13-3620, for public school personnel. Each public school shall require its personnel to complete the training developed pursuant to this section.

B. The department of education shall provide resources and materials developed pursuant to this section that schools may use for the purposes of providing information on the mandatory reporting laws of this state, including section 13-3620, to parents and students.

C. The department shall make the training curriculum and materials developed pursuant to this section available to public and private schools. This section does not require private schools to offer the training developed pursuant to this section.

§ 15-246 Arizona government education fund

A. The Arizona government education fund is established consisting of legislative appropriations, gifts, grants and donations. The department of education shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The department shall use monies in the fund to contract with third parties to provide for annual, one-week high school civics courses that focus on state government. The courses shall be sponsored by a federally chartered national veterans' organization that has at least fifty years of experience in providing this type of civics education. The courses shall be conducted on the campuses of public and private postsecondary institutions in this state.

§ 15-247 Reporting; school district overexpenditures

The department of education shall submit a report on or before December 15 of each year that lists each school district that overexpends its budget in the prior fiscal year and the amount of the overexpenditure by funding source to the governor, the president of the senate and the speaker of the house of representatives. A copy of the report shall be delivered to the secretary of state and the director of the Arizona state library, archives and public records.

§ 15-248 Arizona national rankings; annual report

A. The department of education shall collect, evaluate and assess existing studies and findings conducted by any public or private entity on the national rankings and overall quality of schools in this state based on the following:

Academic productivity as measured by academic progress indicators. The academic productivity measures shall include the areas of reading, writing and mathematics and other academic categories determined by the department.
Ratings of school quality by parents.

B. The department may further evaluate, but is not limited to, the following school funding issues:

The average salaries of teachers who provide instruction in school districts in this state compared to the average salaries of teachers with similar levels of experience and education in other states.
Other funding categories determined by the department.

C. For the purposes of this section, studies and findings that are evaluated by the department may be conducted by any public or private entity, except that the department shall rely only on research it determines is scientifically reliable. The department may request that additional specialized research be conducted by public or private entities selected by the department.

D. The department shall search scientific literature and select a national ranking study of the performance of each state's schools that used the most scientifically sound methodology in the ranking process. The department shall identify all the data elements used in the study and shall duplicate those data elements using the most recent available data. The department shall attempt to identify the characteristics of the top ten ranked states and the bottom ten ranked states in all areas that impact the quality of education.

E. The department shall submit electronically an annual report on or before December 1 regarding its findings to the governor, the speaker of the house of representatives and the president of the senate. The department shall provide copies of this report to the secretary of state and the director of the Arizona state library, archives and public records. The department shall present its findings at a public meeting for discussion and analysis.

§ 15-248.02 Teacher certification fund

The teacher certification fund is established consisting of fees collected pursuant to chapter 5, article 3 of this title and legislative appropriations. The department of education shall administer the fund and shall use the monies in the fund for expenses incurred in administering teacher certification. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 15-249 Department of education; education learning and accountability system; reports; reviews

A. Subject to the appropriation of state monies or the receipt of federal monies, private donations or grants from any lawful public or private source for this purpose, the department of education shall develop and implement the education learning and accountability system to collect, compile, maintain and report student level data for students attending public educational institutions that provide instruction to pupils in preschool programs, kindergarten programs, grades one through twelve and postsecondary educational programs in this state.

B. The education learning and accountability system shall:

Maintain longitudinal, student level data, including student demographic, grade level, assessment, teacher assignment and other data required to meet state and federal reporting requirements.
Incorporate the student accountability information system prescribed in chapter 9, article 8 of this title.
Be accessible through commonly used internet web browsers to carry out the data collection, compilation and reporting duties prescribed in this title.

C. Student level nontest data is prohibited from inclusion in longitudinal, student level data unless approved in a public meeting of the state board of education and linked on the state board's home page pursuant to section 15-741, subsection A, paragraph 7.

D. The department of education may contract with a third party to carry out the purposes of this section.

E. The department of education shall develop a detailed plan to develop and implement the education learning and accountability system.

F. The department of education shall present the plan developed pursuant to subsection E of this section to the state board of education for review and approval. The department of education shall continue to provide quarterly reports to the state board of education, or on request, for review and approval of the state board of education, on developing and implementing the education learning and accountability system. All reports provided shall include progress and expenditures to date, timelines and cost estimates for completion.

G. Any contract awarded pursuant to subsection D of this section shall allow the superintendent of public instruction to renew the contracts for two subsequent periods of not more than three years each and shall prescribe the circumstances under which the superintendent of public instruction may terminate the contracts. The contracts shall allow this state to cancel any contract at any time after the first year of operation, without penalty to this state, on ninety days' written notice and shall require the contractor to be in compliance at all times with state and federal law.

H. Any contract awarded pursuant to subsection D of this section may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the contract's effective date. Any adjustment made pursuant to the terms of the contract must be applied to the total payments made to the contractor for the previous contract year and shall not exceed the percentage change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the next previous calendar year. Any price or cost adjustments that are different than those authorized in this subsection may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.

I. The superintendent of public instruction shall not award a contract pursuant to this section unless:

The superintendent of public instruction receives an acceptable proposal pursuant to any request for proposals. For the purposes of this paragraph, "acceptable proposal" means a proposal that substantially meets all of the requirements or conditions prescribed in this section and in the request for proposals.
The proposal offers a level and quality of services that equal or exceed the services that would be provided by this state.
The contractor provides audited financial statements for the previous five years, or for each year that the contractor has been in operation if fewer than five years, and provides other financial information as requested.

J. The sovereign immunity of this state does not apply to any contractor who is a party to any contract pursuant to this section. The contractor or any agent of the contractor may not plead the defense of sovereign immunity in any action arising out of the performance of the contract.

K. The terms of any contract pursuant to this section are subject to review by the joint legislative budget committee before placement of any advertisement that solicits a response to a request for proposals. Any proposed modification or amendment to the contract is subject to prior review by the joint legislative budget committee.

L. During the first year of operation under a contract executed pursuant to this section, the contracting entity shall submit monthly reports to the department of education as prescribed by the department. After the first year of operation under the contract, the contracting entity shall submit quarterly reports to the department as prescribed by the department.

M. At the end of the second year of a contract executed pursuant to this section, an independent evaluator selected by the superintendent of public instruction shall conduct and complete a performance review to determine if the contracting entity has met the goals specified in the contract. The independent evaluator shall submit a report of the independent evaluator's findings to the governor, the president of the senate and the speaker of the house of representatives on or before May 1, and shall provide a copy of this report to the secretary of state.

§ 15-249.01 Purple star school program; application; annual report; definitions

A. The purple star school program is established within the department of education to identify schools in this state that provide transition support to military students and their families. The department may adopt policies and procedures to implement this section.

B. Any school in this state that offers instruction to students in kindergarten programs or any combination of grades one through twelve may apply to the department to participate in the purple star school program in a form and manner prescribed by the department. Notwithstanding section 15-161, a private school in this state may participate in the purple star school program under this section on the same terms and subject to the same requirements as any public school in this state. The department shall approve an application under this subsection if the school demonstrates that the school does all of the following:

Provides professional development training to at least seventy percent of the school's employees, including administrators, related to the unique needs of highly mobile students and military students. Training provided pursuant to this paragraph may include only politically neutral instruction and materials. The first training provided pursuant to this paragraph must be provided in person. Subsequent training, including professional development training provided to new employees and the annual continuing education and training provided to all employees, may be provided electronically. A school may accept in-kind donations of materials, equipment or services for the training required under this paragraph.
Designates an employee to serve as the school's point of contact for the purple star school program. When selecting the designated point of contact, the school shall consider whether an employee has a military background or other relevant experiences. The designated point of contact must:

(a) Complete the training required under paragraph 1 of this subsection.

(b) Oversee the peer mentorship program established under paragraph 3 of this subsection and provide information about the program to military students and their families.

(c) Coordinate with the school administrators to ensure that the school satisfies all requirements under this section, including monitoring the percentage of school employees who have received the training required under paragraph 1 of this subsection, organizing the patriotic event required under paragraph 4 of this subsection and collecting any data necessary for the annual report required under subsection D of this section.

(d) Update the website required under paragraph 5 of this subsection at least one time during each school year.

(e) Serve as the school's primary point of contact for military students and their families to assist with transitions into and out of the school.

Establishes a peer mentorship program for military students. The school administrators shall select and train students who are enrolled in the school to serve as student mentors and to support military students who are transitioning into the school.
Holds at least one patriotic event during each school year. A patriotic event held under this paragraph must do both of the following:

(a) Recognize the service of members of the military and their families.

(b) Educate attendees about military service in the United States and in this state.

Creates and maintains either a website or a dedicated page on the school's website with resources for military students and their families, including:

(a) The contact information for the point of contact designated under paragraph 2 of this subsection.

(b) Information about the peer mentorship program established under paragraph 3 of this subsection and instructions for how to participate in the program.

(c) Information regarding the most recent and, if available, upcoming patriotic event held by the school pursuant to paragraph 4 of this subsection.

(d) Other relevant transition information and resources for military students or other highly mobile students.

C. The department may develop additional criteria for the eligibility determination under subsection B of this section.

D. On or before June 30 of each year, each purple star school shall submit a report to the department of education that contains all of the following for the current school year:

The number of military students served by the purple star school.
A description of the peer mentorship program established under subsection B, paragraph 3 of this section, including the number of trained student mentors and the number of military students who participated in the program.
An attestation that the school updated the website or dedicated webpage required under subsection B, paragraph 5 of this section at least once during the school year.
The percentage of school employees who received the professional development training required under subsection B, paragraph 1 of this section and a brief description of the training provided.
A description of each patriotic event held by the school during the school year.
The contact information for the designated point of contact required under subsection B, paragraph 2 of this section.

E. The department of education shall review the reports submitted pursuant to subsection D of this section to determine whether each purple star school continues to satisfy the eligibility requirements under subsections B and C of this section. If the department determines that a purple star school either failed to submit the report required under subsection D of this section or failed to demonstrate that the school meets the eligibility requirements, the department shall notify the purple star school of the determination and the specific action required by the purple star school to cure the deficiency. If the purple star school fails to submit to the department evidence that the school has cured the deficiency within ninety days after the notice is issued, the department shall notify the school that the school is no longer approved to participate in the program and may not represent itself as a purple star school to the public.

F. For the purposes of this section:

"Military" means the army, navy, air force, space force, marine corps, coast guard and national guard and any military reserve unit.
"Military student" means an individual who is both:

(a) Enrolled in or eligible for enrollment in a kindergarten program or any of grades one through twelve in this state.

(b) A dependent as defined in section 43-1001 of a veteran or of an active-duty member of the military.

"Purple star school" means a school that is approved to participate in the purple star school program under this section.
"Veteran" means a person who served in the military and who was discharged or released under conditions other than dishonorable.

§ 15-249.02 Education learning and accountability fund; appropriation; subaccounts

A. The education learning and accountability fund is established consisting of legislative appropriations and fees collected from universities and community college districts in support of the education learning and accountability system for public education. The department of education shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. All monies deposited in the fund for fiscal year 2011-2012 are appropriated for use in fiscal year 2011-2012 and fiscal year 2012-2013. Monies in the fund may only be used for the purposes prescribed in section 15-249 and are subject to the requirements for review by the joint legislative budget committee prescribed in that section.

B. The general fund subaccount is established within the education learning and accountability fund consisting of appropriations from the state general fund that are deposited into the fund. Monies in the subaccount are continuously appropriated.

C. The university and community college fee subaccount is established within the education learning and accountability fund consisting of fees collected from universities and community college districts that are deposited into the fund. Monies in the subaccount are subject to legislative appropriation.

§ 15-249.03 Best practice examples of reading intervention and remedial reading strategies; posting

The department of education shall prominently post on the website maintained by the department best practice examples of evidence-based reading intervention and remedial reading strategies used in school districts and charter schools in this state. The examples shall be selected from those school districts and charter schools that demonstrate improvement on third grade reading proficiency as measured by the statewide assessment administered pursuant to section 15-741. The school districts and charter schools selected shall represent school districts and charter schools in demographic composition, including rural and urban, size and student characteristics.

§ 15-249.04 Report; school district overrides

On or before November 30 of each year, the department of education shall electronically submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that lists the amount budgeted by individual school districts for the current fiscal year for each type of override conducted pursuant to section 15-481 or 15-482.

§ 15-249.05 Federal monies; state and local monies; separate accounting

Monies the department receives from the federal government or from federal programs may not be commingled with state and local monies and shall be accounted for within the department in separate accounts from state and local monies.

§ 15-249.06 College credit by examination incentive program; incentive bonuses; report; college credit by examination development fund

A. The college credit by examination incentive program is established within the department of education to provide an incentive bonus to teachers, school districts and charter schools for students who obtain a passing score on a qualifying examination for college credit while in high school.

B. The Arizona board of regents shall maintain a list of qualifying examinations that a high school student may take in order to receive college credit in mathematics, English language arts, social studies or science from any university under the jurisdiction of the Arizona board of regents and the passing scores required on those examinations in order to receive college credit. On or before September 1 of each year, the Arizona board of regents shall provide the list of qualifying examinations and passing scores to the department of education and shall submit this list to the joint legislative budget committee.

C. Beginning in fiscal year 2017-2018, the department of education shall pay an incentive bonus to school districts and charter schools for each student in grades nine through twelve who receives a passing score during the previous fiscal year on a qualifying examination identified by the Arizona board of regents pursuant to subsection B of this section. A student who receives a passing score on a qualifying examination and who is enrolled in a school where fifty percent or more of the students are eligible for free or reduced-price lunches shall generate for the school or charter school a bonus of $450 per passing score on a qualifying examination. A student who receives a passing score on a qualifying examination and who is enrolled in a school where less than fifty percent of the students are eligible for free or reduced-price lunches shall generate for the school or charter school a bonus of $300 per passing score on a qualifying examination. If the statewide sum of per student bonuses awarded pursuant to this subsection exceeds the amount of available monies appropriated for incentive bonuses, the bonus monies shall be reduced proportionally to cover all eligible bonus awards.

D. A school district or charter school that receives an incentive bonus pursuant to this section shall distribute at least fifty percent of the bonus monies to the associated classroom teacher for each student who passes a qualifying examination and to other teachers of relevant subjects who instructed that student, including teachers in the same department or subject matter that contributed to the student passing the examination, as identified by the school district governing board, the charter school governing body or the school principal. Bonus monies awarded to a teacher pursuant to this subsection are in addition to any regular wage, compensation or other bonus the teacher receives or is scheduled to receive and shall be provided to the teacher by the end of the school year or not later than thirty days after the end of the school year. The remainder of any bonus monies received by a school district or charter school shall be allocated by the school principal on behalf of students who receive a passing score and may be used for teacher professional development or student instructional support, reimbursement of examination fees or instructional materials. Any bonus monies received by a school district or charter school pursuant to this subsection shall be separately accounted for in the school district's or charter school's annual financial report.

E. Incentive bonuses distributed to and any bonus monies received by a school district or charter school pursuant to this section are not subject to collective bargaining.

F. Payments made by the department of education pursuant to this section shall be distributed to schools not later than March 1 of each year. School districts and charter schools may appeal the allocation of bonus monies not later than August 1 of each year. The department may withhold up to $10,000 of the monies appropriated for the purposes of this section to address allocation appeals by school districts and charter schools.

G. On or before December 15, 2018 and on or before December 15 of each year thereafter, the department of education shall submit to the president of the senate, the speaker of the house of representatives, the governor, the secretary of state, and the joint legislative budget committee, a report on all of the following:

The number of students who took a qualifying examination at each school.
The number of students who received a passing score on a qualifying examination and the number of incentive bonus awards distributed.
The number and types of qualifying examinations taken by students.
The amount of bonus monies received by each school.

H. Incentive bonuses distributed to and any bonus monies received by a teacher are not compensation as defined in section 38-711.

I. The college credit by examination development fund is established consisting of monies that are appropriated to the department of education for the purposes of this section but that are not distributed by the end of the fiscal year in which the monies are appropriated. The department shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall distribute monies in the fund to schools in which fifty percent or more of the students are eligible for free or reduced-price lunches to assist those schools in developing and operating classes that offer qualifying examinations pursuant to this section. The department shall prioritize distributions from the fund based on need.

§ 15-249.07 Broadband expansion fund; requirements; disbursements to certified applicants; reports

A. The broadband expansion fund is established consisting of legislative appropriations. The department of education shall administer the fund. Monies in the fund are continuously appropriated and shall be used to provide state matching monies for certified broadband connectivity construction projects for qualified applicants. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. Qualified applicants for distributions from the broadband expansion fund include schools, school districts, libraries and groups of schools or school districts with broadband connectivity construction projects that are certified by the department and that are eligible for the federal universal service program for schools and libraries known as the e-rate program.

C. Notwithstanding subsection A of this section, the first eight million dollars of cumulative state matching contributions for certified broadband connectivity construction projects shall be provided by the corporation commission from the funding mechanism established by the corporation commission in accordance with the federal universal service program.

D. The department may disburse monies from the broadband expansion fund to the applicant of a certified broadband connectivity construction project on notification from the universal service administrative company that a project is approved for federal e-rate program monies.

E. An applicant may not receive a total amount from the federal universal service fund, the funding mechanism established by the corporation commission in accordance with the federal universal service program and the broadband expansion fund in excess of the certified broadband connectivity construction project's cost.

F. When certifying projects as eligible for funding from the broadband expansion fund, the department shall give priority to applicants with an e-rate program discount rate of at least eighty percent, as defined by the universal service administrative company.

G. Certified broadband connectivity construction projects funded with monies from the broadband expansion fund:

Shall provide bandwidth sufficient to meet the standards for educational services for the relevant funding year by the federal communications commission and may not exceed those standards without good cause.
May be fiber based or, if determined to be justified by cost, nonfiber based.

H. On or before June 30 and December 31 of each year, the department shall report to the joint legislative budget committee the following information for each broadband connectivity construction project that the department has certified to receive a state matching contribution:

The applicant's name.
Whether the project is in process or complete.
The federal e-rate discount calculation.
The total project cost and the share of funding provided by local, state and federal monies.
The number of students served.

I. The information reported on or before June 30 each year pursuant to subsection H of this section shall be submitted to the joint legislative budget committee for review.

§ 15-249.08 Training program; law enforcement officers and security personnel; certification; definitions

(Eff. 7/1/26)

A. The department of education, in collaboration with the Arizona peace officer standards and training board, shall establish a training program for law enforcement officers and security personnel who are employed by a school district or charter school in this state. The department shall provide a certificate of completion to each individual who successfully completes the training program.

B. Each school district in this state shall require any law enforcement officer or security personnel employed by the school district, including employment through a third-party contractor, to complete the training program established pursuant to subsection A of this section not later than one month after the individual begins working for the school district. An individual who successfully completed the training program less than two years before the date on which the individual begins working for the school district is not required to complete the training program if the individual submits to the school district a valid certificate of completion. A school district may terminate a school district employee or a third-party contractor who fails to complete the training program required by this subsection. A charter school may choose to require a law enforcement officer or security officer employed by the charter school, including employment through a third-party contractor, to complete the training program established pursuant to subsection A of this section.

C. For the purposes of this section:

"Law enforcement officer":

(a) Means a peace officer, school resource officer or school safety officer who is employed by a school district or charter school in an off-duty capacity.

(b) Does not include a peace officer who is assigned to work on off-duty security detail or a school resource officer who is assigned to a school district or charter school pursuant to the school safety program established by section 15-154.

"School safety officer" means a school resource officer who is working in an off-duty capacity.

§ 15-249.09 Early literacy program fund; report; definitions

A. The early literacy program fund is established to provide support to improve reading skills, literacy and proficiency for students in kindergarten programs and grades one, two and three in addition to monies received pursuant to section 15-211. The fund shall be administered by the department of education. The state board of education shall develop policies and procedures to be administered by the department of education.

B. Subject to review and approval by the state board of education, the department of education shall award monies to eligible schools based on available monies on a per pupil basis. The per pupil amount shall be calculated using the student count for pupils in kindergarten programs and grades one, two and three.

C. Eligible schools that receive monies pursuant to this section shall submit data on expenditures and results and other information required by subsection E of this section.

D. Eligible schools may use monies for eligible expenses to increase the reading proficiency of students in kindergarten programs and grades one, two and three. Eligible schools may also use monies to provide a full-day kindergarten program that is structured to increase reading proficiency. Monies must be used to expand, enhance and support the components included in a school's reading program plan submitted pursuant to section 15-211.

E. Subject to review and approval by the state board of education, the department of education shall include a report on the early literacy program in the K-3 reading program plan required by section 15-211. The report shall contain the following:

A description of the monies awarded each year.
A summary of the funded activities.
Information on the recipient schools' progress toward achievement goals.
Specific findings on strategies and activities and their level of effectiveness in improving reading proficiency in the recipient schools.

F. For the purposes of this section:

"Eligible expenses" means expenses for evidence-based strategies and interventions designed to improve the reading proficiency of students in kindergarten programs and grades one, two and three pursuant to sections 15-211 and 15-704, including literacy coaches and literacy specialists, reading curricula, kindergarten readiness assessments, summer programs or tutoring programs.
"Eligible school" means a public school with at least ninety percent of students who are eligible for free and reduced-priced lunches under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785).
"Student count" means the average daily membership for pupils in kindergarten programs and grades one, two and three, as prescribed in section 15-901 for the current year.

§ 15-249.10 Dyslexia handbook

The department of education, subject to approval by the state board of education, may develop and maintain a handbook for use in the schools of this state that provides guidance for pupils, parents and teachers concerning dyslexia. The handbook shall include the following:

Guidelines for teachers and parents to identify dyslexia.
A description of educational strategies that have been shown to improve the academic performance of pupils with dyslexia.
A description of resources and services that are available to pupils with dyslexia and to teachers and parents of pupils with dyslexia.

§ 15-249.11 Rural STEM program fund; definition

A. The rural STEM program fund is established for the purposes of supporting science, technology, engineering and math programs in rural schools. The fund consists of monies appropriated by the legislature and grants, gifts, devises and donations from any public or private source. Monies in the fund are continuously appropriated for the purposes of this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department of education shall administer the fund and may use not more than five percent of the monies deposited in the fund in a fiscal year for administrative purposes under this section. On notice from the department, 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 fund. Monies in the fund are subject to state auditing procedures.

B. Subject to review and approval by the state board of education, the department of education shall establish a process for rural schools to apply for grants from the rural STEM program fund. A rural school applying for a grant shall demonstrate how the rural school plans to use monies from the fund and what outcomes the rural school plans to achieve with students. A rural school that receives funding must demonstrate that the school's STEM program meets the academic standards for science, technology, engineering and mathematics as adopted by the state board of education.

C. On or before June 30 of each year, a rural school that receives monies from the rural STEM program fund shall provide the department of education with updates on outcomes achieved with students and how monies from the fund were spent. On or before November 15 of each year, the department of education shall report to the president of the senate, the speaker of the house of representatives and the governor on the amount of grants made from the rural STEM program fund, outcomes achieved with students statewide and how program monies were expended.

D. For the purposes of this section, "rural school" means a charter school or a school within a school district that has a student count of three hundred or less and that meets either of the following:

Is located in a county with a population of less than four hundred thousand persons.
Is located in a census county division with less than fifty thousand persons in a county with a population of at least four hundred thousand persons.

§ 15-249.12 Computer science professional development program fund; requirements; uses; reports

A. The computer science professional development program fund is established consisting of monies appropriated by the legislature and grants, gifts, devises and donations from any public or private source. The department of education shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the department, 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 fund. Monies in the fund are subject to state auditing as prescribed by law.

B. The department of education shall distribute grants on a first-come, first-served basis from the computer science professional development program fund to public schools that do not currently provide high school computer science courses to fund quality training for prospective computer science teachers. Subject to review and approval by the state board of education, the department shall establish application procedures for public schools that offer instruction in grades nine through twelve to apply for grants from the fund. A public school that applies for a grant shall demonstrate how it plans to use monies from the fund to provide quality training to prospective computer science teachers. A public school that receives grant monies from the fund must provide evidence that training provided to prospective computer science teachers with grant monies addresses academic standards for computer science, as adopted by the state board of education.

C. The grant application process established by the department of education shall prioritize awards to eligible public schools that either:

Have at least sixty percent of enrolled students who are eligible for free and reduced-priced lunches under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785).
Are rural schools as defined in section 15-249.13.

D. The department of education may not distribute grant monies in an amount that is more than fifty percent of the total state general fund appropriation to the computer science professional development program fund in any fiscal year unless matching gifts, grants or donations of monies or in-kind services are received from private sources to carry out the purposes of this section. The value of training provided by a private entity at no cost to this state or any other public school in this state shall count as matching monies in any fiscal year in which this training is provided.

E. The department may use up to two percent of the monies deposited in the fund each fiscal year for administrative purposes.

F. On or before June 30 of each year, each public school that receives grant monies from the computer science professional development program fund shall submit a report to the department of education on the outcomes achieved with prospective computer science teachers and how the grant monies were spent. On or before November 15 of each year, the department shall submit a report to the president of the senate, the speaker of the house of representatives and the governor on the amount of grant monies awarded from the fund, the outcomes achieved and how the monies were spent. The department shall provide a copy of this report to the secretary of state.

§ 15-249.13 Definition of "rural" for purpose of federal funding eligibility

For the purpose of federal funding eligibility determinations that are made by the department of education and that involve the geographic location of a school district or charter school, "rural" means located either:

In a county with a population that is less than or equal to ten percent of the population of this state.
In a county with a population that exceeds ten percent of the population of this state but that is located more than ten miles from a municipality with a population of more than fifty thousand persons.

§ 15-249.14 Ninth grade on-track grant program; school requirements; fund; exemption

A. The ninth grade on-track grant program is established in the department of education. The department shall administer the grant program and may adopt rules, policies and procedures to carry out the purposes of this section. The department shall:

Establish procedures for each of the following:

(a) A school district or charter school to apply for a grant.

(b) The department to evaluate the grant applications.

(c) The department to award grants to eligible school districts and charter schools for a term of more than one year and not more than five years.

The department shall ensure that the grant application and reporting requirements do not impose an undue burden on the school districts and charter schools.
Require each grant application to be approved by a majority vote of the school district governing board or charter school governing body, whichever applies, before the school district or charter school may submit the application to the department.
Award grants on a first-come, first-served basis to each eligible school district or charter school in an amount that is equal to at least $150 for each ninth grade student who is enrolled or projected to be enrolled in the school district or charter school during the term of the grant, except that the total number of ninth grade students who may be funded pursuant to this paragraph may not exceed:

(a) For grants that are awarded in fiscal year 2025-2026, twenty-two thousand six hundred fifty.

(b) For grants that are awarded beginning in fiscal year 2026-2027, zero.

Provide administrative support to grant recipients for implementing ninth grade on-track programs and services pursuant to this section.

B. Each school district or charter school that receives a grant award pursuant to subsection A of this section shall:

Use the monies to establish and expand programs, opportunities and strategies that help ninth grade students complete sufficient credits to be on track to graduate in four years, including all of the following:

(a) Providing real-time, accessibly formatted data regarding student grades, attendance and behavior to grade nine teachers and support staff.

(b) Allocating time for grade nine teachers and support staff to meet during the school day to review data and develop intervention strategies for at-risk students in grade nine. The school district or charter school shall maintain records of meetings held pursuant to this subdivision and provide those records to the department on request.

(c) Providing timely, actionable data for grade nine teachers, including providing access to data and developing teachers' data literacy.

(d) Creating highly effective grade nine success teams.

(e) Establishing foundational structures and conditions for grade nine on-track work.

(f) Establishing systems and processes to optimize operations of the grade nine success team.

(g) Systematizing grade nine success by recruiting and engaging all stakeholders.

(h) Creating and executing proactive and data-driven intervention and referral systems and processes.

(i) Implementing proactive and high-leverage intervention strategies.

(j) Creating and executing a comprehensive system of grade nine transition supports.

(k) Creating a personalized and supportive environment for students in grade nine.

(l) Providing early preparation for high school entry.

(m) Providing proactive supports to grade nine teachers and support staff.

(n) Implementing high quality instructional strategies and fair grading practices.

(o) Developing learning-centered professional communities and student-centered learning communities.

(p) Establishing a partnership with an organization that has at least five years of experience providing ninth grade on-track programs and services to school districts and charter schools to increase grade nine on-track rates.

On request from the department, provide any information necessary to demonstrate compliance with this section.

C. A school district or charter school that receives monies pursuant to this section shall supplement and not supplant programs, opportunities and strategies that help ninth grade students complete sufficient credits to be on track to graduate in four years.

D. For the purposes of this section, a student is deemed on track to graduate in four years if the student does both of the following:

Completes at least twenty-five percent of the credits required for the student to graduate from high school by the end of ninth grade.
Does not earn more than one letter grade of F, or the equivalent, in ninth grade.

E. The ninth grade on-track grant program fund is established consisting of legislative appropriations, gifts, grants and donations. The department shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall use monies in the fund to provide grants pursuant to subsection A of this section.

§ 15-249.15 Arizona industry credentials incentive program; distributions; report; fund

A. The Arizona industry credentials incentive program is established within the department of education to provide incentive awards to school districts, charter schools and career technical education districts for high school graduates who obtain a certification, credential or license that is accepted by a vocation or industry through a career technical education course or program.

B. On or before September 1 of each year, the office of economic opportunity shall provide an in-demand education list to the department of education that includes information related to wages, business growth and job openings and that identifies and ranks the top occupations in each industry that address a critical statewide, regional or local economic need. The office of economic opportunity shall incorporate industry feedback as part of the development of the in-demand education list.

C. On or before October 1 of each year, the department of education shall align the office of economic opportunity in-demand education list to the career technical education industry credentials list of approved career technical education programs.

D. On or before February 1 of each year, the department of education shall convene a quality skills commission to be composed of individuals from the office of economic opportunity, the department of education, the Arizona commerce authority, school districts, charter schools, career technical education districts, industry partners and business organizations to review a separate career technical education industry credentials list that includes only those certificates, credentials and licenses that would qualify for the Arizona industry credentials incentive program.

E. On or before March 1 of each year, the department of education shall publish and post on its website and submit to the joint legislative budget committee for review the career technical education industry credentials list that includes only those certificates, credentials and licenses that would qualify for the Arizona industry credentials incentive program in the subsequent school year.

F. Beginning in fiscal year 2020-2021, the department of education shall pay an incentive award of $1,000 to school districts, charter schools and career technical education districts for each student who meets both of the following conditions:

Demonstrates completion of high school graduation requirements pursuant to section 15-701.01 in the second school year preceding the budget year.
Completes a program resulting in a qualifying certificate, credential or license that is included on the career technical education industry credentials list pursuant to subsection E of this section or that was included on the list at the time the student began the program.

G. If the statewide sum of the incentive awards pursuant to subsection F of this section exceeds the amount of available monies appropriated for incentive awards, the monies shall be reduced proportionally to cover all eligible incentive awardees. A student at the public school may generate only one $1,000 award even if the student earns more than one qualified certificate, credential or license. The department of education shall disburse the award amount for a student to the school district, charter school or career technical education district that the student attended for coursework related to the industry credential award being paid on that student's behalf. If the student received that coursework at more than one school district, charter school or career technical education district, the award amount shall be allocated on a pro rata basis in a manner determined by the department of education.

H. A school district, charter school or career technical education district that receives an incentive award pursuant to this section shall spend these monies on any of the following:

For instructional costs and professional development for a career technical education program teacher to become a certifying professional for an approved certificate, credential or license.
To offset the students' cost of certification, credentialing or licensure.
For developmental costs related to creating, expanding or improving an approved site of a certificate, credential or license career technical education program or course.
For instructional hardware, software or supplies required for the certification, credentialing or licensure.
For career exploration in any school grade and awareness activities for parents, students and the community for the approved sectors.

I. Any incentive award monies received by a school district, charter school or career technical education district pursuant to this section shall be separately accounted for in the school district's, charter school's or career technical education district's annual financial report within the career technical education line item with the intent that school districts, charter schools and career technical education districts report on the expenditures as specified in subsection H of this section.

J. Subject to review and approval of the state board of education, the department of education shall establish the format of the online application, the submission of data, the reporting requirements, including submittal of data through a designated online portal, and audit procedures for the Arizona industry credentials incentive program.

K. Subject to the review and approval of the state board of education, on or before February 1 of each year, the department of education shall submit to the president of the senate, the speaker of the house of representatives, the governor and the secretary of state a report that summarizes all of the following for the prior fiscal year:

The number of students at each school, by grade level, who were enrolled in a career technical education program or course with a qualifying certificate, credential or license.
The number of high school graduates at each school who completed a career technical education program and obtained a qualifying certificate, credential or license.
The incentive awards distributed to each school.
The number and types of certificates, credentials and licenses obtained by students who received incentive awards.

L. The Arizona industry credentials incentive fund is established consisting of monies appropriated for this purpose. The department of education shall administer the fund. Monies in the fund are continuously appropriated. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 15-249.16 Statutory handbooks of parental rights; posting

A. The department of education shall develop and post on its website a statutory handbook of parental rights outlining the rights of parents of children enrolled in school districts and a statutory handbook of parental rights outlining the rights of parents of children enrolled in charter schools.

B. The statutory handbook of parental rights outlining the rights of parents of children enrolled in school districts shall consist of the text of the following statutes:

Title 1, chapter 6.
Section 15-102.
Section 15-110.
Section 15-113.
Section 15-117.
Section 15-351.
Section 15-721.
Section 15-722.
Section 15-730.

C. The statutory handbook of parental rights outlining the rights of parents of children enrolled in charter schools shall consist of the text of the following statutes:

Title 1, chapter 6.
Section 15-110.
Section 15-113.
Section 15-117.

D. Each school district and charter school in this state shall post on a publicly accessible portion of its website a link to the statutory handbook of parental rights developed pursuant to subsection A of this section.

§ 15-249.17 Code writers initiative program; grants; annual report

A. The code writers initiative program is established within the department of education to provide grants on a competitive basis pursuant to title 41, chapter 24, article 1 for the purposes prescribed in this section. The Indian education advisory council in the department of education shall evaluate grant applications and make award recommendations to the department. The department shall maximize available funding by awarding grants to participants that will leverage state monies by securing gifts, grants and donations from other sources.

B. Grantees in the code writers initiative program shall:

Introduce a computer code writing curriculum for students in grades nine through twelve.
Deliver a technology-focused education to Native American students that will prepare the students for the global economy. The instruction may be offered through after-school programming.
Instruct Native American students in computer code writing and work with industry partners to develop internships and programs that will be made available to students who complete the program curriculum.
Instruct teachers and administrators in a technology-focused curriculum.
Develop assessment metrics to measure progress to be used to determine the initiative's effectiveness.
Install audiovisual distance learning equipment at key delivery points to maximize the number of program participants.
Determine the impacts from the initiative's curriculum and teacher instruction on students' standardized test scores and graduation rates.
On or before September 1 of each year, submit an annual report to the president of the senate, the speaker of the house of representatives, the Indian education advisory council and the department of education containing detailed information relating to the requirements of this subsection for the most recent school year.

§ 15-249.18 Invest in postsecondary success program; vendor; fund; rules

A. The invest in postsecondary success program is established. The department of education shall administer the program.

B. The invest in postsecondary success program shall contract with a vendor that is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and that is selected through a request for proposals. The vendor shall provide student support to program participants under this section. The vendor selected pursuant to this subsection must meet all of the following requirements:

Have administered each of the following for at least five previous academic years:

(a) College match savings accounts in which a student's contributions are matched by $8 for each dollar the student deposits per academic year. The college match savings accounts described in this subdivision must be in the form of a custodial account or 529 plan.

(b) Financial capability training that addresses budgeting, managing student debt, savings, debit management, credit card use, retirement readiness and credit reports.

(c) Workforce readiness training that addresses businesses mentoring, job shadowing, interviewing and resume skills and career exploration.

Have served at least two thousand students in the past ten years.
Currently support multiple student pathways by partnering with institutions of higher education, including community colleges, universities and career and technical education programs.

C. To participate in the program, students may apply to the department of education in a manner prescribed by the department. The department shall establish program eligibility criteria. Each program participant shall open a college match savings account with the vendor that is selected pursuant to subsection B of this section.

D. The vendor selected pursuant to subsection B of this section shall administer college match savings accounts for program participants and provide program participants with financial capability training and workforce readiness training as described in subsection B, paragraph 1 of this section.

E. The invest in postsecondary success program fund is established consisting of legislative appropriations. The department of education shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall use monies in the fund for the purposes of administering the program and for distributing monies to the vendor selected pursuant to subsection B of this section. The vendor shall use any monies received from the fund for the purposes of this section.

F. The department of education may adopt rules for the purposes of this section.

§ 15-249.19 Water safety courses; swimming lessons; information; providers; posting; parental notification; definition

A. Before the 2025-2026 school year, the department of education shall compile and make available on the department's website both of the following:

Information on the role of water safety education courses and swimming lessons in saving lives.
A list of local providers of water safety courses or swimming lessons, or both, that result in certification, including providers that offer water safety courses or swimming lessons, or both, for free or at a reduced price.

B. Beginning in the 2025-2026 school year, each school district and charter school shall provide to each parent who initially enrolls a child in the school district or charter school the webpage address for the information compiled by the department of education pursuant to subsection A of this section.

C. For the purposes of this section, "water safety course" means age-appropriate education that is intended to promote safety in, on and around bodies of water and to reduce the risk of injury or drowning.

Article 3 Superintendent of Public Instruction

§ 15-251 Powers and duties

The superintendent of public instruction shall:

Superintend the schools of this state.
Request the auditor general to investigate when necessary the accounts of school monies kept by any state, county or district officer.
Subject to supervision by the state board of education, apportion to the several counties the monies to which each county is entitled for the year. Apportionment shall be made as provided in chapter 9 of this title.
Execute, under the direction of the state board of education, the policies that have been decided on by the state board.
Direct the performance of executive, administrative or ministerial functions by the department of education or divisions or employees of the department.
Provide information to the state board of education related to the powers and duties set forth in section 15-203.

§ 15-252 Powers and duties; publications; payment of claims for printing

A. The superintendent of public instruction shall:

Print as needed in pamphlet form the laws relating to schools, including model forms of which the superintendent is unable to supply blanks, and supply copies of the pamphlets to school officers and teachers, school libraries and the Arizona state library, archives and public records.
Prepare, print and distribute pamphlets on subjects the state board of education directs, including school sanitation, school architecture and an enumeration of the school holidays established by law.
Prepare, print and distribute through the county school superintendents blank forms and school registers, with instructions and rules as to their use, to teachers and officers charged with administration of laws pertaining to schools.
Print and distribute the courses of study prescribed by the state board of education.
Prepare and print blank forms for teachers' certificates.

B. The superintendent of public instruction may prepare and publish on the web site maintained by the department of education a list of the top elementary schools in this state, the top junior high or middle schools in this state, the top high schools in this state and the top charter schools in this state based on the school's academic gains according to measures selected by the department of education. The number of top schools determined by the department of education in the 2007-2008 school year shall be limited to the top fifty schools in each category prescribed in this subsection. After the 2007-2008 school year, the department of education may include more than fifty schools in any category prescribed in this subsection if more than fifty schools in that category meet the selection criteria established for the top fifty schools in that category in the 2007-2008 school year. Academic gains shall be expressed in terms of percentile ranking in percentile points and shall be appropriately weighted for scientific validity. The superintendent of public instruction may make technical adjustments to the information prescribed in this subsection that are necessary for purposes of comparability of data, and the superintendent shall post an explanation of these technical adjustments on the department's web site. The superintendent may measure and post the following information with respect to the top fifty schools in each category prescribed in this subsection:

If the school provides instruction in kindergarten programs and grades one and two, a separate measurement of the school's academic gains in kindergarten programs and in grades one and two.
The percentage of parents of pupils who are enrolled at the school who categorize the school as excellent on a survey of parental satisfaction with the school.
The percentage of pupils who are enrolled at the school and who categorize the school as excellent on a survey of pupil satisfaction with the school.
The percentage of teachers who are employed at the school and who categorize the school as excellent on a survey of teacher satisfaction with the school.

C. Claims for the printing of laws and reports of the superintendent shall be approved by the superintendent and paid as other claims against the state are paid from appropriations for the state board of education.

§ 15-253 Legal opinions relating to school matters

A. The superintendent of public instruction shall:

Furnish copies of the attorney general opinions, including opinions of the county attorneys which have been submitted to the attorney general for review as provided in subsection B, relating to school matters to all county attorneys, county school superintendents and to other interested persons who request copies.
Require each county school superintendent to furnish copies of all attorney general opinions relating to school matters to all school districts in his county.

B. For the purposes set forth in subsection A, the attorney general shall promptly furnish copies of opinions relating to school matters to the superintendent of public instruction. Each county attorney shall promptly transmit a copy of his opinion relating to school matters to the attorney general who shall concur, revise or decline to review the opinion of the county attorney. If the attorney general does not concur, revise or decline to review the county attorney's opinion within sixty days from its receipt, the opinion shall be deemed affirmed. The opinion of the attorney general shall prevail.

§ 15-255 Annual report; contents; definition

A. The superintendent of public instruction shall make a report to the governor and the legislature on or before January 15 each year. The report shall be in printed form.

B. The report shall contain:

A full statement of the condition and amount of all funds and property apportioned for the purpose of education.
The total current expenditures per pupil and separate per pupil amounts for classroom supplies, classroom instruction excluding classroom supplies, district and school administration, support services-students, and all other support services and operations. These per pupil amounts shall be calculated for the state by type of district or school. The method of calculating these per pupil amounts shall be as prescribed in the uniform system of financial records.
The number and grades of schools in each county.
The number of children attending schools.
The average number of children who have attended the schools during each of the two years previous to July 1 of the year in which the report is made.
The number of children attending private schools.
The amount of school monies derived from county taxes.
The amount of school monies derived other than by county taxes.
The amount of federal monies that was received during the previous year and that was specified for Indian education aid and emergency operational aid.
The amounts expended for salaries of teachers and superintendents and for building of schools.
A statement of plans for the management of schools.
Such other information relating to the educational interests of this state as the superintendent deems expedient.

C. In addition to the printed report required by subsections A and B of this section, the superintendent of public instruction shall make available in electronic form a supplemental report that provides detail regarding current expenditures by function code for each individual school district. For the purposes of this subsection, "function code" means the function codes defined in the uniform system of financial records provided for in section 15-272.

D. For the purposes of this section, "type of district or school" means accommodation school, unified school district, common school district not within the boundaries of a high school district, common school district within the boundaries of a high school district, high school district, career technical education district and charter school.

§ 15-256 Waivers; federal education flexibility partnership act

Consistent with the purposes, intent and eligibility requirements of the education flexibility partnership act (20 United States Code section 5891), the superintendent of public instruction may issue to schools and school districts waivers of state statutory requirements related to programs described in 20 United States Code section 5891(b).

§ 15-257 Employee evaluation system

The superintendent of public instruction may establish a system to evaluate the performance of employees of the department of education.

§ 15-258 State seal of biliteracy program; requirements; diploma

A. The superintendent of public instruction shall establish a state seal of biliteracy program to recognize students who graduate from a school operated by a school district or a charter school located in this state and who have attained a high level of proficiency in one or more languages in addition to English.

B. The superintendent of public instruction shall:

Create a state seal of biliteracy, which shall be affixed to the diploma and noted on the transcript of a student to recognize that the student has met the requirements prescribed in this section.
Deliver the state seal of biliteracy to each public school district or charter school that participates in the program.

C. Any school district or charter school may voluntarily participate in the state seal of biliteracy program by notifying the superintendent of public instruction of the school district's or charter school's intent to participate in the program.

D. Each school district governing board or charter school governing body that participates in the state seal of biliteracy program shall:

Identify the students who have met the requirements to be awarded the state seal of biliteracy.
Affix the state seal of biliteracy to the diploma and note the receipt of the state seal of biliteracy on the transcript of each student who meets those requirements.

E. The state board of education, in collaboration with the department of education, shall adopt a list of assessments using research-based methodology to determine a student's proficiency in a language other than English and may adopt rules as necessary to carry out the purposes of this section.

F. A school district or charter school that participates in the state seal of biliteracy program established pursuant to this section shall award a student, on graduation from high school, a high school diploma with a state seal of biliteracy if the student meets all of the following requirements:

Successfully completes all English language arts requirements for graduation with an overall grade point average in those classes of 2.0 or higher on a 4.0 scale, or the equivalent.
Passes an examination in English language arts.
Demonstrates proficiency in one or more languages other than English by meeting the requirements adopted pursuant to subsection E of this section.
If the student has a primary language other than English, obtains a score of proficient or higher based on the English language proficiency standards, pursuant to section 15-756.

§ 15-259 State seal of civics literacy program; requirements; diploma

A. The superintendent of public instruction shall establish a state seal of civics literacy program to recognize students who graduate from a school operated by a school district or a charter school located in this state and who have attained a high level of proficiency in civics.

B. The superintendent of public instruction shall:

Create a state seal of civics literacy that shall be affixed to the diploma and noted on the transcript of a student to recognize that the student has met the requirements prescribed in this section.
Deliver the state seal of civics literacy to each public school district or charter school that participates in the program.

C. Any school district or charter school may voluntarily participate in the state seal of civics literacy program by notifying the superintendent of public instruction of the school district's or charter school's intent to participate in the program.

D. Each school district governing board or charter school governing body that participates in the state seal of civics literacy program shall:

Identify the students who have met the requirements to be awarded the state seal of civics literacy.
Affix the state seal of civics literacy to the diploma and note the receipt of the state seal of civics literacy on the transcript of each student who meets those requirements.

E. In addition to the social studies graduation requirements prescribed in section 15-701.01, the state board of education, in collaboration with the school of civic and economic thought and leadership at Arizona state university and other experts on fundamental civic knowledge and civic literacy at universities in this state, shall adopt a list of assessments using research-based methodology to determine a student's proficiency in civics and may adopt rules as necessary to carry out the purposes of this section.

F. A school district or charter school that participates in the state seal of civics literacy program established pursuant to this section shall award a student, on graduation from high school, a high school diploma with a state seal of civics literacy if the student meets both of the following requirements:

Successfully completes all social studies requirements for graduation with an overall grade point average in those classes of 3.0 or higher on a 4.0 scale, or the equivalent.
Demonstrates proficiency in civics by meeting the requirements adopted pursuant to subsection E of this section.

§ 15-260 State seal of personal finance proficiency program; requirements; diploma

A. The superintendent of public instruction shall establish a state seal of personal finance proficiency program to recognize students who graduate from a school operated by a school district or a charter school located in this state and who have attained a high level of proficiency in personal finance.

B. The superintendent of public instruction shall:

Create a state seal of personal finance proficiency, which shall be affixed to the diploma and noted on the transcript of a student to recognize that the student has met the requirements prescribed in this section.
Deliver the state seal of personal finance proficiency to each public school district or charter school that participates in the program.

C. Any school district or charter school may voluntarily participate in the state seal of personal finance proficiency program by notifying the superintendent of public instruction of the school district's or charter school's intent to participate in the program.

D. Each school district governing board or charter school governing body that participates in the state seal of personal finance proficiency program shall:

Identify the students who have met the requirements to be awarded the state seal of personal finance proficiency.
Affix the state seal of personal finance proficiency to the diploma and note the receipt of the state seal of personal finance proficiency on the transcript of each student who meets those requirements.

E. The state board of education, in collaboration with any organization with expertise in finance or financial literacy, shall adopt minimum requirements for the program established pursuant to this section and may adopt rules as necessary to carry out the purposes of this section.

F. A school district or charter school that participates in the state seal of personal finance proficiency program established pursuant to this section shall award a student, on graduation from high school, a high school diploma with a state seal of personal finance proficiency if the student meets both of the following requirements:

Successfully completes all social studies requirements for graduation with an overall grade point average in those classes of 3.0 or higher on a 4.0 scale, or the equivalent.
Demonstrates proficiency in personal finance by meeting the requirements adopted pursuant to subsection E of this section.

§ 15-261 State seal of arts proficiency program; requirements; diploma

A. The superintendent of public instruction shall establish a state seal of arts proficiency program to recognize students who graduate from a school operated by a school district or a charter school located in this state and who have attained a high level of proficiency in the arts.

B. The superintendent of public instruction shall:

Create a state seal of arts proficiency, which shall be affixed to the diploma and noted on the transcript of a student to recognize that the student has met the requirements prescribed in this section.
Deliver the state seal of arts proficiency to each public school district or charter school that participates in the program.

C. Any school district or charter school may voluntarily participate in the state seal of arts proficiency program by notifying the superintendent of public instruction of the school district's or charter school's intent to participate in the program.

D. Each school district governing board or charter school governing body that participates in the state seal of arts proficiency program shall:

Identify the students who have met the requirements to be awarded the state seal of arts proficiency.
Affix the state seal of arts proficiency to the diploma and note the receipt of the state seal of arts proficiency on the transcript of each student who meets those requirements.

E. The state board of education, in collaboration with the department of education and experts in arts education, shall adopt minimum requirements for the program established pursuant to this section and may adopt rules as necessary to carry out the purposes of this section.

F. A school district or charter school that participates in the state seal of arts proficiency program established pursuant to this section shall award a student, on graduation from high school, a high school diploma with a state seal of arts proficiency if the student demonstrates proficiency in arts by meeting the requirements adopted pursuant to this section.

Article 4 Uniform System of Financial Records

§ 15-271 Duties of auditor general for uniform financial records system; reporting requirements

A. The auditor general shall determine the accounting systems, accounting methods and accounting procedures for school districts to use.

B. The auditor general in conjunction with the department of education shall prescribe a uniform system of financial records for all school districts to use each fiscal year.

C. The uniform system of financial records prescribed by the auditor general shall:

Provide for adjustment in consideration of existing capabilities available at a reasonable cost to school districts.
Allow schools to maintain necessary records at a minimum cost.
Prescribe guidelines applicable to procurement practices for use by school districts for amounts less than those prescribed in section 15-213, subsection A.
Prescribe methods for apportioning revenues, including apportioning various revenues to maintenance and operations, capital outlay and adjacent ways.
Prescribe methods for apportioning revenues in excess of the revenue control limit in the same manner as the revenues in paragraph 4 of this subsection.
Prescribe guidelines for apportioning the pupil enrollment and attendance as provided in section 15-808, subsection F.
Provide the department of education, the auditor general, the governor and the legislature with sufficient uniform information to assist in determining equitable distribution of state aid to school districts.
Provide information, including at a minimum:

(a) The student count and maintenance and operation expenditures with separate subsections for regular education programs, special education programs and operating expenditures for pupil transportation.

(b) Capital outlay expenditures.

D. The auditor general shall inform any school district that fails to establish and maintain the uniform system of financial records and shall detail in writing the deficiencies of the school district system giving the district ninety days to correct the deficiencies.

E. The auditor general shall report to the department of education and the state board of education any school district that either fails to establish and maintain the uniform system of financial records prescribed by the auditor general or fails to correct deficiencies in the system within ninety days after receiving notice of the deficiencies. The auditor general shall detail in writing the deficiencies of the school district system in the auditor general's report to the department and the state board.

F. A school district may but is not required to maintain or provide financial records other than those prescribed by the auditor general.

§ 15-272 Duties of department of education for uniform system of financial records

A. The department of education shall advise and consult with the auditor general in the preparation and implementation of a uniform system of financial records.

B. The state board of education, on report from the auditor general, shall determine whether school districts are maintaining the uniform system of financial records. If the state board of education determines that a school district is not in compliance with the uniform system of financial records or has failed to correct a deficiency within ninety days after receiving notice from the auditor general, the state board of education shall direct the superintendent of public instruction to withhold up to ten per cent of the portion of state monies to the school district for each violation from the date of the determination until such time as the auditor general reports compliance with the uniform system of financial records. The auditor general and the department of education shall assist the school district to achieve compliance during such period.

C. The general budget limit and maintenance and operations section of the budget for the current year and for the budget year if the school district is not in compliance before the end of the current year, shall be reduced by the amount determined in subsection B until the state board of education determines that the school district is in compliance.

D. If compliance is determined by the state board of education in the same year as the determination of noncompliance or in the first year after the fiscal year of the determination of noncompliance, the resulting adjustment to budgeted maintenance and operations and to the general budget limit may be applied to the fiscal year of the determination of noncompliance equal to the amount adjusted in that fiscal year or to the current year equal to the amount adjusted in the current year. Previously withheld monies that resulted from the determination of noncompliance shall be returned in the year compliance is determined.

Chapter 3 Local Governance of Schools

Article 1 County School Superintendent

§ 15-301 Office of county school superintendent; qualifications; travel expenses

A. A person is eligible for election as county school superintendent if the person holds a basic or standard certificate to teach in the schools of this state.

B. In addition to the salary allowed by law, the county school superintendent is eligible for reimbursement of travel expenses.

C. The office of county school superintendent is designated as a local education agency for the purpose of serving as an education service agency that is eligible to receive and spend local, state and federal monies to provide programs and services to school districts, charter schools, county free library districts, municipal libraries, nonprofit and public libraries, tribal libraries, private schools and tribal schools within that county.

D. The office of county school superintendent shall be under the jurisdiction of the elected county school superintendent.

§ 15-302 Powers and duties

A. The county school superintendent shall:

Distribute all laws, reports, circulars, instructions and forms that the county school superintendent may receive for the use of school officers.
Record all official acts.
Appoint governing board members of school districts to fill all vacancies, but the term of the appointment shall be until the next regular election for governing board members, at which time a successor shall be elected to serve the unexpired portion of the term. A person who is subject to registration as a sex offender in this state or in any other jurisdiction is ineligible for appointment under this paragraph. Within thirty days after notification of a vacancy, the school district governing board may submit up to three names to the county school superintendent for consideration of an appointment to fill the vacancy. The county school superintendent is not required to appoint a governing board member from the list of names submitted by the governing board. The county school superintendent, if the county school superintendent deems it in the best interest of the community, may call a special election to fill the vacancies. If an election is called, the newly elected member shall serve for the remainder of the unexpired portion of the term.
Make reports, when directed by the superintendent of public instruction, showing matters relating to schools in the county as may be required on the forms furnished by the superintendent of public instruction.
Have such powers and perform such duties as otherwise prescribed by law.
On or before October 1 of each year, report to the superintendent of public instruction the amount of monies received from state school funds, special school district taxes and other sources, the total expenditures for school purposes and the balance on hand to the credit of each school district at the close of the school year.
Contract with the board of supervisors for the board of supervisors to conduct all regular school district elections.
Be responsible, in cooperation with the school district governing boards and the board of supervisors, for all special school district elections.
Maintain teacher and administrator certification records of effective dates and expiration dates of teachers' and administrators' certificates in compliance with guidelines prescribed in the uniform system of financial records for those school districts for which the county school superintendent is the fiscal agent. The county school superintendent shall not draw a warrant in payment of a teacher's, substitute teacher's or administrator's salary unless the teacher, substitute teacher or administrator is legally certified during the fiscal year in which the term for payment is demanded.
Notify a school district three years before the expiration of a revenue control limit override that the school district's budget must be adjusted in the final two years of the override pursuant to section 15-481, subsections P and Q, if the voters do not approve another override.
In collaboration with the department of education and other state agencies, assist school districts, charter schools, county free library districts, municipal libraries, nonprofit and public libraries, tribal libraries, private schools and tribal schools on using student data, staff development, curriculum alignment and technology to improve student performance.
Assist schools in meeting yearly adequate progress goals as defined by criteria established by the state board of education and implemented by the department of education.

B. At the request of school districts and charter schools, the county school superintendent may provide discretionary programs in addition to the programs prescribed in subsection A of this section.

C. The county school superintendent may:

Provide the services prescribed in subsections A and B of this section in the county or jointly with two or more counties pursuant to title 11, chapter 7, article 3.
Review the operations and finances, including expenditures, of any school district that is located in the county.

D. Each county school superintendent may establish an advisory committee to the office of the county school superintendent.

§ 15-303 Apportionment of funds

The county school superintendent shall apportion the school monies to each school district of the county. He shall give written notification to the county treasurer of the amount apportioned to each school district and to the governing board of the school district of the amount apportioned to the district.

§ 15-304 Warrants; limitations; definition

A. The county school superintendent, on the voucher of the governing board of a school district, shall draw the county school superintendent's warrant on the county treasurer for all necessary expenses against the school fund of the district. The warrants shall be drawn in the order in which the vouchers are filed in the county school superintendent's office. In lieu of drawing warrants, the county school superintendent may issue an electronic transfer pursuant to section 11-493 for expenditures authorized by this section. Unless the department of education notifies the county school superintendent in writing pursuant to section 15-107 that budget capacity exists, a warrant shall not be drawn for an expenditure from the maintenance and operation, capital outlay, adjacent ways and federal and state grant funds for a purpose not included in the budget of the school district or for an expenditure in excess of the amount budgeted and not previously expended, except for expenditures authorized by the board of supervisors as provided in section 15-907. The county school superintendent shall not draw a warrant for an expenditure from any school district fund except the maintenance and operation, capital outlay or adjacent ways fund or federal and state grant funds unless sufficient cash is available in the fund according to the records of the county school superintendent. The county school superintendent may only draw a warrant for an expenditure from a federal or state grant fund when sufficient cash is not available in the grant fund if the county treasurer maintains the two accounts as provided in section 15-996, paragraph 1 and if the county school superintendent determines that the expenditures are included in the budget section of the approved grant application. Warrants may be processed through an electronic payment system.

B. A county school superintendent, within two business days, shall provide written notice to the department of education, if, in the county school superintendent's judgment, a school district has committed an overexpenditure as defined in section 15-107.

C. The state board of education shall require a county school superintendent who fails to comply with the notification requirements of subsection B of this section to complete professional development training. The state board of education may also require the employees of a county school superintendent who are involved in school district finances and budgeting to complete professional development training. The professional development training shall be selected from a list approved by the state board of education, and the cost of the professional development training shall be paid by the county school superintendent. County school superintendents and employees of the county school superintendent who are involved in district finances and budgeting shall complete at least twelve hours of professional development training within one hundred twenty days after the decision of the state board of education to require professional development training of the county school superintendent and the employees of the county school superintendent who are involved in district finances and budgeting.

D. A county school superintendent who fails to complete the professional development training within the time prescribed in subsection C of this section is guilty of nonfeasance in office, and the state board of education shall forward a complaint to the attorney general. The attorney general may bring an action in superior court against a county school superintendent for failure to comply with the professional development training requirements prescribed in subsection C of this section. If a court determines that a county school superintendent failed to comply with the professional development training requirements prescribed in subsection C of this section, the court shall issue an order removing the county school superintendent from office.

E. A county school superintendent who fails to comply with the notification requirements of subsection B of this section more than once is guilty of unprofessional conduct. The attorney general may commence an action in superior court to enforce this subsection against any county school superintendent who violates the notification requirements of subsection B of this section more than once. If the court determines that a county school superintendent is guilty of unprofessional conduct, the court shall issue an order directing the removal of the county school superintendent from office.

F. Any vacancy in the office of county school superintendent shall be filled in the manner prescribed by section 11-251.

G. For the purposes of this section, "voucher" means a summary cover sheet and either copies of the invoices of the expenditure or a listing of the invoice detail.

§ 15-305 Accommodation schools; optional high school equivalency preparation instruction; requirements; definition

A. A county school superintendent may offer high school equivalency preparation instruction through an accommodation school to students who are enrolled in the accommodation school in grade twelve, subject to the following requirements:

Before providing high school equivalency preparation instruction pursuant to this section, the county school superintendent shall obtain written consent from the student's parent or, if emancipated, the student.
Each student who participates in high school equivalency preparation instruction pursuant to this section must also be enrolled in a career and technical education course or program that leads to a certification, license or credential.

B. For the purposes of this section, "high school equivalency preparation instruction" means instruction that prepares students to pass the equivalency test adopted by the state board of education pursuant to section 15-702.

§ 15-308 Providing educational services of an accommodation school

A. The county school superintendent may provide educational services of an accommodation school to the school districts in the county using the facilities of the accommodation school. The county school superintendent shall administer the program and shall develop a fiscal year budget according to the process specified for school districts.

B. A county may offer educational services to homeless children or alternative education programs as defined in section 15-796 through an accommodation school.

C. Until January 1, 2010, the county board of supervisors shall not provide for necessary expenses pursuant to section 15-1001, subsection A, paragraph 5, without an intergovernmental agreement with the county school superintendent which shall set forth the county’s responsibility, if any, for financial contributions to the accommodation school budget, any conditions related to the expenditures and any financial reporting required of the county school superintendent. The county school superintendent shall provide a report to the county board of supervisors by April 1 of each year, on the county school superintendent’s plans for the provision of accommodation school services for the next school year and the projected number of students at each accommodation school in the district. By June 1 of each year, the county school superintendent shall provide the county board of supervisors with estimated revenues from the state and other financial information the county board of supervisors may request.

Article 2 Organizational Powers of School District Governing Boards

§ 15-321 Organization; election of officers of the board; meetings; execution of warrants; exemption

A. For the purpose of organizing the governing board, the board shall meet at the most convenient public facility in the school district. If a public facility is not available within the district, the governing board may meet at any available public facility that is convenient to all governing board members, regardless of the county or school district in which the facility is located. The governing board shall meet in January next following the election.

B. At the organization meeting the governing board shall elect from among the membership of the board a president.

C. For the purposes of regular meetings of the governing board, the board shall meet at the most convenient public facility in the school district. If a public facility is not available within the district, the governing board may meet at any available public facility that is convenient to all governing board members, regardless of the county or school district in which the facility is located.

D. The board shall prescribe rules for its own government. It shall hold a regular meeting at least once each month during the regular school year and may hold other meetings as often as called. If action has been taken and documents approved at a meeting, they may be signed subsequently by individual board members.

E. Business shall be conducted at regular or special meetings. Notice of a special meeting, and of the hour for a regular meeting if no hour is fixed by a rule of the board, shall be delivered personally or by telephone.

F. Notwithstanding section 1-216, if there is a vacancy or vacancies on the governing board, a majority of the remaining members of the governing board constitute a quorum for the transaction of business, except that a single member of the governing board does not constitute a quorum.

G. An order on a county school superintendent for a salary or other expense shall be signed by the governing board. An order for a salary or other expense may be signed between board meetings if a resolution to that effect has been passed before the signing at a regular or special meeting of the governing board and the order is ratified by the board at the next regular or special meeting of the governing board.

H. This section does not apply to county school superintendents in the conduct of an accommodation school.

§ 15-322 Organization of the governing board of a consolidated school district

A. A meeting of the governing board of the consolidated school district shall be called by the county school superintendent within ten days after their election.

B. At the meeting provided by subsection A the members shall organize the board of the consolidated school district.

They shall receive from the boards of the school districts which have been consolidated all property, accounts and records of such boards.
Property of the several school districts shall become the property of the newly formed school district.
Balances or deficits in the funds of the several school districts consolidated shall become the balances or deficits of the new school district.
All bonded indebtedness of the school districts consolidated shall become the bonded indebtedness of the new school district.

§ 15-323 Governing board member; voting eligibility; purchases from board member

A. Notwithstanding any other provision of law, a governing board member is eligible to vote on any budgetary, personnel or other question which comes before the board, except:

It shall be unlawful for a member to vote on a specific item which concerns the appointment, employment or remuneration of such member or any person related to such member who is a spouse or a dependent as defined in section 43-1001.
No member may vote on the employment of a person who is a member of the governing board or who is the spouse of a member of the governing board and whose membership on the board and employment are prohibited by section 15-421, subsection D.

B. The governing board may make purchases from a board member if the transaction does not exceed three hundred dollars, the total purchases from any board member by the board within any twelve month period do not exceed one thousand dollars and the board has by majority vote adopted within the preceding twelve month period a policy authorizing such purchases.

C. Notwithstanding subsection B of this section, the governing board of a school district having a student count of fewer than three thousand may make purchases from a board member in any amount as provided in this subsection and section 15-213. The governing board must approve each purchase from a board member, and the amount of the purchase or contract for purchase shall be included in the minutes of the meeting at which the governing board approves the purchase.

§ 15-326 Capacity to sue and be sued and to hold and convey property

The governing board of a school district shall in the district name, as specified in section 15-441, subsection B:

Sue and be sued.
Hold and convey property for the use and benefit of the district.

§ 15-327 Advisory meetings of school district electors; notice; procedure; effect

A. The governing board may call meetings of the qualified school electors of the school district for consultation concerning any litigation in which the district is engaged or is likely to become engaged, or concerning any other affairs of the district not otherwise provided for.

B. Upon a petition of fifteen per cent or one thousand of the qualified electors of the school district as shown by the last regular school election, the governing board shall call such meeting.

C. Meetings of electors shall be called by posting notices in three public places in the school district, including the door of the school building, for not less than ten days preceding the meeting. The notices shall specify the purpose for which the meeting is called, and no other business shall be transacted at the meeting.

D. A school district meeting shall be called to order and presided over by the president of the governing board or, in his absence, by an elector chosen by the electors present. At the meetings all voting shall be by ballot of the qualified school electors. In all matters the meeting may exercise advisory power only.

§ 15-328 Single administrative program

A. Any common school district and any high school district having common governing board membership and coterminous district boundaries may by resolution of each board provide for the operation of such school districts under a single administrative program.

B. Operation of school districts under a single administrative program shall be commenced on July 1 of any year. The county school superintendent and the superintendent of public instruction shall be notified at least forty-five days before the beginning of a fiscal year of intention to operate under a single administrative program.

C. For purposes of this section, "single administrative program" means that a common school district and a high school district as provided in subsection A may combine administrative functions including but not limited to land acquisition, construction of school buildings, employment of all persons engaged in the administration and operation of the common school district and the high school district, and purchase and use of equipment and services, provided such expenditures are properly prorated to the separate accounts of the common school districts and the high school districts. The proration shall also apply for budget purposes.

D. All other provisions of this title shall be complied with by each of the districts, except that for the purpose of school administration a single administrative program may be conducted.

Article 3 Powers and Duties of School District Governing Boards

§ 15-341 General powers and duties; immunity; delegation

A. Each school district governing board shall:

Prescribe and enforce policies and procedures to govern the schools that are not inconsistent with the laws or rules prescribed by the state board of education.
Exclude from schools all books, publications, papers or audiovisual materials of a sectarian, partisan or denominational character. This paragraph does not prohibit the elective course allowed by section 15-717.01.
Manage and control the school property within its district, except that a district may enter into a partnership with an entity, including a charter school, another school district or a military base, to operate a school or offer educational services in a district building, including at a vacant or partially used building, or in any building on the entity's property pursuant to a written agreement between the parties.
Acquire school furniture, apparatus, equipment, library books and supplies for the schools to use.
Prescribe the curricula and criteria for the promotion and graduation of pupils as provided in sections 15-701 and 15-701.01.
Furnish, repair and insure, at full insurable value, the school property of the district.
Construct school buildings on approval by a vote of the district electors.
In the name of the district, convey property belonging to the district and sold by the board.
Purchase school sites when authorized by a vote of the district at an election conducted as nearly as practicable in the same manner as the election provided in section 15-481 and held on a date prescribed in section 15-491, subsection E, but such authorization shall not necessarily specify the site to be purchased and such authorization shall not be necessary to exchange unimproved property as provided in section 15-342, paragraph 23.
Construct, improve and furnish buildings used for school purposes when such buildings or premises are leased from the national park service.
Purchase school sites or construct, improve and furnish school buildings from the proceeds of the sale of school property only on approval by a vote of the district electors.
Hold pupils to strict account for disorderly conduct on school property.
Discipline students for disorderly conduct on the way to and from school.
Except as provided in section 15-1224, deposit all monies received by the district as gifts, grants and devises with the county treasurer who shall credit the deposits as designated in the uniform system of financial records. If not inconsistent with the terms of the gifts, grants and devises given, any balance remaining after expenditures for the intended purpose of the monies have been made shall be used to reduce school district taxes for the budget year, except that in the case of accommodation schools the county treasurer shall carry the balance forward for use by the county school superintendent for accommodation schools for the budget year.
Provide that, if a parent or legal guardian chooses not to accept a decision of the teacher as provided in paragraph 42 of this subsection, the parent or legal guardian may request in writing that the governing board review the teacher's decision. This paragraph does not release school districts from any liability relating to a child's promotion or retention.
Provide for adequate supervision over pupils in instructional and noninstructional activities by certificated or noncertificated personnel.
Use school monies received from the state and county school apportionment exclusively to pay salaries of teachers and other employees and contingent expenses of the district.
Annually report to the county school superintendent on or before October 1 in the manner and form and on the blanks prescribed by the superintendent of public instruction or county school superintendent. The board shall also report directly to the county school superintendent or the superintendent of public instruction whenever required.
Deposit all monies received by school districts other than student activities monies or monies from auxiliary operations as provided in sections 15-1125 and 15-1126 with the county treasurer to the credit of the school district except as provided in paragraph 20 of this subsection and sections 15-1223 and 15-1224, and the board shall spend the monies as provided by law for other school funds.
Establish bank accounts in which the board during a month may deposit miscellaneous monies received directly by the district. The board shall remit monies deposited in the bank accounts at least monthly to the county treasurer for deposit as provided in paragraph 19 of this subsection and in accordance with the uniform system of financial records.
Prescribe and enforce policies and procedures for disciplinary action against a teacher who engages in conduct that is a violation of the policies of the governing board but that is not cause for dismissal of the teacher or for revocation of the certificate of the teacher. Disciplinary action may include suspension without pay for a period of time not to exceed ten school days. Disciplinary action shall not include suspension with pay or suspension without pay for a period of time longer than ten school days. The procedures shall include notice, hearing and appeal provisions for violations that are cause for disciplinary action. The governing board may designate a person or persons to act on behalf of the board on these matters.
Prescribe and enforce policies and procedures for disciplinary action against an administrator who engages in conduct that is a violation of the policies of the governing board regarding duties of administrators but that is not cause for dismissal of the administrator or for revocation of the certificate of the administrator. Disciplinary action may include suspension without pay for a period of time not to exceed ten school days. Disciplinary action shall not include suspension with pay or suspension without pay for a period of time longer than ten school days. The procedures shall include notice, hearing and appeal provisions for violations that are cause for disciplinary action. The governing board may designate a person or persons to act on behalf of the board on these matters. For violations that are cause for dismissal, the provisions of notice, hearing and appeal in chapter 5, article 3 of this title apply. The filing of a timely request for a hearing suspends the imposition of a suspension without pay or a dismissal pending completion of the hearing.
Notwithstanding sections 13-3108 and 13-3120, prescribe and enforce policies and procedures that prohibit a person from carrying or possessing a weapon on school grounds unless the person is a peace officer or has obtained specific authorization from the school administrator.
Prescribe and enforce policies and procedures relating to the health and safety of all pupils participating in district-sponsored practice sessions or games or other interscholastic athletic activities, including:

(a) The provision of water.

(b) Guidelines, information and forms, developed in consultation with a statewide private entity that supervises interscholastic activities, to inform and educate coaches, pupils and parents of the dangers of concussions and head injuries and the risks of continued participation in athletic activity after a concussion. The policies and procedures shall require that, before a pupil participates in an athletic activity, the pupil and the pupil's parent sign an information form at least once each school year that states that the parent is aware of the nature and risk of concussion. The policies and procedures shall require that a pupil who is suspected of sustaining a concussion in a practice session, game or other interscholastic athletic activity be immediately removed from the athletic activity and that the pupil's parent or guardian be notified. A coach from the pupil's team or an official or a licensed health care provider may remove a pupil from play. A team parent may also remove the parent's own child from play. A pupil may return to play on the same day if a health care provider rules out a suspected concussion at the time the pupil is removed from play. On a subsequent day, the pupil may return to play if the pupil has been evaluated by and received written clearance to resume participation in athletic activity from a health care provider who has been trained in evaluating and managing concussions and head injuries. A health care provider who is a volunteer and who provides clearance to participate in athletic activity on the day of the suspected injury or on a subsequent day is immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this subdivision, except in cases of gross negligence or wanton or wilful neglect. A school district, school district employee, team coach, official or team volunteer or a parent or guardian of a team member is not subject to civil liability for any act, omission or policy undertaken in good faith to comply with the requirements of this subdivision or for a decision made or an action taken by a health care provider. A group or organization that uses property or facilities owned or operated by a school district for athletic activities shall comply with the requirements of this subdivision. A school district and its employees and volunteers are not subject to civil liability for any other person or organization's failure or alleged failure to comply with the requirements of this subdivision. This subdivision does not apply to teams that are based in another state and that participate in an athletic activity in this state. For the purposes of this subdivision, athletic activity does not include dance, rhythmic gymnastics, competitions or exhibitions of academic skills or knowledge or other similar forms of physical noncontact activities, civic activities or academic activities, whether engaged in for the purposes of competition or recreation. For the purposes of this subdivision, "health care provider" means a physician who is licensed pursuant to title 32, chapter 13, 14 or 17, an athletic trainer who is licensed pursuant to title 32, chapter 41, a nurse practitioner who is licensed pursuant to title 32, chapter 15, and a physician assistant who is licensed pursuant to title 32, chapter 25.

(c) Guidelines, information and forms that are developed in consultation with a statewide private entity that supervises interscholastic activities to inform and educate coaches, pupils and parents of the dangers of heat-related illnesses, sudden cardiac death and prescription opioid use. Before a pupil participates in any district-sponsored practice session or game or other interscholastic athletic activity, the pupil and the pupil's parent must be provided with information at least once each school year on the risks of heat-related illnesses, sudden cardiac death and prescription opioid addiction.

Establish an assessment, data gathering and reporting system as prescribed in chapter 7, article 3 of this title.
Provide special education programs and related services pursuant to section 15-764, subsection A to all children with disabilities as defined in section 15-761.
Administer competency tests prescribed by the state board of education for the graduation of pupils from high school.
Ensure that insurance coverage is secured for all construction projects for purposes of general liability, property damage and workers' compensation and secure performance and payment bonds for all construction projects.
Collect and maintain information about each current and former teacher's educational and teaching background and experience in a particular academic content subject area. A school district shall either post the information on the school district's website or make the information available for inspection on request of parents and guardians of pupils enrolled at a school. This paragraph does not require any school to release personally identifiable information in relation to any teacher, including the teacher's address, salary, social security number or telephone number.
Report to local law enforcement agencies any suspected crime against a person or property that is a serious offense as defined in section 13-706 or that involves a deadly weapon or dangerous instrument or serious physical injury and any conduct that poses a threat of death or serious physical injury to employees, students or anyone on the property of the school. This paragraph does not limit or preclude the reporting by a school district or an employee of a school district of suspected crimes other than those required to be reported by this paragraph. For the purposes of this paragraph, "dangerous instrument", "deadly weapon" and "serious physical injury" have the same meanings prescribed in section 13-105.
In conjunction with local law enforcement agencies and emergency response agencies, develop an emergency response plan for each school in the school district in accordance with minimum standards developed jointly by the department of education and the division of emergency management within the department of emergency and military affairs. Any emergency response plan developed pursuant to this paragraph must address how the school and emergency responders will communicate with and provide assistance to students with disabilities.
Provide written notice to the parents or guardians of all students enrolled in the school district at least ten days before a public meeting to discuss closing a school within the school district. The notice shall include the reasons for the proposed closure and the time and place of the meeting. The governing board shall fix a time for a public meeting on the proposed closure not less than ten days before voting in a public meeting to close the school. The school district governing board shall give notice of the time and place of the meeting. At the time and place designated in the notice, the school district governing board shall hear reasons for or against closing the school. The school district governing board is exempt from this paragraph if the governing board determines that the school shall be closed because it poses a danger to the health or safety of the pupils or employees of the school. A governing board may consult with the division of school facilities within the department of administration for technical assistance and for information on the impact of closing a school. The information provided from the division of school facilities within the department of administration shall not require the governing board to take or not take any action.
Incorporate instruction on Native American history into appropriate existing curricula.
Prescribe and enforce policies and procedures:

(a) Allowing pupils who have been diagnosed with anaphylaxis by a health care provider licensed pursuant to title 32, chapter 13, 14, 17 or 25 or by a registered nurse practitioner licensed and certified pursuant to title 32, chapter 15 to carry and self-administer emergency medications, including epinephrine delivery systems, while at school and at school-sponsored activities. The pupil's name on the prescription label on the medication container or on the medication device and annual written documentation from the pupil's parent or guardian to the school that authorizes possession and self-administration is sufficient proof that the pupil is entitled to possess and self-administer the medication. The policies shall require a pupil who uses an epinephrine delivery system while at school and at school-sponsored activities to notify the nurse or the designated school staff person of the use of the medication as soon as practicable. A school district and its employees are immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this subdivision, except in cases of wanton or wilful neglect.

(b) For the emergency administration of epinephrine delivery systems by a trained employee of a school district pursuant to section 15-157.

Allow the possession and self-administration of prescription medication for breathing disorders in handheld inhaler devices by pupils who have been prescribed that medication by a health care professional licensed pursuant to title 32. The pupil's name on the prescription label on the medication container or on the handheld inhaler device and annual written documentation from the pupil's parent or guardian to the school that authorizes possession and self-administration is sufficient proof that the pupil is entitled to possess and self-administer the medication. A school district and its employees are immune from civil liability with respect to all decisions made and actions taken that are based on a good faith implementation of the requirements of this paragraph.
Prescribe and enforce policies and procedures to prohibit pupils from harassing, intimidating and bullying other pupils on school grounds, on school property, on school buses, at school bus stops, at school-sponsored events and activities and through the use of electronic technology or electronic communication on school computers, networks, forums and mailing lists that include the following components:

(a) A procedure for pupils, parents and school district employees to confidentially report to school officials incidents of harassment, intimidation or bullying. The school shall make available written forms designed to provide a full and detailed description of the incident and any other relevant information about the incident.

(b) A requirement that school district employees report in writing suspected incidents of harassment, intimidation or bullying to the appropriate school official and a description of appropriate disciplinary procedures for employees who fail to report suspected incidents that are known to the employee.

(c) A requirement that, at the beginning of each school year, school officials provide all pupils with a written copy of the rights, protections and support services available to a pupil who is an alleged victim of an incident reported pursuant to this paragraph.

(d) If an incident is reported pursuant to this paragraph, a requirement that school officials provide a pupil who is an alleged victim of the incident with a written copy of the rights, protections and support services available to that pupil.

(e) A formal process for documenting reported incidents of harassment, intimidation or bullying and providing for the confidentiality, maintenance and disposition of this documentation. School districts shall maintain documentation of all incidents reported pursuant to this paragraph for at least six years. The school shall not use that documentation to impose disciplinary action unless the appropriate school official has investigated and determined that the reported incidents of harassment, intimidation or bullying occurred. If a school provides documentation of reported incidents to persons other than school officials or law enforcement, all individually identifiable information shall be redacted.

(f) A formal process for the appropriate school officials to investigate suspected incidents of harassment, intimidation or bullying, including procedures for notifying the alleged victim and the alleged victim's parent or guardian when a school official or employee becomes aware of the suspected incident of harassment, intimidation or bullying.

(g) Disciplinary procedures for pupils who have admitted or been found to have committed incidents of harassment, intimidation or bullying.

(h) A procedure that sets forth consequences for submitting false reports of incidents of harassment, intimidation or bullying.

(i) Procedures designed to protect the health and safety of pupils who are physically harmed as the result of incidents of harassment, intimidation and bullying, including, if appropriate, procedures to contact emergency medical services or law enforcement agencies, or both.

(j) Definitions of harassment, intimidation and bullying.

Prescribe and enforce policies and procedures regarding changing or adopting attendance boundaries that include the following components:

(a) A procedure for holding public meetings to discuss attendance boundary changes or adoptions that allows public comments.

(b) A procedure to notify the parents or guardians of the students affected, including assurance that, if that school remains open as part of the boundary change and capacity is available, students assigned to a new attendance area may stay enrolled in their current school.

(d) A process for placing public meeting notices and proposed maps on the school district's website for public review, if the school district maintains a website.

(e) A formal process for presenting the attendance boundaries of the affected area in public meetings that allows public comments.

(f) A formal process for notifying the residents and parents or guardians of the affected area as to the decision of the governing board on the school district's website, if the school district maintains a website.

(g) A formal process for updating attendance boundaries on the school district's website within ninety days after an adopted boundary change. The school district shall send a direct link to the school district's attendance boundaries website to the department of real estate.

If the state board of education determines that the school district has committed an overexpenditure as defined in section 15-107, provide a copy of the fiscal management report submitted pursuant to section 15-107, subsection H on its website and make copies available to the public on request. The school district shall comply with a request within five business days after receipt.
Ensure that the contract for the superintendent is structured in a manner in which up to twenty percent of the total annual salary included for the superintendent in the contract is classified as performance pay. This paragraph does not require school districts to increase total compensation for superintendents. Unless the school district governing board votes to implement an alternative procedure at a public meeting called for this purpose, the performance pay portion of the superintendent's total annual compensation shall be determined as follows:

(a) Twenty-five percent of the performance pay shall be determined based on the percentage of academic gain determined by the department of education of pupils who are enrolled in the school district compared to the academic gain achieved by the highest ranking of the fifty largest school districts in this state. For the purposes of this subdivision, the department of education shall determine academic gain by the academic growth achieved by each pupil who has been enrolled at the same school in a school district for at least five consecutive months measured against that pupil's academic results in the 2008-2009 school year. For the purposes of this subdivision, of the fifty largest school districts in this state, the school district with pupils who demonstrate the highest statewide percentage of overall academic gain measured against academic results for the 2008-2009 school year shall be assigned a score of 100 and the school district with pupils who demonstrate the lowest statewide percentage of overall academic gain measured against academic results for the 2008-2009 school year shall be assigned a score of 0.

(b) Twenty-five percent of the performance pay shall be determined by the percentage of parents of pupils who are enrolled at the school district who assign a letter grade of "A" to the school on a survey of parental satisfaction with the school district. The parental satisfaction survey shall be administered and scored by an independent entity that is selected by the governing board and that demonstrates sufficient expertise and experience to accurately measure the results of the survey. The parental satisfaction survey shall use standard random sampling procedures and provide anonymity and confidentiality to each parent who participates in the survey. The letter grade scale used on the parental satisfaction survey shall direct parents to assign one of the following letter grades:

(i) A letter grade of "A" if the school district is excellent.

(ii) A letter grade of "B" if the school district is above average.

(iii) A letter grade of "C" if the school district is average.

(iv) A letter grade of "D" if the school district is below average.

(v) A letter grade of "F" if the school district is a failure.

(c) Twenty-five percent of the performance pay shall be determined by the percentage of teachers who are employed at the school district and who assign a letter grade of "A" to the school on a survey of teacher satisfaction with the school. The teacher satisfaction survey shall be administered and scored by an independent entity that is selected by the governing board and that demonstrates sufficient expertise and experience to accurately measure the results of the survey. The teacher satisfaction survey shall use standard random sampling procedures and provide anonymity and confidentiality to each teacher who participates in the survey. The letter grade scale used on the teacher satisfaction survey shall direct teachers to assign one of the following letter grades:

(i) A letter grade of "A" if the school district is excellent.

(ii) A letter grade of "B" if the school district is above average.

(iii) A letter grade of "C" if the school district is average.

(iv) A letter grade of "D" if the school district is below average.

(v) A letter grade of "F" if the school district is a failure.

(d) Twenty-five percent of the performance pay shall be determined by other criteria selected by the governing board.

Maintain and store permanent public records of the school district as required by law. Notwithstanding section 39-101, the standards adopted by the Arizona state library, archives and public records for the maintenance and storage of school district public records shall allow school districts to elect to satisfy the requirements of this paragraph by maintaining and storing these records either on paper or in an electronic format, or a combination of a paper and electronic format.
Adopt in a public meeting and implement policies for principal evaluations. Before adopting principal evaluation policies, the school district governing board shall provide opportunities for public discussion on the proposed policies. The governing board shall adopt policies that:

(a) Are designed to improve principal performance and improve student achievement.

(b) Include the use of quantitative data on the academic progress for all students, which shall account for between twenty percent and thirty-three percent of the evaluation outcomes.

(d) Describe both of the following:

(i) The methods used to evaluate the performance of principals, including the data used to measure student performance and job effectiveness.

(ii) The formula used to determine evaluation outcomes.

Prescribe and enforce policies and procedures that define the duties of principals and teachers. These policies and procedures shall authorize teachers to take and maintain daily classroom attendance, make the decision to promote or retain a pupil in a grade in common school or to pass or fail a pupil in a course in high school, subject to review by the governing board in the manner provided in section 15-342, paragraph 11.
Prescribe and enforce policies and procedures for the emergency administration by an employee of a school district pursuant to section 36-2267 of naloxone hydrochloride or any other opioid antagonist approved by the United States food and drug administration.
In addition to the notification requirements prescribed in paragraph 36 of this subsection, prescribe and enforce reasonable and appropriate policies to notify a pupil's parent or guardian if any person engages in harassing, threatening or intimidating conduct against that pupil. A school district and its officials and employees are immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this paragraph, except in cases of gross negligence or wanton or wilful neglect. A person engages in threatening or intimidating if the person threatens or intimidates by word or conduct to cause physical injury to another person or serious damage to the property of another on school grounds. A person engages in harassment if, with intent to harass or with knowledge that the person is harassing another person, the person anonymously or otherwise contacts, communicates or causes a communication with another person by verbal, electronic, mechanical, telephonic or written means in a manner that harasses on school grounds or substantially disrupts the school environment.
Each fiscal year, provide to each school district employee a total compensation statement that is broken down by category of benefit or payment and that includes, for that employee, at least all of the following:

(a) Base salary and any additional pay.

(b) Medical benefits and the value of any employer-paid portions of insurance plan premiums.

(d) Legally required benefits.

(e) Any paid leave.

(f) Any other payment made to or on behalf of the employee.

(g) Any other benefit provided to the employee.

Develop and adopt in a public meeting policies to allow for visits, tours and observations of all classrooms by parents of enrolled pupils and parents who wish to enroll their children in the school district unless a visit, tour or observation threatens the health and safety of pupils and staff. These policies and procedures must be easily accessible from the home page on each school's website.

B. Notwithstanding subsection A, paragraphs 7, 9 and 11 of this section, the county school superintendent may construct, improve and furnish school buildings or purchase or sell school sites in the conduct of an accommodation school.

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

Is not abated, extinguished, discharged or merged in the title to the property.
Is enforceable in the same manner as other delinquent tax liens.

D. The governing board may not locate a school on property that is less than one-fourth mile from agricultural land regulated pursuant to section 3-365, except that the owner of the agricultural land may agree to comply with the buffer zone requirements of section 3-365. If the owner agrees in writing to comply with the buffer zone requirements and records the agreement in the office of the county recorder as a restrictive covenant running with the title to the land, the school district may locate a school within the affected buffer zone. The agreement may include any stipulations regarding the school, including conditions for future expansion of the school and changes in the operational status of the school that will result in a breach of the agreement.

E. A school district, its governing board members, its school council members and its employees are immune from civil liability for the consequences of adopting and implementing policies and procedures pursuant to subsection A of this section and section 15-342. This waiver does not apply if the school district, its governing board members, its school council members or its employees are guilty of gross negligence or intentional misconduct.

F. A governing board may delegate in writing to a superintendent, principal or head teacher the authority to prescribe procedures that are consistent with the governing board's policies.

G. Notwithstanding any other provision of this title, a school district governing board shall not take any action that would result in a reduction of pupil square footage unless the governing board notifies the school facilities oversight board established by section 41-5701.02 of the proposed action and receives written approval from the school facilities oversight board to take the action. A reduction includes an increase in administrative space that results in a reduction of pupil square footage or sale of school sites or buildings, or both. A reduction includes a reconfiguration of grades that results in a reduction of pupil square footage of any grade level. This subsection does not apply to temporary reconfiguration of grades to accommodate new school construction if the temporary reconfiguration does not exceed one year. The sale of equipment that results in a reduction that falls below the equipment requirements prescribed in section 41-5711, subsection B is subject to commensurate withholding of school district district additional assistance monies pursuant to the direction of the school facilities oversight board. Except as provided in section 15-342, paragraph 10, proceeds from the sale of school sites, buildings or other equipment shall be deposited in the school plant fund as provided in section 15-1102.

H. Subsections C through G of this section apply to a county board of supervisors and a county school superintendent when operating and administering an accommodation school.

I. A school district governing board may delegate authority in writing to the superintendent of the school district to submit plans for new school facilities to the school facilities oversight board for the purpose of certifying that the plans meet the minimum school facility adequacy guidelines prescribed in section 41-5711.

J. For the purposes of subsection A, paragraph 37 of this section, attendance boundaries may not be used to require students to attend certain schools based on the student's place of residence.

§ 15-341.01 One hundred eighty day school year; definition

A. Notwithstanding any other law and except as prescribed in section 15-393, subsection D, paragraph 5, school instruction shall be conducted in each public school in this state for school sessions that total at least one hundred eighty days each school year. The superintendent of public instruction shall cause all relevant school funding formulas to be adjusted to reflect instruction on the one hundred eighty days' equivalency. The department of education shall adjust the amount of state aid distributed to school districts pursuant to section 15-971 to correspond to the increased number of school days prescribed by this section.

B. For the purposes of this section, "one hundred eighty days" means one hundred eighty days of instruction or an equivalent number of minutes of instruction per school year based on a different number of days of instruction approved by the school district governing board or charter school governing body.

§ 15-342 Discretionary powers

The governing board may:

Expel pupils for misconduct.
Exclude from grades one through eight children under six years of age.
Make such separation of groups of pupils as it deems advisable.
Maintain such special schools during vacation as deemed necessary for the benefit of the pupils of the school district.
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 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.
Construct or provide in rural districts housing facilities for teachers and other school employees that the board determines are necessary to operate the school.
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 if the sale or lease of the property will not affect the normal operations of a school within the school district.
Annually budget and spend monies for membership in an association of school districts within this state.
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.
Subject to title 41, chapter 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 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 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 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 56.

(iii) The transaction does not violate section 15-341, subsection G.

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.
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.
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.
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.
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, paragraph 21 or 22.
Dedicate school property within an incorporated city or town to 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 the city, town or county, there will be conferred 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.

Enter into option agreements for the purchase of school sites.
Donate surplus or outdated learning materials, educational equipment and furnishings to nonprofit community organizations 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.
Prescribe policies 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.
Establish alternative 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.
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.
Require students to wear uniforms.
Exchange unimproved property or improved property, including school sites, 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 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.

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 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 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.
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 uses section 15-949.

(b) Monies distributed at the direction of the school facilities oversight board established by section 41-5701.02 or by the school facilities division within the department of administration pursuant to title 41, chapter 56.

This paragraph does not 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.

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.
Unless otherwise prohibited by law, sell advertising as follows:

(a) Advertisements shall be age appropriate and not 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.

Assess reasonable damage deposits to pupils in grades seven through twelve for 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.
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.
Notwithstanding section 15-1143, 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.
Adopt guidelines to standardize the format of the school report cards required by section 15-746 for schools within the district.
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 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.

Enter into voluntary partnerships with any party to finance with monies other than school district monies and cooperatively design school facilities that comply with the adequacy standards prescribed in section 41-5711 and the square footage per pupil requirements pursuant to section 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 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 at the direction of the school facilities oversight board pursuant to section 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 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 41-5741, in accordance with the voluntary partnership agreement. Before the school facilities oversight board 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 41-5741, subsection O meet the minimum adequacy standards prescribed in section 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 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 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 for the donation of real property pursuant to section 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.

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.
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.
If the school district is a small school district as defined in section 15-901, and if allowed by federal law, opt out of federal grant opportunities if the governing board determines that the federal requirements impose unduly burdensome reporting requirements.
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.
Develop policies and procedures to allow principals to budget for or assist with budgeting federal, state and local monies.
Subject to article IX, section 7, Constitution of Arizona, the laws pertaining to travel and subsistence, gifts, grants, including federal grants, or devises and policies adopted by the department of education, provide food and beverages at school district events, including official school functions and trainings.

§ 15-342.01 School districts; roof inspection protocol

A school district shall develop a roof inspection protocol that shall be used prior to any repair or replacement of roof elements or roof mounted equipment performed in accordance with the requirements of the local building official requiring a permit. Inspections shall be conducted by a registered structural engineer or other professional with appropriate skills, training and certification.

§ 15-342.02 Dating abuse policies

A school district governing board may prescribe and enforce policies and procedures to address incidents of dating abuse involving students at school that may be based on a model dating abuse policy.

§ 15-342.03 Other powers and duties

A. The governing board shall collaborate with the private organization that is approved by the state board of education pursuant to section 15-792.02 to provide approved board examination systems for the schools in the school district.

B. If a school district decides not to participate in the board examination system prescribed in chapter 7, article 6 of this title, pupils enrolled in that school district may earn a Grand Canyon diploma by obtaining a passing score on the same board examinations.

§ 15-342.04 Sale or lease of vacant and partially used school buildings

Notwithstanding section 15-342, an election is not required for the sale or lease of a building or a partially used building if the building has been vacant or partially used pursuant to section 15-119 for at least three years.

§ 15-342.05 Face coverings; vaccines; requirement prohibition

A. Notwithstanding any other law or order, 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.

B. A school district or charter school may not require a student or teacher to receive a vaccine for COVID-19 or to wear a face covering to participate in in-person instruction.

§ 15-343 Employment of professional help

A. The governing board may employ professional personnel deemed necessary for making surveys and recommendations relating to the curricula, physical plant and other requirements of the district.

B. The governing board may employ an attorney to represent the district if the county attorney consents. The purpose for which an attorney is hired shall be set forth in writing by the board.

C. The governing board may employ legal counsel without the consent of the county attorney when, in its discretion, it deems it advisable.

D. Compensation for legal counsel under subsections B and C of this section is payable from district funds.

E. If an attorney is employed without the consent of the county attorney, the county attorney shall not have the duty to represent the district with regard to any matter for which such attorney was employed and shall not be responsible to the district for any exercise of, or failure to exercise, professional judgment by such attorney in his representation of the district.

F. The county attorney is not required to assume the duty to represent the district on a matter for which an attorney was employed without consent.

G. An attorney employed pursuant to subsection B of this section shall represent the school district with powers and duties otherwise performed by the county attorney, pursuant to section 11-532, subsection A, paragraph 10.

H. The provisions of subsections B and C of this section are in addition to, and not in limitation of, any other powers held by the board.

§ 15-344 Administration of prescription, patent or proprietary medications by employees; civil immunity; definition

A. Each school district governing board and charter school governing body shall establish policies and procedures governing the administration of a prescription medication or a patent or proprietary medication to students by employees. In the case of a minor student, such administration shall only occur on the written request or authorization of a parent or legal guardian, except for an emergency administration pursuant to section 15-157 or 15-158 or section 15-341, subsection A, paragraph 43.

B. School districts, charter schools and employees of school districts and charter schools are immune from civil liability for the consequences of the good faith adoption and implementation of policies and procedures pursuant to this section.

C. For the purposes of this section, "administration of a prescription medication or a patent or proprietary medication" means the giving of a single dose of medication or the giving of a treatment package in its original container.

§ 15-344.01 Diabetes management; policies and procedures; emergency administration of glucagon; voluntary diabetes care assistants; standing orders for glucagon; civil immunity

A. The school district governing board and the charter school governing body may adopt policies and procedures for pupils who have been diagnosed with diabetes by a health professional who is licensed pursuant to title 32, chapter 13, 14, 17 or 25 or a nurse practitioner who is licensed pursuant to title 32, chapter 15 to manage their diabetes in the classroom, on school grounds and at school-sponsored activities as authorized by the primary health professional who is licensed pursuant to title 32, chapter 13, 14, 17 or 25, nurse practitioner who is licensed pursuant to title 32, chapter 15 or pharmacist who is licensed pursuant to title 32, chapter 18 and who is practicing pursuant to section 32-1970. If a school district or charter school follows the policies and procedures adopted pursuant to this section, the employees of the school district or charter school and members of the school district governing board or charter school governing body are immune from civil liability with respect to the actions taken to adopt policies and procedures pursuant to this section and all decisions made and actions taken that are based on good faith compliance with policies and procedures adopted pursuant to this section.

B. If a school district governing board or charter school governing body adopts policies and procedures pursuant to subsection A of this section, the policies and procedures shall include the following components:

The parent or guardian shall annually submit a diabetes medical management plan to the pupil's school that authorizes the pupil to carry appropriate medications and monitoring equipment and that acknowledges that the pupil is capable of self-administration of those medications and equipment. The diabetes medical management plan provided by the parent or guardian shall be signed by a health professional who is licensed pursuant to title 32, chapter 13, 14, 17 or 25, a nurse practitioner who is licensed pursuant to title 32, chapter 15 or a pharmacist who is licensed pursuant to title 32, chapter 18 and who is practicing pursuant to section 32-1970, and shall state that the pupil is capable of self-monitoring blood glucose and shall list the medications, monitoring equipment and nutritional needs that are medically appropriate for the pupil to self-administer and that have been prescribed or authorized for that pupil.
A requirement that the pupil be able to practice proper safety precautions for handling and disposing of the equipment and medications that the pupil is authorized to use pursuant to this subsection. The pupil's diabetes medical management plan shall specify a method to dispose of equipment and medications in a manner agreed on by the parent or guardian and the school.
Procedures that enable the school district or charter school to withdraw a pupil's authorization to monitor blood glucose and self-administer diabetes medication pursuant to this subsection if the pupil does not practice proper safety precautions as provided in paragraph 2 of this subsection.
A requirement that any medication administration services specified in the child's diabetes medical management plan shall be provided.

C. In addition to the policies and procedures adopted pursuant to subsections A and B of this section, the school district governing board and the charter school governing body may adopt policies and procedures to designate two or more school employees to serve as voluntary diabetes care assistants. The parent or guardian shall have final approval of the voluntary diabetes care assistants. Voluntary diabetes care assistants are allowed to administer insulin, assist the pupil with self-administration of insulin, administer glucagon in an emergency situation to a pupil or perform any combination of these actions if all of the following conditions exist:

A school nurse or another health professional who is licensed pursuant to title 32, chapter 13, 14, 17 or 25, a nurse practitioner who is licensed pursuant to title 32, chapter 15 or a pharmacist who is licensed pursuant to title 32, chapter 18 and who is practicing pursuant to section 32-1970 is not immediately available to attend to the pupil at the time of the emergency.
If the voluntary diabetes care assistant is authorized to administer glucagon, either:

(a) The parent or guardian of the pupil has provided to the school an unexpired glucagon kit for the school year that is prescribed for that pupil by a health professional who is licensed pursuant to title 32, chapter 13, 14, 17 or 25, a nurse practitioner who is licensed pursuant to title 32, chapter 15 or a pharmacist who is licensed pursuant to title 32, chapter 18 and who is practicing pursuant to section 32-1970.

(b) The school district or charter school has obtained glucagon pursuant to a standing order as provided in subsection E of this section.

The voluntary diabetes care assistant has provided to the school a written statement signed by a health professional who is licensed pursuant to title 32, chapter 13, 14, 15, 17, 18 or 25 attesting that the voluntary diabetes care assistant has received proper training in administering glucagon.
If the voluntary diabetes care assistant is authorized to administer insulin, the parent or guardian of the pupil has provided insulin and all equipment and supplies that are necessary for insulin administration by voluntary diabetes care assistants.
Notwithstanding any other law, the training provided by a health professional who is licensed pursuant to title 32, chapter 13, 14, 15, 17, 18 or 25 includes all of the following:

(a) An overview of all types of diabetes.

(b) The symptoms and treatment of hyperglycemia and hypoglycemia.

(c) Techniques for determining the proper dose of insulin in a specific situation based on instructions provided in the orders submitted by the pupil's physician.

(d) Techniques for recognizing the symptoms that require the administration of glucagon.

(e) Techniques on administering glucagon.

D. A school district or charter school employee is not subject to any penalty or disciplinary action for refusing to serve as a voluntary diabetes care assistant pursuant to this section.

E. A school district governing board or a charter school governing body may annually request a standing order for glucagon from the chief medical officer of the department of health services, the chief medical officer of a county health department, a physician who is licensed pursuant to title 32, chapter 13 or 17, a nurse practitioner who is licensed pursuant to title 32, chapter 15 or a physician assistant who is licensed pursuant to title 32, chapter 25. If a school district governing board or charter school governing body obtains a standing order pursuant to this subsection, the school may stock one or more doses of glucagon at school sites for emergency administration to a pupil by a school nurse, a nurse who is under contract with the school district or charter school, a physician who is licensed pursuant to title 32, chapter 13, 14 or 17, a nurse practitioner who is licensed pursuant to title 32, chapter 15, a physician assistant who is licensed pursuant to title 32, chapter 25 or a voluntary diabetes care assistant who is designated pursuant to subsection C of this section. A school district or charter school may accept monetary donations for or apply for grants to purchase glucagon or may participate in third-party programs to obtain glucagon at no cost, at a fair market price or at a reduced price.

F. Each employee or contractor of the school district or charter school that implements a diabetes medical management plan, or part of a diabetes medical management plan, pursuant to this section shall provide to the school a written statement signed by a health professional who is licensed pursuant to title 32, chapter 13, 14, 15, 17, 18 or 25 attesting that the employee or contractor has received proper training in administering glucagon as described in subsection C, paragraph 5 of this section. The training requirements prescribed in this section must be renewed at regular intervals prescribed by the school district governing board or charter school governing body. For the purposes of this subsection, "employee or contractor" includes any individual listed in subsection E of this section who may administer glucagon to a pupil during an emergency.

G. School districts, charter schools, employees of a school district or a charter school, the chief medical officer of the department of health services, chief medical officers of county health departments, physicians who are licensed pursuant to title 32, chapter 13, 14 or 17, nurse practitioners who are licensed pursuant to title 32, chapter 15, physician assistants who are licensed pursuant to title 32, chapter 25, pharmacists who are licensed pursuant to title 32, chapter 18 and who are practicing pursuant to section 32-1970 and volunteer health professionals who train voluntary diabetes care assistants pursuant to subsection C of this section are immune from civil liability for the consequences of the good faith adoption and implementation of policies and procedures pursuant to this section.

§ 15-345 Chemical abuse prevention policies and procedures

The school district governing board may adopt chemical abuse prevention policies and procedures in consultation with pupils, school district personnel and members of the community, including parents and local law enforcement agencies.

§ 15-346 Policies and procedures concerning pupils with chronic health problems; definition

A. The governing board shall adopt policies and procedures concerning pupils with chronic health problems in consultation with parents, teachers and at least one health professional. The policies and procedures shall be designed to provide continuing learning for pupils with chronic health problems while they are absent from school and to provide for the integration of pupils with chronic health problems into the regular education program as much as possible. The policies and procedures shall include provisions for:

Homework availability to ensure that pupils with chronic health problems have the opportunity to keep up with assignments and avoid losing credit because of their absence from school.
Flexibility in physical education activity requirements so that pupils with chronic health problems may participate in the regular physical education program to the extent that their health permits.

B. Nothing in this section shall be construed to obstruct, interfere with or override the rights of parents or guardians concerning the education and health care of pupils with chronic health problems. Nothing in this section shall be construed to authorize school personnel to either:

Authorize absences from school for a pupil with a chronic health problem without the prior consent of the pupil's parent or guardian.
Recommend, prescribe or provide medication to a pupil with a chronic health problem without the prior consent of the pupil's parent or guardian.

C. For the purposes of this section, "pupils with chronic health problems" means:

Pupils who are not homebound, but who are unable to attend regular classes for intermittent periods of one or more consecutive days because of illness, disease, pregnancy complications or accident as certified by a health professional who is licensed pursuant to title 32, chapter 7, 8, 13, 14, 17 or 25 or a registered nurse practitioner who is licensed pursuant to title 32, chapter 15.
Pupils who suffer from a condition requiring management on a long-term basis as certified by a health professional who is licensed pursuant to title 32, chapter 7, 8, 13, 14, 17 or 25 or a registered nurse practitioner who is licensed pursuant to title 32, chapter 15.
Pupils who have an infant with a severe health problem as certified by a health professional who is licensed pursuant to title 32, chapter 7, 8, 13, 14, 17 or 25 or a registered nurse practitioner who is licensed pursuant to title 32, chapter 15.

§ 15-347 Extracurricular activities; cultural tradition

A. A governing board shall consider the cultural traditions of pupils when establishing or enforcing rules related to a pupil's participation in extracurricular school activities. If district rules or rules regulating a district's participation in an extracurricular program prohibit a student from participating because of a pupil's cultural traditions, the governing board may adopt alternative rules which would allow that pupil to participate but take into consideration the health or safety of the pupil or any other person participating in the activities.

B. A school district governing board, a charter school or an interscholastic athletic association of which a school district governing board or charter school is a member may not prohibit a pupil from wearing a religious or cultural accessory or hairpiece while participating in an extracurricular or athletic activity if the accessory or hairpiece does not jeopardize the health or safety of the pupil or any other person participating in the activity, as determined by the supervisor of the extracurricular activity or the officiant of the athletic activity.

§ 15-348 Dress code policies; traditional tribal regalia; objects of cultural significance; graduation ceremonies; definitions

A. A school district governing board, a charter school governing body or any public school may not prohibit a student who is a member of a federally recognized Indian tribe or who is eligible to be enrolled as a member of a federally recognized Indian tribe from wearing traditional tribal regalia or objects of cultural significance at a graduation ceremony.

B. For the purposes of this section, "objects of cultural significance" and "traditional tribal regalia" include an eagle feather or eagle plume.

§ 15-350 Investigation of immoral or unprofessional conduct; confidentiality; definition

A. On request of the state board of education or the department of education, any school or school district that has employed a certificated or noncertificated person during the time in which the person is alleged to have engaged in conduct constituting grounds for disciplinary action shall make available the attendance and testimony of witnesses, documents and any physical evidence within the school district's control for examination or copying. All information received and records or reports kept by the state board of education or the department of education during an investigation of immoral or unprofessional conduct are confidential and are not a public record.

B. Notwithstanding subsection A of this section, the state board of education may provide information, records or reports relating to the investigation of a certificated or noncertificated person to any of the following:

Any school or school district that currently employs the certificated or noncertificated person.
Any school or school district to which the certificated or noncertificated person has applied for employment.
Any third-party entity that contracts with a school or school district to provide educators and to which the person has applied for employment.
Any agency as defined in section 41-1001 that has received and is investigating an application by the certificated or noncertificated person for a certificate or license or that is investigating the person in order to make a certification or licensure decision.
A state education agency in another state, or the equivalent, with which a person holds a certificate or is applying for a certificate.

C. The highest ranking official of a school or school district described in subsection B, paragraph 1 or 2 of this section may request from the state board of education information relating to allegations that a certificated or noncertificated person engaged in conduct that, if true, constitutes grounds for disciplinary action if the certificated or noncertificated person resigned or otherwise separated from employment with a school before the state board of education either investigates the allegations or determines whether to take disciplinary action against the person. Notwithstanding subsection A of this section, the state board of education, after verifying the official's identity, shall provide the requested information, if available, to the official or to an administrator who is designated by the official. If providing the requested information pursuant to this subsection might impede the state board of education's investigation of the allegations, the state board of education may deny the official's request or provide the information to the official or administrator after the state board of education completes the investigation.

D. All information, records and reports received by any school or school district pursuant to this section shall be used for employment purposes only, are confidential and are not a public record.

E. An investigator who is regularly employed and paid by the state board of education has the authority to access criminal history records and criminal history record information, as defined in section 41-1750, from law enforcement agencies.

F. The department of education shall provide to the state board of education access to the educator information system maintained by the department and any related systems deemed necessary by the board to investigate and adjudicate allegations of conduct constituting grounds for disciplinary action.

G. For the purposes of this section, "noncertificated person" has the same meaning prescribed in section 15-505.

Article 3.1 Decentralization Process

§ 15-351 School councils; duties; membership

A. The purpose of this section is to ensure that individuals who are affected by the outcome of a decision at the school site share in the decision making process.

B. Each school shall establish a school council. A governing board may delegate to a school council the responsibility to develop a curriculum and may delegate any additional powers that are reasonably necessary to accomplish decentralization. The school council shall take into consideration the ethnic composition of the local community and, except as provided in section 15-352, shall consist of the following members:

Parents or guardians of pupils enrolled in the school. A parent or guardian who is employed by the school district may serve as a member of the school council if the parent or guardian is not employed at the same school where the parent or guardian's child is enrolled.
Teachers.
Noncertified employees.
Community members.
Pupils, if the school is a high school.
The principal of the school.

C. Each group specified in subsection B of this section shall select its school council appointees and shall submit the names of its respective representatives to the principal. The initial representatives shall be selected at public meetings held at the school site, and, thereafter, representatives shall be selected by their groups in the manner determined by the school council. Schools shall give notice of the public meeting where the initial representatives of the groups shall be selected, clearly stating its purpose, time and place. The notice shall be posted in at least three different locations at the school site and in the community and shall be given to pupils for delivery to their parents or guardians.

D. The governing board shall determine the initial number of school council members. Thereafter, the school council shall determine the number. The number of teachers and parents or guardians of pupils enrolled at the school shall be equal. Teachers and parents or guardians of pupils enrolled at the school shall constitute a majority of the school council members.

E. The school council shall adopt written guidelines that specify the number of school council members and the methods for the selection of school council members.

F. The principal shall serve as chairman of the school council unless another person is elected by a majority of the school council members.

§ 15-352 Exemptions

A. The governing board is not obligated to reconstitute previously formed school councils pursuant to this section if the existing school councils include representation by more than one teacher and more than one parent or guardian of a pupil enrolled at the school.

B. The governing board may allow an alternative school to establish an alternative school council with members other than those specified in section 15-351 if teachers and parents or guardians of pupils enrolled at the school are represented.

C. A school district that has only one school or a student population of less than six hundred students may decide by a vote of the governing board to not participate in the decentralization process required by this article. If the governing board votes to not participate, the district is not subject to this article.

§ 15-354 Principals; supplies and materials purchases

A. Notwithstanding any other law, the governing board of a school district may authorize school principals to sign negotiable instruments on behalf of the school district if the negotiable instruments are used for the purchase of supplies and materials that are necessary to conduct the operations of the school.

B. Purchases made pursuant to this section are exempt from title 41, chapter 23 and the rules prescribed pursuant to section 15-213.

C. A school district that purchases supplies and materials pursuant to this section shall maintain a separate account in its maintenance and operation budget for each authorized school in the district for the purchase of supplies and materials. The amount of available monies in each school's supplies and materials account shall not exceed five thousand dollars.

D. Within thirty days of any purchase made pursuant to this section, the principal shall supply the governing board of the school district with a receipt from the seller of the supplies and materials that shows the price paid for each item purchased.

E. The principal and the governing board shall ensure that all purchases made pursuant to this section comply with the uniform system of financial records.

F. A governing board may delegate the purchasing authority granted pursuant to this section to one or more employees.

Article 4 Establishment of Special Services

§ 15-361 Establishment of evening and night schools; admission of students; tuition

The governing board of a school district may establish an evening or night school when in its judgment the school is necessary or convenient. The school shall be open for admission of children between the ages of fourteen and twenty-one years, but this shall not be construed as a requirement for a full course of study therein nor as requiring the admission of a person to a class beyond his educational attainments. The schools shall be open to persons over twenty-one years of age only upon payment of tuition as provided by law.

§ 15-362 Libraries; powers and duties; authority to contract

A. The governing board of a school district may establish and maintain libraries. Such libraries shall be under control of the governing board. The governing board is accountable for the care of the libraries, but the board may appoint district librarians or put the libraries under the direct charge of a teacher or other qualified person. When requested, the governing board shall report on the libraries to the county school superintendent on forms supplied by the superintendent of public instruction.

B. The governing board shall:

Enforce the rules prescribed for governing school libraries.
Exclude from school libraries all books, publications and papers of a sectarian, partisan or denominational character. This paragraph does not prohibit any materials for the elective course permitted by section 15-717.01.

C. A district library is free to all pupils of suitable age who attend the school. Residents of the district may become entitled to library privileges by payment of fees and compliance with regulations prescribed by the governing board. The governing board may enter into a contract or agreement with the proper authorities of a county free library or other public library possessing facilities to render the desired service for the procurement of reference or other library books or the extension services of the library. The amount expended shall not exceed two percent of the total school district budget for the school year during which the services are utilized.

D. A school district governing board may enter into agreements with counties, county free library districts, municipal libraries, nonprofit and public libraries, tribal libraries, private schools and tribal schools in the county where the school district is located.

§ 15-363 School recreation centers; authority to contract with public recreation boards and agencies

A. The governing board may operate school buildings and grounds for the purpose of providing a public play and recreation center. The governing board may organize and conduct in the center community recreation activities which contribute to the physical, mental and moral welfare of youths residing in the vicinity. A school recreation center may be open at times the governing board deems advisable, including evening hours and vacation days, and shall be conducted in accordance with rules prescribed by the governing board.

B. The governing board may cooperate and enter into contracts with other public recreation boards and agencies in carrying out the purposes of this section.

§ 15-364 Agreements and expenditure of public monies for recreational facilities on school properties; use of proceeds of bond issues

A. The governing board of a school district may enter into agreements with counties, cities, towns or other school district governing boards, providing for the construction, development, cooperative maintenance, operation and use of parks and recreational facilities, including swimming pools, on properties used for school purposes and under the control of such school districts. The governing boards may expend public monies for the construction and development of such parks or recreational facilities in cooperation with cities, towns and counties.

B. Counties, cities and towns may expend public monies and enter into agreements with cities, towns and school district governing boards for the construction, development, cooperative maintenance, operation and use of parks, swimming pools and other recreational facilities on properties used for school purposes, if the governing authorities having charge and control of such properties give their consent and cooperation.

C. Cities, towns and counties with a population of five hundred thousand persons or more according to the most recent United States decennial census may use the proceeds of bond issues for the purposes of this section.

§ 15-365 Service programs operated through the office of a county school superintendent; reports; definitions

A. The county school superintendent may establish service programs that are available to any county free library district, municipal library, local school district governing board, nonprofit and public library, tribal library, private school or tribal school officially requesting such programs.

B. Both central administrative costs and general service costs shall be shared on a user basis and budgeted and paid as contract costs by the districts using such programs, except as provided in subsections E, F and H of this section.

C. Agreements or contracts entered into pursuant to this section are not subject to title 11, chapter 7, article 3 relating to intergovernmental agreements and contracts.

D. Each county school superintendent shall submit to the school districts involved and to the board of supervisors no later than May 31 of each year a program progress report and a fiscal report, including actual expenditures through March 31 and estimates for the remainder of the fiscal year, on each service program in operation in the county.

E. County school superintendents may establish special small district service programs designed to meet the special needs of school districts with a total student count of fewer than six hundred in such areas as administrative assistance and specialized services as follows:

For counties with seven or more school districts with a student count of fewer than six hundred, the small district service program may serve a single county or two or more counties.
Except as provided in subsection I of this section, for counties with fewer than seven school districts with a student count of fewer than six hundred, the small district service program shall serve two or more counties as determined by the superintendent of public instruction.

F. The costs of the small district service program are payable in part from the small district service program fund. Costs in excess of the amount available in the small district service program fund shall be shared on a user basis and budgeted and paid as contract costs by the district using such programs. The small district service program fund for each program shall consist of a base amount plus a per district amount for each school district in the county or counties served that has a student count of fewer than six hundred. For fiscal year 1989-1990, the base amount is fifty-six thousand four hundred ninety-four dollars and the per district amount is five thousand eighty-four dollars. Beginning with fiscal year 1990-1991, the base amount and per district amount are the amounts for the prior year adjusted by the growth rate prescribed by law, subject to appropriation. The base amount and per district amount for each county or counties served shall be funded with state general fund monies, subject to appropriation. The county school superintendent must submit claims for payments to the state superintendent of public instruction. The county school superintendent shall deposit the payments into the small district service program fund.

G. School districts that provide only financing for pupils who are instructed by another district shall be included in determining the number of districts counted for the small district service program fund.

H. For each small district service program that serves two or more counties, a county of jurisdiction shall be selected by the superintendent of public instruction. Payment shall be made into the small district service program fund in the county of jurisdiction from monies that are received from the superintendent of public instruction pursuant to this section for all counties served by the county of jurisdiction.

I. If a small district service program is established before fiscal year 1987-1988, the program may continue to operate as a single county program if the county contains fewer than seven, but at least four, school districts with a student count of fewer than six hundred.

J. A school district with a student count of six hundred or more in the current year that participated in a small district service program and had a student count of fewer than six hundred in the prior year may continue to participate in the program for the current year and one additional year. The amount in the small district service program fund shall be determined as if the district had a student count of fewer than six hundred.

K. For the purposes of this section:

"Central administrative costs" means only those costs that are incurred by the county school superintendent in administering any service program that benefits all the school districts in the program and that are shared on a user basis and budgeted and paid as contract costs by districts, except as provided in subsections E, F and H of this section.
"General service costs" means those costs that are directly related to each of the service programs, that are shared on a user basis and that are budgeted and paid as contract costs by districts, except as provided in subsections E, F and H of this section.
"Service programs" means those programs that can be accomplished more efficiently and economically as multidistrict or multicounty operations.
"Student count" means the student count as defined in section 15-901, subsection A, except that it does not include pupils enrolled in grades nine through twelve to whom the district does not provide instruction if the district is a common school district that is not within a high school district.

Article 5 Provisions for Insurance Coverage

§ 15-381 Liabilities of the governing board; payment of liabilities; immunity

A. The governing board is liable as such, in the name of the school district, for a judgment against the district for salary due a teacher on contract and for all debts contracted under this title. It shall pay judgments or liabilities from the school monies to the credit of the district.

B. The governing board members shall have no personal liability for acts done in reliance upon written opinions of the attorney general or upon written opinions of the county attorney:

Which are deemed to be affirmed by the attorney general pursuant to section 15-253.
With which the attorney general concurs.
Which the attorney general declines to review.
As revised by a written opinion of the attorney general.

C. Members of a governing board are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings.

§ 15-382 Authorization to self-insure; pooling agreements; joint agreements; trustees; liability coverage and pool requirements; definition

A. The school district governing board may determine that self-insurance is necessary or desirable in the best interest of the district and may provide for a self-insurance program or programs for the district including risk management consultation. Any risk management consultant or insurance administrator employed by a school district governing board must be licensed under title 20, chapter 2, article 3 or 9, and such license shall be verified by the school district governing board prior to employment.

B. The school district governing board may:

Enter into intergovernmental agreements or contracts with pools operated pursuant to section 11-952.01 for participation in programs offered by public agency pools. In addition to the joint purchasing of insurance or reinsurance or the pooling of the retention of risks for property, fidelity and liability losses, these programs may include the joint purchasing of health benefits plan, life or disability insurance, prepaid legal insurance or the pooling of the retention of their risks of losses for health, accident, life or disability claims or the provision of the health and medical services enumerated in section 36-2907.
Separately contract with a trustee or board of trustees that provides a common self-insurance program or programs with pooled funds and risks to more than one district, a community college district formed pursuant to chapter 12 of this title or an association of school districts within this state that is funded by member school districts pursuant to section 15-342, paragraph 8 or a pool created for and operated solely for charter schools pursuant to section 11-952.01. Beginning January 1, 2010, a trustee, board of trustees or pool that contracts with a school district governing board or charter school pursuant to this paragraph shall comply with title 38, chapter 3, article 3.1, title 39, chapter 1 and section 11-952.01, subsections M and N.
Enter into cooperative procurement agreements with other districts pursuant to rules adopted pursuant to section 15-213 to participate in programs for either self-insurance or the joint purchase of insurance.
Separately establish a self-insurance program solely for its district.

C. If the school district governing board, either alone or in combination with another school district or an association of school districts in this state that is funded by member school districts pursuant to section 15-342, paragraph 8, establishes a self-insurance program, the governing board or an association of school districts shall place all funds into a trust to be used for payment of uninsured losses, claims, defense costs, costs of training designed to reduce losses and claims, the cost of related employee benefits including wellness programs, life, disability and other fully and partially insured group insurance plans, programs that allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986, costs of administration and other related expenses. If a member of the governing board or employee of the school district is acting as a trustee, the trust shall be administered by at least five joint trustees, of whom no more than one may be a member of the governing board and no more than one may be an employee of the school district. Funds budgeted for self-insurance programs shall be subject to district budgetary requirements, including but not limited to the requirements that the funds be budgeted within the maintenance and operation section and the budget limitation on increases as prescribed in section 15-905. The funds, upon being placed in the trust, shall not lapse at the close of the fiscal year, except that any cash balance remaining after termination of the program and settlement of all outstanding claims shall be used for reduction of school district taxes for the budget year. The trustees of the trust must be bonded, a stop-loss provision must be incorporated in the trust agreement, and an annual audit must be performed by a certified public accountant and a copy of the report kept on file in the district office for a period of not less than five years.

D. If the self-insurance is for liability losses, excess liability coverage or reinsurance must be obtained as follows:

For a single school district, the coverage may include an annual aggregate limit of no more than three million dollars and the maximum retention per occurrence shall be one-half of one per cent of the district's maintenance and operation budget.
For a pool, the coverage may include an annual aggregate limit set by the pool and the maximum retention per occurrence shall not exceed one-half of one per cent of the combined maintenance and operation budgets of the districts in the pool.

E. "Self-insurance program" as used in this section means programs established and wholly or partially funded by the school district governing board. Self-insurance programs shall not include a decision by the governing board not to carry insurance upon a particular risk or risks.

§ 15-383 Insurance on school bus and other vehicle operators; authority of the governing board to purchase

A. The governing board may purchase public liability and property damage insurance covering school bus drivers while driving school buses and operators of vehicles described in section 15-925 while driving those vehicles.

B. The governing board of any school district may require the operator of a school bus or vehicle described in section 15-925 used for transportation of pupils attending schools in the district to carry public liability insurance in amounts not to exceed $20,000 for personal injury to any one person, and $100,000 for personal injuries arising out of any one accident, covering any liability to which the operator may be subject on account of personal injuries to a passenger or other person caused or contributed to by an act of the operator while operating a school bus or a vehicle described in section 15-925. If the policy of insurance is filed with and approved by the governing board of the school district, the governing board may increase the compensation otherwise payable to the operator by an amount equal to the cost to the operator of the insurance.

§ 15-384 Authorization for insurance coverage for students

A. The governing board of any school district, or the county school superintendent concerning accommodation schools, may provide or make available health benefits plan coverage for the school district. Such services may be secured only by either of the following methods:

Obtaining membership in nonprofit corporations pursuant to section 11-952.01 which shall defray the cost of the health and medical services and benefits.
Obtaining group, blanket or individual policies of health benefits plan insurance from insurers authorized to transact such business in this state.

B. The cost of membership in the nonprofit corporation or the health benefits plan insurance premiums may be paid by the school district, or by the county in the case of accommodation schools, or by the student or the student's parent or guardian, provided that no monies from the school district's maintenance and operation budget shall be used to pay for such membership or premiums.

§ 15-385 Premiums of a bond or insurance for accommodation schools or federally owned buildings on Indian reservation

A. When by the provisions of an agreement entered into between the state, an officer or agency thereof or a school district of this state, and the government of the United States or an agency or officer thereof, for the use of school buildings on Indian reservations, whereby a school district is required to execute a bond in favor of the federal government or an officer or agency thereof, or to procure and pay for insurance for protection of federally owned buildings or equipment being used for school purposes, the bond or insurance may be executed by the governing board of the school district, and the district or governing board may procure and pay for the bond or insurance as is necessary for protection of the buildings or equipment. Premiums paid for a bond or insurance shall be a charge against the funds of the school district.

B. The provisions of this section shall apply also to accommodation schools under the jurisdiction of the county school superintendent and payment of premiums for a bond or insurance may be made by the county school superintendent from the county school reserve fund.

§ 15-386 Insurance refund fund

A. Monies retained for insurance premium payments which are refunded to a school district at the end of a fiscal year by an insurer with which the governing board contracted for that fiscal year may be deposited with the county treasurer who shall credit the deposits to the insurance refund fund of the district.

B. The insurance refund fund of a school district is a continuing fund not subject to reversion. Monies from the insurance refund fund may:

Be expended for insurance premium payments.
Be placed into a trust to be used for payments of uninsured losses, claims, defense costs and other related expenses as provided in section 15-382.
Be used for reduction of taxes in the budget year.

§ 15-387 Procurement of insurance; eligibility of governing board members, former board members and surviving spouse and dependents; deposit of monies

A. Notwithstanding section 15-323, the governing board may procure insurance from any insurer authorized by the director of the department of insurance and financial institutions or may establish a self-insurance program as provided in section 15-382 for the management and administration of a system for direct payment of benefits, losses or claims or any combination of insurance and direct payments, including risk management consultation, to provide:

Health, accident, life or disability benefits for employees of the school district and their dependents and for members of the governing board and their dependents as provided in subsection B of this section.
Payment of any property or fidelity loss sustained, legal expenses incurred or lawful claim of liability or fortuitous loss made against the school district or its employees, including leased employees, or officers if the employees, leased employees or officers are acting in the scope of their employment or authority.
Coverage for all construction projects for purposes of general liability, property damage and workers' compensation.

B. A governing board member is eligible to participate in an insurance plan provided as an employee benefit pursuant to subsection A, paragraph 1 of this section if the member pays the full premium and the participation of the member does not result in an expenditure of school district monies.

C. If the governing board allows its members to participate in the insurance plan, a governing board may also adopt a policy allowing participation in an insurance plan provided as an employee benefit pursuant to subsection A, paragraph 1 of this section for former board members and for surviving spouses and dependents of board members or former board members as follows:

The board may allow a former board member to continue to participate if the former board member served at least four consecutive years on the board, was covered under the insurance plan while serving on the board and pays the full premium and the participation does not result in an expenditure of school district monies.
The board may allow the surviving spouse and dependent of the board member or former board member to continue to participate in the insurance plan if the surviving spouse or dependent pays the full premium and the participation of the surviving spouse and dependent does not result in an expenditure of school district monies and if one of the following applies:

(a) The deceased board member or former board member met the qualifications for eligibility pursuant to paragraph 1 of this subsection.

(b) The deceased board member or former board member would have met the qualifications for eligibility pursuant to paragraph 1 of this subsection if the deceased board member or former board member had not died in office.

D. Monies that are provided by employees, board members, former board members and surviving spouses and dependents of board members or former board members and that are received pursuant to this section shall be deposited in an account as provided in section 15-1223.

§ 15-388 Optional inclusion of school district employees in state health and accident coverage; payment of premiums; advance notice; minimum period of participation; definition

A. If a governing board of a school district determines that state health and accident insurance coverage is necessary or desirable and in the best interest of the district, it may provide for inclusion of the district's employees and spouses and dependents of school district employees in state health and accident insurance coverage pursuant to section 38-651.

B. If the school district elects to participate in the state health and accident insurance coverage, it shall be the only health and accident insurance coverage offered to school district employees.

C. A school district governing board that elects to include its employees in the state health and accident insurance coverage shall notify the department of administration of its intention to do so by January 15 of the calendar year prior to the school year starting after June 30 in which the school district's employees would be eligible to receive state health and accident insurance coverage.

D. A school district governing board that elects to include its employees in the state health and accident insurance coverage shall participate in state health and accident insurance coverage for at least two years.

E. School districts that opt to participate in the state health and accident insurance coverage shall agree to accept the benefit level, plan design, insurance providers, premium level and other terms and conditions determined by the department of administration and shall accept such other contractual arrangements made by the department of administration with health and accident insurance providers.

F. School districts shall reimburse the department of administration for administrative and operational costs associated with school districts participating in the state health and accident insurance coverage determined pursuant to section 38-651, subsection K.

G. As used in this section, "state health and accident insurance coverage" means the health and accident coverage procured by the department of administration under section 38-651.

Article 6 Career Technical Education Districts

§ 15-391 Definitions

In this article, unless the context otherwise requires:

"Career technical education board" means a career technical education district governing board.
"Career technical education course" means a course that is offered by a career technical education district as part of a career technical education district program, that is approved by the career and technical education division of the department of education and that meets each of the following requirements:

(a) Is taught by an instructor who is certified to teach career and technical education by the state board of education or by a postsecondary educational institution.

(b) Is part of a program that requires students to obtain a passing score of at least sixty percent on an assessment that demonstrates the level of skills, knowledge and competencies necessary to be successful in the designated vocation or industry for that program of study.

(d) Is not a course or any variation of a course, including honors, that is required under the minimum course of study pursuant to section 15-701.01 in order to graduate from high school, except that credit may be awarded for any career and technical education course.

(e) Requires a majority of instructional time to be conducted in a laboratory environment, field-based environment or work-based learning environment, except for community college courses.

(f) Has demonstrated a need for extra funding in order to provide the career technical education course.

(g) Requires specialized equipment and specialized materials in order to provide instruction to students that exceeds the cost of a standard educational course.

"Career technical education district" means a district that is formed pursuant to this article and that offers career technical education courses.
"Career technical education district program" means a sequence of courses that is offered by a career technical education district and that meets all of the following requirements:

(a) Is taught by an instructor who is certified to teach career and technical education by the state board of education or by a postsecondary educational institution.

(b) Requires an assessment that demonstrates the level of skills, knowledge and competencies necessary to be successful in the designated vocation or industry or an assessment necessary for certification, if appropriate, or for career readiness and entry-level employment, in and acceptance by that vocation or industry. Any assessment adopted pursuant to this subdivision shall require a passing score of at least sixty percent.

(c) Requires specialized equipment and specialized materials in order to provide instruction to students that exceeds the cost of a standard educational course.

(d) Requires a majority of instructional time to be conducted in a laboratory environment, field-based environment or work-based learning environment, and requires career and technical student organization participation, except for community college courses.

(e) Demonstrates alignment through a curriculum, instructional model and course sequence to meet the standards of a career and technical education preparatory program as determined by the career and technical education division of the department of education.

(f) Has a defined pathway to career and postsecondary education in a specific vocation or industry as determined by the career and technical education division of the department of education.

(g) Is approved by the career and technical education division of the department of education based only on the requirements prescribed in this paragraph after the submission of all required documentation.

(h) Is certified by the career technical education district governing board to have met all the requirements prescribed in this article.

(i) Is offered only to students in grades nine, ten, eleven and twelve.

(j) Fills a high-need vocational or industry need as determined by the career and technical education division of the department of education.

(k) Requires a single or stackable credential as described in subdivision (l) of this paragraph or a skill that will allow a student to obtain work as described in subdivision (l) of this paragraph on graduation before receiving an associate degree or baccalaureate degree.

(l) Leads to certification or licensure, if available, or to career readiness and entry-level employment where relevant certification or licensure does not exist in that industry, in the designated vocation or industry that has been verified and accepted by that vocation or industry and that qualifies the person for employment. If there is no certification or licensure that is accepted by the vocation or industry, or if business practicalities do not require certification or licensure, completion of the program must qualify the student for at least entry-level employment.

(m) Requires instruction and instructional materials in courses that are substantially different from and exceed the scope of standard instruction and that include vocational skills, competencies and knowledge to be successful in the designated career technical education district program vocation or industry.

(n) An industry or vocation has agreed to provide financial or technical support to the career technical education district for a specific career technical education district program. For the purposes of this subdivision, "financial support" includes in-kind contributions and donations.

(o) A career technical education district has demonstrated a need for extra funding in order to provide the career technical education district program.

"State board" means the state board of education.

§ 15-392 Formation of career technical education districts

A. Notwithstanding any other provision of law, school districts that are interested in forming a career technical education district shall conduct a study to determine the need to establish a career technical education district in an area consisting of two or more school districts. The school districts shall also initiate a plan for the establishment and operation of the career technical education district, which shall include a proposed budget based on a reasonable estimate of student enrollment in the new career technical education district. Any school district may assist in the preparation and payment of costs of the study and plan. The school districts shall file a copy of the plan with the governing board of each school district included in the plan for the career technical education district. The school districts shall submit the results of the study and the plan, along with evidence of approval by the governing board of each school district included in the selected plan for the career technical education district, to the state board of education.

B. If the state board of education determines that the plan submitted for the proposed career technical education district has met the requirements of this section, the question shall be submitted to the qualified electors of the school district seeking to become a part of the career technical education district at an election held on the first Tuesday after the first Monday in November. The question that is submitted to the qualified electors must describe the tax rate that is associated with joining the career technical education district and the estimated cost of that tax rate for the owner of a single family home that is valued at one hundred thousand dollars. If the electors in a school district approve, that school district is authorized to participate in a career technical education district. The career technical education district shall become operational on July 1 following the election held pursuant to this subsection, except as provided in subsection D of this section.

C. The governing boards of the school districts participating in the career technical education district may pay on a proportional basis the administrative, clerical and other expenses necessary for the establishment and operation of the career technical education district until monies are otherwise provided.

D. A career technical education district after receiving voter approval as provided in subsection B of this section shall be governed by a career technical education board consisting of members elected pursuant to section 15-393, except that the initial composition of the career technical education board shall consist of one person who is not currently a board member of any school district and who is appointed by the governing board of each district participating in the career technical education district. The terms of office of the career technical education board members shall become effective on January 1 following the election held pursuant to subsection B of this section. On the effective date of the term of office for career technical education board members, the career technical education board may begin necessary operations and activities related to making the district operational pursuant to subsection B of this section. If fewer than five school districts are participating in the career technical education district, the initial composition of the career technical education board shall consist of two persons who are not currently board members of any school district and who are appointed by each participating school district's governing board. The appointed members shall serve until January 1 following the next general election. At the general election held next following the formation of the career technical education district and thereafter, career technical education board members shall be elected as prescribed in section 15-393.

§ 15-393 Career technical education district governing board; report; definitions

A. The management and control of a career technical education district are vested in the career technical education district governing board, including the content and quality of the courses offered by the district, the quality of teachers who provide instruction on behalf of the district, the salaries of teachers who provide instruction on behalf of the district and the reimbursement of other entities for the facilities used by the district. This section does not restrict a school district from offering any career and technical education course that does not qualify for funding as a career technical education course or career technical education district program. Unless the governing boards of the school districts participating in the formation of the career technical education district vote to implement an alternative election system as provided in subsection B of this section, the career technical education board consists of five members elected from five single member districts formed within the career technical education district. The single member district election system shall be submitted as part of the plan for the career technical education district pursuant to section 15-392 and shall be established in the plan as follows:

The governing boards of the school districts participating in the formation of the career technical education district shall define the boundaries of the single member districts so that the single member districts are as nearly equal in population as is practicable, except that if the career technical education district lies in part in each of two or more counties, at least one single member district may be entirely within each of the counties comprising the career technical education district if this district design is consistent with the obligation to equalize the population among single member districts.
The boundaries of each single member district shall follow election precinct boundary lines, as far as practicable, in order to avoid further segmentation of the precincts.
A person who is a registered voter of this state and who has been a resident of the single member district for at least one year immediately preceding the date of the election is eligible for election to the office of career technical education board member from the single member district. The terms of office of the members of the career technical education board shall be as prescribed in section 15-427, subsection B. An employee of a career technical education district or the spouse of an employee shall not hold membership on a governing board of a career technical education district by which the employee is employed. A member of one school district governing board or career technical education district governing board is ineligible to be a candidate for nomination or election to or serve simultaneously as a member of any other governing board, except that a member of a governing board may be a candidate for nomination or election for any other governing board if the member is serving in the last year of a term of office. A member of a governing board shall resign the member's seat on the governing board before becoming a candidate for nomination or election to the governing board of any other school district or career technical education district, unless the member of the governing board is serving in the last year of a term of office. Members of a career technical education district governing board are subject to the conflict of interest requirements prescribed in section 38-503.
Nominating petitions shall be signed by the number of qualified electors of the single member district as provided in section 16-322.

B. The governing boards of the school districts participating in the formation of the career technical education district may vote to implement any other alternative election system for the election of career technical education district board members. If an alternative election system is selected, it shall be submitted as part of the plan for the career technical education district pursuant to section 15-392, and the implementation of the system shall be as approved by the United States justice department.

C. Career technical education districts are subject to the following provisions of this title:

Chapter 1, articles 1, 2, 3, 4, 5 and 6.
Sections 15-208, 15-210, 15-213 and 15-234.
Articles 2, 3 and 5 of this chapter.
Section 15-361.
Chapter 4, articles 1, 2 and 5.
Chapter 5, articles 1 and 3.
Sections 15-701.01, 15-722, 15-723, 15-724, 15-727, 15-728, 15-729 and 15-730.
Chapter 7, article 5.
Chapter 8, articles 1, 3 and 4.
Sections 15-828 and 15-829.
Chapter 9, article 1, article 6, except for section 15-995, and article 7.
Sections 15-941, 15-943.01, 15-953 and 15-973.
Sections 15-1101 and 15-1104.
Chapter 10, articles 2, 3, 4 and 8.

D. Notwithstanding subsection C of this section, the following apply to a career technical education district:

A career technical education district may issue bonds for the purposes specified in section 15-1021 and in chapter 4, article 5 of this title to an amount in the aggregate, including the existing indebtedness, not exceeding one percent of the net assessed value of the full cash value of the property within the career technical education district. For the purposes of this paragraph, "full cash value" and "net assessed value" have the same meanings prescribed in section 42-11001.
The number of governing board members for a career technical education district shall be as prescribed in subsection A of this section.
The student count for the first year of operation of a career technical education district as provided in this article shall be determined as follows:

(a) Determine the estimated student count for career technical education district classes that will operate in the first year of operation. This estimate shall be based on actual registration of pupils as of March 30 scheduled to attend classes that will be operated by the career technical education district. The student count for the school district of residence of the pupils registered at the career technical education district shall be adjusted. The adjustment shall cause the school district of residence to reduce the student count for the pupil to reflect the courses to be taken at the career technical education district. The school district of residence shall review and approve the adjustment of its own student count as provided in this subdivision before the pupils from the school district can be added to the student count of the career technical education district.

(b) The student count for the new career technical education district shall be the student count as determined in subdivision (a) of this paragraph.

(c) For the first year of operation, the career technical education district shall revise the student count to the actual average daily membership as prescribed in section 15-901, subsection A, paragraph 1 for students attending classes in the career technical education district. A career technical education district shall revise its student count, the base support level as provided in section 15-943.02, the revenue control limit as provided in section 15-944.01 and the district additional assistance as provided in section 15-962.01 before May 15. A career technical education district that overestimated its student count shall revise its budget before May 15. A career technical education district that underestimated its student count may revise its budget before May 15.

(d) After March 15 of the first year of operation, the school district of residence shall adjust its student count by reducing it to reflect the courses actually taken at the career technical education district. The school district of residence shall revise its student count, the base support level as provided in section 15-943, the revenue control limit as provided in section 15-944 and the district additional assistance as provided in section 15-962.01 prior to May 15. A district that underestimated the student count for students attending the career technical education district shall revise its budget before May 15. A district that overestimated the student count for students attending the career technical education district may revise its budget before May 15.

(e) The procedures for implementing this paragraph shall be as prescribed in the uniform system of financial records.

For the purposes of this paragraph, "school district of residence" means the school district that included the pupil in its average daily membership for the year before the first year of operation of the career technical education district and that would have included the pupil in its student count for the purposes of computing its base support level for the fiscal year of the first year of operation of the career technical education district if the pupil had not enrolled in the career technical education district.

A student includes any person enrolled in the career technical education district without regard to the person's age or high school graduation status, except that:

(a) A student in a kindergarten program or in any of grades one through eight who enrolls in courses offered by the career technical education district shall not be included in the career technical education district's student count or average daily membership.

(b) A student in a kindergarten program or in any of grades one through eight who is enrolled in career and technical education courses shall not be funded in whole or in part with monies provided by a career technical education district, except that a pupil in grade eight may be funded with monies generated by the $.05 qualifying tax rate authorized in subsection F of this section.

(c) A student who has graduated from high school or received a general equivalency diploma or who is over twenty-one years of age shall not be included in the student count of the career technical education district for the purposes of chapter 9, articles 3, 4 and 5 of this title.

A career technical education district may operate for more than one hundred eighty days per year, or less, with the equivalent number of hours of instruction.
A career technical education district may use the carryforward provisions of section 15-943.01.
A school district that is part of a career technical education district shall use any monies received pursuant to this article to supplement and not supplant base year career and technical education courses, and directly related equipment and facilities, except that a school district that is part of a career technical education district and that has used monies received pursuant to this article to supplant career and technical education courses that were offered before the first year that the school district participated in the career technical education district or the first year that the school district used monies received pursuant to this article or that used the monies for purposes other than for career and technical education courses shall use one hundred percent of the monies received pursuant to this article to supplement and not supplant base year career and technical education courses. Each applicable school district shall provide a report to the career technical education board and the department of education outlining the required maintenance of effort and how monies were used to supplement and not supplant base year career and technical education courses and directly related equipment and facilities.
A career technical education district shall use any monies received pursuant to this article to enhance and not supplant career and technical education courses and directly related equipment and facilities.
A career technical education district or a school district that is part of a career technical education district or a charter school shall only include pupils in grades nine through twelve and pupils in the school year immediately following graduation in the calculation of student count or average daily membership if the pupils are enrolled in courses that are approved jointly by the governing board of the career technical education district and each participating school district or charter school for satellite courses taught within the participating school district or charter school, or approved solely by the career technical education district for centrally located courses. Funding may be provided for not more than four years for the same student. Student count and average daily membership from courses that are not part of an approved program for career and technical education shall not be included in student count and average daily membership of a career technical education district.
A career technical education district may build, maintain and provide housing facilities and support services for students who are in foster care or who meet the definition of unaccompanied youth as defined in the McKinney-Vento homeless assistance act (P.L. 100-77; 101 Stat. 482; 42 United States Code section 11434a).

E. The career technical education board shall appoint a superintendent as the executive officer of the career technical education district.

F. Taxes may be levied for the support of the career technical education district as prescribed in chapter 9, article 6 of this title, except that a career technical education district shall not levy a property tax pursuant to law that exceeds $.05 per $100 assessed valuation except for bond monies pursuant to subsection D, paragraph 1 of this section. Such taxes shall be obtained from a levy of taxes on the taxable property used for secondary tax purposes.

G. The schools in the career technical education district are available to all persons who reside in the career technical education district and to pupils whose school district of residence within this state is paying tuition on behalf of the pupils to a district of attendance that is a member of the career technical education district, subject to the rules for admission prescribed by the career technical education board.

H. The career technical education board may collect tuition for adult students and the attendance of pupils who are residents of school districts that are not participating in the career technical education district pursuant to arrangements made between the governing board of the school district and the career technical education board.

I. The career technical education board may accept gifts, grants, federal monies, tuition and other allocations of monies to erect, repair and equip buildings and for the cost of operating the schools of the career technical education district.

J. One member of the career technical education board shall be selected chairperson. The chairperson shall be selected annually on a rotation basis from among the participating school districts. The chairperson of the career technical education board shall be a voting member.

K. A career technical education board may enter into agreements to provide for administrative, operational and educational services and facilities with either:

A community college district.
A university under the jurisdiction of the Arizona board of regents only if the community college district, if any, for each county in which the career technical education district is located is not able to offer the course or program in the next school year. For the purposes of this paragraph, a community college district is not able to offer a course or program if both of the following apply:

(a) On or before November 1 of each year, the career technical education board notifies the president or chancellor of the community college district in writing that the career technical education district seeks to offer one or more courses or programs, or both, that are:

(i) Not offered through an existing agreement between the career technical education board and the community college district.

(ii) Are available through a university under the jurisdiction of the Arizona board of regents.

(b) The president or chancellor of the community college district either:

(i) Not later than thirty days after the president or chancellor receives the notice pursuant to subdivision (a) of this paragraph, notifies the superintendent of the career technical education district in writing that no community college district is able to offer the course or program in the next school year.

(ii) Fails to respond to the superintendent of the career technical education district within thirty days after the president or chancellor of the community college district receives the notice pursuant to subdivision (a) of this paragraph.

L. Any agreement between the governing board of a career technical education district and another career technical education district, a school district, a charter school, a university or a community college district shall be in the form of an intergovernmental agreement or other written contract. The auditor general shall modify the uniform system of financial records and budget forms in accordance with this subsection. The intergovernmental agreement or other written contract shall completely and accurately specify each of the following:

The financial provisions of the intergovernmental agreement or other written contract and the format for the billing of all services.
The accountability provisions of the intergovernmental agreement or other written contract.
The responsibilities of each career technical education district, each school district, each charter school, each university and each community college district that is a party to the intergovernmental agreement or other written contract.
The type of instruction that will be provided under the intergovernmental agreement or other written contract, including individualized education programs pursuant to section 15-763.
The quality of the instruction that will be provided under the intergovernmental agreement or other written contract.
The transportation services that will be provided under the intergovernmental agreement or other written contract and the manner in which transportation costs will be paid.
The amount that the career technical education district will contribute to a course and the amount of support required by the school district, the charter school, the university or the community college.
That the services provided by the career technical education district, the school district, the charter school, the university or the community college district be proportionally calculated in the cost of delivering the service.
That the payment for services shall not exceed the cost of the services provided.
That the career technical education district will provide the following minimum services for all member districts:

(a) Professional development of career and technical teachers in the career technical education district who are teaching programs or courses at a satellite campus.

(b) Ongoing evaluation and support of satellite campus programs and courses to ensure quality and compliance.

An itemized listing of other goods and services that are provided to the member district and that are paid for by the retention of satellite campus student funding.

M. A member school district or charter school may not submit requests to approve or add satellite campus career technical education district programs or courses directly to the career and technical education division of the department of education but shall submit all appropriate application documentation and materials for programs or courses to the career technical education district. On approval from the career technical education board, a career technical education district shall only submit requests to approve or add satellite campus career technical education district programs or courses directly to the career and technical education division of the department of education, which shall determine whether the criteria prescribed in section 15-391, paragraphs 2 and 4 have been met. If the career and technical education division of the department of education determines that a course does not meet the criteria for approval as a career technical education course, the governing board of the career technical education district may appeal this decision to the state board of education acting as the state board of vocational education.

N. Notwithstanding any other law, the average daily membership for a pupil who is enrolled in a career technical education course and who does not meet the criteria specified in subsection P, Q or R of this section shall be 0.25 for each course, except the sum of the average daily membership shall not exceed the limits prescribed by subsection D, P, Q or R of this section, as applicable.

O. If a career and technical education course or program is provided on a satellite campus, the sum of the average daily membership, as provided in section 15-901, subsection A, paragraph 1, for that pupil in the school district or charter school and career technical education district shall not exceed 1.25. The school district or charter school and the career technical education district shall determine the apportionment of the average daily membership for that pupil between the school district or charter school and the career technical education district. A pupil who attends a course or program at a satellite campus and who is not enrolled in the school district or charter school where the satellite campus is located may generate the average daily membership of up to 0.25 for one hundred fifty instructional hours of enrollment for instruction received during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year pursuant to this subsection if the pupil is enrolled in a school district that is a member district in the same career technical education district.

P. The sum of the average daily membership of a pupil who is enrolled in both the school district and career technical education course or career technical education program provided by a community college or university pursuant to subsection K of this section or at a centralized campus shall not exceed 1.75. The average daily membership for a pupil who is enrolled in a career technical education course or career technical education program provided by a community college or university shall be 0.25 for the accumulation of every three community college or university credits for which a student is enrolled in career technical education courses. The member school district and the career technical education district shall determine the apportionment of the average daily membership and student enrollment for that pupil between the member school district and the career technical education district, except that the amount apportioned shall not exceed 1.0 for either entity. Notwithstanding any other law, the average daily membership for a pupil who is in grade nine, ten, eleven or twelve or in the school year immediately following graduation and who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a centralized campus shall be 0.75. To qualify for funding pursuant to this subsection, a centralized campus shall offer programs and courses to all eligible students in each member district of the career technical education district. Students in an approved career technical education program may generate an average daily membership of up to 1.75 for instruction received during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year. Average daily membership shall not be calculated on the one hundredth day of instruction for the purposes of this section. Average daily membership shall be calculated by dividing the instructional hours of enrollment by six hundred hours, except that:

At least one hundred fifty hours and less than three hundred hours equals 0.25 average daily membership.
At least three hundred hours and less than four hundred fifty hours equals 0.5 average daily membership.
At least four hundred fifty hours and less than six hundred hours equals 0.75 average daily membership.
At least six hundred hours equals 1.0 average daily membership.

Q. The average daily membership for a pupil who is in grade nine, ten, eleven or twelve or in the school year immediately following graduation and who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a leased centralized campus shall not exceed 0.75. Students in an approved career technical education program provided by a leased centralized campus may generate an average daily membership for instruction received during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year. Average daily membership shall be calculated by dividing the instructional hours of enrollment by six hundred hours, except that:

At least one hundred fifty hours and less than three hundred hours equals 0.25 average daily membership.
At least three hundred hours and less than four hundred fifty hours equals 0.5 average daily membership.
At least four hundred fifty hours and less than six hundred hours equals 0.75 average daily membership.
At least six hundred hours equals 1.0 average daily membership.

R. The sum of the average daily membership, as provided in section 15-901, subsection A, paragraph 1, of a pupil who is enrolled in both the school district and in career technical education courses provided at a leased centralized campus shall not exceed 1.75 if all of the following conditions are met:

The course qualifies as a career technical education course.
The course is offered to all eligible students in each member district of the career technical education district and enrolls students from multiple high schools.
The career technical education district program in which the course is included addresses a specific industry need and has been developed in cooperation with that industry, or the leased facility is a state or federal asset that would otherwise be unused or underutilized.
The lease is established at fair market value if the lease is executed for a facility located on the site of a member district and was approved by the joint committee on capital review, except that a lease that was executed or renewed before December 31, 2012 is not subject to approval by the joint committee on capital review.

S. A student who is enrolled in an accommodation school may be treated as a student of the school district in which the student physically resides for the purposes of enrollment in a career technical education district and shall be included in the calculation of average daily membership for either the career technical education district or the accommodation school, or both.

T. Notwithstanding any other law, the student count for a career technical education district shall be equivalent to the career technical education district's average daily membership. Students in an approved career technical education program provided by a satellite campus, centralized campus or leased centralized campus may generate an average daily membership subject to the limits prescribed by subsections D, N, O, P, Q and R of this section, as applicable, for instruction received during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year. Average daily membership shall not be calculated on the one hundredth day of instruction for the purposes of this section. The department may not restrict the instructional time by limiting the particular days of the week or time of the fiscal year for instruction to occur.

U. A school district or charter school may not prohibit or discourage students who are enrolled in that school district or charter school from attending courses offered by a career technical education district, including requiring students to generate a full 1.0 average daily membership or to enroll in more courses than are needed to graduate before enrolling in and attending programs or courses offered by a career technical education district.

V. The governing board of the career technical education district may contract with any charter school that is located within the boundaries of the career technical education district to allow that charter school to offer career and technical education courses or programs as a satellite campus.

W. Beginning in 2020 and every five years thereafter, the career and technical education division of the department of education shall review career technical education district programs and career technical education courses to ensure compliance, quality and eligibility. Any program or course deemed to not meet the requirements set forth by law shall not be funded for the current school year and shall be removed from the approved program and course list for the purposes of funding. The career and technical education division may establish a staggered schedule for reviewing each career technical education district.

X. Notwithstanding subsection D, paragraphs 4 and 9 and subsections P, Q and R of this section, for a student in grade nine, funding shall be provided pursuant to this section only if the student reaches the fortieth day of grade eleven enrolled in an approved career technical education program and meets the requirements prescribed in subsection Z of this section. At that time funding shall be provided for that student for grade nine and for any subsequent year in which the student is eligible for funding pursuant to this section.

Y. On or before September 1 of each year, the office of economic opportunity in collaboration with the department of education shall compile an in-demand regional education list of the approved career technical education programs that lead to a career path in high demand with median-to-high-wage jobs in that region. The office of economic opportunity shall incorporate industry feedback as part of developing the in-demand regional educational list. The office of economic opportunity shall submit the in-demand regional education list to the Arizona career and technical education quality commission for review and approval.

Z. Notwithstanding subsection D, paragraphs 4 and 9 and subsections P, Q and R of this section, for a student in grade nine or in the school year immediately following graduation, funding shall be provided pursuant to this section only if the student is enrolled in a program that was included on the in-demand regional education list compiled pursuant to subsection Y of this section for that student's region for the year in which the student began the program.

AA. For the purposes of this section:

"Base year" means the complete school year in which voters of a school district elected to join a career technical education district.
"Centralized campus" means a facility that is owned and operated by a career technical education district to offer career technical education district programs or career technical education courses.
"Lease" means a written agreement in which the right to occupy or use real property is conveyed from one person or entity to another person or entity for a specified period of time.
"Leased centralized campus" means a facility that is leased and operated by a career technical education district to offer career technical education district programs or career technical education courses.
"Satellite campus" means a facility that is owned or operated by a school district or charter school to offer career technical education district programs or career technical education courses.

§ 15-393.01 Career technical education districts; annual report; performance and accountability

A. The department of education shall include each career technical education district in the department's annual achievement profiles required by section 15-241, except that a career technical education district may not be assigned a letter grade pursuant to section 15-241. Subject to approval by the state board of education, the department shall develop specific criteria applicable to career technical education districts that may not be based solely on the criteria prescribed in the Carl D. Perkins vocational education act, as amended by the Carl D. Perkins vocational and applied technology education act amendments of 1990, as amended by the Carl D. Perkins vocational and technical education act of 1998. The department shall include all of the following performance indicators in the annual achievement profiles and provide a copy of the information to each career technical education district governing board:

The graduation rate of all students enrolled in a career and technical education program or course.
The completion rate for each program offered by the career technical education district.
Performance on assessments required pursuant to section 15-391, paragraph 4, subdivision (b).
Postgraduation employment rates, postsecondary enrollment rates and military service rates for students who complete a career and technical education program.

B. A career technical education district is subject to the performance audits pursuant to section 41-1279.03, subsection A, paragraph 9. The auditor general shall consider the differences and applicable laws for a career technical education district when conducting a performance audit for a career technical education district.

C. On or before December 31 of each year, the career and technical education division of the department of education shall submit a career technical education district annual report to the governor, the president of the senate and the speaker of the house of representatives and shall submit a copy of this report to the secretary of state. The career and technical education division of the department of education shall submit a copy of this report to the joint legislative budget committee for review. The annual report shall include the following:

The average daily membership of each career technical education district, including the average daily membership of each centralized campus, satellite campus and leased centralized campus as defined in section 15-393.
The actual student count of each career technical education district, including the student count of each centralized campus, satellite campus and leased centralized campus as defined in section 15-393.
The programs and corresponding courses offered by each career technical education district, including the location of each program and course.
For each career technical education district based on program or course location:

(a) The student enrollment of each program and corresponding course.

(b) The percentage of students who enrolled in the second year of each program and corresponding course relative to the number of students in the same cohort who enrolled in the first year of each program and corresponding course.

(c) The percentage of students who completed each program relative to the number of students in the same cohort who began the program.

The costs associated with each program offered by the career technical education district.
A listing of any programs or courses that were discontinued by review of the career and technical education division pursuant to section 15-393, subsection W.
A listing of any programs or courses that were continued by review of the career and technical education division pursuant to section 15-393, subsection W.
A listing of any programs or courses that were added by the career and technical education division.
For applicable school districts, the required maintenance of effort and how monies were used to supplement and not supplant base year career and technical education courses, including expenditures related to personnel, equipment and facilities.
For students who meet the requirements to receive funding pursuant to section 15-393, subsection X, students enrolled in an internship course and students enrolled in the year immediately following graduation, a separate listing of the following information for each district:

(a) Average daily membership.

(b) The actual student count.

(d) The percentage of students who completed each program.

(e) The number of certifications and licenses earned by students delineated by those who attended a satellite program and those who attended a centralized campus.

Any other data or information deemed necessary by the department of education.

D. The office of the auditor general, in consultation with the department of education, shall develop and establish uniform cost reporting guidelines, policies and procedures for career technical education district programs. Any guideline, policy or procedure shall allow for the effective comparison of cost between career technical education district programs.

§ 15-394 Preservation of years of employment

The years of employment of a certificated teacher who has been employed by a school district for more than the major portion of three consecutive school years shall be preserved if that teacher moves from a school district to a career technical education district or from a career technical education district to a school district if the school district governing board recognizes the previously established years of employment of the teacher, provided such districts are participating in the career technical education district.

§ 15-395 Enlarging career technical education districts

A. To add school districts to a career technical education district, the career technical education board shall first publish a copy of a proposed resolution accepting the school district into the career technical education district in a newspaper of general circulation in the school district proposing to join the career technical education district once a week for at least two weeks immediately before the date of the consideration of the adoption of the proposed resolution by the career technical education board.

B. After adoption by the career technical education board of the resolution accepting the school district into the career technical education district, the question shall be submitted to the qualified electors of the school district seeking to become a part of the career technical education district at an election held on the first Tuesday after the first Monday in November. The question that is submitted to the qualified electors shall describe the tax rate that is associated with joining the career technical education district and the estimated cost of that tax rate for the owner of a single family home that is valued at one hundred thousand dollars. Authorization is required through an intergovernmental agreement or other written contract between the career technical education district and the school district seeking to become part of the career technical education district in order to enlarge the career technical education district.

§ 15-395.01 Reducing the size of career technical education districts

A. Except as provided in subsection B of this section, to withdraw a school district from a career technical education district, the governing boards of a majority of the school districts participating in the career technical education district shall approve by a majority vote the withdrawal of the school district. If a majority of the school district governing boards approve the withdrawal, the career technical education board shall consider the withdrawal, and to approve the withdrawal the proposed withdrawal must receive the affirmative vote of a majority of the members of the career technical education board. If the career technical education board approves, the question of the withdrawal from the career technical education district shall be submitted to the qualified electors of the school district seeking to withdraw from the career technical education district at the next general election.

B. Notwithstanding subsection A of this section, to withdraw a common school district from a career technical education district, the governing board of the common school district that desires to withdraw from the career technical education district shall approve by a majority vote the withdrawal of the common school district. The governing board of the common school district shall notify the governing board of the career technical education district no later than ten days after the governing board of the common school district approves the withdrawal of the district. If the governing board of the common school district that desires to withdraw from the career technical education district approves, the question of the withdrawal from the career technical education district shall be submitted to the qualified electors of the common school district seeking to withdraw from the career technical education district at the next general election. A common school district that is within the boundaries of a union high school district that is a member of the career technical education district is not eligible to withdraw from the career technical education district pursuant to this subsection.

C. If the withdrawal of a school district is approved as prescribed in subsection A or B of this section, the qualifying tax rate shall remain in effect for the remainder of the current tax year.

D. The school district withdrawn pursuant to this section is not entitled to ownership of any assets held by the career technical education district.

E. If a career technical education district from which a school district withdraws pursuant to this section has outstanding bonded indebtedness, the debt shall continue to be levied on taxable property for all bonds issued before the withdrawal of the school district in the same manner as was levied and collected before the withdrawal of the school district.

§ 15-396 Dissolution of career technical education districts

A. On approval of a majority of the full membership of the career technical education board or on the receipt by the career technical education board of resolutions adopted by the governing boards of the school districts participating in the career technical education district, the career technical education board shall adopt and send to the state board a resolution requesting the dissolution of the career technical education district. The resolution shall state the reasons for the proposed dissolution, set forth a plan for equitable adjustment, division and disposition of the assets and liabilities of the career technical education district and provide that each participating school district will assume its share of the outstanding indebtedness of the career technical education district.

B. On approval of the resolution by the state board, the career technical education district is dissolved in accordance with the provisions of the resolution.

§ 15-397 Effect of unification or consolidation of participating school districts

Notwithstanding sections 15-395 and 15-395.01, if a school district that was participating in a career technical education district at the time that the school district was unified or consolidated pursuant to chapter 4, article 3 of this title, the successor school district that results from that unification or consolidation shall automatically continue to participate in that career technical education district in the same manner as the former school district that was unified or consolidated.

§ 15-398 Career technical education districts; associate degrees; requirements; reports; definitions

A. Notwithstanding any other law, a career technical education district may offer associate degrees that are accredited by a regional or national accreditation agency approved by the United States department of education. Beginning on September 24, 2022, any career technical education district seeking to offer an associate degree program pursuant to this section shall apply for accreditation from a regional accreditation agency.

B. Each career technical education district that offers an associate degree program pursuant to this section must meet both of the following:

All applicable regional or national accreditation requirements.
All applicable state licensure requirements.

C. A career technical education district may offer associate degrees only for career technical education district programs that are on the in-demand regional education list compiled pursuant to section 15-393. When determining whether to offer an associate degree program, the career technical education board shall make its determination based on all of the following criteria:

Whether the career technical education district is able to demonstrate industry demand for the associate degree program.
A financial analysis that shows the short-term and long-term impacts to initiate and sustain the associate degree program, including all of the following:

(a) The source of monies.

(b) Facilities requirements.

(d) Personnel.

(e) Administrative costs.

Whether the associate degree program would unnecessarily duplicate the degree programs offered by other institutions of higher education in this state.
The ability of the career technical education district to support the associate degree program with and the adequacy of the facilities, faculty, administration, libraries and other resources.

D. A career technical education district that is located in the same county as the main campus of any public university or community college district and that is developing an associate degree program shall notify the public university or community college at least sixty days before submitting the report prescribed in subsection E of this section. Within thirty days after the date the career technical education district submits the notice, the public university or community college may provide a written response to the career technical education board for its review. This subsection does not allow a public university or community college to prevent a career technical education district from offering an associate degree program.

E. Before the career technical education board authorizes an associate degree program, the career technical education district must submit a report to the career technical education board that includes all of the following information:

The name of the proposed academic degree program.
The academic department that will offer the proposed degree program.
Whether the instructional modality would be immersion or online, or both.
The total credit hours necessary to complete the proposed degree program.
The proposed inception term.
A brief description of the proposed degree program.
A learning outcomes and assessment plan, including:

(a) Concepts.

(b) Competencies.

The projected enrollment by year for the first three years the degree program is offered.
Evidence of market demand for the proposed degree program.
Similar degree programs offered at other institutions of higher education in this state.
The new resources required, including a long-term plan for faculty recruitment that indicates the ability to pay the salaries of faculty and identifies recruitment strategies for new faculty.
Any written responses provided by a public university or community college pursuant to subsection D of this section.
Proof of transferability of credits earned in the proposed degree program to another accredited institution for each program offered.

F. Each career technical education district that offers an associate degree program pursuant to this section shall submit a report to the joint legislative audit committee on or before October 1 of the fifth year after initially offering that associate degree program. The report shall review the first five years of the associate degree program at the career technical education district and shall include all of the following:

The number of:

(a) Associate degree programs implemented at the career technical education district.

(b) Applicants to each associate degree program.

(d) Applicants who are enrolled in each associate degree program.

(e) Applicants who received degrees from each associate degree program.

The costs of each associate degree program, including cost per degree and the funding sources that are used to finance each degree program.
Current trends in workforce demands that require associate degrees in each specific associate degree program offered.
Current completion and continuation rates, if available, for each cohort of students participating in each associate degree program.
The extent to which each associate degree program fulfills identified workforce needs for new associate degree programs.
Information on the job placement of graduates of each associate degree program.
For each associate degree program, the costs to students, the amount of financial aid offered and the student debt levels of graduates.
Time-to-degree rates and completion rates for each associate degree program.

G. On or before December 1 of each year, each career technical education district that offers an associate degree program shall report to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee all of the following information for the immediately preceding school year:

The total number of students pursuing an associate degree at the career technical education district pursuant to this section.
The total number of associate degrees completed at the career technical education district.
Workforce data showing demand for each associate degree program offered at the career technical education district.
The average cost of tuition per credit hour for each associate degree program offered at the career technical education district.

H. Each career technical education district that offers an associate degree program pursuant to this section shall provide the student, at the time of enrollment in a program, with a list of institutions to which the student's associate degree is transferable.

I. For the purposes of this section:

"Community college" has the same meaning prescribed in section 15-1401.
"Community college district" means a district as defined in section 15-1401.
"Main campus" means the central location of a public university's or community college district's library system and computer center.
"Public university" means a university under the jurisdiction of the Arizona board of regents.

Chapter 4 School Elections

Article 1 General Provisions

§ 15-401 Qualifications of school electors; school district registers; challenge; tally lists

A. A person who is a qualified elector of this state under section 16-121 in the boundaries of the school district twenty-nine days immediately preceding the election is qualified to vote at an election of the school district in the precinct in which he is registered. For the purposes of this title, the term "qualified school elector", "qualified elector", "school elector" or "elector" shall have the qualifications prescribed in this subsection.

B. All school elections shall be conducted by use of school district precinct registers and in the manner as provided in sections 16-579, 16-580 and 16-584. A person offering to vote may be challenged, and the election officers shall thereupon have the powers and duties of general election officers.

C. The forms for the tally list shall be furnished by the county board of supervisors, and the tally lists must be completed and returned to the county school superintendent and shall be kept by him for not less than five years.

§ 15-402 Voting by early ballot

A qualified elector of a school district, who meets the requirements may vote by early ballot.

§ 15-403 Elections; notice; bond election procedure; qualifications of voters; closing of registrations; election precincts; polling places

A. The county school superintendent shall cause notices of a special election except a bond election to be posted at least ninety days previous to the date of the election. The notices shall be posted in at least three public places in the school district. One notice shall be posted at the school if there is one. Bond election notices and procedures shall comply with the requirements of title 35, chapter 3, article 3.

B. The notices shall specify the day and the polling places of the election and the time the polls will be open. A special election or a bond election may be held only on a date prescribed by section 16-204.

C. If the county school superintendent fails to give notice as provided in subsections A and B of this section, any two qualified electors who reside within the district may give similar notice of the election at least seventy-five days prior to the election.

D. A person is not entitled to vote at a special election or an election held at a time and place other than a general election in a school district who has not been a qualified elector in a precinct in the boundaries of the school district for twenty-nine days preceding the election, who is not qualified to register to vote as provided in section 16-101 and who has not registered to vote prior to midnight of the twenty-ninth day preceding the date of the election.

E. The governing board of a school district shall establish school district election precincts that have the same boundaries as the county election precincts as provided in section 16-411 and designate one polling place within each precinct, except that the governing board of a union high school district may divide a county election precinct along the boundaries of common school districts within the boundaries of the union high school district and establish polling places within each common school district. In those cases where a school district boundary bisects a county election precinct, that portion of the election precinct that is within the school district shall be the school district election precinct. The governing board may consolidate school district election precincts if it deems it necessary for each election and designate one polling place for the election precincts that it consolidates. If school district election precincts are consolidated, a school district precinct register shall be prepared for the consolidated precinct. Upon a specific finding of the board, included in the order or resolution designating polling places pursuant to this subsection, that no suitable polling place is available within a precinct of the school district, a polling place for such precinct may be designated within an adjacent precinct. The adjacent precinct need not be within the school district. Any such polling places shall be listed in a separate section of the order or resolution.

F. All elections that are called either by the county school superintendent or the governing board of a school district and that are held at a time other than the general election shall be conducted by the use of school district precinct registers.

§ 15-404 Election officers; compensation

A. In school district elections held at a time and place other than general elections, at least twenty days before the school district election the county school superintendent or other authority conducting the election shall appoint for each election precinct or combination of precincts not fewer than one inspector and two judges as election officers and may appoint additional clerks and marshals necessary to properly conduct the election.

B. For the purpose of this section, an employee of a school district shall not serve as an election officer for the school district. If those appointed are not present at the opening of the polls, the electors present may select them. In all school district elections each election officer shall receive the same compensation as other election officers of a general election.

§ 15-405 Opening and closing of polls

At all school elections the polls shall be open during the same hours as are applicable to general elections. The inspector and two judges shall determine when the hour for opening and closing the polls has arrived. A voter within the polling place at the closing of the polls shall be allowed to vote.

§ 15-406 Cost of elections

A. The cost of all special elections provided in this title, including the preparation of ballots, shall be charged against the funds of the school district or districts involved.

B. The county school superintendent shall contract with the board of supervisors for holding regular school district elections. The contracted cost of such school elections shall be a charge against the county school superintendent who shall prorate such costs to the districts.

§ 15-407 School district ballot option

The governing body of a school district may choose to use either electromechanical or electronic vote recording and ballot counting equipment, or paper ballots for any special election held pursuant to this chapter.

Article 2 School District Governing Board Elections

§ 15-421 Governing boards; members; qualifications; prohibitions; candidate statements; definitions

A. The governing body of a school district shall be a governing board. There shall be three governing board members, except as otherwise provided by this section and section 15-425, subsection A.

B. The governing body of a high school district shall be a governing board composed of:

In a single district, the governing board members of the common school district.
In a union high school district, five members.

C. A person is eligible for election to the office of governing board member if all of the following apply:

The person is a registered voter of this state.
The person has been a resident of the school district for at least one year immediately preceding the day of election.
The person is not subject to registration as a sex offender in this state or in any other jurisdiction.

D. An employee of a school district, including a person who directly provides certified or classified services to the school district as an employee of a third-party contractor, or the spouse of such an employee may not hold membership on the governing board of a school district by which the employee is employed.

E. Notwithstanding subsection D of this section and title 38, chapter 3, article 8, a small school district may employ, including employment through a third-party contractor that provides services to the small school district, a substitute teacher who is related to a member of the governing board as immediate family and who has had the same household of residence within the preceding four years. If a small school district employs a substitute teacher pursuant to this subsection, the member of the governing board who is related to the substitute teacher shall be recused from voting on any matter relating to substitute teachers.

F. A school district may employ, including employment through a third-party contractor that provides services to the school district, a person who served as a member of the school district's governing board during the preceding two years only in a position in which the person will provide services directly to students, including as a certificated teacher, a substitute teacher and an employee or contractor who provides transportation, instructional support or student support services. A school district may increase the time period prescribed in this subsection to be more than two years.

G. A member of one governing board is ineligible to be a candidate for nomination or election to or serve simultaneously as a member of any other governing board, except that a member of a governing board may be a candidate for nomination or election for any other governing board if the member is serving in the last year of a term of office. A member of a governing board shall resign the member's seat on the governing board before becoming a candidate for nomination or election to the governing board of any other school district, unless the member of the governing board is serving in the last year of a term of office.

H. Notwithstanding section 15-511, each county school superintendent shall publish on the superintendent's website the statement of each certified candidate for membership on a school district governing board located in the county. The county school superintendent shall list each school district on the superintendent's website from which a link shall be established to the candidate's name, which shall link to the candidate's statement and photograph. The candidate shall submit the statement to the person at the county school superintendent's office assigned to manage candidate statements, after notice of certification from the county school superintendent's office but not later than twenty-one days before the date that general election early ballots are allowed to be mailed. The person shall post each candidate's statement on the county school superintendent's website not later than fourteen days before the date that general election early ballots are allowed to be mailed. If a candidate does not submit a statement, the county school superintendent's website shall state "no response submitted" for the candidate. The candidate statements shall be posted on the website alphabetically by each school district and by candidate. The candidate statement shall be typewritten or electronically submitted. The county school superintendent shall post the statements verbatim as they are received unless a candidate requests in writing that typographical errors be corrected. The candidate statement shall contain the following items in the same size and format for each candidate:

A recent photograph of the candidate.
A statement not to exceed five hundred words.
A disclosure of any relationships by affinity, by consanguinity or by law to the third degree that exist between the candidate and any current governing board members or other candidates for election to the same governing board.

I. Persons related as immediate family who have the same household of residence within four years prior shall not serve simultaneously on the governing board of the same school district if the governing board is composed of five members. For a school district with a student count of at least two hundred fifty that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall serve simultaneously on the governing board of the same school district if the governing board is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

J. A person related as immediate family who has the same household of residence within four years prior to a member of the governing board of the same school district is ineligible to be a candidate for nomination or election to that governing board if the governing board is composed of five members, except that a person related as immediate family who has the same household of residence within four years prior to a member of a governing board may be a candidate for nomination or election to the governing board of the same school district if the member is serving in the last year of a term of office. For a school district with a student count of at least two hundred fifty that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall be eligible to be a candidate for nomination or election to a governing board that is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

K. Persons related as immediate family who have the same household of residence within four years prior are ineligible to be simultaneous candidates for nomination or election to the governing board of the same school district if the governing board is composed of five members. For a school district with a student count of at least two hundred fifty that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall be simultaneous candidates for nomination or election to a governing board that is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

L. For the purposes of this section:

"Household of residence" means the place of abode during applicable time periods or the residence address used by an individual for voter registration or property tax purposes.
"Immediate family" means individuals who are married to each other and any children of those individuals.
"Small school district" has the same meaning prescribed in section 15-901.

§ 15-422 Nominating petitions; ballots

A. Nominating petitions shall be filed with the county school superintendent as prescribed by title 16, chapter 3. Nominating petitions shall be signed by a number of qualified electors of the district as provided in section 16-322. Nominating petitions for persons seeking to fill a vacancy on a governing board shall be designated as provided in section 16-314.

B. The county school superintendent may cause separate ballots to be prepared, or such school district candidates' names may be included as a part of the regular ballot. In any event the names of all persons whose petitions have been filed shall appear on a ballot, without partisan or other designation except the title of the office.

§ 15-423 School district precinct registers; date of preparation; contents; copies

A. By the fifth day preceding the elections for membership on school district governing boards the county recorder shall prepare from the original affidavits of registration at least four printed or typed lists of all uncanceled registrations of each school district in the county, and the lists are the official school district precinct registers.

B. The official school district precinct registers shall contain all information required to be included on precinct registers. The county recorder may combine the precinct register and the official school district precinct register into one common register.

C. The county recorder shall, upon request, provide copies of school district precinct registers in the manner and for the fees prescribed in section 16-168, or section 16-172 for political subdivisions, for copies of precinct registers.

D. By the fifth day preceding a special election or an election held at a time and place other than a general election in a school district, the county recorder shall prepare from the original affidavits of registration at least four printed or typed lists of all uncanceled registrations of each school district election precinct, and the lists are the official school district precinct registers. The official school district precinct registers shall contain all information required to be included on precinct registers. The governing board of the school district shall request of the county recorder and the county recorder shall provide to the school district copies of school district precinct registers in the manner and for the fees prescribed in section 16-172 for copies of precinct registers.

§ 15-424 Election of governing board members; terms; reduction of membership; statement of contributions and expenditures

A. A regular election shall be held for each school district at the time and place, and in the manner, of general elections as provided in title 16.

B. Except as provided in subsection C of this section and sections 15-429 and 15-430, the term of office for each member shall be four years from January 1 next following the member's election.

C. At the first general election held for a newly formed district, three members shall be elected. The candidate receiving the highest number of votes shall be elected to a four-year term, and the candidates having the second and third highest number of votes shall be elected to two-year terms. A district increasing its governing board to five members shall elect at the next general election members in the following manner:

If one of the previous three offices is to be filled, the three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four-year terms.
If two of the previous three offices are to be filled, the candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four-year terms. The candidate receiving the fourth highest number of votes shall be elected to a two-year term. Thereafter all such offices shall have four-year terms.

D. A member who is serving on a governing board for a district that reduces the number of its governing board members to three pursuant to section 15-425.01 shall continue to serve as a member of the governing board until expiration of the member's current term of office. A district that reduces the number of its governing board members to three pursuant to section 15-425.01 shall reduce the number of its members as follows:

If two of the previous five offices are expiring at the first general election held after the general election in which a district reduces the number of its governing board members to three pursuant to section 15-425.01:

(a) At the first general election held after the general election in which a district reduces the number of its governing board members to three pursuant to section 15-425.01, the candidate receiving the highest number of votes shall be elected to a four-year term.

(b) At the second general election held after the general election in which a district reduces the number of its governing board members to three pursuant to section 15-425.01, the candidates receiving the highest and second highest number of votes shall be elected to four-year terms.

If three of the previous five offices are expiring at the first general election held after the general election in which a district reduces the number of its governing board members to three pursuant to section 15-425.01, the candidate receiving the highest number of votes shall be elected to a four-year term at the election.

E. If only one person files a nominating petition or nomination paper for a write-in candidate for an election to fill a district office, the board of supervisors, not earlier than one hundred five days before the election, may cancel the election for the position and appoint the person who filed the nominating petition or nomination paper to fill the position. If no person files a nominating petition or nomination paper for an election to fill a district office, the board of supervisors, not earlier than one hundred five days before the election, may cancel the election for that office and that office is deemed vacant and shall be filled as provided in section 15-302. A person who is appointed pursuant to this subsection is fully vested with the powers and duties of the office as if elected to that office.

F. If two or more candidates receive an equal number of votes for the same office, and a higher number than any other candidate for that office, whether on the tally by the school election board or canvass of returns by the board of supervisors, or on recount by a court, the officer or board whose duty it is to declare the result shall determine by lot and in the presence of the candidates which candidate shall be declared elected.

G. Position of the names of candidates for each office shall be rotated so that each candidate occupies each position on the ballot an equal number of times, insofar as is possible, for each ballot style. For candidates seeking election to fill a vacancy on the governing board, the ballot shall be designated as provided in section 16-502.

H. This section does not require that a school election at which no member is to be elected be held on a general election day.

I. All candidates for the office of school district governing board member shall file with the county school superintendent a statement of contributions and expenditures as provided in section 16-926.

§ 15-425 Election to determine whether membership of governing board shall increase to five members; form of ballot; reconsideration procedure if negative vote; appointment or election of new members

A. A qualified elector of a school district may submit to the county school superintendent a petition, signed by not less than ten per cent of the qualified school electors of the district, requesting the county school superintendent to call a special election to determine whether or not the number of members of the governing board for the school district should be increased to five. Upon receipt of the petition, in proper form and with the necessary signatures, the county school superintendent shall thereafter call a special election not later than ninety days prior to the general election to determine the question of whether the membership of the governing board for the school district shall be increased to five.

B. Public notices of a special election called to determine whether there shall be five governing board members shall be posted in not less than three public places in the district at least ten days prior to the election. The election shall be held as prescribed by the county school superintendent and electors shall possess the qualifications as prescribed for the election of governing board members.

C. The ballots shall contain the words: "Five governing board members, yes. Five governing board members, no."

D. If the majority of the electors voting on the question votes in the affirmative, the school district shall elect five governing board members, as provided in section 15-424. If the majority of the electors voting on the question of increasing the number of governing board members votes in the negative, the question shall not again be placed upon the ballot of an election in the district until the lapse of one year from the date of such election.

E. Notwithstanding section 15-424 and subsection D of this section, if the voters approve an increase in the size of the governing board at least one year before the next general election, the county school superintendent may appoint the two new members or call a special election pursuant to section 15-302.

F. The term of the two new members appointed by the county school superintendent or elected through a special election expires January 1 following the next general election. At the first general election following the increase in the size of the governing board, the candidates elected and their terms shall be determined pursuant to section 15-424, subsection C.

§ 15-425.01 Election; reduction of governing board to three members; ballot; requirements; reconsideration

A. A qualified elector of a school district that qualifies under subsection B of this section may submit to the county school superintendent a petition, signed by at least ten percent of the qualified electors of the district, requesting that the question of reducing the number of members of the school district governing board to three be considered in the next general election held under section 15-424. On receipt of a petition that is in proper form and has the necessary signatures, the county school superintendent shall submit to the qualified electors of the school district at the next general election held under section 15-424 the question of whether the membership of the school district governing board should be reduced to three.

B. Only a school district that has previously increased its governing board to five members under section 15-425 is eligible to reduce the number of its governing board members to three under this section.

C. Public notices that the general election will address the question of reducing the number of governing board members to three shall be posted in at least three public places in the school district at least ten days before the general election.

D. The ballots shall contain the words: "Three governing board members, yes. Three governing board members, no."

E. If the majority of the electors voting on the question of reducing the number of governing board members votes in the affirmative, the school district shall reduce the number of its governing board members to three as provided in section 15-424. If the majority of the electors voting on the question votes in the negative, the question may not be placed on the ballot of an election in the district until at least one year after the date of the election.

§ 15-426 Tally and canvass of votes; certificate of election; oath of office

A. The officers of a special election shall, as soon as the polls are closed, tally the votes cast, enclose one list of the persons voting and one copy of the tally sheet in a cover and seal and direct the cover and its contents to the county school superintendent. The inspector shall place in the ballot box one list of the persons voting, one copy of the tally sheets and the ballots. The inspector shall lock the ballot box until the county school superintendent and the chairman of the board of supervisors meet to canvass the returns. Unless otherwise specified in this title, the officers of a regular school election shall proceed in the manner provided in title 16 for the tally of votes.

B. The county school superintendent and the chairman of the board of supervisors shall meet within thirty days, unless otherwise specified in this title, following the date of any school election and canvass the returns in accordance with procedures for the canvass of returns in a general election. The county school superintendent shall declare the results of the election, shall declare elected the person receiving the highest number of votes for each office to be filled, and shall issue to him a certificate of election.

C. When each governing board member elected subscribes to the oath of office attached to the certificate, it shall be forwarded on the same day to the county school superintendent. Members of governing boards may administer the oath of office to each other.

§ 15-427 Governing board of a union high school district; qualifications; terms

A. The members of the governing board of a union high school district shall be qualified school electors of the district. Members shall be elected from the union high school district at large except as provided in section 15-431.

B. The term of office of the members of the union high school district governing board shall be four years, except:

Upon formation of a union high school district, the governing board shall be appointed by the county school superintendent and shall hold office until January 1 following the next general election.
At the first general election after formation of the district, members shall be elected in the following manner:

(a) The three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.

(b) The two candidates receiving the fourth and fifth highest number of votes shall be elected for two year terms. Thereafter all such offices shall have four year terms.

§ 15-428 Election of governing board members of a union high school district

A. Members of the governing board of a union high school district shall be elected at the time and place and in the manner that members of other school districts are elected, as nearly as is practicable, except as provided in section 15-427, subsection B.

B. Election officers shall certify the returns to the county school superintendent who shall meet with the chairman of the board of supervisors within thirty days following the date of the election and canvass the returns and issue certificates of election, as provided in section 15-426.

§ 15-429 Election of governing board members of a joint common school district

A. A joint common school district shall be governed by a board of five members, one of whom shall reside in and be elected from each of the counties comprising the district and the remaining number shall reside in the district and be elected at large unless the district has implemented an alternative election system as provided in section 15-431. Within ten days after the creation of the joint common school district, the county school superintendent of the jurisdictional county, after notifying the county school superintendent of any other county whose territory, or a portion thereof, is in the new district, shall call a special election, which shall be held within twenty days after the issuance of such call, to elect a governing board for the joint common school district. The polling places for the election shall be located in each county of the district. The election shall be conducted as provided by law for other school districts, except that the members first elected shall serve until January 1 following the next general election. At the general election held next following the special election, and thereafter, the members shall be elected as prescribed for five member boards in sections 15-424 and 15-427.

B. The county school superintendent shall call the first meeting of the newly formed governing board within ten days after its election. Each member shall be given five days' written notice in advance of the meeting. The meeting shall be held at a location convenient to all members. Business shall be conducted as provided by law for the conduct of school districts.

§ 15-430 Governing board members of newly consolidated district; election of members

A. If school districts are consolidated as provided in section 15-459, the terms of the governing board members of the previously existing school districts do not expire on the effective date of the consolidation and continue until January 1 following the next general election, during which time the members of the governing boards of the previously existing school districts shall serve as the governing board of the new school district.

B. At the next general election held following the consolidation and thereafter, five members shall be elected as prescribed in section 15-427, subsection B. The new board shall take office on January 1 following the general election.

§ 15-431 Alternative election procedure of governing board members

A. If, for the prior school year, a school district had an average daily membership of at least one thousand and the total minority enrollment in the district, as reported to the department of education, was at least twenty-five per cent of the total enrollment of the district, the governing board may vote to implement an alternative election system for the election of governing board members. The alternative election system implemented by the board may include a vote by the board to divide the school district into as many single member districts as there are governing board members or a vote by the board to implement any other election method that is consistent with section 2 of the voting rights act of 1965 (42 United States Code section 1973), as amended. A school district that has implemented an alternative election system for the election of governing board members as provided by this subsection may continue to elect governing board members using the alternative election system even if the average daily membership of the school district or percentage of minority pupils enrolled in the district falls below the levels prescribed in this subsection. If the average daily membership of the school district or percentage of minority pupils enrolled in the district falls below the levels prescribed in this subsection, the governing board may vote to elect governing board members using the at large election method as prescribed in section 15-429.

B. If the governing board of a school district has implemented a single member district election system as provided in subsection A of this section, the system shall be implemented as follows:

The governing board shall define the boundaries of the single member district so that the single member districts are as nearly equal in population as is practicable, except that if the school district lies in part in each of two or more counties, at least one single member district may be entirely within each of the counties comprising the school district if this district design is consistent with the obligation to equalize the population among single member districts.
The boundaries of the single member district shall follow election precinct boundary lines, as far as practicable, in order to avoid further segmentation of the precincts.
A number shall be assigned to each of the new single member districts in ascending order according to the percentage of the district's minority population in each single member district.
As the terms of the governing board members who were elected at large expire, the members shall be replaced by members who are elected from the single member districts in ascending order of single member district number.
A person who is a registered voter of this state and who is a resident of the single member district is eligible for election to the office of school board member from the single member district.
Nominating petitions shall be signed by the number of qualified electors of the single member district as provided in section 16-322.

C. If the governing board has voted to implement any other alternative election system for the election of governing board members, as provided in subsection A of this section, the implementation of the system shall be as approved by the United States justice department.

Article 3 School District Boundary Provisions and Elections

§ 15-441 School districts; designation

A. The bases of the educational organization of the county and state are the school districts as defined in section 15-101. Existing districts shall be continued, and new districts may be formed as provided in this title.

B. Each school district shall be designated as school district no. _____ (insert the number of the district), of _______ county (insert the name of the county).

§ 15-442 Record of school district boundaries; limitation on change; notice to governing board

A. The county school superintendent, on or before December 1 each year, shall file with the board of supervisors and the county assessor a transcript of the boundaries of each school district within the county. The boundaries shown in the transcript shall become the legal boundaries of the districts as of the following July 1.

B. The boundaries of a school district shall not be changed except as provided in this title and then only after the governing boards of the districts affected have had written notice of the proposed change from the county school superintendent and have had an opportunity to be heard.

C. If the county school superintendent and county assessor determine that the boundaries of any school district are in conflict with one another or with other intersecting legal boundaries, traverse within a legally described boundary or are incorrectly described, the county school superintendent shall change, reconcile and describe the school district boundaries accurately and shall make a report of those boundary adjustments to the board of supervisors. When the board of supervisors approves a district boundary report that is submitted by the county school superintendent, those boundaries shall be the legal boundaries and descriptions of the school district within that county.

§ 15-443 Formation of new common school district

A. New common school districts may be formed in unorganized territory on presentation to the county school superintendent of a petition which:

Is signed by the parents or guardians of at least ten pupils. Persons who sign the petition shall:

(a) Be residents of the proposed new common school district.

(b) Reside more than four miles from any school district schoolhouse.

Set forth the boundaries of the proposed common school district.

B. For any common school district formed after July 1, 1988, the tax rate levied for the district shall be at a rate not less than the rate prescribed in section 15-971, subsection B, paragraph 2. Any monies received from the tax levy in excess of the additional amounts prescribed in section 15-991 shall be deposited in the state general fund.

§ 15-444 Formation of union high school district; petition for establishment; election; notice

A. Two or more adjoining school districts jointly having a student count of at least two hundred pupils and an assessed valuation of at least $2,000,000 may unite and form a union high school district. A union high school district may not be formed of territory already embodied in a union high school district unless the remaining territory of the original union high school district is contiguous and has an assessed valuation of at least $5,000,000.

B. If a majority of the governing boards of each of two or more adjoining school districts unites in a petition to the county school superintendent to establish a union high school district, or if ten percent of the residents of each of two or more adjoining school districts unite in a petition to establish a union high school district, the county school superintendent shall call an election to be held at the next regular election of the governing board, if within ninety days after receipt of the petition, to determine the question, or a special election called for that purpose within sixty days.

C. Public notices of the election, not less than three in each school district comprising the proposed union high school district, shall be posted, one to be on the door of the schoolhouse in each district, at least ten days before the election.

D. The election shall be conducted as nearly as practicable in the manner prescribed in section 15-459. The ballots shall contain the words "union high school district, yes" and "union high school district, no", and the voter shall signify his desired choice.

E. If a majority of the persons voting within each school district comprising the proposed union high school district votes in favor of establishing a union high school district, the union high school district shall become effective as provided in section 15-459, subsection J.

F. If a union high school district is established from a unified school district as provided in this section, a common school district is established with boundaries coterminous with the boundaries of the former unified school district.

§ 15-444.01 Common school districts within a high school district; proposed expansion or reduction; notification

The governing board of a common school district that is located within a high school district shall notify and obtain permission from the governing board of the high school district before taking any action that results in the expansion or reduction of the common school district's boundaries. The notification and permission required by this section shall take place at least ninety days before the beginning of the fiscal year in which the proposed expansion or reduction is scheduled to take effect.

§ 15-445 Residents of unorganized territory; school district elections

A. The county school superintendent, on receiving notification from the state school superintendent pursuant to section 15-825.02, subsection B, shall do all of the following before calling an election:

Establish the boundaries of the proposed school district, taking into consideration communities of interest and excluding Indian reservations and other federal lands where reasonable to do so. During the period that the county school superintendent is considering the new school district boundaries, the county school superintendent shall conduct at least two public meetings at which public testimony is heard and questions are answered.
Identify adjacent school districts that accept at least twenty-five per cent of their open enrollment or certificate of educational convenience students from the unorganized territory and that are willing to accept the unorganized territory into the existing school district. If there is only one adjacent school district that meets these criteria, the boundaries of that school district shall be reestablished to include the unorganized territory without an election.
If there is more than one adjacent school district that meets the criteria prescribed in paragraph 2 of this subsection, prepare a pamphlet and a ballot question that includes the proposed boundaries and identifies existing adjacent school districts that are willing to accept the unorganized territory into the existing school district. The pamphlet shall be mailed to each household with one or more qualified electors. The pamphlet and ballot shall require the voters within the boundaries proposed by the county school superintendent to join an existing adjacent school district. The pamphlet and ballot shall include the full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under each of the ballot options 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).

(c) An owner occupied residence whose assessed valuation is twice the assessed valuation of the residence in subdivision (a).

(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.

B. The county school superintendent shall schedule the election on the next available general election date allowed by law.

C. On a canvass of the vote and a determination by the county school superintendent that a majority of the voters approve joining an existing adjacent school district, the county school superintendent shall notify the existing school district of the following:

That the boundaries of the school district shall be revised to include the property identified in the boundaries established by the county school superintendent.
That the school district shall provide the same educational services that are currently provided to students who reside in current boundaries of the school district to all students within the revised boundaries at the beginning of the next school year.

D. If the adjacent school district is a common school district that is within the boundaries of a union high school district, the unorganized territory shall join both the common school district and the union high school district. If the adjacent school district is a common school district that is not within the boundaries of a high school district, the unorganized territory shall join the common school district, and high school pupils who reside in the previously unorganized territory shall be educated in the same manner as high school pupils who reside in the common school district.

§ 15-447 Offer of instruction in high school subjects by common school districts; limitations

The state board of education may grant permission to the governing board of a common school district to offer instruction in high school subjects, grades nine through twelve, except that the state board shall not grant permission if the qualified electors of a common school district have voted against the formation of a high school district within the last five years. If the qualified electors of a common school district vote against the formation of a high school district within one year after the state board has granted permission to the governing board to offer instruction in high school subjects, the governing board shall cease to offer instruction in high school subjects at the end of the current year and shall not offer such instruction until such time as the state board has again granted permission in accordance with this section. Enrollment of pupils in grades nine through twelve shall be deemed to be enrollment in high school. For purposes of computing the base support level, the support level weight for high school districts shall be used. Successful completion of a prescribed course of study in grades nine through twelve entitles a pupil to a certificate of high school graduation.

§ 15-447.01 Common school districts; offer of instruction in grade nine

A. Before a common school district offers instruction in grade nine pursuant to section 15-901, subsection A, paragraph 3, subdivision (b), the common school district governing board shall:

Conduct a preliminary vote at a public meeting to consider the question of offering instruction in grade nine.
Send a letter expressing the common school district's interest in offering instruction in grade nine to the union high school district or the unified school district where a majority of the common school pupils would otherwise enroll in grade nine.
Hold a public hearing on the issue at least ninety days after the letter of interest is sent as prescribed in paragraph 2 of this subsection.
Conduct a final vote on the issue of offering instruction in grade nine. The final vote prescribed in this paragraph shall occur no later than January 15 of the school year that precedes the school year in which instruction in grade nine will first be offered and at least thirty days after the public hearing prescribed in paragraph 3 of this subsection.

B. Notwithstanding any other law, a common school district that offers instruction in grade nine pursuant to section 15-901, subsection A, paragraph 3, subdivision (b) may:

Conduct an election to exceed the revenue control limit as provided in sections 15-481 and 15-482 and use the weighted student count of pupils in grade nine as part of the calculation for the increase in the revenue control limit.
Use the count of pupils in grade nine to determine equalization assistance pursuant to section 15-971.

C. A common school district may not offer instruction in grade nine in a school facility where instruction is provided to pupils in kindergarten programs and grades one through six, or any combination of kindergarten instruction or grades one through six.

§ 15-448 Formation of unified school district; board membership; budget

A. One or more common school districts and a high school district with coterminous or overlapping boundaries may establish a unified school district pursuant to this section. Unification of a common school district and a high school district is not authorized by this section if any of the high school facilities owned by the new unified school district would not be located within its boundaries.

B. Formation of a unified school district shall be by resolutions approved by the governing boards of the unifying school districts and certification of approval by such governing boards to the county school superintendent of the county or counties in which such individual school districts are located. A common school district and high school district that unify pursuant to this section shall not exclude from the same unification a common school district that has overlapping boundaries with the high school district and that wishes to unify. Except as provided in subsection D of this section, the formation of a unified school district becomes effective on July 1 of the next fiscal year following the certification of the county school superintendent. An election is not required to form a unified school district pursuant to this section. Notice of the proposed vote of the governing boards on the resolutions prescribed in this subsection shall be posted in at least three public places in each of the school districts proposed to be unified at least ninety days before the proposed vote. At least ninety days before the governing boards vote on the resolutions prescribed in this subsection, the governing boards shall mail a pamphlet to each household with one or more qualified electors that lists the full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed unification for each of the following:

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.
An owner-occupied residence whose assessed valuation is one-half of the assessed valuation of the residence in paragraph 1 of this subsection.
An owner-occupied residence whose assessed valuation is twice the assessed valuation of the residence in paragraph 1 of this subsection.
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.

C. The boundaries of the unified school district shall be the boundaries of the former common school district or districts that unify. The boundaries of the common school district or districts that are not unifying remain unchanged. The county school superintendent, immediately on receipt of the approved resolutions prescribed by subsection B of this section, shall file with the board of supervisors, the county assessor and the superintendent of public instruction a transcript of the boundaries of the unified school district. The boundaries shown in the transcript shall become the legal boundaries of the school districts on July 1 of the next fiscal year.

D. On formation of the unified school district, the governing board consists of the members of the former school district governing boards and the members shall hold office until January 1 following the first general election after formation of the district. For the purpose of all actions that are necessary to operate the unified district for the next year, the unified school district governing board is constituted and may conduct meetings after the adoption of the unification resolutions prescribed by subsection B of this section.

E. Beginning on January 1 following the first general election after formation of the unified school district, the governing board shall have five members. At the first general election after the formation of the district, members shall be elected in the following manner:

The three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four-year terms.
The two candidates receiving the fourth and fifth highest number of votes shall be elected to two-year terms. Thereafter all offices shall have four-year terms.

F. The new unified school district may appoint a resident of the remaining common school district to serve as a nonvoting member of the governing board to represent the interests of the high school pupils who reside in the remaining common school district and who attend school in the unified school district.

G. For the first year of operation, the unified school district governing board shall prepare a consolidated budget based on the student counts from the school districts comprising the unified school district. The unified school district may budget for unification assistance pursuant to section 15-912.01.

H. The governing board of the unified school district shall prepare policies, curricula and budgets for the district. These policies shall require that:

The base compensation of each certificated teacher for the first year of operation of the new unified school district shall not be lower than the certificated teacher's base compensation for the prior year in the previously existing school districts.
The certificated teacher's years of employment in the previously existing school districts shall be included in determining the teacher's certificated years of employment in the new unified school district.

I. On formation of a unified school district, any existing override authorization of the former high school district and the former common school district or districts shall continue until expiration based on the revenue control limit of the school district or districts that had override authorization before unification. The unified school district may request new override authorization for the budget year as provided in section 15-481 based on the combined revenue control limit of the new district after unification. If the unified school district's request for override authorization is approved, it will replace any existing override for the budget year.

J. The unified school district shall admit high school pupils who reside in a common school district that was located within the boundaries of the former high school district. For the purposes of determining student count and for apportionment of state aid, the school membership of these pupils is deemed to be enrollment in the unified school district.

K. All assets and liabilities of the unifying school districts shall be transferred and assumed by the new unified school district. Any existing bonded indebtedness of a common school district or a high school district unifying pursuant to this section shall be assumed by the new unified school district and shall be regarded as an indebtedness of the new unified school district for the purpose of determining the debt incurring authority of the district. Taxes for the payment of such bonded indebtedness shall be levied on all taxable property in the new unified school district, but nothing in this subsection shall be construed to relieve from liability to taxation for the payment of all taxable property of the former high school district if necessary to prevent a default in the payment of any bonded indebtedness of the former high school district. The residents of a common school district that does not unify shall not vote in bond or override elections of the unified school district and shall not be assessed taxes as a result of a bond or override election of the unified school district.

L. If the remaining common school district had authorization for an override as provided in section 15-481 or 15-482, the override authorization continues for the remaining common school district or districts in the same manner as before the formation of the unified school district.

M. The bonding authorization and bonding limitations continue for the remaining common school district or districts in the same manner as before the formation of the unified school district.

N. This section does not relieve a school district formed pursuant to section 15-457 or 15-458 of its liability for any outstanding bonded indebtedness.

For school districts that become unified after July 1, 2004 and where all of the common schools were eligible for the small school district weight pursuant to section 15-943, paragraph 1, subdivision (a) when computing their base support level and base revenue control limit before unification, the unified school district may continue to use the small school district weight as follows:
Annually determine the common school student count and the weighted student count pursuant to section 15-943, paragraph 1, subdivision (a) for each common school district before unification.
Calculate the sum of the common school districts' student counts and weighted student counts determined in paragraph 1 of this subsection.
Divide the sum of the weighted student counts by the sum of the student counts determined in paragraph 2 of this subsection.
The amount determined in paragraph 3 of this subsection shall be the weight for the common schools in the unified school district.

P. A unified school district may calculate its revenue control limit and district support level by using subsection O of this section as follows:

Determine the number of individual school districts that existed before unification into a single school district.
Multiply the amount determined in paragraph 1 of this subsection by six hundred.
Multiply the amount determined in paragraph 2 of this subsection by 0.80.
If the amount determined in paragraph 3 of this subsection exceeds the student count of the unified school district, the unified school district is eligible to use subsection O of this section.

Q. Subsections O and P of this section shall remain in effect until the aggregate student count of the common school districts before unification exceeds the aggregate number of students of the common school districts before unification authorized to utilize section 15-943, paragraph 1, subdivision (a).

§ 15-449 Formation of unified school district by common school district; petition for establishment; election; notice

A. A common school district having a student count of at least two hundred pupils and an assessed valuation of at least $2,000,000, by a majority vote of the qualified school electors of the school district, may establish a unified school district with boundaries coterminous with the boundaries of the common school district.

B. If a majority of the governing board of the common school district unites in a petition to the county school superintendent to establish a unified school district, or if ten percent of the residents of the common school district unite in a petition to establish a unified school district, the county school superintendent shall call an election to be held at the next regular election of the governing board, if the next regular election is within ninety days after receipt of the petition, to determine the question, or shall call a special election for that purpose within one hundred twenty days.

C. At least five public notices of the election shall be posted, one to be on the door of the schoolhouse in the district, at least ninety days before the election if the election is at least ninety days after receipt of the petition or as soon as practicable if the election is fewer than ninety days after receipt of the petition.

D. The election shall be conducted as nearly as practicable in the manner prescribed in section 15-459. The ballots shall contain the words "unified school district, yes" and "unified school district, no", and the voter shall signify his desired choice.

E. If a majority of the persons voting in the common school district votes in favor of establishment of a unified school district, the unified school district becomes effective as provided in section 15-459, subsection J.

§ 15-450 Formation of a new joint unified school district; petition; report; election; notice; ballots; canvass of votes; appointment of governing board

A. Notwithstanding any other statute, a new joint unified school district may be formed if the formation is approved by the state board of education and if the following requirements are met:

The boundaries of the proposed new joint unified school district include an incorporated city that is divided by two counties.
The proposed new joint unified school district includes territory within the boundaries of two or more existing school districts.
The proposed new joint unified school district would have a student count of not less than six hundred.
A high school is not located within the boundaries of the proposed new joint unified school district.
The assessed valuation of the proposed school district is at least two million dollars.
The governing boards of the districts affected have been given notice of the proposed change and an opportunity to be heard pursuant to section 15-442, subsection B.

B. If it is desired that a new joint unified school district be formed pursuant to the provisions of this section, ten per cent or more of the qualified electors residing within the boundaries of the proposed joint unified school district shall file petitions with the county school superintendents of the counties in which the territory of the proposed district is situated. The petitions shall describe the territory to be included in the proposed joint unified school district and shall request that the formation of the proposed district be submitted to the qualified electors who reside within the proposed district.

C. Each county school superintendent with whom petitions for the formation of a joint unified school district are filed shall examine the petitions within fifteen days of the date of receipt to determine their sufficiency, including the adequacy of the signatures from the portion of the proposed district within his county. If the petitions are found sufficient, the county school superintendent shall transmit the petitions to the state board of education.

D. The state board of education shall promptly schedule a review of the issue of the formation of the proposed joint unified school district after receiving the petitions from the county school superintendents pursuant to subsection C of this section. The board shall approve or reject the formation of the proposed joint unified school district within sixty days of the date of receipt of the petitions. The board shall consider:

Operational costs of the existing and proposed districts.
Travel times and distances.
Climatic conditions.
Local terrain.
The number of pupils.
The fairness and appropriateness of any redistribution of taxable wealth from an existing school district to a proposed joint unified school district.
Whether the assessed valuation of the proposed joint unified school district is sufficient to support the district in a manner comparable to other districts of similar size.

If the state board after considering all such factors determines that the proposed new district will not cause an undue adverse effect on the operations of any existing school district, jeopardize the operation of the proposed joint common school district or cause a disproportionate amount of taxable wealth to be redistributed, it shall approve the petitions and return them to the respective county school superintendents.

E. On approval from the state board of education, the county school superintendent of each county whose territory or a portion of whose territory will be included in the proposed joint unified school district shall submit the question of the formation of the proposed joint unified school district to the voters at a general election or at a special election to be held for that purpose. If no general election is scheduled to be held within sixty days after the date the county school superintendent receives the approved petitions from the state board of education, he shall promptly call a special election to be held within sixty days after receipt of the approved petitions. Notice of the election shall be given by the county school superintendent to the boards of supervisors. At least ten days before the election, the county school superintendent shall cause notice of the proposed election to be posted in not less than three public places in the proposed district and to be published at least once in a newspaper of general circulation in the proposed district. The notice shall state the following:

The question to be voted on and the boundaries of the proposed joint unified school district with sufficient definiteness to make them readily ascertainable.
A description of voter qualifications, including requirements that the voters shall be residents of the proposed district.
The location of voting places within the proposed district, at least one of which shall be in each county.

F. Within ten days after the election, the county school superintendent and the chairman of the board of supervisors of each county shall canvass the vote. If a majority of the votes cast in each county of persons who reside within the proposed district favors formation of the proposed joint unified school district, the boards of supervisors shall jointly declare the election and the joint unified school district shall become operative from and after June 30 next following the election.

G. If the joint unified school district includes territory located in two or more counties, the county of jurisdiction is the county in which the largest number of qualified electors of the joint unified school district resides, except that if all of the existing school buildings are located in one county, that county is the county of jurisdiction. The county school superintendent of the jurisdictional county shall perform all duties for and with respect to the joint unified school district required to be performed by county school superintendents. The board of supervisors of the jurisdictional county shall perform all duties for and with respect to the joint unified school district required to be performed by boards of supervisors, except that school district taxes to be levied on property in the portion of the joint unified school district lying in another county shall be levied by the board of supervisors of the other county or counties and on receipt shall be transferred to the county of jurisdiction.

H. If a new joint unified school district is authorized, the governing boards of the existing school districts shall prepare a projected list of assets for the existing districts prior to the end of the fiscal year in which the election is held. The governing boards of the original school districts and the new joint unified school district shall prepare a final statement of assets for the formerly existing school districts as of the end of the fiscal year in which the election was held and shall have the statement of cash and bonded indebtedness certified by the county treasurers by August 30 of the year in which the new school district becomes operative. The governing boards of the original school districts and the new joint unified school district shall set aside sufficient assets or provide other means to satisfy the liabilities of the former existing districts except for bonded indebtedness and approve the final division of all assets by September 15 of the year in which the new school district becomes operative. If one or more of the governing boards fail to provide for satisfying the liabilities and fail to approve the division of assets by September 15, the county attorney or attorneys shall determine the means to satisfy the liabilities and final division of assets by October 1 of the fiscal year in which the new school district becomes operative.

I. The division of bonded indebtedness of the original school districts shall be in accordance with the provisions of section 15-457, subsection B. In addition, any debt due to lease-purchase agreements shall be handled in a similar manner as outlined for bonded indebtedness in section 15-457, subsection B.

J. Sections 15-457, 15-975 and 15-997 apply to joint unified school districts formed under this section.

K. A joint unified school district shall not be formed if any of the resulting school districts would have a student count for the current year of less than six hundred.

L. The governing board of the joint unified school district shall prepare policies, curricula and budgets for the new school district. These policies shall require that:

The base salary of each teacher for the first year of operation of the new school district shall not be lower than the teacher's base salary for the prior year in the previously existing school district.
The teacher's years of employment in the previously existing school district shall be included in determining the teacher's years of employment in the new joint unified school district.

M. If a new joint unified school district is authorized, the governing board of a district that will have its boundaries reduced by creation of the new joint unified district may hold an override election for the year beginning July 1 after the election that authorized the formation of the new joint unified district. The governing board of a school district that will have its boundaries reduced by creation of the new joint unified district may hold a bond election for bonds applicable to and paid solely by the school district as it will exist after the formation of the new joint unified school district. Override elections and bond elections under this subsection shall be held on the first Tuesday following the first Monday in November as prescribed by section 16-204. The electors who reside in an area that property will not be subject to taxation for operation or payment of the bonds of the school district calling the override or bond election after creation of the new joint unified school district are not eligible to vote in such an override or bond election.

§ 15-451 Appointment of governing board for joint unified school districts

A. If the election results in the formation of the joint unified school district, the governing board shall contain the same governing board members of the former school district governing boards. The members shall have authority to adopt a budget and perform such other functions necessary for the school district to become operative at the beginning of the next fiscal year and shall serve until January 1 following the next general election. At the general election held next following the formation and thereafter, members shall be elected as prescribed in section 15-448, subsection E, except that all governing board members of a newly formed unified school district shall be elected to four year terms at the first general election.

B. If any members of the governing boards of the original school districts are residents of the new joint unified school district, those members shall continue to serve on the governing boards of the original school districts until the joint unified school district becomes operative and upon the joint unified school district becoming operative shall be replaced by members who are appointed by the appropriate county school superintendent. The appointed members shall serve until January 1 following the next general election. At the general election next following the formation, new members shall be elected as prescribed in section 15-448, subsection E, except that all governing board members of a newly formed unified school district shall be elected to four year terms at the first general election.

§ 15-453 Authority to form joint common school districts; applicability of laws governing other school districts

A. Joint common school districts may be created lying in part in each of two or more counties in the manner set forth in this article. Except as expressly provided in this title, each such district shall have all powers and duties and shall be operated and maintained and shall follow and be subject to such procedures as may be provided by law for the operation of other school districts.

B. Each joint common school district shall be designated as joint common school district No. ________________ (insert the number of the district), of _____________________ counties (insert the name of each county).

C. The provisions of section 15-460, relating to change of district boundaries, are not applicable to the formation of a joint common school district and a joint high school district pursuant to the provisions of this article.

§ 15-454 Authority to form joint unified or joint high school districts; applicability of other laws governing other school districts

Joint unified school districts or joint high school districts may be created lying in part in each of two or more counties in the same manner as joint common school districts may be created under this article, except as expressly provided in sections 15-450 and 15-451. Except as expressly provided in sections 15-429, 15-450, 15-451, 15-453 and 15-455 through 15-457, section 15-491, subsection B, and sections 15-975 and 15-997, each joint high school district or joint unified school district shall have all powers and duties, shall be operated and maintained and shall follow and be subject to procedures as may be provided by law for the operation of other school districts.

§ 15-455 Formation of joint common school district; petition; election; notice; canvass

A. A petition for the creation of a joint common school district shall include the following:

A description of the territory comprising the proposed district.
A request that the question of the creation of the proposed district be submitted to the qualified electors residing within each of the affected districts.
The signatures of not less than ten per cent of the qualified electors residing within the portion of the proposed district within the respective county involved. The county school superintendent of each county whose territory, or a portion thereof, will be included in the proposed district shall receive the petitions containing signatures of residents of his county.

B. Each county school superintendent with whom a petition for the creation of a joint common school district is filed shall, within fifteen days of the date of receipt, examine the petition to determine its sufficiency including the adequacy of the signatures from the portion of the proposed district within his county. If the petition is found sufficient, the county school superintendent shall transmit the petition to the state board of education.

C. If the petitions for the creation of the proposed joint common school district are found sufficient by the county school superintendent of each county whose territory or a portion thereof is to be included in the proposed district, the state board of education shall promptly schedule a review of the issue of the creation of the proposed joint common school district. Such review and the board determination on the issue of the creation of the proposed joint common school district shall be completed within sixty days of the date of receipt of the final petition.

D. The review of the issue of the creation of a proposed joint common school district shall include consideration of the following factors:

Operational costs.
Travel times and distances.
Climatic conditions.
Local terrain.
Number of pupils.
The fairness and appropriateness of any redistribution of taxable wealth from an existing school district to a proposed joint common school district. If the state board after considering all such factors determines that the proposed new district will not cause an undue adverse effect on the operations of any existing school district or jeopardize the operation of the proposed joint common school district or cause a disproportionate amount of taxable wealth to be redistributed, it shall approve the petitions and return them to the respective county school superintendents.

E. Upon receipt of the approved petitions the county school superintendent of each county whose territory, or a portion thereof, will be included in the proposed joint common school district shall submit the question of the formation of the proposed joint common school district at a general election, or at a special election to be held for that purpose. If no general election will be held within sixty days after the date the county school superintendent receives the approved petition from the state board of education, he shall promptly call a special election to be held within forty-five days after receipt of the approved petition. Notice of such election shall be given by the county school superintendent to the boards of supervisors.

F. The county school superintendent shall cause notice of the proposed election to be posted in not less than three public places in the area within each of the affected districts and to be published one time in a newspaper of general circulation in each county, such posting and publication to be made at least ten days before the election. Such notice shall state the following:

The question to be voted on and the boundaries of the proposed joint common school district with sufficient definiteness to make them readily ascertainable.
Voter qualifications.
The voting places within each of the affected districts. There shall be at least one voting place in each county. The election shall be called and held, and voters shall possess qualifications as prescribed for the election of governing boards and shall be residents of the territory within each of the affected districts. Ballots shall be prepared and the officers of election appointed by the county school superintendent.

G. On the fifth day after the election the county school superintendent and the chairman of the board of supervisors of each county shall canvass the vote. If a majority of the votes cast in each county of persons who reside within each of the affected districts is in favor of creation of the proposed joint common school district, the boards of supervisors shall jointly declare the election and the joint common school district is established. For the purpose of this subsection a majority of the votes cast in each county of persons who reside within each of the affected districts means a majority vote of the qualified electors voting in each county in each part of an affected existing school district or affected area to be included in the proposed joint common school district and a majority vote of the qualified electors voting in each county in each part, if any, of an affected school district not to be included in the proposed joint common school district.

§ 15-456 Jurisdiction of county board of supervisors and county school superintendent over joint common school district

A. The county of jurisdiction of the proposed joint common school district is that county in which the greater portion of the qualified electors of the proposed joint common school district resides, unless all of the existing school buildings located on territory which will be within the proposed joint common school district are in one county, in which event that county shall be the county of jurisdiction.

B. The jurisdictional county of the joint common school district shall exercise authority as provided for in this section and sections 15-429, 15-453 through 15-455, 15-457, 15-491, subsection B, 15-975 and 15-997. The county school superintendent of the jurisdictional county shall perform for and in respect to the joint common school district all duties required to be performed by county school superintendents. The board of supervisors of the same county shall have jurisdiction over and perform all duties for and with respect to the joint common school district as required to be performed by boards of supervisors, except that school district taxes to be levied on property in the portion of the joint common school district lying in another county shall be levied by the board of supervisors of such other county.

§ 15-457 Formation of new joint common school district by subdivision of existing school district; effect on bonded indebtedness; transfer of property

A. Any territory incorporated into a joint common school district which is at the time of the creation of such joint common school district part of an existing school district shall thereafter be considered detached from the existing school district.

B. If any such existing school district has outstanding bonded indebtedness, liability for the payment of principal of and interest on such bonded indebtedness shall be prorated between the existing school district and the new joint common school district in the same proportion as the assessed valuation of taxable property in the existing school district bears to the assessed valuation of taxable property in the detached territory, such valuations to be determined according to the assessment rolls of the county in which the existing school district is located, as such rolls exist at the time of the creation of the new joint common school district. Taxes for the payment of such portion of the principal and interest shall be levied on all taxable property in the new joint common school district, but nothing in this subsection shall be construed to relieve from liability to taxation for the payment thereof all taxable property in the theretofore existing school district if necessary to prevent a default in such payment. Voter approval of the creation of the joint common school district shall constitute an approval of such assumption of indebtedness.

C. All school buildings located in the detached territory, as provided in this subsection, together with all equipment and furnishings, shall become the property of the new joint common school district, and the intangible property of the existing school district shall be prorated between the two districts on the same basis used to determine the amount of bonded indebtedness to be assumed.

D. Any assumed indebtedness shall be regarded as an indebtedness of the new joint common school district for the purpose of determining the debt incurring authority of the new joint common school district and the existing school district.

§ 15-458 Formation of new district or districts by subdivision of existing district; division of assets

A. In a school district containing a student count of more than six hundred, a new school district or districts may be formed by a subdivision of the existing school district.

B. On the request of the governing board or on receipt of petitions bearing the signatures of at least ten per cent of the qualified electors in the area proposed to be a new school district or the signatures of at least fifty of the qualified electors in the area proposed to be a new school district, whichever is more, and at least ten per cent of the qualified electors in the area proposed to continue as the existing school district or at least fifty signatures of the qualified electors in the area proposed to continue as the existing school district, whichever is more, the county school superintendent shall within ten days call an election to determine if the existing school district should be divided and a new school district or districts formed, except that if the existing school district is a union high school district, the county school superintendent shall call the election only on the request of the governing boards of the union high school district and each of the common school districts comprising the union high school district or on receipt of petitions bearing the signatures of at least ten per cent of the qualified electors in each of the common school districts or at least fifty signatures of the qualified electors in each of the common school districts, whichever is more. This subsection does not require the submission of the signatures of more than fifty per cent of the qualified electors of the existing school district to the county school superintendent in order to call an election for the purposes of this section. The petition shall state the proposed boundaries of the school district or districts to be formed together with the student count, specific reasons why it is in the best interest of the current district residents to have a new district or districts formed and the amount of real property valuation within the school district or districts to be formed. No new school district may be formed unless the state board of education determines that the real property valuation per student count is sufficient to support the school district in a manner comparable to other school districts of similar size and that a sufficient number of pupils will exist in each of the new districts to ensure that educational programs and services will be of similar or better quality after the subdivision.

C. The election shall be held concurrently and as provided in section 15-459, except that a majority of the votes cast by the qualified electors in each of the areas proposed as a school district must approve the division of the existing school district and the formation of the new school district.

D. The governing board of the existing school district shall prepare a projected list of assets for the existing district prior to the end of the fiscal year in which the election is held. The governing boards of the original and new school district or districts shall prepare a final statement of assets for the formerly existing school district as of the end of the fiscal year in which the election was held and shall have the statement of cash and bonded indebtedness certified by the county treasurer by August 30 of the year in which the new school district or districts become operative. The governing boards of the original school district and the new school district or districts shall set aside sufficient assets or provide other means to satisfy the liabilities of the former existing district except for bonded indebtedness and approve the final division of all assets by September 15 of the year in which the new school district or districts become operative. If one or more of the governing boards fail to provide for satisfying the liabilities and fail to approve the division of assets by September 15, the county attorney shall determine the means to satisfy the liabilities and final division of assets by October 1 of the fiscal year in which the new school district or districts become operative.

E. The division of the bonded indebtedness of the original school district shall be in accordance with the provisions of section 15-457, subsection B.

F. An original or new school district formed by a subdivision of an existing school district or districts after June 30, 1992 is not eligible to determine its budget using the provisions of section 15-949 or the support level weights prescribed in section 15-943, paragraph 1. These districts are also not eligible to participate in a small district service program as prescribed in section 15-365 or to apply to the state board of education for a capital levy adjustment as prescribed in section 15-963.

G. If two or more common school districts are within the boundaries of a union high school district, two or more unified school districts may be formed by a subdivision of the existing union high school district and by unification with the common school districts as provided in this section, subject to the following provisions:

Formation of a unified school district pursuant to this subsection shall be initiated if a majority of the governing board members of each of the districts affected unites in a petition to the county school superintendent for the establishment of a unified school district or if ten per cent of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of the areas proposed to be the new unified school districts unite in a petition to the county school superintendent for the establishment of a unified school district. The petition shall include a statement of the proposed boundaries of the new unified school districts and shall request that the subdivision of the union high school district and formation of the unified districts be submitted to the qualified electors who reside within the proposed districts. The petition shall also include a detailed description of desegregation funding and expenses for the resulting school district as set forth in paragraph 7 of this subsection and may include the new school district name and other information as desirable. On receipt of the petitions, the county school superintendent shall examine the petitions within fifteen days of receipt to determine their sufficiency including the adequacy of the signatures of electors. If the petitions are found sufficient, the county school superintendent shall call an election to be held to determine the question. The county school superintendent shall prepare and the governing board shall distribute a subdivision and unification plan that includes:

(a) The proposed boundary changes.

(b) The impact of the proposed boundary changes, including where pupils will attend school, changes in pupil transportation services, changes in availability of special education services, changes in pupil-teacher ratio and operational costs.

(c) If paragraph 7 of this subsection applies to one or more of the existing school districts, a detailed description of desegregation funding and expenses for the resulting school districts as set forth in paragraph 7 of this subsection.

(d) Any other information the county school superintendent deems appropriate to include.

If the governing boards or the petitioners wish the new districts to receive unification assistance as provided in section 15-912.01, they shall notify the department of education and the joint legislative budget committee by August 1 of the fiscal year before the new districts would begin operation and provide the department and the joint legislative budget committee with information required to project the costs of unification assistance to the new districts for the first year of operation. The department shall include sufficient monies to cover these unification costs in its budget request for state aid for the following fiscal year.
The election shall be held as provided in section 15-459, except that the ballot shall contain the words "subdivision and unification, yes" and "subdivision and unification, no", and there shall be one of the following two ballot questions, whichever is applicable, stated as follows:

(a) Should (insert the name of the district) union high school district be subdivided with boundaries identical to the boundaries of (insert the name of the districts) common school districts and simultaneously creating (insert the number of the districts) unified school districts with the respective common school districts as specified in the subdivision and unification plan?

(b) Should (insert the name of the district) union high school district be subdivided simultaneously with the subdivision of (insert the name of the districts) common school districts and simultaneously creating (insert the number of the districts) unified school districts with the subdivided common school districts as specified in the subdivision and unification plan?

If the formation of the new unified school districts is authorized, the terms of the governing board members of the common and union high school districts do not expire on the effective date of unification but continue until January 1 following the next general election, during which time the members of the governing boards of the previously existing school districts shall serve as the governing board of the new school district in which they reside. At the next general election held after the formation and thereafter, members shall be elected as prescribed in section 15-448, subsection E. The governing boards of the new unified school districts shall prepare policies, curricula and budgets for the new unified school districts. The policies prepared by the governing boards shall include the provisions of section 15-459, subsection M.
If the common school district is not subdivided, the new unified school district that includes the boundaries of the previously existing common school district shall assume the bonded indebtedness of that previously existing common school district. If the common school district is subdivided, the provisions of subsection E of this section shall apply.
If the common school district is not subdivided, existing bond authorization of the common school districts automatically continues for the original purpose authorized. If the common school district is subdivided, the existing bond authorization of the common school district will expire unless it is divided between the new unified school districts as specified in the subdivision and unification plan.
If any of the school districts were authorized to budget for expenses of complying with or continuing to implement activities that were required or permitted by court order of desegregation or administrative agreement with the United States department of education office for civil rights directed towards remediating alleged or proven racial discrimination pursuant to section 15-910, this authorization does not expire on the effective date of the subdivision and unification but only applies to schools included in the court order or administrative agreement.
If the union high school district and the common school district or districts with which it is unified all have authorization for an override as provided in section 15-481 that would have continued after the subdivision and unification, the override authorization continues for the new district and expires at the time that the earliest override would have expired.
If one or more of the previously existing school districts were participating in a career ladder program pursuant to chapter 9, article 1.1 of this title before subdivision and unification, notwithstanding any other law the state board shall expedite the processing of and may approve an updated application for program reapproval for the new school district that includes the existing school district that was participating in the program.
The employee's years of employment in the previously existing school district shall be included in determining the employee's years of employment in the new school district after a subdivision and unification. An employee who was entitled to continuing contract status in the previously existing school district is entitled to continuing employment contract status in the new school district.
The base salary and benefits of each employee for the first year of operation of the new school district after a subdivision and unification shall not be lower than the employee's base salary and benefits for the prior year in the previously existing school district.
Notwithstanding paragraphs 10 and 11 of this subsection and pursuant to section 15-544, nothing in this section shall be construed to restrict the ability of the governing board to implement a reduction in force or to scale back salaries of certified teachers, administrators or noncertificated employees for reasons of economy or to improve the efficient conduct of schools within the district following a subdivision and unification.

§ 15-459 Consolidation of districts; petition; election; notice; report; ballots; canvass of votes; governing board

A. On the request of the governing boards of two or more school districts in the same county or in adjacent counties or on receipt of petitions bearing the signatures of ten percent or more of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of two or more school districts in the same county or in adjacent counties to consolidate the school districts or parts of the districts, the county school superintendent of each of the counties affected, within ten days, shall call an election to determine the question on consolidation.

B. Consolidations allowed pursuant to subsection A of this section include:

To change the boundaries of a school district to include any part of an adjacent school district.
If all the common school districts within the boundaries of an existing union high school district desire to consolidate into one common school district.
If two or more adjacent school districts of the same type, both or all being common, union high or unified school districts, desire to consolidate into one common, union high or unified school district.
If a common school district that is not a part of a union high school district desires to consolidate with an adjacent unified school district.
If two or more common school districts desire to consolidate into one school district and unify the consolidated district with a union high school district to form one unified school district.
To change the boundaries of a school district that has received a letter grade of A or B pursuant to section 15-241 to include another school district within twenty miles.

C. If a school district provides only financing for pupils who are instructed by another school district in the same county or in an adjacent county, the school district or any part of the school district may be consolidated with the school district providing the instructional program as follows:

The governing board of the financing school district approves the consolidation or ten percent of the qualified electors residing in the school district, or that part of the school district proposed for consolidation, petitions the county school superintendent to call an election to approve the proposed consolidation.
At an election called by the county school superintendent of each of the counties affected, a majority of the persons voting in the school district, or that part of the school district providing financing, approve the proposed consolidation and a majority of the persons voting in the district providing instruction approve the proposed consolidation.

D. Elections held as provided in subsection C of this section shall be conducted in the same manner as elections prescribed in subsections F through J of this section and shall be held concurrently as prescribed in section 15-458.

E. Sections 15-457, 15-975 and 15-997 apply to school districts that are consolidated as provided in subsection C of this section.

F. Notice of the election to determine consolidation of school districts shall be posted in at least three public places in each of the school districts proposed to be consolidated at least ninety days before the election.

G. The county school superintendent shall prepare and the governing board shall distribute a report on the proposed boundary changes in a manner similar to that prescribed in section 15-481, subsection B. The report shall contain the following information:

The date of the election.
The polling places and times they are open.
The full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed boundary changes 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.

A consolidation plan to include:

(a) The proposed boundary changes.

(c) If subsection P of this section applies to one or more of the existing school districts, a detailed description of desegregation funding and expenses for the resulting school district as set forth in subsection P of this section.

(d) Any other information the county school superintendent deems appropriate to include.

H. Ballots shall be prepared by the county school superintendent, shall be delivered to the inspector at least forty-eight hours before the opening of the polls as prescribed in section 16-509 and shall contain the information prescribed in subsection G, paragraph 3 of this section and the following statement: "Do you support consolidation under the specified provisions of the consolidation plan? Yes ( ) No ( )." If the election is to simultaneously consolidate and unify two or more common school districts, the ballot shall contain: "Do you support the consolidation of the (insert names of common school districts) and the subsequent unification of the consolidated districts with the (insert name of union high school district) to form one unified school district under the consolidation and unification plan? Yes ( ) No ( )."

I. The county school superintendent shall hold the election during the fiscal year preceding the fiscal year consolidation is proposed to be effective on a date prescribed by section 16-204. The election shall be held in the manner and electors shall possess qualifications as prescribed for the election of governing board members. The results of the election shall be reported to the county school superintendent.

J. The county school superintendent and the chairman of the board of supervisors, on the seventh day after the election, shall canvass the vote. If a majority of the votes cast in each district approved the consolidation, the districts are consolidated and become one district from and after June 30 next following the election. If parts of two or more school districts are proposed to be consolidated, a majority of the voters in the part of a school district or districts not included in the proposed consolidation and a majority of the voters in the part of the school district or districts proposed for consolidation must approve the consolidation.

K. If the consolidated district includes territory located in two or more counties, the county of jurisdiction is the county in which the largest number of qualified electors of the consolidated school district resides, except that if all of the existing school buildings are in one county, that county is the county of jurisdiction. The county school superintendent of the jurisdictional county shall perform all duties for and with respect to the consolidated school district as required to be performed by county school superintendents. The board of supervisors of the jurisdictional county shall perform all duties for and with respect to the consolidated school district as required to be performed by boards of supervisors, except that school district taxes to be levied on property in the portion of the consolidated school district lying in another county shall be levied by the board of supervisors of the other county or counties and on receipt shall be transferred to the county of jurisdiction. All school buildings located within the consolidated school district, together with all equipment and furnishings, become the property of the consolidated school district. Any assumed indebtedness is an indebtedness of the consolidated school district for the purpose of determining the debt incurring authority of the consolidated school district.

L. Consolidation pursuant to this section is not allowed if the resulting school district would have a student count for the current year of more than ten percent of the total student count of all school districts in this state.

M. The governing board is constituted, may conduct meetings and shall prepare policies, curricula and budgets for the new school district after the canvass pursuant to subsection J of this section demonstrates that a majority of the votes cast in each school district approved the consolidation. These policies shall require that:

The base salary and benefits of each employee for the first year of operation of the new school district shall not be lower than the employee's base salary and benefits for the prior year in the previously existing school district.
The employee's years of employment in the previously existing school district shall be included in determining the employee's years of employment in the new school district. An employee who was entitled to continuing employment contract status in the previously existing school district is entitled to continuing employment contract status in the new school district.
Notwithstanding paragraphs 1 and 2 of this subsection and pursuant to section 15-544, this section does not restrict the ability of the governing board to implement a reduction in force or to scale back salaries of certified teachers, administrators or noncertificated employees for reasons of economy or to improve the efficient conduct of schools within the district following a school district consolidation.

N. If all of the districts to be consolidated have authorization for an override as provided in section 15-481 that would have continued after the consolidation, the override authorization continues for the new district and expires at the time that the earliest override would have expired.

O. If one or more, but not all, of the districts to be consolidated have authorization for an override as provided in section 15-481 that would have continued after the consolidation, the override authorization shall only apply to the schools included under the terms of the prior override authorization. Consolidation of school districts does not consolidate or pool the liability to be taxed for the override, and only property that was located within the boundaries of the district that approved the override before consolidation is to pay taxes to support the override. This subsection also applies if all of the districts to be consolidated have authorization for overrides, but the authorizations are pursuant to different subsections of section 15-481 or the override amounts are not the same percentage of the revenue control limit.

P. Notwithstanding section 15-457, consolidation of school districts does not consolidate or pool the liability of the former school districts into the resulting school district. Outstanding indebtedness incurred by a school district before consolidation shall be repaid without interruption according to existing debt schedules as determined by the county board of supervisors. If a school district consolidates after July 1, 2004, the new school district may pay tuition to the district of attendance when a pupil is precluded by distance or lack of transportation from attending school in the district of a pupil's residence.

Q. If one or more of the previously existing school districts were authorized to budget for expenses of complying with or continuing to implement activities that were required or permitted by court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination pursuant to section 15-910, this authorization does not expire on the effective date of consolidation but only applies to schools included in the court order or administrative agreement.

R. If the formation of a new consolidated and unified school district is authorized, the terms of the governing board members of the common and union high school districts do not expire on the effective date of the unification. The governing board members of the previously existing school districts shall serve as provided in section 15-430, except that the power of the governing board members of the previously existing school districts acting as the governing board of the unified school district is limited to the maintenance and operation of the previously existing school districts and compliance with the consolidation and unification plan.

§ 15-460 Change of school district boundaries

A. On request of the governing board of a school district or on receipt of a petition bearing the signatures of ten per cent or more of the qualified electors residing in the school district to change the boundaries of the school district in such a manner as to include adjacent unorganized territory, setting forth the boundaries desired and the reasons for such change, the county school superintendent shall submit the question of including the unorganized territory within the existing school district to the qualified electors of the new proposed school district. The election shall be held as provided in section 15-459, except that a majority of the qualified electors voting on the question in the unorganized territory and a majority of the qualified electors voting on the question in the existing school district must approve the change. If approved, the change is effective from and after June 30 next following the election.

B. When ten per cent or more of the qualified electors residing in a school district desire that the boundaries of the school district be diminished, they may present a petition to the county school superintendent setting forth the change of boundaries desired and the reasons for such change. The county school superintendent shall prepare and transmit to the governing board of the school district proposed to be diminished a report providing specific information regarding the future availability of educational programs in the area of the district to be detached and in the area which will constitute the remaining district, availability of pupil transportation services and the financial impact on taxpayers. The governing board shall mail or distribute the report to all households located in the school district. The county school superintendent shall submit the question of diminishing the school district boundaries to the qualified electors of the school district. The election shall be held as provided in section 15-459. A majority of the qualified electors voting on the question in the territory to remain in the existing school district and a majority of the qualified electors voting on the question in the territory to be excluded must approve the change. If approved, the change is effective from and after June 30 next following the election.

C. Notwithstanding subsections A and B of this section and this chapter, the governing boards of two adjacent common, union or unified school districts may authorize minor boundary adjustments to both school districts and the governing boards of a unified school district and adjacent common and union high school districts may authorize minor boundary adjustments to the three school districts if all of the following are true:

The school districts authorizing the boundary adjustment have not previously made more than one minor boundary adjustment pursuant to this subsection.
A majority of the electors within the geographic boundaries of a portion of a school district, as specified in the petition, present a petition to the governing boards of the district or districts in which the petitioners currently reside and the district to which the petitioners desire to be annexed. If there are no electors within the geographic boundaries of the territory to be annexed, a majority of the property owners in the territory may submit the petition. The petition shall set forth the boundaries of the portion of the district to be annexed.
A majority of the members of the governing boards of each district approve the minor boundary adjustment.
The boundary adjustment would result in the transfer of no more than one and one-half per cent of the student count of the district from which the pupils will transfer.
The boundary adjustment would not result in the transfer of any school buildings, equipment or furnishings from one school district to another school district.
No member of the governing board of the school district to be diminished is a resident of the territory that is being transferred to the adjacent school district.
The governing boards of the school districts have agreed on a means to satisfy any liabilities.

D. If a majority of the members of the governing boards of school districts to which petitions were presented pursuant to subsection C of this section approve the petitions, the petitions shall be transmitted with the endorsements of the governing boards to the county school superintendent. The county school superintendent, if no petition opposing annexation signed by a majority of the school electors representing either the resident district or the district to which annexation is proposed is received within fifteen days after the transmittal of the petition requesting annexation, shall make the records of boundaries conform to the petition for annexation and notify the boards of supervisors and the county assessor of the boundary change. The change is effective from and after June 30 next following the notification of the boards of supervisors.

E. Notwithstanding subsection A of this section, if the qualified electors residing in a school district have previously voted to accept unorganized territory into the district's boundaries in two consecutive elections called for this purpose, the school district governing board may annex any election precinct within the unorganized territory that is contiguous to the school district if both of the following conditions exist:

At least one hundred fifty pupils who reside in the election precinct are enrolled in one or more school districts in the county.
The qualified electors of the precinct have previously voted in favor of the annexation.

F. Notwithstanding subsection A of this section, the governing board of a unified school district may authorize a change to the geographic boundaries of the school district to include a noncontiguous unorganized territory if all of the following criteria are met:

A majority of the qualified electors within the geographical boundaries of an unorganized territory that is proposed to be included in the unified school district present a petition to the school district governing board. If there are no qualified electors within the geographic boundaries of the unorganized territory to be annexed, a majority of the property owners in the unorganized territory may submit a petition.
The unorganized territory to be included in the unified school district contains less than one hundred fifty pupils at the time of annexation.
The unorganized territory that is proposed to be included in the unified school district is adjacent to an unorganized territory that is part of an Indian reservation with a population of less than two thousand persons but is not adjacent to the unified school district.

G. If the governing board of the unified school district approves the petition pursuant to subsection F of this section, the petition shall be transmitted with the endorsement of the governing board to the county school superintendent. The county school superintendent, if no petition opposing annexation signed by a majority of the qualified electors within the school district is received within fifteen days after the transmittal of the petition requesting annexation, shall make the boundaries conform to the petition for annexation and notify the board of supervisors and the county assessor of the boundary change. The change is effective from and after June 30 next following the notification of the board of supervisors.

H. Notwithstanding subsections A and B of this section, if a majority of the qualified electors or property owners who reside in a residential subdivision, a recognized community or another type of geographic location within a school district present a petition to the governing board of an adjacent school district to modify the adjacent school district's boundaries to include the property designated in the petition, the boundaries of the original school district of residence shall be changed to exclude the designated property and the boundaries of the adjacent school district shall be changed to include the designated property if all of the following conditions exist:

Both school districts are located in a county with a population of more than one hundred fifteen thousand persons but less than one hundred twenty thousand persons.
At least ninety per cent of the pupils who reside on the property designated in the petition either currently are transported at least fifty miles each way to attend school or currently attend school in the adjacent school district.
The boundaries of either school district have not been previously changed to exclude or include the property designated in the petition.
The proposed boundary change does not result in the transfer of more than one hundred pupils from the original school district of residence to the adjacent school district.
The boundary change does not result in the transfer of any school facilities or school equipment between the affected school districts.

§ 15-461 Transporting school districts; joining existing school districts; dissolution

A. If a school district does not offer a full-time instructional program in any grade level to the pupils who reside in that school district, transports all of the pupils who reside in that school district to an adjacent school district or school districts for instruction and transports more than three hundred fifty pupils annually to an adjacent school district or school districts, the county school superintendent shall dissolve the transporting school district and annex the geographic boundaries of the transporting school district to the adjacent school district that provides instruction to the majority of the pupils who reside in the transporting school district.

B. The county school superintendent shall make the record of boundaries conform to the annexation and shall notify the board of supervisors and the county assessor of the boundary change. The change is effective immediately on notification from the county school superintendent.

C. The terms of the governing board members of the previously existing transporting school district do not expire on the effective date of the dissolution of the school district and continue until January 1 following the next general election, during which time the members of the governing board of the previously existing transporting school district shall serve as additional members of the governing board of the adjacent school district.

D. The adjacent school district shall revise its annual budget to reflect the annexation of the transporting school district.

E. The adjacent school district is liable for all indebtedness and liabilities, bonded or otherwise, outstanding against the dissolved transporting school district, and all property, balances and deficits of the dissolved transporting school district become the property, balances and deficits of the adjacent school district.

F. On approval of a majority of the full membership of the governing board of a school district that does not offer a full-time instructional program in any grade level to the pupils who reside in that school district, transports all of the pupils who reside in that school district to another school district or school districts for instruction and transports fewer than ten pupils annually to another school district or school districts, the county school superintendent shall call an election to submit the question of the dissolution of the transporting school district to the qualified electors of the transporting school district. The resolution adopted by the governing board shall state the reasons for the proposed dissolution, set forth a plan for equitable adjustment, division and disposition of the assets and liabilities of the school district and provide a plan for the assumption of the outstanding indebtedness of the school district. Except as otherwise provided in this subsection, the election shall be conducted as nearly as practicable in the manner prescribed in this article. The ballots shall contain the words "dissolution of transporting school district, yes" and "dissolution of transporting school district, no", and the voter shall signify the voter's desired choice. If a majority of the qualified electors voting on the question in the transporting school district approve the dissolution of the school district, the school district is dissolved and the area within the boundaries of the former transporting school district shall revert to unorganized territory.

§ 15-463 Annexation of military reservation to high school district or union high school district; procedure; notice; hearing

A. A high school district, or union high school district, any portion of which is contiguous to a military reservation, may at any time, and as provided in subsection B, annex all or any contiguous part of said military reservation for high school purposes only.

B. When a majority of the governing board of a high school district or a union high school district petitions the board of supervisors of the county in which the school district is located, requesting the annexation of all or a contiguous part of a military reservation, and such petition is accompanied by a petition containing the same request signed by ten or more qualified school electors residing in the school district, the board of supervisors shall within fifteen days give written notice of the proposed annexation to the commanding officer of the military reservation and to the governing board of any other high school districts or union high school districts contiguous to the military reservation, which notice shall fix a time and place not more than fifteen days after the serving of said notice for a hearing on the petitions. If, at the hearing, the commanding officer of the military reservation or other higher military authority, or the authorized agent of either, objects to the annexation, no further action shall be taken. If, however, no such objection is made at the hearing, the board of supervisors, within ten days after the hearing, shall either allow or deny the petitions. If the petitions are allowed, the board of supervisors shall forthwith notify the commanding officer of the military reservation and the county school superintendent and the annexation shall take effect immediately.

C. A high school district which annexes any or all of a contiguous part of a military reservation as provided in this section and a common school district which is coterminous with the portion of the high school district which is not part of the military reservation may operate as a unified school district under a single governing board.

§ 15-464 Withdrawal of military reservation from school district; petition; hearing

When a common school district or a high school district adjacent to or embracing all or a portion of a military reservation has a larger school population than it had the previous year, as shown by a census enumeration certified by the county school superintendent, and it is not feasible educationally and economically for the school district to provide adequate school facilities for the military reservation, the school district governing board or the authorities of the military reservation may petition the state board of education to withdraw the military reservation from the school district. Within thirty days after receipt of the petition the state board of education shall hold a hearing thereon and within ten days after the hearing shall allow or deny the petition. If allowed, the state board shall direct the county school superintendent to withdraw the military reservation from the school district in which it is in whole or in part included and to report the change of school district boundaries to the board of supervisors.

§ 15-465 Accommodation school; establishment on military reservation; expenses; abandonment

A. Upon the withdrawal of a military reservation from any common school district or high school district, as provided in section 15-464, and upon a showing by the military authorities that necessary buildings and facilities for the operation of a school are available, the county school superintendent shall establish an accommodation school on the military reservation.

B. Expenses of conducting the school shall be paid out of the county school reserve fund by the county school superintendent, as the expenses of other accommodation schools are paid.

C. If a military reservation is abandoned in which an accommodation school has been conducted in accordance with the provisions of this section and sections 15-464 and 15-466, the boundaries of the common school district or the high school district, as they existed prior to withdrawal of the reservation from the school district, shall be deemed automatically reinstated.

§ 15-465.01 Accommodation school; military reservation; governing board

A. Notwithstanding any other law, the governing board of an accommodation school located on a military reservation shall be composed of:

Two members who are appointed by the county school superintendent.
Two members who are appointed by the commanding officer of the military reservation on which the school or schools are located.
One member who is selected by a vote of the members of the governing board who are appointed pursuant to paragraphs 1 and 2. The member appointed pursuant to this paragraph shall be selected within thirty days after the appointment of the fourth member appointed pursuant to paragraphs 1 and 2.

B. The term of each member shall be four years, to begin and end on January 1, except that the first person appointed by the county school superintendent and the first person appointed by the commanding officer pursuant to subsection A, paragraphs 1 and 2 shall serve two year terms, to begin and end on January 1.

C. A person who is registered to vote in the county in which the accommodation school is located and who either is employed on the military reservation or resides on that military reservation is eligible for appointment to the governing board, except that no employee of the accommodation school or the spouse of an employee of an accommodation school may be a member of the governing board of that accommodation school.

D. The appointment to fill a vacancy caused by other than expiration of a term shall be made by the entity that made the original appointment and for the unexpired portion of the term.

E. An accommodation school governing board established pursuant to this section shall have all of the powers and duties of a school district governing board, except that an accommodation school governing board shall not issue debt or levy taxes.

§ 15-466 Transfer of accommodation schools

A. Facilities, if possible, and pupils of an existing accommodation school operated pursuant to this section and sections 15-464 and 15-465 may be included in the most accessible adjacent school district as directed by majority vote of the board of supervisors of the county in which such school is located, subject to approval by a majority of members of the governing board of the school district designated to receive such pupils and facilities and a vote of approval at an election called by the county school superintendent of the qualified electors in the area served by the accommodation school.

B. Facilities owned by a governmental entity other than the school district and operated as an accommodation school may be accepted by the school district or operated by the school district pursuant to an agreement with or permit from such other governmental entity.

§ 15-467 Change of union high school district to high school district

A. When all the common school districts comprising a union high school district unite, either by annexation or by consolidation, into one common school district, the union high school district shall, as of the first day of the next fiscal year, be deemed to be dissolved, and the terms of office of all governing board members elected to the union high school district shall expire and the union high school district shall thereupon become ipso facto a high school district and be administered as other high school districts are administered.

B. A high school district created as provided by subsection A is liable for all indebtedness, bonded or otherwise, outstanding against the dissolved union high school district, and all property, balances and deficits of the dissolved district become the property, balances and deficits of the high school district.

§ 15-469 Lapsing of common school district; conditions; procedure; disposition of property and monies

A. If in a common school district there has been a student count of less than eight pupils between the ages of six and twenty-one years for one school year the county school superintendent may suspend the common school district and report the suspension and reasons to the common school district and the board of supervisors at its next meeting.

B. The county school superintendent may provide the common school district additional time to recruit more pupils. If the common school district has a student count of less than eight pupils at the end of the additional time, the board of supervisors may declare the common school district lapsed and attach the territory to one or more of the adjoining school districts, dispose of the property of the lapsed common school district and apply the proceeds to the credit of the lapsed common school district. The county school superintendent shall determine all unbonded indebtedness of the lapsed common school district and draw his warrant, on proper vouchers, on the county treasurer in payment of the unbonded indebtedness. Any balance remaining after such a payment shall be transferred to the county school fund.

Article 4 School District Budget Override Elections

§ 15-481 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 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 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 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:

The date of the election.
The voter's polling place and the times it is open.
The proposed total increase in the budget that exceeds the amount allowed pursuant to section 15-905.
The total amount of the current year's budget, the total amount of the proposed budget and the total amount of the alternate budget.
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.
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.
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.
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.
At least two arguments, if submitted, but not more than ten arguments for and two arguments, if submitted, but 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 with a signed, sworn statement by those in favor. Arguments against the proposed increase in the budget shall be provided in writing with a signed, sworn statement by those in opposition. If the argument is submitted by an organization, it shall contain the sworn statement of two executive officers of the organization. If the argument is submitted by a political committee, it shall contain the sworn statement of the committee's chairperson or treasurer. If the argument is submitted by an individual and not on behalf of an organization, a political committee or any other group, the person shall submit the argument with a sworn, notarized statement. The names of persons and entities submitting written arguments shall be included in the informational pamphlet. Persons signing the argument shall identify themselves by giving their residence address and telephone number, which may not appear in the informational pamphlet, except that the person's city or town and state of residence shall appear in the pamphlet. Any argument that is submitted and that does not comply with this paragraph may not be included in the 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.
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.
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:

(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.

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 $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. This subsection 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:

The notices required pursuant to section 15-403 shall be posted not less than twenty-five days before the election.
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 $_____________ per $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:

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.
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:

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).

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.
Notwithstanding subsection P of this section, the maximum period of an override authorized pursuant to this subsection is five years.
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 $__________ per $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 $____________ per $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 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 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:

Is for two years, the proposed increase in the second year is equal to the initial proposed percentage increase.
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:

Is for two years, the proposed increase in the second year is equal to the initial proposed percentage increase.
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 before the date of the scheduled override election.

W. For any election conducted pursuant to subsection L or M of this section:

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.

The ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.
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 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 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 allowed an opportunity to comment and:

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.
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 $______________ per $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 $______________ per $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.

§ 15-482 Special five per cent override for programs of pupils in kindergarten programs and grades one through twelve

A. An additional budget increase may be requested and authorized as provided in section 15-481, subsections I and J of up to five per cent of the revenue control limit as provided in subsection B of this section.

B. The maximum amount of the budget increase requested and authorized shall not exceed the budgeted expenditures of the proposed special program for each fiscal year, not to exceed a total of five per cent of the revenue control limit for each fiscal year.

C. The special program may be designed for children with disabilities in preschool programs and any or all of the pupils enrolled in kindergarten programs and grades one through twelve and may involve efforts to remove barriers to academic achievement as well as efforts to improve instruction or increase the amount of instruction.

D. During any fiscal year in which proceeds from the sale or lease of school property are used for the maintenance and operation section of the budget as provided in section 15-1102, a budget increase is in effect as provided in section 15-481, subsection E or F, or a budget increase is in effect as provided in this section, or any combination of these conditions occurs, the total amount of the proceeds and increases which may be expended is equal to fifteen per cent of the revenue control limit for that year as provided in section 15-947, subsection A, provided that the following maximum amount is attributable to any one of the conditions:

Fifteen per cent of the revenue control limit if using the proceeds from the sale or lease of school property for the maintenance and operation section of the budget as provided in section 15-1102.
Fifteen per cent of the revenue control limit if using a budget increase as provided in section 15-481, subsection E or F, or both.
Five per cent of the revenue control limit if using a budget increase as provided in this section.

Article 5 Bond Elections

§ 15-491 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:

To locate or change the location of school buildings.
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.
To decide whether the bonds of the school district shall be issued and sold for the purpose of raising 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 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.
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 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 twenty or more years.
To change the list of capital projects or the purposes authorized by prior voter approval to issue bonds.
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. A petition is not required for holding 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 $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:

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.

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.

The ballot shall conform to the requirements of title 35, chapter 3, article 3.
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 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.
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 $100,000.

I. For any election conducted to decide whether impact aid revenue bonds shall be issued pursuant to this section:

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.

The ballot shall contain the words "bond approval, yes" and "bond approval, no", and the voter shall signify the voter's desired choice.
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 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.
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 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 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:

The election may be held only on the first Tuesday after the first Monday in November.
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.

(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.

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.
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:

The election may be held only on the first Tuesday after the first Monday in November.
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.

(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.

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.

§ 15-493 Canvass of votes; certification of result

The official returns shall be delivered to the county board of supervisors or the appropriate county elections officer. Within thirty days after the election, the county board of supervisors or the county elections officer shall canvass the results of the election and shall file duplicate copies of the certificate of the result of the election with the clerk of the board of supervisors and with the governing board of the school district.

Chapter 5 School Employees

Article 1 General Provisions

§ 15-501 Definitions

In this chapter, unless the context otherwise requires:

"Administrator" means any school district administrator except a school principal who devotes at least fifty percent of the principal's time to classroom teaching.
"Certificated teacher" means a person who holds a certificate from the state board of education to work in the schools of this state and who is employed under contract in a school district in a position that requires certification except a psychologist or an administrator who devotes at least fifty percent of the person's time to classroom teaching.
"Full-time" means to be employed for a full school day, or its equivalent, or for a full class load, or its equivalent, as determined by the governing board.
"Governing board" means the governing board of a school district or a county school superintendent in the case of accommodation schools located in such a county.
"Inadequacy of classroom performance" means the definition of inadequacy classroom performance adopted by the governing board pursuant to section 15-538.
"Major portion of a school year" means full-time employment for fifty-one percent of the school days during which school is in session, except that a certificated teacher is not deemed to have completed the major portion of the third school year of three consecutive years of employment until the end of the third school year.
"Performance classifications" means the performance classifications adopted by the governing board.
"Qualified evaluator" means a school principal or other person who is trained to evaluate teachers and who is designated by the governing board to evaluate the school district's certificated teachers.
"Superintendent" means the superintendent of schools of a school district.
"Suspension without pay" means suspension without pay for a period of time not to exceed ten school days.

§ 15-501.01 Requirements for teachers; teaching certificates; rules; reciprocity; placement; posting

A. Notwithstanding any other law, all teachers who are certificated pursuant to this section must have a baccalaureate degree and a valid fingerprint clearance card.

B. The state board of education shall adopt rules for the issuance of the following types of certificates for teachers:

Standard teaching certificate.
Alternative teaching certificate for persons who obtain training pursuant to subsection C, paragraph 1 of this section.
Subject-matter expert standard teaching certificate for persons who obtain training pursuant to subsection C, paragraph 8 of this section.
Classroom-based standard teaching certificate for individuals who obtain training from a school district or charter school.
Career and technical education teaching certificate.

C. The state board of education shall adopt rules to carry out the purposes of this section. The rules:

Shall provide for a variety of alternative teacher and administrator preparation programs that allow for variations in program sequence and design to apply for program approval. The state board shall adopt rules pursuant to this paragraph designed to allow for a variety of formats and shall not require a prescribed answer or design from the program provider in order to obtain approval from the state board. Any rules adopted by the state board pursuant to this paragraph shall be substantially different from the rules adopted for the approval of traditional preparation programs and may not unnecessarily restrict a variety of alternative preparation programs from operating and providing instruction in this state. The state board shall evaluate each program provider based on the program's ability to prepare teachers and administrators and to recruit teachers and administrators with a variety of experiences and talents. The state board shall allow universities under the jurisdiction of the Arizona board of regents, community colleges in this state, private postsecondary institutions licensed by this state, school districts, charter schools, professional organizations, nonprofit organizations and private entities to apply for program approval and shall create application procedures and certification criteria that are substantially less restrictive than those for traditional preparation programs. At the completion of an alternative preparation program, graduates shall:

(a) Hold a bachelor's degree from an accredited postsecondary education institution.

(b) If applicable, demonstrate professional knowledge and subject knowledge proficiency pursuant to section 15-533.

(d) If applicable, complete training in structured English immersion as prescribed by the state board pursuant to section 15-756.09.

(e) If applicable, complete training in research-based systematic phonics instruction as prescribed in paragraph 2 of this subsection.

(f) Demonstrate the required proficiency in the Constitutions of the United States and Arizona as prescribed in section 15-532.

Shall require that, within three years after a certificate for elementary education or early childhood education is issued, the certificate holder complete, from a public or private provider, at least forty-five classroom hours or three college-level credit hours, or the equivalent, in both research-based:

(a) Science of reading instruction, including systematic phonics instruction.

(b) Reading instruction, including training on assessments, instructional practices and interventions to improve student reading proficiency. Instruction provided pursuant to this subdivision must meet the requirements for dyslexia training prescribed in section 15-219.

Beginning August 1, 2025, shall establish a literacy endorsement as a requirement for all certificated teachers who provide literacy instruction in kindergarten programs or in any of grades one through five as determined by the board. The rules shall require that a certificated teacher who receives a certificate after August 1, 2025 and who provides literacy instruction in kindergarten programs or in any of grades one through five must obtain a literacy endorsement within three years after the teacher's certificate is issued. The rules shall require that a certificated teacher who received a certificate before August 1, 2025 and who provides literacy instruction in kindergarten programs or in any of grades one through five must obtain a literacy endorsement on or before August 1, 2028. The literacy endorsement shall require the teacher to complete evidence-based science of reading training or coursework as determined by the board and to pass a literacy instruction assessment to show that the teacher is capable of doing all of the following:

(a) Effectively teaching foundational reading skills, phonological awareness, phonics, fluency, vocabulary and comprehension.

(b) Implementing reading instruction using high-quality instructional materials.

(c) Providing effective instruction and interventions for students with reading deficiencies, including students with characteristics of dyslexia.

Shall require all approved educator preparation programs in elementary education, early childhood education and mild-moderate special education, as defined by the state board of education, to require the courses that are necessary to obtain a literacy endorsement pursuant to paragraph 3 of this subsection.
Shall establish a process to allow a local education agency, at the request of a teacher, to verify to the department of education that the teacher possesses the instructional knowledge and skills prescribed in paragraph 3 of this subsection, demonstrated through classroom observations and student achievement data across subgroups using evidence-based measures. A certificated teacher who has had a local education agency verify the teacher's knowledge and skills in the science of reading pursuant to this paragraph is not required to complete the coursework, training or assessment requirements prescribed in paragraph 3 of this subsection to obtain the literacy endorsement.
Shall not require a teacher to obtain a master's degree or to take any additional graduate courses as a condition of certification or recertification.
Shall allow but shall not require the superintendent of a school district to obtain certification from the state board of education.
Shall provide for the issuance of a subject-matter expert standard teaching certificate to persons who have expertise in a content area or a subject matter. Persons who are certified pursuant to this paragraph shall complete training, if applicable, in structured English immersion as prescribed by the state board pursuant to section 15-756.09. Persons who are certified pursuant to this paragraph are exempt from the subject knowledge proficiency requirements prescribed in section 15-533 and from the proficiency requirements prescribed in section 15-532 on the Constitutions of the United States and Arizona. Persons who are subject to subdivision (a) of this paragraph are also exempt from the professional knowledge proficiency requirements pursuant to section 15-533. A person who obtains a subject-matter expert standard teaching certificate pursuant to this paragraph may provide instruction in the person's field of expertise in grades six through twelve at any public school in this state. Issuance of the subject-matter expert standard teaching certificate may not be conditioned on the person's employment with a local education agency. A person who meets the requirements of this paragraph shall be issued a subject-matter expert standard teaching certificate without having to demonstrate professional knowledge proficiency pursuant to section 15-533, except that the person shall have at least two years to demonstrate professional knowledge proficiency pursuant to section 15-533. School districts shall evaluate and provide support pursuant to section 15-537 to teachers who are certified pursuant to this paragraph. If a person fails to meet the professional knowledge requirements of this section within two years, the department of education or state board of education may temporarily suspend the subject-matter expert standard teaching certificate. A certificate that is temporarily suspended pursuant to this paragraph is not considered a disciplinary action, and a person shall be allowed to correct the deficiency within the remaining time of the subject-matter expert standard teaching certification. This paragraph does not require a person who has obtained another type of teaching certificate from the state board to obtain a subject-matter expert standard teaching certificate pursuant to this paragraph in order to provide instruction in grades six through twelve. Persons who are certificated pursuant to this paragraph shall review and attest to reviewing the best practices for social media and cellular telephone use between students and school personnel adopted by the state board of education pursuant to section 15-203, subsection A, paragraph 44 before receiving a certificate and, within two years after receiving a certificate, complete training in professionalism and ethics from a public or private provider approved by the state board of education, which may include a no-cost option to the person provided by the state board. A person is eligible for a subject-matter expert standard teaching certificate pursuant to this paragraph if the person has a baccalaureate degree and meets any of the following requirements:

(a) Has taught courses relevant to a content area or subject matter for the last two consecutive years and for a total of at least three years at one or more regionally or nationally accredited public or private postsecondary institutions. A person demonstrates compliance with this requirement by providing the state board with written proof of employment for specific durations from one or more qualifying postsecondary institutions.

(b) Has either a baccalaureate degree, a master's degree or a doctoral degree in a specific subject area that is relevant to a content area or subject matter taught in public schools.

(c) Demonstrates expertise through relevant work experience of at least five years in a field that is relevant to a content area or subject matter taught in public schools. A person demonstrates compliance with this requirement by providing the state board with written proof of employment.

Notwithstanding section 15-533, shall exempt persons applying for a secondary education certificate from the subject knowledge portion of the proficiency examination if the state board determines that the person has work experience in science, technology, engineering or mathematics and can demonstrate adequate knowledge of a particular subject through a postsecondary education degree or twenty-four credit hours of relevant coursework.
Shall allow for a certificate issued to a person pursuant to subsection B, paragraph 1, 3, 4 or 5 of this section or section 15-203 or 15-782.01, as applicable, to be both issued and renewed for at least twelve years and may not require more than fifteen hours of continuing education credits each year in order to renew that certificate pursuant to this paragraph.
Shall allow for a certificate issued to a person pursuant to subsection B of this section or section 15-132, 15-203 or 15-782.01, as applicable, and any endorsement or approved area related to that certificate, to be renewed at least two years but not more than ten years after that certificate expires without any other requirements adopted by the state board of education or the department of education if the person is in good standing and possesses a valid fingerprint clearance card issued pursuant to section 15-534. A certificate renewed pursuant to this paragraph shall be identical to the expired certificate.

D. The rules for certification reciprocity shall include a requirement that the applicant possess a comparable valid certification from another state and be in good standing with that other state. An applicant who possesses a valid certification from another state and a fingerprint clearance card pursuant to section 15-534 and who is in good standing with that other state shall be issued a comparable standard certificate or a comparable certificate issued pursuant to section 15-132, 15-203 or 15-782.01, as applicable, without any other requirements from the state board of education or the department of education. A person who is issued a certificate pursuant to this subsection is not required to meet any requirement prescribed in section 15-533.

E. Placement decisions of teaching intern certificate holders issued pursuant to subsection C, paragraph 1 of this section and section 15-552 shall be based on agreements between the teacher preparation provider, the provider's partner organizations and the local education agency. The practices of the department of education and the rules and policies of the state board of education may not restrict placement of teaching intern certification holders based on local education agency instructional models and may only consider the academic quality of the school, the effectiveness of the teaching intern certification holder's on-site mentor and the opportunity for a wide variety of schools and school models to access teaching intern certification holders.

F. Notwithstanding subsection A of this section, the following persons are not required to have a baccalaureate degree:

A teacher who is otherwise exempt by law from obtaining a baccalaureate degree and who provides instruction in STEM or career and technical education pursuant to section 15-782.01.
A person who obtains any of the following:

(a) A Native American language certificate.

(b) A student teaching intern certificate.

(d) An athletic coaching certificate.

(e) An emergency substitute certificate.

G. On or before November 15 of each year, the department of education shall report and post on its website all of the following:

The total number of teaching certificates issued in the previous calendar year disaggregated by the type of teaching certificate and demographics.
The total number of currently issued teaching certificates in this state disaggregated by the type of teaching certificate and demographics.
Any other historical data or trends regarding certificated individuals in this state.

§ 15-502 Employment of school district personnel; payment of wages of discharged employee

A. The governing board at any time may employ and fix the salaries and benefits of employees necessary for the succeeding year. The contracts of all certificated employees shall be in writing, and all employees shall be employed subject to section 38-481. The governing board may transmit and receive contracts of certificated employees in an electronic format and may accept electronic signatures on those contracts. If a contract has not been transmitted to the certificated employee by the end of the current school year, the transmittal of an electronic contract to that certificated employee prior to the start of the next school year shall be submitted to both the certificated employee's school district e-mail as well as the certificated employee's personal e-mail in order to notify them of the offer of contract. Each certificated employee shall be responsible for submitting his or her personal e-mail to human resources personnel at the school district for this purpose. Documents transmitted in an electronic format pursuant to this subsection shall be considered written documents for the purposes of sections 15-536 and 15-538.01. The governing board may adopt requirements that require electronic signatures to be followed by original signatures within a specified time period. A governing board that accepts an electronic signature for a certificated employee's contract shall provide validation to the certificated employee that the contract has been transmitted. The governing board may obtain the services of any employee, including teachers, substitute teachers and administrators, by contracting with a private entity that employs personnel required by the school district.

B. A teacher shall not be employed if the teacher has not received a certificate for teaching granted by the proper authorities. If a teacher has filed an application and completed all of the requirements for a certificate but time does not allow a teacher to receive a certificate before the commencement of employment, the conditional certificate shall serve as a certificate for the payment of wages, provided that the teacher files the conditional certificate with the county school superintendent and the certificate is issued within three months of the date of commencing employment. In order to be paid wages beyond the three-month period prescribed in this subsection, the teacher shall file the certificate with the county school superintendent. Any contract issued to a teacher who has completed certificate requirements but has not received a certificate shall be specifically contingent on receipt of such a certificate. The governing board of a school district that is subject to section 15-914.01 shall adhere to the duties described in section 15-302, subsection A, paragraph 9 for purposes of this subsection.

C. No dependent, as defined in section 43-1001, of a governing board member may be employed in the school district in which the person to whom such dependent is so related is a governing board member, except by consent of the board.

D. The governing board may employ certificated teachers under contract as part-time classroom teachers. Notwithstanding any other statute, a certificated teacher who has been employed by the school district for more than the major portion of three consecutive school years does not lose the entitlement to the procedures prescribed in sections 15-538.01, 15-539 through 15-544 and 15-547 if the teacher is employed under contract on a part-time basis for at least forty per cent time. For the purposes of this subsection, "forty per cent time" means employed for at least forty per cent of the school day required of full-time teachers of the same grade level or for at least forty per cent of the class load assigned to full-time teachers of the same grade level, as determined by the governing board.

E. The governing board may employ a business manager who has expertise in finance. For the purposes of this subsection, "expertise in finance" means one or more of the following:

A baccalaureate degree in accounting, finance, school finance or public finance.
A graduate degree in accounting, finance, school finance or public finance.
Other finance training or finance experience that the governing board determines is sufficient to qualify the person to administer the business operations of the school district.

F. Notwithstanding sections 23-351 and 23-353, if an employee is discharged from the service of a school district, the school district shall pay the wages due to the employee within ten calendar days from the date of discharge.

G. Each school district shall establish policies and procedures to provide teachers with personal liability insurance.

H. Notwithstanding any other law, a school district shall not adopt policies that provide employment retention priority for teachers based on tenure or seniority.

§ 15-503 Superintendents, principals, head teachers and school psychologists; term of employment; evaluation; contract delivery; nonretention notice

A. The governing board may:

Employ a superintendent or principal, or both. If the governing board employs a superintendent, the governing board shall determine the qualifications for the superintendent by action taken at a public meeting. The governing board shall require a superintendent to have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1.
Appoint a head teacher.
Jointly with another governing board employ a superintendent or a principal, or both. If the governing board jointly employs a superintendent, the governing boards shall jointly determine the qualifications for the superintendent by action taken at a public meeting. The governing boards shall require a superintendent to have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1.

B. The term of employment of superintendents may be for any period not exceeding three years, except that if the superintendent's contract with the school district is for multiple years pursuant to this subsection the school district shall not offer to extend or renegotiate the contract until no earlier than fifteen months before the expiration of the contract. The term of employment of principals may be for any period not exceeding three years, except that if the principal's contract with the school district is for multiple years the school district shall not offer to extend or negotiate the contract until May of the year preceding the final year of the contract. The school district governing board or the governing body of the charter school shall communicate the superintendent's or principal's duties with respect to the classroom site fund established by section 15-977.

C. The governing board shall establish systems for the evaluation of the performance of principals and other school administrators and certificated school psychologists in the school district. In the development and adoption of these performance evaluation systems, the governing board shall avail itself of the advice of its administrators and certificated school psychologists. Each evaluation shall include recommendations as to areas of improvement in the performance of the certificated school psychologist if the performance of the certificated school psychologist warrants improvement. After transmittal of an assessment, a governing board designee shall confer with the certificated school psychologist to make specific recommendations as to areas of improvement in the certificated school psychologist's performance. The governing board designee shall provide assistance and opportunities for the certificated school psychologist to improve performance and shall follow up with the certificated school psychologist after a reasonable period of time for the purpose of ascertaining that the certificated school psychologist is demonstrating adequate performance. The evaluation process for certificated school psychologists shall include appeal procedures for certificated school psychologists who disagree with the evaluation of their performance, if the evaluation is for use as criteria for establishing compensation or dismissal.

D. On or before May 15 each year, the governing board shall offer a contract for the next school year to each certified administrator and certificated school psychologist who is in the last year of the person's contract unless, on or before April 15, the governing board, a member of the board acting on behalf of the governing board or the superintendent of the school district gives notice to the administrator or certificated school psychologist of the governing board's intention not to offer a new contract. If the governing board has called for an override election for the third Tuesday in May as provided in section 15-481, the governing board shall offer a contract for the next school year to each certified administrator or certificated school psychologist who is in the last year of the person's contract on or before June 15 unless, no later than five days after the override election excluding Saturday, Sunday and legal holidays, the governing board, a member of the governing board acting on behalf of the governing board or the superintendent of the school district gives notice to the administrator or the certificated school psychologist of the governing board's intention not to offer a new contract. The administrator's or the certificated school psychologist's acceptance of the contract shall be indicated within thirty days after the date of the written contract or the offer is revoked. The administrator or certificated school psychologist accepts the contract by signing the contract and returning it to the governing board or by making a written instrument that accepts the terms of the contract and delivering the written instrument to the governing board.

E. Notice of the governing board's intention not to reemploy the administrator or certificated school psychologist shall be made by delivering the notice personally to the administrator or the certificated school psychologist or by sending the notice by certified mail, postmarked on or before the applicable deadline prescribed in subsection D of this section, and directed to the administrator or the certificated school psychologist at the person's place of residence as recorded in the school district records.

F. The governing board shall make available the evaluation and performance classification of each principal in the school district to school districts and charter schools that are inquiring about the performance of the principal for hiring purposes.

§ 15-504 Contract days for professional association activities; prohibition

School district employment contracts shall not include compensated days for professional association activities. For the purposes of this section, professional association activities do not include conduct that occurs during a field trip for pupils. This section does not prohibit individual employees of school districts from taking compensated leave time for any personal purpose, any professional purpose or any other lawful purpose.

§ 15-505 Discipline; educator information system; personnel list; definitions

A. Pursuant to the rules and procedures adopted pursuant to section 15-203, the state board of education shall investigate written complaints alleging that a noncertificated person has engaged in immoral or unprofessional conduct.

B. The state board of education may review a complaint and determine whether to take disciplinary action against a noncertificated person who has engaged in immoral or unprofessional conduct, including prohibiting the person's employment at a school district or charter school for up to five years except as otherwise prescribed in section 15-550. The state board shall adopt rules and procedures for disciplinary action of noncertificated persons that are substantially similar to the rules and procedures for certificated persons.

C. Before employing a certificated or noncertificated person, school districts and charter schools shall conduct a search of the prospective employee on the educator information system that is maintained by the department of education.

D. A school district or charter school may not employ either of the following in a position that requires a valid fingerprint clearance card:

A certificated person whose certificate has been suspended, surrendered or revoked, unless the state board of education has subsequently reinstated the person's certificate.
A noncertificated person who has been prohibited from employment at a school district or charter school by the state board of education pursuant to subsection B of this section.

E. Each school district and charter school shall annually submit to the department of education a list of certificated and noncertificated persons who are employed at the school district or charter school. The department shall issue guidance to school districts and charter schools regarding this subsection.

F. For the purposes of this section:

"Noncertificated person":

(a) Means a current or prospective employee of a school district or charter school who both:

(i) Does not possess a certificate issued pursuant to rules adopted by the state board of education under section 15-203, subsection A, paragraph 14.

(ii) Is required or allowed to provide services directly to pupils without being supervised by a certificated employee.

(b) Does not include a person who does not hold a certificate and who is one of the following at a school district or charter school:

(i) A transportation employee as defined in section 15-513.

(ii) A food service employee or contractor.

(iii) A maintenance worker.

(iv) An employee or contractor of the school district or charter school that is not required to possess a valid fingerprint clearance card.

"Supervised" means being under the direction of and, except for brief periods of time during a school day or school activity, within sight of a certificated employee when providing direct services to pupils.

§ 15-506 Flag, Constitution and Bill of Rights display; recitation of pledge of allegiance; moment of silence; exemption

A. School districts and charter schools shall:

Acquire United States flags that are manufactured in the United States and that are at least two feet by three feet and hardware to appropriately display the United States flags.
For grades seven through twelve, acquire a legible copy of the Constitution of the United States and the Bill of Rights that is manufactured in the United States.
Display the flags in accordance with title 4 of the United States Code in each classroom and on or near the outside of the school building during school hours and at such other times as the school authorities direct.
For grades seven through twelve, place a legible copy of the Constitution of the United States and the Bill of Rights adjacent to each classroom flag.
Set aside a specific time each day for students who wish to recite the pledge of allegiance to the United States flag.
For kindergarten programs and grades one through twelve, set aside at least one minute but not more than two minutes at the beginning of each school day for students to engage in a moment of silence during which students may not interfere with other students' participation. A teacher or other school employee may not suggest the nature of any reflection in which a student may engage during the moment of silence. Each teacher of a class in which a moment of silence occurs pursuant to this paragraph shall encourage parents of students in the class to discuss with their children how to best use the moment of silence required by this paragraph.

B. Private schools, parochial schools and homeschools are exempt from this section.

§ 15-507 Abuse of teacher or school employee in school; classification

A person who knowingly abuses a teacher or other school employee on school grounds or while the teacher or employee is engaged in the performance of his duties is guilty of a class 3 misdemeanor.

§ 15-508 Dismissal for failure to comply with certain laws

Wilful neglect or failure on the part of a school superintendent, principal, teacher or other officer of a school to observe and carry out the requirements of sections 15-532 and 15-710 is sufficient cause for dismissal or removal of such person from his position, and the superintendent of public instruction shall make necessary arrangements for carrying out the provisions of this section.

§ 15-509 School employees; applicants; criminal conviction disclosures; violation; classification; definition

A. Any individual who applies for employment by a school in this state shall disclose to each prospective employer whether the individual has pled guilty, pled no contest, been convicted of or is waiting trial on any of the following:

A dangerous crime against children pursuant to section 13-705.
A violation of section 13-1404 or 13-1406 in which the victim was a minor.
An act committed in another state or territory that if committed in this state would have been subject to disclosure pursuant to paragraph 1 or 2 of this subsection.
Sexual conduct with a minor pursuant to section 13-1405.
Any crime that requires the person to register as a sex offender pursuant to section 13-3821.
A preparatory offense as prescribed in section 13-1001 of any offense that is subject to disclosure pursuant to paragraph 1, 2, 3, 4 or 5 of this subsection.

B. It is a defense to a prosecution for a violation of subsection A, paragraph 3 of this section that the individual's failure to disclose was due to a good faith mistake of law.

C. Any individual who knowingly violates subsection A of this section is guilty of a class 6 felony.

D. For the purposes of this section, "school" means a school district, charter school or private school that provides instruction to students in kindergarten programs or any of grades one through twelve.

§ 15-510 Authorization of leaves of absence; application; preservation of rights

A. The governing board may authorize leaves of absence for school district personnel when it deems such leaves of absence to be reasonable and for good cause and not detrimental to education within the school district.

B. Leaves of absence shall be limited to a period of not to exceed one year.

C. Leaves of absence shall be granted upon application stating the purpose of the leave of absence, the facts as to its necessity or advisability and other information helpful to the governing board in making a determination as to whether the leave should be granted.

D. Sabbatical leaves of absence may be granted by the governing board to certificated teachers and administrators under this section upon the following additional conditions for the following purposes only:

Sabbatical leave of absence may be granted only for the purposes of continuing professional education.
Sabbatical leave may not exceed a period of one year and may only be granted to a certificated teacher or an administrator who has been employed by the school district for a period of seven consecutive years immediately prior to the time the sabbatical leave is to commence, and who has not previously been granted a sabbatical leave of absence by the governing board.
The governing board may authorize a salary to be paid to the person to whom sabbatical leave is granted of not to exceed one-half of the salary then received by him.
The salary shall be paid to such person upon the condition that he shall return not later than one year after commencement of the sabbatical leave for renewal of employment for at least one school year, and unless he returns within such period, he shall repay to the school district the amount paid to him during the leave period, and, unless such amount is so paid, the governing board shall direct the county attorney to institute suit against such person to collect such amount.

E. If leave is granted, all rights prescribed in sections 15-538.01, 15-539 through 15-544 and 15-547 for certificated teachers who have been employed by the school district for more than the major portion of three consecutive school years and all rights of retirement, accrued leave with pay, salary increments and other benefits provided by law shall be preserved and available to the employee after the termination of the leave of absence.

§ 15-511 Use of school district or charter school resources or employees to influence elections; prohibition; civil penalty; definitions

A. A person acting on behalf of a school district or a person who aids another person acting on behalf of a school district shall not spend or use school district or charter school resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value of the school district or charter school, for the purpose of influencing the outcomes of elections. Notwithstanding this section, a school district may distribute informational pamphlets on a proposed budget override election as provided in section 15-481, subsections B and C or informational pamphlets on a proposed bond election as provided in section 15-491, subsection D if those informational pamphlets present factual information in a neutral manner, except for those arguments presented as prescribed in section 15-481, subsection B, paragraph 9. Nothing in this section precludes a school district from reporting on official actions of the governing board.

B. The prohibition on the use of public resources to influence the outcome of bond, budget override and other tax-related elections includes the use of school district-focused promotional expenditures that occur after an election is called and through election day. This prohibition does not include routine school district communications.

C. This section does not prohibit the use of school district or charter school resources, including facilities and equipment, for government-sponsored forums or debates if the government sponsor remains impartial and the events are purely informational and provide an equal opportunity to all viewpoints. The rental and use of a public facility by a private person or entity that may lawfully attempt to influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate.

D. An employee of a school district or charter school who is acting as an agent of or working in an official capacity for the school district or charter school may not give pupils written materials to influence the outcome of an election or to advocate support for or opposition to pending or proposed legislation.

E. Employees of a school district or charter school may not use the authority of their positions to influence the vote or political activities of any subordinate employee.

F. Notwithstanding section 15-342, paragraph 8, a school district shall not spend monies for membership in an association that attempts to influence the outcome of an election.

G. This section does not deny the civil and political liberties of any person as guaranteed by the United States and Arizona Constitutions.

H. The attorney general shall publish and distribute to school districts and charter schools a detailed guideline regarding activities prohibited under this section. The attorney general may distribute these guidelines through a website or electronically.

I. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may initiate a suit in the superior court in the county in which the school district or charter school is located for the purpose of complying with this section.

J. For each violation of this section, the court may impose a civil penalty not to exceed five thousand dollars plus any amount of misused funds subtracted from the school district budget against a person who knowingly violates or a person who knowingly aids another person in violating this section. The person determined to be out of compliance with this section shall be responsible for the payment of all penalties and misused funds. School district funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the school district or charter school whose funds were misused.

K. 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.

L. All penalties collected by the court for a suit initiated in superior court by the attorney general shall be paid to the office of the attorney general for the use and reimbursement of costs of prosecution pursuant to this section. All penalties collected by the court for a suit initiated in superior court by a county attorney shall be paid to the county treasurer of the county in which the court is held for the use and reimbursement of costs of prosecution pursuant to this section.

M. For the purposes of this section:

"Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters.
"Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral.
"Misused funds" means school district monies or resources used unlawfully pursuant to this section.
"Routine school district communications" means messages or advertisements that are germane to the functions of the school district and that maintain the frequency, scope and distribution consistent with past practices or are necessary for public safety.

§ 15-512 Noncertificated personnel; fingerprinting personnel; background investigations; affidavit; civil immunity; violation; classification; definition

A. Noncertificated personnel and personnel who are not paid employees of the school district and who are not either the parent or the guardian of a pupil who attends school in the school district but who are required or allowed to provide services directly to pupils without being supervised by a certificated employee and who are initially hired by a school district after January 1, 1990 shall be fingerprinted as a condition of employment except for personnel who are required as a condition of licensing to be fingerprinted if the license is required for employment or for personnel who were previously employed by a school district and who reestablished employment with that district within one year after the date that the employee terminated employment with the district. A school district may require noncertificated personnel and personnel who are not paid employees of the school district and who are not either the parent or the guardian of a pupil who attends school in the school district but who are required or allowed to provide services directly to pupils without being supervised by a certificated employee to obtain a fingerprint clearance card as a condition of employment. Even if the school district does not require a fingerprint clearance card as a condition of employment, noncertificated personnel and personnel who are not paid employees of the school district and who are not either the parent or the guardian of a pupil who attends school in the school district but who are required or allowed to provide services directly to pupils without being supervised by a certificated employee may apply for a fingerprint clearance card. A school district may release the results of a background check or communicate whether the person has been issued or denied a fingerprint clearance card to another school district for employment purposes. The employee's fingerprints and the form prescribed in subsection D of this section shall be submitted to the school district within twenty days after the date an employee begins work. A school district may terminate an employee if the information on the form provided under subsection D of this section is inconsistent with the information received from the fingerprint check or the information received in connection with a fingerprint clearance card application. The school district shall develop procedures for fingerprinting employees. For the purposes of this subsection, "supervised" means being under the direction of and, except for brief periods of time during a school day or school activity, within sight of a certificated employee when providing direct services to pupils.

B. Fingerprints submitted pursuant to this section shall be used to conduct a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

C. The school district shall assume the costs of fingerprint checks and fingerprint clearance cards and may charge these costs to its fingerprinted employee, except that the school district may not charge the costs of the fingerprint check or the fingerprint clearance card to personnel of the school district who are not paid employees. The fees charged for fingerprinting shall be deposited with the county treasurer who shall credit the deposit to the fingerprint fund of the school district. The costs charged to a fingerprinted employee are limited to and the proceeds in the fund may only be applied to the actual costs, including personnel costs, incurred as a result of the fingerprint checks or the fingerprint clearance cards. The fingerprint fund is a continuing fund that is not subject to reversion.

D. Personnel required to be fingerprinted or obtain a fingerprint clearance card as prescribed in subsection A of this section shall certify on forms that are provided by the school and notarized whether they are awaiting trial on or have ever been convicted of or admitted in open court or pursuant to a plea agreement committing any of the following criminal offenses in this state or similar offenses in another jurisdiction, including a charge or conviction that has been vacated, set aside or expunged:

Sexual abuse of a minor.
Incest.
First or second degree murder.
Kidnapping.
Arson.
Sexual assault.
Sexual exploitation of a minor.
Felony offenses involving contributing to the delinquency of a minor.
Commercial sexual exploitation of a minor.
Felony offenses involving sale, distribution or transportation of, offer to sell, transport, or distribute or conspiracy to sell, transport or distribute marijuana or dangerous or narcotic drugs.
Felony offenses involving the possession or use of marijuana, dangerous drugs or narcotic drugs.
Misdemeanor offenses involving the possession or use of marijuana or dangerous drugs.
Burglary in the first degree.
Burglary in the second or third degree.
Aggravated or armed robbery.
Robbery.
A dangerous crime against children as defined in section 13-705.
Child abuse.
Sexual conduct with a minor.
Molestation of a child.
Manslaughter.
Aggravated assault.
Assault.
Exploitation of minors involving drug offenses.

E. A school district may refuse to hire or may review or terminate personnel who have been convicted of or admitted committing any of the criminal offenses prescribed in subsection D of this section or of a similar offense in another jurisdiction. A school district that is considering terminating an employee pursuant to this subsection shall hold a hearing to determine whether a person already employed shall be terminated. In conducting a review, the governing board shall utilize the guidelines, including the list of offenses that are not subject to review, as prescribed by the state board of education pursuant to section 15-534, subsection C. In considering whether to hire or terminate the employment of a person, the governing board shall take into account the following factors:

The nature of the crime and the potential for crimes against children.
Offenses committed as a minor for which proceedings were held under the jurisdiction of a juvenile or an adult court.
Offenses that have been expunged by a court of competent jurisdiction, if the person has been pardoned or if the person's sentence has been commuted.
The employment record of the person since the commission of the crime if the crime was committed more than ten years before the governing board's consideration of whether to hire or terminate the person.
The reliability of the evidence of an admission of a crime unless made under oath in a court of competent jurisdiction.

F. Before a person is employed with the school district, the district shall make documented, good faith efforts to contact previous employers of the person to obtain information and recommendations that may be relevant to the person's fitness for employment, including conducting a search of the educator information system that is maintained by the department of education pursuant to section 15-505. A school district may not employ in a position that requires a valid fingerprint clearance card a person against whom the state board of education has taken disciplinary action as prescribed in section 15-505 or whose certificate has been suspended, surrendered or revoked, unless the state board has subsequently reinstated the person's certificate. A governing board shall adopt procedures for conducting background investigations required by this subsection, including one or more standard forms for use by school district officials to document their efforts to obtain information from previous employers. A school district may provide information received as a result of a background investigation required by this section to any other school district, to any other public school and to any public entity that agrees pursuant to a contract or intergovernmental agreement to perform background investigations for school districts or other public schools. School districts and other public schools may enter into intergovernmental agreements pursuant to section 11-952 and cooperative purchasing agreements pursuant to rules adopted in accordance with section 15-213 for the purposes of performing or contracting for the performance of background investigations and for sharing the results of background investigations required by this subsection. Information obtained about an employee or applicant for employment by any school district or other public school in the performance of a background investigation, including any records indicating that a current or former employee of a school or school district was disciplined for violating policies of the school district governing board pursuant to section 15-153, may be retained by that school district or the other public school or by any public entity that agrees pursuant to contract to perform background investigations for school districts or other public schools and may be provided to any school district or other public school that is performing a background investigation required by this subsection.

G. A school district may fingerprint or require any other employee of the district to obtain a fingerprint clearance card, whether paid or not, or any other applicant for employment with the school district not otherwise required by this section to be fingerprinted or obtain a fingerprint clearance card on the condition that the school district may not charge the costs of the fingerprint check or fingerprint clearance card to the fingerprinted applicant or nonpaid employee.

H. A contractor, subcontractor or vendor or any employee of a contractor, subcontractor or vendor who is contracted to provide services on a regular basis at an individual school shall obtain a valid fingerprint clearance card pursuant to title 41, chapter 12, article 3.1. A school district governing board shall adopt policies to exempt a person from the requirements of this subsection if the person's normal job duties are not likely to result in independent access to or unsupervised contact with pupils. A school district, its governing board members, its school council members and its employees are exempt from civil liability for the consequences of adoption and implementation of policies and procedures pursuant to this subsection unless the school district, its governing board members, its school council members or its employees are guilty of gross negligence or intentional misconduct.

I. Subsection A of this section does not apply to a person who provides instruction or other education services to a pupil, with the written consent of the parent or guardian of the pupil, under a work release program, advance placement course or other education program that occurs off school property.

J. Public entities that agree pursuant to contract to perform background investigations, public schools, the department of education, the state board of education and previous employers who provide information pursuant to this section are immune from civil liability unless the information provided is false and is acted on by the school district to the harm of the employee and the public entity, the public school, the previous employer, the state board of education or the department of education knows the information is false or acts with reckless disregard of the information's truth or falsity. A school district that relies on information obtained pursuant to this section in making employment decisions is immune from civil liability for use of the information unless the information obtained is false and the school district knows the information is false or acts with reckless disregard of the information's truth or falsity.

K. The superintendent of a school district or chief administrator of a charter school or the person's designee who is responsible for implementing the governing board's policy regarding background investigations required by subsection F of this section and who fails to carry out that responsibility is guilty of unprofessional conduct and is subject to disciplinary action by the state board.

L. A school district may hire noncertificated personnel before receiving the results of the fingerprint check or a fingerprint clearance card but may terminate employment if the information on the form provided in subsection D of this section is inconsistent with the information received from the fingerprint check or the fingerprint clearance card. In addition to any other conditions or requirements deemed necessary by the superintendent of public instruction to protect the health and safety of pupils, a school district may hire noncertificated personnel who are required or allowed unsupervised contact with pupils before the results of a fingerprint check are received or a fingerprint clearance card is issued if the school district does all of the following:

Documents in the applicant's file the necessity for hiring and placing the applicant before a fingerprint check could be completed or a fingerprint clearance card could be issued.
Ensures that the department of public safety completes a statewide criminal history information check on the applicant every one hundred twenty days until the date that the fingerprint check is completed or the fingerprint clearance card is issued or denied.
Obtains references from the applicant's current employer and two most recent previous employers except for applicants who have been employed for at least five years by the applicant's most recent employer.
Provides general supervision of the applicant until the date that the fingerprint check is completed or the fingerprint clearance card is issued or denied.
Reports to the superintendent of public instruction on June 30 and December 31 each year the number of applicants hired before the completion of a fingerprint check or the issuance of a fingerprint clearance card. In addition, the school district shall report the number of applicants for whom fingerprint checks were not received or fingerprint clearance cards were not issued after one hundred twenty days and after one hundred seventy-five days of hire.

M. Notwithstanding any other law, this section does not apply to pupils who attend school in a school district and who are also employed by a school district.

N. A person who makes a false statement, representation or certification in any application for employment with the school district is guilty of a class 3 misdemeanor.

O. For the purposes of this section, "background investigation" means any communication with an employee's or applicant's former employer that concerns the education, training, experience, qualifications and job performance of the employee or applicant and that is used for the purpose of evaluating the employee or applicant for employment. Background investigation does not include the results of any state or federal criminal history records check.

§ 15-513 Transportation employees; chemical abuse education; drug tests; costs; termination from employment; appeal; definition

A. Beginning on January 1, 1991, a transportation employee shall submit to drug and alcohol testing if the supervisor of the employee, or the supervisor's designee, has probable cause that the employee's job performance has been impaired by the use of alcohol or a drug in violation of title 13, chapter 34. Probable cause shall be based on observance of the employee by district personnel or personnel of a contracting person or entity which furnishes transportation services to the school district and shall be documented by an affidavit signed by the person who has observed the behavior and the supervisor of the employee or the supervisor's designee.

B. A transportation employee shall submit to drug and alcohol testing after an accident involving a vehicle used to transport pupils or an accident involving equipment used in the performance of the employee's duties if the supervisor of the employee, or the supervisor's designee, has probable cause, based on knowledge of the events and circumstances of the accident, that the employee's involvement in the accident was influenced by the use of alcohol or a drug in violation of title 13, chapter 34. Probable cause shall be documented by an affidavit signed by the supervisor of the employee, or the supervisor's designee.

C. School districts shall develop procedures for drug and alcohol testing of transportation employees as provided in the section.

D. The school district shall assume the costs of the drug and alcohol testing of a transportation employee. If the results of a test are positive, the school district may charge the costs of the test to the tested employee. The costs charged to the employee are limited to the actual costs incurred as a result of testing. If the results of a test are negative, the school district shall not charge the costs of testing to the tested employee.

E. A transportation employee who refuses to submit to drug and alcohol testing or whose test results are positive may be terminated from employment. School districts shall develop a procedure for an employee to appeal the test findings before termination of the employee.

F. An employee who is terminated or otherwise disciplined under this section shall be entitled to all appeal and review rights the employee would have as a district employee or by contract with another person or entity which furnishes transportation services to the school district.

G. For purposes of this section, "transportation employee" means an individual who is employed by the school district, or by another person or entity which furnishes transportation services to the school district, as the driver of a vehicle used to transport pupils, as a person involved in the maintenance and service of vehicles used to transport pupils, as a person involved in the dispatching or supervision of persons employed as drivers of vehicles used to transport pupils or persons involved in the maintenance and service of vehicles used to transport pupils.

§ 15-514 Immoral or unprofessional conduct; duty to report; immunity; definitions

A. Any certificated personnel, a noncertificated person or a member of a school district governing board or charter school governing body who reasonably suspects or receives a reasonable allegation that a public school employee, including employment through a third-party contractor, has engaged in conduct involving minors that would be subject to the reporting requirements of section 13-3620 shall immediately report or cause reports to be made to a local law enforcement agency. If the employee who is the subject of the suspicion or allegation is certificated by the state board of education or is a noncertificated person, the person shall also report the suspicion or allegation to the state board of education in writing as soon as is reasonably practicable but not later than three business days after the person first suspects or receives an allegation of the conduct. A report to a school resource officer or a school safety officer does not satisfy the reporting requirement prescribed by this subsection.

B. The superintendent of a school district or the chief administrator of a charter school who reasonably suspects or receives a reasonable allegation that an act of immoral or unprofessional conduct that would constitute grounds for dismissal or criminal charges by a certificated or noncertificated person has occurred shall report the conduct to the state board of education.

C. A person who in good faith reports or provides information pursuant to this section regarding the immoral or unprofessional conduct of a certificated or noncertificated person is not subject to an action for civil damages as a result.

D. A governing board or school or school district employee who has control over personnel decisions shall not take unlawful reprisal against an employee because the employee reports in good faith information as required by this section. For the purposes of this subsection, "unlawful reprisal" means an action that is taken by a governing board or school or school district employee who has control over personnel decisions as a direct result of a lawful report pursuant to this section and, with respect to the reporting employee, results in one or more of the following:

Disciplinary action.
Transfer or reassignment.
Suspension, demotion or dismissal.
An unfavorable performance evaluation.
Other significant changes in duties or responsibilities that are inconsistent with the employee's salary or employment classification.

E. Failure to report information as required by this section by a certificated or noncertificated person constitutes grounds for disciplinary action by the state board of education.

F. A governing board or school district employee who has control over personnel decisions and who reasonably suspects or receives a reasonable allegation that a person certificated by the state board of education or a noncertificated person has engaged in conduct involving minors that would be subject to the reporting requirements of section 13-3620 and this article shall not accept the resignation of the certificate holder or noncertificated person until these suspicions or allegations have been reported to the state board of education.

G. If the conduct that is the subject of the suspicions or allegations reported pursuant to this section is a reportable offense, any investigation related to the suspicions, allegations or report is subject to the following:

If a school resource officer, school safety officer or school administrator receives a report regarding suspicions or allegations of a reportable offense, the school resource officer, school safety officer or school administrator shall submit to a local law enforcement agency all information relating to the report for the purposes of the local law enforcement agency investigating the reported conduct.
A student who is identified as a potential victim of the alleged conduct may be interviewed only as provided by the local county protocol that is adopted pursuant to section 8-817. This paragraph does not prevent a school employee, school resource officer or school safety officer from receiving a voluntary report from a student who is an alleged victim that a school employee committed a reportable offense.

H. For the purposes of this section:

"Noncertificated person" has the same meaning prescribed in section 15-505.
"Reportable offense" has the same meaning prescribed in section 13-3620.
"School safety officer" means a peace officer who is working in an off-duty capacity at a school.

§ 15-515 Duty to report violations occurring on school premises

All school personnel who observe a violation of section 13-3102, subsection A, paragraph 12 or section 13-3111 on school premises shall immediately report the violation to the school administrator. The administrator shall immediately report the violation to a peace officer. The peace officer shall report this violation to the department of public safety for inclusion in the statewide and federal uniform crime reports prescribed in section 41-1750, subsection A, paragraph 2.

§ 15-516 Teacher immunity

A full-time teacher who is employed by a school district or a charter school is immune from personal liability for all acts done and actions taken in good faith in evaluating or grading any student.

Article 3 Certification and Employment of School Employees

§ 15-531 Fees

A. The state board of education may fix and collect fees for:

The issuance and evaluation, singly or both, of any provisional, basic or standard teaching certificate, any administrative, specialized service, nurse, career and technical education, vocational education or substitute certificate, special subject endorsements including guidance counselor, art, music, physical education, industrial arts, librarian or driver training, and one-year and multiyear certificates including adult education, emergency or intern certificates, not less than twenty dollars and not more than thirty dollars.
The renewal and evaluation, singly or both, of any certificate, name changes, duplicates or changes of coding to existing files or certificates, not less than ten dollars and not more than twenty dollars.
The administration and evaluation of the examination on the Constitutions of the United States and Arizona. Fees for the examination on the Constitutions of the United States and Arizona shall not exceed the fees assessed by the test publisher.
The administration and evaluation of the proficiency examination for applicants for teaching certificates. Fees for the proficiency examination shall not exceed the fees assessed by the test publisher.

B. The department of education, in collecting the fees authorized by this section, may impose a convenience fee for transactions conducted using a credit or debit card or other means of electronic payment. The convenience fee shall be assessed on a per transaction basis. Pursuant to section 35-142, subsections K and R, the department shall continue to accept methods of payment that are not subject to a convenience fee.

§ 15-531.01 Certification expiration; military service; one year extension

A. A certificate issued pursuant to this article to any member of the Arizona national guard or the United States armed forces reserves shall not expire while the member is serving on federal active duty and shall be extended one year after the member returns from federal active duty, provided that the member, or the legal representative of the member, notifies the state board of education of the federal active duty status of the member. A certificate issued pursuant to this article to any member serving in the regular component of the United States armed forces shall be extended one year from the date of expiration, provided that the member, or the legal representative of the member, notifies the state board of education of the federal active duty status of the member.

B. A certificate issued pursuant to this article to any member of the Arizona national guard, the United States armed forces reserves or the regular component of the United States armed forces shall not expire and shall be extended one year from the date the military member is able to perform activities necessary under the certificate if the member both:

Is released from active duty service.
Suffers an injury as a result of active duty service that temporarily prevents the member from being able to perform activities necessary under the certificate.

C. If the certificate is renewed during the applicable extended time period, the member is responsible only for normal fees and activities, including maintaining a valid fingerprint clearance card, relating to renewal of the certificate and shall not be charged any additional costs such as late fees or delinquency fees.

D. The member, or the legal representative of the member, shall present to the state board of education a copy of the member's official military orders, a redacted military identification card or a written verification from the member's commanding officer before the end of the applicable extended time period in order to qualify for the extension.

§ 15-532 Examination on state and United States constitutions; reciprocity requirement; exemption; intergovernmental agreement or contract for administration and evaluation

A. A person who is applying for a certificate authorizing the person to become a teacher in a school, in addition to fingerprinting and other requirements, shall either complete the required classes or pass a satisfactory examination on the provisions and principles of the Constitutions of the United States and Arizona.

B. A person who has not met the requirements of this section at the time application is made but who has met all other requirements shall be granted a certificate for at least three years, except that a person who has not met the requirements of this section but who has met all other requirements and who applies for a certificate authorizing the person to teach an academic course that focuses predominantly on history, government, social studies, citizenship, law or civics shall be granted a certificate for not more than one year. No additional certificate may be granted until all requirements have been fulfilled as provided by the regulations of the state board of education governing certification of teachers. A person who is applying for reciprocity pursuant to section 15-203, subsection A, paragraph 27 shall be issued a standard certificate and demonstrate completion of the requirements pursuant to the timelines established in this section. The department of education or state board of education may temporarily suspend the standard certificate of a person who fails to meet the requirements of this section within the prescribed time frames. A certificate that is temporarily suspended pursuant to this subsection is not considered a disciplinary action and a person shall be allowed to correct the deficiency within the remaining time of the standard certification.

C. A noncertified person, qualified under the federal and state plans for vocational education, shall be exempt from this section for the purpose of acting as an instructor for special adult and evening classes.

D. The state board of education may enter into intergovernmental agreements or contracts pursuant to title 11, chapter 7, article 3 for the administration and evaluation of the examination on the provisions and principles of the Constitutions of the United States and Arizona. Notwithstanding section 15-531, the intergovernmental agreement or contract shall specify the fee for the administration and evaluation of the examination and may provide for the retention of all or part of the monies by the contractor administering and evaluating the examination.

E. A university under the jurisdiction of the Arizona board of regents shall offer the classes required by this section to students who are pursuing a bachelor of arts degree in education or a bachelor of science degree in education at that university.

§ 15-533 Proficiency examination; examination reciprocity

A. To qualify for a standard teaching certificate, or equivalent certificate later adopted by the state board of education, a person must pass each component of the proficiency examination developed and administered by the state board of education unless otherwise exempted by law. The proficiency examination shall consist of only a professional knowledge test and a subject knowledge test.

B. A person is not required to take any examination pursuant to this section if the person possesses a comparable valid certification from another state and is in good standing with that other state pursuant to section 15-501.01, subsection D.

C. A person who is applying for a standard teaching certificate or any other certificate adopted by the state board of education is not required to take the professional knowledge test, the subject knowledge test or the entire proficiency examination if the person has passed corresponding portions of an examination adopted by a state agency in another state that is similar to the examination adopted by the state board of education. A person who is applying for a standard teaching certificate or any other certificate adopted by the state board of education is not required to take any portion of the proficiency examination if the person has been a full-time teacher or in a full-time school leadership position in any state, including this state, for at least three years in the same area of certification in which the person is applying for certification in this state.

D. An applicant for a standard teaching certificate or any other certificate adopted by the state board of education may demonstrate subject knowledge proficiency instead of taking the subject knowledge test required pursuant to this section by meeting any of the following:

Has taught courses relevant to a content area or subject matter for the last two consecutive years and for a total of at least three years at one or more regionally or nationally accredited public or private postsecondary institutions. The person shall demonstrate compliance with this requirement by providing the state board with written proof of employment for specific durations from one or more qualifying postsecondary institutions.
Has either a baccalaureate degree, a master's degree or a doctoral degree in a subject area that is relevant to a content area or subject matter taught in public schools.
Demonstrates expertise through relevant work experience of at least five years in a field that is relevant to a content area or subject matter taught in public schools. The person shall demonstrate compliance with this requirement by providing the state board with written proof of employment.

E. A person who obtained structured English immersion training in another state that the state board of education determines is comparable to the structured English immersion training required in this state is not required to obtain additional structured English immersion training in this state pursuant to section 15-756.09.

F. The state board of education may grant a standard teaching certificate or any other certificate issued by the board for at least three years to a teacher who has not met the requirements of this section at the time of application.

G. A person is not required to pass the proficiency examination or the equivalent examination more than once. The state board of education may adopt rules to modify the requirements of subsection B or C of this section for persons who have taught, obtained certification or obtained a master's degree in another country.

H. A person who is not required to pass the proficiency examination developed and administered in this state by the state board of education pursuant to this section shall be granted reciprocity for those proficiency examinations required in this state that pertain to the grade levels and content areas that the person is certified to teach in another state.

§ 15-534 Fingerprinting; review and disciplinary action; violation; classification

A. A person who applies for a certificate as prescribed in section 15-203 shall have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1. Applicants who possess a certificate pursuant to section 15-203 and who apply for additional certificates or who apply for renewal of any certificate shall meet one of the following requirements:

Have a valid fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1.
Provide proof of the submission of an application for a fingerprint clearance card. Applicants who have been denied a fingerprint clearance card shall also provide proof that the applicant qualifies for a good cause exception hearing pursuant to section 41-619.55.

B. A person who is certified pursuant to section 15-203 shall maintain a valid fingerprint clearance card during the valid period of the person's certificate or certificates.

C. The state board of education may review and determine whether to renew or not issue a certificate to an applicant for certification on a finding that the applicant engaged in conduct that is immoral or unprofessional or engaged in conduct that would warrant disciplinary action if the person had been certified at the time that the alleged conduct occurred. The board shall prescribe guidelines for this process.

D. The state board of education may take disciplinary action against or not renew the certificate of a person on a finding that the certificated person engaged in conduct that is immoral or unprofessional or engaged in conduct that would warrant disciplinary action if the person had been certified at the time that the alleged conduct occurred. The board shall prescribe guidelines for this process.

E. The department of education may issue conditional certification before an applicant has obtained a valid fingerprint clearance card. A conditional certificate may be used only for employment in the school district that submits an application to the department of education for conditional certification pursuant to this subsection. The state board of education may revoke conditional certification if the information on the application for a conditional certificate is false or incomplete, the applicant is denied a fingerprint clearance card or the conditional certificate is used for employment in a school district other than the school district that is indicated on the application for conditional certification. In addition to any other conditions or requirements deemed necessary by the superintendent of public instruction to protect the health and safety of pupils, conditional certification shall be issued before the applicant obtains a fingerprint clearance card if all of the following conditions are met:

The school district that is seeking to hire the applicant verifies in writing on a form developed by the department of education the necessity for hiring and placement of the applicant before a fingerprint check is completed.
The school district that is seeking to hire the applicant performs all of the following:

(a) Ensures that the department of public safety completes a statewide criminal records check on the applicant. A statewide criminal records check shall be completed by the department of public safety every one hundred twenty days until the date that the fingerprint check is completed.

(b) Completes a search of criminal records in all local jurisdictions outside of this state in which the applicant has lived in the previous five years.

(c) Obtains references from the applicant's current employer and two most recent previous employers except for applicants who have been employed for at least five years by the applicant's most recent employer.

(d) Provides general supervision of the applicant until the applicant receives permanent certification from the department of education.

F. Before employment, schools or school districts shall verify the certification and fingerprint status of applicants who apply for school or school district positions that require certification.

G. Any person who participates in a teacher preparation program that is approved by the state board of education or any person who is contracted by this state, by a school district or by a charter school to provide tutoring services shall obtain a fingerprint clearance card pursuant to this section before the person participates in field experience in this state in which services will be provided directly to pupils. A person who participates in a teacher preparation program that is approved by the state board and who does not participate in field experience or student teaching in this state shall not be required to obtain a fingerprint clearance card pursuant to this section.

H. The state board of education shall notify the department of public safety if the state board of education receives credible evidence that a person who possesses a valid fingerprint clearance card either:

Is arrested for or charged with an offense listed in section 41-1758.03, subsection B.
Falsified information on the form required by subsection A of this section.

I. A person who makes a false statement, representation or certification in any application for certification is guilty of a class 3 misdemeanor.

§ 15-534.01 Withdrawal of applications for administrative deficiencies; denial of applications for substantive deficiencies; certification time frames

A. If an application for certification is administratively incomplete, as prescribed in title 41, chapter 6, article 7.1, the department of education shall issue a written notice requesting the applicant to supply missing documents or other information. The department of education shall consider an application for certification withdrawn if, within sixty days after the date of the notice, the applicant does not supply the documentation or information requested or does not provide reasonable documented justification for the delay. On receipt of documented justification, the department of education shall provide an additional thirty days for the requested documentation or information to be provided before considering an application withdrawn.

B. If an application for certification is substantively incomplete, as prescribed in title 41, chapter 6, article 7.1, the department of education may issue a written notice requesting the applicant to supply additional documents or other information. The department of education shall deny an application for certification if, within sixty days after the date of the notice, the applicant does not supply the documentation or information requested.

C. If the final day of a deadline imposed by this section falls on a Saturday, Sunday or other legal holiday, the next business day is the final day of the deadline.

D. A notice of denial of an application for certification issued by the department of education pursuant to subsection B of this section shall comply with section 41-1076.

E. A person who has had an application for certification denied by the department of education pursuant to subsection B of this section may file a written request for a hearing with the state board of education within fifteen days after receiving the notice of denial. The appeal shall be conducted in accordance with title 41, chapter 6, article 6.

§ 15-534.02 Restrictions on applications for certification after the surrender, revocation or denial of certificate; definition

A. A person shall not submit an application for certification with the state board of education for a period of five years if any of the following occurs:

The person surrenders a certificate issued by the state board of education.
The person's certificate is revoked by the state board of education on grounds of immoral or unprofessional conduct pursuant to rules adopted by the state board of education pursuant to section 15-203.
The state board of education prohibits a noncertificated person from employment in a school district or charter school as described in section 15-505 for a period of five years.

B. If a person's application for certification is denied by the state board of education on grounds of immoral or unprofessional conduct pursuant to rules adopted by the state board of education pursuant to section 15-203, the state board of education shall determine that the person is prohibited from submitting an application for certification for a specified period up to five years.

C. The periods of time prescribed in subsections A and B of this section begin on the date that the state board of education accepts a surrendered certificate, makes a final decision to revoke a certificate or makes a final determination to deny an application for certification.

D. A person against whom the state board of education has taken disciplinary action pursuant to section 15-550 is not eligible to apply for certification with the state board of education.

E. The department of education shall not process an application for certification submitted by a person who is prohibited from submitting an application pursuant to subsection A, B or D of this section.

F. For the purposes of this section, "noncertificated person" has the same meaning prescribed in section 15-505.

§ 15-534.03 Service of documents; change of address notice requirement

A. Every notice or decision issued by the state board of education pertaining to the denial of an application for initial certification or renewal of a certificate or pertaining to disciplinary action against a certificated person shall be served by personal delivery or certified mail, return receipt requested, to the applicant or certificated person's last address of record with the department of education or by any other method that is reasonably calculated to give actual notice to the applicant or the certificated person.

B. Each applicant or certificated person shall inform the department of education of any change of address within thirty days of the change of address.

§ 15-534.04 Reciprocal discipline; certificated and noncertificated persons; definition

A. A final adjudication or judgment in another jurisdiction that a certificated or noncertificated person has engaged in immoral or unprofessional conduct shall be treated as immoral or unprofessional conduct for the purposes of any disciplinary proceeding conducted against that person in this state.

B. An applicant for certification who has been disciplined in another jurisdiction for immoral or unprofessional conduct shall successfully complete the disciplinary process in that jurisdiction before that person may apply for certification in this state.

C. After receiving notification that a person's educator certificate has been revoked or suspended in another jurisdiction, the state board of education may revoke or suspend all certificates issued in this state to that person in a manner that is consistent with the terms of revocation or suspension in the other jurisdiction, unless that person requests a hearing pursuant to title 41, chapter 6, article 6. After conducting a hearing requested pursuant to this subsection, the state board of education shall determine whether to uphold or decline the revocation or suspension.

D. A noncertificated person who has been disciplined in another jurisdiction for immoral or unprofessional conduct must successfully complete the disciplinary process in that jurisdiction before the noncertificated person may be employed by a school district or charter school in this state.

E. After receiving notice that another jurisdiction has revoked or suspended a noncertificated person's ability to be employed by a public school in that jurisdiction, the state board of education may prohibit the noncertificated person from being employed by a school district or charter school in this state in a manner that is consistent with the terms of revocation or suspension in the other jurisdiction, unless the noncertificated person requests a hearing pursuant to title 41, chapter 6, article 6. After conducting a hearing requested pursuant to this subsection, the state board of education shall determine whether to uphold or to decline the revocation or suspension.

F. For the purposes of this section, "noncertificated person" has the same meaning prescribed in section 15-505.

§ 15-535 Sectarian instruction prohibited

A teacher who uses sectarian or denominational books or teaches any sectarian doctrine or conducts any religious exercises in school is guilty of unprofessional conduct and his certificate shall be revoked. This section shall not be construed to prohibit a teacher from teaching the elective course permitted by section 15-717.01.

§ 15-536 Offer of contract to probationary teacher; acceptance; notice to teacher of intention not to reemploy; definition

A. On or after March 15 of each year, the governing board shall offer a teaching contract for the next ensuing school year to each probationary teacher, unless the governing board, a member of the governing board acting on behalf of the governing board or the superintendent of the school district gives notice to the teacher of the governing board's intention not to offer a teaching contract or unless such teacher has been dismissed pursuant to section 15-538, 15-539, 15-541 or 15-544. The teacher's acceptance of the contract for the ensuing year must be indicated within fifteen business days after the date of the teacher's receipt of the written contract or the offer is revoked. Receipt under this subsection will be deemed to have occurred when the written contract is personally delivered or placed in the teacher's school provided mailbox, including email, or two days after being placed in a United States postal service mailbox. The teacher accepts the contract by signing the contract and returning it to the governing board or by making a written instrument that accepts the terms of the contract and delivering it to the governing board. If the written instrument includes terms in addition to the terms of the contract offered by the governing board, the teacher fails to accept the contract.

B. Notice of the governing board's intention not to reemploy the teacher shall be by delivering it personally to the teacher or by sending it by registered or certified mail to the teacher at the teacher's place of residence as recorded in the school district records. The notice shall incorporate a statement of reasons for not reemploying the teacher. If the reasons are charges of inadequacy of classroom performance, the governing board or its authorized representative shall give the teacher written preliminary notice of inadequacy, specifying the nature of the inadequacy with such particularity as to furnish the teacher an opportunity to correct the inadequacies and maintain adequate classroom performance as defined by the governing board pursuant to section 15-538, subsection C. The governing board may delegate to employees of the governing board the general authority to issue preliminary notices of inadequacy of classroom performance to teachers pursuant to this subsection without the need for prior approval of each notice by the governing board. In all cases in which an employee of the governing board issues a preliminary notice of inadequacy of classroom performance without prior approval by the governing board, the employee shall report its issuance to the governing board within ten school days. The written notice of intention not to reemploy shall include a copy of any evaluation pertinent to the charges made and filed with the governing board.

C. This section does not provide a probationary teacher with the right to a hearing pursuant to section 15-539, subsection F.

D. A certificated teacher who is currently a continuing teacher as defined in section 15-538.01 but who has been designated after an evaluation conducted according to the requirements pursuant to section 15-537 in the lowest performance classification for the current school year shall become a probationary teacher for the subsequent school year and shall remain a probationary teacher until that teacher's performance classification is designated in either of the two highest performance classifications.

E. For the purposes of this section, "probationary teacher" means a certificated teacher who is not a continuing teacher.

§ 15-537 Performance of certificated teachers; evaluation system; alternative performance evaluation cycle; confidentiality

A. The governing board shall establish a system to evaluate the performance of certificated teachers in the school district that results in at least one evaluation of each certificated teacher by a qualified evaluator each school year or as provided in subsection B of this section. The governing board shall establish a teacher performance evaluation system that is designed to improve teacher performance and improve student achievement and that includes the use of quantitative data on the academic progress for all students, which shall account for between twenty percent and thirty-three percent of the evaluation outcomes. The evaluation system shall include four performance classifications, designated as highly effective, effective, developing and ineffective. The objectives of the teacher performance evaluation system are to improve instruction and maintain instructional strengths. The governing board shall involve its certificated teachers in the development and periodic evaluation of the teacher performance evaluation system.

B. A school district may use an alternative performance evaluation cycle pursuant to this subsection subject to the following:

The governing board shall adopt policies for an expedited performance review during the years in which a teacher is not undergoing a formal performance evaluation pursuant to subsection A of this section. The expedited performance review policies may classify teacher performance in categories that include teamwork and support for lower-performing teachers.
The governing board shall allow only teachers who have been evaluated and designated in the highest performance classification for at least three consecutive years by the same school district under the evaluation system established pursuant to subsection A of this section to participate in the alternative performance evaluation cycle.
If an expedited performance review under this subsection determines that the teacher is not in the highest performance classification, the teacher shall be removed from the alternative performance evaluation cycle and be reviewed under the evaluation system established pursuant to subsection A of this section.

C. The governing board shall adopt teacher evaluation policies in a public meeting. Before adopting teacher evaluation policies, the governing board shall provide opportunities for public discussion on the proposed policies. The policies shall describe:

Incentives for teachers in the highest performance classification, which may include multiyear contracts not to exceed three years. The policies shall specify that the offer and acceptance of a multiyear contract does not exclude that teacher from the application of section 15-538.01, 15-540, 15-541 or 15-549 and that the teacher may accept a multiyear contract offer or decline and accept a one-year contract.
Incentives for teachers in the two highest performance classifications to work at schools that are assigned a letter grade of D or F pursuant to section 15-241.
Protections for teachers who are transferred to schools that are assigned a letter grade of D or F pursuant to section 15-241.
Protections for teachers if the principal of the school is designated in the lowest performance classification.

D. The policies prescribed in subsection C of this section shall describe:

Performance improvement plans for teachers designated in the lowest performance classification.
Dismissal or nonrenewal procedures pursuant to section 15-536 or 15-539 for teachers who continue to be designated in the lowest performance classification. The procedures shall require that the school district issue the preliminary notice of inadequacy of classroom performance no later than the second consecutive year that the teacher is designated in one of the two lowest performance classifications unless the teacher is in the first or second year of employment with the school district or has been reassigned to teach a new subject or grade level for the preceding or current school year.

E. A teacher who has been employed by the school district for the major portion of three or more consecutive school years and who is currently designated in the lowest performance classification for two consecutive school years shall not be transferred as a teacher to another school in that school district unless the school district has issued a preliminary notice of inadequacy of classroom performance and approved a performance improvement plan for the teacher pursuant to section 15-539 and the governing board has approved the new placement as in the best interests of the pupils in the school. A teacher who continues to be designated in one of the two lowest performance classifications shall not be permitted to transfer to another school. A teacher shall not be transferred more than once pursuant to this subsection.

F. The governing board shall prescribe specific procedures for the teacher performance evaluation system, which shall include at least the following elements:

At least two actual classroom observations of the certificated teacher demonstrating teaching skills in a complete and uninterrupted lesson by the qualified evaluator. There shall be at least sixty calendar days between the first and last observations. The last observation may follow the issuance of a preliminary notice of inadequacy of classroom performance and be used to determine whether the teacher has corrected inadequacies and has demonstrated adequate classroom performance. An observation shall not be conducted within two instructional days of any scheduled period in which school is not in session for one week or more. Within ten business days after each observation, the qualified evaluator shall provide written feedback to the teacher.
Specific and reasonable plans for the improvement of teacher performance as provided in subsection I of this section.
Appeal procedures for teachers who disagree with the evaluation of their performance, if the evaluation is for use as criteria for establishing compensation.
Training requirements for qualified evaluators.
A plan for the appropriate use of quantitative data of student academic progress in evaluations of all certificated teachers. The plan may make distinctions between certificated teachers who provide direct instruction to students and certificated teachers who do not provide direct instruction to students. The plan may include data for multiple school years and may limit the use of data for certificated teachers who have taught for less than two complete school years.

G. The governing board may waive the requirement of a second classroom observation for a continuing teacher whose teaching performance based on the first classroom observation places the teacher in one of the two highest performance classifications for the current school year, unless the teacher requests a second observation.

H. The results of an annual evaluation conducted as provided in this section shall be in writing or provided in an electronic format to the certificated teacher, and a copy shall be transmitted or provided in an electronic format to the certificated teacher within five days after completion of the evaluation. The certificated teacher may initiate a written reaction or response to the evaluation.

I. Each evaluation shall include recommendations as to areas of improvement in the performance of the certificated teacher if the performance of the teacher warrants improvement. After transmittal of an evaluation, the qualified evaluator or another board designee shall confer with the teacher to make specific recommendations as to areas of improvement in the teacher's performance. The qualified evaluator or other board designee shall provide professional development opportunities for the certificated teacher to improve performance and follow up with the teacher after a reasonable period of time for the purpose of ascertaining that the teacher is demonstrating adequate performance.

J. Copies of the evaluation report and performance classification of a certificated teacher retained by the governing board and the department of education are confidential, do not constitute a public record and shall not be released or shown to any person except:

To the certificated teacher who may make any use of it.
To authorized district officers and employees for all personnel matters regarding employment and contracts and for any hearing that relates to personnel matters.
To school districts and charter schools that inquire about the performance of the teacher for prospective employment purposes. A school district or charter school that receives information about a certificated teacher from the evaluation report and performance classification shall use this information solely for employment purposes and shall not release this information to or allow access to this information by any other person, entity, school district or charter school.
For introduction in evidence or discovery in any court action between the governing board and the certificated teacher in which either:

(a) The competency of the teacher is at issue.

(b) The evaluation and performance classification were an exhibit at a hearing, the result of which is challenged.

K. Any school district policy pertaining to the transfer of teachers from one school to another school in a school district shall take into consideration the current distribution of teachers across all of the performance classifications and the needs of the pupils in the school district.

§ 15-537.01 Posting of best practices for teacher and principal evaluation systems

A. On or before September 15, 2012, the department of education shall identify and prominently post on the website maintained by the department the best practices for the implementation and assessment of principal and teacher evaluation systems.

B. The best practices posted by the department of education pursuant to subsection A of this section shall be from at least the following public schools in this state:

One large school district located in a county with a population of at least eight hundred thousand persons.
One small school district located in a county with a population of at least eight hundred thousand persons.
One school district located in a county with a population of fewer than eight hundred thousand persons.
One charter school.

C. The best practices posted by the department of education pursuant to subsection A of this section shall include detailed information on the following:

The implementation process for teacher and principal evaluation systems.
The evaluation weightings.
The types of qualitative and quantitative elements used.
The methods in which the evaluations guide professional development.
The types of decisions for which the evaluations are used.

§ 15-538 Preliminary notice of inadequacy of classroom performance; performance improvement plan; adoption of definition

A. The governing board of any school district shall give any certificated teacher notice of intention to dismiss or not to reemploy if such intention is based on charges of inadequacy of classroom performance. The governing board or its authorized representative, at least forty-five instructional days before such notice, shall give the teacher written preliminary notice of inadequacy of classroom performance, specifying the nature thereof with such particularity as to furnish the teacher an opportunity to correct inadequacies and maintain adequate classroom performance as defined by the governing board pursuant to section 15-538, subsection C. A notice of the governing board's intention to dismiss or not to reemploy for inadequacy of classroom performance shall not be issued until the district has completed an observation at the conclusion of a performance improvement plan issued pursuant to subsection B. The governing board may delegate to employees of the governing board the general authority to issue preliminary notices of inadequacy of classroom performance to teachers pursuant to this section without the need for prior approval of each notice by the governing board. In all cases in which an employee of the governing board issues a preliminary notice of inadequacy of classroom performance without prior approval by the governing board, the employee shall report its issuance to the governing board within ten school days. The written notice of intention to dismiss or not to reemploy shall include a copy of any valid evaluation pertinent to the charges made.

B. The preliminary notice of inadequacy of classroom performance shall be accompanied by a performance improvement plan designed to help the teacher correct inadequacies and demonstrate adequate classroom performance.

C. The governing board shall adopt a definition of inadequacy of classroom performance that aligns with the performance classifications. The governing board's definition may set standards that exceed the standards of the performance classifications and applies to notices issued pursuant to sections 15-536 and 15-537 and this section. The governing board shall develop its definition of inadequacy of classroom performance in consultation with its certificated teachers. The consultation may be accomplished by holding a public hearing, forming an advisory committee or providing teachers the opportunity to respond to a proposed definition.

§ 15-538.01 Offer of contract to continuing teacher; definition

A. On or after March 15 of each year, the governing board shall offer to each continuing teacher a contract renewal for the next ensuing school year unless the governing board, a member of the governing board acting on behalf of the governing board or the superintendent of the school district gives notice to the teacher of the governing board's intent not to offer a contract and to dismiss the teacher as provided in section 15-539.

B. The teacher's acceptance of the contract must be indicated within fifteen business days after the date of the teacher's receipt of the written contract or the offer of a contract is revoked. Receipt under this subsection will be deemed to have occurred when the written contract is personally delivered or placed in the teacher's school provided mailbox, including email, or two days after being placed in a United States postal service mailbox. The teacher accepts the contract by signing the contract and returning it to the governing board or by making a written instrument that accepts the terms of the contract and delivering it to the governing board. If the written instrument includes terms in addition to the terms of the contract offered by the governing board, the teacher fails to accept the contract.

C. A certificated teacher who is currently a continuing teacher but who has been designated after an evaluation conducted according to the requirements pursuant to section 15-537 in the lowest performance classification for the current school year shall become a probationary teacher as defined in section 15-536 for the subsequent school year and shall remain a probationary teacher until that teacher's performance classification is designated in either of the two highest performance classifications.

D. For the purposes of this section, "continuing teacher" means a certificated teacher who has been and is currently employed by the school district for the major portion of three consecutive school years and who has not been designated in the lowest performance classification for the previous school year or who has not regained continuing status after being designated as a probationary teacher pursuant to subsection C of this section.

§ 15-538.02 Teachers with short-term certificates; dismissal; notice

Notwithstanding any other law, the governing board may dismiss a teacher who holds a teaching intern certificate, an emergency teaching certificate or another type of nonstandard certificate that is valid for one year or less without complying with the requirements of section 15-537, 15-538 or 15-541. A dismissal pursuant to this section is effective ten days after delivery of the notice of dismissal to the teacher. Notice of a governing board's authority to dismiss pursuant to this section shall be included in each teacher's contract.

§ 15-539 Dismissal of certificated teacher; due process; written charges; notice; hearing on request

A. On a written statement of charges presented by the superintendent, charging that there exists cause for the suspension without pay for a period of time greater than ten school days or dismissal of a certificated teacher of the district, the governing board, except as otherwise provided in this article, shall give notice to the teacher of its intention to suspend without pay or dismiss the teacher at the expiration of ten days from the date of the service of the notice.

B. Whenever the superintendent presents a statement of charges wherein the alleged cause for dismissal constitutes immoral or unprofessional conduct, the governing board may adopt a resolution that a complaint be filed with the department of education. Pending disciplinary action by the state board of education, the certificated teacher may be reassigned by the superintendent or placed on administrative leave by the governing board pursuant to section 15-540.

C. Except as provided in section 15-536, the governing board shall give a certificated teacher written preliminary notice of inadequacy of classroom performance pursuant to section 15-538 if its intention to dismiss is based on charges of inadequacy of classroom performance. If within the time specified in the written preliminary notice of inadequacy of classroom performance the teacher does not demonstrate adequate classroom performance, the governing board shall dismiss the teacher either within ten days of the service of a subsequent notice of intention to dismiss or by the end of the contract year in which the subsequent notice of intention to dismiss is served unless the teacher has requested a hearing as provided in subsection F of this section. If the teacher demonstrates adequate classroom performance during the period allowed to correct such deficiencies as specified in the written preliminary notice of inadequacy of classroom performance, the governing board may not dismiss the teacher for the reasons specified in the written preliminary notice of inadequacy of classroom performance. If the governing board of a school district has received approval to budget for a career ladder program, the governing board may define inadequacy of classroom performance by establishing a single level of performance that is required of all teachers or by establishing more than one required level of performance. If more than one level is established, the same level of performance for minimum adequacy shall be required of all teachers who have completed the same number of years of teaching in the district.

D. Any written statement of charges alleging unprofessional conduct, conduct in violation of the rules or policies of the governing board or inadequacy of classroom performance shall specify instances of behavior and the acts or omissions constituting the charge so that the certificated teacher will be able to prepare a defense. If applicable, it shall state the statutes, rules or written objectives of the governing board that the certificated teacher is alleged to have violated and set forth the facts relevant to each occasion of alleged unprofessional conduct, conduct in violation of the rules or policies of the governing board or inadequacy of classroom performance.

E. The notice shall be in writing and shall be served on the certificated teacher personally or by United States registered or certified mail addressed to the teacher's last known address. A copy of the charges, together with a copy of this section and sections 15-501, 15-538.01, 15-540, 15-541, 15-542, 15-544, 15-545, 15-546 and 15-547, shall be attached to the notice.

F. The certificated teacher who receives notice that there exists cause for dismissal or suspension without pay shall have the right to a hearing if the teacher files a written request with the governing board within ten days of service of notice. The filing of a timely request shall suspend the imposition of a suspension without pay or a dismissal pending completion of the hearing.

§ 15-540 Suspension prior to dismissal of a certificated teacher; written charges; salary

A. Upon a written statement of charges adopted by the governing board charging a certificated teacher of the school district with cause for suspension without pay or dismissal, the governing board may immediately place the teacher on administrative leave of absence and give him notice of the administrative leave of absence.

B. The notice of administrative leave of absence shall be in writing and be served upon the teacher personally or by United States registered mail addressed to the teacher at his last known address.

C. Any teacher who is placed on administrative leave of absence pursuant to this section shall continue to be paid regular salary during the period of administrative leave of absence.

§ 15-541 Hearing on dismissal

A. The governing board shall decide whether to hold a hearing on the dismissal or suspension without pay for a period of time longer than ten days of a certificated teacher as provided in this article. If the governing board decides not to hold a hearing, the governing board shall designate a hearing officer to hold the hearing, hear the evidence, prepare a record and issue a recommendation to the governing board for action. The governing board may provide by policy or vote at its annual organizational meeting that all hearings conducted pursuant to this section shall be conducted before a hearing officer. The hearing officer shall be mutually agreed upon by the parties to the hearing. If the parties cannot mutually agree on a hearing officer, a hearing officer shall be selected by the governing board from a list provided by the department of education or the American arbitration association. The hearing shall be held not less than fifteen nor more than thirty days after the request is filed unless all parties to the hearing mutually agree to a different hearing date, and notice of the time and place of the hearing shall be given to the teacher not less than three days before the date of the hearing. The teacher may request that the hearing be conducted in public or private. At the hearing the teacher may appear in person and by counsel, if desired, and may present any testimony, evidence or statements, either oral or in writing, in the teacher's behalf. The governing board or the hearing officer shall prepare an official record of the hearing, including all testimony recorded manually or by mechanical device, and exhibits. The teacher who is the subject of the hearing may not request that the testimony be transcribed unless the teacher agrees in writing to pay the actual cost of the transcription. Within ten days after a hearing conducted by the governing board, the board shall determine whether there existed good and just cause for the notice of dismissal or suspension and shall render its decision accordingly, either affirming or withdrawing the notice of dismissal or suspension. Within ten days after a hearing conducted by a hearing officer, the hearing officer shall deliver a written recommendation to the governing board that includes findings of fact and conclusions. Parties to the hearing have the right to object to the findings of the hearing officer and present oral and written arguments to the governing board.

B. A hearing held pursuant to this section may not be conducted by any hearing officer having a personal interest which would conflict with the hearing officer's objectivity in the hearing. The governing board has an additional ten days to determine whether good and just cause existed for the notice of dismissal or suspension and shall render its decision accordingly, either affirming or withdrawing the notice of suspension or dismissal. Good and just cause does not include religious or political beliefs or affiliations unless they are in violation of the oath of the teacher.

§ 15-542 Hearing costs; counsel; limitations on evidence; reinstatement

A. The governing board shall pay all expenses of the hearing. The certificated teacher and the governing board shall pay their own attorney and witness fees, except if the governing board does not suspend the teacher without pay or dismiss the teacher, the governing board shall pay all reasonable attorney and witness fees incurred by the teacher.

B. No witness shall be permitted to testify at the hearing except upon oath or affirmation. No testimony shall be given or evidence introduced relating to adequacy of classroom performance which occurred more than four years prior to the date of the service of the notice. Evidence of records regularly kept by the governing board concerning the teacher may be introduced, but no decision relating to the suspension without pay or dismissal of any teacher shall be made based on charges or evidence relating to adequacy of classroom performance occurring more than four years prior to service of the notice. The four-year time limit shall not apply to the introduction of evidence in any area except that relating to adequacy of classroom performance.

C. If a certificated teacher who has been employed by the school district for more than the major portion of three consecutive school years is placed on administrative leave of absence pending the hearing, he shall be reinstated within five days after the governing board renders a decision not to suspend him without pay or dismiss him.

§ 15-543 Appeal from decision of board

A. The decision of the governing board is final unless the certificated teacher files, within thirty days after the date of the decision, an appeal with the superior court in the county within which he was employed.

B. The decision of the governing board may be reviewed by the court in the same manner as the decision made in accordance with section 41-783. The proceeding shall be set for hearing at the earliest possible date and shall take precedence over all other cases, except older matters of the same character and matters to which special precedence is otherwise given by law.

§ 15-544 Limitations on reduction of salaries or personnel

A. A governing board may reduce salaries or eliminate certificated teachers in a school district in order to effectuate economies in the operation of the district or to improve the efficient conduct and administration of the schools of the school district.

B. Notice of a general salary reduction shall be given each certificated teacher affected.

C. The provisions of this section do not apply to reductions in salary from monies from the classroom site fund pursuant to section 15-977.

§ 15-545 Resignation restrictions; unprofessional act; penalty

A certificated teacher shall not resign after signing and returning his contract, unless the resignation is first approved by the governing board. A teacher who resigns contrary to this section shall be deemed to commit an unprofessional act and, upon request of the governing board, shall be subject to such disciplinary action, including suspension or revocation of certificate, as the state board of education deems appropriate.

§ 15-546 Rights in employment not vested

The provisions of this article may be modified, amended or repealed at any time and no person shall be deemed to have acquired any vested right to continuing employment under or by virtue of any provision of this article.

§ 15-547 Preservation of years of employment

The years of employment of a certificated teacher who has been employed by a school district for more than the major portion of three consecutive school years shall be preserved if such teacher transfers from a common school district to a high school district or from a high school district to a common school district if the governing board recognizes the previously established years of employment of the transferred teacher, provided such districts have coterminous boundaries and have a common governing board.

§ 15-549 Compulsory leaves of absence for criminal charges; continued salary

A. If any certificated teacher is charged by criminal complaint, information or indictment with any criminal offense which would be deemed cause for dismissal, the governing board may immediately place the teacher on compulsory leave of absence for a period of time extending for not more than ten days after the date of the entry of the judgment in the proceedings.

B. Any teacher placed upon compulsory leave of absence pursuant to this section shall continue to be paid regular salary during the period of compulsory leave of absence.

§ 15-550 Unprofessional conduct; penalty; definition

A. A person who has been convicted of a dangerous crime against children as defined in section 13-705 or has been convicted of a violation of section 13-1404 or 13-1406 in which the victim was a minor or section 13-1405 or an act committed in another state or territory that if committed in this state would have been a dangerous crime against children or a violation of section 13-1404 or 13-1406 in which the victim was a minor or a violation of section 13-1405 is guilty of unprofessional conduct and the person's certificate shall be revoked permanently immediately on notification of conviction by the clerk of the court or the magistrate.

B. A person who has been convicted of a preparatory offense as prescribed in section 13-1001 of any of the offenses prescribed in subsection A of this section or any crime that requires the person to register as a sex offender is guilty of unprofessional conduct and the person's certificate shall be permanently revoked on notification of the conviction by a court of competent jurisdiction.

C. The state board of education shall permanently prohibit a noncertificated person who is convicted of an offense described in subsection A or B of this section from employment at a school district or charter school.

D. A person who is employed by a school district or who is an applicant for employment with a school district, who is arrested for or charged with any nonappealable offense listed in section 41-1758.03, subsection B and who does not immediately report the arrest or charge to the person's supervisor or potential employer is guilty of unprofessional conduct and the person shall be immediately dismissed from employment with the school district or immediately excluded from potential employment with the school district. This subsection does not entitle a person dismissed pursuant to this subsection to a right to a hearing pursuant to section 15-539, subsection F.

E. A person who is employed by a school district and who is convicted of any nonappealable offense listed in section 41-1758.03, subsection B or is convicted of any nonappealable offense that amounts to unprofessional conduct under this section shall immediately do all of the following:

Surrender any certificates issued by the department of education.
Notify the person's employer or potential employer of the conviction.
Notify the department of public safety of the conviction.
Surrender the person's fingerprint clearance card.

F. For the purposes of this section, "noncertificated person" has the same meaning prescribed in section 15-505.

§ 15-551 Confidentiality of pupil's name; disciplinary hearing; civil penalty

A. The governing board and the state board of education shall keep confidential the name of a pupil involved in a hearing before either board regarding the dismissal or discipline of a school district employee or an action on a certificate. The board shall not disclose the pupil's name without the consent of the pupil's parent or guardian except by order of the superior court. This section does not prevent either board from disclosing the pupil's name to any party to the hearing.

B. The board shall take a pupil's testimony in executive session. The pupil shall be referred to by a fictitious name during any public portions of the hearing. The pupil's name and testimony are not subject to inspection pursuant to title 39, chapter 1, article 2.

C. A person who participates in a hearing described in subsection A shall keep confidential the name of any pupil involved in the hearing. The county attorney may enforce a civil penalty of five hundred dollars against a person who violates this subsection.

D. The state board shall adopt rules for the implementation of this section.

§ 15-552 Alternative teacher development program; report

(Rpld. 7/1/30)

A. The state board of education shall establish an alternative teacher development program for the purpose of accelerating the process of identifying, training and placing highly qualified individuals into low-income schools through the use of teaching intern certification and the identification of a qualified service provider.

B. The department of education shall develop application procedures, selection criteria and minimum performance standards for service providers that wish to participate in the program.

C. The state board of education shall award a matching grant to a service provider that meets all of the requirements of this section. The amount of the matching grant shall be equal to the matching monies raised by the service provider, not to exceed the total monies appropriated to the alternative teacher development program. The service provider that receives the matching grant shall demonstrate that its alternative teacher development program serves public schools in this state and meets all of the following requirements:

Is a nonprofit 501(c)(3) organization that has been providing alternative teacher recruitment and placement in this state for a period of at least ten years.
Serves only public schools that provide instruction to student populations in which a majority of the students are from low-income households.
Requires that individuals seeking to participate in the alternative teacher development program offered by the service provider have attained a baccalaureate degree from an accredited institution.
Maintains a competitive application and selection process for individuals seeking to participate in the alternative teacher development program offered by the service provider.
Requires all individuals who participate in the alternative teacher development program to commit to serve as a teacher in a low-income public school in this state for at least two years.
Provides ongoing support, evaluations and professional development to teachers placed in a classroom through the alternative teacher development program.

D. The service provider selected to participate in the alternative teacher development program shall annually report the following information to the department of education:

The number of teachers placed in low-income schools by the service provider.
The number of students served by teachers placed in low-income schools by the service provider.
Demographic data concerning the aggregate composition of students in classrooms served by teachers placed by the service provider.
A listing of the school districts and schools in which teachers were placed by the service provider.
Classroom-level data collected by the service provider that demonstrates the academic progress of students instructed by teachers participating in the alternative teacher development program.
A descriptive summary of the ongoing support, evaluations and professional development provided to participating teachers.
The performance classifications of teachers participating in the alternative teacher development program pursuant to section 15-537, as reported to the service provider by participating teachers.
A total of all matching monies raised by the service provider.

E. The department of education shall submit an annual report by December 15 of each year concerning the alternative teacher development program to the governor, the president of the senate and the speaker of the house of representatives that includes an evaluation of the effectiveness of the program. The department of education shall provide a copy of the report to the secretary of state.

§ 15-553 School districts and charter schools; classroom-based preparation program providers; teacher certification; rules; candidate eligibility; renewal

A. In addition to any alternative preparation program provider path approved by the state board of education, a school district or charter school may apply to the state board of education for authority to approve the certification of teachers as a classroom-based preparation program provider.

B. The state board of education shall adopt rules, policies and procedures to be administered by the department of education. The rules may not be more restrictive or require more than is prescribed in this subsection. The rules shall facilitate the approval and certification process pursuant to this section and provide for all of the following:

The superintendent of a school district or the principal of a charter school must verify that the applicant for certification has made satisfactory progress and achievement with students. A teacher who is teaching courses or subjects that are tested by the statewide assessment pursuant to section 15-741 may not receive a certificate pursuant to this section until the teacher has been in the classroom for at least two years and student data has been submitted by the school district or charter school confirming that the teacher's students, at the end of the school year, either are performing at grade level or have achieved at least one year of academic growth at a rate equivalent to the state average for the students' associated peer groups.
A school district or charter school must submit a program sequence or training schedule along with any information regarding mentoring and coaching of teacher candidates. The state board of education shall provide for a variety of options in program sequence, content and design and may not require a prescribed program sequence, content or design from the school district or charter school in order to obtain approval from the state board.
A school district or charter school must submit data supporting the efficacy of the school district's or charter school's teacher preparation program. A school district or charter school may contract with a third-party provider to provide the teacher preparation program and may use that program's efficacy data to meet the requirements of this paragraph.
A school district or charter school may adopt professional expectations, professional requirements or student achievement requirements that exceed the expectations and requirements prescribed by this section, including requiring candidates to complete specified coursework or trainings.
In order to receive a classroom-based standard teaching certificate after successfully completing the program, an applicant for certification pursuant to this section must hold at least a bachelor's degree from an accredited public or private postsecondary institution and meet background and fingerprint clearance card requirements pursuant to section 15-534.
An applicant pursuing certification pursuant to this section must demonstrate subject knowledge and professional knowledge through any available option pursuant to section 15-533.
The application for a school district or charter school to be a classroom-based preparation program provider must include all of the following:

(a) The name of the school district or charter school applying.

(b) A list of all staff members responsible for administering the program and the roles and responsibilities of each person.

(d) A description of the program.

C. On the submission of verification from a school district or charter school that the requirements prescribed in this section have been met, the state board shall issue a classroom-based standard teaching certificate to the teacher.

D. Notwithstanding any other law, a school district or charter school may employ and enroll into its classroom-based preparation program any candidate who meets the background and fingerprint clearance card requirements pursuant to section 15-534 and who holds at least a bachelor's degree from an accredited public or private postsecondary institution, except that a school district or charter school that operates a classroom-based preparation program may enroll a candidate who does not currently hold a bachelor's degree from an accredited public or private postsecondary institution into the program if the candidate meets all of the following:

The background and fingerprint clearance card requirements pursuant to section 15-534.
Is currently enrolled in an accredited public or private postsecondary institution bachelor's degree program.
Is not a contracted or permanent full-time teacher or the teacher of record for any classroom of students, except that the candidate may be employed by the school district or charter school.
Does not regularly instruct students without the presence of a full-time teacher, certificated teacher, instructional coach or instructional mentor unless the candidate possesses other means of certification, including an emergency substitute certificate, substitute certificate or emergency teacher certificate.

E. Notwithstanding section 15-502, a school district or charter school shall classify each candidate who is enrolled in a classroom-based preparation program provided by the school district or charter school as a paid employee.

F. If a school district or charter school is approved as a classroom-based preparation program provider pursuant to this section, the approval is valid for six years after the date of approval. To continue as a classroom-based preparation program provider, the school district or charter school must apply for renewal before the expiration of its current approval. If the application for renewal is approved by the state board of education, the renewal is valid for six years after the date of the approval.

§ 15-554 School districts and charter schools; locally based school leadership preparation program providers; certification; rules

A. In addition to any alternative preparation program provider path approved by the state board of education, a school district or charter school may apply to the state board of education for authority to approve the certification of principals, assistant principals, supervisors and other school-level leadership positions as a locally based school leadership preparation program provider.

B. The state board of education shall adopt rules, policies and procedures to be administered by the department of education. The rules may not be more restrictive or require more than is prescribed in this section. The rules shall facilitate the approval and certification process pursuant to this section and provide for all of the following:

The superintendent of a school district or the principal of a charter school must verify that the applicant for certification has made satisfactory progress in the program sequence and model, which may include professional evaluations of the applicant, observations of the applicant, student achievement data and demonstration of competencies, skills and knowledge associated with the relevant school leadership position.
A school district or charter school must submit a program sequence or training schedule along with any information regarding the learning experiences, mentoring and coaching of school leader candidates. The state board of education shall provide for a variety of options in program sequence, content and design and may not require a prescribed program sequence, content or design from the school district or charter school in order to obtain approval from the state board.
A school district or charter school must submit evidence supporting the efficacy of the school district's or charter school's preparation program. A school district or charter school may contract with a third-party provider to provide or assist in the preparation program and may use that program's efficacy evidence to meet the requirements of this paragraph.
A school district or charter school may adopt professional expectations and requirements that exceed the requirements prescribed by this section, including requiring candidates to complete specified coursework or trainings.
An applicant for certification pursuant to this section must hold at least a bachelor's degree from an accredited public or private postsecondary institution and meet background and fingerprint clearance card requirements pursuant to section 15-534.
An applicant pursuing certification pursuant to this section must demonstrate subject knowledge and professional knowledge through any available option pursuant to section 15-533.
The application for a school district or charter school to be a locally based school leadership program provider must include the following:

(a) The name of the school district or charter school applying.

(b) A list of all staff members responsible for administering the program and the roles and responsibilities of each person.

(d) A description of the program.

C. On the submission of verification from a school district or charter school that the requirements prescribed in this section have been met, the state board shall issue a standard principal, assistant principal, supervisor or other school-level leadership position certificate to the individual.

D. Notwithstanding any other law, a school district or charter school may hire and enroll into its preparation program any candidate who meets the requirements of subsection B, paragraph 5 of this section.

E. If a school district or charter school is approved as a locally based school leadership program provider pursuant to this section, the approval is valid for six years after the date of approval. To continue as a locally based school leadership program provider, the school district or charter school must apply for renewal before the expiration of its current approval. If the application for renewal is approved by the state board of education, the renewal is valid for six years after the date of the approval.

Chapter 7 Instruction

Article 1 Curriculum

§ 15-701 Common schools; promotions; requirements; certificate; supervision of eighth grades by superintendent of high school district; high school admissions; academic credit; definition

A. The state board of education shall:

Prescribe a minimum course of study incorporating the academic standards adopted by the state board of education to be taught in the common schools.
Prescribe competency requirements for the promotion of pupils from the eighth grade and competency requirements for the promotion of pupils from the third grade that incorporate the academic standards in at least the areas of reading, writing, mathematics, science and social studies. The competency requirements for the promotion of pupils from the third grade shall include the following:

(a) A requirement that a pupil not be promoted from the third grade if the pupil obtains a score on the reading portion of the statewide assessment that does not demonstrate sufficient reading skills as established by the state board. A pupil may not be retained pursuant to this subdivision if data regarding the pupil's performance on the statewide assessment is not available before the end of the current academic year and may not be retained more than once. A pupil who is not retained due to the unavailability of test data must receive evidence-based intervention and remedial strategies pursuant to subdivision (c) of this paragraph if the third grade assessment data subsequently does not demonstrate sufficient reading skills.

(b) A mechanism to allow a school district governing board or charter school governing body to promote from the third grade a pupil who does not demonstrate sufficient reading skills pursuant to subdivision (a) of this paragraph if the pupil:

(i) Is an English learner or a limited English proficient student as defined in section 15-751 and has had fewer than three years of English language instruction.

(ii) Is in the process of a special education referral or evaluation for placement in special education, has been diagnosed as having a significant reading impairment, including dyslexia, or is a child with a disability as defined in section 15-761 if the pupil's individualized education program team and the pupil's parent or guardian agree that promotion is appropriate based on the pupil's individualized education program.

(iii) Has demonstrated or subsequently demonstrates sufficient reading skills or adequate progress toward sufficient reading skills of the third grade reading standards as evidenced through a collection of reading assessments approved by the state board of education, which includes an alternative standardized reading assessment approved by the state board.

(iv) Receives intervention and remedial services during the summer or a subsequent school year pursuant to subdivision (c) of this paragraph and demonstrates sufficient progress based on guidelines issued pursuant to subsection B, paragraph 7 of this section.

(c) Evidence-based intervention and remedial strategies developed by the state board of education for pupils who are not promoted from the third grade. A school district governing board or charter school governing body shall offer more than one of the intervention and remedial strategies developed by the state board of education. The parent or guardian of a pupil who is not promoted from the third grade and the pupil's teacher and principal may choose the most appropriate intervention and remedial strategies that will be provided to that pupil. The intervention and remedial strategies developed by the state board of education shall include:

(i) A requirement that the pupil be assigned for evidence-based reading instruction by a different teacher who was designated in that teacher's most recent performance evaluation in one of the top two performance classifications.

(ii) Summer school reading instruction.

(iii) In the next academic year, intensive reading instruction that occurs before, during or after the regular school day, or any combination of before, during and after the regular school day.

(iv) Small group and teacher-led evidence-based reading instruction, which may include computer-based or online reading instruction.

(d) A requirement that a school district governing board or charter school governing body that promotes a pupil pursuant to subdivision (b) of this paragraph provide annual reporting to the department of education on or before October 1 that includes information on the total number of pupils subject to the retention provisions of subdivision (a) of this paragraph, the total number of students promoted pursuant to subdivision (b) of this paragraph, the total number of pupils retained in grade three and the interventions administered pursuant to subdivision (c) of this paragraph.

Provide for universal screening of pupils in preschool programs, kindergarten programs and grades one through three that is designed to identify pupils who have reading deficiencies pursuant to section 15-704.
Develop evidence-based intervention and remedial strategies pursuant to paragraph 2, subdivision (c) of this subsection for pupils in kindergarten programs and grades one through three who are identified as having reading deficiencies pursuant to section 15-704.
Distribute guidelines for the school districts to follow in prescribing criteria for the promotion of pupils from grade to grade in the common schools. These guidelines shall include recommended procedures for ensuring that the cultural background of a pupil is taken into consideration when criteria for promotion are being applied.

B. School districts and charter schools shall provide annual written notification to parents of pupils in kindergarten programs and first, second and third grades that a pupil who does not demonstrate sufficient reading skills pursuant to subsection A of this section will not be promoted from the third grade. School districts and charter schools shall identify each pupil who is at risk of reading below grade level in kindergarten and grades one, two and three and shall provide to the parent of that pupil a specific written notification of the reading deficiency within three weeks after identifying the reading deficiency. The notification shall include the following information:

A description of the pupil's specific individual needs.
A description of the current reading services provided to the pupil.
A description of the available supplemental instructional services and supporting programs that are designed to remediate reading deficiencies. Each school district or charter school shall offer more than one evidence-based intervention strategy and more than one remedial strategy developed by the state board of education for pupils with reading deficiencies. The notification shall list the intervention and remedial strategies offered and shall instruct the parent to choose, in consultation with the pupil's teacher, the most appropriate strategies to be provided and implemented for that child.
Parental strategies to assist the pupil to attain reading proficiency.
The frequency with which the school district or charter school will provide timely updates and information to the parent on the pupil's progress toward reading proficiency.
A statement that the pupil will not be promoted from the third grade if the pupil does not demonstrate sufficient reading skills pursuant to subsection A, paragraph 2, subdivision (a) of this section, unless the pupil is exempt from mandatory retention in grade three or the pupil qualifies for an exemption pursuant to subsection A, paragraph 2, subdivision (b) of this section.
A description of the school district or charter school policies on midyear promotion to a higher grade.

C. Pursuant to the guidelines that the state board of education distributes, the governing board of a school district shall:

Prescribe curricula that include the academic standards in the required subject areas pursuant to subsection A, paragraph 1 of this section.
Prescribe criteria for the promotion of pupils from grade to grade in the common schools in the school district. These criteria shall include accomplishment of the academic standards in at least reading, writing, mathematics, science and social studies, as determined by district assessment. Other criteria may include additional measures of academic achievement and attendance.

D. The governing board may prescribe the course of study and competency requirements for promotion that are in addition to or higher than the course of study and competency requirements the state board prescribes.

E. A teacher shall determine whether to promote or retain a pupil in a grade in a common school on the basis of the prescribed criteria. The governing board, if it reviews the decision of a teacher to promote or retain a pupil in a grade in a common school as provided in section 15-342, paragraph 11, shall base its decision on the prescribed criteria.

F. A governing board may provide and issue certificates of promotion to pupils whom it promotes from the eighth grade of a common school. Such certificates shall be signed by the principal or superintendent of schools. If there is no principal or superintendent of schools, the certificates shall be signed by an eighth grade teacher. The certificates shall admit the holders to any high school in this state.

G. Within any high school district or union high school district, the superintendent of the high school district shall supervise the work of the eighth grade of all schools that do not employ a superintendent or principal.

H. A school district shall not deny a pupil who is between the ages of sixteen and twenty-one years admission to a high school because the pupil does not hold an eighth grade certificate. Governing boards shall establish procedures for determining the admissibility of pupils who are under sixteen years of age and who do not hold eighth grade certificates.

I. The state board of education shall adopt rules to allow common school pupils who can demonstrate competency in a particular academic course or subject to obtain academic credit for the course or subject without enrolling in the course or subject.

J. A school district may conduct a ceremony to honor pupils who have been promoted from the eighth grade.

K. For the purposes of this section, "dyslexia" means a condition that:

Is neurological in origin.
Is characterized by difficulties with accurate or fluent word recognition and by poor spelling and decoding abilities, including difficulties that typically result from a deficit in the phonological component of language that is often unexpected in relation to other cognitive abilities and to the provision of effective classroom instruction.
May include secondary consequences such as problems with reading comprehension and reduced reading experience that may impede the growth of vocabulary and background knowledge.

§ 15-701.01 High schools; graduation; requirements; community college or university courses; transfer from other schools; academic credit; report

A. The state board of education shall:

Prescribe a minimum course of study that incorporates the academic standards adopted by the state board for the graduation of pupils from high school.
Prescribe competency requirements for the graduation of pupils from high school incorporating the academic standards in at least the areas of reading, writing, mathematics, science and social studies. The academic standards prescribed by the state board in social studies shall include personal finance, American civics education and a comparative discussion of political ideologies, such as communism and totalitarianism, that conflict with the principles of freedom and democracy that are essential to the founding principles of the United States. The state board may consider establishing a required separate personal finance course for the purpose of the graduation of pupils from high school. The state board shall require at least one-half of a course credit in economics, which shall include financial literacy and personal financial management.
Through the graduating class of 2025, include in the competency requirements for social studies prescribed in paragraph 2 of this subsection a requirement that, in order to graduate from high school or obtain a high school equivalency diploma, a pupil must correctly answer at least sixty of the one hundred questions listed on a test that is identical to the civics portion of the naturalization test used by the United States citizenship and immigration services. Beginning with the graduating class of 2026, the state board shall include in the competency requirements for social studies prescribed in paragraph 2 of this subsection a requirement that, in order to graduate from high school or obtain a high school equivalency diploma, a pupil must correctly answer at least seventy of the one hundred questions listed on a test that is identical to the civics portion of the naturalization test used by the United States citizenship and immigration services. A district school or charter school shall document on the pupil's transcript only a pass or fail designation that the pupil has passed or failed the test required by this paragraph. A pupil in grade seven or eight may take the test described in this paragraph, and if the pupil correctly answers at least seventy of the one hundred questions on the test:

(a) The district school or charter school shall document on the pupil's transcript only a pass or fail designation that the pupil has passed or failed the test required by this paragraph.

(b) The pupil is not required to take the test required by this paragraph again in high school.

Develop and adopt competency tests pursuant to section 15-741. English language learners who are subject to article 3.1 of this chapter are subject to the assessments prescribed in section 15-741.

B. The governing board of a school district shall:

Prescribe curricula that include the academic standards in the required subject areas pursuant to subsection A, paragraph 1 of this section.
Prescribe criteria for the graduation of pupils from the high schools in the school district. These criteria shall include accomplishment of the academic standards in at least reading, writing, mathematics, science and social studies, as determined by district assessment. Other criteria may include additional measures of academic achievement and attendance. Pursuant to the prescribed graduation requirements adopted by the state board of education, the governing board may approve a rigorous computer science course that would fulfill a mathematics course required for graduation from high school. The governing board may approve a rigorous computer science course only if the rigorous computer science course includes significant mathematics content and the governing board determines the high school where the rigorous computer science course is offered has sufficient capacity, infrastructure and qualified staff, including competent teachers of computer science. The school district governing board or charter school governing body may determine the method and manner in which to administer a test that is identical to the civics portion of the naturalization test used by the United States citizenship and immigration services. A pupil who does not obtain a passing score on the test that is identical to the civics portion of the naturalization test may retake the test until the pupil obtains a passing score.

C. The governing board may prescribe the course of study and competency requirements for the graduation of pupils from high school that are in addition to or higher than the course of study and competency requirements that the state board prescribes.

D. The governing board may prescribe competency requirements for the passage of pupils in courses that are required for graduation from high school.

E. A teacher shall determine whether to pass or fail a pupil in a course in high school on the basis of the competency requirements, if any have been prescribed. The governing board, if it reviews the decision of a teacher to pass or fail a pupil in a course in high school as provided in section 15-342, paragraph 11, shall base its decision on the competency requirements, if any have been prescribed.

F. Graduation requirements established by the governing board may be met by a pupil who passes courses in the required or elective subjects at a community college or university, if the course is at a higher level than the course taught in the high school attended by the pupil or, if the course is not taught in the high school, the level of the course is equal to or higher than the level of a high school course. The governing board shall determine whether the subject matter of the community college or university course is appropriate to the specific requirement the pupil intends it to fulfill and whether the level of the community college or university course is less than, equal to or higher than a high school course, and the governing board shall award at least one-half of a Carnegie unit and up to and including one Carnegie unit for each three semester hours of credit that the pupil earns in an appropriate community college or university course. If a pupil is not satisfied with the decision of the governing board regarding the amount of credit granted or the subjects for which credit is granted, the pupil may request that the state board of education review the decision of the governing board, and the state board shall make the final determination of the amount of credit to be given the pupil and for which subjects. The governing board shall not limit the number of credits that is required for high school graduation and that may be met by taking community college or university courses. For the purposes of this subsection:

"Community college" means an educational institution that is operated by a community college district as defined in section 15-1401 or a postsecondary educational institution under the jurisdiction of an Indian tribe recognized by the United States department of the interior.
"University" means a university under the jurisdiction of the Arizona board of regents.

G. A pupil who transfers from a private school shall be provided with a list that indicates those credits that have been accepted and denied by the school district. A pupil may request to take an examination in each particular course in which credit has been denied. The school district shall accept the credit for each particular course in which the pupil takes an examination and receives a passing score on a test designed and evaluated by a teacher in the school district who teaches the subject matter on which the examination is based. In addition to the above requirements, the governing board of a school district may prescribe requirements for the acceptance of the credits of pupils who transfer from a private school.

H. If a pupil who was previously enrolled in a charter school or school district enrolls in a school district in this state, the school district shall accept credits earned by the pupil in courses or instructional programs at the charter school or school district. The governing board of a school district may adopt a policy concerning the application of transfer credits for the purpose of determining whether a credit earned by a pupil who was previously enrolled in a school district or charter school will be assigned as an elective or core credit. A school district or charter school may note the learning outcomes that a student mastered as prescribed in the rules adopted pursuant to section 15-203, subsection A, paragraph 38 to provide a record of the demonstrated competencies and award partial credit.

I. A pupil who transfers credit from a charter school, a school district or Arizona online instruction shall be provided with a list that indicates which credits have been accepted as elective credits and which credits have been accepted as core credits by the school district or charter school. Within ten school days after receiving the list, the pupil may request to take an examination in each particular course in which core credit has been denied. The school district or charter school shall accept the credit as a core credit for each particular course in which the pupil takes an examination and receives a passing score on a test that is aligned to the competency requirements adopted pursuant to this section and that is designed and evaluated by a teacher in the school district or charter school who teaches the subject matter on which the examination is based. If a pupil is enrolled in a school district or charter school and that pupil also participates in Arizona online instruction between May 1 and July 31, the school district or charter school shall not require proof of payment as a condition of the school district or charter school accepting credits earned from the online course provider.

J. The state board of education shall adopt rules to allow high school pupils who can demonstrate competency in a particular academic course or subject to obtain academic credit for the course or subject without enrolling in the course or subject.

K. Pupils who earn a Grand Canyon diploma pursuant to article 6 of this chapter are exempt from the graduation requirements prescribed in this section. Pupils who earn a Grand Canyon diploma are entitled to all the rights and privileges of persons who graduate with a high school diploma issued pursuant to this section, including access to postsecondary scholarships and other forms of student financial aid and access to all forms of postsecondary education. Notwithstanding any other law, a pupil who is eligible for a Grand Canyon diploma may elect to remain in high school through grade twelve and shall not be prevented from enrolling at a high school after the pupil becomes eligible for a Grand Canyon diploma. A pupil who is eligible for a Grand Canyon diploma and who elects not to pursue one of the options prescribed in section 15-792.03 may only be readmitted to that high school or another high school in this state pursuant to policies adopted by the school district of readmission.

L. Each school district and charter school shall report to the department of education all of the following aggregate data, organized by grade level, relating to the test that is identical to the civics portion of the naturalization test used by the United States citizenship and immigration services required by subsection A, paragraph 3 of this section:

The median score.
The percentage of pupils who passed by correctly answering the minimum number of questions required to pass the test pursuant to subsection A, paragraph 3 of this section.
The percentage of pupils who failed by correctly answering fewer than the minimum number of questions required to pass the test pursuant to subsection A, paragraph 3 of this section.
Any other data required by the department relating to the test.

M. A school district or charter school may not include the personally identifiable information of any pupil in the data reported to the department of education under subsection L of this section. The department of education shall make the data publicly available, organized at a minimum by school district or charter school and grade level, on the website that includes the school report cards required by section 15-746.

§ 15-701.02 Instruction on the Holocaust and other genocides

In adopting the course of study and competency requirements pursuant to sections 15-701 and 15-701.01, the state board of education shall include a requirement that students be taught about the Holocaust and other genocides for at least three class periods, or the equivalent, on at least two separate occasions during any of grades seven through twelve.

§ 15-701.03 Health education instruction; mental health instruction

In adopting the course of study and competency requirements pursuant to sections 15-701 and 15-701.01, the state board of education shall require that all health education instruction include mental health instruction. Mental health instruction may be included in a health course or another existing course and shall incorporate the multiple dimensions of health by including mental health and the relationship of physical and mental health to enhance student understanding, social and emotional learning, attitudes and behavior that promote health and well-being. In adopting the mental health instruction requirement, the state board of education shall consult with the following:

Mental health experts, including representatives from the department of health services.
Mental health advocacy organizations that are based in this state.
The department of education.

§ 15-701.04 Guidelines; policies; high schools; foster children; transfer credits; graduation requirements; educational record; definitions

A. The state board of education shall develop guidelines for charter schools and school districts to consider when developing policies regarding the calculation of academic credits, including partial credits, for foster children who transfer schools pursuant to a best interest educational placement determination while the foster child is enrolled in any of grades nine through twelve. The guidelines developed pursuant to this subsection must include alternative methods for a receiving school to calculate and accept academic credits, including partial credits, that were earned by a foster child in the foster child's school of origin.

B. Each school district governing board and charter school governing body shall develop and adopt policies concerning transfer credits for foster children who transfer to the school district or charter school pursuant to a best interest educational placement determination while the foster child is enrolled in any of grades nine through twelve. The policies adopted pursuant to this subsection must specify the manner in which the school district or charter school will:

Calculate full and partial academic credits that were earned by the foster child at the foster child's school of origin.
Accept all academic credits, including partial credits, earned by the foster child in courses or instructional programs at the foster child's school of origin.
Determine whether to accept academic credits, including partial credits, earned by the foster child as core credits or as elective credits. The school district or charter school shall make every possible attempt to accept as core credits all academic credits earned by the foster child and shall consider each learning outcome that the foster child has mastered and each competency requirement that the foster child has demonstrated.
Meet with the foster child not later than ten days after the school district or charter school receives the foster child's educational records from the school of origin pursuant to subsection C of this section to review and update the foster child's graduation plan, including the foster child's participation in credit recovery programs, if necessary. The school district or charter school shall provide a written copy of the graduation plan to the foster child, each parent of the foster child whose parental rights have not been terminated and the foster child's guardian, custodian, caregiver or foster parent.

C. Each school district governing board and charter school governing body shall develop and adopt policies concerning the transfer of educational records pursuant to section 8-530.04 by the school of origin for a foster child who was enrolled in any of grades nine through twelve. The policies adopted pursuant to this subsection must require the school of origin to include in the foster child's educational records both of the following:

All academic credits, including partial credits, earned by the foster child.
If the foster child did not receive partial credit for a course in which the foster child was enrolled, documentation of the competencies achieved by the foster child in the course.

D. A school district or charter school that enrolls a foster child who transfers schools pursuant to a best interest educational placement determination may administer a local competency assessment to award full or partial academic credits for the core competencies identified in the educational records provided by the foster child's school of origin.

E. Notwithstanding sections 15-701.01 and 15-720.02, a charter school governing body or school district governing board may not require a foster child who transfers schools pursuant to a best interest educational placement determination while the foster child is enrolled in grade eleven or twelve to satisfy a course of study or competency requirements to graduate from high school that are in addition to or higher than the minimum course of study and competency requirements prescribed by the state board of education.

F. For the purposes of this section:

"Best interest educational placement determination" means the determination of a child's best interest educational placement pursuant to section 8-530.04.
"Foster child" has the same meaning prescribed in section 8-501.

§ 15-702 High school equivalency diploma; fees; rules

A. Any person who is sixteen years of age or older and who passes an equivalency test adopted by the state board of education shall be awarded an Arizona high school equivalency diploma by the state board of education and the state superintendent of public instruction. The state board of education may establish eligibility requirements for persons wishing to take an equivalency test adopted by the state board of education, except that the minimum age required to take the test may not be older than sixteen nor shall the board require the completion of any high school credits.

B. A person who meets the minimum course of study and competency requirements prescribed by the state board of education for graduation from high school through a combination of high school credits and community college and university credits, which are converted to high school credits in the same manner as provided in section 15-701.01, subsection F by the governing board or the state board of education, shall be awarded an Arizona high school equivalency diploma.

C. The state board of education may establish and collect fees for the issuance and reissuance of the following:

A high school equivalency diploma.
A high school equivalency transcript.

D. The state board of education shall adopt rules for fee waivers for the high school equivalency diploma and high school equivalency transcripts.

§ 15-703 Kindergarten programs and special departments; special teachers

A. The governing board may:

Establish departments of industrial arts and consumer education and homemaking.
Employ special teachers in special subjects.

B. Each common school district or unified school district shall establish a kindergarten program, unless the governing board of such common school district or unified school district files an exemption claim with the department of education. A district is exempt from establishing a kindergarten program if it files with the department of education an exemption claim which states that the establishment of a kindergarten program will interfere with the work of, or maintenance of efficiency in, the grades and that a kindergarten program is not in the best interests of the district. Each school district that establishes a kindergarten program shall offer half-day kindergarten programs that provide academically meaningful instruction in each of the academic standards adopted by the state board of education. A school district that establishes a full-day kindergarten program shall allow each parent of a kindergarten pupil to choose either half-day kindergarten instruction or full-day kindergarten instruction and shall provide the option of academically meaningful half-day kindergarten instruction in every school in the school district that has enough students to fill a half-day kindergarten class at a class size that is approximately equal to the average kindergarten class size for the school district as a whole.

C. For the purpose of maintaining a kindergarten program a common school district or unified school district governing board may lease such buildings as may be necessary as provided by law.

§ 15-704 Reading proficiency; dyslexia screening plan; parental notification; definitions

A. Each school district or charter school that provides instruction in kindergarten programs and grades one through three shall select and administer screening, ongoing diagnostic and classroom-based instructional reading assessments, including a motivational assessment, to monitor student progress. Each school shall use the diagnostic information to plan evidence-based appropriate and effective instruction and intervention.

B. The department of education shall develop a dyslexia screening plan that meets all of the following requirements:

Ensures that within forty-five calendar days after the beginning of each school year or within forty-five calendar days after a student enrollment occurs after the first day of school, every student who is enrolled in a kindergarten program or grade one in a public school in this state is screened for indicators of dyslexia.
Provides guidance for notifications sent by public schools to parents of students who are identified as having indicators of dyslexia based on a screening for indicators.
Is developed collaboratively with the dyslexia specialist for the department designated pursuant to section 15-211, and other experts on dyslexia, including representatives in this state of an international organization on dyslexia.
Ensures that screening for indicators of dyslexia includes the following:

(a) Phonological and phonemic awareness.

(b) Rapid naming skills.

(d) Nonsense word fluency.

(e) Sound symbol recognition.

C. The screening for indicators of dyslexia may be integrated with reading proficiency screenings as prescribed in this section.

D. Each school district or charter school that provides instruction for pupils in kindergarten programs and grades one through three shall conduct a curriculum evaluation and adopt an evidence-based reading curriculum that includes the essential components of reading instruction. All school districts and charter schools that offer instruction in kindergarten programs and grades one through three shall provide ongoing teacher training based on evidence-based reading research. For the purposes of this subsection, "curriculum" includes any curriculum that is used to provide reading instruction to children with disabilities or english language learners.

E. Each school district or charter school that provides instruction in kindergarten programs and grades one through three shall devote reasonable amounts of time to explicit evidence-based instruction and independent reading in grades one through three.

F. A pupil in grade three who does not demonstrate proficiency on the reading standards measured by the statewide assessment administered pursuant to section 15-741 shall be provided core reading instruction and intensive, evidence-based reading instruction as defined by the state board of education until the pupil meets these standards.

G. The governing board of each school district and the governing body of each charter school shall determine the percentage of pupils at each school in grade three who do not demonstrate proficiency on the reading standards prescribed by the state board of education and measured by the statewide assessment administered pursuant to section 15-741. If more than twenty percent of students in grade three at either the individual school level or at the school district level do not demonstrate proficiency on the standards, the governing board or governing body shall conduct a review of its reading program that includes curriculum and professional development in light of current, evidence-based reading research.

H. Based on the review required in subsection G of this section, the governing board or governing body and the school principal of each school that does not demonstrate proficiency on the reading standards, in conjunction with school council members, if applicable, shall develop methods of best practices for teaching reading based on essential components of reading instruction and supported by evidence-based reading research. These methods shall be adopted at a public meeting and shall be implemented the following academic year.

I. Subsections G and H of this section shall be coordinated with efforts to develop and implement an improvement plan if required pursuant to section 15-241.02.

J. For the purposes of this section:

"Essential components of reading instruction" means explicit and systematic instruction in the following:

(a) Phonological awareness, including phonemic awareness.

(b) Phonics encoding and decoding.

(d) Reading fluency as demonstrated by automatic reading of text.

(e) Reading comprehension of written text.

(f) Written and oral expression, including spelling and handwriting.

"Evidence-based reading research" means research that demonstrates either:

(a) A statistically significant effect on improving student outcomes or other relevant outcomes based on either:

(i) Strong evidence from at least one well-designed and well-implemented experimental study.

(ii) Moderate evidence from at least one well-designed and well-implemented quasi-experimental study.

(iii) Promising evidence from at least one well-designed and well-implemented correlational study with statistical controls for selection bias.

(b) A rationale based on high-quality research findings or positive evaluation that an activity, strategy or intervention is likely to improve student outcomes or other relevant outcomes and that includes ongoing efforts to examine the effects of these activities, strategies or interventions.

"Reading" means a complex system of deriving meaning from written text that requires all of the following:

(a) The skills and knowledge to understand how phonemes or speech sounds are connected to written text.

(b) The ability to decode unfamiliar words.

(d) Sufficient background information and vocabulary to foster reading comprehension.

(e) The development of appropriate active strategies to construct meaning from written text.

(f) The development and maintenance of a motivation to read.

§ 15-705 Extracurricular activities; requirements

A. Each governing board after consultation with parents and teachers shall adopt policies and procedures governing requirements for pupils' participation in extracurricular activities for pupils in grade six, if the grade is part of a middle school, and grades seven through twelve. The consultation by the governing board with parents and teachers may be accomplished by holding a public hearing or forming an advisory committee. The requirements shall meet or exceed the minimum requirements prescribed by the state board.

B. The state board of education shall prescribe rules for policies regarding pupils' participation in extracurricular activities including minimum statewide requirements. The minimum statewide requirements:

Shall be appropriate to the grade in which the pupil is enrolled.
Shall be based on the number of courses passed or failed, on grades received or on a combination of these factors.
May incorporate additional factors.
Shall take into consideration the minimum course of study and competency requirements prescribed by the state board pursuant to section 15-701.01.

§ 15-706 Instruction in environmental education; definition

A. If a school district chooses to provide instruction in environmental education, the environmental education program shall:

Be based on current and reliable scientific information.
Include a discussion of economic and social implications.

B. For the purposes of this section "environmental education" means educational processes, programs and activities which are specifically designed to enhance student acquisition of knowledge of scientific and economic principles, concepts and facts as they relate to environmental topics and issues and which are taught in an unbiased, fair and balanced manner.

§ 15-707 College and career readiness program for at-risk students; requirements; annual report; definition

A. A school district or charter school that provides high school instruction may establish a college and career readiness program for at-risk students. A program established pursuant to this section shall meet the following requirements:

Consist of at least nine consecutive months of academic support, including tutoring and remediation, to ensure that participating students meet the academic standards adopted by the state board of education.
Consist of comprehensive instruction on workplace skills as adopted by the state board of education.
Consist of instruction on leadership and civic duty.
Require students who participate in the program to earn credits toward graduation from high school.
Require students who participate in the program to perform volunteer activities or community service.
Require students who participate in the program to continue to participate in the program for twelve months after graduation from high school, during which time the school district or charter school shall provide follow-up assistance that is designed to assist the student's transition to postsecondary education, vocational or job training, military service or employment. A participating school district or charter school may develop a dual enrollment course program in order to meet the requirements of this paragraph.
Be administered through a private entity selected by the department of education.

B. School districts and charter schools that participate in the program shall annually report the following information to the department of education:

The percentage of students who participate in the program and who graduate from high school or obtain a general equivalency diploma on or within twelve months after the scheduled graduation date for that student's classmates.
The percentage of students who participate in the program, who graduate from high school or obtain a general equivalency diploma and who begin participation in postsecondary education, employment, vocational or job training or military service within twelve months after the scheduled graduation date for that student's classmates.
The percentage of students who participate in the program and who are either enrolled full time at a postsecondary education institution, employed full time, enrolled in a full-time vocational or job training program or on active duty in the armed forces of the United States, or any combination of these activities that in totality amounts to full-time activity, within twelve months after the scheduled graduation date for that student's classmates.
The percentage of students who participate in the program and their achievement scores on the statewide assessment adopted by the state board of education prescribed in section 15-741.

C. On or before September 15 of each year, the department of education shall submit a report to the governor, the president of the senate and the speaker of the house of representatives that summarizes the information submitted pursuant to subsection B of this section. The department of education shall provide a copy of the annual report to the secretary of state.

D. For the purposes of this section, "at-risk student" means a pupil in grade eleven or twelve who either:

Is likely to drop out of high school without graduating.
Has documented academic, personal or vocational barriers to success in high school and the workplace including having been subject to discipline, suspension or expulsion pursuant to section 15-843.

§ 15-708 Common school pupils; mathematics proficiency; parental notification

If the statewide assessment results are available before the start of each school year, each school district and charter school shall provide notification no later than the first half of the second quarter of the school year to parents of pupils in grades six through eight who have not demonstrated proficiency in grade-level mathematics based on available local or statewide assessments. The notification shall include the following information:

A description of the pupil's mathematics deficiencies as demonstrated by the statewide assessment.
A description of the current mathematics services provided by the school district or charter school, including supplemental instructional services and supporting programs that are designed to remediate mathematics deficiencies.

§ 15-710 Instruction in state and federal constitutions, American institutions and history of Arizona

All schools shall give instruction in the essentials, sources and history of the Constitutions of the United States and Arizona and instruction in American institutions and ideals and in the history of Arizona, including the history of Native Americans in Arizona. The instruction shall be given in accordance with the state course of study for at least one year of the common school grades and high school grades respectively.

§ 15-710.01 Sandra Day O'Connor civics celebration day; civics instruction requirement

On Sandra Day O'Connor civics celebration day, each public school in this state shall dedicate the majority of the school day to civics education.

§ 15-710.02 9/11 education day; instruction requirement; policies or rules

On 9/11 education day, each public school that provides instruction to students in any of grades seven through twelve shall provide age-appropriate instruction to students in each of grades seven through twelve on the terrorist attacks of September 11, 2001. The state board of education may develop policies or adopt rules for the purposes of carrying out this section.

§ 15-711 Sex education instruction; minimum grade; parental review of curricula; sexual conduct with a minor; review and approval of course of study; public hearings and input

A. School districts and charter schools may not provide sex education instruction before grade five.

B. Before a parent provides written permission for the parent's child to participate in any sex education curricula, the school district or charter school shall make the sex education curricula available for the parent's review online and in person pursuant to section 15-102, subsection A, paragraph 2. The school district or charter school shall notify parents where the sex education curricula are available for review at least two weeks before any instruction is offered pursuant to this section.

C. Each school district or charter school with existing sex education curricula shall include instruction on the laws relating to sexual conduct with a minor for pupils in grades seven, eight, nine, ten, eleven and twelve.

D. Each school district or charter school may develop its own sex education course of study or adopt an existing sex education course of study to meet the requirements of this section.

E. Before a school district or charter school offers sex education instruction, the school district governing board or charter school governing body shall review and approve the sex education course of study that is developed, adopted, revised or updated pursuant to this section. The governing board or governing body:

Shall provide parents with a meaningful opportunity to participate in, review and provide input on any proposed sex education course of study before it is adopted.
May not approve a course of study unless it complies with this section.

F. Before approving any sex education course of study developed, adopted, revised or updated pursuant to this section, the school district governing board or charter school governing body shall do all of the following:

Require that all meetings of committees that are authorized for the purposes of reviewing and selecting the sex education course of study be publicly noticed at least two weeks before occurring and be open to the public pursuant to title 38, chapter 3, article 3.1.
Make any proposed sex education course of study available and accessible for review and public comment for at least sixty days before the governing board or governing body decides whether to approve that course of study.
Conduct at least two public hearings within the sixty-day period before the governing board or governing body decides whether to approve any course of study. Public comment may include written comments, oral comments and comments submitted through email.

G. A school district or charter school is not required to provide sex education instruction to pupils. If a school district or charter school decides to provide sex education instruction after school hours, this section and section 15-102 apply.

H. This section does not prohibit age and grade appropriate classroom instruction regarding child assault awareness and abuse prevention.

§ 15-711.01 Instruction; child assault awareness; abuse prevention

(L21, Ch. 404, sec. 21)

Notwithstanding any other law, age-appropriate and grade-appropriate classroom instruction regarding child assault awareness and abuse prevention is allowed.

§ 15-712 Instruction on alcohol, tobacco, narcotic drugs, marijuana, date rape drugs and other dangerous drugs; chemical abuse prevention programs; definitions

A. Instruction on the nature and harmful effects of alcohol, tobacco, narcotic drugs, marijuana, date rape drugs and other dangerous drugs on the human system and instruction on the laws related to the control of these substances and the nonuse and prevention of use and abuse of alcohol, tobacco, narcotic drugs, marijuana, date rape drugs and other dangerous drugs may be included in the courses of study in common and high schools, with emphasis on grades four through nine. Instruction on the nature and harmful effects of alcohol, tobacco, narcotic drugs, marijuana, date rape drugs and other dangerous drugs on a human fetus may be included in the courses of study in grades six through twelve. The instruction may be integrated into existing health, science, citizenship or similar studies and shall meet the criteria for chemical abuse prevention education programs developed pursuant to subsection C of this section.

B. At the request of a school district, the department of education shall provide technical assistance to school districts that choose to implement programs to prevent chemical abuse.

C. The department of education and the department of health services, in consultation with the committee established pursuant to section 41-617, shall establish an interagency committee to coordinate their assistance to school districts.

D. The state board of education may accept gifts and grants and shall distribute them and monies appropriated for chemical abuse prevention programs to school districts to assist with the costs of programs designed to prevent chemical abuse by pupils in kindergarten programs and grades one through twelve. School districts which have approved chemical abuse prevention policies and procedures as prescribed in section 15-345 are eligible for a maximum of one dollar for each pupil or one thousand dollars, whichever is more. If sufficient monies are not available to meet all requests, the state board shall determine which school districts to fund based on need, availability of other programs or sources of revenue and the likelihood of the school district's proposed program successfully meeting needs identified by the school district. A school district shall include the monies it receives for chemical abuse prevention programs under this section in the special projects section of the budget as provided in section 15-903, subsection F.

E. For the purpose of this section:

"Date rape drug" means a drug prescribed in section 13-3401, paragraph 30, subdivisions (f) through (m).
"Narcotic drug", "marijuana" and "dangerous drug" have the same meaning prescribed in section 13-3401.

§ 15-712.01 Instruction on dating abuse; definitions

A. A school district that provides instruction in grades seven through twelve may incorporate dating abuse information that is age appropriate into the school district's existing health curriculum for pupils in grades seven through twelve that includes the following components:

A definition of dating abuse.
The recognition of dating abuse warning signs.
The characteristics of healthy relationships.

B. On written request to the principal of the school where a child is enrolled, the parent or guardian of a pupil who is under eighteen years of age shall be permitted to review the dating abuse information instructional materials within a reasonable time after submitting the written request.

C. For the purposes of this section:

"Dating abuse" means a pattern of behavior in which one person uses or threatens to use physical, sexual, verbal or emotional abuse to control the person's dating partner.
"Dating partner" means any person who is involved in an intimate association with another person that is primarily characterized by the expectation of affectionate involvement and that includes casual, serious and long-term dating partners.

§ 15-713 Training in use of bows or firearms; instruction materials; certification of instructors; cooperating agencies

A. The Arizona game and fish department may provide training in the safe handling and use of bows or firearms and safe hunting practices, in conjunction with the common schools and high schools of the state when the schools request the training.

B. The Arizona game and fish department may prescribe courses of study, approve instruction materials, certify instructors for training programs conducted by private organizations or public agencies and issue certificates of completion of the required course of study.

C. To carry out the purposes of the training program authorized by this section and section 15-714, the Arizona game and fish department may cooperate with other agencies and private organizations.

§ 15-714 Eligibility for training in use of bows or firearms

A. Training courses may be offered on a voluntary basis pursuant to section 17-245.

B. The courses held for students in the common schools and high schools shall be elective only, and attendance in such classes shall not be considered in computing a school district's student count.

§ 15-714.01 Arizona gun safety program course

A. In addition to the voluntary training in the use of bows and firearms prescribed in sections 15-713 and 15-714, any school district or charter school may offer as an elective course a one semester, one credit course in firearm marksmanship that shall be designated as the Arizona gun safety program course.

B. A pupil shall be deemed to have satisfactorily completed the Arizona gun safety program course by demonstrating that the pupil has the ability to safely discharge a firearm as defined in section 13-3101.

C. The course of instruction prescribed in this section shall be jointly developed by the Arizona game and fish commission, the department of public safety and private firearms organizations and may include materials provided by private youth organizations. At a minimum, the Arizona gun safety program course shall include each of the following:

Instruction on the rules of firearm safety.
Instruction on the basic operation of firearms.
Instruction on the history of firearms and marksmanship.
Instruction on the role of firearms in preserving peace and freedom.
Instruction on the constitutional roots of the right to keep and bear arms.
Instruction on the use of clay targets.
Practice time at a shooting range.
Actual demonstration by the pupil of competence with a firearm as defined in section 13-3101 by safely discharging the firearm at one or more targets.

D. School districts and charter schools shall arrange for adequate use of shooting range time by pupils in the Arizona gun safety program course at any established shooting range.

E. Pupils who satisfactorily complete the Arizona gun safety program course shall receive a certificate of accomplishment.

F. A person who is currently certified as a firearms safety instructor by the Arizona game and fish department, the national rifle association, a federal, state or local law enforcement agency, a branch of the United States military, a federal agency, the reserve officer training corps, the junior reserve officer training corps or the civilian marksmanship program is qualified to teach the Arizona gun safety program course.

G. Nothing in this section shall be construed to limit or expand the liability of any person under other provisions of law.

§ 15-715 Special academic assistance to pupils in kindergarten programs and grades one through three

A. Each common and unified school district shall develop a plan to supplement the regular education program by providing special academic assistance to pupils in kindergarten programs and grades one through three. The purpose of the special academic assistance is to assist pupils in developing the minimum skills necessary for fourth grade work by the end of the third grade. Special academic assistance, at a minimum, shall focus on pupils who, because of innate factors, are not succeeding in the school environment as identified by parents, guardians or school personnel. These pupils may include, but are not limited to, those who do not qualify for special education services, who have measured intelligence quotients of between seventy and eighty-five or who exhibit characteristics of attention deficit disorder or learning patterns attributable to prenatal substance exposure. The plan shall include:

Procedures for use in identifying pupils in need of special academic assistance.
Special services for provision of special academic assistance through the regular program of instruction.
Procedures for involving parents in the program.
Evaluation procedures for use in assessing the progress of the pupils in the program.

B. Each common and unified school district shall implement its program of special academic assistance to pupils in kindergarten programs and grades one through three by the 1986-1987 school year.

C. The teacher of a pupil enrolled in a special academic assistance program shall review the pupil's academic achievement each regular reporting period. Parents shall be notified of the progress of their child in the special academic assistance program by the established reporting method of the school district.

D. The state board of education shall develop and provide the following to all common and unified school districts:

Competency requirements for the promotion of pupils from the third grade as prescribed in section 15-701.
Model plans for special academic assistance programs which include all of the items specified in subsection A of this section.

E. The department of education shall provide technical assistance to school districts in developing and implementing their plan. The assistance shall include assistance with all of the items specified in subsection A of this section.

§ 15-716 Instruction on acquired immune deficiency syndrome; department assistance

A. Each common, high and unified school district may provide instruction to pupils in kindergarten programs and grades one through twelve on acquired immune deficiency syndrome and the human immunodeficiency virus.

B. Each school district may develop its own course of study for each grade. At a minimum, instruction shall:

Be appropriate to the grade level in which it is offered.
Be medically accurate.
Promote abstinence.
Discourage drug abuse.
Dispel myths regarding transmission of the human immunodeficiency virus.

C. At the request of a school district, the department of health services or the department of education shall review instruction materials to determine their medical accuracy.

D. At the request of a school district, the department of education shall provide the following assistance:

A suggested course of study.
Teacher training.
A list of available films and other teaching aids.

E. At the request of a parent, a pupil shall be excused from instruction on the acquired immune deficiency syndrome and the human immunodeficiency virus as provided in subsection A of this section. The school district shall provide a description of the course curriculum to all parents and notify all parents of their ability to withdraw their child from the instruction.

§ 15-717 American history and heritage

A teacher or administrator in any school in this state may read or post in any school building copies or excerpts of the following materials:

The national motto "in God we trust".
The national anthem.
The pledge of allegiance.
The preamble to the constitution of this state.
The declaration of independence.
The mayflower compact.
Writings, speeches, documents and proclamations of the founding fathers and the presidents of the United States.
Published decisions of the United States supreme court.
Acts of the United States Congress.
The state motto "Ditat Deus", which means "God enriches".

§ 15-717.01 Bible influence; elective course; requirements; immunity

A. The state board of education shall include in history or English arts standards, or both, concepts that include:

The history and literature of the old testament era.
The history and literature of the new testament era.

B. The standards adopted pursuant to subsection A of this section shall not require that pupils who do not enroll in the elective course prescribed in this section receive instruction on the historical study of biblical text.

C. A school district or charter school may offer an elective course pertaining to how the bible has influenced western culture for pupils in grades nine through twelve. A school may offer this course as an online course. A school district or charter school may develop a new curriculum or use an existing curriculum that includes teachers' guides and that is currently in use in public schools in this state or in other states. An existing curriculum that is used by a school district or charter school shall meet the standards and guidelines prescribed in this section.

D. Before a school offers a course under this section, a legal review shall be conducted to ensure that the course complies with the first amendment to the United States Constitution.

E. A course offered under this section shall be designed to:

Familiarize pupils with the contents, characters, poetry and narratives that are prerequisites to understanding society and culture, including literature, art, music, mores, oratory and public policy.
Familiarize pupils with the following:

(a) The contents of the old testament and the new testament.

(b) The history recorded by the old testament and the new testament.

(d) The influence of the old testament and the new testament on laws, history, government, literature, art, music, customs, morals, values and culture.

F. A course offered under this section shall follow applicable law and all federal and state guidelines in maintaining religious neutrality and accommodating the diverse religious or nonreligious views, traditions and perspectives of pupils. This section is not intended to violate any provision of the United States Constitution, the Constitution of Arizona or state law or any rules, guidelines or regulations adopted by the United States department of education, the state board of education or the Arizona department of education.

G. A pupil shall not be required to use a specific translation as the sole text of the old testament or the new testament and may use as the basic textbook a different translation of the old testament or the new testament from that chosen by the school district governing board, the charter school governing body or the pupil's teacher.

H. Personnel shall not be assigned to teach a course offered under this section based on any of the following:

A religious or nonreligious test.
A profession of faith or lack of faith.
Prior or current religious affiliation or a lack of religious affiliation.

I. A teacher who instructs a course offered under this section in its appropriate historical context and in good faith shall be immune from civil liability and disciplinary action pursuant to section 15-535.

§ 15-717.02 Prohibited instruction; disciplinary action; legal action; civil penalty

(L21, Ch. 404, sec. 21)

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 use public monies for instruction that presents any form of blame or judgment on the basis of race, ethnicity or sex.

B. 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 allow instruction in or make part of a course the following concepts:

One race, ethnic group or sex is inherently morally or intellectually superior to another race, ethnic group or sex.
An individual, by virtue of the individual's race, ethnicity or sex, is inherently racist, sexist or oppressive, whether consciously or unconsciously.
An individual should be invidiously discriminated against or receive adverse treatment solely or partly because of the individual's race, ethnicity or sex.
An individual's moral character is determined by the individual's race, ethnicity or sex.
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.
An individual should feel discomfort, guilt, anguish or any other form of psychological distress because of the individual's race, ethnicity or sex.
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.

C. An attorney acting on behalf of a public school may request a legal opinion of the attorney general or county attorney as to whether a proposed use of school district resources would violate this section.

D. 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.

E. 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.

F. 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.

G. This section does not preclude any training on sexual harassment or lessons on recognizing and reporting abuse.

§ 15-718 Civics instruction

To help families, civic institutions, local communities, school district governing boards and charter schools prepare students to be civically responsible and knowledgeable adults, the state board of education shall work with the school of civic and economic thought and leadership at Arizona state university, the center for the philosophy of freedom at the university of Arizona and the Sandra Day O'Connor institute to:

Develop civic education standards that school districts and charter schools must include pursuant to section 15-701.01. The civic education standards must include instruction on:

(a) The original intent of the founding documents and principles of the United States as found in source documents.

(b) The civic-minded expectations of an upright and desirable citizenry that recognizes and accepts responsibility for preserving and defending the blessings of liberty inherited from prior generations and secured by the United States constitution.

On or before December 31, 2022, establish and maintain a list of oral history resources to be used along with the civic education standards and social studies standards that provide portraits in patriotism based on first-person accounts of victims of other nations' governing philosophies who can compare those philosophies with those of the United States.

§ 15-718.01 Instruction on cardiopulmonary resuscitation; exemptions; definition

A. On or before July 1, 2019, school districts and charter schools shall provide public school pupils with one or more training sessions in cardiopulmonary resuscitation, through the use of psychomotor skills in an age-appropriate manner, during high school. This training shall be based on the most current national evidence-based emergency cardiovascular care guidelines for cardiopulmonary resuscitation. A school district or charter school may assign homework to satisfy the requirements of this subsection and subsections B and E of this section, if the completion of the homework is verified by a teacher or parent.

B. School district or charter school instruction that results in cardiopulmonary resuscitation certification must be provided by a certified cardiopulmonary resuscitation trainer. This subsection does not require a teacher or administrator who facilitates, provides or oversees the instruction to be an authorized trainer of cardiopulmonary resuscitation if the instruction does not result in cardiopulmonary resuscitation certification.

C. The instruction provided under subsection A of this section must include the hands-on practicing of cardiopulmonary resuscitation, except for students who are enrolled in an online school as defined in section 15-808.

D. A pupil shall be excused from the instruction on cardiopulmonary resuscitation at the request of either:

The pupil's parent.
A pupil who provides written documentation that the pupil has previously received training in or is currently certified in cardiopulmonary resuscitation.
If the pupil is a child with a disability as defined in section 15-731, the pupil's individualized education program team if the individualized education program team makes a determination to excuse the pupil from the instruction.

E. A school district or charter school may accept from any person, public entity or other legal entity in-kind donations of materials, equipment or services that may be used in the instruction on cardiopulmonary resuscitation.

F. A school district or charter school may use any of the following persons to provide instruction and training pursuant to this section:

Emergency medical technicians.
Paramedics.
Fire department personnel.
Police officers.
Representatives of the American heart association.
Representatives of the American red cross.
Teachers.
Other school employees.
Other similarly qualified persons.

G. For the purposes of this section, "psychomotor skills" means sequences of physical actions that are practiced in a manner that supports cognitive learning.

§ 15-719 Character education program instruction; fund

A. Each common, high and unified school district and charter school may provide instruction to kindergarten programs through the twelfth grade on character development.

B. Each district may develop its own course of study for each grade. At a minimum, the character education program must include:

Instruction in the definition and application of at least six of the following character traits: truthfulness, responsibility, compassion, diligence, sincerity, trustworthiness, respect, attentiveness, obedience, orderliness, forgiveness, virtue, fairness, caring, citizenship and integrity.
The use of activities, discussions and visual media and literacy presentations to illustrate and reinforce the application of the character traits.
Presentations by teachers or mentors who demonstrate the character traits.

C. At the request of the school district or charter school, the department of education may certify that the school district or charter school has a character development instruction program that meets all of the requirements in subsection B of this section.

D. Parents may elect for their child not to participate in the program.

E. The school district or charter school may accept donations or charge fees for the program if the program is not offered during regular school hours.

F. A character education special plate fund is established consisting of monies received pursuant to section 28-2421. The department of education shall administer the fund. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. Monies from the fund shall be annually distributed by the department by July 1.

G. The character education and development division at the department of education shall allocate monies through at least two but no more than four private character education foundations that are incorporated nonprofit corporations in this state and that are qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The director of the character education and development division at the department of education shall select private character education foundations that provide character education programs that demonstrate proven and effective research based curriculum and training to receive monies from the character education special plate fund.

H. On notice from the department of education, 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 fund.

I. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 15-720 Noncurriculum related clubs for grades seven and eight; definitions

A. It is unlawful for any public school that offers instruction in grades seven and eight to deny equal access to pupils, to deny a fair opportunity to pupils or to discriminate against pupils who wish to conduct a meeting within a limited open forum on the basis of religious content, political content, philosophical content or other content of speech at these meetings.

B. A public school that offers instruction in grades seven and eight shall be deemed to offer a fair opportunity to pupils who wish to conduct a meeting within a limited open forum pursuant to this section if the school policy on noncurriculum group meetings conforms to all of the following:

The meetings are voluntary and initiated by pupils.
The meetings are not sponsored by the school, the school district, the federal government, this state, any of this state’s political subdivisions or any officer or employee of the school, the school district, the federal government, this state or any of this state’s political subdivisions.
Employees or officers of the school, the school district, the federal government, this state or any of this state’s political subdivisions may be present at religious meetings only as nonparticipants.
The meetings do not materially and substantially interfere with the orderly conduct of the educational activities of the school.
Persons who are not officials or employees of the school or the school district shall not direct, conduct, control or regularly attend the meetings.

C. This section shall not be construed to authorize this state or any of its political subdivisions to engage in any of the following:

Influence the form or the content of any prayer or other religious activity.
Require any person to participate in prayer or any other religious activity.
Spend public monies on noncurriculum group meetings other than the incidental costs of providing methods to announce the time and location of a noncurriculum group’s meeting to seventh and eighth grade pupils and the incidental costs of providing the facilities to conduct the meetings.
Compel any officer or employee of the school or the school district to attend a noncurriculum group meeting if the content of the speech at the meeting is contrary to the beliefs of the officer or employee.
Allow meetings that are unlawful to take place on school property.
Limit the application of this section to groups of a minimum or maximum number of pupils.
Violate the constitutional rights of any person.

D. This section shall not be construed to limit the authority of the school, the school district or the officers or employees of the school or the school district to:

Maintain order and discipline on the school premises.
Protect the safety of pupils and faculty.
Allow a school officer or employee or a school district officer or employee to be present at noncurriculum group meetings.
Ensure that the attendance of pupils at noncurriculum group meetings is voluntary.

E. As used in this section:

"Limited open forum" means an offering or opportunity provided by a school that provides instruction in grades seven and eight for one or more noncurriculum related groups of pupils to meet on the premises of the school during lunch periods, before the commencement of the day’s regularly scheduled courses or after the conclusion of the day’s regularly scheduled courses.
"Noncurriculum" means that the group’s activities do not substantially enhance, extend or reinforce the subject matter of an academic course that is currently offered at the school.
"Pupil" means a public school student enrolled in the seventh or eighth grade.

§ 15-720.02 Instruction on personal finance in high schools

A. A school district governing board or charter school may prescribe a separate personal finance course for the graduation of pupils from high school or incorporate personal finance instruction into an existing course or existing curricula for the graduation of pupils from high school, that is in addition to or higher than the course of study and competency requirements that the state board of education prescribes for the graduation of pupils.

B. If a personal finance course is prescribed by a school district governing board or charter school or if personal finance instruction is incorporated into an existing course or existing curricula, the course or incorporated instruction shall include the following:

Explanations on how education, career choices and family obligations affect future income.
Analyses of how advertising influences consumer choices.
The determination of short-term and long-term financial goals and plans, including income, spending, saving and investing.
Comparisons of the advantages and disadvantages of using various forms of credit and the determining factors of credit history.
Explanations of the risk, return and liquidity of short-term and long-term saving and investment choices.
Identification of investment options available to individuals and households.

C. A school district governing board or charter school may develop its own curriculum on personal finance or may use a curriculum on personal finance that is currently used by other public schools in this state or by public schools in other states. A school district governing board or charter school may use curriculum on personal finance developed by or in conjunction with an organization with expertise in providing instruction to high school pupils on personal finance skills.

Article 2 Courses of Study and Textbooks

§ 15-721 Common schools; course of study; textbooks; approval; selection; library books and materials; definition

A. The governing board shall approve for common schools the course of study, the basic textbook for each course and all units recommended for credit under each general subject title before implementing the course.

B. If any course does not include a basic textbook, the governing board shall approve all supplemental books used in the course before approving the course.

C. If any course includes a basic textbook and uses supplemental books, the governing board may approve all supplemental books and teaching aids, including instructional computer software, that are used in the course before approving the course.

D. If the course includes a basic textbook and uses supplemental books that have not been approved by the governing board at the time of approval of the course, a teacher may use the supplemental books at any time during the school year. Use of the supplemental books shall be brought to the attention of the governing board during the school year in which they are added for ratification.

E. Notwithstanding any other law, subsections B and C of this section do not apply to supplemental books used in courses or programs instituted pursuant to article 4 of this chapter.

F. The governing board shall:

Enforce the course of study and select all textbooks used in the common schools and purchase the textbooks from the publishers. The governing board may budget and spend district school monies for teaching aids, including instructional computer software. For courses that do not require that each student have a textbook other than for classroom instruction, the school district need only purchase one textbook for each student in the largest group that would be receiving classroom instruction at any one time.
Require that all meetings of committees authorized for the purposes of textbook review and selection be open to the public as prescribed in title 38, chapter 3, article 3.1.
Make available at the school district office for review by the public, for a period of sixty days prior to formal selection of textbooks, a copy of each textbook that is being considered for selection.
Make available on the school district's website for review by the public a list of all books and materials purchased after January 1, 2023 for any of the district's school libraries for a period of at least sixty days after the purchase. Each school operated by the school district shall make available on the school's website for review by the public a list of all books and materials purchased after January 1, 2023 for the school library for a period of at least sixty days after the purchase. This paragraph does not apply to the purchase of a book or material that is intended to replace a lost or damaged book or material.
Ensure that each common school that is operated by the school district notifies the parents of each pupil enrolled in the school of the opening and closing dates of the public review required under paragraph 4 of this subsection within seven school days before the opening date.

G. The following are exempt from the requirements of subsection F, paragraphs 4 and 5 of this section:

Schools without a full-time library media specialist or an equivalent position.
School district libraries that have agreements with county free library districts, municipal libraries or other entities pursuant to section 15-362, subsection D.

H. For the purposes of this section, "textbook" means printed instructional materials or digital content, or both, and related printed or nonprinted instructional materials, that are written and published primarily for use in school instruction and that are required by a state educational agency or a local education agency for use by pupils in the classroom, including materials that require the availability of electronic equipment in order to be used as a learning resource.

§ 15-722 High schools; course of study; textbooks; approval; library books and materials; definition

A. The governing board shall approve for high schools the course of study and all units that are recommended for credit under each general subject title before implementing the course.

B. The governing board shall approve for high schools the basic textbook for each course and may purchase the textbooks from the publishers if approved by the governing board. Before approving any basic textbook for high schools, the governing board shall do all of the following:

Provide information on the school district's website, if the school district maintains a website, on the basic textbooks that are proposed for approval.
Require that all meetings of committees authorized for the purposes of textbook review and selection be open to the public pursuant to title 38, chapter 3, article 3.1.
Provide an opportunity for public comment for at least sixty days. Public comment may include written comments, oral comments and comments submitted through email.
Make available at the school district office for review by the public, for a period of at least sixty days before approving the textbooks, a copy of each textbook that is being considered for approval.
Make available on the school district's website for review by the public a list of all books and materials purchased after January 1, 2023 for any of the district's school libraries for a period of at least sixty days after the purchase. Each school operated by the school district shall make available on the school's website for review by the public a list of all books and materials purchased after January 1, 2023 for the school library for a period of at least sixty days after the purchase. This paragraph does not apply to the purchase of a book or material that is intended to replace a lost or damaged book or material.
Ensure that each high school that is operated by the school district notifies the parents of each pupil enrolled in the school of the opening and closing dates of the public review required under paragraph 5 of this subsection within seven school days before the opening date.

C. The following are exempt from the requirements of subsection B, paragraphs 5 and 6 of this section:

Schools without a full-time library media specialist or an equivalent position.
School district libraries that have agreements with county free library districts, municipal libraries or other entities pursuant to section 15-362, subsection D.

D. If any course does not include a basic textbook, the governing board shall approve all supplemental books that are used in the course before usage.

E. If any course includes a basic textbook and uses supplemental books or instructional computer software, the governing board may approve all supplemental books and instructional computer software that are used in the course before usage.

F. If the course includes a basic textbook and uses supplemental books that have not been approved by the governing board at the time of approval of the course, a teacher may use the supplemental books at any time during the school year. Use of the supplemental books shall be brought to the attention of the governing board during the school year in which they are added for ratification.

G. The governing board shall prescribe up to five textbooks for each course, and the teacher, with the consent of the governing board, may use any one of the prescribed textbooks for the purposes of the teacher's course.

§ 15-723 Furnishing of free textbooks; subject matter materials and supplementary books

A. Free textbooks, subject matter materials and supplementary books shall be furnished in common schools and all state welfare institutions maintaining educational facilities, subject to section 15-727.

B. Governing boards shall furnish free required textbooks and related printed subject matter materials in the high schools, subject to section 15-727.

§ 15-724 Purchase of high school textbooks, subject matter materials and supplementary books; budget; rental

A. The governing board may include in its proposed school district budget finances required for the purchase of textbooks, subject matter materials and supplementary books for the use of registered high school pupils.

B. The governing board may charge a reasonable rental fee for the use of nonrequired textbooks, nonrelated subject matter materials and supplementary books by registered high school pupils.

§ 15-726 Purchase of textbooks and instructional computer software by schools having four or fewer teachers; welfare institutions

A. In all schools having four or fewer teachers, the county school superintendent may have advisory authority to assist the governing board in the selection and ordering of textbooks and instructional computer software pursuant to this title.

B. State welfare institutions maintaining educational facilities and the various accommodation schools shall purchase textbooks and instructional computer software by the same procedures as provided for the common schools.

C. Welfare institutions shall purchase textbooks and instructional computer software with their own institutional funds, and the textbooks and instructional computer software required for the accommodation schools shall be purchased by the county school superintendents from the county school reserve funds of the various counties.

§ 15-727 Care and issue of textbooks, subject matter materials, supplementary books and instructional computer software

All textbooks, subject matter materials, supplementary books and instructional computer software in the possession of the school districts and those textbooks, subject matter materials, supplementary books and instructional computer software purchased by school districts as provided in this title are and remain the property of the school districts. The school districts shall hold pupils using the textbooks, subject matter materials, supplementary books and instructional computer software responsible for damage or loss of the textbooks, subject matter materials, supplementary books and instructional computer software. If a pupil for any reason requires a second copy of a textbook, subject matter materials or a supplementary book, the pupil shall reimburse the school district for the cost of the textbook, subject matter materials or supplementary book.

§ 15-728 Purchase of books by pupils or parent

A pupil or parent may purchase from the governing board such books as necessary for high school pupils at the price the governing board pays for the books.

§ 15-729 Use of monies received for lost or damaged textbooks, subject matter materials, supplementary books or instructional computer software

A school district may hold and use all monies obtained for lost or damaged school textbooks, subject matter materials, supplementary books or instructional computer software to repair or replace textbooks, subject matter materials, supplementary books or instructional computer software which are lost or damaged. A school district shall use these monies in addition to the monies budgeted for purchase of new textbooks, subject matter materials, supplementary books or instructional computer software.

§ 15-730 Access to instructional material by parents and guardians

On written request, school personnel designated by the governing board shall permit parents or guardians access to instructional materials currently used by or being considered for use by the school district by making available at least one copy of the instructional material for review by the parents or guardians. Parents or guardians may take printed textbooks, printed supplementary books and printed subject matter materials from the school district premises for a period of not more than forty-eight hours. Parents or guardians may review all other materials, including films, only on the school district premises.

Article 2.1 Accessibility to Textbooks and Instructional Material

§ 15-731 Definitions

In this article, unless the context otherwise requires:

"Accessible electronic file" means, until a national file format is adopted by the United States department of education, a digital file in a mutually agreed on by the publisher and the local educational agency electronic file format that has been prepared using a markup language that maintains the structural integrity of the information and can be processed by conversion software. If a national file format is adopted by the United States department of education, accessible electronic file means an electronic file conforming to the specifications of the national file format adopted by the United States department of education.
" Authorized entity" means an authorized entity, as defined by 17 United States Code section 121, that commonly provides alternative format school materials that are accessible by schools in this state and that has the vendor’s authorization to make alternative formats.
"Child with a disability" means a pupil who is subject to an individualized education program pursuant to the individuals with disabilities education act (20 United States Code sections 1400 through 1415) or a pupil with a section 504 plan, and whose section 504 accommodation plan requires the use of instructional materials in a specialized format.
"Individualized education program" has the same meaning prescribed in 20 United States Code sections 1401 and 1412.
"Nonprinted instructional materials" means nonprinted textbooks or digital content, or both, and related core materials, including those that require the availability of electronic equipment in order to be used as a learning resource, that are written and published primarily for use in elementary school and secondary school instruction and that are required by a state educational agency or a local educational agency for use by pupils in the classroom. These materials shall be available to the extent technologically available and may include software programs and internet based materials.
"Printed instructional materials" means textbooks or digital content, or both, and related printed core materials that are written and published primarily for use in elementary school and secondary school instruction and that are required by a state educational agency or a local educational agency for use by pupils in the classroom.
"Section 504 plan" means a written statement developed for a pupil with a disability that includes the provision of regular or special education and related aids and services, including assistive technology, that is designed to meet individual educational needs in accordance with 34 Code of Federal Regulations part 104.
"Structural integrity" means the structure of all parts of the printed instructional material is kept intact to the extent feasible and as mutually agreed on by the publisher and the local educational agency. If a national file format is adopted by the United States department of education, the national file format’s technical specifications for structural integrity are required in the accessible electronic file.
"Vendor" means a person or entity that offers printed or nonprinted instructional materials for commercial sale to a school district and other public schools.

§ 15-732 Powers and duties; state board of education; governing boards

A. The state board of education shall adopt rules on or before August 1, 2005 that require all school districts and other public schools to purchase adopted printed and nonprinted instructional materials for which accessible electronic files are available or, in the case of nonprinted instructional materials delivered on line, that comply with subsection B of this section. The rules shall establish procedures and timelines to ensure that accessible materials are distributed to a child with a disability at the same time that printed and nonprinted instructional materials are distributed to other students. The rules shall require the vendor to submit the accessible electronic files to one or more authorized entities, for conversion by such authorized entities into accessible formats for use by a child with a disability. The rules shall prohibit unauthorized copying, modification and distribution of the accessible electronic files, including distribution of unencrypted or reproducible accessible electronic files to other than authorized entities. This section applies only to newly adopted printed and nonprinted instructional materials adopted after the 2005-2006 school year and with an original copyright date of 2004 or later.

B. On-line nonprinted instructional materials shall be deemed compliant for purposes of subsection A of this section if they meet or exceed standards for internet accessibility, as set forth in section 508 of the rehabilitation act of 1973, as amended by 29 United States Code section 794d, and regulations implementing that act as set forth in part 1194 of title 36 of the Code of Federal Regulations.

C. Printed and on-line nonprinted instructional materials are exempt from this article if providing an accessible electronic file would do any of the following:

Fundamentally alter the nature of the instructional activity.
Result in undue financial and administrative burdens on any state agency, school district or school.
Cause such resources not to meet state content standards, adoption criteria or other applicable specifications.

D. The governing board of each school district or the governing body of another public school that solicits bids pursuant to this section shall provide written notification of the requirements of this article and related and subsequent rules to vendors before soliciting bids for printed and nonprinted instructional materials.

E. This section does not permit reproduction, modification or distribution of accessible electronic files or of printed or nonprinted instructional materials without the permission of the copyright holder, and does not require vendors or copyright holders to provide copies or authorize uses of the electronic files or instructional materials without compensation, except as provided by 17 United States Code section 121. School districts and other public schools shall certify that no reproduction or modification shall occur without the express authorization of the copyright holder while materials are in the custody of the school district or other public school.

F. Nothing in this section reduces the obligation of the state board of education and the governing board of a school district or the governing body of another public school to provide for the instruction of visually impaired pupils in the use of braille or to provide braille textbooks as prescribed in section 15-214.

G. If a national file format is adopted by the United States department of education, nothing in this section requires publishers to produce accessible electronic files that are inconsistent with or more stringent than the specifications of the nationally adopted file format.

H. Nothing in this section shall be construed to apply to a private school.

Article 3 Assessment and Accountability

§ 15-741 Assessment of pupils; definition

A. The state board of education shall:

Adopt rules for the purposes of this article pursuant to title 41, chapter 6.
Adopt and implement a statewide assessment to measure pupil achievement of the state board-adopted academic standards in reading, writing and mathematics in at least four grades designated by the state board. The state board shall determine the manner of implementation. The state board may administer assessments of the academic standards in social studies and science, except that a pupil shall not be required to meet or exceed the social studies or science standards measured by the statewide assessment.
Ensure that the tests prescribed in this section are uniform throughout this state.
Ensure that the tests prescribed in this section are able to be scored in an objective manner and are not intended to advocate any sectarian, partisan or denominational viewpoint.
Ensure that the tests prescribed in this article collect only types of pupil nontest data that are approved by the state board at a public meeting and published on the website of the state board pursuant to paragraph 7 of this subsection.
Include within its budget all costs pertaining to the tests prescribed in this article. If sufficient monies are appropriated, the state board may provide achievement test services to school districts that request assistance in testing pupils in grades additional to those required by this section.
Survey teachers, principals and superintendents on achievement-related nontest indicators, including information on graduation rates by ethnicity and dropout rates by ethnicity for each grade level. Before the survey, the state board shall approve at a public meeting the nontest indicators on which data will be collected and shall post in a prominent position on the home page of the state board's website a link to the nontest indicators entitled "What nontest data does the state of Arizona collect about Arizona pupils?". The linked webpage shall state the types of data collected, the reasons for the collection of the data and the entities with which the data is shared. In conducting the survey and collecting data, the state board shall not violate the provisions of the family educational rights and privacy act (P.L. 93-380), as amended, or disclose personally identifiable information.
Establish a fair and consistent method and standard by which test scores from schools in a district may be evaluated taking into consideration demographic data. The state board shall establish intervention strategies to assist schools with scores below the acceptable standard. The state board shall annually review district and school scores and shall offer assistance to school districts in analyzing data and implementing intervention strategies. The state board shall use the adopted test and methods of data evaluation for a period of at least ten years.
Participate in other assessments that provide national comparisons as needed.
Require in the contract for the statewide assessment pursuant to this section that test scores and assessment data from the third grade reading portion of the statewide assessment adopted pursuant to this section be received by local education agencies on or before May 15 of each academic year and that the scores and assessment data from all other portions of the statewide assessment adopted pursuant to this section be received by local education agencies on or before May 25 of each academic year. The state board shall impose penalties on the contractor for scores received after these dates. If the state board alters the statewide assessment testing window for any reason, the state board may adjust the dates by which local education agencies are required to receive the scores and assessment data proportionately. If the state board adjusts the dates by which local education agencies are required to receive the scores and assessment data, the state board may not impose penalties on the contractor unless the scores and assessment data are received after the adjusted dates.

B. The achievement tests adopted by the state board as provided in subsection A of this section shall be given at least annually. Nontest indicator data and other information shall be collected at the same time as the collection of achievement test data.

C. Local school district governing boards shall:

Administer the tests prescribed in subsection A of this section.
Survey teachers, principals and superintendents on achievement-related nontest indicator data as required by the state board, including information related to district graduation and dropout rates. In conducting the survey and collecting data, the governing board shall not violate the provisions of the family educational rights and privacy act (P.L. 93-380), as amended, or disclose personally identifiable information.

D. Any additional assessments for high school pupils that are adopted by the state board after November 24, 2009 shall be designed to measure college and career readiness of pupils.

E. If a high school pupil who is enrolled in a school district or charter school participates in a nationally recognized assessment that is both adopted by the state board of education pursuant to subsection A of this section and administered by a person other than the school district or charter school, the pupil or pupil's parent or guardian may submit the pupil's official score report for the assessment to the school district or charter school. On receipt of an official score report pursuant to this subsection, the school district or charter school shall do all of the following:

Record the score in the pupil's file.
Report the score to the state board of education and the department of education.
If the pupil or pupil's parent or guardian submits an official score report pursuant to this subsection to the school district or charter school before the date on which the school administers the tests prescribed in subsection A of this section, allow the pupil to opt out of participation in the assessment that is administered by the school district or charter school. If a pupil opts out of an assessment pursuant to this paragraph, the school district or charter school shall use the data from the pupil's official score report for the pupil's achievement test data for the purposes of this section. This paragraph does not require a school district or charter school to allow a pupil to opt out of the collection of nontest indicator data or other information that is collected about pupils who participate in the assessment that is administered by the school district or charter school pursuant to this section.

F. A test for penmanship shall not be required pursuant to this article.

G. If a local education agency requests a raw data file of assessment data for the pupils tested at the local education agency, the department of education shall fulfill the request in a format that is usable for assessment diagnostics within thirty days after the request. The local education agency shall follow all applicable student data privacy laws and may not publicly disclose individual student achievement results.

H. A school district or charter school may administer the statewide assessment in the form of a written test if any of the following applies:

A written test is required pursuant to an individualized education program or a section 504 plan as defined in section 15-731.
To accommodate special circumstances.
For religious purposes.
On request by a pupil's parent or guardian.

I. For the purposes of this section, "nationally recognized" has the same meaning prescribed in section 15-741.02.

§ 15-741.01 Goals for excellence

A. Based on the data reported on the report cards as prescribed in this article, the state board shall adopt specific state level objectives for each of the following goal areas:

Achievement levels of pupils at the end of grade three, grade eight and grade twelve.
Dropout and high school graduation rates.
Postsecondary employment and college enrollment rate.

B. Local district governing boards shall establish specific district level objectives and shall prescribe a method for schools in the district to establish school level objectives for the goal areas in subsection A, as prescribed by the state board.

C. The state board shall publish in the appropriate report cards the objectives written by the state, the districts and the schools, and the state board, districts and schools shall review and revise, if needed, their own objectives annually.

§ 15-741.02 Menu of achievement assessments; requirements; rules; definition

A. The state board of education shall adopt a menu of achievement assessments to measure pupil achievement of the state academic standards. Beginning in the 2018-2019 school year, each local education agency that offers instruction in grades nine through twelve may select from that menu an achievement assessment to administer to the pupils in that local education agency in grades designated by the state board instead of the statewide assessment to measure pupil achievement adopted by the state board pursuant to section 15-741. No later than the 2023-2024 school year, each local education agency that offers instruction in grades three through eight may select from that menu an achievement assessment to administer to the pupils in that local education agency instead of the statewide assessment to measure pupil achievement adopted by the state board pursuant to section 15-741. The department of education shall provide adequate staff support for the state board to comply with this section.

B. An achievement assessment in use by a local education agency that is not on the menu of assessments by March 1, 2018 may be added to the menu at the request of the local education agency and shall be approved by the state board of education if the assessment is nationally recognized, a qualifying college credit examination pursuant to section 15-249.06 or an assessment adopted pursuant to section 15-792.03. The state board may approve any other assessment if the assessment meets the requirements of subsection E of this section. The state board shall evaluate assessments that are not on the menu pursuant to this section annually and shall notify local education agencies of the results on or before May 1 of each year.

C. A local education agency that selects an achievement assessment pursuant to this section meets the requirements prescribed in section 15-741. The local education agency shall include the name of the assessment it administers in the school report card required in section 15-746 and administer the assessment for a minimum period of time prescribed by the state board of education.

D. The state board of education shall adopt policies, rules and procedures to carry out this section. Any policy, rule or procedure adopted pursuant to this subsection may not require a local education agency to receive additional approval from the state board or the department of education to select an assessment from the menu of assessments. A local education agency that adopts an achievement assessment pursuant to this section shall provide the necessary reasonable accommodations for a student who is an English language learner and the necessary accommodations and modifications for a student as required by the student's individualized education program team.

E. The state board of education shall require that the provider of an achievement assessment that is proposed for the menu of achievement assessments do all of the following:

Provide evidence that the assessment is a high quality assessment.
Demonstrate that the assessment meets or exceeds the level of rigor of the state board's adopted academic standards.
Demonstrate that the assessment scores can be scaled for state accountability programs including establishing comparable student performance levels for achievement profiles and letter grade classifications issued pursuant to section 15-241.
Submit an evaluation from a third party approved by the state board that shows the assessment meets the requirements prescribed in paragraphs 1, 2 and 3 of this subsection.
Provide a copy of assessment scores to the department of education when scores are provided to the partnering local education agency.

F. For the purposes of this section, "nationally recognized" means accepted by universities for the purposes of awarding college credit or admissions.

§ 15-741.03 Statewide assessment; contracts; JLBC review

Notwithstanding any other law, the department of education may not renew any current contract for any portion of the statewide assessment adopted pursuant to section 15-741 or reestablish a new contract for any portion of the statewide assessment adopted pursuant to section 15-741 without a review by the joint legislative budget committee.

§ 15-742 Contract for purchase of tests

A. The state board of education shall enter into contracts with contractors for the purchase of the tests adopted by the state board pursuant to sections 15-203 and 15-741. Notwithstanding section 41-2546, the state board may enter into contracts for the purchase of nationally standardized norm-referenced tests pursuant to this section for a duration of up to ten years. The contracts may also provide for the distribution of the tests to the school districts and the scoring of the tests.

B. Contractors shall give a cash or corporate surety bond payable to this state and approved by the state board indemnifying the state in the test purchases in an amount not less than five hundred nor more than ten thousand dollars as may be determined by the state board. The contractor shall faithfully comply with the conditions of the contract and shall furnish to the state the tests as provided in the contract at prices not exceeding the lowest prices then granted to any buyer. If there is a decrease in the prices given to a person purchasing such tests from the contractor, the state shall have the benefit of the decrease in price.

C. The contractor shall file with the state board a sworn statement stating the lowest prices for which the contractor's series of tests is sold anywhere in the United States.

D. Any contract entered into pursuant to this section shall require that test scores and assessment data from the third grade reading portion of the statewide assessment adopted pursuant to section 15-741 be received by local education agencies on or before May 15 of each academic year and the scores and assessment data from all other portions of the statewide assessment adopted pursuant to section 15-741 be received by local education agencies on or before May 25 of each academic year.

E. If a contractor violates a condition of the contract, the attorney general, on request of the state board of education, shall institute an action for damages on the bond of the contractor.

§ 15-743 Test results; annual report; five-year cumulative summary

A. The state board of education shall provide annual reports for every school and school district and the state as a whole. The state board shall annually submit these reports to school districts, the legislature and the county school superintendents and shall make them available to the public. The state board shall publish and distribute the reports by September 1 and shall also provide a cumulative summary of the reports every five years. The annual reports and cumulative summary results shall include:

Average and range scores on the statewide assessment adopted pursuant to section 15-741.
Standardized test scores by subject area according to percentiles and stanines for the school, school district, county, state and nation.
Achievement-related nontest indicator data collected in the survey of teachers, principals and superintendents as required by section 15-741, including information related to dropout rates by ethnicity for each grade level and graduation rates and postsecondary employment and education by ethnicity. In reporting such data, the state board shall not violate the provisions of the family educational rights and privacy act (P.L. 93-380), as amended, or disclose personally identifiable information.
The numbers of pupils who have completed the academic standards at grades three, eight and twelve.

B. Test results on individual pupils shall not be made available to the public by name or individually identifiable reference.

C. The state board shall provide a copy of the results from the tests prescribed in section 15-741, subsection A for each school district to that school district. Results may not be released to the public until ten days after the reports are provided to each school district.

D. The state board shall provide each school district participating in the testing program with a copy of each pupil's standardized norm-referenced test scores in reading, language arts and mathematics, and the associated grade equivalents, percentiles and stanines for the school, school district, county, state and nation, a report of pupil progress on an ongoing and annual basis, showing the trends in gain or loss in pupil achievement over time in reading, language arts and mathematics for all years in which pupils are enrolled in the school district for an entire school year and for which this information is available and a report of the pupil progress for pupils not enrolled in a district for an entire school year. The state board shall also provide each school district with each pupil's statewide assessment scores and the statewide assessment scores for the school, school district, county and state.

E. The school district shall provide a parent or guardian of each pupil participating in the standardized norm-referenced testing part of the program with a copy of the pupil's scores in reading, language arts and mathematics, and the percentiles and stanines. The school district shall provide a parent or guardian of each pupil with a copy of the pupil's scores on the statewide assessment and the associated scores for the school, school district, county and state. The school district shall make available to the public through the reports those scores for each school in the school district and for the school district, county, state and nation.

F. Any testing window established and executed by the department of education or the state board for the administration of the statewide assessment adopted pursuant to section 15-741 may not be longer than four consecutive school weeks and shall ensure that local education agencies receive test scores and assessment data from the third grade reading portion of the statewide assessment on or before May 15 of each academic year and that the scores and assessment data from all other portions of the statewide assessment adopted pursuant to section 15-741 are received by local education agencies on or before May 25 of each academic year. The department of education or the state board may not prohibit the superintendent or the staff of a local education agency from sharing statewide assessment data with the local education agency's district governing board or governing body or otherwise impede the sharing of statewide assessment data.

G. Notwithstanding subsection F of this section and sections 15-741 and 15-742, the department of education, subject to review and approval by the state board, may adjust the testing window for the statewide assessment adopted pursuant to section 15-741 in academic years that the state board is revising current proficiency levels or is establishing new proficiency levels for the statewide assessment adopted pursuant to section 15-741.

§ 15-745 Homeschooled children; testing; prohibition

A. This article shall not be construed to require the testing of children who are instructed in a homeschool program while they are receiving homeschool instruction.

B. A child who enrolls in a kindergarten program or grades one through twelve after receiving instruction in a homeschool program shall be tested pursuant to this article in order to determine the appropriate grade level for the educational placement of the child.

§ 15-746 School report cards

A. Each school shall distribute an annual report card that contains at least the following information:

A description of the school's regular, magnet and special instructional programs.
A description of the school's current academic goals.
A summary of each of the following:

(a) The results achieved by pupils enrolled at the school during the prior three school years as measured by the statewide assessment and the nationally standardized norm-referenced achievement test as designated by the state board and as reported in the annual report prescribed by section 15-743.

(b) Pupil progress on an ongoing and annual basis, showing the trends in gain or loss in pupil achievement over time in reading, language arts and mathematics for all years in which pupils are enrolled in the school district for an entire school year and for which this information is available.

The attendance rate of pupils enrolled at the school as reflected in the school's average daily membership as defined in section 15-901.
The total number of incidents that occurred on the school grounds, at school bus stops, at stops for vehicles described in section 15-925, on school buses, on vehicles described in section 15-925 and at school-sponsored events and that required the contact of a local, county, tribal, state or federal law enforcement officer pursuant to section 13-3411, subsection F, section 13-3620, section 15-341, subsection A, paragraph 30 or section 15-515. The total number of incidents reported shall only include reports that law enforcement officers report to the school and that are supported by probable cause. For the purposes of this paragraph, a certified peace officer who serves as a school resource officer is a law enforcement officer. A school may provide clarifying information if the school has a school resource officer on campus.
The percentage of pupils who have either graduated to the next grade level or graduated from high school.
A description of the social services available at the school site.
The school calendar, including the length of the school day and hours of operations.
The total number of pupils enrolled at the school during the previous school year.
The transportation services available.
A description of the responsibilities of parents of children enrolled at the school.
A description of the responsibilities of the school to the parents of the children enrolled at the school, including dates the report cards are delivered to the home.
A description of the composition and duties of the school council as prescribed in section 15-351 if such a school council exists.
For the most recent year available, the average current expenditure per pupil for administrative functions compared to the predicted average current expenditure per pupil for administrative functions according to an analysis of administrative cost data by the joint legislative budget committee staff.
If the school provides instruction to pupils in kindergarten programs and grades one through three, the ratio of pupils to teachers in each classroom where instruction is provided in kindergarten programs and grades one through three.
The average class size per grade level for all grade levels, kindergarten programs and grades one through eight. For the purposes of this paragraph, "average class size" means the weighted average of each class.

B. The department of education shall develop a standardized report card format that meets the requirements of subsection A of this section. The department shall modify the standardized report card as necessary on an annual basis. The department shall distribute to each school in this state a copy of the standardized report card that includes the required test scores for each school. Additional copies of the standardized report card shall be available on request.

C. After each school has completed the report card distributed to it by the department of education, the school, in addition to distributing the report card as prescribed in subsection A of this section, shall send a copy of the report card to the department. The department shall prepare an annual report that contains the report card from each school in this state.

D. The school shall distribute report cards to parents of pupils enrolled at the school, not later than the last day of school of each fiscal year, and shall present a summary of the contents of the report cards at an annual public meeting held at the school. The school shall give notice at least two weeks before the public meeting that clearly states the purposes, time and place of the meeting.

E. Beginning in fiscal year 2021-2022, the school report card prescribed by this section shall include a link to access the information required by section 15-747.

§ 15-747 School financial transparency; portal; required information; third-party contractor

A. Beginning in fiscal year 2021-2022, the department of administration shall develop a transparent and easily accessible school financial transparency portal that includes the following school level data for charter schools, individual schools operated by a school district and school districts:

The detailed total revenues generated by weighted student count.
The total allocated federal, state and local revenues.
The allocation of classroom site fund monies.
The amounts allocated for teacher pay and benefits, classroom supplies, student support and other expenditures.
A comparison of the funding information for each school in relation to the funding information for other schools in the same local education agency.
Any other information that is necessary for a transparent comparison between schools with respect to their revenues, expenditures, student demographics or academic achievement.

B. The department of education and the state board for charter schools shall provide and assist with any necessary data or financial information the department of administration or the contractor selected pursuant to subsection C of this section requests to comply with and implement subsection A of this section. The auditor general may provide assistance related to this section.

C. The department of administration shall contract with a third party to develop the portal prescribed in subsection A of this section. The third party selected by the department must meet all of the following:

Have experience in building education finance platforms to show school financial information in a transparent and easily understandable format.
Be incorporated for at least five years.
Have an exclusive focus on K-12 education finance technology.
Have at least five years of experience building cloud-hosted education finance software.
Have experience integrating with the uniform system of financial records.

Article 3.1 English Language Education for Children in Public Schools

§ 15-751 Definitions

(Caution: 1998 Prop. 105 Applies)

In this article,

"Bilingual education/native language instruction" means a language acquisition process for students in which much or all instruction, textbooks, or teaching materials are in the child's native language other than English.
"English language classroom" means a classroom in which English is the language of instruction used by the teaching personnel, and in which such teaching personnel possess a good knowledge of the English language. English language classrooms encompass both English language mainstream classrooms and sheltered English immersion classrooms
"English language mainstream classroom" means a classroom in which the students either are native English language speakers or already have acquired reasonable fluency in English.
"English learner" or "limited English proficient student" means a child who does not speak English or whose native language is not English, and who is not currently able to perform ordinary classroom work in English.
"Sheltered English immersion" or "structured English immersion" means an English language acquisition process for young children in which nearly all classroom instruction is in English but with the curriculum and presentation designed for children who are learning the language. Books and instructional materials are in English and all reading, writing, and subject matter are taught in English. Although teachers may use a minimal amount of the child's native language when necessary, no subject matter shall be taught in any language other than English, and children in this program learn to read and write solely in English. This educational methodology represents the standard definition of "sheltered English" or "structured English" found in educational literature.

§ 15-752 English language education

(Caution: 1998 Prop. 105 Applies)

Subject to the exceptions provided in section 15-753, all children in Arizona public schools shall be taught English by being taught in English and all children shall be placed in English language classrooms. Children who are English learners shall be educated through sheltered English immersion during a temporary transition period not normally intended to exceed one year. Local schools shall be permitted but not required to place in the same classroom English learners of different ages but whose degree of English proficiency is similar. Local schools shall be encouraged to mix together in the same classroom English learners from different native-language groups but with the same degree of English fluency. Once English learners have acquired a good working knowledge of English and are able to do regular school work in English, they shall no longer be classified as English learners and shall be transferred to English language mainstream classrooms. As much as possible, current per capita supplemental funding for English learners shall be maintained. Foreign language classes for children who already know English shall be completely unaffected, as shall special educational programs for physically- or mentally-impaired students.

§ 15-753 Parental waivers

(Caution: 1998 Prop. 105 Applies)

A. The requirements of section 15-752 may be waived with the prior written informed consent, to be provided annually, of the child's parents or legal guardian under the circumstances specified in this section. Such informed consent shall require that said parents or legal guardian personally visit the school to apply for the waiver and that they there be provided a full description of the educational materials to be used in the different educational program choices and all the educational opportunities available to the child. If a parental waiver has been granted, the affected child shall be transferred to classes teaching English and other subjects through bilingual education techniques or other generally recognized educational methodologies permitted by law. Individual schools in which 20 students or more of a given grade level receive a waiver shall be required to offer such a class; in all other cases, such students must be permitted to transfer to a public school in which such a class is offered.

B. The circumstances in which a parental exception waiver may be applied for under this section are as follows:

Children who already know English: the child already possesses good English language skills, as measured by oral evaluation or standardized tests of English vocabulary comprehension, reading, and writing, in which the child scores approximately at or above the state average for his grade level or at or above the 5th grade average, whichever is lower; or
Older children: the child is age 10 years or older, and it is the informed belief of the school principal and educational staff that an alternate course of educational study would be better suited to the child's overall educational progress and rapid acquisition of basic English language skills; or
Children with special individual needs: the child already has been placed for a period of not less than thirty calendar days during that school year in an English language classroom and it is subsequently the informed belief of the school principal and educational staff that the child has such special and individual physical or psychological needs, above and beyond the child's lack of English proficiency, that an alternate course of educational study would be better suited to the child's overall educational development and rapid acquisition of English. A written description of no less than 250 words documenting these special individual needs for the specific child must be provided and permanently added to the child's official school records, and the waiver application must contain the original authorizing signatures of both the school principal and the local superintendent of schools. Any such decision to issue such an individual waiver is to be made subject to the examination and approval of the local school superintendent, under guidelines established by and subject to the review of the local governing board and ultimately the state board of education. Teachers and local school districts may reject waiver requests without explanation or legal consequence, the existence of such special individual needs shall not compel issuance of a waiver, and the parents shall be fully informed of their right to refuse to agree to a waiver.

§ 15-754 Legal standing and parental enforcement

(Caution: 1998 Prop. 105 Applies)

As detailed in sections 15-752 and 15-753, all Arizona school children have the right to be provided at their local school with an English language public education. The parent or legal guardian of any Arizona school child shall have legal standing to sue for enforcement of the provisions of this statute, and if successful shall be awarded normal and customary attorney's fees and actual and compensatory damages, but not punitive or consequential damages. Any school board member or other elected official or administrator who willfully and repeatedly refuses to implement the terms of this statute may be held personally liable for fees and actual and compensatory damages by the child's parents or legal guardian, and cannot be subsequently indemnified for such assessed damages by any public or private third party. Any individual found so liable shall be immediately removed from office, and shall be barred from holding any position of authority anywhere within the Arizona public school system for an additional period of five years.

§ 15-755 Standardized testing for monitoring education progress

(Caution: 1998 Prop. 105 applies)

In order to ensure that the educational progress of all Arizona students in academic subjects and in learning English is properly monitored, a standardized, nationally-normed written test of academic subject matter given in English shall be administered at least once each year to all Arizona public schoolchildren in grades two through twelve. All students with disabilities shall be included in all general state and district assessments, with appropriate accommodations and alternate assessments where necessary and as indicated in their respective individual education program, in accordance with 20 United States Code section 1412. The particular test to be used shall be selected by the office of the state superintendent of public instruction, and it is intended that the test shall generally remain the same from year to year. The national percentile scores of students shall be confidentially provided to individual parents, and the aggregated percentile scores and distributional data for individual schools and school districts shall be made publicly available on an internet web site, and the scores for students classified as "limited-English" shall be separately subaggregated and made publicly available there as well. Although administration of this test is required solely for monitoring educational progress, Arizona public officials and administrators may utilize these test scores for other purposes as well if they so choose.

§ 15-756 Identification of English language learners

A. The primary or home language for all new pupils who enroll in a school district or charter school shall be identified in a manner prescribed by the superintendent of public instruction.

B. The English language proficiency of all pupils with a primary or home language other than English shall be assessed through the administration of English language proficiency assessments in a manner prescribed by the superintendent of public instruction. The test scores adopted by the superintendent as indicating English language proficiency shall be based on the test publishers' designated scores. The department shall annually request an appropriation to pay for the purchase of all language proficiency assessments, scoring and ancillary materials as prescribed by the department for school districts and charter schools.

C. If it is determined that a pupil is not English language proficient, the pupil shall be classified as an English language learner and shall be enrolled in an English language education program pursuant to section 15-752 or 15-753.

§ 15-756.01 State board of education; research-based models of structured English immersion; alternative English instruction models; English language learners; budget requests; definitions

A. The state board of education shall adopt and approve research-based models of structured English immersion for school districts and charter schools to use. The department of education shall provide adequate staff support for the state board to comply with this article. The models shall take into consideration at least the size of the school, the location of the school, the grade levels at the school, the number of English language learners and the percentage of English language learners. The state board shall adopt and approve models that include a minimum amount of English language development as follows:

One hundred twenty minutes per day, six hundred minutes per week or three hundred sixty hours per school year for pupils in kindergarten programs and grades one through five.
One hundred minutes per day, five hundred minutes per week or three hundred hours per school year for pupils in grades six through twelve.

B. The state board of education shall adopt alternative English instruction models pursuant to section 15-753 that are based on evidence and research.

C. Pursuant to section 15-756.02, school districts and charter schools may submit models of structured English immersion and alternative English instruction to the state board of education for approval.

D. The research-based models of structured English immersion adopted and approved by the state board of education shall be the most cost-efficient models that meet all state and federal laws.

E. The research-based models of structured English immersion and the alternative English instruction models shall be limited to a regular school year and school day. Instruction outside the regular school year or school day shall be provided with compensatory instruction and may be eligible for funding from the statewide compensatory instruction fund established by section 15-756.11.

F. The state board of education shall submit the research-based models of structured English immersion and the alternative English instruction models to the president of the senate, the speaker of the house of representatives and the governor. At least thirty days before adoption or approval, the state board shall submit the research-based models of structured English immersion and the alternative English instruction models to the joint legislative budget committee for review.

G. The state board of education shall review the research-based models of structured English immersion and the alternative English instruction models annually and delete from, add to or modify the existing models. When adopting, approving or modifying English language learner programs, the state board shall review and consider the information and data obtained as a result of the department of education's monitoring of English language learner programs pursuant to section 15-756.08.

H. The state board of education shall establish procedures for school districts and charter schools to determine the incremental costs to implement the research-based models of structured English immersion and the alternative English instruction models that the state board adopts or approves.

I. The state board of education shall establish a framework to evaluate the models prescribed in this section that are submitted for approval. The state board shall solicit input from experienced educators. The framework shall ensure that the adopted or approved models meet all of the following criteria:

Provide coherent instruction aligned with this state's English language proficiency standards.
Include oral and written language instruction, including structured opportunities to develop verbal and written skills and comprehension strategies.
Include access to complex language content through grade-level textbooks with appropriate supports.
Include parental engagement strategies.

J. The state board of education shall establish a form for school districts and charter schools to determine the structured English immersion and alternative English instruction budget request amount. Notwithstanding any other law, the maximum amount of the budget request shall be the incremental costs of the model selected offset by the portion of desegregation monies levied pursuant to section 15-910 determined by the English language learner population as a percentage of the qualified population and the ELL support level weight prescribed in section 15-943.

K. The difference calculated pursuant to subsection J of this section shall be the maximum amount of the structured English immersion and alternative English instruction budget request pursuant to section 15-756.03 for monies from the Arizona English language learner fund established by section 15-756.04.

L. In consultation with the auditor general, the department of education shall develop and adopt forms to be used by school districts and charter schools to submit budget requests for the Arizona English language learner fund, including the form prescribed in subsection J of this section.

M. This section does not prohibit a pupil who is designated as an English language learner from being concurrently enrolled in a structured English immersion model and an alternative English instruction model.

N. For the purposes of this section:

"Compensatory instruction" has the same meaning prescribed in section 15-756.11.
"Incremental costs" means costs that are associated with a structured English immersion program pursuant to section 15-752 or an alternative English instruction program pursuant to section 15-753 and that are in addition to the normal costs of conducting programs for English proficient students. Incremental costs do not include costs that replace the same types of services provided to English proficient students or compensatory instruction.

§ 15-756.02 School districts and charter schools; English language learner models; adoption, approval and implementation

A. Each school district governing board and each charter school governing body shall select and implement on a school-by-school basis one or more models for structured English immersion and alternative English instruction that the state board of education adopts or approves pursuant to section 15-756.01.

B. If a school district or charter school wants to implement an English language learner program that is not based on a model adopted or approved by the state board of education, the school district or charter school shall first submit the proposed program along with supporting documentation regarding the expected outcomes of the program on the district's or charter school's English language learner students to the state board for approval.

C. On receipt of a proposed program from a school district or charter school, the state board of education may do one of the following:

Approve the proposed program.
Provide limited approval subject to specific stipulations prescribed by the state board.
Reject the proposed program and identify a model that the state board approves for the school district or charter school to adopt.

§ 15-756.03 English language learner budget requests; requirements

A. If a school district or charter school qualifies to submit a budget request based on the form prescribed in section 15-756.01, subsection J, the school district or charter school shall submit an English language learner budget request on a school-by-school basis. The budget request shall be for a specific amount of supplemental monies from the Arizona English language learner fund established by section 15-756.04.

B. Each school district or charter school English language learner budget request shall include the signature of the superintendent of the school district and the chief financial officer of the school district or the principal of the charter school and the chief financial officer of the charter school. The signature certifies that the information in the budget request is true to the best of that person's knowledge and has been calculated in accordance with the form prescribed in section 15-756.01, subsection J and that monies from the Arizona English language learner fund established by section 15-756.04 will not be used to supplant any federal, state or local monies, including desegregation monies levied pursuant to section 15-910, used for English language learners that were budgeted for English language learners as of February 23, 2006.

C. Each school district and charter school that submits an English language learner budget request shall submit the budget request to the department of education annually on or before September 15. The department shall verify the budget request of each school district and charter school for accuracy and compliance with the form prescribed in section 15-756.01, subsection J. The department shall collect all school district and charter school budget requests and submit them to the legislature for funding from the Arizona English language learner fund established by section 15-756.04 at the same time as the department's budget request.

§ 15-756.04 Arizona English language learner fund; local-level funds

A. The Arizona English language learner fund is established. The department of education shall administer the fund.

B. The department of education shall submit an annual request for an appropriation for the purposes of this section.

C. In addition to the ELL support level weight prescribed in section 15-943, the department of education shall distribute monies from the fund to school districts and charter schools in an amount specified in the budget request prescribed in section 15-756.03, subsection C. This subsection does not prohibit a school district or charter school from receiving monies from the statewide compensatory instruction fund established by section 15-756.11 for more than two fiscal years for the same pupil.

D. The superintendent of public instruction shall attempt to obtain the maximum amount of federal funding that is available for English language learner programs.

E. Each school district and charter school shall establish a local-level English language learner fund to receive monies distributed from the Arizona English language learner fund. Monies in local-level English language learner funds shall be spent only to provide instruction to English language learners. The auditor general shall modify the budget format, financial record requirements, accounting forms and financial report forms in accordance with this subsection. In consultation with the department of education, the auditor general shall provide support and guidance to assist school districts and charter schools in complying with this subsection. Documents developed pursuant to this subsection shall be reviewed by the state board of education and the joint legislative budget committee.

F. Each school district and charter school shall use monies from its local-level English language learner fund to supplement existing programs for English language learners. Monies from the fund shall not be used to supplant available monies used to pay for the normal costs of conducting programs for English proficient students.

§ 15-756.05 Reassessment and reclassification of English language learners

A. The process of reassessment of English language learners for the purpose of determining English language proficiency shall be conducted at least annually at the end of each school year in a manner prescribed by the superintendent of public instruction.

B. A pupil who scores at or above the test publisher's designated score for English proficiency shall be considered English proficient. The pupil shall no longer be classified as an English language learner and shall be reclassified as English proficient.

C. A pupil who has attained English proficiency pursuant to this section shall be transferred to English language mainstream classrooms.

§ 15-756.07 Office of English language acquisition services; duties; annual report

The office of English language acquisition services is established in the department of education. The department of education, office of English language acquisition services, shall:

Develop guidelines for monitoring school districts and charter schools to ensure compliance with all federal and state laws regarding English language learners.
In consultation with county school superintendents, develop regional programs to enhance all aspects of training for teachers and administrators.
Publish English language learner policy guidelines for school districts and charter schools that include a list of relevant rules, regulations and statutes relating to English language learner programs to notify school districts and charter schools of their responsibilities.
Provide technical assistance to school districts and charter schools to implement structured English immersion programs.
On or before December 1 of each year, provide an annual report on English language learner programs to the state board of education, the auditor general, the governor, the president of the senate and the speaker of the house of representatives and present a summary of the report at a public meeting of the state board. The office shall provide a copy of the annual report to the secretary of state. The report shall include the information submitted by school districts and charter schools pursuant to section 15-756.10 and the following:

(a) Detailed descriptions of the adopted and approved models of English language learner instruction, the number of public schools implementing each model and the number of students enrolled in each model.

(b) The length of time students are classified as English language learners.

(c) The academic performance on the statewide assessment pursuant to section 15-741 for the two years after English language learners achieve English proficiency.

(d) A summary of information relating to the demonstrated success of public schools at achieving English proficiency for English language learners.

§ 15-756.08 Monitoring; report; corrective action plan

A. The superintendent of public instruction shall direct the office of English language acquisition services in the department of education to:

Monitor each year at least twelve school districts or charter schools from the fifty school districts or charter schools in this state with the highest number of English language learners. The department shall monitor all fifty school districts or charter schools with the highest number of English language learners in this state at least once every four years.
Monitor each year at least ten school districts or charter schools that are not included in the fifty school districts or charter schools described in paragraph 1 of this subsection.
Monitor each year at least ten school districts or charter schools that are not required to provide instruction for English language learners for a majority of their grade levels.
Choose, based on the department's review of reports submitted by school districts and charter schools, the school districts and charter schools described in paragraphs 1, 2 and 3 of this subsection.

B. The monitoring required by this section shall be on-site monitoring and shall include classroom observations, curriculum reviews, faculty interviews, student records, a review of English language learner programs and an analysis of programmatic effectiveness, at a minimum, to include prior year data that analyze the progress of English language learners.

C. Based on the results of the monitoring, the department of education shall determine whether the school district or charter school is complying with state and federal laws applicable to English language learners.

D. The department of education shall issue a report of the results of the monitoring within forty-five days after completing the monitoring.

E. Within sixty days following the issuance of the department of education's report, the school district or charter school receiving the report shall prepare and submit to the department a corrective action plan, in a manner prescribed by the state board of education, that sets forth steps that will be taken to correct the deficiencies, if any, noted in the department's report.

F. Within thirty days after receiving a school district's or charter school's corrective action plan, the department of education shall review the corrective action plan and may require changes to the corrective action plan.

G. After the department of education has reviewed a school district's or charter school's corrective action plan and made any changes the department deems necessary, the department shall return the corrective action plan to the school district or charter school.

H. Within thirty days after receiving a corrective action plan back from the department of education, the school district or charter school shall begin implementing the measures set forth in the corrective action plan.

I. The department of education shall conduct a follow-up evaluation of the school district or charter school within one year after the department returned the corrective action plan to the school district or charter school.

J. In conducting the follow-up evaluation, if the department of education finds that the school district or charter school is not in compliance with state and federal laws applicable to English language learners, the department shall refer the school district or charter school to the state board of education for a finding of noncompliance. A school district or charter school that is found by the state board to be noncompliant shall not continue to receive any monies from the Arizona English language learner fund established by section 15-756.04 for English language learners and shall not reduce the amount of monies spent on the school district's or charter school's English language learner programs despite the loss of monies caused by the noncompliance.

K. The department of education shall monitor each school district or charter school that the state board of education has found to be noncompliant and that is not receiving Arizona English language learner fund monies pursuant to subsection J of this section to ensure that the school district or charter school does not reduce the amount of monies spent on the school district's or charter school's English language learner programs despite the loss of Arizona English language learner fund monies caused by the noncompliance.

§ 15-756.09 Teacher training

A. The state board of education shall determine the qualifications necessary for a provisional and full structured English immersion endorsement.

B. Training may be allowed that is not provided by a college or university to substitute for any of the courses required for a structured English immersion endorsement or a bilingual education endorsement if all of the following conditions apply:

The state board of education has reviewed the curricula, textbooks, grading procedures and attendance policies and determined that the training is comparable in amount, scope and quality to a course offered by a college or university for a structured English immersion or bilingual education endorsement.
The training meets the professional teaching standards adopted by the state board of education.
The state board of education has reviewed the qualifications of the instructor and determined that the instructor has sufficient experience to effectively conduct the training.

C. The state board of education shall require all approved teacher training programs that provide a degree in education to require courses that are necessary to obtain a full structured English immersion endorsement.

D. Notwithstanding section 15-203 or subsection A of this section, a provisional or full structured English immersion endorsement may not be required for the purposes of teacher certification pursuant to section 15-203 if the person is not being certificated to teach students in a sheltered English immersion or structured English immersion model pursuant to this article. This subsection does not prohibit a school district or charter school from requiring a structured English endorsement pursuant to this section as a condition of employment.

§ 15-756.10 Reporting requirements

The office of English language acquisition services in the department of education shall:

Require each school district and charter school to annually submit a report to the department that includes the following information identified by grade level and by school:

(a) The total number of pupils who are classified as English language learners as verified by the student accountability information system established by section 15-1041.

(b) The number of pupils who are classified as English language learners for the first time as verified by the student accountability information system established by section 15-1041.

(c) The number of English language learners who achieved English proficiency in the past academic year and who have been reclassified as English proficient as verified by the student accountability information system established by section 15-1041.

(d) The number of pupils who are enrolled in each type of language acquisition program offered by the school district or charter school as verified by the student accountability information system established by section 15-1041.

(e) If requested by the department, the test data used to determine English proficiency.

Determine the mobility of English language learners within the same school district and the mobility of English language learners to other school districts and charter schools through the student accountability information system established by section 15-1041.
Submit an annual report to the governor, the president of the senate, the speaker of the house of representatives and the state board of education that includes a detailed analysis of whether and to what extent pupils are benefiting academically from compensatory instruction as defined in section 15-756.11 and a comparison of the academic achievement of pupils before and after receiving compensatory instruction as defined in section 15-756.11. The department shall submit a copy of this report to the secretary of state.
Analyze the effectiveness of all models adopted or approved by the state board of education and identify the most effective models.

§ 15-756.11 Statewide compensatory instruction fund; reporting; definition

A. The statewide compensatory instruction fund is established. The department of education shall administer the fund.

B. To be eligible for monies appropriated pursuant to this section, a school district or charter school must demonstrate to the department of education that it has established a satisfactory compensatory instruction program. The department of education shall distribute monies from the fund to school districts and charter schools in an amount determined by the department for compensatory instruction costs.

C. School districts and charter schools shall annually submit written compensatory instruction budget requests to the department on or before July 15 for monies from the fund on a form developed by the department. The requests shall include an analysis of compensatory instruction effectiveness.

D. The written requests submitted by school districts and charter schools shall be signed by the superintendent of the school district and the chief financial officer of the school district or the principal of the charter school and the chief financial officer of the charter school, and monies from the statewide compensatory instruction fund shall not be used to supplant any federal, state or local monies, including desegregation monies levied pursuant to section 15-910, used for English language learners that were budgeted for English language learners as of February 23, 2006.

E. School districts and charter schools shall use monies from the fund to supplement existing programs. Monies shall not be used to supplant any federal, state or local monies, including desegregation monies levied pursuant to section 15-910, used for compensatory instruction that were budgeted for English language learners as of February 23, 2006.

F. Each school district and charter school shall establish a local level compensatory instruction fund to receive monies distributed from the statewide compensatory instruction fund. Monies in local level compensatory instruction funds shall be spent only for compensatory instruction. The auditor general shall modify the budget format, financial record requirements, accounting forms and financial report forms in accordance with this subsection. In consultation with the department of education, the auditor general shall provide support and guidance to assist school districts and charter schools in complying with this subsection. Documents developed pursuant to this subsection shall be reviewed by the state board of education and the joint legislative budget committee.

G. For the purposes of this section, "compensatory instruction" means programs in addition to normal classroom instruction that may include individual or small group instruction, extended day classes, summer school or intersession school and that are limited to improving the English proficiency of current English language learners and pupils who were English language learners and who have been reclassified as English proficient within the previous two years.

§ 15-756.12 Auditor general; annual financial report; modification

The auditor general shall modify the annual financial report prescribed in section 15-904 in order to carry out this article.

§ 15-756.13 School district and charter schools; responsibility to comply with state and federal law

Nothing in sections 15-756 and 15-756.01 through 15-756.12 relieves a school district or charter school of its responsibility to comply with all state and federal laws.

§ 15-757 Contracts with private vendors

School districts and charter schools may enter into contracts with private vendors that provide literacy services that are designed to make participating pupils who begin receiving the services in kindergarten successful at reading, writing and speaking English at the third grade level by the end of the third grade.

Article 4 Special Education for Exceptional Children

§ 15-761 Definitions

In this article, unless the context otherwise requires:

"Autism" means a developmental disability that significantly affects verbal and nonverbal communication and social interaction and that adversely affects educational performance. Characteristics include irregularities and impairments in communication, engagement in repetitive activities and stereotyped movements, resistance to environmental change or change in daily routines and unusual responses to sensory experiences. Autism does not include children with characteristics of emotional disability as defined in this section.
"Child with a disability":

(a) Means a child who is at least three years but under twenty-two years of age, who has been evaluated pursuant to section 15-766 and found to have at least one of the following disabilities and who, because of the disability, needs special education and related services:

(i) Autism.

(ii) Developmental delay.

(iii) Emotional disability.

(iv) Hearing impairment.

(v) Other health impairments.

(vi) Specific learning disability.

(vii) Mild, moderate or severe intellectual disability.

(viii) Multiple disabilities.

(ix) Multiple disabilities with severe sensory impairment.

(x) Orthopedic impairment.

(xi) Preschool severe delay.

(xii) Speech/language impairment.

(xiii) Traumatic brain injury.

(xiv) Visual impairment.

(b) Does not include a child for whom the determinant factor for the classification is one or more of the following:

(i) A lack of appropriate instruction in reading, including essential components of reading instruction.

(ii) A lack of appropriate instruction in mathematics.

(iii) Difficulty in writing, speaking or understanding the English language due to an environmental background in which a language other than English is primarily or exclusively used.

"Developmental delay" means performance by a child who is at least three years of age but under ten years of age on a norm-referenced test that measures at least one and one-half, but not more than three, standard deviations below the mean for children of the same chronological age in two or more of the following areas:

(a) Cognitive development.

(b) Physical development.

(d) Social or emotional development.

(e) Adaptive development.

The results of the norm-referenced measure must be corroborated by information from a comprehensive development assessment and from parental input, if available, as measured by a judgment based assessment or survey. If there is a discrepancy between the measures, the evaluation team shall determine eligibility based on a preponderance of the information presented.

"Due process hearing" means a fair and impartial administrative hearing conducted by the state educational agency by an impartial administrative law judge in accordance with federal and state law.
"Educational disadvantage" means a condition that has limited a child's opportunity for educational experience resulting in a child achieving less than a normal level of learning development.
"Eligibility for special education" means the pupil has one of the disabilities in paragraph 2 of this section and requires special education services in order to benefit from an educational program.
"Emotional disability" means a condition:

(a) In which a child exhibits one or more of the following characteristics over a long period of time and to a marked degree that adversely affects the child's performance in the educational environment:

(i) An inability to learn that cannot be explained by intellectual, sensory or health factors.

(ii) An inability to build or maintain satisfactory interpersonal relationships with peers and teachers.

(iii) Inappropriate types of behavior or feelings under normal circumstances.

(iv) A general pervasive mood of unhappiness or depression.

(v) A tendency to develop physical symptoms or fears associated with personal or school problems.

(b) That includes children who are schizophrenic but does not include children who are socially maladjusted unless they are also determined to have an emotional disability as determined by evaluation as provided in section 15-766.

"Hearing impairment" means a loss of hearing acuity, as determined by evaluation pursuant to section 15-766, that interferes with the child's performance in the educational environment and requires the provision of special education and related services.
"Home school district" means the school district or charter school that the child last attended or, if the child has not previously attended a public school in this state, the school district in which the person resides who has legal custody of the child, as provided in section 15-824, subsection B. If the child is a ward of this state and a specific person does not have legal custody of the child or is a ward of this state and the child is enrolled in an accommodation school pursuant to section 15-913, the home school district is the district that the child last attended or, if the child has not previously attended a public school in this state, the school district within which the child currently resides.
"Impartial administrative law judge" means an administrative law judge of the office of administrative hearings who is knowledgeable in the laws governing special education and administrative hearings.
"Individualized education program" means a written statement, as defined in 20 United States Code sections 1401 and 1412, for providing special education and related services to a child with a disability.
"Individualized education program team" means a team whose task is to develop an appropriate educational program for the child and has the same meaning prescribed in 20 United States Code section 1414.
"Intellectual disability" means a significant impairment of general intellectual functioning that exists concurrently with deficits in adaptive behavior and that adversely affects the child's performance in the educational environment.
"Mild intellectual disability" means performance on standard measures of intellectual and adaptive behavior between two and three standard deviations below the mean for children of the same age.
"Moderate intellectual disability" means performance on standard measures of intellectual and adaptive behavior between three and four standard deviations below the mean for children of the same age.
"Multidisciplinary evaluation team" means a team of persons, including individuals described as the individualized education program team and other qualified professionals, who shall determine whether a child is eligible for special education.
"Multiple disabilities" means learning and developmental problems resulting from multiple disabilities as determined by evaluation pursuant to section 15-766 that cannot be provided for adequately in a program designed to meet the needs of children with less complex disabilities. Multiple disabilities include any of the following conditions that require the provision of special education and related services:

(a) Two or more of the following conditions:

(i) Hearing impairment.

(ii) Orthopedic impairment.

(iii) Moderate intellectual disability.

(iv) Visual impairment.

(b) A child with a disability listed in subdivision (a) of this paragraph existing concurrently with a condition of mild intellectual disability, emotional disability or specific learning disability.

"Multiple disabilities with severe sensory impairment" means multiple disabilities that include at least one of the following:

(a) Severe visual impairment or severe hearing impairment in combination with another severe disability.

(b) Severe visual impairment and severe hearing impairment.

"Orthopedic impairment" means one or more severe orthopedic impairments and includes those that are caused by congenital anomaly, disease and other causes, such as amputation or cerebral palsy, and that adversely affect a child's performance in the educational environment.
"Other health impairments" means limited strength, vitality or alertness, including a heightened alertness to environmental stimuli, due to chronic or acute health problems that adversely affect a pupil's educational performance.
"Out-of-home care" means the placement of a child with a disability outside of the home environment and includes twenty-four-hour residential care, group care or foster care on either a full-time or part-time basis.
"Parent" means:

(a) Either a natural or adoptive parent of a child.

(b) A guardian, but not this state if the child is a ward of this state.

(c) A person who is acting in the place of a natural or adoptive parent and with whom the child lives or a person who is legally responsible for the child's welfare.

(d) A surrogate parent.

(e) A foster parent to the extent permitted by state law.

"Preschool child" means a child who is at least three years of age but who has not reached the required age for kindergarten, subject to section 15-771, subsection G.
"Preschool severe delay" means performance by a preschool child on a norm-referenced test that measures more than three standard deviations below the mean for children of the same chronological age in one or more of the following areas:

(a) Cognitive development.

(b) Physical development.

(d) Social or emotional development.

(e) Adaptive development.

The results of the norm-referenced measure must be corroborated by information from a comprehensive developmental assessment and from parental input, if available, as measured by a judgment based assessment or survey. If there is a discrepancy between the measures, the evaluation team shall determine eligibility based on a preponderance of the information presented.

"Prior written notice" means written prior notice that a public educational agency is required to send to parents whenever the public educational agency proposes or refuses to initiate or change the identification, evaluation or educational placement of a child with a disability or the provision of a free appropriate public education.
"Public educational agency" means a school district, a charter school, an accommodation school, a state-supported institution or any other political subdivision of this state that is responsible for providing education to children with disabilities.
"Related services" means those supportive services, as defined in 20 United States Code section 1401, that are required to assist a child with a disability who is eligible to receive special education services in order for the child to benefit from special education.
"Residential special education placement" means placing a child with a disability in a public or private residential program, as provided in section 15-765, subsection G, in order to provide necessary special education and related services as specified in the child's individualized education program.
"Severe intellectual disability" means performance on standard measures of intellectual and adaptive behavior measures at least four standard deviations below the mean for children of the same age.
"Special education" means specially designed instruction that meets the unique needs of a child with a disability and that is provided without cost to the parents of the child.
"Special education referral" means a written request for an evaluation to determine whether a pupil is eligible for special education services that, for referrals not initiated by a parent, includes documentation of appropriate efforts to educate the pupil in the regular education program.
"Specially designed instruction" means adapting the content, methodology or delivery of instruction to address the unique needs of a child with a disability and to ensure that child's access to the general curriculum as identified in the academic standards adopted by the state board of education.
"Specific learning disability" has the same meaning as defined in 20 United States Code section 1401.
"Speech/language impairment":

(a) For a preschool child, means performance on a norm-referenced language test that measures at least one and one-half standard deviations below the mean for children of the same chronological age or whose speech, out of context, is unintelligible to a listener who is unfamiliar with the child. Eligibility for a preschool child under this subdivision is appropriate only when a comprehensive developmental assessment and parental input indicate that the preschool child is not eligible for services under another preschool category or under the developmental delay category. If there is a discrepancy between the measures, the evaluation team shall determine eligibility based on a preponderance of the information presented.

(b) For a child who has reached the required age for kindergarten, means a speech or language impairment as defined in 34 Code of Federal Regulations section 300.8.

"State educational agency" means the department of education.
"State placing agency" has the same meaning prescribed in section 15-1181.
"Surrogate parent" means a person who has been appointed by the court or by the department of education pursuant to section 15-763.01 to represent a child in decisions regarding special education.
"Traumatic brain injury":

(a) Means an acquired injury to the brain that is caused by an external physical force and that results in total or partial functional disability or psychosocial impairment, or both, that adversely affects educational performance.

(b) Applies to open or closed head injuries resulting in mild, moderate or severe impairments in one or more areas, including cognition, language, memory, attention, reasoning, abstract thinking, judgment, problem solving, sensory, perceptual and motor abilities, psychosocial behavior, physical functions, information processing and speech.

"Visual impairment" has the same meaning prescribed in 34 Code of Federal Regulations section 300.8.
"Ward of the state" has the same meaning prescribed in 20 United States Code section 1401.

§ 15-761.01 Child with a disability; reclassification

A child previously classified as a child with a disability as defined in section 15-761 shall not be removed from that classification unless the child is reevaluated pursuant to section 15-766 and the evaluation determines that the child no longer meets the definition of a child with a disability.

§ 15-762 Division of special education

The division of special education as provided in chapter 2, article 2 of this title shall carry out the provisions of this article subject to the superintendent of public instruction.

§ 15-763 Plan for providing special education; definition

A. All school districts and charter schools shall develop policies and procedures for providing special education to all children with disabilities within the district or charter school. All children with disabilities shall receive special education programming commensurate with their abilities and needs. Each child shall be ensured access to the general curriculum and an opportunity to meet the state's academic standards. If appropriate to meet the needs of a pupil and to ensure access to the general education curriculum, specially designed instruction that is in accordance with a pupil's individualized education program may be delivered in a variety of education settings by a general education teacher or other certificated personnel provided that special education personnel certificated pursuant to section 15-203 are involved in the planning, progress monitoring and, when appropriate, delivery of the specially designed instruction. If, pursuant to section 15-761, paragraph 2, subdivision (a), the pupil is found to need special education and related services because of a specific learning disability, the pupil's individualized education program shall indicate whether the pupil has been diagnosed with dyslexia. Pupils who receive special education shall not be required to achieve passing scores on the statewide assessment or the test that is identical to the civics portion of the naturalization test under section 15-701.01 in order to graduate from high school unless the pupil is learning at a level appropriate for the pupil's grade level in a specific academic area and unless a passing score on the statewide assessment or the test that is identical to the civics portion of the naturalization test under section 15-701.01 is specifically required in a specific academic area by the pupil's individualized education program as mutually agreed on by the pupil's parents and the pupil's individualized education program team or the pupil, if the pupil is at least eighteen years of age. The pupil's individualized education program shall include any necessary testing accommodations. Special education services shall be provided at no cost to the parents of children with disabilities.

B. The state board of education shall adopt guidelines to define a parent's or guardian's role or a pupil's role, if the pupil is at least eighteen years of age, in the development of a pupil's section 504 plan as defined in section 15-731, including testing and testing accommodations.

C. For the purposes of determining the services to pupils served by private schools under existing federal law, the state shall consider the term to include homeschooled pupils.

D. If federal monies are provided to a school district or a charter school for special education services to homeschooled or private schooled pupils, the school district or charter school shall provide the services to both the homeschooled pupils and the private schooled pupils in the same manner.

E. For the purposes of this section, "special education" has the same meaning prescribed in section 15-1201.

§ 15-763.01 Surrogate parent; notification; appointment

A. A petition for the appointment of a surrogate parent for a child with a disability shall be made to the department of education if any of the following conditions has been met:

A parent as defined in 34 Code of Federal Regulations section 300.30 cannot be identified.
A public agency cannot determine the whereabouts of a parent, after having made reasonable attempts.
The child is a ward of the state, and a parent as defined in 34 Code of Federal Regulations section 300.30 cannot be identified or a public agency cannot determine the location of a parent after having made reasonable attempts. In the case of a child who is a ward of the state, the surrogate parent may alternately be appointed by the judge who oversees the child's case if the surrogate parent meets the requirements of this section.
The child meets the criteria of an unaccompanied youth as defined in the McKinney-Vento homeless assistance act (42 United States Code section 11434a(6)).

B. If allowed by state and federal law, the department of education shall notify the court of competent jurisdiction if the department of education appoints a surrogate parent for a ward of the state pursuant to subsection A of this section.

C. In order for a person to be eligible to receive an appointment as a surrogate parent for a child with a disability, all of the following must be true:

The person shall be determined by the department of education to possess knowledge and skills that will ensure adequate representation of the child.
The person may not be an employee of a state agency if that agency is involved in the education or care of the child.
The person may not have any interests that would conflict with the best interests of the child.
The person shall have a valid fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1.

D. A person who is appointed as a surrogate parent for a child with a disability shall not be deemed to be an employee of the state solely as a result of serving as a surrogate parent and receiving compensation for that service.

§ 15-764 Powers and duties of the school district governing board or county school superintendent

A. The governing board of each school district or the county school superintendent shall:

Provide special education and related services for all children with disabilities and make such programs and services available to all eligible children with disabilities who are at least three years but less than twenty-two years of age, except that a person who is being provided special education services at the time the person reaches twenty-two years of age shall continue to receive special education services from that school district until the end of that school year.
Employ supportive special personnel, which may include a director of special education, for the operation of special school programs and services for exceptional children.
To the extent appropriate, educate children with disabilities in the regular education classes. Special classes, separate schooling or other removal of children with disabilities from the regular educational environment shall occur only if, and to the extent that, the nature or severity of the disability is such that education in regular classes, even with the use of supplementary aids and services, cannot be accomplished satisfactorily.
Provide necessary specialized transportation in connection with any educational program, class or service as required by the pupil's individualized education program.
Establish policy with regard to allowable pupil-teacher ratios and pupil-staff ratios within the school district or county for provision of special education services.

B. The special education programs and services established pursuant to this section and section 15-765 shall be conducted only in a school facility which houses regular education classes or in other facilities approved by the division of special education.

C. The governing body of each school district, county or agency involved in intergovernmental agreements, in cooperation with another school district or districts, may establish special education programs for exceptional children. When two or more governing bodies determine to carry out by joint agreement the duties in regard to the special education programs for exceptional children, the governing bodies, in accordance with state law and the rules of the division of special education, shall establish a written agreement for the provision of services. In such agreements, one governing body of each school district, an agency involved in intergovernmental agreements or the county shall administer the program in accordance with the contract agreement between the school districts. Tuition students may be included in the agreement. The agreement may also include lease-purchase of facilities for the special education programs for exceptional children.

D. The county school superintendent, upon approval of the division of special education, may establish special education programs in the county accommodation schools under the jurisdiction of the superintendent or may cooperate with other school districts by agreement to provide such services for such special programs in accordance with the rules of the division of special education. At the beginning of each school year the county school superintendent shall present an estimate of the current year's accommodation school exceptional programs tuition cost to each school district that has signed an agreement to use the services of the accommodation school. The tuition shall be the estimated per capita cost based on the number of pupils that each school district has estimated will enroll in the program, and the school district shall pay the tuition quarterly in advance on July 1, October 1, January 1 and April 1. Increases in enrollment during the school year over the school district's estimate of July 1 shall cause the tuition charges to be adjusted accordingly. In the event of overpayment by the school district of residence, the necessary adjustment shall be made at the close of the school year.

§ 15-765 Special education in rehabilitation, corrective or other state and county supported institutions, facilities or homes

A. For the purposes of this section and section 15-764, children with disabilities who are being provided with special education in rehabilitation, corrective or other state and county supported institutions or facilities are the responsibility of that institution or facility, including children with disabilities who are not enrolled in a residential program and who are being furnished with daily transportation. Special education programs at the institution or facility shall conform to the conditions and standards prescribed by the director of the division of special education.

B. Notwithstanding subsection A of this section, the department of economic security, the department of child safety or the Arizona health care cost containment system may request on behalf of a school-age child with a disability residing in a residential facility or foster home operated or supported by the department of economic security, the department of child safety or the Arizona health care cost containment system that the school district in which the facility or home is located enroll the school-age child in the district, subject to section 15-825. The school district, on the request by the department of economic security, the department of child safety or the Arizona health care cost containment system, shall enroll the child and provide any necessary special education and related services, subject to section 15-766. A school district in which a child with a disability is enrolled shall coordinate the development of an individualized education program with the development of an individual program or treatment plan. The provision of special education and related services to a child with a disability may be subject to subsection D of this section.

C. Before any placement is made in facilities described in this section, the school district of residence shall ensure that a full continuum of alternative placements is available to meet the needs of children with disabilities and that the proposed placement is the least restrictive environment in which appropriate education services can be provided to the child.

D. A school district or county school superintendent may contract with, and make payments to, other public or private schools, institutions and agencies approved by the division of special education, within or without the school district or county, for the education of and provision of services to children with disabilities if section 15-766 and the conditions and standards prescribed by the division of special education have been met and if unable to provide satisfactory education and services through its own facilities and personnel in accordance with the rules prescribed by the state board of education as provided in section 15-213. No school district may contract or make payments under the authority of this section or section 15-764 or any other provisions of law for the residential or educational costs of placement of children with disabilities in an approved private special education school, institution or agency unless the children are evaluated and placed by a school district. The following special provisions apply in order to qualify for the group B ED-P weight:

If the child is placed in a private special education program, the chief administrative official of the school district or county or other person designated by the school district or county as responsible for special education shall verify that the pupil is diagnosed with an emotional disability as defined in section 15-761, that no appropriate program exists within the school district or county, as applicable, and that no program can feasibly be instituted by the school district or county, as applicable.
If the child is placed in a special program that provides intensive services within a school district, the chief administrative official of the school district or county or other person as designated by the school district or county as responsible for special education shall verify that the pupil placed in such a program is diagnosed with an emotional disability as defined in section 15-761 and that appropriate services cannot be provided in traditional resource and self-contained special education classes.

E. When a state placing agency initially places a pupil in a private residential facility, the home school district must conduct an evaluation pursuant to section 15-766 or review the educational placement of a pupil who has previously been determined eligible for special education services. The school district shall notify the appropriate state placing agency when a child requires an evaluation for possible receipt of services provided by that agency or a residential special education placement. The school district and the state agency shall jointly evaluate the child, including consideration of relevant information from additional sources, including probation or parole officers, caseworkers, guardians ad litem and court appointed special advocates.

F. If the child is not eligible for special education or does not require residential special education placement, sections 15-1182 and 15-1183 apply.

G. If the individualized education program team determines that a residential special education placement is the least restrictive environment in which an appropriate educational program can be provided, the home school district shall submit the following documentation to the department of education:

A residential special education voucher application signed by designated representatives of the state placing agency, as defined in section 15-1181, and the home school district, respectively.
The educational reasons for recommending the residential special education placement, including an evaluation or addendum to the evaluation that describes the instructional and behavioral interventions that were previously attempted and the educational reasons for recommending the residential special education placement, including documentation that the nature or severity of the disability is such that education in a less restrictive environment is not appropriate.
Exit criteria as required in subsection K of this section.
That prior written notice for a change in the child's placement was provided.

H. If a residential special education placement is required by the child's individualized education program, the educational component of the residential facility shall be one that is approved by the department of education for the specific special education services required.

I. The residential component of the facility in which the residential special education placement is made shall be licensed by the department of economic security, the department of child safety or the department of health services, whichever is appropriate.

J. Following and in accordance with the consensus decision of the individualized education program team as prescribed in section 15-766, a residential special education placement shall be made by the school district and the appropriate state agency. The individualized education program team shall determine whether a residential special education placement is necessary. The state placing agency shall consider the recommendations of the individualized education program team in selecting the specific residential facility. The department of education shall enter into interagency services agreements with the department of economic security, the department of child safety or the Arizona health care cost containment system to establish a mechanism for resolving disputes if the school district and the department of economic security, the department of child safety or the Arizona health care cost containment system cannot mutually agree on the specific residential placement to be made. Dispute resolution procedures may not be used to deny or delay residential special education placement.

K. The individualized education program for any child who requires residential special education placement must include exit criteria that indicate when the educational placement of the child shall be reviewed to determine whether the child can be moved to a less restrictive placement.

L. All noneducational and nonmedical costs incurred by the placement of a child with a disability in a private or public school program and concurrent out-of-home care program shall be paid by the department of economic security for those children eligible to receive services through the division of developmental disabilities, by the department of child safety for the children for which it has legal responsibility and by the Arizona health care cost containment system for those children eligible to receive behavioral health or children's rehabilitation services through the Arizona health care cost containment system administration. This section does not prevent or limit the Arizona health care cost containment system, the department of child safety and the department of economic security from joint case management of any child who qualifies for services from two or more of these agencies or from sharing the noneducational costs of providing those services. The educational costs incurred by the placement of a child with a disability in an out-of-home care facility shall be paid as follows:

Through a residential special education placement voucher as provided in section 15-1184 if the child is determined to require a residential special education placement as defined in section 15-761.
Through an initial or continuing residential education voucher if a child is placed in a private residential facility by a state placing agency, as defined in section 15-1181, for care, treatment and safety reasons and the child needs educational services while in that placement.
Through a certificate of educational convenience if the child is attending a public school not within the child's school district of residence as provided in section 15-825.
By the home school district, pursuant to a contract with a public or private school as provided in subsection D of this section, if the home school district is unable to provide satisfactory education and services through its own facilities and personnel.

M. The department of economic security, the department of child safety or the Arizona health care cost containment system, whichever is appropriate, shall determine if the child placed for purposes of special education in a private or public school and concurrent out-of-home care is covered by an insurance policy that provides for inpatient or outpatient child or adolescent psychiatric treatment. The appropriate state agency may only pay charges for treatment costs that are not covered by an insurance policy. Notwithstanding any other law, the appropriate state agency may pay for placement costs of the child before the verification of applicable insurance coverage. On the depletion of insurance benefits, the appropriate state agency shall resume payment for all noneducational and nonmedical costs incurred in the treatment of the child. The appropriate state agency may request the child's family to contribute a voluntary amount toward the noneducational and nonmedical costs incurred as a result of residential placement of the child. The amount that the appropriate state agency requests the child's family to contribute shall be based on guidelines in the rules of the appropriate state agency governing the determination of contributions by parents and estates. This subsection does not require parents to incur any costs for required special education and related services or shall be construed to result in a reduction in lifetime insurance benefits available for a child with a disability.

N. If appropriate services are offered by the school district and the parent or the child chooses for the child to attend a private facility, either for day care or for twenty-four-hour care, neither the school district nor the respective agency is obligated to assume the cost of the private facility. If residential twenty-four-hour care is necessitated by factors such as the child's home condition and is not related to the special educational needs of the child, the agency responsible for the care of the child is not required to pay any additional costs of room and board and nonmedical expenses pursuant to this section.

§ 15-766 Evaluation of child for placement in special education program; due process hearing procedures

A. A special education referral shall be made under the direction of the chief administrative official of the school district or county, or such person officially designated as responsible for special education, after consultation with the parent or guardian.

B. Before a child who is suspected of having a disability is placed in a special education program, an evaluation shall be made in accordance with the individuals with disabilities education act (20 United States Code section 1414) to determine whether a child is a child with a disability. A school district or charter school shall specify explicitly in the official notification to any parent that an initial evaluation may be conducted that the parent has the option to consent or refuse the initial evaluation in accordance with the individuals with disabilities education act (20 United States Code sections 615 and 1414). This evaluation shall be conducted within sixty days after receiving parental consent for the evaluation. A reevaluation shall be conducted not more than once each year, unless the parent and the public education agency otherwise agree, and at least every three years if the public educational agency determines that the educational or related services needs of the child warrant a reevaluation, or if the child’s parents or teacher requests a reevaluation, unless the parent and the public education agency agree that a reevaluation is unnecessary.

C. Any evaluation components that are appropriate to consider under the specific circumstances may be shared by and among state agencies for the purpose of expediting completion of the evaluation and placement process.

D. The chief administrative official of the school district or county or the person officially designated as responsible for special education shall place the child, based upon the consensus recommendation of the individualized education program team and subject to due process pursuant to 20 United States Code section 1415, except that a child shall not be placed in a special education program without the written consent of the child's parent or guardian.

E. The due process hearing procedures prescribed in this section extend to the parents of a child, a student who has reached the age of majority or the public educational agency or agencies involved in any decisions regarding the student. All due process hearings shall be conducted in accordance with federal and state laws governing the educational rights of children with known or suspected disabilities. The state board of education shall adopt rules for implementing this section that comply with the following:

The parent, the adult student or the public educational agency or agencies may initiate due process hearing procedures under either of the following circumstances:

(a) There is a proposal to initiate or change the identification, evaluation or educational placement of the child, or the provision of a free appropriate public education to the child.

(b) There is a refusal to initiate or change the identification, evaluation or educational placement of the child, or the provision of a free appropriate public education to the child.

Either the parent, the adult student or the public educational agency or agencies may initiate a due process hearing by submitting a written request to the state educational agency and the public educational agency involved in any decisions regarding the student. The state educational agency shall provide a model form that any party may use in requesting a due process hearing. The public educational agency shall promptly forward any requests received to the state educational agency. Any request received by the state educational agency shall be transmitted immediately to the office of administrative hearings and the public educational agency.
A decision made in a hearing conducted pursuant to this section shall be final, except that any party involved in a hearing may bring a civil action in any court of competent jurisdiction without regard to the amount in controversy.

F. The public educational agency shall pay all costs incurred by the office of administrative hearings associated with any hearing conducted pursuant to this section and the public educational agency or a public agency pool operated pursuant to section 11-952.01 in which the public educational agency participates shall contract with the office of administrative hearings for this purpose.

G. Title 41, chapter 6, article 10 shall apply to all hearings to the extent not inconsistent with this section and federal and state law regarding the education of students with disabilities.

§ 15-767 Annual goals; notification

In accordance with 20 United States Code section 1414, the parents of a child with a disability shall be notified regarding the progress that the child is making toward meeting the annual goals as provided in the child’s individualized education program.

§ 15-769 Appropriation and apportionment; approval of program

A. Except as provided in this section, any pupil who is a child with a disability shall be included in the entitlement to state aid computed as provided in chapter 9, article 5 of this title and apportionment made as provided in section 15-973.

B. A district may budget using the group B weight for a homebound child with a disability if the educational program meets the minimum standards established by the state board of education. For purposes of computing the base support level, a school district shall not classify a pupil in more than one category of disability.

C. The appropriations and apportionment as provided in chapter 9, article 5 of this title shall not be granted to the governing board of a school district or county school superintendent unless the school district or county complies with this article and the conditions and standards prescribed by the superintendent of public instruction pursuant to rules of the state board of education for pupil identification and placement pursuant to sections 15-766 and 15-767.

D. If a pupil with a group B disability does not receive special education instructional services but receives at least one ancillary service, the pupil shall be considered a special education pupil for the group B funding. If the category of disability has both a resource and self-contained weight, the pupil shall be classified as in a resource program. For the purposes of this subsection, "ancillary service" means one of the following:

Physical therapy.
Occupational therapy.
Orientation and mobility training.
Sign language interpretation services.
A full-time aide needed for an individual pupil to benefit from the pupil's educational program as specified in the pupil's individualized education program.

§ 15-771 Preschool programs for children with disabilities; definition

A. Each school district shall make available an educational program for preschool children with disabilities who reside in the school district and who are not already receiving services that have been provided through the department of education. A charter school may choose to make available an educational program for preschool children with disabilities. The state board of education shall prescribe rules for use by school districts in the provision of educational programs for preschool children with disabilities. School districts are required to, and charter schools may, make available educational programs for preschool children who meet the definition of one of the conditions prescribed in paragraphs 1 through 5 of this subsection. For the purposes of calculating average daily membership, school districts and charter schools may count only those preschool children who meet the definition of one of the following conditions:

Hearing impairment.
Visual impairment.
Developmental delay.
Preschool severe delay.
Speech/language impairment.

B. The state board of education shall annually distribute to school districts and charter schools that choose to provide preschool programs pursuant to this section at least ten per cent of the monies it receives under 20 United States Code section 1411(c)(2) for preschool programs for children with disabilities. The state board shall prescribe rules for the distribution of the monies to school districts and charter schools.

C. The governing board of a school district or the appropriate approving body of a charter school may submit a proposal to the state board of education as prescribed by the state board to receive monies for preschool programs for children with disabilities as provided in this section. A school district that receives monies as provided in this section shall include the monies in the special projects section of the budget as provided in section 15-903, subsection F.

D. All school districts shall cooperate, if appropriate, with community organizations that provide services to preschool children with disabilities in the provision of the district's preschool program for children with disabilities.

E. A school district or charter school may not admit a child to a preschool program for children with disabilities unless the child is evaluated and recommended for placement as provided in sections 15-766 and 15-767.

F. For the purpose of allocating monies pursuant to 20 United States Code section 1419(g)(1)(B)(i), "jurisdiction" includes high school pupils whose parents reside within the boundaries of a common school district. The common school district shall ensure such high school pupils are not counted by any other school district.

G. For the purposes of this section, "preschool child" means a child who is at least three years of age but who has not reached the age required for kindergarten. A preschool child is three years of age as of the date of the child's third birthday. The governing board of a school district or the appropriate approving body of a charter school may admit otherwise eligible children who are within ninety days of their third birthday, if it is determined to be in the best interest of the individual child. Children who are admitted to programs for preschool children before their third birthday are entitled to the same provision of services as if they were three years of age.

§ 15-773 Transfer of parental rights at age of majority

A. When a pupil with a disability reaches eighteen years of age, all rights previously accorded to the pupil's parent under part B of the individuals with disabilities education act (20 United States Code sections 1400 through 1420) and all rights previously accorded to the pupil's parent under the laws of this state are transferred to the pupil, unless the pupil has been declared legally incompetent.

B. A pupil with a disability who is at least eighteen years of age but under twenty-two years of age and who has not been declared legally incompetent, and who manifests the capacity to give and gives informed consent, may execute a delegation of right to make educational decisions pursuant to this section for the purpose of appointing the pupil's parent or agent to represent the educational interests of the pupil. A student shall have the right to terminate the agreement at any time and resume the right to make decisions regarding their education.

C. The delegation of right to make educational decisions shall meet all of the following requirements:

Contain language indicating the pupil is eighteen years of age or older but under twenty-two years of age.
Contain language that the pupil intends to delegate the pupil's educational rights under state and federal law to a specified individual who is at least eighteen years of age.
Contain language that the pupil has not been declared legally incompetent.
Contain language that the pupil is entitled to be present during the development of any individualized education plan and that any issues or concerns raised by the pupil will be addressed.
Not exceed one year in duration, but may be renewed with the written or other formal authorization of the pupil and the person who accepts the delegation each year until the pupil reaches twenty-two years of age.
Contain language permitting the pupil to terminate at any time.
Be signed by the pupil or contain some other manifestation of assent that the pupil has agreed to the terms of the delegation.
Be signed or assented to by the person who accepts the delegation.
Be notarized.

D. A notarized instrument that is signed or assented to by the pupil and the person who accepts the delegation and that is in substantially the following form shall be presumed to satisfy the requirements of subsection C:

Delegation of Right to Make Educational Decisions

I, __________________, am eighteen years of age but under twenty-two years of age and a pupil who has the right to make educational decisions for myself under state and federal law. I have not been declared legally incompetent, and as of the date of the execution of this document, I delegate my right to give consent and to make decisions concerning educational matters to __________________, who will be considered my "parent" for the purposes of 20 United States Code section 1401 and will exercise all the rights and responsibilities concerning my education that are conferred on a parent pursuant to state and federal law. I understand and give my consent that ______________ will make all decisions relating to my education on my behalf. I understand that I am entitled to be present during the development of any individualized education plan and that any issues or concerns I may have will be addressed. This delegation will be in effect for one year from today's date and may be renewed only by my written or formal authorization. I understand that I have the right to terminate this agreement at any time and resume the right to make decisions regarding my education.

E. The delegation of right to make educational decisions pursuant to this section may be given in writing, by audio or video means or in any other alternative format that is necessitated by the pupil's disability.

§ 15-774 Extraordinary special education needs fund; claim application; criteria; revisions; policies and procedures; annual report

A. The extraordinary special education needs fund is established consisting of legislative appropriations, gifts, grants and donations. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department of education shall administer the fund. The department may retain up to two percent of the monies in the fund for the purposes of administering the fund.

B. The department of education shall award monies from the fund to school districts and charter schools with eligible claims. A school district or charter school is eligible to receive monies from the fund if the school district or charter school demonstrates to the department that a student receiving special education services has incurred costs in the current year of at least the statewide per pupil funding average multiplied by three.

C. A school district or charter school may apply to the department of education for an extraordinary special education needs claim from the fund. The department of education shall prescribe the format of the application, which shall do all of the following:

Demonstrate extraordinary needs, including describing and documenting student services required and showing that the district or charter school is not able to absorb the costs of these services.
Demonstrate total costs incurred in the current year by the student for whom the school district or charter school is applying. A school district or charter school may submit a claim for up to the full fiscal year if the expense incurred at the time of filing will continue to be incurred in subsequent quarters until the end of the same fiscal year. Total costs submitted shall be itemized and attributable to the student for whom the claim is being submitted. A school district or charter school may submit a claim for expenses incurred as a result of an independent educational evaluation.
Evidence that before applying for monies from the fund the school district or charter school made sufficient efforts to seek but has not received funding to cover the costs of extraordinary needs applied for pursuant to paragraph 1 of this subsection from all other sources, including federal and other state sources of funding.

D. The department of education shall evaluate claim requests on a quarterly basis. If there are insufficient monies in the fund to fund all eligible claims within a given quarter, the department shall prioritize funding based on the difference in the claim amount submitted by the school district or charter school and the total funding the school district or charter school has received for that student. If a school district or charter school submits a claim with insufficient information, the department may notify the school district or charter school to revise its claim within two weeks.

E. If a school district or charter school incurs an additional expense for a student who received funding for a claim from the fund in the same fiscal year, the school district or charter school may revise the claim and may receive funding at the end of the quarter in which the claim is submitted, subject to available monies in the fund. The department shall prioritize revisions in the same manner as other claims pursuant to subsection D of this section.

F. The department of education shall annually adopt policies and procedures for the fund and post the policies and procedures on the department's website. The policies and procedures must include the average statewide per pupil funding amount for that fiscal year that will be used in the calculation prescribed in subsection B of this section.

G. On or before December 15 of each year, the department of education shall submit a report that outlines all of the following to the governor, the president of the senate, the speaker of the house of representatives, the joint legislative budget committee and the governor's office of strategic planning and budgeting and provide a copy of this report to the secretary of state:

The number of extraordinary special education needs claims that were funded in the previous year.
How school districts and charter schools used claim monies.
The total number of claims received in the previous year.

Article 4.1 Gifted Education for Gifted Children

§ 15-779 Definitions

In this article, unless the context otherwise requires:

"Gifted education" means appropriate academic course offerings and services that are required to provide an educational program that is an integral part of the regular school day and that is commensurate with the academic abilities and potential of a gifted pupil.
"Gifted pupil" means a child who is of lawful school age, who due to superior intellect or advanced learning ability, or both, is not afforded an opportunity for otherwise attainable progress and development in regular classroom instruction and who needs appropriate gifted education services, to achieve at levels commensurate with the child's intellect and ability.

§ 15-779.01 Powers and duties of the school district governing board

A. Because it is in the public interest to support unique opportunities for high-achieving and underachieving pupils who are identified as gifted, the governing board of each school district shall provide gifted education to gifted pupils identified as provided in this article.

B. The governing board shall modify the course of study and adapt teaching methods, materials and techniques to provide educationally for those pupils who are gifted and possess superior intellect or advanced learning ability, or both, but may have an educational disadvantage resulting from a disability or a difficulty in writing, speaking or understanding the English language due to an environmental background in which a language other than English is primarily or exclusively spoken. Identification of gifted pupils as provided in this subsection shall be based on tests or subtests that are demonstrated to be effective with special populations including those with a disability or difficulty with the English language.

C. If a pupil who was previously identified as a gifted pupil by a school district or charter school transfers into another school district, the school district into which the pupil transferred shall determine in a timely manner whether the pupil shall be identified as a gifted pupil in that school district. The school district into which the pupil transferred shall provide gifted education to transfer pupils who are identified as gifted without unreasonable delay.

§ 15-779.02 Gifted pupils; scope and sequence; annual financial report

A. The governing board of each school district shall develop a scope and sequence for the identification process of and curriculum modifications for gifted pupils to ensure that gifted pupils receive gifted education commensurate with their academic abilities and potentials. Programs and services for gifted pupils shall be provided as an integrated, differentiated learning experience during the regular school day. The scope and the sequence shall:

Provide for routine screening for gifted pupils using one or more tests adopted by the state board as prescribed in section 15-203, subsection A, paragraph 15 and section 15-779.01. School districts may identify any number of pupils as gifted but shall identify as gifted at least those pupils who score at or above the ninety-seventh percentile, based on national norms, on a test adopted by the state board of education.
Include an explanation of how gifted education for gifted pupils differs from regular education in such areas as:

(a) Content, including a broad based interdisciplinary curriculum.

(b) Process, including higher level thinking skills.

(d) Learning environment, including flexibility.

Include criteria, which shall be reviewed by the state board of education and the department of education at least once every four years, that address the elements of program design, identification, curriculum, instruction, social development, emotional development, professional development of administrators, teachers, school psychologists and counselors, parent involvement, community involvement, program assessment and budgeting. The budget information shall include separate data on identification and program costs and any other data required by the superintendent of public instruction to administer and evaluate the program effectively.

B. The governing board shall submit the scope and the sequence to the department of education for approval on or before July 1 if any changes were made during the previous fiscal year. The governing board shall submit the scope and the sequence to the department of education for approval on or before July 1 every five years if no changes were made during the previous five years. All school districts shall provide to gifted pupils gifted education commensurate with their academic abilities and potentials.

C. If the governing board fails to submit the scope and sequence for gifted pupils as prescribed in subsection B of this section or if the scope and sequence submitted by the governing board fails to receive full approval by the superintendent of public instruction, the school district is not eligible to receive state aid for the group A weight for seven per cent of the student count and shall compute the weighted student count for pupils in group A as provided in section 15-943 by adjustment of the student count accordingly. On or before December 1 of each year, the department of education shall notify those school districts that appear to be in noncompliance and note the specific areas of deficiencies that must be corrected on or before April 1 of the following year to be eligible to use the actual student count rather than an adjusted student count. On or before April 15 of each year, the department shall notify those districts that must use an adjusted student count for the next fiscal year's state aid as provided in chapter 9 of this title.

D. The annual financial report of a school district as prescribed in section 15-904 shall include the amount of monies spent on programs for gifted pupils and the number of pupils enrolled in programs or receiving services by grade level.

§ 15-779.03 Additional assistance for gifted programs

A. School districts that comply with section 15-779.01 and that submit evidence that all district teachers who have primary responsibility for teaching gifted pupils have obtained or are working toward obtaining the appropriate certification endorsement as required by the state board of education may apply to the department of education for additional funding for gifted programs equal to seventy-five dollars per pupil for four per cent of the district's student count, or two thousand dollars, whichever is more. As an alternate to the individual district application process, a governing board may request that a county school superintendent apply on its behalf as part of an educational consortium. The consortium may include school districts in more than one county. If additional monies are available after funding all eligible school districts or educational consortia, the additional monies shall be used to increase the per pupil amount for each district or educational consortium funded. If sufficient monies are not available to meet all requests, the state board of education shall determine the allocation of monies based on the comprehensiveness across grade levels, appropriateness to the population being served, utility and demonstrated effectiveness of the scope and sequence and the likelihood of the school district's or educational consortium's proposed program successfully meeting the needs of the gifted pupils. A school district shall include the monies it receives for gifted programs and services under this section in the special projects section of the budget.

B. School districts shall conduct evaluation studies of their programs for the gifted and submit information to the department of education regarding the results of their studies. The department shall develop evaluation guidelines, reporting forms, procedures and timelines.

C. Monies distributed pursuant to this section shall supplement and not supplant monies from other sources.

§ 15-779.04 Powers and duties of the superintendent of public instruction

The superintendent of public instruction shall:

Apportion monies to each school district for which an application to offer programs for gifted pupils has been approved by the department of education pursuant to rules adopted by the state board of education.
On request, assist school district governing boards to design, implement and evaluate programs for gifted pupils.
Ensure that the expenditure of monies authorized for programs for gifted pupils is consistent with this article.
Encourage the development of locally designed, innovative programs for gifted pupils.
Assist school districts in the development and implementation of staff development programs for administrators, teachers and counselors related to gifted pupils.
Encourage the development of procedures that assure the ongoing participation of parents of gifted pupils in the planning and evaluation of gifted education programs and services.

Article 5 Career and Technical Education and Vocational Education

§ 15-781 Definitions

In this article, unless the context otherwise requires:

"Career and technical education and vocational education" means vocational and technical preparation programs for pupils in grades nine through twelve.
"Occupation" means the principal employment, paid or unpaid, of a person.
"Program improvement services" means those activities, services and functions carried out to develop, support and improve the quality of career and technical education and vocational education programs, including teacher education, curriculum, guidance and administration.
"Program standards" means models designed to serve as a guide in the establishment, maintenance and evaluation of quality career and technical, vocational, and technical education programs.
"Training provider" means an agency, council or organization providing career and technical education and vocational education or employment training, or both.
"Unpaid employment" means work in recognized occupations for which there is no direct financial compensation.
"Vocational and technical preparation" means an organized set of specialized courses which is directly related to the preparation of persons for occupations that normally do not require a baccalaureate or advanced degree for paid or unpaid employment or advancement and which is designed in total to provide a pupil with sufficient skills for entry into an occupation.

§ 15-781.02 Meetings; majority required for validation; travel expenses; immunity

A. The state board of education shall hold four regular meetings annually at times it directs under the provisions of section 15-784 for the purposes of providing career and technical education and vocational education. Special meetings may be held on the call of the presiding officer.

B. Concurrence of a majority of all members of the board is necessary for validation of an act of the board.

C. Members shall be allowed travel expenses and reimbursement for subsistence, as provided by title 38, chapter 4, article 2, to be paid on claims approved by the superintendent of public instruction, as other claims against the state are paid, from the appropriation for the board authorized in the general appropriations act.

E. The superintendent of public instruction is the executive officer of the board.

§ 15-782 Career and technical education and vocational education

A. A school having satisfactory facilities and equipment and which is fit to provide career and technical education and vocational education, such as agriculture, business and office education, health occupations, home economics, industrial education, marketing and distribution and public and personal services, shall, upon application made by the governing board to the state board of education, be designated to maintain a department consisting of such career and technical education and vocational education programs and program improvement services for pupils in grades seven through twelve.

B. Instruction in the department shall be of a practical character.

C. The governing board shall employ trained instructors with qualifications fixed by the state board of education, shall provide suitable classrooms and laboratory facilities for such instruction according to rules established by the state board of education and may provide a tract of land, together with buildings, machinery, tools, equipment and appliances, suitable for field work in agriculture.

§ 15-782.01 Instructors; specialized teaching certificate; qualifications; rules; definition

A. In addition to any other current certification issued, the state board of education shall issue a specialized standard teaching certificate in STEM or career and technical education to a person who provides instruction in a career and technical education course or program or STEM-related course that is offered by a school district or career technical education district if the person does all of the following:

Demonstrates expertise in the subject matter in which the person will provide instruction.
Demonstrates at least five years of work experience in the subject matter in which the person will provide instruction.
Complies with the fingerprinting and background check requirements prescribed in section 15-512.

B. The state board of education shall adopt rules to carry out the purposes of this section. A person who is issued a certificate pursuant to this section is not required to meet any requirement prescribed in section 15-532, 15-533 or 15-756.09 or as may be further prescribed by law.

C. For the purposes of this section, "STEM" means science, technology, engineering and mathematics.

§ 15-782.02 Career and technical education and vocational education programs; fingerprint clearance card; expanded hours; tuition

A. For the purposes of the career technical education district's participation in any student financial assistance program authorized by title IV of the higher education act of 1965, as amended (20 United States Code section 1070 et seq.), career technical education districts may offer vocational education programs beyond secondary education to adult students who have either graduated from high school or obtained a general equivalency diploma with training to prepare the adults for gainful employment. These programs may not be offered for college-level credit unless authorized through a dual credit agreement with an accredited college. Secondary education students may also be enrolled in career technical education district courses that are administered at a postsecondary level for college-level credit. Such courses may also qualify secondary education students for high school credit.

B. Persons who are over twenty-two years of age shall not attend vocational programs in high school buildings during regular school hours, except that a person who is over twenty-two years of age may attend vocational programs other than massage therapy programs during regular school hours on a central campus that is owned and operated or leased and operated by a career technical education district pursuant to section 15-393, subsection D, paragraph 4 if the vocational program has additional student capacity after the enrollment of persons who are twenty-two years of age or younger. A person who is over twenty-two years of age shall not be admitted to or attend a vocational program during regular school hours pursuant to this subsection unless the person has a valid fingerprint clearance card pursuant to title 41, chapter 12, article 3.1. The costs of the fingerprint clearance card shall be paid by the applicant. A career technical education district shall immediately notify in writing the parent or guardian of each pupil under eighteen years of age who is in a vocational program during regular school hours when a person who is over twenty-two years of age enrolls in the vocational program.

C. Any person may file a complaint with the state board of vocational education under rules adopted by the state board of education acting as the state board of vocational education regarding an alleged violation of federal or state law by a career technical education district, including any student financial assistance program authorized by title IV of the higher education act of 1965, as amended (20 United States Code section 1070 et seq.), governing adult students who enroll in a career technical education district pursuant to subsection A of this section.

D. The department of education shall distribute twenty-six dollars for every day that a full-time student attends an extended year or summer school program in a career technical education district and thirteen dollars for every day that a part-time student attends an extended year or summer school program in a career technical education district, subject to appropriation, except that the department of education shall not distribute monies pursuant to this section for any student who has either graduated from high school or obtained a general equivalency diploma or who has reached twenty-two years of age, whichever occurs first.

E. School districts with career and technical education and vocational education programs may operate those programs for more than one hundred seventy-five days per year, with expanded hours of service.

F. Career and technical education and vocational education programs run by school districts may charge tuition to offset expenses associated with serving adult students.

§ 15-783 Evaluation of career and technical education and vocational education programs

The governing board of a school district shall provide for a self-evaluation of its career and technical education and vocational education programs annually. The assessment shall be conducted in cooperation with and with assistance from business, industry or labor representatives. The evaluation shall be conducted in the manner prescribed by the state board of education and the results shall be submitted to the department of education as prescribed by the state board.

§ 15-784 Vocational education; acceptance of congressional acts; appropriation; distribution of federal monies

A. The state assents to the provisions and accepts the benefits of the vocational education act of 1917, as amended, and the Carl D. Perkins vocational education act of 1984, as amended by the Carl D. Perkins vocational and applied technological education act amendments of 1990, as amended by the Carl D. Perkins vocational and applied technology act of 1998.

B. The state board of education is the state board of vocational education for the purposes of the acts. The state treasurer is designated custodian for vocational education for the purposes of the acts. The state treasurer shall receive and provide for the custody and disbursement of all monies paid to the state for the purposes of vocational education.

C. There is appropriated from the general fund of the state sufficient monies to meet the requirements of the acts of Congress.

D. The state board of education may distribute the monies it receives as provided in subsection A of this section to any eligible recipient of the monies under the federal law.

E. The state board of education shall distribute to the community college districts in this state at least fifteen percent of the monies received as provided in subsection A of this section. Community college tuition financing districts are not eligible to receive monies pursuant to this section.

§ 15-785 Career and technical education and vocational education schools; expenses; allocations from federal funds

Any school district may organize schools or classes in accordance with the provisions of the federal law accepted by section 15-784 and the rules and regulations of the state board of education. The school district shall be eligible for allocations from federal funds and from the appropriation for the state board of an amount which is not more than seventy-five per cent of all the expenditures for vocational education in such schools or classes. The state board shall make allocations upon signed statements of assurances and reports from the school districts covering the details of such expenditures.

§ 15-786 Acceptance of gifts or grants; fund; unexpended monies

A. The state board of education may accept gifts or grants of monies or property from public or private sources. The state board shall place the monies in a separate account designated as the career and technical education and vocational education fund.

B. If all or part of the monies accepted by the state board as provided in subsection A are not expended prior to the end of the fiscal year in which the gift or grant was accepted, the remaining balance of the amount remains in the career and technical education and vocational education fund until needed and does not revert to the state general fund at the close of the fiscal year.

§ 15-787 Eligibility; allocation; plan

A. A school district or a district formed for the purposes of this article as prescribed by the terms of this article may be eligible for allocation of funds from the state board of education provided the district offering career and technical education and vocational education meets minimum standards and requirements approved by the state board of vocational education.

B. The state board of education may allocate from its available appropriation any amount it deems appropriate for the use of a school district or a district formed for the purposes of this article, and such allocation may be for administrative costs, equipment or capital outlay.

C. The state board of education shall develop a state plan for career and technical education and vocational education which provides for the distribution of career and technical education and vocational education funds to school districts or districts formed for the purposes of this article meeting the minimum requirements provided for in the state plan for career and technical education and vocational education.

§ 15-788 Exemption from certain requirements; exception

A. Any building, structure, addition or alteration constructed by vocational education students shall be exempt from section 34-201 and title 41, chapter 23 and may be constructed without advertising for bids. This exemption shall not be construed to permit teaching or nonteaching school personnel to do any construction, building or alteration to a building while under the jurisdiction of a school program without complying with section 34-201 and title 41, chapter 23.

B. All purchases of supplies, materials and equipment for such construction by career and technical education and vocational education students shall follow bidding procedures as established by the state board of education pursuant to section 15-213.

§ 15-789 Contracting and cooperative arrangements for career and technical education and vocational education; advisory committee

A. The governing board of a school district may contract with any public body or with any private person for the purpose of providing career and technical education and vocational education. For the purposes of this subsection, school districts are exempt from section 15-213.

B. School districts or community college districts may independently or jointly make application for career and technical education and vocational education monies.

C. School districts and community college districts may provide for joint cooperation among themselves and with each other and with any educational institution eligible to receive career and technical education and vocational education monies as provided in section 15-784 for the purposes of providing career and technical education and vocational education and for the use of each other's facilities and personnel.

D. School districts, among themselves or with community college districts, may jointly purchase, sell, lease or lease-purchase land, buildings or other real or personal property for the purposes of providing career and technical education and vocational education, including establishing a jointly owned and operated vocational and technical center, if:

The districts enter into an intergovernmental agreement or other written contract pursuant to section 11-952.
The state board of education and, if a community college district is a party to the agreement, the governing board of the community college district approve the intergovernmental agreement or other written contract.

E. If one or more school districts, among themselves or with a community college district, enter into an intergovernmental agreement or other written contract to establish a jointly owned and operated vocational and technical center, the governing boards of the districts shall establish a joint advisory committee for the vocational and technical center consisting of:

At least one member of each school district governing board or a designated district staff representative appointed by the respective school district governing board.
If a community college is a party to the agreement, members of the community college district board or designated district staff representatives appointed by the community college district board equal in number to the total number of persons appointed pursuant to paragraph 1 of this subsection.
Members engaged in commerce or industry in this state equal in number to the total number of persons appointed pursuant to paragraph 1 of this subsection, jointly appointed by the district governing boards.

F. A school district and a community college district may jointly accept gifts or grants of monies, land or other real or personal property for the purpose of providing career and technical education and vocational education and may administer or dispose of the property in accordance with the purpose of the gift or grant.

§ 15-790 Primary responsibility of school districts, career technical education districts, community college districts and universities

A. School district governing boards have the primary responsibility for providing career exploration and entry-level career and technical education and vocational education.

B. Career technical education districts have the primary responsibility for providing career and technical education preparation programs designed to prepare students for advanced career and technical education or entry into the workforce.

C. Community college district governing boards have the primary responsibility for providing postsecondary technical education and advanced career and technical education and vocational education, including the retraining and upgrading of a student's occupational skills. Community college district governing boards in conjunction with the state board for private postsecondary education have the major responsibility for providing career and technical education and vocational education that focuses on the economic development of this state.

D. Universities have the primary responsibility for research related to career and technical education and vocational education.

§ 15-791 Arizona agricultural youth organization special plate fund

A. The Arizona agricultural youth organization special plate fund is established consisting of monies received pursuant to section 28-2436. The state board of education acting as the state board for vocational and technological education shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the entity that provides the thirty-two thousand dollars to the department of transportation pursuant to section 28-2436. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The state board of education acting as the state board for vocational and technological education shall annually allocate monies from the fund, excluding administrative fees, to student career and technical education organizations that promote agricultural education programs at middle schools, junior high schools and high schools in this state, that connect students to careers in science, business and the technology of agriculture and that develop student leadership opportunities in agriculture. The organizations shall use the allocated monies for the organizations' operations and activities and for student scholarships.

B. On notice from the state board of education acting as the state board for vocational and technological education, 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 fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

Article 6 Board Examination System

§ 15-792 Declaration of purpose and policy

The legislature declares and finds that:

It is in the interest of this state to greatly increase the proportion of students who enter high school and who subsequently leave those high schools with the skills needed to compete effectively in a global economy that provides world class wages only to workers with world class skills.
It is in the interest of students in this state, their families and schools to provide a college and work readiness assessment to students.
The purpose of this article is to greatly increase the proportion of students in this state who leave high school with the skills and knowledge needed to succeed in college in a way that does not significantly increase the cost of high school.

§ 15-792.01 Definitions

In this article, unless the context otherwise requires:

"Approved board examination system" means a board examination system that has been approved by an interstate compact on board examination systems.
"Board examination system" means a complete instructional system that includes all of the following components:

(a) A coherent group of courses that collectively constitutes a core curriculum at the high school level.

(b) A comprehensive syllabus for each course.

(d) High quality examinations that are closely aligned with the course syllabus.

(e) Professional scoring of examinations.

(f) Teacher education that is designed to train teachers to properly teach those courses.

"Grand Canyon diploma" means a high school diploma that is offered to any student who demonstrates readiness for college level mathematics and English according to standards prescribed by an interstate compact on board examination systems, who has passing grades on an additional set of required approved board examinations in core academic courses as determined by the state board of education, including the arts, history and science, and who successfully completes a course in economics.
"Readiness for college level mathematics and English" means that a student has the English and mathematics skills and knowledge needed to succeed in college level courses that count toward a degree or certificate without taking remedial or developmental coursework.

§ 15-792.02 Board examination system; private contractor; duties; rules

A. The state board of education shall select and enter into a five-year agreement with a private organization to operate and administer the board examination system prescribed in this article.

B. The private organization selected by the state board of education shall:

Identify, select and collaborate with a national organization that is devoted to issues concerning education and the economy and that is selected by the state board of education to provide technical services to develop and maintain an interstate system of approved board examination systems.
Provide data and other information to a national organization that is devoted to issues concerning education and the economy and that is selected by the state board of education to provide technical services the national organization deems necessary to set appropriate performance standards for the students in this state. The department of education shall provide data and other information to the private organization.
Conduct technical studies required by the state board of education to compare the scores on approved board examinations by the students in this state to scores on the statewide assessment and other measures deemed necessary to ensure the efficacy of the approved board examinations. The private organization may contract with other entities that are selected by the state board of education for the purpose of conducting technical studies.
In cooperation with the superintendent of public instruction and the state board of education, solicit monies from all lawful private and public sources, including federal monies, to offset the costs of instruction provided to students under this article.
Exercise general supervision over the implementation of the approved board examination systems in this state for the duration of the five-year contract. These examination systems shall meet the following criteria:

(a) Appear on a list of approved board examination systems selected by the interstate compact.

(b) Be periodically evaluated to ensure alignment with internationally benchmarked standards selected by an interstate compact on board examination systems.

(c) Have common passing scores that are prescribed by an interstate compact on board examination systems and that are set to the level of skills and knowledge needed to succeed in college-level courses offered by community colleges in this state that count toward a degree or certificate without taking remedial or developmental coursework. The private organization, on approval of the state board of education and with input from representatives from school districts, charter schools, community colleges and universities in this state, shall designate two individuals to represent this state in an interstate compact on board examination systems to prescribe the common passing scores prescribed in this subdivision.

Prepare an annual report for the state board of education, which shall forward it to the legislature and the governor, on the progress made toward the goals established in this article and provide copies to the secretary of state. Participating schools and the department of education shall provide data to the private organization as needed in order to complete the annual report.
Identify, select and represent this state on the national governing body of an interstate compact on board examination systems, as approved by the state board of education, to enable states to collaborate in the following areas:

(a) Selecting board examination systems for use in those states.

(b) Providing technical assistance required to implement the board examination systems effectively in those states for the use of those examinations.

(c) Entering into contracts with board examination system providers or with a national organization that is devoted to issues concerning education and the economy to develop new or improved board examination systems.

Select this state's representatives in an interstate compact on board examination systems in accordance with policies prescribed by that interstate compact.

C. The state board of education shall adopt rules to carry out the purposes of this section and shall select college and career ready examinations that are available to pupils in grade eight, including those pupils who intend to participate in the board examinations system in high school. The examinations shall be selected to provide data to pupils, their families and schools regarding the pupil's level of preparation for entry into a college and career ready pathway in high school.

D. Pursuant to rules adopted by the state board of education, the department of education shall develop a system to track the academic progress of pupils who participate in the board examination system.

E. All actions taken pursuant to this section shall comply with the family educational rights and privacy act of 1974 (P.L. 93-380), as amended.

§ 15-792.03 Grand Canyon diploma

A. The private organization selected pursuant to section 15-792.02 shall develop the Grand Canyon diploma to be approved and adopted by the state board of education. School districts and charter schools in this state may choose to offer a Grand Canyon diploma. A high school student who is enrolled in a school district or charter school that offers a Grand Canyon diploma may choose to pursue a Grand Canyon diploma.

B. Students are eligible for the Grand Canyon diploma and may be awarded the Grand Canyon diploma at the end of grade ten or during or at the end of grade eleven or twelve if the students meet the criteria. Students who elect to pursue a Grand Canyon diploma shall participate in a board examination system that consists of internationally benchmarked instructional programs of study chosen by an interstate compact on board examination systems.

C. Students who are eligible for a Grand Canyon diploma shall have multiple pathways available to them and may:

Enroll the following semester in a community college under the jurisdiction of a community college district in this state. Community colleges under the jurisdiction of a community college district in this state shall admit students who obtain a Grand Canyon diploma and who otherwise meet the qualifications for admission. The school district or charter school from which the student earned the Grand Canyon diploma shall include that student in the school district's or charter school's average daily membership and shall continue to receive per pupil funding for a student who earns a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled as a full-time student in a community college under the jurisdiction of a community college district in this state. The school district or charter school shall subtract twenty percent of its average daily membership amount and reimburse the community college if the student has earned a Grand Canyon diploma and is attending a community college as a full-time student. If the student attends community college on a community college campus, the school district or charter school shall reimburse the community college district for the amount of operating and capital outlay full-time student equivalency monies. For the purposes of this paragraph, the amount of operating full-time student equivalency monies shall be equivalent to the average appropriation per full-time student equivalent for all community college districts as calculated pursuant to section 15-1466, subsection C, paragraph 2. Fifty percent of the remaining balance of the per pupil funding shall be used for teacher and pupil incentives, including scholarship programs, to offset the costs of board examinations and to provide customized programs of assistance for students who do not pass the board examinations. The other fifty percent shall be used for maintenance and operations, including capital. Under this paragraph, a student who earns a Grand Canyon diploma is responsible for tuition. A student who earns a Grand Canyon diploma may enroll in community college courses offered on a community college campus or a high school campus, or both. Notwithstanding any other law, community college districts shall not classify a student who remains in high school pursuant to this paragraph as a full-time equivalent student. Students who take courses on high school campuses pursuant to this paragraph shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve. The expenditure by community college districts of payments from the school district or charter school to the community colleges under this section shall not be included under the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona. If the instruction provided under this paragraph is offered on a community college campus, the funding and implementation mechanics between the school district or charter school and the community college shall be determined by agreement between the school district or charter school and the community college.
Remain in high school and enroll in additional advanced preparation board examination programs that are designed to prepare those students for admission to selective postsecondary institutions that offer baccalaureate degree programs. These board examination programs shall be selected from a list approved by an interstate compact for board examination systems. The school district or charter school from which the student became eligible for the Grand Canyon diploma shall include that student in the school district's or charter school's average daily membership and shall continue to receive per pupil funding for a student who is eligible for a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in approved advanced preparation board examination programs at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the pupil becomes eligible for a Grand Canyon diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve.
Enroll in a full-time career and technical education program offered on a high school campus or a career technical education district campus, or any combination of these campuses. Students who elect to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the pupil becomes eligible for a Grand Canyon diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve. The school district or charter school from which the student became eligible for the Grand Canyon diploma shall include that student in the school district's or charter school's average daily membership and shall continue to receive per pupil funding for a student who is eligible for a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in an approved full-time career and technical education program. Notwithstanding any other law, if the instruction provided under this paragraph is provided by a career technical education district in a full-time career and technical education program that is designed to lead to a certificate that is awarded by an industry or recognized as meeting industry standards, the sum of the average daily membership for that pupil shall not exceed 1.25, and the average daily membership shall be apportioned at 1.0 for the career technical education district and 0.25 for the school district.
Remain in high school without completing the next level of board examination systems and participate in programs of study available to the students through the school district or charter school. The school district or charter school will continue to include the students in the school district's or charter school's count and shall continue to receive per pupil funding for the students until those students would have otherwise graduated at the end of grade twelve, as long as those students are enrolled in approved programs of study at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall be eligible to participate in extracurricular activities, including interscholastic sports.
If accepted for admission to a university under the jurisdiction of the Arizona board of regents, enroll in the university after completion of additional high school coursework designed to prepare students for admission to selective postsecondary institutions that offer baccalaureate degrees. The school district or charter school from which the student earned the Grand Canyon diploma shall include that student in the school district's or charter school's average daily membership and shall continue to receive per pupil funding for a student who earns a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve for as long as that student is enrolled as a full-time student in the university. One-third of the school district's or charter school's average daily membership amount shall be retained by the school district or the operator of the charter school. One-third of the school district's or charter school's average daily membership amount shall be retained for use at the school site. One-third of the school district's or charter school's average daily membership amount shall be distributed as follows:

(a) One-half shall be deposited in a scholarship account established and managed by the school district from which the student graduated specifically for a student who qualifies for the Grand Canyon diploma and who attends a university under the jurisdiction of the Arizona board of regents as a full-time student.

(b) One-half shall be retained by the university where the student is enrolled.

D. Students who pursue but do not meet the eligibility requirements for a Grand Canyon diploma at the end of grade ten or eleven shall receive a customized program of assistance during the next school year that addresses areas in which the student demonstrated deficiencies in the approved board examinations. These students may retake the board examinations at the next available examination administration. Students may choose to return to a traditional academic program without completing the board examination system curriculum.

E. The private organization selected pursuant to section 15-792.02 shall develop detailed requirements for students to become eligible for the Grand Canyon diploma, as approved and adopted by the state board of education, that include at least the following:

Demonstrated skills and knowledge in English and mathematical literacy to be successful in college level courses offered by the community colleges in this state that count toward a degree or certificate without taking remedial or developmental coursework as determined by an interstate compact on board examination systems.
Satisfactory grades on approved board examinations in subjects determined to be necessary to prepare a student to enter community college without remedial or developmental coursework and that do not include coursework required exclusively for entry into an institution that awards baccalaureate degrees.

Article 6.1 Competency-Based College-Ready Educational Pathways

§ 15-795 Declaration of purpose and policy

The legislature finds and declares that:

The purpose of this article is to enable all students to progress toward clearly defined learning outcomes at their own pace, allowing them to advance when they demonstrate the desired level of mastery rather than progressing based on a predetermined amount of seat time in a classroom.
Competency-based learning can support high-expectations outcomes such as college readiness. Competency-based learning can benefit all students, allowing additional preparation for students who are struggling to master academic content before they move to the next level while allowing those who can advance to do so when they are ready.
Competency-based strategies provide flexibility in the way that credit can be earned or awarded and provide students with personalized learning opportunities.
Competency-based systems require the clear articulation of desired learning outcomes, including the application and creation of knowledge and the development of important skills and dispositions, as well as assessments that can measure student mastery.

§ 15-795.01 Competency-based college-ready educational pathways

In accordance with the rules adopted by the state board of education pursuant to section 15-203, subsection A, paragraph 38, students who are eligible for a high school diploma through the fulfillment of a defined competency-based college-ready educational pathway shall have multiple pathways available to them and may:

Enroll the following fall semester in a community college under the jurisdiction of a community college district in this state. Community colleges under the jurisdiction of a community college district in this state shall admit students who obtain a high school diploma through the fulfillment of a defined competency-based educational pathway and who otherwise meet the qualifications for admission. The school district or charter school from which the student earned the high school diploma shall include that student in the school district's or charter school's student count and shall continue to receive per pupil funding for a student who earns a high school diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled as a full-time student in a community college under the jurisdiction of a community college district in this state. The school district or charter school shall subtract twenty percent of its average daily membership amount and reimburse the community college if the student has earned a high school diploma and is attending a community college as a full-time student. If the student attends community college on a community college campus, the school district or charter school shall reimburse the community college district for the amount of operating and capital outlay full-time student equivalency monies. For the purposes of this paragraph, the amount of operating full-time student equivalency monies shall be equivalent to the average appropriation per full-time student equivalent for all community college districts as calculated pursuant to section 15-1466, subsection C, paragraph 2. Fifty percent of the remaining balance of the per pupil funding shall be used for teacher and pupil incentives, including scholarship programs, to offset the costs of competency-based pathways and to provide customized programs of assistance for students who do not demonstrate mastery. The other fifty percent shall be used for maintenance and operations, including capital. Under this paragraph, a student who earns a high school diploma is responsible for tuition. A student who earns a high school diploma may enroll in community college courses offered on a community college campus or a high school campus, or both. Notwithstanding any other law, community college districts shall not classify a student who remains in high school pursuant to this paragraph as a full-time equivalent student. Students who take courses on high school campuses pursuant to this paragraph shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve. The expenditure by community college districts of payments from the school district or charter school to the community colleges under this section shall not be included under the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona. If the instruction provided under this paragraph is offered on a community college campus, the funding and implementation mechanics between the school district or charter school and the community college shall be determined by agreement between the school district or charter school and the community college.
Remain in high school and participate in programs of study available to students through the school district or charter school. The school district or charter school shall continue to include that student in the school district's or charter school's student count and shall continue to receive per pupil funding for a student who is eligible for a high school diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in approved advanced preparation programs of study at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the student becomes eligible for a high school diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve.
Enroll in a full-time career and technical education program offered on a high school campus or a career technical education district campus, or any combination of these campuses. A student who elects to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the pupil becomes eligible for a high school diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve. The school district or charter school from which the student became eligible for the high school diploma shall include that student in the school district's or charter school's student count and shall continue to receive per pupil funding for a student who is eligible for a high school diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in an approved full-time career and technical education program. Notwithstanding any other law, if the instruction provided under this paragraph is provided by a career technical education district in a full-time career and technical education program that is designed to lead to a certificate that is awarded by an industry or recognized as meeting industry standards, the sum of the average daily membership for that pupil shall not exceed 1.25, and the average daily membership shall be apportioned at 1.0 for the career technical education district and 0.25 for the school district.
If accepted for admission to a university under the jurisdiction of the Arizona board of regents, enroll in the university after completion of additional high school coursework designed to prepare students for admission to selective postsecondary institutions that offer baccalaureate degrees. The school district or charter school from which the student earned the high school diploma shall include that student in the school district's or charter school's student count and shall continue to receive per pupil funding for a student who earns a high school diploma until that student would otherwise have graduated at the end of grade twelve for as long as that student is enrolled as a full-time student in the university. One-third of the school district's or charter school's average daily membership amount shall be retained by the school district or the operator of the charter school. One-third of the school district's or charter school's average daily membership amount shall be retained for use at the school site. One-third of the school district's or charter school's average daily membership amount shall be distributed as follows:

(a) Fifty percent of this amount shall be deposited in a scholarship account established and managed by the school district or charter school from which the student graduated specifically for a student who qualifies for a diploma and who attends a university under the jurisdiction of the Arizona board of regents as a full-time student.

(b) Fifty percent of this amount shall be retained by the university where the student is enrolled.

Article 7 Alternative Education Programs and Alternative Schools

§ 15-796 Alternative education programs; alternative schools; requirements; funding; definitions

A. The governing board of a school district may contract with any public body or private person for the purpose of providing alternative education programs or alternative schools.

B. On the approval of the parent or guardian of a student or of a student who is an emancipated person, the superintendent of a school district may recommend to the governing board the placement of the student in an alternative education program or alternative school as provided in this article.

C. An alternative education program or alternative school may deliver the annual required instructional time or instructional hours prescribed in section 15-797, subsection D or any other section to students on any day of the week.

D. An alternative education program or alternative school may enroll and begin to receive funding for a student without a withdrawal form from the student's previous school if the withdrawal has been verified in the student accountability information system and the alternative education program or alternative school retains electronic documentation validating the withdrawal.

E. Notwithstanding any other law, if the previous school of a student who is enrolled in an alternative education program or alternative school incorrectly codes the student as a graduate in the student accountability information system, the alternative education program or alternative school in which the student is currently enrolled may continue to enroll the student. On notification that a student who has been incorrectly coded as a graduate is enrolled in an alternative education program or alternative school, the department of education shall allocate funding for the student beginning on the date of the student's enrollment in the alternative education program or alternative school.

F. For the purposes of this section:

"Alternative education" means the modification of the school course of study and adoption of teaching methods, materials and techniques, including using any instructional time models pursuant to section 15-901.08, to provide educationally for students in grades six through twelve who are unable to profit from the regular school course of study and environment.
"Student accountability information system" means the student accountability information system established by section 15-1041.

§ 15-797 Financial provisions for students in alternative education programs and alternative schools

A. School districts may count students for daily attendance as provided in section 15-901 who are not actually and physically in attendance in a recognized common or high school but who are enrolled in and actually and physically in attendance in an alternative education program or alternative school that is provided by any public body or private person and that meets the standards that the state board of education and the governing board prescribe for the course of study given in the common and high schools.

B. The governing board of a school district shall prescribe procedures for verifying the attendance of students enrolled in an alternative education program or alternative school that is provided by any public body or private person.

C. The governing board may pay for the cost of educating students as provided in this article not to exceed the cost per student count as provided in section 15-824, subsection G.

D. School districts operating alternative education programs or alternative schools pursuant to this section and charter schools operating on approved alternative calendars pursuant to section 15-183 shall comply with the annual hours of instruction requirement pursuant to section 15-901.

§ 15-798 Governing board responsibility

Notwithstanding the provisions of this article, governing boards retain the responsibility for the education of the pupils under their jurisdiction.

Chapter 8 School Attendance

Article 1 School Year and Attendance Requirements

§ 15-801 Holidays

When July 4, Veterans' Day, December 25 or Thanksgiving Day occurs within the school week, the schools shall be closed and the compensation of the teachers shall not be diminished on that account. School district governing boards may declare a recess during the Christmas holiday season of not to exceed two school weeks, and teachers shall receive compensation during the recess.

§ 15-802 School instruction; exceptions; violations; classification; definitions

A. Every child between the ages of six and sixteen years shall attend a school and shall be provided instruction in at least the subjects of reading, grammar, mathematics, social studies and science. The person who has custody of the child shall choose a public, private or charter school or a homeschool as defined in this section to provide instruction or shall sign a contract to participate in an Arizona empowerment scholarship account pursuant to section 15-2402.

B. The parent or person who has custody shall do the following:

If the child will attend a public, private or charter school, enroll the child in and ensure that the child attends a public, private or charter school for the full time school is in session. In accordance with guidelines adopted by the department of education, school districts and charter schools shall require and maintain verifiable documentation of residency in this state for pupils who enroll in the school district or charter school. If a child attends a school that is operated on a year-round basis, the child shall regularly attend during school sessions that total not less than one hundred eighty school days or two hundred school days, as applicable, or the equivalent as approved by the superintendent of public instruction.
If the child will attend a private school or homeschool, file an affidavit of intent with the county school superintendent stating that the child is attending a regularly organized private school or is being provided with instruction in a homeschool. The affidavit of intent shall include:

(a) The child's name.

(b) The child's date of birth.

(d) The names, telephone numbers and addresses of the persons who currently have custody of the child.

If the child will attend homeschool, the child has not reached eight years of age by September 1 of the school year and the person who has custody of the child does not desire to begin home instruction until the child has reached eight years of age, file an affidavit of intent pursuant to paragraph 2 of this subsection stating that the person who has custody of the child does not desire to begin homeschool instruction.

C. An affidavit of intent shall be filed within thirty days from the time the child begins to attend a private school or homeschool and is not required thereafter unless the private school or the homeschool instruction is terminated and then resumed. The person who has custody of the child shall notify the county school superintendent within thirty days of the termination that the child is no longer being instructed at a private school or a homeschool. If the private school or homeschool instruction is resumed, the person who has custody of the child shall file another affidavit of intent with the county school superintendent within thirty days.

D. A person is excused from the duties prescribed by subsection A or B of this section if any of the following is shown to the satisfaction of the school principal or the school principal's designee:

The child is in such physical or mental condition that instruction is inexpedient or impracticable.
The child has completed the high school course of study necessary for completion of grade ten as prescribed by the state board of education.
The child has presented reasons for nonattendance at a public school that are satisfactory to the school principal or the school principal's designee. For the purposes of this paragraph, the principal's designee may be the school district governing board.
The child is over fourteen years of age and is employed, with the consent of the person who has custody of the child, at some lawful wage earning occupation.
The child is enrolled in a work training, career education, career and technical education, vocational education or manual training program that meets the educational standards established and approved by the department of education.
The child was either:

(a) Suspended and not directed to participate in an alternative education program.

(b) Expelled from a public school as provided in article 3 of this chapter.

The child is enrolled in an education program provided by a state educational or other institution.

E. Unless otherwise exempted in this section or section 15-803, a parent of a child between six and sixteen years of age or a person who has custody of a child, who does not provide instruction in a homeschool and who fails to enroll or fails to ensure that the child attends a public, private or charter school pursuant to this section or fails to sign a contract to participate in an empowerment scholarship account pursuant to section 15-2402 is guilty of a class 3 misdemeanor. A parent who fails to comply with the duty to file an affidavit of intent to provide instruction in a homeschool is guilty of a petty offense.

F. If a child will be educated pursuant to an empowerment scholarship account pursuant to section 15-2402, the department of education shall provide a list of students participating in empowerment scholarship accounts to the school superintendent of the county where the pupil resides.

G. For the purposes of this section:

"Educated pursuant to an empowerment scholarship account" means a child whose parent has signed a contract pursuant to section 15-2402 to educate the child outside of any school district or charter school and in which the parent may but is not required to enroll the child in a private school or to educate the child through any of the methods specified in section 15-2402.
"Homeschool" means a nonpublic school conducted primarily by the parent, guardian or other person who has custody of the child or nonpublic instruction provided in the child's home.
"Private school" means a nonpublic institution, other than the child's home, where academic instruction is provided for at least the same number of days and hours each year as a public school.

§ 15-802.01 Homeschooled children; eligibility to participate in interscholastic activities

A. Notwithstanding any other law, a child who resides within the attendance area of a public school and who is homeschooled shall be allowed to try out for interscholastic activities on behalf of the public school in the same manner as a pupil who is enrolled in that public school. Registration, age eligibility requirements, fees, insurance, transportation, physical condition, qualifications, responsibilities, event schedules, standards of behavior and performance policies for homeschooled students shall be consistent with those policies established for students enrolled in that public school. The individual providing the primary instruction of a child who is homeschooled shall submit written verification that provides:

Whether the student is receiving a passing grade in each course or subject being taught.
Whether the student is maintaining satisfactory progress towards advancement or promotion.

B. A child who is homeschooled and who was previously enrolled in a public, private or charter school shall be ineligible to participate in interscholastic activities for the remainder of the school year during which the child was enrolled in a school.

C. A school district shall not contract with any private entity that supervises interscholastic activities if the private entity prohibits the participation of homeschooled children in interscholastic activities at public, private or charter schools.

§ 15-803 School attendance; exemptions; definitions

A. It is unlawful for any child who is between six and sixteen years of age to fail to attend school during the hours school is in session, unless either:

The child is excused pursuant to section 15-802, subsection D or section 15-901, subsection A, paragraph 5, subdivision (c).
The child is accompanied by a parent or a person authorized by a parent.
The child is provided with instruction in a homeschool.

B. A child who is habitually truant or who has excessive absences may be adjudicated an incorrigible child as defined in section 8-201. Absences may be considered excessive when the number of absent days exceeds ten per cent of the number of required attendance days prescribed in section 15-802, subsection B, paragraph 1.

C. For the purposes of this section:

"Habitually truant" means a truant child who is truant for at least five school days within a school year.
"Truant" means an unexcused absence for at least one class period during the day.
"Truant child" means a child who is between six and sixteen years of age and who is not in attendance at a public or private school during the hours that school is in session, unless excused as provided by this section.

§ 15-804 Attendance officer; appointment; salary

A. The governing board of a school district may appoint an attendance officer for the school district. The salary of the attendance officer shall be fixed by the governing board and paid from the funds of the school district.

B. If in the opinion of the governing boards of two or more school districts one officer will adequately serve such districts, such officer may be appointed by the districts jointly. His salary may be apportioned as the governing boards provide and shall be paid from the funds of the school districts.

§ 15-805 Attendance officer; powers and duties

A. The attendance officer may enforce the law relating to:

School attendance of children between the ages of six and sixteen years.
The provisions of section 15-802, subsection E, and section 15-803.
Employment of children between the ages of six and sixteen years.

B. The attendance officer may:

Issue a citation to an adult or child who is alleged to be in violation of laws specified in subsection A of this section to appear before a court of competent jurisdiction and shall advise the person to whom the citation is issued that failure to appear at the time and place specified in the citation may result in the issuance of a warrant for the person's arrest. A citation that is issued to a child under eighteen years of age shall require the child's parent or person having custody to appear with the child at the time and place specified in the citation. The attendance officer shall notify the child's parent or person having custody that the citation was issued and that the parent or person having custody is required to appear in court with the child and shall give proof of the notice to the court.
Issue a citation on an Arizona traffic ticket and complaint form for any violation of laws specified in subsection A of this section.
Report a violation of a law specified in subsection A of this section to the local law enforcement agency and request an investigation of the violation. The law enforcement agency shall, when sufficient cause exists, refer the matter for prosecution.
Enter all places where children may be employed to investigate and enforce the law.

§ 15-806 Excuse from school attendance

A. The governing board of each school district and the governing body of each charter school shall adopt a policy governing the excuse of pupils for religious purposes. The policy may permit a pupil to be excused from school attendance for religious purposes, including participation in religious exercises or religious instruction. If the policy permits a pupil to be excused for religious purposes, the policy shall stipulate the conditions under which the excuse will be granted. These conditions shall include at least the following:

The person who has custody of the pupil has given written consent.
Any religious instruction or exercise takes place at a suitable place away from school property designated by the church or religious denomination or group.

B. The governing board of each school district and the governing body of each charter school shall adopt a policy governing the excuse of pupils from school attendance. The policy shall require the school district to apply to the department of education for authorization of school closure for the following reasons:

Widespread illness for any period of three consecutive days or more.
Adverse weather conditions for any period of three consecutive days or more.
Concerted refusal by students to attend classes for any period of three consecutive days or more.
Threats of violence against school property, school personnel or pupils for any period of one day or more.
Situations affecting the safety of persons or property resulting from fire, flooding or floodwater, an earthquake, a hazardous material event or another cause if approved by the department of education.

§ 15-807 Absence from school; notification of parent or person having custody of pupil; immunity; excused absence

A. If a pupil in a kindergarten program or in any of grades one through eight is absent from school without excuse as provided in this article or without notice to the school in which the pupil is enrolled of authorization of the absence by the parent or other person who has custody of the pupil, the school in which the pupil is enrolled shall make a reasonable effort to promptly telephone and notify the parent or other person who has custody of the pupil of the pupil's absence from school:

Within two hours after the first class in which the pupil is absent for a pupil in a kindergarten program or in any of grades one through six.
Within two hours after the first class in which the pupil is absent for a pupil in grade seven or eight if the first class in which the pupil is absent is the pupil's first class of the school day.
Within five hours after the first class in which the pupil is absent for a pupil in grade seven or eight if the first class in which the pupil is absent is after the pupil's first class of the school day.

B. On or before the enrollment of a pupil in a kindergarten program or in any of grades one through eight, the school district shall notify the parent or other person who has custody of the pupil:

Of the parent's or other person's responsibility to authorize any absence of the pupil from school and to notify the school in which the pupil is enrolled in advance or at the time of any absence.
That the school district requires the parent or other person who has custody to provide at least one telephone number, if available, for purposes of this section. The school district shall require that the telephone number, if available, be given at the time of enrollment of the pupil in school and that the school of enrollment be promptly notified of any change in the telephone number.

C. A school district, governing board members of a school district and employees or agents of a school district are not liable for failure to notify the parent or other person who has custody of a pupil of the pupil's absence from school as provided in this section.

D. In identifying excused absences pursuant to section 15-901, subsection A, paragraph 1, the department of education shall identify an absence due to the mental or behavioral health of a pupil as an excused absence. The department may adopt guidelines and rules for the purposes of this subsection, including determining what constitutes an absence due to the mental or behavioral health of a pupil.

§ 15-808 Arizona online instruction; reports; definitions

A. Arizona online instruction shall be instituted to meet the needs of pupils in the information age. The state board of education shall select district public schools and state-approved charter authorizers shall sponsor charter schools to be online course providers or online schools. The state board of education and state-approved charter authorizers shall develop standards for the approval of online course providers and online schools based on the following criteria:

The depth and breadth of curriculum choices.
The variety of educational methodologies employed by the school and the means of addressing the unique needs and learning styles of targeted pupil populations, including computer-assisted learning systems, virtual classrooms, virtual laboratories, electronic field trips, e-mail, virtual tutoring, online help desk, group chat sessions and noncomputer-based activities performed under the direction of a certificated teacher.
The availability of an intranet or private network to safeguard pupils against predatory and pornographic elements of the internet.
The availability of filtered research access to the internet.
The availability of private individual e-mail between pupils, teachers, administrators and parents in order to protect the confidentiality of pupil records and information.
The availability of faculty members who are experienced with computer networks, the internet and computer animation.
The extent to which the school intends to develop partnerships with universities, community colleges and private businesses.
The services offered to populations with developmental disabilities.
The grade levels that will be served.

B. Each new school that provides online instruction shall provide online instruction on a probationary status. After a new school that provides online instruction has clearly demonstrated the academic integrity of its instruction through the actual improvement of the academic performance of its students, the school may apply to be removed from probationary status. The state board of education or the state-approved charter authorizer that sponsored the charter school shall remove from Arizona online instruction any probationary school that fails to clearly demonstrate improvement in academic performance within three years measured against goals in the approved application and the state's accountability system. All pupils who participate in Arizona online instruction shall reside in this state. Pupils who participate in Arizona online instruction are subject to the testing requirements prescribed in chapter 7, article 3 of this title. On enrollment, the school shall notify the parents or guardians of the pupil of the state testing requirements. If a pupil fails to comply with the testing requirements and the school administers the tests pursuant to this subsection to less than ninety-five percent of the pupils in Arizona online instruction, the pupil shall not be allowed to participate in Arizona online instruction.

C. The state board of education and state-approved charter authorizers shall develop annual reporting mechanisms for schools that participate in Arizona online instruction.

D. The department of education shall compile the information submitted in the annual reports by schools participating in Arizona online instruction. The department of education shall submit the compiled report to the governor, the speaker of the house of representatives and the president of the senate by November 15 of each year.

E. Each school selected for Arizona online instruction shall ensure that a daily log is maintained for each pupil who participates in Arizona online instruction. The daily log shall describe the amount of time spent by each pupil participating in Arizona online instruction pursuant to this section on academic tasks. The daily log shall be used by the school district or charter school to qualify the pupils who participate in Arizona online instruction in the school's average daily attendance calculations pursuant to subsection F of this section.

F. If a pupil is enrolled in a school district or charter school and also participates in Arizona online instruction, the sum of the average daily membership, which includes enrollment as prescribed in section 15-901, subsection A, paragraph 1, subdivisions (a) and (b) and daily attendance as prescribed in section 15-901, subsection A, paragraph 5, for that pupil in the school district or charter school and in Arizona online instruction shall not exceed 1.0. If the pupil is enrolled in a school district or a charter school and also participates in Arizona online instruction and the sum of the daily membership or daily attendance for that pupil is greater than 1.0, the sum shall be reduced to 1.0 and shall be apportioned between the school district, unless the school district is a career technical education district subject to the apportionment requirements of section 15-393, or charter school and Arizona online instruction based on the percentage of total time that the pupil is enrolled or in attendance in the school district or charter school and Arizona online instruction. The uniform system of financial records shall include guidelines for the apportionment of the pupil enrollment and attendance as provided in this subsection. Pupils in Arizona online instruction do not incur absences for purposes of this subsection and may generate an average daily attendance of 1.0 for attendance hours during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year. For kindergarten programs and grades one through eight, average daily membership shall be calculated by dividing the instructional hours as reported in the daily log required in subsection E of this section by the applicable hourly requirements prescribed in section 15-901. For grades nine through twelve, average daily membership shall be calculated by dividing the instructional hours as reported in the daily log required in subsection E of this section by nine hundred. The average daily membership of a pupil who participates in online instruction shall not exceed 1.0. Average daily membership shall not be calculated on the one hundredth day of instruction for the purposes of this section. Funding shall be determined as follows:

A pupil who is enrolled full-time in Arizona online instruction shall be funded for online instruction at ninety-five percent of the base support level that would be calculated for that pupil if that pupil were enrolled as a full-time student in a school district or charter school that does not participate in Arizona online instruction. Charter additional assistance and district additional assistance shall be calculated in the same manner they would be calculated if the student were enrolled in a district or charter school that does not participate in Arizona online instruction.
A pupil who is enrolled part-time in Arizona online instruction shall be funded for online instruction at eighty-five percent of the base support level that would be calculated for that pupil if that pupil were enrolled as a part-time student in a school district or charter school that does not participate in Arizona online instruction. Charter additional assistance and district additional assistance shall be calculated in the same manner they would be calculated if the student were enrolled in a district or charter school that does not participate in Arizona online instruction.

G. If the academic achievement of a pupil declines while the pupil is participating in Arizona online instruction, the pupil's parents, the pupil's teachers and the principal or head teacher of the school shall confer to evaluate whether the pupil should be allowed to continue to participate in Arizona online instruction.

H. To ensure the academic integrity of pupils who participate in online instruction, Arizona online instruction shall include multiple diverse assessment measures and the proctored administration of required state standardized tests.

I. A school district or charter school may not charge a fee to a pupil who takes an examination in a particular course to obtain academic credit, pursuant to section 15-701.01, subsection I, from the school district or charter school if the academic credit for a course was previously earned in an Arizona online instruction course or at any public school in this state. Any test administered pursuant to this subsection shall be an assessment that is aligned to the course-relevant state academic standards.

J. For the purposes of this section:

"Full-time student" means:

(a) A student who is at least five years of age before September 1 of a school year and who is enrolled in a school kindergarten program that meets at least three hundred forty-six hours during the school year.

(b) A student who is at least six years of age before September 1 of a school year, who has not graduated from the highest grade taught in the school and who is regularly enrolled in a course of study required by the state board of education. For first, second and third grade students, the instructional program shall meet at least seven hundred twelve hours. For fourth, fifth and sixth grade students, the instructional program shall meet at least eight hundred ninety hours during the school year.

(c) Seventh and eighth grade students or ungraded students who are at least twelve, but under fourteen, years of age on or before September 1 and who are enrolled in an instructional program of courses that meets at least one thousand sixty-eight hours during the school year.

(d) For high schools, a student who has not graduated from the highest grade taught in the school district, or an ungraded student who is at least fourteen years of age on or before September 1, and who is enrolled in at least four courses throughout the year that meet at least nine hundred hours during the school year. A full-time student shall not be counted more than once for computation of average daily membership.

"Online course provider" means a school other than an online school that is selected by the state board of education or a state-approved charter authorizer to participate in Arizona online instruction pursuant to this section and that provides at least one online academic course that is approved by the state board of education.
"Online school" means a school that provides at least four online academic courses or one or more online courses for the equivalent of at least five hours each day for one hundred eighty school days and that is a charter school that is sponsored by a state-approved charter authorizer or a district public school that is selected by the state board of education to participate in Arizona online instruction.
"Part-time student" means:

(a) Any student who is enrolled in a program that does not meet the definition in paragraph 1 of this subsection shall be funded at eighty-five percent of the base support level that would be calculated for that pupil if that pupil were enrolled as a part-time student in a school district or charter school that does not participate in Arizona online instruction.

(b) A part-time student of seventy-five percent average daily membership shall be enrolled in at least three subjects throughout the year that offer for first, second and third grade students at least five hundred thirty-four instructional hours in a school year and for fourth, fifth and sixth grade students at least six hundred sixty-eight instructional hours in a school year. A part-time student of fifty percent average daily membership shall be enrolled in at least two subjects throughout the year that offer for first, second and third grade students at least three hundred fifty-six instructional hours in a school year and for fourth, fifth and sixth grade students at least four hundred forty-five instructional hours in a school year. A part-time student of twenty-five percent average daily membership shall be enrolled in at least one subject throughout the year that offers for first, second and third grade students at least one hundred seventy-eight instructional hours in a school year and for fourth, fifth and sixth grade students at least two hundred twenty-three instructional hours in a school year.

(c) For seventh and eighth grade students, a part-time student of seventy-five percent average daily membership shall be enrolled in at least three subjects throughout the year that offer at least eight hundred one instructional hours in a school year. A part-time student of fifty percent average daily membership shall be enrolled in at least two subjects throughout the year that offer at least five hundred thirty-four instructional hours in a school year. A part-time student of twenty-five percent average daily membership shall be enrolled in at least one subject throughout the year that offers at least two hundred sixty-seven instructional hours in a school year.

(d) For high school students, a part-time student of seventy-five percent average daily membership shall be enrolled in at least three subjects throughout the year that offer at least six hundred seventy-five instructional hours in a school year. A part-time student of fifty percent average daily membership shall be enrolled in at least two subjects throughout the year that offer at least four hundred fifty instructional hours in a school year. A part-time student of twenty-five percent average daily membership shall be enrolled in at least one subject throughout the year that offers at least two hundred twenty-five instructional hours in a school year.

"State-approved charter authorizer" means any charter school sponsor authorized pursuant to section 15-183.

§ 15-808.01 Virtual schools; proctored assessments; virtual setting; exemptions; definitions

A. Except as provided in subsection C of this section, each virtual school may administer any assessment that complies with section 15-741 in a virtual setting, if the virtual school does all of the following:

Assigns a specific date and time to administer the assessment to participating students in a virtual setting, except as provided in subsection B of this section.
Administers the assessment in a synchronous session that is initiated and managed by personnel who are designated by the virtual school.
Provides at least one proctor for every ten participating students to monitor the participating students through synchronous video for the entire testing session. For the purposes of this paragraph, if the testing platform does not allow integrated camera proctoring, the virtual school shall require each participating student to use a second device to provide the proctor with synchronous video that shows the student and the area immediately surrounding the student for the entire testing session.
Requires each participating student to remain in the virtual setting until the student is instructed to exit the testing platform by the student's assigned proctor.
Verifies each assessment that is submitted by a participating student in a virtual setting pursuant to this subsection.

B. A virtual school that administers an assessment pursuant to subsection A of this section may also administer the assessment in person to any specific student or group of students at a date and time assigned by the virtual school if the virtual school identifies an exception to the virtual setting that is necessary or appropriate, including an exception for a student who has one or more testing accommodations in the student's individualized education program as defined in section 15-761 or section 504 plan as defined in section 15-731 or for an English learner as defined in section 15-751 who needs an in-person assessment.

C. A virtual school may not administer any of the following pursuant to subsection A of this section unless the assessment is available to be proctored in a virtual setting:

A college readiness or workforce assessment provided by a national college and career readiness assessment provider.
An advanced placement examination.
An international baccalaureate examination.
An alternate assessment as indicated in a student's individualized education program as defined in section 15-761.
An English language proficiency assessment administered pursuant to section 15-756.

D. When sufficient monies are available, the department of education shall include a provision for testing in a virtual setting pursuant to subsection A of this section in each contract that the department executes or extends with a third-party vendor for the provision of any assessment that is not listed in subsection C of this section. Notwithstanding subsection A of this section, a virtual school may not begin administering an assessment pursuant to subsection A of this section until the first school year after the school year in which the department executes or extends a contract or executes a contract amendment for the assessment that includes the provision prescribed by this subsection.

E. This section does not require a virtual school to administer any assessment, including the assessments listed in subsection C of this section, in a virtual setting.

F. For the purposes of this section:

"Assessment" means a formal assessment, test or examination that a public school in this state is required by state or federal law to administer to students who are enrolled in the school.
"Virtual school" includes:

(a) A school that participates in Arizona online instruction pursuant to section 15-808.

(b) A dropout recovery program that is provided online pursuant to section 15-901.06.

Article 1.1 Open School Enrollment

§ 15-816 Definitions

In this article, unless the context otherwise requires:

"Nonresident pupil" means a pupil who resides in this state and who is enrolled in or is seeking enrollment in a school district other than the school district in which the pupil resides.
"Open enrollment" means a policy that is adopted and implemented by a school district governing board to allow resident transfer pupils to enroll in any school within the school district, to allow resident pupils to enroll in any school located within other school districts in this state and to allow nonresident pupils to enroll in any school within the district pursuant to section 15-816.01.
"Resident pupil" means a pupil whose residence is within the attendance area of a school.
"Resident school" means a school that is within the designated attendance area in which a pupil resides.
"Resident transfer pupil" means a resident pupil who is enrolled in or seeking enrollment in a school that is within the school district but outside the attendance area of the pupil's residence.

§ 15-816.01 Open enrollment policies; preference; selection process; transportation; reporting requirements; public awareness effort

A. School district governing boards shall establish policies and shall implement an open enrollment policy without charging tuition. Tuition may be charged to nonresident pupils only if the tuition is authorized under section 15-764, subsection C, section 15-797, subsection C, section 15-823, subsection A, section 15-824, subsection A or section 15-825 or if two school districts have entered into a voluntary agreement for the payment of tuition for certain pupils. These policies shall include the information required by subsection I of this section, basic information that is needed to request enrollment and that is consistent with guidance and state and federal law regarding pupil privacy and civil rights, and information regarding the provision of transportation or resources for transportation. The policies must be easily accessible from the home page on each school's website and be available in English and in Spanish or in any other language used by a majority of the populations served by the school or school district. A school district shall update on each school's website the school's capacity and whether the school is currently accepting open enrollment students, by grade level, at least once every twelve weeks unless there are no changes to report for the individual school. If a school has any other separate capacity by specialized program, the information required pursuant to this subsection shall also be posted by specialized program. Schools shall accept pupils throughout the school year as capacity allows. Pupils who are denied access due to capacity shall be informed that they are on a wait list and of the details regarding the process prescribed in subsection E of this section. Pupils shall be selected as seats become available.

B. A school district shall enroll at any time any resident pupil who applies for enrollment to the school district pursuant to this section. A school district shall give enrollment preference to and reserve capacity for all of the following:

Resident pupils.
Pupils returning to the school from the prior year.
Siblings of pupils already enrolled.

C. A school district may give enrollment preference to children who:

Are in foster care.
Meet the definition of unaccompanied youth prescribed in the McKinney-Vento homeless assistance act (P.L. 100-77; 101 Stat. 482; 42 United States Code section 11434a).
Attend a school that is closing.
Are children of a member of the armed forces of the United States who either is on active duty or was killed in the line of duty.

D. A school district may give enrollment preference to and reserve capacity for all of the following:

Pupils who are children of persons who are employed by or at a school in the school district.
Resident transfer pupils and their siblings.
Pupils who meet additional criteria established and published by the school district governing board pursuant to subsection A of this section.

E. If remaining capacity at a school, as determined by the school district governing board, is insufficient to enroll all pupils who submit a timely request, the school or school district shall select pupils through an equitable selection process such as a lottery, except that preference shall be given to the siblings of a pupil selected through an equitable selection process such as a lottery.

F. Except as provided in subsections A through E of this section, a school that is operated by a school district may not limit admission based on any of the following:

Ethnicity or race.
National origin.
Sex.
Income level.
Disability.
Proficiency in the English language.
Athletic ability.

G. The governing board of the district educating the pupil may provide transportation limited to not more than thirty miles each way to and from the school of attendance or to and from a pickup point on a regular transportation route or for the total miles traveled each day to an adjacent district for eligible nonresident pupils who meet the economic 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.

H. The governing board of the district educating the pupil shall provide transportation limited to not more than thirty miles each way to and from the school of attendance or to and from a pickup point on a regular transportation route or for the total miles traveled each day to an adjacent district for nonresident pupils with disabilities whose individualized education program specifies that transportation is necessary to fulfill the program.

I. The state board of education shall adopt a model format that school districts may use for describing open enrollment options to ensure clarity and consistency for parents in understanding their enrollment options as described in this section and enrollment capacity at each school, including the ability to choose any school within the school district of residence or any other school district in this state. The state board of education shall adopt rules, policies and guidance consistent with state and federal law for school districts to use while enrolling students pursuant to this article. Pursuant to the supervisory duties of the superintendent of public instruction, the department of education shall investigate and enforce any complaints that the department receives or substantiated claims of unlawful or inappropriate enrollment practices by school districts pursuant to state and federal law and shall refer any complaints received regarding charter schools to the state board for charter schools to investigate and enforce. The department of education shall regularly update the state board of education on its investigations pursuant to this subsection.

J. The department of education shall provide an annual report that informs the public and policymakers of the open enrollment participation rate by school district, school and county, including the number of pupils, by student subgroup designation, in each school and school district that are open enrolled as resident pupils, resident transfer pupils or nonresident pupils for each school district and the school districts and zip codes from which students are enrolling. By fiscal year 2022-2023, this participation report shall also include the number of pupils enrolled in charter schools and the school districts from which those pupils are enrolling.

K. Subject to the availability of appropriated monies, each January the state board of education shall design a public awareness effort to distribute materials that do all of the following:

Communicate to the public the ability to choose any public school in this state.
Direct the public to resources to learn about school choice options in this state.
Instruct the public how to request enrollment for pupils.

L. The state board of education may include other options in its informational materials and messaging developed under subsection K of this section.

M. In designing the public awareness effort and distributing materials under subsection K of this section, the state board of education may collaborate with both:

Public and private partners to assist the state board in achieving the objectives prescribed in subsection K of this section.
The department of education in providing parents and the public with informational resources.

§ 15-816.07 District and school immunity

A school district and its employees are immune from civil liability for decisions that concern the acceptance or rejection of a nonresident pupil for enrollment and that are based on a good faith application of the requirements of this article and the standards adopted pursuant to this article.

Article 2 Admission Requirements

§ 15-821 Admission of children; required age

A. Unless otherwise provided by article 1.1 of this chapter or by any other law, all schools shall admit children who are between the ages of six and twenty-one years, who reside in the school district and who meet the requirements for enrollment in one of the grades or programs offered in the school. A school may refuse to admit a child who has graduated from a high school with a recognized diploma.

B. If a preschool program for children with disabilities is maintained, a child is eligible for admission as prescribed in section 15-771.

C. If a kindergarten program is maintained, a child is eligible for admission to kindergarten if the child is five years of age. A child is deemed five years of age if the child reaches the age of five before September 1 of the current school year. A child is eligible for admission to first grade if the child is six years of age. A child is deemed six years of age if the child reaches the age of six before September 1 of the current school year. The governing board may admit children who have not reached the required age as prescribed by this subsection if it is determined to be in the best interest of the children. For children entering the first grade, such determination shall be based upon one or more consultations with the parent, parents, guardian or guardians, the children, the teacher and the school principal. Such children must reach the required age of five for kindergarten and six for first grade by January 1 of the current school year.

D. Notwithstanding any other law, a child who resides with a family member other than the child's parent while awaiting the outcome of a legal guardianship or custody proceeding is deemed to reside in the school district where that family member resides if the family member provides written documentary proof of one of the following:

The family member is attempting to obtain legal guardianship of the child in an unresolved and uncontested guardianship proceeding commenced in superior court. The family member shall provide documentation to the school district within thirty days of enrollment that the family member is attempting to obtain legal guardianship of the child. On obtaining legal guardianship, the family member shall provide documentation to the school district.
The family member is attempting to obtain custody of the child in an unresolved and uncontested child custody proceeding commenced in superior court. The family member shall provide documentation to the school district within thirty days of enrollment that the family member is attempting to obtain custody of the child. On obtaining custody, the family member shall provide documentation to the school district.

§ 15-823 Admission; residents of other school districts; nonresidents of this state; tuition

A. Except as provided in subsections B, C, D, E, F, G and H of this section, children of nonresidents of this state may be admitted on payment of a reasonable tuition fixed by the governing board.

B. The governing board shall admit children of nonresident teaching and research faculty of community college districts and state universities and children of nonresident graduate or undergraduate students of community college districts and state universities whose parent's presence at the district or university is of international, national, state or local benefit without payment of tuition.

C. The governing board shall admit children who are residents of the United States but who are nonresidents of this state without payment of tuition if evidence indicates that the child's physical, mental, moral or emotional health is best served by placement with a grandparent, brother, sister, stepbrother, stepsister, aunt or uncle who is a resident within the school district, unless the governing board determines that the placement is solely for the purpose of obtaining an education in this state without payment of tuition.

D. The governing board may admit nonresident foreign students who are in exchange programs without payment of tuition or as it may otherwise prescribe.

E. Notwithstanding subsection D of this section, beginning in the 2016-2017 school year the governing board may admit the same number of nonresident foreign students who are in exchange programs and who are recipients of a J-1 visa pursuant to federal law, that is equal to the number of resident students enrolled in that local education agency who are currently participating in a foreign exchange program, as determined by the department, without the payment of tuition.

F. The governing board may admit children who are residents of the United States without payment of tuition if evidence indicates that because the parents are homeless or the child is abandoned, as defined in section 8-201, the child's physical, mental, moral or emotional health is best served by placement with a person who does not have legal custody of the child and who is a resident within the school district, unless the governing board determines that the placement is solely for the purpose of obtaining an education in this state without payment of tuition.

G. The governing board may admit children who are residents of the United States, but who are nonresidents of this state, without payment of tuition if all of the following conditions exist:

The child is a member of a federally recognized Indian tribe.
The child resides on Indian lands that are under the jurisdiction of the tribe of which the child is a member.
The area in the boundaries of the reservation where the child resides is located both in this state and in another state of the United States.
The governing board enters into an intergovernmental agreement with the governing board of the school district in another state in which the nonresident child resides. The intergovernmental agreement shall specify the number of nonresident children admitted in this state and the number of resident children that are admitted by the governing board in another state.

H. The governing board may admit children who are residents of the United States, but who are nonresidents of this state, without payment of tuition if all of the following conditions exist:

The child is enrolled in a year-round residential boarding academy located in this state specializing in intensive instruction and skill development in sports, music or acting.
The child's parents have executed a current notarized guardianship agreement covering the child while enrolled at the academy, which is a condition of enrollment at the academy and authorizes academy representatives to act on behalf of the child's parent or legal guardian in making all decisions on a daily basis as to the child's activities and needs for medical, educational and other personal issues.

I. The governing board shall charge reasonable tuition for the number of nonresident pupils who reside in another state and who are admitted by a governing board in this state pursuant to subsection G of this section that exceeds the number of resident pupils from this state who are admitted into a school district by the other state.

J. The governing board of a school district shall pay reasonable tuition for the number of resident pupils who reside in that school district and who are admitted by a school district in another state pursuant to subsection G of this section that exceeds the number of nonresident pupils from that other state who are admitted by the governing board into that school district in this state.

K. Children admitted under this section shall be counted or not counted as resident pupils as prescribed in section 15-824, subsection D.

L. Except as provided in subsections E, H and K of this section, a school district or a charter school shall not include pupils who are not residents of this state in the district's or charter school's student count and shall not obtain state funding for those pupils.

§ 15-823.01 Admission of nonresident pupils; active military duty; definitions

A. Notwithstanding any other law, a pupil complies with the residency requirements for school attendance in a local education agency if the parent of the pupil is transferred to or is pending transfer to a military installation within this state while on active military duty pursuant to an official military order.

B. A local education agency shall accept an application for enrollment and course registration by electronic means for a pupil who meets the requirements prescribed in subsection A of this section, including enrollment in a specific school or program within the local education agency.

C. The parent of a pupil who meets the requirement prescribed in subsection A of this section shall provide proof of residence to the local education agency within ten days after the arrival date provided on official documentation. The parent may use the address of any of the following as proof of residence for the purposes of this subsection:

A temporary on-base billeting facility.
A purchased or leased home or apartment.
Any federal government housing or off-base military housing, including off-base military housing that may be provided through a public-private venture.

D. For the purposes of this section:

"Active military duty" means full-time military duty status in the active uniformed service of the United States, including members of the national guard and the state military reserve on active duty orders.
"Military installation" means a base, camp, post, station, yard, center, homeport facility for any ship or other installation under the jurisdiction of the United States department of defense or the United States coast guard.

§ 15-824 Admission of pupils of other school districts; homeless children; tuition charges; definitions

A. The governing board of a school district shall admit pupils from another school district or area as follows:

On the presentation of a certificate of educational convenience issued by the county school superintendent pursuant to section 15-825.
For three hundred fifty or fewer pupils, to a high school without the presentation of a certificate of educational convenience, if the pupil is a resident of a common school district within this state that is not within a high school district and that does not offer instruction in the pupil's grade. The three hundred fifty or fewer pupil limitation prescribed in this paragraph does not apply to a small isolated school district as defined in section 15-901. The school membership of such pupils is deemed, for the purposes of determining student count and providing a free and appropriate public education pursuant to the individuals with disabilities education act (20 United States Code chapter 33) and for apportionment of state aid, to be enrollment in the school district of the pupil's attendance.
To a high school without the presentation of a certificate of educational convenience if the pupil is a resident of a transporting school district that does not offer instruction in the pupil's grade. Tuition shall be charged as prescribed in subsection E of this section for each pupil who is admitted pursuant to this paragraph. For the purposes of determining student count and for apportionment of state aid, the school membership of these pupils is deemed to be enrollment in the school district of the pupil's residence.

B. The residence of the person having legal custody of the pupil is considered the residence of the pupil, except as provided in subsection C of this section and in section 15-825, subsection B.

C. The current residence of a homeless pupil who does not reside with the person having legal custody of the pupil is considered to be the residence of the homeless pupil if the person having legal custody of the pupil is a resident of the United States. For the purposes of this subsection, "homeless pupil" means a pupil who has a primary residence that is:

A supervised publicly or privately operated shelter designed to provide temporary living accommodations.
An institution that provides a temporary residence for individuals intended to be institutionalized.
A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

D. The school enrollment of a pupil who is a resident of this state or who is admitted to a school district under section 15-823, subsection B, C, E, F or H is deemed, for the purpose of determining student count and for apportionment of state aid, to be enrollment in the school district of actual attendance, except as provided in section 15-825, subsection A, paragraph 1 and subsection A, paragraph 3 of this section and except for pupils for whom the superintendent of public instruction is charged tuition pursuant to section 15-825, subsections B and D and section 15-976 or for whom another school district is charged tuition as provided in subsections E and G of this section.

E. If tuition is required to be charged for pupils attending school in a school district other than that of their residence, the tuition shall be determined and paid in the following manner:

The number of high school pupils for which tuition may be charged to a transporting school district is equal to the average daily membership in the district of attendance from the transporting school district for the prior fiscal year. This number may be adjusted if the transporting school district increases its revenue control limit and district support level.
The tuition for pupils attending school in a school district other than that of their residence, except pupils provided for by section 15-825, subsections B and D and any pupils included in the definition of child with a disability in section 15-761, shall not exceed the cost per student count of the school district attended, as determined for the current school year. Tuition for pupils included in the definition of child with a disability in section 15-761 shall not exceed the actual cost of the school attended for each pupil as determined for the current year. The school district of attendance shall not include in the cost per student count a charge for transportation if no transportation is provided, and the charge for transportation shall not exceed the actual costs of providing transportation for the pupils served, as prescribed in the uniform system of financial records. The school district of attendance shall provide the school district of residence with the final tuition charge for the current year and with an estimate of the budget year's tuition charge by May 1 of the current year. The school district of residence shall pay at least one-fourth of the total amount of the estimated tuition by September 30, December 31 and March 31, and it shall pay the remaining amount it owes after adjustments are made by June 30.
Notwithstanding paragraph 2 of this subsection and subsection G of this section, if two school districts enter into a voluntary agreement for the payment of tuition, the agreement shall specify the method for computing the tuition amount and the timing of the payments. The agreement shall not be longer than five consecutive years. If two school districts enter into an agreement and choose to renew the agreement, each renewal shall not be longer than five consecutive years. The agreement shall specify that a parent or legal guardian of a pupil affected by a tuition agreement entered pursuant to this section or section 15-816.01 may choose not to send the pupil or pupils to a school district or school that is a party to the agreement.
Tuition of pupils as provided in section 15-825, subsection D shall not exceed the excess costs for group B children with disabilities minus the amount generated by the equalization base as determined in section 15-971, subsection A for these pupils. A school district may submit to the superintendent of public instruction a record of actual excess costs to educate a group B child with a disability if the costs are higher than the calculated excess costs or if a pupil has been placed in a private school for special education services. The superintendent shall determine if the additional costs will be paid, and if the costs are paid, whether the additional costs will be paid by the state or the resident district.
The amount received representing contributions to capital outlay as provided in subsection G, paragraph 1, subdivision (b) of this section shall be applied to the capital outlay fund or the debt service fund of the school district.
The amount received representing contributions to debt service as provided in subsection G, paragraph 1, subdivision (c) of this section shall be applied to the debt service fund of the school district if there is one. Otherwise the amount shall be credited to the capital outlay fund of the school district.

F. A school district may submit to the superintendent of public instruction a record of actual costs paid by the school district to educate a pupil who qualifies for a certificate of educational convenience under section 15-825, subsection B. If the actual costs for that pupil exceed the costs per student count computed pursuant to subsection G of this section, the superintendent of public instruction shall reimburse the school district for these additional costs subject to legislative appropriation.

G. For the purposes of this section:

"Costs per student count" means the sum of the following for the common or high school portion of the school district attended, whichever is applicable to the pupil involved, as prescribed in the uniform system of financial records:

(a) The actual school district expenditures for the regular education program subsection of the maintenance and operation section of the budget divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.

(b) The actual school district expenditures for the capital outlay section of the budget as provided in sections 15-903 and 15-905 excluding expenditures for transportation equipment and buildings if no transportation is provided and expenditures for the acquisition of building sites, divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.

(c) The actual school district expenditures for debt service divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.

"Legal custody" means:

(a) Custody exercised by the natural or adoptive parents with whom a pupil resides.

(b) Custody granted by order of a court of competent jurisdiction to a person or persons with whom a pupil resides unless the primary purpose for which custody was requested was to circumvent the payment of tuition as provided in this section.

§ 15-825 Certificates of educational convenience; issuance; effect on enrollment records; reporting requirements

A. A pupil who is precluded by distance, lack of adequate transportation facilities or a parent's or guardian's employment from attending a school in the school district or county of the pupil's residence or who resides in unorganized territory may apply to the pupil's school district of residence or, for a pupil who resides in unorganized territory, the school district of attendance for a certificate of educational convenience. If a pupil who resides in unorganized territory does not have a school district of attendance and seeks to apply for a certificate of educational convenience, the pupil's parent shall enroll the pupil in a school pursuant to article 1.1 of this chapter and apply to the school district that operates that school for a certificate of educational convenience. A school district that receives an application pursuant to this subsection shall submit the completed application to the county school superintendent electronically, in person or by regular mail. If it appears to the county school superintendent that it is not feasible for the pupil to attend a school in the school district or county of residence, the county school superintendent shall issue a certificate of educational convenience authorizing the pupil to attend a school in an adjoining school district or county, whether within or without this state. If a certificate of educational convenience is issued as provided in this subsection, the school enrollment of a pupil is as follows:

The school enrollment of a pupil who is precluded from attending a school in this state and who must attend school in another state, when certified to the county school superintendent by the official in charge of the school attended, is deemed for the purpose of determining student count to be enrollment in the school of the county or school district of the student's residence.
The school enrollment of a pupil from unorganized territory or from another school district is deemed for the purpose of determining student count to be enrollment in the school district of actual attendance.

B. The county school superintendent of any county in which a pupil is placed as described in this subsection shall issue a certificate of educational convenience for the pupil to attend school in the school district or adjoining school district to that in which the pupil is placed by an agency of this state or a state or federal court of competent jurisdiction in one of the following:

A state rehabilitation or corrective institution.
A foster home or child care agency or institution that is licensed and supervised by the department of child safety or the department of health services.
A residential facility that is operated or supported by the department of economic security or the department of health services.
Under the supervision of the department of juvenile corrections, a residence pursuant to the interstate compact on juveniles. Notwithstanding section 41-1959, the placing agency, department or institution shall provide the school district of attendance with the necessary information to enable the district to obtain a certificate of educational convenience pursuant to this subsection.

C. A pupil attending school under a certificate of educational convenience issued pursuant to subsection B of this section is deemed for the purpose of determining student count to be enrolled in the school district of attendance. The county school superintendent of any county shall not issue a certificate of educational convenience as provided in subsection B of this section if the pupil is placed in the same district of the pupil's parents' or legal guardians' residence or if the pupil is placed without a court order and the pupil's parents or legal guardians are not residents of this state.

D. If a certificate of educational convenience is issued as provided in subsection B of this section, or for a pupil whose parent or guardian is employed and domiciled by a state institution as prescribed by section 15-976, tuition may be charged as follows:

For group B children with disabilities:

(a) Who are from unorganized territory, whose parent or guardian is employed by a state institution as prescribed by section 15-976 or who have been issued a certificate of educational convenience pursuant to subsection B of this section, the superintendent of public instruction shall reimburse the district of attendance for the excess costs as provided in section 15-824, subsection E, paragraph 4.

(b) Who are from another school district, the school district of residence shall reimburse the district of attendance for the excess costs as provided in section 15-824, subsection E, paragraph 4.

For pupils who are precluded from attending a school in this state and who must attend a school in another state:

(a) If the pupil resides in a school district in this state, the district of residence shall pay the amount charged by the district of attendance.

(b) If the pupil resides in unorganized territory, the superintendent of public instruction shall pay the amount charged by the district of attendance.

E. The county school superintendent who issues a certificate of educational convenience shall notify the superintendent of public instruction of the issuance of the certificate. The superintendent of public instruction shall draw a warrant in favor of the school district of actual attendance for the amount charged, whether for common or high school attendance, as provided in section 15-824.

F. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for certificates of educational convenience shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

G. On or before January 1 of each year, each county school superintendent shall report to the department of education the total number of certificates of educational convenience that the county school superintendent issued pursuant to subsection A of this section during the previous calendar year and the total number of certificates of educational convenience that the county school superintendent issued pursuant to subsection B of this section during the previous calendar year.

H. The department of education shall maintain the reports received under subsection G of this section.

§ 15-825.01 Certificates of educational convenience; pupils attending out-of-state schools

A. A school district is eligible to receive payment from state school monies for excess tuition if the following conditions are met:

The county school superintendent issues a certificate of educational convenience pursuant to section 15-825, subsection A for one or more pupils who reside in the district to attend a school in an adjacent state that is proximate to the school district when the pupils are precluded by distance, lack of adequate transportation facilities or a parent's or guardian's employment from attending a school in the school district or county of the pupils' residence.
The superintendent of public instruction determines that the development of an interstate compact with another state or an intergovernmental agreement between the sending and receiving school districts, which provides for tuition-free attendance in the receiving district, is impracticable or not in the best interests of this state.
The total amount of tuition charged by the receiving district is greater than the equalization base amount as determined by section 15-971, subsection A for all of the pupils for whom tuition is being paid pursuant to paragraph 1 of this subsection.

B. The excess tuition payment shall be calculated as follows:

Determine the amount of tuition being charged by the receiving district for pupils attending the district pursuant to subsection A, paragraph 1 of this section.
Determine the lesser of the amount determined in paragraph 1 of this subsection or the guaranteed tuition level. The guaranteed tuition level for the receiving district shall be determined for the tuitioned pupils by the department of education based on the receiving state's school finance formula or the actual costs of educating pupils in the receiving district, whichever is appropriate.
Subtract the equalization base amount as provided in subsection A, paragraph 3 of this section, from the amount determined in paragraph 2 of this subsection.

C. The excess tuition payment is exempt from the revenue control limit as provided in section 15-947.

§ 15-825.02 Certificates of educational convenience; unorganized territory

A. If the annual number of certificates of educational convenience or students attending through open enrollment into any adjacent school district from a single unorganized territory exceeds one hundred fifty, the superintendent of public instruction shall notify the county school superintendent and the county school superintendent shall notify the residents of the unorganized territory that the residents are required to join an adjacent school district. If the adjacent school district is a common school district that is within the boundaries of a union high school district, the unorganized territory shall join both the common school district and the union high school district. If the adjacent school district is a common school district that is not within the boundaries of a high school district, the unorganized territory shall join the common school district, and high school pupils who reside in the previously unorganized territory shall be educated in the same manner as high school pupils who reside in the common school district.

B. The superintendent of public instruction shall notify the county school superintendent that the conditions prescribed in subsection A have occurred, and the county school superintendent shall prepare a ballot question to be voted on by the residents of the unorganized territory at the next general election to determine whether to join an adjacent existing school district.

C. Students attending an adjacent existing school district through open enrollment or through certificates of educational convenience that were approved before notification by the superintendent of public instruction pursuant to subsection B may continue enrollment in that existing school district until the unorganized territory joins a school district. Any students attending an adjacent existing school district through open enrollment or through certificates of educational convenience shall be allowed to continue enrollment in that existing school district even if the unorganized territory joins with a different adjacent school district. Any sibling of a student who continues to attend an adjacent existing school district through open enrollment or a certificate of educational convenience shall also be allowed to attend the same adjacent existing school district.

§ 15-826 Education of children to whom school inaccessible

The county school superintendent, with the consent of the board of supervisors, may allow on his warrant an amount not to exceed ten dollars per school month per pupil toward the education of children of compulsory school age living at such a distance or inaccessible place that compulsory attendance is impracticable. The monies may be used by the county school superintendent as he deems best for the interest of the pupil and shall be paid from the reserve fund of the county.

§ 15-827 Presentation of withdrawal form

A. A pupil who enters a school shall present to the principal of the school a properly executed withdrawal form if such pupil previously attended another school in this state.

B. The withdrawal form prescribed by subsection A shall be prepared and distributed by the office of the superintendent of public instruction. The withdrawal form shall in addition to any other data required by the superintendent of public instruction contain space for the reason for withdrawal and the signature of an official of the school from which the pupil has withdrawn.

§ 15-828 Birth certificate; school records; exception

A. On enrollment of a pupil for the first time in a particular school district or private school offering instruction to pupils in any kindergarten programs or grades one through twelve, that school or school district shall notify the person enrolling the pupil in writing that within thirty days the person must provide one of the following:

A certified copy of the pupil's birth certificate.
Other reliable proof of the pupil's identity and age, including the pupil's baptismal certificate, an application for a social security number or original school registration records and an affidavit explaining the inability to provide a copy of the birth certificate.
A letter from the authorized representative of an agency having custody of the pupil pursuant to title 8, chapter 2 certifying that the pupil has been placed in the custody of the agency as prescribed by law.

B. If a child is instructed at home pursuant to section 15-802, the person who has custody of the child shall, within thirty days after the home instruction begins, provide to the county school superintendent of the county in which the child resides one of the following:

A certified copy of the child's birth certificate.
Other reliable proof of the child's identity and age, including the child's baptismal certificate, an application for a social security number or original school registration records and an affidavit explaining the inability to provide a copy of the birth certificate.
A letter from the authorized representative of an agency having custody of the pupil pursuant to title 8, chapter 2 certifying that the pupil has been placed in the custody of the agency as prescribed by law.

C. On presentation of a document pursuant to this section, a photocopy of the document shall be placed in the pupil's file and the document that is presented shall be returned.

D. A pupil shall be enrolled in the school or school district, or the county school superintendent shall record the pupil's name, using the name that is printed on the birth certificate, other reliable proof of the pupil's identity, or letter from an agency having custody of the pupil provided pursuant to this section. This subsection does not prohibit a school or school district from calling a pupil by any name the pupil's parent or guardian wishes the pupil to be called.

E. On the failure of a person enrolling a pupil or instructing a child at home to comply with subsection A or B of this section, the school, school district or county school superintendent shall notify that person in writing that, unless the person complies within ten days, the case shall be referred to the local law enforcement agency for investigation. If compliance is not obtained within the ten-day period, the school, school district or county school superintendent shall refer the case to the local law enforcement agency.

F. The school, school district or county school superintendent shall immediately report to the local law enforcement agency any affidavit received pursuant to this section that appears to be inaccurate or suspicious in form or content.

G. Within ten school days after enrolling a transfer pupil from a private school or another school district, a school shall request directly from the pupil's previous school a certified copy of the pupil's record. Notwithstanding any financial debt owed by the pupil, any school requested to forward a copy of a transferring pupil's record to the new school shall comply and forward the record within ten school days after receipt of the request unless the record has been flagged pursuant to section 15-829. If the record has been flagged, the requested school shall not forward the copy and shall notify the local law enforcement agency of the request. School districts shall include in the educational records required by this subsection data collected pursuant to sections 15-741 and 15-766, as prescribed by the state board of education.

H. Any disclosure of educational records by the school district or charter school shall comply with the family educational rights and privacy act of 1974 (20 United States Code section 1232g).

I. This section does not apply to homeless pupils as defined in section 15-824, subsection C.

§ 15-829 Missing child; notification of school; flagging records; definitions

A. When a child is reported missing by a parent or guardian, the law enforcement agency receiving the report shall notify as soon as is appropriate the school the child was attending, if any, or the county school superintendent if the child was being instructed at home. The notification shall include all of the following:

The missing child's name.
The missing child's date of birth.
The missing child's county and state of birth.
The missing child's social security number, if any.
The physical description of the missing child.

B. When a school is notified pursuant to subsection A that a child is missing, the school shall flag the records of the child. If a copy of or information regarding the records is requested the school shall immediately report the request concerning the flagged records to a local law enforcement agency.

C. The law enforcement agency receiving the report shall notify the school or county school superintendent if the missing child is recovered and the school or county school superintendent shall remove the flag on the records.

D. For purposes of this section:

"Flag" means to mark or identify as pertaining to a missing child, or an indication identifying an item as pertaining to a missing child.
"Missing child" means a person who is under the age of eighteen years, whose temporary or permanent residence is in this state or is believed to be in this state, whose location has not been determined and who has been reported as missing to a law enforcement agency.

Article 3 Suspension and Expulsion of Pupils

§ 15-840 Definitions

In this article, unless the context otherwise requires:

"Expulsion" means the permanent withdrawal of the privilege of attending a school unless the governing board reinstates the privilege of attending the school.
"Suspension" means the temporary withdrawal of the privilege of attending a school for a specified period of time.

§ 15-841 Responsibilities of pupils; expulsion; alternative education programs; alternative to suspension programs; placement review committee

A. Pupils shall comply with the rules, pursue the required course of study and submit to the authority of the teachers, the administrators and the governing board. A teacher may send a pupil to the principal's office in order to maintain effective discipline in the classroom. If a pupil is sent to the principal's office pursuant to this subsection, the principal shall employ appropriate discipline management techniques that are consistent with rules adopted by the school district governing board. A teacher may remove a pupil from the classroom if either of the following conditions exists:

The teacher has documented that the pupil has repeatedly interfered with the teacher's ability to communicate effectively with the other pupils in the classroom or with the ability of the other pupils to learn.
The teacher has determined that the pupil's behavior is so unruly, disruptive or abusive that it seriously interferes with the teacher's ability to communicate effectively with the other pupils in the classroom or with the ability of the other pupils to learn.

B. A pupil may be expelled for continued open defiance of authority, continued disruptive or disorderly behavior, violent behavior that includes use or display of a dangerous instrument or a deadly weapon as defined in section 13-105, use or possession of a gun, or excessive absenteeism. A pupil may be expelled for excessive absenteeism only if the pupil has reached the age or completed the grade after which school attendance is not required as prescribed in section 15-802. A school district may expel pupils for actions other than those listed in this subsection as the school district deems appropriate. Any expulsions of pupils in a kindergarten program and grades one through four must comply with section 15-843, subsection K.

C. A school district may refuse to admit any pupil who has been expelled from another educational institution or who is in the process of being expelled from another educational institution.

D. A school district, annually or on the request of any pupil or the parent or guardian, may review the reasons for the pupil's expulsion and consider readmission.

E. As an alternative to suspension or expulsion, the school district may reassign any pupil to an alternative education program if the pupil does not meet the requirements for participation in the alternative to suspension program prescribed in subsection I of this section and if good cause exists for expulsion or for a long-term suspension.

F. A school district may reassign a pupil to an alternative education program if the pupil refuses to comply with rules, refuses to pursue the required course of study or refuses to submit to the authority of teachers, administrators or the governing board.

G. A school district or charter school shall expel from school for a period of not less than one year a pupil who is determined to have brought a firearm to a school within the jurisdiction of the school district or the charter school, except that the school district or charter school may modify this expulsion requirement for a pupil on a case-by-case basis. This subsection shall be construed consistently with the requirements of the individuals with disabilities education act (20 United States Code sections 1400 through 1420). For the purposes of this subsection:

"Expel" may include removing a pupil from a regular school setting and providing educational services in an alternative setting.
"Firearm" means a firearm as defined in 18 United States Code section 921.

H. A school district or charter school shall expel from school for at least one year a pupil who is determined to have threatened an educational institution, except that the school district or charter school may modify this expulsion requirement for a pupil on a case-by-case basis if the pupil participates in mediation, community service, restitution or other programs in which the pupil takes responsibility for the results of the threat. This subsection shall be construed consistently with the requirements of the individuals with disabilities education act (20 United States Code sections 1400 through 1420). A school district may reassign a pupil who is subject to expulsion pursuant to this subsection to an alternative education program pursuant to subsection E of this section if the pupil participates in mediation, community service, restitution or other programs in which the pupil takes responsibility for the threat. A school district or charter school may require the pupil's parent or guardian to participate in mediation, community service, restitution or other programs in which the parent or guardian takes responsibility with the pupil for the threat. For the purposes of this subsection, "threatened an educational institution" means to interfere with or disrupt an educational institution as defined in section 13-2911 by doing any of the following:

For the purpose of causing, or in reckless disregard of causing, interference with or disruption of an educational institution, threatening to cause physical injury to any employee of an educational institution or any person attending an educational institution.
For the purpose of causing, or in reckless disregard of causing, interference with or disruption of an educational institution, threatening to cause damage to any educational institution, the property of any educational institution, the property of any employee of an educational institution or the property of any person attending an educational institution.
Going on or remaining on the property of any educational institution for the purpose of interfering with or disrupting the lawful use of the property or in any manner as to deny or interfere with the lawful use of the property by others.
Refusing to obey a lawful order to leave the property of an educational institution.

I. Each school district shall establish an alternative to suspension program in consultation with local law enforcement officials or school resource officers. The school district governing board shall adopt policies to determine the requirements for participation in the alternative to suspension program. Pupils who would otherwise be subject to suspension pursuant to this article and who meet the school district's requirements for participation in the alternative to suspension program shall be transferred to a location on school premises that is isolated from other pupils or transferred to a location that is not on school premises. The alternative to suspension program shall be discipline intensive and require academic work, and may require community service, groundskeeping and litter control, parent supervision, and evaluation or other appropriate activities. The community service, groundskeeping and litter control, and other appropriate activities may be performed on school grounds or at any other designated area.

J. Each school shall establish a placement review committee to determine the placement of a pupil if a teacher refuses to readmit the pupil to the teacher's class and to make recommendations to the governing board regarding the readmission of expelled pupils. The process for determining the placement of a pupil in a new class or replacement in the existing class shall not exceed three business days after the date the pupil was first removed from the existing class. The principal shall not return a pupil to the classroom from which the pupil was removed without the teacher's consent unless the committee determines that the return of the pupil to that classroom is the best or only practicable alternative. The committee shall be composed of two teachers who are employed at the school and who are selected by the faculty members of the school and one administrator who is employed by the school and who is selected by the principal. The faculty members of the school shall select a third teacher to serve as an alternate member of the committee. If the teacher who refuses to readmit the pupil is a member of the committee, that teacher shall be excused from participating in the determination of the pupil's readmission and the alternate teacher member shall replace that teacher on the committee until the conclusion of all matters relating to that pupil's readmission.

§ 15-842 Damage to school property; suspension or expulsion of pupil; liability of parent

A. Except as provided in section 15-843, subsection K, a pupil who cuts, defaces or otherwise injures any school property may be suspended or expelled.

B. On complaint of the governing board, the parents or guardians of minors who have injured school property are liable for all damages caused by their children or wards.

§ 15-843 Pupil disciplinary proceedings; definition

A. An action concerning discipline, suspension or expulsion of a pupil is not subject to title 38, chapter 3, article 3.1, except that the governing board of a school district shall post regular notice and shall take minutes of any hearing held by the governing board concerning the discipline, suspension or expulsion of a pupil.

B. The governing board of any school district, in consultation with the teachers and parents of the school district, shall prescribe rules for the discipline, suspension and expulsion of pupils. The rules shall be consistent with the constitutional rights of pupils and shall include at least the following:

Penalties for excessive pupil absenteeism pursuant to section 15-803, including failure in a subject, failure to pass a grade, suspension or expulsion.
Procedures for using corporal punishment if allowed by the governing board.
Procedures for the reasonable use of physical force by certificated or classified personnel in self-defense, defense of others and defense of property.
Procedures for dealing with pupils who have committed or who are believed to have committed a crime.
A notice and hearing procedure for cases concerning the suspension of a pupil for more than ten days.
Procedures and conditions for readmitting a pupil who has been expelled or suspended for more than ten days.
Procedures to appeal to the governing board the suspension of a pupil for more than ten days, if the decision to suspend the pupil was not made by the governing board.
Procedures to appeal the recommendation of the hearing officer or officers designated by the board as provided in subsection F of this section at the time the board considers the recommendation.
Disciplinary policies for confining pupils who are left alone in an enclosed space. These policies shall include the following:

(a) A process for prior written parental notification that confinement may be used for disciplinary purposes and that is included in the pupil's enrollment packet or admission form.

(b) A process for prior written parental consent before confinement is allowed for any pupil in the school district. The policies shall provide for an exemption to prior written parental consent if a school principal or teacher determines that the pupil poses imminent physical harm to self or others. The school principal or teacher shall make reasonable attempts to notify the pupil's parent or guardian in writing by the end of the same day that confinement was used.

Procedures that require the school district to annually report to the department of education in a manner prescribed by the department the number of suspensions and expulsions that involve the possession, use or sale of an illegal substance under title 13, chapter 34 and the type of illegal substance involved in each suspension or expulsion. The department of education shall compile this information and annually post the information on its website. The information shall comply with the family educational rights and privacy act of 1974 (P.L. 93-380; 88 Stat. 571; 20 United States Code section 1232g), shall not include personally identifiable information and shall show the number of suspensions and expulsions associated with each illegal substance aggregated statewide and by county.

C. Penalties adopted pursuant to subsection B, paragraph 1 of this section for excessive absenteeism shall not be applied to pupils who have completed the course requirements and whose absence from school is due solely to illness, disease or accident as certified by a person who is licensed pursuant to title 32, chapter 7, 13, 14, 15 or 17.

D. The governing board shall:

Support and assist teachers in implementing and enforcing the rules prescribed pursuant to subsection B of this section.
Develop procedures allowing teachers and principals to recommend the suspension or expulsion of pupils.
Develop procedures allowing teachers and principals to temporarily remove disruptive pupils from a class.
Delegate to the principal the authority to remove a disruptive pupil from the classroom.

E. If a pupil withdraws from school after receiving notice of possible action concerning discipline, expulsion or suspension, the governing board may continue with the action after the withdrawal and may record the results of such action in the pupil's permanent file.

F. In all actions concerning the expulsion of a pupil, the governing board of a school district shall:

Be notified of the intended action.
Either:

(a) Decide, in executive session, whether to hold a hearing or to designate one or more hearing officers to hold a hearing to hear the evidence, prepare a record and bring a recommendation to the board for action and whether the hearing shall be held in executive session.

(b) Provide by policy or vote at its annual organizational meeting that all hearings concerning the expulsion of a pupil conducted pursuant to this section will be conducted before a hearing officer selected from a list of hearing officers approved by the governing board.

Give written notice, at least five working days before the hearing by the governing board or the hearing officer or officers designated by the governing board, to all pupils subject to expulsion and their parents or guardians of the date, time and place of the hearing. If the governing board decides that the hearing is to be held in executive session, the written notice shall include a statement of the right of the parents or guardians or an emancipated pupil who is subject to expulsion to object to the governing board's decision to have the hearing held in executive session. Objections shall be made in writing to the governing board.

G. If a parent or guardian or an emancipated pupil who is subject to expulsion disagrees that the hearing should be held in executive session, the hearing shall be held in an open meeting unless:

If only one pupil is subject to expulsion and disagreement exists between that pupil's parents or guardians, the governing board, after consultations with the pupil's parents or guardians or the emancipated pupil, shall decide in executive session whether the hearing will be in executive session.
If more than one pupil is subject to expulsion and disagreement exists between the parents or guardians of different pupils, separate hearings shall be held subject to this section.

H. This section does not prevent the pupil who is subject to expulsion or suspension, and the pupil's parents or guardians and legal counsel, from attending any executive session pertaining to the proposed disciplinary action, from having access to the minutes and testimony of the executive session or from recording the session at the parent's or guardian's expense.

I. In schools employing a superintendent or a principal, the authority to suspend a pupil from school is vested in the superintendent, principal or other school officials granted this power by the governing board of the school district.

J. In schools that do not have a superintendent or principal, a teacher may suspend a pupil from school.

K. Except as provided in subsection L of this section, a school district or charter school may suspend or expel a pupil who is enrolled in a kindergarten program, first grade, second grade, third grade or fourth grade only if all of the following apply:

The pupil is seven years of age or older.
The pupil engaged in conduct on school grounds that meets one of the following criteria:

(a) Involves the possession of a dangerous weapon without authorization from the school.

(b) Involves the possession, use or sale of a dangerous drug as defined in section 13-3401 or a narcotic drug as defined in section 13-3401 or a violation of section 13-3411.

(d) The pupil's behavior is determined by the school district governing board or charter school governing body to qualify as aggravating circumstances and all of the following apply:

(i) The pupil is engaged in persistent behavior that has been documented by the school and that prevents other pupils from learning or prevents the teacher from maintaining control of the classroom environment.

(ii) The pupil's ongoing behavior is unresponsive to targeted interventions as documented through an established intervention process that includes consultation with a school counselor, school psychologist or other mental health professional or social worker if available within the school district or charter school or through a state-sponsored program.

(iii) The pupil's parent or guardian was notified and consulted about the ongoing behavior.

(iv) Before a long-term suspension or expulsion, the school provides the pupil with a disability screening and the screening finds that the behavioral issues were not the result of a disability.

Failing to remove the pupil from the school building would create a safety threat that cannot otherwise reasonably be addressed or qualifies as aggravating circumstances as specified in paragraph 2 of this subsection.
Before suspending or expelling the pupil, the school district or charter school considers and, if feasible while maintaining the health and safety of others, in consultation with the pupil's parent or guardian to the extent possible, employs alternative behavioral and disciplinary interventions that are available to the school district or charter school, that are appropriate to the circumstances and that are considerate of health and safety. The school district or charter school shall document the alternative behavioral and disciplinary interventions it considers and employs.
The school district or charter school, by policy, provides for both:

(a) A readmission procedure for pupils who are in kindergarten programs, first grade, second grade, third grade and fourth grade and who have served at least five school days of a suspension from the school that exceeds ten school days to be considered for readmission on appeal of the pupil's parent or guardian.

(b) A readmission procedure for pupils who are in kindergarten programs, first grade, second grade, third grade and fourth grade and who are expelled from or subject to alternative reassignment at the school to be considered for readmission on appeal of the pupil's parent or guardian at least twenty school days after the effective date of the expulsion or alternative reassignment.

L. Subsection K of this section does not apply if either:

Expulsion is required pursuant to section 15-841, subsection G.
The school district or charter school is suspending the pupil for two or fewer days and the aggregate suspensions for the pupil do not exceed ten days within the school year.

M. All cases of suspension shall be for good cause and shall be reported within five days to the governing board by the superintendent or the person imposing the suspension.

N. Rules pertaining to the discipline, suspension and expulsion of pupils shall not be based on race, color, religion, sex, national origin or ancestry. If the department of education, the auditor general or the attorney general determines that a school district is substantially and deliberately not in compliance with this subsection and if the school district has failed to correct the deficiency within ninety days after receiving notice from the department of education, the superintendent of public instruction may withhold the monies the school district would otherwise be entitled to receive from the date of the determination of noncompliance until the department of education determines that the school district is in compliance with this subsection.

O. The principal of each school shall ensure that a copy of all rules pertaining to the discipline, suspension and expulsion of pupils is distributed to the parents of each pupil at the time the pupil is enrolled in the school.

P. The principal of each school shall ensure that all rules pertaining to the discipline, suspension and expulsion of pupils are communicated to students at the beginning of each school year, and to transfer students at the time of their enrollment in the school.

Q. School districts may refer a pupil who has been subject to discipline, suspension or expulsion pursuant to this section to a career and college readiness program for at-risk students established pursuant to section 15-707.

R. For the purposes of this section, "aggravating circumstances" means the pupil is engaged in persistent behavior that:

Has been documented by the school.
Prevents other students from learning or prevents the teacher from maintaining control of the classroom environment.
Is unresponsive to targeted interventions as documented through an established intervention process.

§ 15-844 Suspension and expulsion proceedings for children with disabilities

Notwithstanding sections 15-841 and 15-842, the suspension or expulsion of children with disabilities, as defined in section 15-761, shall be in accordance with the individuals with disabilities education act (20 United States Code sections 1410 through 1485) and federal regulations issued pursuant to the individuals with disabilities education act.

Article 4 Part-Time Schools and Year-Round School Year Operation

§ 15-854 Year-round school year operation; powers and duties of superintendent of public instruction

A. The superintendent of public instruction shall:

Prepare and distribute all necessary forms for application by any school district for state authorization for a school district year-round school year operation program.
Prepare and distribute all necessary budget or reporting forms which may be required for the purpose of this section and section 15-855.
Cooperate with and provide continued supervision of all year-round school year operation programs to determine compliance with the provisions of this section and section 15-855.

B. The superintendent of public instruction may:

Authorize a school district with program approval for year-round school year operation to employ a fiscal year other than one beginning on July 1 and ending on June 30, and to appropriately adjust the respective budget dates.
Authorize and assist in arrangements for any necessary adjustments of employment contracts, the dates and respective percentages of apportionments of state aid and the student count to be based on each pupil's attendance during the respective one hundred seventy-five days or two hundred days, as applicable, of school operation, or the equivalent as approved by the superintendent of public instruction, in which the pupil is enrolled.

§ 15-855 School or school district operation on a year-round school year basis; separate budget

A. Any school district which is qualified may operate on a four quarter, three semester or other year-round school year operation basis in cooperation with and under the supervision of the superintendent of public instruction.

B. Any school district which operates some but not all of its schools on a year-round school year operation basis shall remove such schools from the school district budget, proportionately reduce the school district budget amounts and employ a separate budget for each of its schools with a year-round school year operation.

C. The superintendent of public instruction shall supervise the conversion of any school district budget as required by subsection B of this section to insure application of all budget requirements.

D. For school districts which maintain an approved year-round school year operation, entitlement to state aid shall be based on the one hundred seventy-five days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each student is enrolled.

Article 6 School Immunization

§ 15-871 Definitions

In this article, unless the context otherwise requires:

"Documentary proof" means written evidence that a pupil has been immunized or has laboratory evidence of immunity that conforms with the standards promulgated pursuant to section 15-872.
"Dose" means the number in a series of immunizations that may be prescribed pursuant to section 36-672.
"Health agency" means a local health department or similar governmental agency established pursuant to the laws of another state or country and its officers and employees.
"Homeless pupil" means a pupil who has a primary residence that is:

(a) A supervised publicly or privately operated shelter designed to provide temporary living accommodations.

(b) An institution that provides a temporary residence for individuals intended to be institutionalized.

(c) A public or private place not designed for, or ordinarily used as a regular sleeping accommodation for, human beings.

"Immunization" means the process of inoculation with a specific antigen to promote antibody formation in the body.
"Immunized" means the required initial immunization and boosters or reimmunization prescribed pursuant to section 36-672.
"Laboratory evidence of immunity" means written evidence of serologic confirmation of the presence of specific antibodies against an immunization-preventable disease that is signed by a physician or an authorized representative of a health agency.
"Local health department" means a local health department established pursuant to title 36, chapter 1, article 4.
"Physician" means a person licensed pursuant to title 32, chapter 13, 17 or 29 or a person licensed to practice allopathic or osteopathic medicine under the laws of another state or country.
"Pupil" means a person who is eligible to receive instruction at a school and includes pre-kindergarten age children receiving either services for children with disabilities or day care on a school campus otherwise exempt from day care rules pursuant to section 36-884.
"Registered nurse practitioner" has the same meaning prescribed in section 32-1601.
"School" means a public, private or parochial school that offers instruction at any level or grade through twelfth grade, except for day care facilities regulated pursuant to title 36, chapter 7.1.
"School administrator" means the principal or person having general daily control and supervision of the school or that person's designee.
"Suspension" or "suspended" means:

(a) For a pupil attending a public school, the temporary withdrawal of the privilege of attending school pursuant to section 15-843.

(b) For a pupil attending a private or parochial school, the temporary withdrawal of the privilege of attending school pursuant to the policies and procedures of the private or parochial school.

§ 15-872 Proof of immunization; noncompliance; notice to parents; civil immunity

A. The director of the department of health services, in consultation with the superintendent of public instruction, shall develop by rule standards for documentary proof.

B. A pupil shall not be allowed to attend school without submitting documentary proof to the school administrator unless the pupil is exempted from immunization pursuant to section 15-873.

C. Each public school shall make full disclosure of the requirements and exemptions as prescribed in this section and section 15-873.

D. On enrollment, the school administrator shall suspend that pupil if the administrator does not have documentary proof and the pupil is not exempted from immunization pursuant to section 15-873.

E. Notwithstanding subsections B and D of this section, a pupil may be admitted to or allowed to attend a school if the pupil has received at least one dose of each of the required immunizations prescribed pursuant to section 36-672 and has established a schedule for the completion of required immunizations. The parent, guardian or person in loco parentis of a pupil shall present to the school administrator documentary proof of the immunizations received and a schedule prepared by the pupil's physician or registered nurse practitioner or a health agency for completion of additional required immunizations.

F. The school administrator shall review the school immunization record for each pupil admitted or allowed to continue attendance pursuant to subsection E of this section at least twice each school year until the pupil receives all of the required immunizations and shall suspend a pupil as prescribed in subsection G of this section who fails to comply with the immunization schedule. Immunizations received by a pupil shall be entered in the pupil's school immunization record.

G. Unless proof of an exemption from immunization pursuant to section 15-873 is provided, a pupil who is admitted or allowed to continue to attend and who fails to comply with the immunization schedule within the time intervals specified by the schedule shall be suspended from school attendance until documentary proof of the administration of another dose of each appropriate immunizing agent is provided to the school administrator.

H. The provisions of subsections B, D and E of this section do not apply to homeless pupils until the fifth calendar day after enrollment.

I. A school and its employees are immune from civil liability for decisions concerning the admission, readmission and suspension of a pupil that are based on a good faith implementation of the requirements of this article.

§ 15-873 Exemptions; nonattendance during outbreak

A. Documentary proof is not required for a pupil to be admitted to school if one of the following occurs:

The parent or guardian of the pupil submits a signed statement to the school administrator stating that the parent or guardian has received information about immunizations provided by the department of health services and understands the risks and benefits of immunizations and the potential risks of nonimmunization and that due to personal beliefs, the parent or guardian does not consent to the immunization of the pupil.
The school administrator receives written certification that is signed by the parent or guardian and by a physician or a registered nurse practitioner, that states that one or more of the required immunizations may be detrimental to the pupil's health and that indicates the specific nature and probable duration of the medical condition or circumstance that precludes immunization.

B. An exemption pursuant to subsection A, paragraph 2 is only valid during the duration of the circumstance or condition that precludes immunization.

C. Pupils who lack documentary proof of immunization shall not attend school during outbreak periods of communicable immunization-preventable diseases as determined by the department of health services or local health department. The department of health services or local health department shall transmit notice of this determination to the school administrator responsible for the exclusion of the pupils.

§ 15-874 Records; reporting requirements

A. Each pupil's immunizations shall be recorded on the school immunization record. The school immunization record shall be a standardized form developed by the department of health services in conjunction with the department of education and provided by the department of health services and shall be a part of the mandatory permanent student record. The records are open to inspection by the department of health services and the local health department.

B. Each immunization record shall contain at least the following information:

The pupil's name and birth date.
The date of the pupil's admission to the school.
The type of immunizing agents administered to the pupil.
The date each dose of immunizing agent is administered to the pupil.
The established schedule for completion of immunizations if the pupil is admitted to or allowed to continue to attend a school pursuant to section 15-872, subsection E.
Laboratory evidence of immunity if this evidence is presented as part of a pupil's documentary proof.
If an exemption from immunization as provided in section 15-873 is submitted to the school administrator, the date the exemption is submitted and the reason for the exemption.
Additional information prescribed by the director of the department of health services by rule.

C. A school shall transfer an immunization record with the mandatory permanent student record and provide at no charge, on request, a copy of the immunization record to the parent or guardian of the pupil.

D. By November 30 of each school year, each school district and private school shall complete and file a report with the local health department and the department of health services, using forms provided by the department of health services. The report shall state the number of pupils attending who have completed required immunizations or who have submitted laboratory evidence of immunity, the number of pupils attending with uncompleted required immunizations and the number of pupils attending with an exemption from immunization pursuant to section 15-873.

Article 7 Extended School Year for Handicapped Pupils

§ 15-881 Extended school year services for pupils with disabilities; eligibility and service structure; definition

A. Each school district shall make extended school year services available to all pupils with disabilities for whom such services are necessary. Extended school year services are necessary if either of the following applies:

The benefits that the pupil gained during the regular school year would be significantly jeopardized if the pupil is not provided educational services.
The pupil would experience severe or substantial regression if the pupil is not provided educational services during recesses or the summer months and the regression would result in substantial skill loss of a degree and duration that would seriously impede the pupil's progress toward educational goals.

B. The determination of whether a pupil is eligible for extended school year services shall take into account the least restrictive environmental considerations and shall be determined by a multifaceted inquiry by the individualized education program team based on the following criteria:

Retrospective data, such as past regression and the rate of recoupment.
Predictive data, when empirical data is not available, may be proven by expert opinion, based on a professional individual assessment.

C. The state board of education shall prescribe rules to carry out the purposes of this section.

D. Rules that are adopted pursuant to subsection C of this section shall clarify that attendance in the program is not compulsory, that the program is not required for all pupils with disabilities and that eligibility for participation in the program is not based on need or desire for any of the following:

A day care or respite care service for pupils with disabilities.
A program to maximize the academic potential of pupils with disabilities.
A summer recreation program for pupils with disabilities.

E. For the purposes of this section, "extended school year" means additional special education and related services for pupils with disabilities to supplement the normal school year which are provided as part of a free and appropriate public education as defined in Public Law 94-142.

Chapter 9 School District Budgeting and Financial Assistance

Article 1 General Provisions for School District Budgets

§ 15-901 Definitions

A. In this title, unless the context otherwise requires:

"Average daily membership" means the total enrollment of fractional students and full-time students, minus withdrawals, of each school day through the first one hundred days or two hundred days in session, as applicable, for the current year. For the purposes of this paragraph, "withdrawals" means students who are formally withdrawn from schools or students who are absent for ten consecutive school days, except for excused absences identified by the department of education. For computation purposes, a student who is absent for nine or fewer consecutive school days, including the last day of the school year, is not a withdrawal and may not be subtracted from the total enrollment of fractional students and full-time students. For the purposes of this section, school districts and charter schools shall report student absence data to the department of education at least once every sixty days in session. For computation purposes, the effective date of withdrawal shall be retroactive to the last day of actual attendance of the student or excused absence. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subsection in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(a) "Fractional student" means:

(i) For common schools, a preschool child who is enrolled in a program for preschool children with disabilities of at least three hundred sixty minutes each week that meets at least two hundred sixteen hours over the minimum number of days or a kindergarten student who is at least five years of age before January 1 of the school year and enrolled in a school kindergarten program that meets at least three hundred fifty-six hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. In computing the average daily membership, preschool children with disabilities and kindergarten students shall be counted as one-half of a full-time student. For common schools, a part-time student is a student enrolled for less than the total time for a full-time student as defined in this section. A part-time common school student shall be counted as one-fourth, one-half or three-fourths of a full-time student if the student is enrolled in an instructional program that is at least one-fourth, one-half or three-fourths of the time a full-time student is enrolled as defined in subdivision (b) of this paragraph. The hours in which a student is scheduled to attend a common school during the regular school day shall be included in the calculation of the average daily membership for that student.

(ii) For high schools, a part-time student who is enrolled in less than four subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, in a recognized high school. The average daily membership of a part-time high school student shall be 0.75 if the student is enrolled in an instructional program of three subjects that meet at least five hundred forty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The average daily membership of a part-time high school student shall be 0.5 if the student is enrolled in an instructional program of two subjects that meet at least three hundred sixty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The average daily membership of a part-time high school student shall be 0.25 if the student is enrolled in an instructional program of one subject that meets at least one hundred eighty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The hours in which a student is scheduled to attend a high school during the regular school day shall be included in the calculation of the average daily membership for that student.

(b) "Full-time student" means:

(i) For common schools, a student who is at least six years of age before January 1 of a school year, who has not graduated from the highest grade taught in the school district and who is regularly enrolled in a course of study required by the state board of education. First, second and third grade students or ungraded group B children with disabilities who are at least five, but under six, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least seven hundred twelve hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. Fourth, fifth, sixth, seventh and eighth grade students must be enrolled in an instructional program that meets for a total of at least eight hundred ninety hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section, including the equivalent number of instructional hours for schools that operate on a one hundred forty-four-day school year. The hours in which a student is scheduled to attend a common school during the regular school day shall be included in the calculation of the average daily membership for that student.

(ii) For high schools, a student who has not graduated from the highest grade taught in the school district and who is enrolled in at least an instructional program of four or more subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, that meets for a total of at least seven hundred twenty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section in a recognized high school. A full-time student shall not be counted more than once for computation of average daily membership. The average daily membership of a full-time high school student shall be 1.0 if the student is enrolled in at least four subjects that meet at least seven hundred twenty hours for a one hundred eighty-day school year, or the equivalent instructional hours prescribed in this section. The hours in which a student is scheduled to attend a high school during the regular school day shall be included in the calculation of the average daily membership for that student.

(iii) If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten and repeats kindergarten in the following school year, a school district or charter school is not eligible to receive basic state aid on behalf of that child during the child's second year of kindergarten. If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten but does not remain enrolled, a school district or charter school may receive a portion of basic state aid on behalf of that child in the subsequent year. A school district or charter school may charge tuition for any child who is ineligible for basic state aid pursuant to this item.

(iv) Except as otherwise provided by law, for a full-time high school student who is concurrently enrolled in two school districts or two charter schools, the average daily membership shall not exceed 1.0.

(v) Except as otherwise provided by law, for any student who is concurrently enrolled in a school district and a charter school, the average daily membership shall be apportioned between the school district and the charter school and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and the charter school.

(vi) Except as otherwise provided by law, for any student who is concurrently enrolled, pursuant to section 15-808, in a school district and Arizona online instruction or a charter school and Arizona online instruction, the average daily membership shall be apportioned between the school district and Arizona online instruction or the charter school and Arizona online instruction and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and Arizona online instruction or the charter school and Arizona online instruction.

(vii) For homebound or hospitalized, a student receiving at least four hours of instruction per week.

(c) "Regular school day" means the regularly scheduled class periods intended for instructional purposes. Instructional purposes may include core subjects, elective subjects, lunch, study halls, music instruction and other classes that advance the academic instruction of pupils. Instructional purposes do not include athletic practices or extracurricular clubs and activities.

"Budget year" means the fiscal year for which the school district is budgeting and that immediately follows the current year.
"Common school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and either:

(a) Grades one through eight.

(b) Grades one through nine pursuant to section 15-447.01.

"Current year" means the fiscal year in which a school district is operating.
"Daily attendance" means:

(a) For common schools, days in which a pupil:

(i) Of a kindergarten program or ungraded, but not group B children with disabilities, who is at least five, but under six, years of age by September 1 attends at least three-quarters of the instructional time scheduled for the day. If the total instruction time scheduled for the year is at least three hundred fifty-six hours but is less than seven hundred twelve hours, such attendance shall be counted as one-half day of attendance. If the instructional time scheduled for the year is at least six hundred ninety-two hours, "daily attendance" means days in which a pupil attends at least one-half of the instructional time scheduled for the day. Such attendance shall be counted as one-half day of attendance. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(ii) Of the first, second or third grades attends more than three-quarters of the instructional time scheduled for the day. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(iii) Of the fourth, fifth or sixth grades attends more than three-quarters of the instructional time scheduled for the day, except as provided in section 15-797. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(iv) Of the seventh or eighth grades attends more than three-quarters of the instructional time scheduled for the day, except as provided in section 15-797. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(b) For common schools, the attendance of a pupil at three-quarters or less of the instructional time scheduled for the day shall be counted as follows, except as provided in section 15-797 and except that attendance for a fractional student shall not exceed the pupil's fractional membership:

(i) If attendance for all pupils in the school is based on quarter days, the attendance of a pupil shall be counted as one-fourth of a day's attendance for each one-fourth of full-time instructional time attended. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(ii) If attendance for all pupils in the school is based on half days, the attendance of at least three-quarters of the instructional time scheduled for the day shall be counted as a full day's attendance and attendance at a minimum of one-half but less than three-quarters of the instructional time scheduled for the day equals one-half day of attendance. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(c) For common schools, the attendance of a preschool child with disabilities shall be counted as one-fourth day's attendance for each thirty-six minutes of attendance, except as provided in paragraph 1, subdivision (a), item (i) of this subsection for children with disabilities up to a maximum of three hundred sixty minutes each week. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(d) For high schools, the attendance of a pupil shall not be counted as a full day unless the pupil is actually and physically in attendance and enrolled in and carrying four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, that count toward graduation in a recognized high school except as provided in section 15-797 and subdivision (e) of this paragraph. Attendance of a pupil carrying less than the load prescribed shall be prorated. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(e) For high schools, the attendance of a pupil may be counted as one-fourth of a day's attendance for each sixty minutes of instructional time in a subject that counts toward graduation, except that attendance for a pupil shall not exceed the pupil's full or fractional membership. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(f) For homebound or hospitalized, a full day of attendance may be counted for each day during a week in which the student receives at least four hours of instruction. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(g) For school districts that maintain school for an approved year-round school year operation, attendance shall be based on a computation, as prescribed by the superintendent of public instruction, of the one hundred eighty days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each pupil is enrolled. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

"Daily route mileage" means the sum of:

(a) The total number of miles driven daily by all buses of a school district while transporting eligible students from their residence to the school of attendance and from the school of attendance to their residence on scheduled routes approved by the superintendent of public instruction.

(b) The total number of miles driven daily on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible student from the place of the student's residence to a school transportation pickup point or to the school of attendance and from the school transportation scheduled return point or from the school of attendance to the student's residence. Daily route mileage includes the total number of miles necessary to drive to transport eligible students from and to their residence as provided in this paragraph.

"District support level" means the base support level plus the transportation support level.
"Eligible students" means:

(a) Students who are transported by or for a school district and who qualify as full-time students or fractional students, except students for whom transportation is paid by another school district or a county school superintendent, and:

(i) For common school students, whose place of actual residence within the school district is more than one mile from the school facility of attendance or students who are admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches and whose actual place of residence outside the school district boundaries is more than one mile from the school facility of attendance.

(ii) For high school students, whose place of actual residence within the school district is more than one and one-half miles from the school facility of attendance or students who are admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches and whose actual place of residence outside the school district boundaries is more than one and one-half miles from the school facility of attendance.

(b) Kindergarten students, for purposes of computing the number of eligible students under subdivision (a), item (i) of this paragraph, shall be counted as full-time students, notwithstanding any other provision of law.

(c) Children with disabilities, as defined by section 15-761, who are transported by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of this title and who qualify as full-time students or fractional students regardless of location or residence within the school district or children with disabilities whose transportation is required by the pupil's individualized education program.

(d) Students whose residence is outside the school district and who are transported within the school district on the same basis as students who reside in the school district.

"Enrolled" or "enrollment" means that a pupil is currently registered in the school district.
"GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.
"High school district" means a political subdivision of this state offering instruction to students for grades nine through twelve or that portion of the budget of a common school district that is allocated to teaching high school subjects with permission of the state board of education.
"Instructional hours" or "instructional time" means hours or time spent pursuant to an instructional time model adopted under section 15-901.08.
"Revenue control limit" means the base revenue control limit plus the transportation revenue control limit.
"Student count" means average daily membership as prescribed in this subsection for the fiscal year before the current year, except that for the purpose of budget preparation student count means average daily membership as prescribed in this subsection for the current year.
"Submit electronically" means submitted in a format and in a manner prescribed by the department of education.
"Total bus mileage" means the total number of miles driven by all buses of a school district during the school year.
"Total students transported" means all eligible students transported from their place of residence to a school transportation pickup point or to the school of attendance and from the school of attendance or from the school transportation scheduled return point to their place of residence.
"Unified school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through twelve.

B. In this title, unless the context otherwise requires:

"Base" means the revenue level per student count specified by the legislature.
"Base level" means the following amounts plus the percentage increase to the base level as provided in section 15-902.04:

(a) For fiscal year 2023-2024, $4,914.71.

(b) For fiscal year 2024-2025, $5,013.00.

"Base revenue control limit" means the base revenue control limit computed as provided in section 15-944.
"Base support level" means the base support level as provided in section 15-943.
"Certified teacher" means a person who is certified as a teacher pursuant to the rules adopted by the state board of education, who renders direct and personal services to schoolchildren in the form of instruction related to the school district's educational course of study and who is paid from the maintenance and operation section of the budget.
"DD" means programs for children with developmental delays who are at least three years of age but under ten years of age. A preschool child who is categorized under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b).
"ED, MIID, SLD, SLI and OHI" means programs for children with emotional disabilities, mild intellectual disabilities, a specific learning disability, a speech/language impairment and other health impairments. A preschool child who is categorized as SLI under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b).
"ED-P" means programs for children with emotional disabilities who are enrolled in private special education programs as prescribed in section 15-765, subsection D, paragraph 1 or in an intensive school district program as provided in section 15-765, subsection D, paragraph 2.
"ELL" means English learners who do not speak English or whose native language is not English, who are not currently able to perform ordinary classroom work in English and who are enrolled in an English language education program pursuant to sections 15-751, 15-752 and 15-753.
"FRPL" means students who meet 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, including the community eligibility provision for which free and reduced-price lunch data is not available.
"Full-time equivalent certified teacher" or "FTE certified teacher" means for a certified teacher the following:

(a) If employed full time as defined in section 15-501, 1.00.

(b) If employed less than full time, multiply 1.00 by the percentage of a full school day, or its equivalent, or a full class load, or its equivalent, for which the teacher is employed as determined by the governing board.

"G" means educational programs for gifted pupils who score at or above the ninety-seventh percentile, based on national norms, on a test adopted by the state board of education.
"Group A" means educational programs for career exploration, a specific learning disability, an emotional disability, a mild intellectual disability, remedial education, a speech/language impairment, developmental delay, homebound pupils, bilingual pupils and pupils with other health impairments.
"Group B" means educational improvements for pupils in kindergarten programs and grades one through three, educational programs for autism, a hearing impairment, a moderate intellectual disability, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairments, preschool severe delay, a severe intellectual disability and emotional disabilities for school age pupils enrolled in private special education programs or in school district programs for children with severe disabilities or visual impairment, English learners enrolled in a program to promote English language proficiency pursuant to section 15-752 and students who meet 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, including the community eligibility provision for which free and reduced-price lunch data is not available.
"HI" means programs for pupils with hearing impairment.
"Homebound" or "hospitalized" means a pupil who is capable of profiting from academic instruction but is unable to attend school due to illness, disease, accident or other health conditions, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for a period of not less than three school months or a pupil who is capable of profiting from academic instruction but is unable to attend school regularly due to chronic or acute health problems, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for intermittent periods of time totaling three school months during a school year. The medical certification shall state the general medical condition, such as illness, disease or chronic health condition, that is the reason that the pupil is unable to attend school. Homebound or hospitalized includes a student who is unable to attend school for a period of less than three months due to a pregnancy if a competent medical doctor, after an examination, certifies that the student is unable to attend regular classes due to risk to the pregnancy or to the student's health.
"K-3" means kindergarten programs and grades one through three.
"K-3 reading" means reading programs for pupils in kindergarten programs and grades one, two and three.
"MD-R, A-R and SID-R" means resource programs for pupils with multiple disabilities, autism and severe intellectual disability.
"MD-SC, A-SC and SID-SC" means self-contained programs for pupils with multiple disabilities, autism and severe intellectual disability.
"MD-SSI" means a program for pupils with multiple disabilities with severe sensory impairment.
"MOID" means programs for pupils with moderate intellectual disability.
"OI-R" means a resource program for pupils with orthopedic impairments.
"OI-SC" means a self-contained program for pupils with orthopedic impairments.
"PSD" means preschool programs for children with disabilities as provided in section 15-771.
"P-SD" means programs for children who meet the definition of preschool severe delay as provided in section 15-771.
"Qualifying tax rate" means the qualifying tax rate specified in section 15-971 applied to the assessed valuation used for primary property taxes.
"Small isolated school district" means a school district that meets all of the following:

(a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b) Contains no school that is fewer than thirty miles by the most reasonable route from another school, or, if road conditions and terrain make the driving slow or hazardous, fifteen miles from another school that teaches one or more of the same grades and is operated by another school district in this state.

"Small school district" means a school district that meets all of the following:

(a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b) Contains at least one school that is fewer than thirty miles by the most reasonable route from another school that teaches one or more of the same grades and is operated by another school district in this state.

"Transportation revenue control limit" means the transportation revenue control limit computed as prescribed in section 15-946.
"Transportation support level" means the support level for pupil transportation operating expenses as provided in section 15-945.
"VI" means programs for pupils with visual impairments.

§ 15-901.01 Inflation adjustments

(Caution: 1998 Prop. 105 applies)

If approved by the qualified electors voting at a statewide general election, for fiscal years 2001-2002 through 2005-2006, the legislature shall increase the base level or other components of the revenue control limit by two per cent. For fiscal year 2006-2007 and each fiscal year thereafter, the legislature shall increase the base level or other components of the revenue control limit by a minimum growth rate of either two per cent or the change in the GDP price deflator, as defined in section 41-563, from the second preceding calendar year to the calendar year immediately preceding the budget year, whichever is less, except that the base level shall never be reduced below the base level established for fiscal year 2001-2002.

§ 15-901.02 Voluntary full-day kindergarten instruction; requirements; academic quality

A. A school district or charter school may offer full-day kindergarten instruction to pupils who meet the enrollment requirements for kindergarten programs. Parents of pupils who meet the enrollment requirements for voluntary kindergarten programs in a school district or charter school that offers full-day kindergarten instruction may choose either half-day kindergarten instruction or full-day kindergarten instruction. If a charter school chooses to offer voluntary full-day kindergarten instruction, any necessary capital monies needed to implement voluntary full-day kindergarten instruction shall be provided by the charter school.

B. If a school district or charter school offers more than two and one-half hours of voluntary tuition-free kindergarten instruction during a school day to pupils who are under six years of age, the instruction shall meet all of the following requirements:

Meet or exceed the academic standards for kindergarten instruction prescribed by the state board of education and incorporate play as an instructional strategy.
Be academically meaningful.
Provide active learning enrichment.

C. A parent of a kindergarten pupil may choose either half-day kindergarten instruction or full-day kindergarten instruction pursuant to section 15-703.

§ 15-901.03 Transfers; review

Notwithstanding section 35-173, subsection C, any transfer to or from the amount appropriated for basic state aid entitlement, additional state aid to schools, the special education fund or other state aid to districts line items shall require review by the joint legislative budget committee.

§ 15-901.05 Application of school finance changes

To the extent permitted by the Constitution of Arizona, unless otherwise specified by law, the department shall apply any change to state law that occurs after July 29, 2010 and that modifies or impacts the school finance formulas prescribed in this title, including the base support level, the base revenue control limit, the transportation support level, the transportation revenue control limit, the district additional assistance, the general budget limit or the unrestricted budget limit, on the effective date of that change to state law so that it applies to the entire fiscal year in which the change became effective.

§ 15-901.06 Dropout recovery programs; written learning plan; requirements; annual report; definitions

A. Each alternative school within a school district and each alternative charter school that provides instruction to high school students may offer a dropout recovery program for eligible students. An online course provider as defined in section 15-808 or an online school as defined in section 15-808 that provides Arizona online instruction under section 15-808 may not provide a dropout recovery program.

B. The state board of education shall prescribe standards and achievement testing requirements for dropout recovery programs that attempt to ensure that the programs are compatible with public school education goals and requirements. The standards shall require dropout recovery programs to do all of the following:

Provide curricula aligned to the academic standards adopted by the state board of education. The curricula may be delivered online. An alternative school within a school district or an alternative charter school with a unique entity number may provide a dropout recovery program pursuant to this section if the school is not also an online course provider as defined in section 15-808 or an online school as defined in section 15-808 that provides Arizona online instruction under section 15-808.
Provide standardized tests required by federal and state law.
Make available appropriate and sufficient supports for students, including tutoring, career counseling and college counseling.
Comply with federal and state laws governing students with disabilities.
Meet state requirements for high school graduation.

C. Each eligible student who is enrolled in a dropout recovery program shall have a written learning plan developed by the student's assigned mentor. The written learning plan shall include the following elements:

The start date and anticipated end date of the plan.
Courses to be completed by the student during the academic year.
Whether courses will be taken sequentially or concurrently.
State competency exams to be taken, as necessary.
Expectations for satisfactory monthly progress.
Expectations for contact with the student's assigned mentor.
Whether the student will receive wraparound services or support services, including social work coaching sessions, trauma coaching sessions or food and housing security coaching sessions, that count toward the student's satisfactory monthly progress. Services provided pursuant to this paragraph may count toward a student's satisfactory monthly progress only during the student's initial entry into a dropout recovery program and may not count during any subsequent entries into the same school's dropout recovery program.

D. The monthly participation in a dropout recovery program shall be recorded on or before the tenth school day of each month and shall be reported to the department of education at the same time as other data required pursuant to section 15-1042. Monthly participation calculations shall include:

Newly enrolled students who have a written learning plan on file on or before the first school day of the previous month.
Students who met the expectations for satisfactory monthly progress in the previous month.
Students who did not meet the expectations for satisfactory monthly progress in the previous month but did meet the expectations in the month before the previous month.
Students who met expectations for program reentry in the revised written learning plan in the previous month.

E. Because dropout recovery students are not expected to regularly attend classes at the school district or charter school facilities, standard procedures for recording student attendance cannot be effectively applied to those students. For students participating in a dropout recovery program, an eligible student shall be counted as being in attendance in the school's average daily attendance calculations pursuant to subsection F of this section if the student meets one of the following conditions:

Is in the first month of enrollment in the program and completes the program orientation during that month.
Is enrolled in teacher-facilitated synchronous or asynchronous courses and meets the expectations for satisfactory monthly progress for the current or previous month. A student who does not meet expectations for monthly progress for two or more consecutive months shall not be counted as being in attendance until the student meets the expectations for program reentry.
Meets the expectations for program reentry in the revised written learning plan.

F. If a student is enrolled in a school district or charter school other than the school district or charter school that participates in the dropout recovery program and also participates in a dropout recovery program in the same fiscal year, the average daily membership as prescribed in section 15-901, subsection A, paragraph 1, subdivisions (a) and (b) for that student in the school district or charter school and in a dropout recovery program shall not exceed 1.0, except that if the student is enrolled in a dropout recovery program and a career technical education district, the average daily membership provisions of section 15-393 apply. If the student is enrolled in both a school district or charter school and a dropout recovery program in the same fiscal year and the sum of the average daily membership and average daily attendance for that student is greater than 1.0 or the amount prescribed in section 15-393 if the student is enrolled in a career technical education district, the sum shall be reduced to 1.0 or to the amount specified in section 15-393 if the student is enrolled in a career technical education district and shall be apportioned between the school district or charter school and the career technical education district, if applicable, and the dropout recovery program based on the proportionate shares of average daily membership in the school district or charter school and the average daily attendance in the dropout recovery program. The uniform system of financial records shall include guidelines for apportioning student enrollment and attendance as provided in this subsection. Students in a dropout recovery program do not incur absences for purposes of this subsection and may generate average daily attendance for attendance during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year. The average daily attendance of a student who participates in a dropout recovery program shall not exceed 1.0 or the amount prescribed in section 15-393 if the student is enrolled in a career technical education district and shall be calculated by fulfilling the requirements of subsection E of this section. Average daily membership shall not be calculated on the one hundredth day of instruction for the purposes of this section.

G. Notwithstanding section 15-901, subsection A, paragraph 1, the average daily membership for students who are enrolled in a dropout recovery program shall equal the average daily attendance of the students.

H. School districts and charter schools shall be responsible for tuition charges and fees related to student participation in a dropout recovery program, including course materials and access to technology for use with online courses.

I. School districts and charter schools may contract with an educational management organization to provide dropout recovery program services. If contracting with an educational management organization, the school district or charter school shall ensure that all of the following requirements are met:

The educational management organization is accredited by a regional accrediting body.
Teachers provided by the educational management organization hold a current teaching license from any state and a valid Arizona fingerprint clearance card pursuant to section 15-534, and teachers of core subjects are highly qualified in the subjects to which they are assigned.

J. The department of education shall create and maintain a list of alternative schools within a school district and alternative charter schools that offer a dropout recovery program and the educational management organization, if any, that provides dropout recovery program services to each school. The department shall update the list described in this subsection on a quarterly basis.

K. An alternative school within a school district or an alternative charter school may apply to operate a dropout recovery program by submitting an application to the department of education in the form and manner prescribed by the department. Notwithstanding subsection L of this section, if the school district or alternative charter school contracts with an educational management organization to provide the dropout recovery program, the school district or alternative charter school shall identify the educational management organization in the application required under this subsection. The department shall determine whether the alternative school or alternative charter school meets the criteria prescribed in this section and notify the school district or alternative charter school of the determination within thirty days after receiving the application. The school district or alternative charter school may respond to and appeal the department's determination within thirty days.

L. An alternative school within a school district or an alternative charter school that offers a dropout recovery program pursuant to this section shall notify the department of education within thirty days after entering or terminating a contract with an educational management organization for dropout recovery program services.

M. Dropout recovery programs are subject to the accountability provisions of section 15-241.

N. Entities that are contracted to provide dropout recovery programs may conduct outreach to encourage students who are not currently enrolled in a school district or charter school in this state to return to school. Entities that are contracted to provide dropout recovery programs shall not conduct advertising or marketing campaigns directed at students who are currently enrolled in a school district or charter school, or undertake any other activity that encourages students who are currently enrolled in a school district or charter school to stop attending school in order to qualify for a dropout recovery program.

O. On or before July 31 of each year, each school and educational management organization that provides a dropout recovery program shall report to the department of education the following information in the form and manner prescribed by the department:

The total number of students who satisfy both of the following requirements during the fiscal year:

(a) Are continuously enrolled in the dropout recovery program for at least eighty school days.

(b) Earn at least four and one-half credits or earn all the remaining credits that the student needs for graduation.

The total number of students who are enrolled in the dropout recovery program on or before January 31 during the fiscal year and who either:

(a) Graduated before January 31.

(b) Met all of the following requirements on January 31:

(i) Were enrolled in the dropout recovery program.

(ii) Needed three or fewer credits to satisfy the graduation requirements prescribed by the state board of education.

(iii) Needed one or fewer credits in mathematics to satisfy the graduation requirements prescribed by the state board of education.

The percentage of students described in paragraph 2 of this subsection who graduated during the fiscal year.
The percentage of students described in paragraph 2 of this subsection who earned at least one college and career readiness indicator point.

P. On or before November 1 of each year, the department of education shall compile the information received under subsection O of this section in a report, shall submit the report to the governor, the president of the senate and the speaker of the house of representatives and shall post the report on the department's website.

Q. For the purposes of this section:

"Eligible student" means a student who is not currently enrolled in a school district or charter school and who has been withdrawn from a school district or charter school for at least ten days, unless the school district or alternative charter school determines that the student is unable to participate in other school district or charter school programs.
"Satisfactory monthly progress":

(a) Means an amount of progress that is measurable on a monthly basis and that, if continued for twelve months, would result in the same amount of academic credit being awarded to the student as would be awarded to a student in a traditional education program who completes a full school year.

(b) Includes a lesser required amount of progress for the first two months that the student participates in the program so that wraparound services or support services provided pursuant to the student's written learning plan may be established.

§ 15-901.07 Concurrent coursework; calculation of average daily membership; definition

A. A school district or a charter school may include students enrolled in concurrent coursework for the purposes of calculating average daily membership if the school district has received approval from the state board of education or the charter school has received approval from its sponsor to offer concurrent coursework and all of the following apply:

A student earns at least three semester hours of credit per semester in the community college or university course.
A student is awarded academic credit by the school district or charter school for the concurrent coursework pursuant to section 15-701.01.
The concurrent coursework is at a higher level than the course taught at the school district or charter school in grades nine through twelve.
A student who is enrolled in concurrent coursework also attends at least one course offered at the school district or charter school per semester.
The concurrent coursework is applicable to an established community college academic degree or certificate program that is transferable to a university under the jurisdiction of the Arizona board of regents. Concurrent coursework that is applicable to a community college occupational degree or certificate program may be transferable to a university under the jurisdiction of the Arizona board of regents.
The school district or charter school pays the community college or university for the tuition cost of the concurrent coursework or reimburses the student for the tuition cost of the concurrent coursework.

B. A course at a community college or university of three semester hours of credit or more is considered a subject for the purposes of meeting the definition of full-time student prescribed in section 15-901. A course at a community college or university of three semester hours of credit or more is not required to meet one hundred twenty-three hours a year, or the equivalent, to be considered a subject.

C. Instructional hours provided by a community college or university to a student in concurrent coursework shall be included in the calculation of the average daily membership for that student pursuant to section 15-901.

D. Average daily membership for classes at a community college or university shall be based on the community college or university credits earned by the student. For each community college or university course for which three credits are earned, one-eighth of an average daily membership shall be generated. Except as otherwise provided by law, for a full-time high school student who attends concurrent enrollment courses pursuant to this section, the average daily membership may not exceed 1.0.

E. For the purposes of this section, "concurrent coursework" means courses at a community college under the jurisdiction of a community college district in this state or at a university under the jurisdiction of the Arizona board of regents in the required or elective subjects that satisfy high school graduation requirements pursuant to section 15-701.01.

§ 15-901.08 School year; school month; instructional time models; requirements; funding; definition

A. Except as may be otherwise authorized by the superintendent of public instruction to accommodate a year-round school operation or as otherwise prescribed under an instructional time model adopted pursuant to this section, the school year begins July 1 and ends June 30, and a school month is twenty school days or four weeks of five days each.

B. Notwithstanding any other law, for the purposes of meeting the instructional time and instructional hours requirements prescribed in sections 15-797, 15-808 and 15-901, a school district governing board, after at least two public hearings in the school district, or a charter school governing body for one or more schools may adopt any instructional time models as prescribed in this section to meet the minimum annual instructional time and instructional hours requirements prescribed in sections 15-797, 15-808 and 15-901 for all of the following purposes:

Determining average daily membership.
Determining daily attendance.
Determining student count.
Any other purpose relating to instructional time or instructional hours prescribed in section 15-797, 15-808 or 15-901.

C. Notwithstanding any other law, all of the following apply to an instructional time model adopted by a school district governing board or charter school governing body for one or more schools pursuant to this section:

Students shall receive the minimum instructional time or instructional hours required under section 15-797, 15-808 or 15-901, as applicable, for the full school year in any day, week and course length increments adopted by the school district governing board or charter school governing body.
A school may deliver the annual required instructional time or instructional hours to students through any combination of the following:

(a) Direct instruction.

(b) Project-based learning.

(d) Mastery-based learning, which may be delivered in a blended classroom serving multiple grade levels or providing blended grade level content.

A school may define instructional time and instructional hours to include any combination of the following:

(a) In-person instruction.

(b) Remote instruction, subject to all of the following:

(i) During school year 2021-2022, a school may provide up to fifty percent of its total instructional time in a remote setting without any impact to the school's funding. Beginning in school year 2022-2023 and each school year thereafter, a school may provide up to forty percent of its total instructional time in a remote setting without any impact to the school's funding.

(ii) If a school provides instructional time in a remote setting beyond the threshold prescribed in item (i) of this subdivision in any school year, the department of education shall calculate funding as prescribed in subsection D of this section.

(iii) The department of education shall annually provide a list of schools that provide more than the allowed instructional time in a remote setting to the state board of education. The state board of education shall determine whether the school must apply to become an online school under section 15-808.

(iv) The department of education shall annually provide a list of charter schools that provide more than the allowed instructional time in a remote setting to the state board for charter schools. The state board for charter schools shall determine whether the charter school must apply to become an online school under section 15-808.

A school may reallocate any minimum instructional time or instructional hours per course required under section 15-797, 15-808 or 15-901 or any other statute to other courses on a per-student basis so that students are able to spend more of their required instructional time or instructional hours on courses of greater depth or courses that require additional learning time to catch up to grade level or to stay on pace.
A school may stagger learning times and schedules for students and may offer courses and other instructional time options on the weekend or in the evenings so that all students are not expected to attend or complete their school day or instructional time at the same time.
A school shall align its attendance policies to reflect the instructional time and instructional hours policies prescribed under the adopted instructional time model.

D. If a school provides remote instructional time beyond the threshold prescribed in subsection C, paragraph 3, subdivision (b), item (i) of this section in any school year, the department of education shall calculate funding as follows:

Calculate the total percentage of instructional time provided by the school in a remote setting.
Subtract the allowable threshold prescribed in subsection C, paragraph 3, subdivision (b), item (i) of this section from the amount calculated pursuant to paragraph 1 of this subsection.
Fund the percentage of the base support level equal to the percentage calculated in paragraph 2 of this subsection at ninety-five percent of the base support level that would otherwise be calculated for the school.

E. For the purposes of this section, "mastery-based learning" means a system in which students advance to higher levels of learning when they demonstrate mastery of concepts and skills regardless of time, place or pace.

§ 15-902.01 Student revenue loss phasedown

A. A school district that loses at least five hundred students from its student count as a result of the formation of a joint unified school district pursuant to section 15-450 and that does not receive tuition for those students for the budget year may increase its base support level for the budget year by an amount as follows:

For the first year of the loss, six hundred fifty thousand dollars.
For the second year following the loss, six hundred thousand dollars.
For the third year following the loss, five hundred thousand dollars.
For the fourth year following the loss, three hundred thousand dollars.
For the fifth year following the loss, one hundred thousand dollars.

B. In addition to any adjustment for tuition loss received pursuant to section 15-954, a union high school district that loses at least fifty students from its tuition count as a result of the formation of a joint unified school district pursuant to section 15-450 and that does not receive tuition for those students for the budget year may increase its base support level for the budget year by an amount as follows:

For the first year of the loss, one hundred thousand dollars.
If during the second year following the initial loss of students the union high school district loses an additional fifty students as a result of the formation of a joint unified school district pursuant to section 15-450 and does not receive tuition for those students for the budget year, two hundred thousand dollars.
If during the third year following the initial loss of students the union high school district loses an additional fifty students beyond the second year's additional loss as a result of the formation of a joint unified school district pursuant to section 15-450 and does not receive tuition for those students for the budget year, three hundred twenty-five thousand dollars.
If the union high school district was eligible for the three hundred twenty-five thousand dollars as provided in paragraph 3 of this subsection, for the fourth year following the initial loss of students, two hundred thousand dollars.
If the union high school district was eligible for the two hundred thousand dollars as provided in paragraph 4 of this subsection, for the fifth year following the initial loss of students, one hundred thousand dollars.

§ 15-902.03 Procedures for determining average daily membership

A. The department of education shall recompute and aggregate average daily membership for the previous fiscal year no later than August 30. The department shall inform school districts and charter schools of their final average daily membership no later than September 15. No later than November 1 of each year, state aid calculations for all school districts and charter schools for the previous fiscal year must be finalized and the budget limits for school districts must be adjusted. Any future adjustments in student counts, if discovered by the school district or charter school, shall be made pursuant to section 15-915.

B. Notwithstanding subsection A of this section, school districts may continue to make budget adjustments pursuant to section 15-905 and make corrections pursuant to section 15-915.

§ 15-902.04 Optional two hundred days of instruction; definition

A. A school district, charter holder or private residential facility that elects to provide at least two hundred days of instruction may increase its base level by five percent. A school district, charter holder or private residential facility that elects to provide at least two hundred days of instruction shall obtain approval from the department of education before the beginning of the fiscal year that the school district, charter holder or private residential facility is planning on offering instruction for at least two hundred days. The school district, charter holder or private residential facility shall ensure that the last day of instruction in any school year occurs before June 30. The school district, charter school or private residential facility shall increase its annual instructional hours by at least ten percent in order to receive the base level increase prescribed in this section.

B. For the purposes of this section, "private residential facility" has the same meaning prescribed in section 15-1181.

§ 15-903 Budget format; prohibited expenditures; annual report

A. The superintendent of public instruction in conjunction with the auditor general shall prepare and prescribe a budget format to be used by all school districts.

B. The budget format shall be designed to allow all school districts to plan and provide in detail for using available monies. The budget format shall contain distinct sections for, but need not be limited to, maintenance and operation, debt service, special projects, capital outlay, adjacent ways and classroom site fund. The maintenance and operation section shall include, but need not be limited to, separate subsections for regular education programs, special education programs and operational expenditures for pupil transportation. Each subsection shall clearly distinguish classroom instruction expenditures. The special education program subsection shall include a subtotal for the disability classifications as defined in section 15-761 and programs for gifted, vocational and technical education, remedial education and bilingual students. The total expenditures for each of these programs shall be included on the budget form. The pupil transportation subsection shall include all operational expenditures relating to transporting pupils, including all operational expenditures within a contract if the school district contracts for pupil transportation.

C. The capital outlay section of the budget shall include a subsection for unrestricted capital outlay. The unrestricted capital outlay subsection shall include budgeted expenditures for acquisitions by purchase, lease-purchase or lease of capital items as defined in the uniform system of financial records and shall include:

Land, buildings and improvements to land and buildings, including labor and related employee benefits costs and material costs if work is performed by school district employees.
Furniture, furnishings, athletic equipment and other equipment, including computer software.
Pupil and nonpupil transportation vehicles and equipment, including all capital expenditures within a contract if the school district contracts for pupil transportation.
Textbooks and related printed subject matter materials adopted by the governing board.
Instructional aids.
Library books.
Payment of principal and interest on bonds.
School district administration emergency needs that are directly related to pupils.

D. The budget format shall contain distinct subsections for the following:

Special programs to improve academic achievement of pupils in kindergarten programs and grades one through three as provided in section 15-482.
School plant funds.
Capital outlay budget increases as provided in section 15-481.
Property taxation, including the following:

(a) The primary tax rates for the school district for the current year and the budget year.

(b) The secondary tax rates for maintenance and operation, K-3 and capital overrides for the school district for the current year and the budget year.

(d) The secondary tax rates for class B bonds for the school district for the current year and the budget year.

A description of any corrections or adjustments made to the budget pursuant to section 15-915.

E. The budget format shall also contain:

A statement identifying proposed pupil-teacher ratios and pupil-staff ratios relating to the provision of special education services for the budget year.
The prominent display of the average salary of all teachers employed by the school district for the current year. The school district shall also prominently post this information on its website home page separately from its budget.
The prominent display of the average salary of all teachers employed by the school district for the previous year. The school district shall also prominently post this information on its website home page separately from its budget.
The prominent display of the dollar increase in the average salary of all teachers employed by the school district for the current year. The school district shall also prominently post this information on its website home page separately from its budget.
The prominent display of the percentage increase in the average salary of all teachers employed by the school district for the current year. The school district shall also prominently post this information on its website home page separately from its budget.

F. The special projects section shall include budgeted expenditures for state special projects, including special adult projects, career education, deficiencies correction fund projects and new school facilities fund projects, such federal special projects as ESEA title programs, vocational education and title IV Indian education, and other special projects.

G. A school district shall not make expenditures for campaign literature associated with school district or charter school officials. If the superintendent of public instruction determines that a school district has violated this subsection, the superintendent of public instruction may withhold any portion of the school district's apportionment of state aid.

H. The budget format shall include an electronic format that shall be submitted for each proposed, adopted and revised budget.

I. On or before November 30 of each year, the department of education shall electronically submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that compiles the information required by subsection E, paragraphs 2 through 5 of this section for all school districts statewide.

§ 15-904 School district annual financial report; publication; summary

A. The governing board of each school district shall publish an annual financial report for the prior fiscal year by November 15. The auditor general in conjunction with the department of education shall prescribe the format of the financial report to be used by school districts. The financial report shall contain budgeted and actual expenditures for the preceding fiscal year and shall be prepared and distributed by October 15 by the school district with a copy to the county school superintendent. A copy of the annual financial report shall be submitted electronically by the school district to the superintendent of public instruction by October 15. On or before October 15, the governing board shall submit the annual financial report for the previous fiscal year to the department of education, which shall prominently display this information about that school district on the website maintained by the department. If the school district maintains a website, the school district shall post a link to the website of the department of education where this information about the school district is posted.

B. In addition to the information required in subsection A of this section, the annual financial report shall contain detailed information on the school district budgeted and actual expenditures from the bond building fund, the unrestricted capital fund, the adjacent ways fund, the deficiencies correction fund and the new school facilities fund, including information on classified salaries, employee benefits, interest and fiscal charges, capital lease agreements, land and improvements, buildings and improvements, furniture and equipment, technology and vehicles and transportation equipment for pupils. The information shall specify whether the expenditures are for school district renovation or for new construction, the cost per square foot and land acquisition costs, as appropriate.

C. Except as provided in subsection D of this section, the governing board shall publish, by November 15, the annual financial report for the school district either in a newspaper of general circulation within the school district, by electronic transmission of the information to the department of education for posting on the department's website or in the official newspaper of the county as prescribed in section 11-255, or the governing board may mail the annual financial report for the school district to each household in the school district. If the governing board chooses to transmit the report electronically to the department of education, the school district shall provide a link on the school district's website to the report on the department's website. If the governing board chooses to publish the report in a newspaper, the size of the newspaper print shall be at least eight-point type. The cost of publication or mailing shall be a charge against the school district. The publisher's affidavit of publication shall be filed by the governing board of the school district with the superintendent of public instruction within thirty days after publication.

D. The governing board may publish or mail a summary of the annual financial report in the same manner as provided in subsection C of this section. The auditor general in conjunction with the department of education shall prescribe the form of the summary of the annual financial report for use by the governing boards.

E. The superintendent of public instruction shall compile the financial reports of the school districts, including expenditure data for federal and state projects, and shall report to the governor and the legislature on or before January 15 of each year as provided in section 15-255.

F. Beginning in fiscal year 2020-2021, the annual financial report prescribed by this section shall include the school level data for charter schools and schools operated by school districts prescribed in section 15-746, subsection E.

§ 15-905 School district budgets; notice; adoption; aggregate budget limit; summary; adjustments; impact aid fund; definition

A. Not later than July 5 of each year or not later than the publication of notice of the public hearing and board meeting as required by this section, the governing board of each school district shall prepare and furnish to the superintendent of public instruction and the county school superintendent, unless waived by the county school superintendent, a proposed budget in an electronic format for the budget year, which shall contain the information and be in the form as provided by the department of education. The proposed budget shall include the following:

The total amount of revenues from all sources that was necessary to meet the school district's budget for the current year.
The total amount of revenues by source that will be necessary to meet the proposed budget of the school district, excluding property taxes. The governing board shall prepare the proposed budget and a summary of the proposed budget. Both documents shall be kept on file at the school district office and shall be made available to the public on request. Not later than July 5 of each year or not later than the publication of notice of the public hearing and board meeting required by this subsection, the governing board shall submit the proposed budget to the department of education, which shall prominently display this information about that school district on the website maintained by the department. If the school district maintains a website, the school district shall post a link to the website of the department of education where this information about the school district is posted. The auditor general in conjunction with the department of education shall prescribe the form of the summary of the proposed budget for use by governing boards. School district governing boards may include in the proposed budget any items or amounts that are authorized by legislation filed with the secretary of state and that will become effective during the budget year. If subsequent events prevent the legislation from becoming effective, school district governing boards must reduce their budgets by the amounts budgeted pursuant to the legislation that did not become effective.

B. The governing board of each school district shall prepare a notice fixing a time not later than July 15 and designating a public place within each school district at which a public hearing and board meeting shall be held. The governing board shall present the proposed budget for consideration of the residents and the taxpayers of the school district at that hearing and meeting.

C. The governing board of each school district shall publish or mail, before the hearing and meeting, a copy of the proposed budget or the summary of the proposed budget and a notice of the public hearing and board meeting not later than ten days before the meeting. The proposed budget and the summary of the proposed budget shall contain the percentage of increase or decrease in each budget category of the proposed budget as compared to each category of the budget for the current year. Notification shall be either by publication in a newspaper of general circulation within the school district in which the size of the newspaper print is at least eight-point type, by electronic transmission of the information to the department of education for posting on the department's website or by mailing the information to each household in the school district. The cost of publication, website posting or mailing shall be a charge against the school district. The publisher's affidavit of publication shall be filed by the governing board with the superintendent of public instruction within thirty days after publication. If the budget or proposed budget and notice are posted on a website maintained by the department of education or mailed, the board shall file an affidavit with the superintendent of public instruction within thirty days after the mailing or the date that the information is posted on the website. If a truth in taxation notice and hearing is required under section 15-905.01, the governing board may combine the notice and hearing under this section with the truth in taxation notice and hearing.

D. At the time and place fixed in the notice, the governing board shall hold the public hearing and present the proposed budget to the persons attending the hearing. On request of any person, the governing board shall explain the budget, and any resident or taxpayer of the school district may protest the inclusion of any item. A governing board member who has a substantial interest, as defined in section 38-502, in a specific item in the school district budget shall refrain from voting on the specific item. A governing board member may participate without creating a conflict of interest in adopting a final budget even though the member may have substantial interest in specific items included in the budget.

E. Immediately following the public hearing the president shall call to order the governing board meeting for the purpose of adopting the budget. The governing board shall adopt the budget, which shall not exceed the general budget limit or the unrestricted capital budget limit, making such deductions as it sees fit but making no additions to the proposed budget total for maintenance and operations or capital outlay, and shall enter the budget as adopted in its minutes. Not later than July 18, the budget as finally adopted shall be submitted electronically to the superintendent of public instruction. Not later than July 18, the governing board shall submit the budget as finally adopted to the department of education, which shall prominently display this information about that school district on the website maintained by the department. If the school district maintains a website, the school district shall post a link to the website of the department of education where this information about the school district is posted. On or before October 30, the superintendent of public instruction shall review the budget and notify the governing board if the budget exceeds the general budget limit or the unrestricted capital budget limit. The governing board shall revise the budget as follows:

If the governing board receives notification that the budget exceeds the general budget limit or the unrestricted capital budget limit by one percent of the general budget limit, it shall adopt on or before December 15, after it gives notice and holds a public meeting in a similar manner as provided in subsections C and D of this section, a revised budget for the current year, which shall not exceed the general budget limit or the unrestricted capital budget limit.
If the governing board receives notification that the budget exceeds the general budget limit or the unrestricted capital budget limit by less than the amount prescribed in paragraph 1 of this subsection, the governing board shall adjust the budget and expenditures so as not to exceed the general budget limit or the unrestricted capital budget limit for the current year.
Not later than December 18, the budget as revised shall be submitted electronically to the superintendent of public instruction. Procedures for adjusting expenditures or revising the budget shall be as prescribed in the uniform system of financial records.

F. The governing board of each school district may budget for expenditures within the school district budget as follows:

Amounts within the general budget limit, as provided in section 15-947, subsection C, may only be budgeted in the following sections of the budget:

(a) The maintenance and operation section.

(b) The capital outlay section.

Amounts within the unrestricted capital budget limit, as provided in section 15-947, subsection D, may only be budgeted in the unrestricted capital outlay subsection of the budget. Monies received pursuant to the unrestricted capital budget limit shall be placed in the unrestricted capital outlay fund. The monies in the fund are not subject to reversion.

G. The governing board may authorize the expenditure of monies budgeted within the maintenance and operation section of the budget for any subsection within the section in excess of amounts specified in the adopted budget only by action taken at a public meeting of the governing board and if the expenditures for all subsections of the section do not exceed the amount budgeted as provided in this section.

H. The aggregate budget limit is the sum of the following:

The general budget limit as determined in section 15-947 for the budget year.
The unrestricted capital budget limit as determined in section 15-947 for the budget year.
Federal assistance, excluding title VIII of the elementary and secondary education act of 1965 monies.

I. School districts that overestimated tuition revenues as provided in section 15-947, subsection C, paragraph 2 shall adjust the general budget limit and expenditures based on tuition revenues for attendance of nonresident pupils during the current fiscal year. School districts that underestimated tuition revenues may adjust their budgets before May 15 based on tuition revenues for attendance of nonresident pupils during the current fiscal year. School districts that overestimated revenues as provided in section 15-947, subsection C, paragraph 2, subdivision (a), items (iii), (iv) and (v) and subdivision (c) shall adjust the general budget limit and expenditures based on actual revenues during the current fiscal year. School districts that underestimated such revenues may adjust their budgets before May 15 based on actual revenues during the current fiscal year. Procedures for completing adjustments shall be as prescribed in the uniform system of financial records. Not later than May 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction.

J. A common school district not within a high school district whose estimated tuition charge for high school pupils exceeds the actual tuition charge for high school pupils shall adjust the general budget limit and expenditures based on the actual tuition charge. Not later than May 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction. A common school district not within a high school district whose estimated tuition charge for high school pupils is less than the actual tuition charge for high school pupils may adjust its budget before May 15 based on the actual tuition charge. Procedures for completing adjustments shall be as prescribed in the uniform system of financial records. If the adjusted general budget limit requires an adjustment of state aid and if the adjustment to state aid is not made in the current year, the superintendent of public instruction shall adjust by August 15 of the succeeding fiscal year the apportionment of state aid to the school district to correct any overpayment or underpayment of state aid received during the current year.

K. The governing board may include title VIII of the elementary and secondary education act of 1965 assistance allocated for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703, which is in addition to basic assistance when determining the general budget limit as prescribed in section 15-947, subsection C. The increase in the general budget limit for children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local education agency shall equal the dollar amount calculated pursuant to 20 United States Code section 7703(b)(2). The governing board may adjust before May 15 the budget for the current year based on any adjustments that result in increases over the amount estimated by the superintendent of public instruction for title VIII of the elementary and secondary education act of 1965 assistance for such pupils for the fiscal year preceding the current year. The governing board shall adjust before May 15 the budget for the current year based on any adjustments that result in decreases in the amount estimated by the superintendent of public instruction for title VIII of the elementary and secondary education act of 1965 assistance for such pupils for the fiscal year preceding the current year. Not later than May 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction. Procedures for complying with this subsection shall be as prescribed in the uniform system of financial records.

L. The department of education shall notify the state board of education if expenditures by any school district exceed the general budget limit prescribed in section 15-947, subsection C, the unrestricted capital budget limit, the school plant fund limits prescribed in section 15-1102, subsection B, the maintenance and operation section of the budget or the capital outlay section of the budget. If the expenditures of any school district exceed these limits or sections of the budget without authorization as provided in section 15-907, and if the state board of education determines that the equalization assistance for education received by the school district as provided in section 15-971 does not conform with statutory requirements, the state board of education shall reduce the state aid for equalization assistance for education for the school district computed as provided in section 15-971 during the fiscal year subsequent to the fiscal year in which the excess equalization assistance for education was received by an amount equal to the excess equalization assistance for education, except that in case of hardship to the school district, the superintendent of public instruction may approve reductions partly in the first subsequent year and partly in the second subsequent year. If the state board of education determines that the equalization assistance for education received by the school district conforms with statutory requirements, the state board of education shall not reduce the district's equalization assistance for education pursuant to this subsection but the district shall reduce the budget limits as required in subsection M of this section. A school district that disagrees with the department of education's determination regarding an excess expenditure under this subsection may request a hearing before the state board of education.

M. The governing board of a school district shall reduce the general budget limit or the unrestricted capital budget limit for the year subsequent to the year in which the expenditures were in excess of the applicable limit or section of the budget by the amount determined in subsection L of this section, except that in case of hardship to the school district, the superintendent of public instruction may approve reductions partly in the first subsequent year and partly in the second subsequent year. The reduction in the limit is applicable to each school district that has exceeded the general budget limit, the unrestricted capital budget limit or a section of the budget even if the reduction exceeds the state aid for equalization assistance for education for the school district.

N. Except as provided in section 15-916, no expenditure shall be made by any school district for a purpose not included in the budget or in excess of the aggregate budget limit prescribed in this section, except that if no budget has been adopted, from July 1 to July 15 the governing board may make expenditures if the total of the expenditures does not exceed ten percent of the prior year's aggregate budget limit. Any expenditures made from July 1 to July 15 and before the adoption of the budget shall be included in the total expenditures for the current year. No expenditure shall be made and no debt, obligation or liability shall be incurred or created in any year for any purpose itemized in the budget in excess of the amount specified for the item irrespective of whether the school district at any time has received or has on hand funds in excess of those required to meet the expenditures, debts, obligations and liabilities provided for under the budget except expenditures from cash controlled funds as defined by the uniform system of financial records and except as provided in section 15-907 and subsection G of this section. This subsection does not prohibit any school district from prepaying insurance premiums, magazine subscriptions or officiating services, or from prepaying any item that is normally prepaid in order to procure the service or to receive a discounted price for the service, as prescribed by the uniform system of financial records.

O. The governing board of a school district that is classified as a heavily impacted school district having twenty percent or more pupils pursuant to 20 United States Code section 238(d)1(A) may determine its eligibility to increase the amount that may be included in determining the general budget limit as provided in subsection K of this section and may increase the amount as follows:

For fiscal year 1988-1989:

(a) Multiply $1,094 by the number of children with disabilities or children with specific learning disabilities, excluding children who also reside on Indian lands, reported to the division of impact aid, United States department of education in the district's application for fiscal year 1987-1988.

(b) Multiply $547 by the number of children residing on Indian lands, excluding children who have disabilities or also have specific learning disabilities, reported to the division of impact aid, United States department of education in the district's application for fiscal year 1987-1988.

(c) Multiply $1,914 by the number of children residing on Indian lands who have disabilities or also have specific learning disabilities reported to the division of impact aid, United States department of education in the district's application for fiscal year 1987-1988.

(d) Add the amounts determined in subdivisions (a) through (c) of this paragraph.

(e) If the amount of title VIII of the elementary and secondary education act of 1965 assistance as provided in subsection K of this section is less than the sum determined in subdivision (d) of this paragraph, the district is eligible to use this subsection.

For budget years after 1988-1989, use paragraph 1 of this subsection, but increase each dollar amount by the growth rate for that year as prescribed by law, subject to appropriation and use the number of children reported in the appropriate category for the current fiscal year.
If the district is eligible to use this subsection, subtract the amount of title VIII of the elementary and secondary education act of 1965 assistance determined in subsection K of this section from the sum determined in paragraph 1, subdivision (d) of this subsection. The difference is the increase in the amount that may be included in determining the general budget limit as provided in subsection K of this section, if including this amount does not increase the district's primary tax rate for the budget year. If the amount of title VIII of the elementary and secondary education act of 1965 assistance determined in subsection K of this section is adjusted for the current year, the increase determined in this paragraph shall be recomputed using the adjusted amount and the recomputed increase shall be reported to the department of education by May 15 on a form prescribed by the department of education.
If a district uses this subsection, the district is not required to adjust its budget for the current year based on adjustments in the estimated amount of title VIII of the elementary and secondary education act of 1965 assistance as provided in subsection K of this section.

P. A school district, except for an accommodation school, that applies for title VIII of the elementary and secondary education act of 1965 assistance during the current year may budget an amount for title VIII of the elementary and secondary education act of 1965 administrative costs for the budget year. The amount budgeted for title VIII of the elementary and secondary education act of 1965 administrative costs is exempt from the revenue control limit and may not exceed an amount determined for the budgeted year as follows:

Determine the minimum cost. The minimum cost for fiscal year 1990-1991 is $2,343. For fiscal year 1991-1992 and thereafter, the minimum cost is the minimum cost for the prior year increased by the growth rate as prescribed by law, subject to appropriation.
Determine the hourly rate. The hourly rate for fiscal year 1990-1991 is $9.38. For fiscal year 1991-1992 and thereafter, the hourly rate is the hourly rate for the prior year increased by the growth rate as prescribed by law, subject to appropriation.
Determine the title VIII of the elementary and secondary education act of 1965 revenues available by subtracting 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 subsections K and O of this section for the current fiscal year from the total amount of title VIII of the elementary and secondary education act of 1965 revenues received in the current fiscal year.
Determine the total number of administrative hours as follows:

(a) Determine the sum of the following:

(i) 1.00 hours for each high impact pupil who is not a person with a disability or does not have specific learning disabilities.

(ii) 1.25 hours for each high impact pupil who is a person with a disability or has specific learning disabilities.

(iii) 0.25 hours for each low impact pupil who is not a person with a disability or does not have specific learning disabilities.

(iv) 0.31 hours for each low impact pupil who is a person with a disability or has specific learning disabilities.

(b) For the purposes of this paragraph:

(i) "High impact pupil" means a pupil who resides on Indian lands or a pupil who resides on federal property or in low rent housing and whose parent is employed on federal property or low rent housing property or is on active duty in uniformed service, as provided in title VIII of the elementary and secondary education act of 1965, section 8003(a) (20 United States Code section 7703) and as reported in the application for title VIII of the elementary and secondary education act of 1965 assistance in the current year.

(ii) "Low impact pupil" means a pupil who resides on nonfederal property and has a parent who is employed on federal property or low rent housing property or is on active duty in a uniformed service or a pupil who resides on federal property or in low rent housing and who does not have a parent who is employed on federal property or low rent housing property or is on active duty in uniformed service, as provided in title VIII of the elementary and secondary education act of 1965, section 8003(a) (20 United States Code section 7703) and as reported in the application for title VIII of the elementary and secondary education act of 1965 assistance in the current year.

Multiply the total number of administrative hours determined in paragraph 4 of this subsection by the hourly rate determined in paragraph 2 of this subsection.
Determine the greater of the minimum cost determined in paragraph 1 of this subsection or the product determined in paragraph 5 of this subsection.
Add to the amount determined in paragraph 6 of this subsection the amount, if any, to be expended by the school district in the budget year through an intergovernmental agreement with other school districts or the department of education to provide title VIII of the elementary and secondary education act of 1965 technical assistance to participating districts.
Determine the lesser of the amount determined in paragraph 7 of this subsection or the revenues available as determined in paragraph 3 of this subsection.
The amount determined in paragraph 8 of this subsection is the maximum amount that may be budgeted for title VIII of the elementary and secondary education act of 1965 administrative costs for the budget year as provided in this subsection.
If the governing board underestimated the amount that may be budgeted for title VIII of the elementary and secondary education act of 1965, section 8007 administrative costs for the current year, the board may adjust the general budget limit and the budget before May 15. If the governing board overestimated the amount that may be budgeted for title VIII of the elementary and secondary education act of 1965 administrative costs for the current year, the board shall adjust the general budget limit and the budget before May 15.

Q. If a school district governing board has adopted a budget for a fiscal year based on forms and instructions provided by the auditor general and the department of education for that fiscal year and if, as a result of the enactment or nonenactment of proposed legislation after May 1 of the previous fiscal year, the budget is based on incorrect limits, does not include items authorized by law or does not otherwise conform with law, the governing board may revise its budget at a public hearing on or before September 15 to conform with the law. Not later than September 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction. If the governing board does not revise the budget on or before September 15 and if the budget includes any items not authorized by law or if the budget exceeds any limits, the governing board shall adjust or revise the budget as provided in subsection E of this section.

R. Notwithstanding any other law, if a school district receives assistance pursuant to title VIII of the elementary and secondary education act of 1965, the school district shall establish a local level fund designated as the impact aid fund and deposit the impact aid monies received in the fund. The school district shall separately account for monies in the fund and shall not combine monies in the fund with any other source of local, state or federal assistance. Monies in the fund shall be expended pursuant to federal law only for the purposes allowed by this title. The school district shall account for monies in the fund according to the uniform system of financial records as prescribed by the auditor general. The superintendent of public instruction shall separately account for monies in each school district's impact aid fund, if an impact aid fund is established, in the annual report required by section 15-255. Monies in the fund are considered federal monies and are not subject to legislative appropriation.

S. For the purposes of this section, "title VIII of the elementary and secondary education act of 1965 assistance" means, for the current year, an amount equal to the final determination of title VIII of the elementary and secondary education act of 1965 assistance for the fiscal year preceding the current year as confirmed by the division of impact aid, United States department of education or, if a final determination has not been made, the amount estimated by the superintendent of public instruction as confirmed by the division of impact aid, United States department of education and, for the budget year, an amount equal to the determination of title VIII of the elementary and secondary education act of 1965 assistance for the fiscal year preceding the budget year as estimated by the superintendent of public instruction.

§ 15-905.01 Truth in taxation; calculation; notice and hearing; vote on tax increase

A. Each school district shall determine its truth in taxation base limit for expenditures as follows:

Determine the amounts budgeted in fiscal year 1999-2000 for expenditures in the following categories:

(a) Desegregation pursuant to section 15-910.

(b) Dropout prevention programs.

(d) Small school adjustments pursuant to section 15-949.

The sum of the expenditures in paragraph 1 of this subsection for fiscal year 1999-2000 shall become the truth in taxation base limit.
For any year after fiscal year 1999-2000, a school district whose aggregate budgeted expenditures for the expenditures prescribed in paragraph 1 of this subsection exceed the truth in taxation base limit shall publish a truth in taxation hearing notice that meets the requirements of subsection B of this section. If the amount exceeding the previous truth in taxation base limit is approved by the school district governing board following the hearing prescribed in subsection B of this section, the excess amount plus the previous truth in taxation base limit becomes the school district's new truth in taxation base limit.
If a school district no longer qualifies for one or more of the expenditures prescribed in paragraph 1 of this subsection, the amount budgeted for the most recent fiscal year in which the school district was eligible for that expenditure shall be deducted from the school district's truth in taxation base limit.

B. For any fiscal year in which a school district governing board budgets an amount that is higher than the truth in taxation base limit calculated pursuant to subsection A of this section, any fiscal year in which a school district levies any amount for adjacent ways pursuant to section 15-995 or any fiscal year in which the school district levies any amount for liabilities in excess of the school district budget pursuant to section 15-907:

The school district shall publish a notice that meets the following requirements:

(a) The notice shall be published once in a newspaper of general circulation in the school district. The publication shall be at least ten but not more than twenty days before the date of the hearing.

(b) The notice shall be published in a location other than the classified or legal advertising section of the newspaper in which it is published.

(c) The notice shall be at least one-fourth page in size and shall be surrounded by a solid black border at least one-eighth inch in width.

(d) The notice shall be in the following form, excluding the parenthetical explanations, and with the "truth in taxation hearing - notice of tax increase" headline in at least eighteen-point type:

Truth in Taxation Hearing

Notice of Tax Increase

In compliance with section 15-905.01, Arizona Revised Statutes, _________ school district is notifying its property taxpayers of _________ school district's intention to raise its primary property taxes over the current level to pay for increased expenditures in those areas where the governing board has the authority to increase property taxes for the fiscal year beginning July 1, . The _________ school district is proposing an increase in its primary property tax levy of $_____ (amount of levy increase to pay for truth in taxation base increase, the amount of the total levy for the adjacent ways fund and amounts for liabilities in excess of the school district budget pursuant to section 15-907).

The amount proposed above will cause _________ school district's primary property taxes on a $100,000 home to be $_________ (the amount used to pay for the budget year's proposed truth in taxation base limit and adjacent ways levy, including adjacent ways and liabilities in excess of the school district budget [the amount divided by the current net assessed value available February 10 pursuant to section 42-17052] applied to $100,000). Without the tax increase, the total taxes that would be owed would have been $_________ (the amount used to pay for the current year's truth in taxation base limit [the amount divided by the current net assessed value available February 10 pursuant to section 42-17052] applied to $100,000).

These amounts proposed are above the qualifying tax levies as prescribed by state law, if applicable. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the proposed tax increase scheduled to be held (date and time) at (location).

In lieu of publishing the truth in taxation notice, the governing board may mail the truth in taxation notice prescribed by paragraph 1, subdivision (d) of this subsection to all registered voters in the district at least ten but not more than twenty days before the date of the hearing.
In addition to publishing the truth in taxation notice under paragraph 1 of this subsection or mailing the notice under paragraph 2 of this subsection, the governing board shall issue a press release containing the truth in taxation notice to all newspapers of general circulation in the school district.
The governing board shall consider a motion to levy the increased property taxes by roll call vote.
Within three days after the hearing, the governing board shall mail a copy of the truth in taxation notice, a statement of its publication or mailing and the result of the governing board's vote under paragraph 4 of this subsection to the property tax oversight commission established by section 42-17002.
The governing board shall hold the truth in taxation hearing on or before the adoption of the school district budget under section 15-905.
Expenditures for adjacent ways and liabilities in excess of the school district budget do not become part of the school district's truth in taxation base limit.

C. The department of education shall maintain a listing of each school district's truth in taxation base limit and shall verify the accuracy of the school district's computations. A school district governing board shall notify the department of education of any change in the district's truth in taxation base limit.

D. The department of education shall develop a budget form for school districts to show the primary tax rate associated for each of the expenditure categories mentioned in subsection A, paragraph 1 of this section and for expenditures for adjacent ways pursuant to section 15-995 or any other expenditure in excess of the school district budget pursuant to section 15-907. A school district shall make this information available to the general public at truth in taxation hearings and shall submit the information to the department of education.

§ 15-906 Procedure for payment of levy fund liabilities payable on June 30; lapsing of levy funds with balance for reduction of taxes

A. Annually on or before June 30, each school district shall prepare for all levy funds a list of liabilities for goods received or services rendered on or before June 30 that will not be paid by June 30 of the current fiscal year.

B. Each school district having levy fund liabilities payable on June 30 shall file an advice of encumbrance with the county school superintendent on or before July 18, in the manner and on a form to be prescribed in the uniform system of financial records. The county school superintendent shall encumber amounts that are included in year-to-date expenditures not to exceed the budget and that are available to pay the liabilities pursuant to section 15-304.

C. The county school superintendent may draw warrants against the obligated in contract amounts pursuant to subsection B of this section for a period of sixty days immediately following the close of the fiscal year.

D. After expiration of the period of sixty days immediately following the close of each fiscal year, the remaining obligated in contract balance shall lapse and no further payments from the maintenance and operation, unrestricted capital outlay and adjacent ways funds shall be made on any claim for expenditures of the prior fiscal year.

E. School districts that are subject to section 15-914.01 shall adhere to the duties described in section 15-304 for the purposes of this section.

§ 15-907 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 pursuant to section 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, 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.

§ 15-908 Revenue control limit for school district after consolidation

A resulting school district after consolidation of a school district and unorganized territory or areas within another school district as provided in section 15-459, subsection C or section 15-460, subsection A shall compute its allowable revenue control limit for the first budget year as follows:

Divide the allowable revenue control limit for the budget year of the school district before consolidation by the student count for the school district for the budget year.
Multiply the quotient obtained in paragraph 1 of this section by the student count of the resulting school district for the budget year. The product is the revenue control limit of the resulting school district in the first budget year.
The student count used for unorganized territory is the student count of pupils who resided in the unorganized territory before consolidation.

§ 15-909 Financial provisions for accommodation schools; definition

A. An accommodation school shall compute a revenue control limit, a district support level and a district additional assistance allocation limit for each fiscal year of operation.

B. For the purpose of computing a revenue control limit, a district support level and a district additional assistance allocation limit, "accommodation school" has the same meaning prescribed in section 15-101.

C. State aid shall be apportioned as provided in section 15-973 to each county accommodation school.

§ 15-910 School district budgets; excess utility costs; desegregation costs; tuition costs for bond issues; costs for registering warrants; report

(Caution: 1998 Prop. 105 applies)

A. The governing board may budget for the district's excess utility costs that are specifically exempt from the district's revenue control limit. If approved by the qualified electors voting at a statewide general election, the exemption from the revenue control limit under this subsection expires at the end of the 2008-2009 budget year. The uniform system of financial records shall specify expenditure items allowable as excess utility costs, which are limited to direct operational costs of heating, cooling, water and electricity, telephone communications and sanitation fees. The department of education and the auditor general shall include in the maintenance and operation section of the budget format, as provided in section 15-903, a separate line for utility expenditures and a special excess utility cost category. The special excess utility cost category shall contain budgeted expenditures for excess utility costs, determined as follows:

Determine the lesser of the total budgeted or total actual utility expenditures for fiscal year 1984-1985.
Multiply the amount in paragraph 1 of this subsection by the total percentage increase or decrease in the revenue control limit and the capital outlay revenue limit for the budget year over the revenue control limit and the capital outlay revenue limit for fiscal year 1984-1985.
The sum of the amounts in paragraphs 1 and 2 of this subsection is the amount budgeted in the utility expenditure line.
Additional expenditures for utilities are budgeted in the excess utility cost category.

B. The governing board shall apply the same percentage increase or decrease allowed in the revenue control limit and the capital outlay revenue limit as provided in section 15-905, subsection E to the utility expenditure line of the budget.

C. The governing board may expend from the excess utility cost category only after it has expended for utility purposes the full amount budgeted in the utility expenditure line of the budget.

D. The governing board, after notice is given and a public meeting is held as provided in section 15-905, subsection D, may revise at any time before May 15 the amount budgeted in the excess utility cost category for the current year. Not later than May 18, the budget as revised shall be submitted electronically to the superintendent of public instruction.

E. If the revised excess utility cost category results in an expenditure of monies in excess of school district revenues for the current year, the county school superintendent shall include within the revenue estimate for the budget year monies necessary to meet the liabilities incurred by the school district in the current year in excess of revenues received for the current year.

F. If a school district receives a refund of utility expenditures or a rebate on energy saving devices or services, the refund or rebate shall be applied against utility expenditures for the current year as a reduction of the expenditures, except that the reduction of expenditures shall not exceed the amount of actual utility expenditures.

G. The governing board may budget for expenses of complying with or continuing to implement activities that were required or permitted by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination that are specifically exempt in whole or in part from the revenue control limit and district additional assistance. This exemption applies only to expenses incurred for activities that are begun before the termination of the court order or administrative agreement. If a district is levying a property tax on February 23, 2006 and using those monies to administer an English language learner program to remedy alleged or proven discrimination under title VI of the civil rights act of 1964 (42 United States Code section 2000d), the district may spend those monies to remedy a violation of the equal educational opportunities act of 1974 (20 United States Code section 1703(f)). Nothing in this subsection allows a school district to levy a property tax for violations of the equal educational opportunities act of 1974 (20 United States Code section 1703(f)) in the absence of an alleged or proven discrimination under title VI of the civil rights act of 1964 (42 United States Code section 2000d).

H. If a governing board chooses to budget monies outside of the revenue control limit as provided in subsection G of this section, the governing board may do one of the following:

Use monies from the maintenance and operation fund equal to any excess desegregation or compliance expenses beyond the revenue control limit before June 30 of the current year.
Notify the county school superintendent to include the cost of the excess expenses in the county school superintendent's estimate of the additional amount needed for the school district from the secondary property tax as provided in section 15-991.
Employ the provisions of both paragraphs 1 and 2 of this subsection, provided that the total amount transferred and included in the amount needed from property taxes does not exceed the total amount budgeted as prescribed in subsection J, paragraph 1 of this section.

I. If a governing board chooses to budget monies outside of district additional assistance as provided in subsection G of this section, the governing board may notify the county school superintendent to include the cost of the excess expenses in the county school superintendent's estimate of the additional amount needed for the school district from the secondary property tax as provided in section 15-991.

J. A governing board using subsections G, H and I of this section:

Shall prepare and employ a separate maintenance and operation desegregation budget and capital outlay desegregation budget on a form prescribed by the superintendent of public instruction in conjunction with the auditor general. The budget format shall be designed to allow a school district to plan and provide in detail for expenditures to be incurred solely as a result of compliance with or continuing to implement activities that were required or permitted by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination.
Shall prepare as a part of the annual financial report a detailed report of expenditures incurred solely as a result of compliance with or continuing to implement activities that were required or permitted by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination, in a format prescribed by the auditor general in conjunction with the Arizona department of education as provided by section 15-904.
On or before July 15 each year, shall collect and report data regarding activities related to a court order of desegregation or an administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination in a format prescribed by the Arizona department of education. The Arizona department of education shall compile and submit copies of the reports to the governor, the president of the senate, the speaker of the house of representatives and the chairpersons of the education committees of the senate and the house of representatives and shall submit a copy to the secretary of state. A school district that becomes subject to a new court order of desegregation or a party to an administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination shall submit these reports on or before July 15 or within ninety days of the date of the court order or administrative agreement, whichever occurs first. The Arizona department of education, in consultation with the auditor general, shall develop reporting requirements to ensure that school districts submit at least the following information and documentation to the Arizona department of education:

(a) A district-wide budget summary and a budget summary on a school-by-school basis for each school in the school district that lists the sources and uses of monies that are designated for desegregation purposes.

(b) A detailed list of desegregation activities on a district-wide basis and on a school-by-school basis for each school in the school district.

(c) The date that the school district was determined to be out of compliance with title VI of the civil rights act of 1964 (42 United States Code section 2000d) and the basis for that determination.

(d) The initial date that the school district began to levy property taxes to provide funding for desegregation expenses and any dates that these property tax levies were increased.

(e) If applicable, a current and accurate description of all magnet type programs that are in operation pursuant to the court order during the current school year on a district-wide basis and on a school-by-school basis. This information shall contain the eligibility and attendance criteria of each magnet type program, the capacity of each magnet type program, the ethnic composition goals of each magnet type program, the actual attending ethnic composition of each magnet type program and the specific activities offered in each magnet type program.

(f) The number of pupils who participate in desegregation activities on a district-wide basis and on a school-by-school basis for each school in the school district.

(g) A detailed summary of the academic achievement of pupils on a district-wide basis and on a school-by-school basis for each school in the school district.

(h) The number of employees, including teachers and administrative personnel, on a district-wide basis and on a school-by-school basis for each school in the school district that is necessary to conduct desegregation activities.

(i) The number of employees, including teachers and administrative personnel, on a district-wide basis and on a school-by-school basis for each school in the school district and the number of employees at school district administrative offices that are funded in whole or in part with desegregation monies received pursuant to this section.

(j) The amount of monies that is not derived through a primary or secondary property tax levy and that is budgeted and spent on desegregation activities on a district-wide basis and on a school-by-school basis for each school in the school district.

(k) Verification that the desegregation funding will supplement and not supplant funding for other academic and extracurricular activities.

(l) Verification that the desegregation funding is educationally justifiable.

(m) Any documentation that supports the proposition that the requested desegregation funding is intended to result in equal education opportunities for all pupils in the school district.

(n) Verification that the desegregation funding will be used to promote systemic and organizational changes within the school district.

(o) Verification that the desegregation funding will be used in accordance with the academic standards adopted by the state board of education pursuant to sections 15-701 and 15-701.01.

(p) Verification that the desegregation funding will be used to accomplish specific actions to remediate proven discrimination pursuant to title VI of the civil rights act of 1964 (42 United States Code section 2000d) as specified in the court order or administrative agreement.

(q) An evaluation by the school district of the effectiveness of the school district's desegregation measures.

(r) An estimate of when the school district will be in compliance with the court order or administrative agreement and a detailed account of the steps that the school district will take to achieve compliance.

(s) Any other information that the Arizona department of education deems necessary to carry out the purposes of this paragraph.

K. If a school district governing board budgets for expenses of complying with a court order of desegregation or an administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination, the governing board shall ensure that the desegregation expenses will:

Be educationally justifiable.
Result in equal education opportunities for all pupils in the school district.
Be used to promote systemic and organizational changes within the school district.
Be used in accordance with the academic standards adopted by the state board of education pursuant to sections 15-701 and 15-701.01.
Be used to accomplish specific actions to remediate proven discrimination pursuant to title VI of the civil rights act of 1964 (42 United States Code section 2000d) as specified in the court order or administrative agreement.
Be used in accordance with a plan submitted to the department of education that includes an estimate of the amount of monies that will be required to bring the school district into compliance with the court order or administrative agreement and an estimate of when the school district will be in compliance with the court order or administrative agreement.
Each fiscal year, not exceed the amount budgeted by the school district for desegregation expenses in fiscal year 2008-2009.

L. Subsections G through K of this section apply only if the governing board uses revenues from secondary property taxes rather than primary property taxes to fund expenses of complying with or continuing to implement activities that were required or allowed by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination that are specifically exempt in whole or in part from the revenue control limit and district additional assistance. Secondary property taxes levied pursuant to this subsection do not require voter approval, but shall be separately delineated on a property owner's property tax statement.

M. The governing board may budget for interest expenses it incurred for registering warrants drawn against a fund of the school district or net interest expense on tax anticipation notes as prescribed in section 35-465.05, subsection C for the fiscal year preceding the current year if the county treasurer pooled all school district monies for investment as provided in section 15-996 for the fiscal year preceding the current year and, in those school districts that receive state aid, the school districts applied for an apportionment of state aid before the date set for the apportionment as provided in section 15-973 for the fiscal year preceding the current year. The governing board may budget an amount for interest expenses for registering warrants or issuing tax anticipation notes equal to or less than the amount of the warrant interest expense or net interest expense on tax anticipation notes as prescribed in section 35-465.05, subsection C for the fiscal year preceding the current year as provided in this subsection that is specifically exempt from the revenue control limit. For the purposes of this subsection, "state aid" means state aid as determined in sections 15-971 and 15-972.

§ 15-910.01 School district budgets; career and technical education and vocational education center expenses

A. The governing board of a school district which has entered into an intergovernmental agreement or other written contract to establish a jointly owned and operated career and technical education and vocational education center as provided in section 15-789 may budget for vocational maintenance and operation expenses which are specifically exempt in whole or part from the revenue control limit for a period of not to exceed three years beginning the first year that the career and technical education and vocational education center is operating and serving students. The governing board shall notify the state board of education before adopting a budget as provided in this section for the first year of operation of the career and technical education and vocational education center to demonstrate that the center is ready to begin operations.

B. For each year that a school district is authorized to budget for a joint career and technical education and vocational education center as provided in this section, the district shall determine the budget amount as follows:

Estimate the average daily membership or adjusted average daily membership for the budget year of students to be enrolled in courses held at the joint career and technical education and vocational education center pursuant to section 15-901.
Multiply 0.142 by the base level and multiply this product by the average daily membership or adjusted average daily membership as determined in paragraph 1 of this subsection.

C. Before May 15, school districts which overestimate the average daily membership as provided in subsection B, paragraph 1 of this section shall adjust the general budget limit and expenditures based on the actual average daily membership during the current fiscal year. School districts which underestimate the average daily membership may adjust their budgets before May 15 based on the actual average daily membership during the current fiscal year. Procedures for completing adjustments shall be prescribed in the uniform system of financial records. Not later than May 18, the budget as revised shall be submitted electronically to the superintendent of public instruction.

D. A governing board which budgets for career and technical education and vocational education center expenses pursuant to this section shall:

Prepare and employ a separate maintenance and operation budget for the career and technical education and vocational education center on a form prescribed by the superintendent of public instruction in conjunction with the auditor general. The budget format shall be designed to allow a school district to plan and provide in detail for expenditures to be incurred solely for the maintenance and operation of the career and technical education and vocational education center.
Prepare as a part of the annual financial report a detailed report of expenditures incurred solely for the maintenance and operation of the career and technical education and vocational education center.

E. The part of the primary tax rate set to fund the vocational maintenance and operations expenses as provided in this section shall not be included in the computation of additional state aid for education as prescribed in section 15-972.

§ 15-910.02 Energy and water savings accounts

A. Each school district may establish an energy and water savings account that consists of a designated pool of capital investment monies to fund energy or water saving projects in school facilities. A school district may deposit in the account monies generated from the energy or water savings projects or measures implemented in school facilities. A school district may use monies in the energy and water savings account for payments under a performance contract entered into pursuant to section 15-213 or 15-213.01.

B. The auditor general and the department of education shall prescribe the appropriate designation of the energy and water savings accounts in the uniform system of financial records and shall prescribe reporting requirements on the appropriate budget forms and annual financial report forms.

C. Monies deposited in an energy and water savings account shall be used as a designated pool of capital investment monies to pay for the incremental cost of energy or water savings measures in school facilities that are owned by the school district. Any contract entered into pursuant to this section shall contain an agreement between the qualified provider and the energy or water services company that both parties have performed a reasonable investigation to determine that the measures contemplated by the contract will result in stated energy or water savings. Contract terms may extend up to 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.

D. Expenditures from an energy and water savings account shall be used only for the following:

Projects or measures pursuant to a contract pursuant to this section or section 15-213.01 that save energy or water in school facilities that are owned by the school district. Monies may be used pursuant to this paragraph to provide technical assistance regarding energy or water savings to school districts by a qualified provider or energy or water services company.
Payment of principal, interest, related financing costs and prepayment premiums.

E. School districts shall procure energy or water savings measures or services with monies distributed from the energy and water savings accounts.

F. Before the implementation of the energy or water savings measures or services, the qualified provider or energy or water services company shall compute, and the school district shall review and approve, the estimated amount of the energy or water savings and the associated impact on energy, water or other costs and revenue to be achieved by the school district on an annual and monthly basis over the term of the guaranteed energy cost savings contract and shall include these estimates in the contract. The qualified provider and the school district shall update the annual and monthly energy or water savings and associated cost impact estimates annually based on actual experience for the term of the guaranteed energy cost savings contract.

G. Before the implementation of the energy or water savings measures or services, the qualified provider or financial institution, trustee or paying agent and the school district shall jointly develop a schedule of monthly or another mutually agreed-on interval of payments for repayment of the capital investment monies. The repayment schedule shall result in lower energy, water or other costs or increased revenue, which shall include the total cost of all the installed energy or water savings measures for the school district 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 repayment schedule shall be included in the contract.

H. The school district shall transfer the amount of the payment prescribed pursuant to subsection G of this section to the energy and water savings account from the maintenance and operation portion of the school district's budget to repay any unpaid balance of the capital investment previously deposited in the energy and water savings account from the qualified provider or energy or water services company plus a reasonable carrying charge. For the period of time that the company's capital investment monies and reasonable carrying charge remain unpaid, the qualified provider or energy or water services company shall provide a separate billing or billing component to repay the capital investment pursuant to the repayment schedule prescribed pursuant to subsection G of this section, which shall be paid by the school district from the energy and water savings account. The school district's general budget limit shall be reduced by the amount of monies transferred to the energy and water savings account pursuant to this section.

I. After the balance of the qualified provider's or energy or water services company's capital investment monies deposited in the energy and water savings account plus a reasonable carrying charge are repaid in full by the school district, the school district may discontinue the deposit in the energy and water savings account of amounts that are prescribed in subsection G of this section.

J. Any monies associated with an energy or water savings project remaining in the energy and water savings account after the capital investment monies of the qualified provider or energy or water services company plus a reasonable carrying charge are repaid in full may be transferred to the maintenance and operation portion of the school district's budget, and the general budget limit may be increased by the amount transferred.

K. School districts may deposit energy-related rebate or grant monies in the energy and water savings account to assist in funding energy or water savings projects. These rebate or grant monies may be used to reduce the total cost of energy or water savings projects and to reduce the amount of capital investment monies received from and repaid to utility, energy or water services companies. School districts are not required to repay the rebate or grant monies in the manner described in subsection G of this section pursuant to the agreements with the providers of rebate or grant funds.

L. School districts shall not use or deposit any excess utilities monies budgeted pursuant to section 15-910 in the energy and water savings account.

M. School districts may deposit monies from other funding sources in the energy and water savings account to fund energy or water saving projects in school facilities. These monies shall be repaid in a manner consistent with this section and pursuant to the contract between the school district and the provider of the funding.

N. This section does not impose an obligation on any energy utility, water utility, public service corporation or agricultural improvement district to invest monies or contract with any school district.

§ 15-911 Aggregate expenditure limitation; aggregate expenditures of local revenues; adjustments

A. On or before June 1 of each year, the legislature shall transmit to the state board of education the aggregate expenditure limitation for all school districts for the following fiscal year that the economic estimates commission determines as provided in section 41-563, subsection C.

B. On or before November 1 of each year, the state board of education shall determine and report to the president of the senate, the speaker of the house of representatives, the chairman of the joint legislative budget committee and the governor's office of strategic planning and budgeting the aggregate expenditures of local revenues as defined in article IX, section 21, subsection (4), Constitution of Arizona, for all school districts for the current year.

C. If the aggregate expenditures of local revenues that the state board determines as provided in subsection B of this section exceed the expenditure limitation determined as provided in section 41-563, subsection C:

On or before November 1 the state board shall notify each school district that may be affected by subsections D and E of this section and inform it of the amount by which it may have to reduce its expenditures of local revenues.
On or before March 1 the legislature, on approval of two-thirds of the membership of each house of the legislature, may authorize the expenditures of local revenues in excess of the expenditure limitation for the current fiscal year.

D. The state board of education shall:

Determine the amount of the expenditures of local revenues that exceed the expenditure limitation.
Determine the amount of expenditures of local revenues for each school district and the total amount for all of the school districts.
Divide the amount determined in paragraph 1 of this subsection by the total amount determined in paragraph 2 of this subsection.
Multiply the quotient determined in paragraph 3 of this subsection by the amount determined in paragraph 2 of this subsection for each school district.

E. If the legislature fails to authorize the expenditures of local revenues that exceed the expenditure limitation as provided in subsection C, paragraph 2 of this section, on or before March 5 the state board of education shall inform each school district of the amount it is to reduce its expenditures of local revenues, and each school district shall reduce its expenditures of local revenues by the amount determined in subsection D, paragraph 4 of this section. On or before April 1, the governing board of each school district, after it gives notice and holds a public meeting in a similar manner as provided in section 15-905, subsections C and D, shall adopt a revised budget for the current year that does not exceed the previously adopted budget for the current year, minus the amount the state board of education specifies for reduction in expenditures of local revenues. Not later than April 4, the budget as revised shall be submitted electronically to the superintendent of public instruction.

§ 15-912 Consolidation assistance

A. A resulting school district after merger of school districts may budget for consolidation assistance as provided in subsection B of this section if the school districts which merge include any of the following:

A common school district and at least one other common school district or at least one unified school district.
A high school district and at least one other high school district or at least one unified school district.
A unified school district and at least one other unified school district or at least one high school district or at least one common school district.

B. The eligible school district may increase the revenue control limit and the district support level for the first year of operation by an amount determined as follows:

Through December 31, 2006, five per cent of the revenue control limit.
Beginning January 1, 2007, the amount of any transitional costs that are directly associated with routine formalities that are necessary as a result of consolidation such as changing of signs, letterhead, stationery and similar issues.

C. A school district which budgets for consolidation assistance pursuant to this section may not budget for unification assistance pursuant to section 15-912.01 during the one year period for which the consolidation assistance is in effect.

§ 15-912.01 Unification assistance

A. New unified school districts formed after a subdivision and unification as provided in section 15-458, subsection G or section 15-459, subsection B, paragraph 5 or new unified school districts formed from a common school district and a high school district pursuant to section 15-448 may budget for unification assistance as provided in subsection B of this section.

B. The eligible school district may increase the revenue control limit and the district support level for the first year of operation by an amount determined as follows:

Through December 31, 2006, five per cent of the revenue control limit.
Beginning January 1, 2007, the amount of any transitional costs that are directly associated with routine formalities that are necessary as a result of unification such as changing of signs, letterhead, stationery and similar issues.

C. A school district which budgets for unification assistance pursuant to this section may not budget for consolidation assistance pursuant to section 15-912 during the one year period for which the unification assistance is in effect.

§ 15-913 Education programs; juvenile detention centers; fund

A. Each county that operates a juvenile detention center shall offer an education program to serve all school-age children in its juvenile detention center. The county school superintendent and the presiding juvenile court judge in each county shall agree on the method of delivery of the juvenile detention center education program.

B. The state board of education shall prescribe standards and achievement testing requirements for county juvenile detention center education programs that attempt to ensure that the programs are compatible with public school education goals and requirements. The county school superintendent shall attempt to coordinate the program with each pupil's school district of residence to assist the pupil's transition back to the school district at the appropriate time.

C. A county may operate its juvenile detention center education program through an existing accommodation school.

D. If a county chooses not to operate its juvenile detention center education program through an existing accommodation school, the county school superintendent may establish a detention center education fund to provide financial support to the program. The detention center education fund for each program shall consist of a base amount plus a variable amount. For fiscal year 2019-2020, the base amount is $100,000 and the variable amount shall be determined pursuant to subsection E of this section. Beginning with fiscal year 2020-2021, the base amount is the amount for the prior year adjusted by the growth rate prescribed by law, subject to appropriation. The base amount and variable amount for each county or counties served shall be funded with state general fund monies, subject to appropriation. The county school superintendent must submit claims for payments to the superintendent of public instruction. The county school superintendent shall deposit the payments into the detention center education fund. Any excess monies in the detention center education fund shall be used to supplement classroom spending.

E. The variable amount shall be determined as follows:

Determine the number of days in the prior fiscal year that each child who had been in the detention center for more than forty-eight hours received an instructional program of at least two hundred forty minutes. A school district may not count a child as being in attendance in that school district on a day that the child is counted for the purposes of this paragraph.
Multiply the number of days determined under paragraph 1 of this subsection by the following amount:

(a) For fiscal year 2019-2020, $25.

(b) For fiscal year 2020-2021 and thereafter, the amount for the prior year adjusted by the growth rate prescribed by law, subject to appropriation.

For each child with a disability as defined in section 15-761 who had been in the detention center for more than forty-eight hours:

(a) Determine the amount prescribed in section 15-1204, subsection E, paragraph 1 or 2 and add $100 for capital outlay costs.

(b) Divide the sum determined under subdivision (a) of this paragraph by one hundred seventy-five.

(c) Subtract the amount prescribed in paragraph 2, subdivision (a) or (b) of this subsection from the quotient determined in subdivision (b) of this paragraph.

(d) Determine the number of days in the prior fiscal year that the child received an instructional program of at least two hundred forty minutes.

(e) Multiply the amount determined in subdivision (d) of this paragraph by the difference determined in subdivision (c) of this paragraph.

Add the amounts determined in paragraph 3 of this subsection for all children with disabilities.
Add the sum determined in paragraph 4 of this subsection to the product determined in paragraph 2 of this subsection. This sum is the variable amount.

F. If a county detention center education program serves more than one county, the county school superintendents and the presiding juvenile court judges of the counties being served shall agree on a county of jurisdiction. The county school superintendent shall deposit into the detention center education fund of the county of jurisdiction monies that are received from the superintendent of public instruction pursuant to this section for all counties served by the county of jurisdiction.

G. If a county operated a juvenile detention center education program through an accommodation school in the year before it begins to operate its juvenile detention center education program as provided in subsection D of this section, for the first year of operation as provided in subsection D of this section, the student count of the accommodation school shall be reduced by the student count attributable to the juvenile detention center education program.

§ 15-913.01 Education program; county jails

A. Each county that operates a county jail shall offer an education program to serve all prisoners who are twenty-one years of age or younger, who do not have a high school diploma or a general equivalency diploma and who are confined in the county jail. The county school superintendent and the sheriff in each county shall agree on the method of delivery of the education program.

B. The county school superintendent shall develop policies and procedures to transfer the educational records of any prisoner confined in a county jail who has been transferred from a juvenile detention center or from any other public agency that has provided educational services to that prisoner.

C. A county may operate its county jail education program through an accommodation school that provides alternative education services pursuant to section 15-308, except that each pupil enrolled in the accommodation school county jail education program shall be funded at an amount equal to seventy-two percent of the amount for that pupil if that pupil were enrolled in another accommodation school program.

D. If a county chooses not to operate its county jail education program through an accommodation school, the county school superintendent may establish a county jail education fund to provide financial support to the program. The county jail education fund for each program shall consist of a base amount plus a variable amount. For fiscal year 1999-2000, the base amount is $14,400 and the variable amount shall be determined pursuant to subsection E of this section. The base amount and variable amount for each county or counties served shall be funded with state general fund monies, subject to appropriation. The county school superintendent must submit claims for payments to the superintendent of public instruction. The county school superintendent shall deposit the payments in the respective county jail education fund.

E. The variable amount shall be determined as follows:

Determine the number of days in the prior fiscal year that each pupil who is a prisoner and who had been in the county jail for more than forty-eight hours received an instructional program of at least two hundred forty minutes. A school district may not count a pupil as being in attendance in that school district on a day that the pupil is counted as a prisoner for the purposes of this paragraph.
Multiply the number of days determined under paragraph 1 of this subsection by the following amount:

(a) For fiscal year 1999-2000, $10.80.

(b) For fiscal year 2000-2001 and each year thereafter, the amount for the prior year adjusted by any growth rate prescribed by law, subject to legislative appropriation.

For each pupil who is a child with a disability as defined in section 15-761, who is a prisoner and who had been in the county jail for more than forty-eight hours:

(a) Determine the amount prescribed in section 15-1204, subsection E, paragraph 1 or 2, multiply the amount by .72 and add $72 for capital outlay costs.

(b) Divide the sum determined under subdivision (a) of this paragraph by one hundred seventy-five.

(c) Subtract the amount prescribed in paragraph 2 of this subsection from the quotient determined in subdivision (b) of this paragraph.

(d) Determine the number of days in the prior fiscal year that the pupil received an instructional program of at least two hundred forty minutes.

(e) Multiply the amount determined in subdivision (d) of this paragraph by the difference determined in subdivision (c) of this paragraph.

Add the amounts determined in paragraph 3 of this subsection for all pupils with disabilities who are prisoners.
Add the sum determined in paragraph 4 of this subsection to the product determined in paragraph 2 of this subsection. This sum is the variable amount.

F. If a county jail education program serves more than one county, the county school superintendents and the sheriffs of the counties being served shall agree on a county of jurisdiction. The county school superintendent shall deposit in the county jail education fund of the county of jurisdiction monies that are received from the superintendent of public instruction pursuant to this section for all counties served by the county of jurisdiction.

G. If a county operated a county jail education program through an accommodation school in the year before it begins to operate its county jail education program as provided in subsection D of this section, for the first year of operation as provided in subsection D of this section, the student count of the accommodation school shall be reduced by the average daily membership attributable to the accommodation school's county jail education program in its last fiscal year of operation.

§ 15-914 Financial and compliance audits

A. The governing board of a school district that is required to comply with the single audit act amendments of 1996 (P.L. 104-156; 110 Stat. 1396; 31 United States Code sections 7501 through 7507) shall contract for at least annual financial and compliance audits of financial transactions and accounts subject to the single audit act amendments of 1996 and kept by or for the school district. The governing board of a school district that is not required to comply with the single audit act and that has adopted an expenditure budget of $2,000,000 or more for the maintenance and operation fund pursuant to section 15-905 shall contract for an annual financial statement audit. The governing board of a school district that is not required to comply with the single audit act and that has adopted an expenditure budget of less than $2,000,000 but more than $700,000 for the maintenance and operation fund pursuant to section 15-905 shall contract for a biennial financial statement audit. An independent certified public accountant shall conduct the audit in accordance with generally accepted governmental auditing standards. To the extent permitted by federal law, a school district that is required to participate in an annual audit pursuant to this subsection may convert to a biennial audit schedule if the previous annual audit did not contain any significant negative findings. If a biennial audit of a school district conducted pursuant to this subsection contains any significant negative findings, the school district shall convert back to an annual audit schedule. If a school district is required to convert back to an annual audit schedule pursuant to this subsection because of significant negative findings, the school district may subsequently convert to a biennial audit schedule if the previous two annual audits did not contain any significant negative findings. For the purposes of this subsection, "significant negative finding" means a finding that results in the issuance of a letter of noncompliance from the auditor general.

B. The governing board of a charter school that is required to comply with the single audit act amendments of 1996 shall contract for an annual financial and compliance audit of financial transactions and accounts subject to the single audit act amendments of 1996 and kept by or for the charter school.

C. A charter school that is not subject to the single audit act amendments of 1996 shall contract for at least an annual financial statement audit conducted in accordance with generally accepted governmental auditing standards. An independent certified public accountant shall conduct the audit.

D. For all audits referred to in subsections A, B and C of this section, the independent certified public accountant shall submit a uniform system of financial records compliance questionnaire to the auditor general with the applicable audit reports. The school district or charter school shall send a paper copy or electronic copy of the applicable audit reports to the county school superintendent of the county where the school district is located and the department of education. The department of education shall make the audit reports available on the department's website.

E. Contracts for all financial and compliance audits and financial statement audits and the completed audits shall be approved by the auditor general as provided in section 41-1279.21. Contracts for all financial and compliance audits and financial statement audits shall comply with the rules for competitive sealed proposals as prescribed by the state board of education in section 15-213.

F. If the school district or charter school will incur costs of financial and compliance audits for the budget year, the governing board of the school district or the governing body of the charter school may increase its base support level for the budget year by an amount equal to the amount expended for the district's or charter school's financial and compliance audits in the year before the current year, increased by the growth rate as prescribed by law, subject to appropriation. In determining the amount expended for the district's or charter school's financial and compliance audits, the school district or charter school shall include only the portion of the audit that must be paid from monies other than federal monies. The department of education and the auditor general shall prescribe a method for determining the increase in the base support level and shall include in the maintenance and operation section of the budget format, as provided in section 15-903, a separate line for financial and compliance audits expenditures.

G. Every audit contract shall include a systematic review of average daily membership, as defined in section 15-901, using methodology that is consistent with guidelines established by the auditor general. The auditor general shall consider cost when establishing guidelines pursuant to this subsection and, to the extent possible, shall attempt to minimize the cost of the review. The purpose of the review is to determine whether the average daily membership reported by the charter school or school district complies with the laws of this state and the uniform systems of financial records for charter schools and school districts.

H. A school district governing board or a charter school governing body shall publicly accept all audits and compliance questionnaires by roll call vote.

§ 15-914.01 Accounting responsibility; definition

A. School districts may apply to the state board of education to assume accounting responsibility.

B. A school district applying to the state board of education to assume accounting responsibility shall develop and file with the county school superintendent of the county in which the school district is located and the department of education an accounting responsibility plan and document in the plan:

Administrative and internal accounting controls designed to achieve compliance with the uniform system of financial records and the objectives of this section, including:

(a) Procedures for approving, preparing and signing vouchers and warrants.

(b) Procedures to ensure verification of administrators' and teachers' certification records with the department of education for all classroom and administrative personnel required to hold a certificate by the state board of education pursuant to section 15-203 before issuing warrants for their services.

(d) Procedures for reconciling the accounting records monthly to the county treasurer.

A compilation of resources required to implement accounting responsibility, including, at a minimum, personnel, training and equipment, and a comprehensive analysis of the budgetary implications of accounting responsibility for the school district and the county treasurer.

C. Before January 1 of the fiscal year preceding the fiscal year of implementation and before submitting an application to assume accounting responsibility, a school district shall apply for evaluation by the auditor general. On completion of the evaluation the auditor general may recommend approval or denial of accounting responsibility to the state board of education. The evaluation by the auditor general shall be performed contingent on staff availability and may be billed to the school district at cost. Evaluation at a minimum shall include the following:

The most recent financial statements audited by an independent certified public accountant.
The most recent report on internal control, report on compliance and uniform system of financial records compliance questionnaire prepared by an independent certified public accountant or procedural review completed by the auditor general.
The working papers of the independent certified public accountant responsible for auditing the school district, if deemed appropriate by the auditor general.
A procedural review if deemed appropriate by the auditor general.

D. Before January 1 of the fiscal year preceding the fiscal year of implementation and before submitting an application to assume accounting responsibility, a school district shall apply for evaluation by the county treasurer of the county in which the school district is located. On completion of the evaluation the county treasurer of the county in which the school district is located may recommend approval or denial of accounting responsibility to the state board of education. The evaluation by the county treasurer of the county in which the school district is located shall be performed contingent on staff availability and may be billed to the school district at cost. Evaluation by the county treasurer at a minimum shall include an analysis of the computer programming required for the county to manage the school districts funds.

E. School districts that are approved by the state board of education to assume accounting responsibility shall contract with an independent certified public accountant for an annual financial and compliance audit. The auditor general may reevaluate the school district annually based on the audit to determine compliance with the uniform system of financial records. If permitted by federal law, a school district may convert to a biennial audit schedule if the previous annual audit conducted pursuant to this subsection did not contain any significant negative findings. If a biennial audit of a school district conducted pursuant to this subsection contains any significant negative findings, the school district shall convert back to an annual audit schedule. If a school district is required to convert back to an annual audit schedule pursuant to this subsection because of significant negative findings, the school district may subsequently convert to a biennial audit schedule if the previous two annual audits did not contain any significant negative findings. For the purposes of this subsection, "significant negative finding" means a finding that results in the issuance of a letter of noncompliance from the auditor general.

F. On receipt of an accounting responsibility plan as prescribed in subsection B of this section, the county treasurer shall establish acceptable standards for interface by school districts with the county treasurer, including specifications for computer hardware and software compatibility and procedures to ensure the capacity of each school district to reconcile accounts with those of the county treasurer.

G. Any school district that fails to maintain accounting standards as provided by the uniform system of financial records and that is found to be in noncompliance with the uniform system of financial records by the state board of education as provided in section 15-272 is not eligible to participate in the program provided by this section.

H. Any school district that has assumed accounting responsibility pursuant to this section, that fails to maintain accounting standards as provided by the uniform system of financial records and that is found to be in noncompliance with the uniform system of financial records by the state board of education as provided in section 15-272 is no longer eligible to participate in the program provided by this section.

I. For the purposes of this section, "accounting responsibility" means authority for a school district to operate with full independence from the county school superintendent with respect to revenues and expenditures, including allocating revenues, monitoring vouchers, authorizing and issuing warrants and maintaining and verifying staff records for certification and payroll purposes.

§ 15-914.02 School district audit

A school district that is subject to audit pursuant to section 41-1279.03 shall comply with the reporting, follow-up and hearing participation requirements of that section.

§ 15-915 Correction of state aid or budget limit errors; definition

A. If the superintendent of public instruction determines that the calculation of state aid for a school district or charter school or the calculation of the school district's or charter school's budget limits within the previous three years did not conform with statutory requirements, the superintendent shall require correction of the errors as follows:

Corrections may be made in the current year or in the budget year, except that in case of hardship to the school district, the superintendent may approve corrections partly in one year and partly in the year after that year.
Errors in the calculation of state aid shall be corrected by increasing or decreasing the state aid to the school district or charter school in the year or years in which the correction is made.
Errors in the calculation of the school district's or charter school's budget limits shall be corrected at a public hearing by requiring the governing board to reduce or by allowing it to increase its budget by the amount of the correction to be made that year. Overbudgeting errors corrected as provided in this paragraph are exempt from section 15-905, subsections L and M. Not later than three days after the hearing and correction, the budget as revised shall be submitted electronically to the superintendent of public instruction. This paragraph does not require a decrease in state aid that is not otherwise required by paragraph 2 of this subsection.

B. Subject to the review by the joint legislative budget committee, the superintendent of public instruction shall adjust state aid for a school district in the current year if the governing board of a school district requests the recalculation of state aid for a prior year due to a change in assessed valuation that occurred as the result of any of the following:

A court judgment in accordance with section 42-16213.
A decision by a county board of equalization in accordance with section 42-16108.
A decision by the state board of equalization in accordance with section 42-16162.
The correction of a property tax error pursuant to title 42, chapter 16, article 6.

C. Notwithstanding subsection A of this section, a school district or charter school may not make upward revisions to its average daily membership counts for a particular school year after June 30 of the subsequent school year.

D. For the purposes of this section, "state aid":

For school districts, means state aid as determined in section 15-971 and additional state aid as determined in section 15-972.
For charter schools, means state aid as determined in section 15-185.

§ 15-916 Expenditure of state grant monies not included in budget

If the governing board of a school district receives a grant from this state for a specific program and did not include the grant in the district's budget, the governing board may, with the approval of the county school superintendent, authorize the expenditure of the grant monies in excess of the budget by action taken at a public meeting of the governing board. Within thirty days of the action, the governing board shall notify the department of education of the amount of the expenditures authorized. The amount which the district may expend in excess of the budget is equal to the amount of the grant monies which were not included in the budget for that fiscal year.

Article 1.1 Career Ladder and Other Performance Incentive Programs

§ 15-920 Performance pay; budget balance carryforward; definitions

A. Notwithstanding any other law, a school district that uses a performance pay component in its salary schedule may budget any budget balance in the maintenance and operation section of the budget that is attributable to performance pay and that is not earned in the current fiscal year for use in the budget year. The carryforward shall be used in the following year's performance pay component of the salary schedule. The amount budgeted pursuant to this subsection shall not be included in the allowable budget balance carryforward calculated pursuant to section 15-943.01. The amount budgeted pursuant to this subsection is specifically exempt from the revenue control limit.

B. For purposes of this section:

"Budget balance" means the difference between actual and budgeted expenditures for the performance pay component of the salary schedule.
"Performance pay component" means any portion of a school district's salary schedule, other than a career ladder program or an optional performance incentives program established pursuant to this article, that is based on factors directly related to a teacher's classroom performance.

§ 15-920.01 Arizona performance based compensation system task force; members; evaluation; reporting

A. The Arizona performance based compensation system task force is established within the state board of education. The task force shall consist of the following members appointed by the state board of education:

Three certificated teachers who are currently teaching in this state, one of whom provides academic instruction in grades one through eight, one of whom provides academic instruction in grades nine through twelve and one of whom teaches in a specialized area of instruction.
Three members who are certificated administrators or school district governing board members.
Two members of the general public who do not hold an active certificate issued by the state board of education and who are not employed by any school district in this state.
Four members of the general public who are employed in the private sector in capacities that involve or promote economic development.

B. By February 2006, and each year thereafter, the superintendent of public instruction shall submit the data provided by school districts pursuant to section 15-977, subsection F to the Arizona performance based compensation system task force, which shall conduct an evaluation of performance based compensation systems in accordance with subsection C of this section.

C. The Arizona performance based compensation system task force shall conduct annual evaluations of one quarter of the school districts' performance based compensation systems based on the data submitted to the task force by the superintendent of public instruction pursuant to subsection B of this section. The annual evaluation shall:

Assess the relationship between components of individual school district performance based compensation systems and the improvement in:

(a) Individual student progress and achievement.

(b) Achievement of school district and school site goals.

(d) Teacher job satisfaction.

(e) Parent rating of the quality of education at the school and district levels.

Provide a report to the school districts evaluated each year assessing the effectiveness of each school district's performance based compensation system, including any recommendations for improvement. The report shall be delivered to the members of the school district governing board for consideration in a public meeting.

D. The Arizona performance based compensation system task force shall annually submit a summary of its findings and conclusions to the speaker of the house of representatives and the president of the senate. A copy of the summary of findings and conclusions shall be provided to the chairperson of the house of representatives K-12 education committee, or its successor committee, and the chairperson of the senate K-12 education committee, or its successor committee.

E. On or before June 30, 2010, the Arizona performance based compensation system task force shall:

Provide recommendations to the state board of education on the implementation, operation and monitoring of performance based compensation systems and career ladder programs in the school districts of this state.
Develop written recommendations based on the elements prescribed in section 15-977, subsection C. These written recommendations shall be submitted to the governor, the speaker of the house of representatives, the president of the senate and the state board of education. The Arizona performance based compensation system task force shall provide copies of the written recommendations to the secretary of state and the director of the Arizona state library, archives and public records.

Article 2 Pupil Transportation

§ 15-921 Duties of superintendent of public instruction

A. The superintendent of public instruction shall supervise the provision of pupil transportation services.

B. The superintendent of public instruction shall evaluate the transportation program and routes for the purpose of evaluating accurate transportation support levels for the budget year.

C. For each fiscal year the superintendent of public instruction shall, on or before May 15, inform each school district of the daily route mileage which shall be used in the determination of the school district's transportation support level for the budget year.

D. The superintendent of public instruction shall be responsible for assembling the information provided by the school district and for determining the accuracy of such information.

§ 15-922 Reporting duties of the school district; definition

A. Each school district, within twelve days after the first one hundred days or two hundred days in session, as applicable, shall certify to the superintendent of public instruction, in an electronic format as prescribed by the department of education, the following:

The daily route mileage of the school district in the current year. The route mileage shall not include more than thirty miles each way to and from the school of attendance or to and from a pickup point on a regular transportation route to transport eligible students who reside in nonadjacent school districts.
The route mileage of the school district in the current year transporting eligible students for extended school year services in accordance with section 15-881.
The number of eligible students transported during the current year.

B. A school district shall meet the requirements of this section to receive state aid. The superintendent of public instruction may withhold a school district's apportionment of state aid if the superintendent of public instruction determines that the school district is not complying with the requirements of this section. A school district may include in the calculation of daily route mileage any vehicle that meets the definition of a school bus prescribed in this section or any motor vehicle described in section 15-925. The department of education shall not deny transportation funding or state aid for a school district that transports pupils in any vehicle that meets the definition of a school bus prescribed in this section or any motor vehicle described in section 15-925.

C. For the purposes of this article and section 15-901, "school bus" or "bus" means a school bus as defined in section 28-101, except that the passenger capacity standards prescribed in that section do not apply.

§ 15-923 Contracts for transportation; requirement; report

A. As an alternative to maintaining and operating a transportation program or in conjunction with a transportation program, a school district, if it is found to be economically advantageous, may contract for vehicles and other transportation services. Contracts may be with another political subdivision, a common or contract carrier or a private party.

B. In order to expediently process contracts for the provision of transportation, a school district may select a preapproved contract carrier or private party that meets both of the following criteria:

Provides one or more of the following:

(a) Electric school buses.

(b) Electric school bus charging infrastructure.

(d) Electric school bus services.

Has filed with and received approval from the school bus advisory council established by section 28-3053.

C. In addition to other powers and duties prescribed by title 11, chapter 2, article 4, any board of supervisors, at the request of any or all of the governing boards of the school districts within the county, may provide necessary student transportation. If the board of supervisors and the governing board or boards of such school districts mutually agree that such an arrangement is economically advantageous, the governing board of the school district is authorized to sell or lease its bus or buses to the board of supervisors for such purposes. Agreement between the parties shall be by written contract.

D. An eligible student who is transported part by contract and part by school district transportation facilities may not be counted as more than one eligible student.

E. Miles driven to transport eligible students may not be reported as daily route miles by more than one school district.

F. Each school district shall submit electronically to the department of education a report regarding the routes contracted, the contractor contract information, the number of eligible students transported by each contractor and any additional information requested by the department of education.

§ 15-924 In lieu of transportation grants

A. Notwithstanding any other law, beginning in the 2021-2022 school year, a school district may use a portion of its transportation funding allocated pursuant to sections 15-945 and 15-946 to provide in lieu of transportation grants to parents of students who attend the school district pursuant to a plan submitted to the department of education. School districts may issue grants to support individual parents or neighborhood carpools in transporting students to school. A school district's transportation funding allocation may not be reduced or otherwise diminished due to the school district awarding grants pursuant to this section.

B. Notwithstanding any other law, beginning in the 2021-2022 school year, a charter school may use a portion of its charter additional assistance funding allocated pursuant to section 15-185 to provide in lieu of transportation grants to parents of students who attend the charter school pursuant to a plan submitted to the department of education. Charter schools may issue grants to support individual parents or neighborhood carpools in transporting students to school. Participating charter schools shall report to the department regarding the monies awarded to parents as required by the department.

C. The department of education shall adopt policies and procedures to account for expenditures under this section and to require proof of attendance for students whose transportation is supported through grants under this section.

§ 15-925 School transportation; allowable vehicles

Notwithstanding any other law, a school district or charter school in this state or a privately owned and operated entity that is contracted for compensation with a school district or charter school in this state may use a motor vehicle that is designed to carry at least eleven and not more than fifteen passengers or a motor vehicle that is designed as a type A school bus or type B school bus as defined by the department of public safety to carry at least eleven and up to fifteen passengers to transport students to or from home or school on a regularly scheduled basis in accordance with the safety rules adopted by the department of public safety pursuant to sections 28-900 and 28-3228.

Article 3 School District Revenue Limitation for Maintenance and Operation

§ 15-941 Teacher experience index; computation; definition

A. The teacher experience index for each school district shall be computed as follows:

For the school district:

Number of FTE

years of

experience of

Number of years Number of FTE certified

of experience certified teachers teachers___

1 x ____ = ____

2 x ____ = ____

3 x ____ = ____

4 x ____ = ____

5 x ____ = ____

6 x ____ = ____

7 x ____ = ____

8 x ____ = ____

9 x ____ = ____

10 x ____ = ____

11 x ____ = ____

12 x ____ = ____

13 x ____ = ____

14 x ____ = ____

15 (or more) x ____ = ____

Total

A B

Divide total B by total A to determine the average number of FTE years of experience of FTE certified teachers in the school district.
For the state:

Number of FTE

years of

experience of

Number of years Number of FTE certified

of experience certified teachers teachers___

1 x ____ = ____

2 x ____ = ____

3 x ____ = ____

4 x ____ = ____

5 x ____ = ____

6 x ____ = ____

7 x ____ = ____

8 x ____ = ____

9 x ____ = ____

10 x ____ = ____

11 x ____ = ____

12 x ____ = ____

13 x ____ = ____

14 x ____ = ____

15 (or more) x ____ = ____

Total

C D

Divide total D by total C to determine the average number of FTE years of experience of FTE certified teachers in the state.
Subtract the quotient obtained in paragraph 4 from the quotient obtained in paragraph 2 and multiply the remainder by 0.0225.
Add 1.00 to the product obtained in paragraph 5.

B. Librarians, guidance counselors, curriculum coordinators and other personnel who do not conduct regularly scheduled classes shall not be included as certified teachers and shall be coded separately from certified teachers in the uniform system of financial records.

C. Each school district shall on or before October 15 submit to the superintendent of public instruction in electronic format the data prescribed in subsection A, paragraphs 1 and 2 of this section for the current year. The superintendent of public instruction shall use the data to compute the teacher experience index of each school district for the budget year.

D. The superintendent of public instruction on or before February 1 shall notify each school district of its preliminary teacher experience index for the budget year. Between February 1 and March 1, a school district may submit corrections to data that it submitted pursuant to subsection C of this section and the superintendent of public instruction on or before March 15 shall recompute the teacher experience index for all school districts for the budget year using the corrected data. The teacher experience index for the budget year shall not be recalculated after March 15 unless the superintendent of public instruction determines that the school district has submitted data resulting in an overstatement of the teacher experience index for the budget year.

E. For the purposes of this section, "number of years of experience" means the number of years of classroom instruction conducted by a certified teacher in the school district in which the certified teacher is currently employed, including the number of years of experience of the certified teacher granted by the school district for the certified teacher on the district's salary schedule for experience outside of the school district.

§ 15-943 Base support level

The base support level for each school district shall be computed as follows:

The following support level weights shall be used in paragraph 2, subdivision (a) of this section for the following school districts:

(a) For school districts whose student count in kindergarten programs and grades one through eight is classified in column 1 of this subdivision, the support level weight for kindergarten programs and grades one through eight is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate:

Column 1 Column 2 Column 3

Support Level Weight Support Level Weight

For Small Isolated For Small

Student Count School Districts School Districts

1-99 1.559 1.399

100-499 1.358 + [0.0005 x (500 1.278 + [0.0003 x (500

student count)] - student count)]

500-599 1.158 + [0.002 x (600 1.158 + [0.0012 x (600

student count)] - student count)]

(b) For school districts whose student count in grades nine through twelve is classified in column 1 of this subdivision, the support level weight for grades nine through twelve is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate:

Column 1 Column 2 Column 3

Support Level Weight Support Level Weight

For Small Isolated For Small

Student Count School Districts School Districts

1-99 1.669 1.559

100-499 1.468 + [0.0005 x (500 1.398 + [0.0004 x (500

student count)] – student count)]

500-599 1.268 + [0.002 x (600 1.268 + [0.0013 x (600

student count)] – student count)]

Subject to paragraph 1 of this section, determine the weighted student count as follows:

(a)

Support Weighted

Level Student Student

Grade Base Group A Weight Count Count

PSD 1.000 + 0.450 = 1.450 x =

K-8 1.000 + 0.158 = 1.158 x =

9-12 1.163 + 0.105 = 1.268 x =

Subtotal A

(b)

Support Weighted

Funding Level Student Student

Category Weight Count Count

HI 4.771 x =

K-3 0.060 x =

K-3 reading 0.040 x =

ELL 0.115 x =

MD-R, A-R and

SID-R 6.024 x =

MD-SC, A-SC and

SID-SC 5.988 x =

MD-SSI 7.947 x =

OI-R 3.158 x =

OI-SC 6.773 x =

P-SD 3.595 x = ________

DD, ED, MIID, SLD,

SLI and OHI 0.292 x =

ED-P 4.822 x =

MOID 4.421 x = ________

VI 4.806 x =

G 0.007 x =

FRPL 0.022 x = ________

Subtotal B

Multiply the total determined in paragraph 2 of this section by the base level.
Multiply the teacher experience index of the district or 1.00, whichever is greater, by the product obtained in paragraph 3 of this section.
For the purposes of this section, the student count is the average daily membership as prescribed in section 15-901 for the current year, except that for the purposes of computing the base support level used in determining school district rollover allocations and school district budget override amounts, the student count is the average daily membership as prescribed in section 15-901 for the prior year.

§ 15-943.01 Maintenance and operation budget balance; definition

A. The governing board of a school district may budget any budget balance in the maintenance and operation section of the budget, as provided in section 15-903, from the current fiscal year for use in the maintenance and operation section of the budget in the budget year. The amount that may be budgeted as the budget balance carryforward in any one fiscal year shall not include any budget balance attributable to any reduction in the district's general budget limit, including reductions for items that are exempt from the revenue control limit and for which expenditures are limited to a designated purpose such as monies levied pursuant to section 15-910, subsection G. The amount budgeted as the budget balance carryforward is specifically exempt from the revenue control limit.

B. If the actual amount of the allowable budget balance carryforward is less than the amount budgeted for the budget balance carryforward, the governing board shall adjust the general budget limit and expenditures before May 15 based on the actual allowable budget balance carryforward. If the actual amount of the allowable budget balance carryforward is more than the amount budgeted for the budget balance carryforward, the governing board may adjust its budget before May 15 based on the actual amount of the allowable fund balance carryforward. Not later than May 18, the budget as revised shall be submitted electronically to the superintendent of public instruction.

C. If the governing board is eligible to budget for a budget balance carryforward as provided in subsection A of this section, the governing board may transfer an amount from the district's ending cash balance of the maintenance and operations fund to the school opening fund. The school opening fund is a cash controlled fund as provided in section 15-905, subsection N, and may be spent only for the additional maintenance and operations expenses incurred in the first year of operation of a new school within the school district. The monies in the school opening fund are not subject to reversion, except that at the end of five years of no activity in the fund, any remaining monies revert to the maintenance and operations fund. Any monies so reverted may be considered additional budget balance for that fiscal year.

D. If a governing board transfers monies as provided in subsection C of this section, the amount so transferred in a fiscal year shall be subtracted from the amount the district would otherwise be eligible to budget for that fiscal year as provided in subsection A of this section. The difference, if any, is the maximum amount that may be budgeted for that fiscal year as a budget balance carryforward.

E. For the purposes of this section, "budget balance" means the difference between actual and budgeted expenditures.

§ 15-943.02 Base support level for career technical education districts

A. The base support level for each career technical education district shall be computed as follows:

Grade/ Support Student Weighted

Category Level Count Student

Weight Count

9-12 1.339 x ________ = ________

B. Multiply the total determined in subsection A of this section by the base level.

C. Multiply the teacher experience index of the district or 1.00, whichever is greater, by the product obtained in subsection B of this section.

D. For the purposes of this section, the student count is the average daily membership as prescribed in section 15-901 for the current year, except that for the purposes of computing the base support level used in determining school district rollover allocations, the student count is the average daily membership as prescribed in section 15-901 for the prior year.

§ 15-943.04 English learner classroom personnel bonus fund; payment of English language classroom personnel bonuses

The English learner classroom personnel bonus fund is established consisting of monies appropriated for this purpose. The department of education shall administer the fund. Monies in the fund are continuously appropriated. Applications from school districts and charter schools for monies from the fund shall be submitted by February 28 of each year. The department of education shall distribute monies in the fund to school districts and charter schools in equal amounts not to exceed two hundred fifty dollars for every English learner, as defined in section 15-751, who was instructed in an English learner program in the past academic year, who achieved English proficiency and who exited the English learner program. School districts and charter schools shall use the monies distributed pursuant to this section to pay bonuses directly to classroom personnel, excluding principals and administrators, who are involved in English learner programs. A school district or charter school shall not receive more than one distribution from the English learner classroom personnel bonus fund for the same pupil.

§ 15-944 Base revenue control limit

A. The base revenue control limit for each school district for fiscal year 1980-1981 is computed as follows:

Add the amounts in the fiscal year 1979-1980 budget effective May 15, 1980 for general operating and special education.
Subtract the following budgeted revenues from the sum obtained in paragraph 1 of this subsection:

(a) Tuition paid for attendance of nonresident pupils.

(b) State assistance as provided in section 15-976.

(d) Proceeds from the sale or lease of school property as provided in section 15-1102.

Add the increase in the base support level from fiscal year 1979-1980 to fiscal year 1980-1981 to the difference obtained in paragraph 2 of this subsection.

B. The equalization factor for each school district is computed as follows:

Divide the sum obtained in subsection A, paragraph 3 of this section by the base support level for fiscal year 1980-1981.
Subtract 1.0 from the quotient obtained in paragraph 1 of this subsection to obtain the equalization factor.

C. The revenue variation factor for each fiscal year is as follows:

For fiscal year 1981-1982, 0.80.
For fiscal year 1982-1983, 0.60.
For fiscal year 1983-1984, 0.40.
For fiscal year 1984-1985, 0.20.

D. The base revenue control limit for each school district during the five years in which the equalization plan is in operation is computed as follows:

Multiply the equalization factor by the revenue variation factor for the applicable year. Beginning with fiscal year 1983-1984 if the resulting product is less than negative 0.08, use negative 0.08 for computation purposes as provided in paragraph 2 of this subsection.
Multiply the product obtained in paragraph 1 of this subsection by the base support level for the applicable year.
Add the base support level for the applicable year to the product obtained in paragraph 2 of this subsection.

E. For fiscal year 1985-1986 and each fiscal year thereafter, the base revenue control limit equals the base support level for the same fiscal year.

§ 15-944.01 Additional expenditures exempt in whole or in part from revenue control limit

Beginning January 1, 1990, no school district is permitted to budget for items that are exempt either in whole or in part from the revenue control limit and that are funded by revenues generated by a levy of taxes on the taxable property in the school district, except that a school district may budget for those items that are exempt either in whole or in part from the revenue control limit as authorized by law before January 1, 1990.

§ 15-945 Transportation support level

A. The support level for to and from school for each school district for the current year shall be computed as follows:

Determine the approved daily route mileage of the school district for the fiscal year prior to the current year.
Multiply the figure obtained in paragraph 1 of this subsection by one hundred eighty, or for a school district that elects to provide two hundred days of instruction pursuant to section 15-902.04, multiply the figure obtained in paragraph 1 of this subsection by two hundred.
Determine the number of eligible students transported in the fiscal year prior to the current year.
Divide the amount determined in paragraph 1 of this subsection by the amount determined in paragraph 3 of this subsection to determine the approved daily route mileage per eligible student transported.
Determine the classification in column 1 of this paragraph for the quotient determined in paragraph 4 of this subsection. Multiply the product obtained in paragraph 2 of this subsection by the corresponding state support level for each route mile as provided in column 2 of this paragraph.

Column 1 Column 2

Approved Daily Route State Support Level per

Mileage per Eligible Route Mile for

Student Transported Fiscal Year 2025-2026

0.5 or less 3.01

More than 0.5 through 1.0 2.47

More than 1.0 3.01

Add the amount spent during the prior fiscal year for bus tokens and bus passes for students who qualify as eligible students as defined in section 15-901.

B. The support level for academic education, career and technical education, vocational education and athletic trips for each school district for the current year is computed as follows:

Determine the classification in column 1 of paragraph 2 of this subsection for the quotient determined in subsection A, paragraph 4 of this section.
Multiply the product obtained in subsection A, paragraph 5 of this section by the corresponding state support level for academic education, career and technical education, vocational education and athletic trips as provided in column 2, 3 or 4 of this paragraph, whichever is appropriate for the type of district.

Column 1 Column 2 Column 3 Column 4

Approved Daily Route

Mileage per Eligible District Type District Type District Type

Student Transported 02 or 03 04 05

0.5 or less 0.15 0.10 0.25

More than 0.5 through 1.0 0.15 0.10 0.25

More than 1.0 0.18 0.12 0.30

For the purposes of this paragraph, "district type 02" means a unified school district or an accommodation school that offers instruction in grades nine through twelve, "district type 03" means a common school district not within a high school district, "district type 04" means a common school district within a high school district or an accommodation school that does not offer instruction in grades nine through twelve and "district type 05" means a high school district.

C. The support level for extended school year services for pupils with disabilities is computed as follows:

Determine the sum of the following:

(a) The total number of miles driven by all buses of a school district while transporting eligible pupils with disabilities on scheduled routes from their residence to the school of attendance and from the school of attendance to their residence on routes for extended school year services in accordance with section 15-881.

(b) The total number of miles driven on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible pupil with a disability from the place of the pupil's residence to a school transportation pickup point or to the school facility of attendance and from the school transportation scheduled return point or from the school facility to the pupil's residence for extended school year services in accordance with section 15-881.

Multiply the sum determined in paragraph 1 of this subsection by the state support level for the district determined as provided in subsection A, paragraph 5 of this section.

D. The transportation support level for each school district for the current year is the sum of the support level for to and from school as determined in subsection A of this section, the support level for academic education, career and technical education, vocational education and athletic trips as determined in subsection B of this section and the support level for extended school year services for pupils with disabilities as determined in subsection C of this section.

E. The state support level for each approved route mile, as provided in subsection A, paragraph 5 of this section, shall be adjusted by the growth rate prescribed by law, subject to appropriation.

F. School districts must provide the odometer reading for each bus as of the end of the current year and the total bus mileage during the current year.

G. A school district may include route mileage and the number of riders to calculate funding pursuant to this section for transporting eligible students using motor vehicles described in section 15-925.

§ 15-946 Transportation revenue control limit

A. The transportation revenue control limit for each school district for the fiscal years 1985-1986, 1986-1987 and 1987-1988 is computed as follows:

Determine the adopted operational expenditure budget for pupil transportation for the fiscal year 1984-1985 effective January 1, 1985.
Determine the transportation revenue control limit for the school district for the fiscal year 1984-1985 as provided in this section before April 18, 1985.
If the school district's transportation revenue control limit for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection is equal to or greater than the amount determined in paragraph 1 of this subsection, the transportation revenue control limit for the fiscal year 1985-1986 is the change in the transportation support level from the fiscal year 1984-1985 to the fiscal year 1985-1986 plus the transportation revenue control limit for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection. For the fiscal years 1986-1987 and 1987-1988 the transportation revenue control limit is the transportation revenue control limit for the current year plus the change in the transportation support level for the current year to the budget year.
If the school district's transportation revenue control limit for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection is less than the amount determined in paragraph 1 of this subsection, the transportation revenue control limit for the fiscal year 1985-1986 is the sum of the following:

(a) The transportation revenue control limit for the school district for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection.

(b) The change in the transportation support level from the fiscal year 1984-1985 to the fiscal year 1985-1986.

(c) One-third of the amount obtained by subtracting the transportation revenue control limit for fiscal year 1984-1985 as provided in paragraph 2 of this subsection from the amount determined in paragraph 1 of this subsection.

If the transportation revenue control limit of the school district for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection is less than the amount determined in paragraph 1 of this subsection, the transportation revenue control limit for the fiscal years 1986-1987 and 1987-1988 is the sum of the following:

(a) The transportation revenue control limit for the current year.

(b) The change in the transportation support level from the current year to the budget year.

(c) One-third of the amount obtained by subtracting the transportation revenue control limit for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection from the amount determined in paragraph 1 of this subsection.

B. The transportation revenue control limit for each school district for the fiscal year 1988-1989 and each year thereafter shall be the transportation revenue control limit for the current year plus the increase in the transportation support level from the current year to the budget year, except that for fiscal year 2006-2007 and for each fiscal year thereafter, the transportation revenue control limit shall not increase if the transportation revenue control limit is more than one hundred twenty per cent of the transportation support level.

C. Notwithstanding subsection B of this section, if the transportation support level of a school district exceeds the transportation revenue control limit in any budget year, the transportation revenue control limit shall be adjusted in that budget year and every budget year thereafter to equal the transportation support level.

§ 15-947 Revenue control limit; district support level; general budget limit; unrestricted total capital budget limit; district additional assistance limit

A. The revenue control limit for a school district is equal to the sum of the base revenue control limit determined in section 15-944 and the transportation revenue control limit determined in section 15-946.

B. The district support level for a school district is equal to the sum of the base support level determined in section 15-943 and the transportation support level determined in section 15-945.

C. The general budget limit for each school district, for each fiscal year, is the sum of the following:

The maintenance and operations portion of the revenue control limit for the budget year.
The maintenance and operation portion of the following amounts:

(a) Amounts that are fully funded by revenues other than a levy of taxes on the taxable property within the school district, as listed below:

(i) Amounts budgeted as the budget balance carryforward as provided in section 15-943.01.

(ii) Tuition revenues for attendance of nonresident pupils.

(iii) State assistance as provided in section 15-976.

(iv) Special education revenues as provided in section 15-825, subsection D and section 15-1204.

(v) Title VIII of the elementary and secondary education act of 1965 assistance determined for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703 as provided in section 15-905, subsections K and O.

(vi) Title VIII of the elementary and secondary education act of 1965 administrative costs as provided in section 15-905, subsection P.

(vii) State assistance for excess tuition as provided in section 15-825.01.

(viii) Transportation revenues for attendance of nonresident pupils.

(b) Amounts approved pursuant to an override election as provided in section 15-481 for the applicable fiscal year.

(d) Expenditures for complying with a court order of desegregation as provided in section 15-910.

(e) Interest on registered warrants or tax anticipation notes as provided in section 15-910.

(f) Amounts budgeted for a jointly owned and operated career and technical education and vocational education center as provided in section 15-910.01.

The maintenance and operations portion of district additional assistance for the budget year.
Any other budget item that is budgeted in the maintenance and operation section of the budget and that is specifically exempt from the revenue control limit or district additional assistance.

D. The unrestricted capital budget limit, for each school district for each fiscal year, is the sum of the following:

The federal impact adjustment as determined in section 15-964 for the budget year.
Any other budget item that is budgeted in the capital outlay section of the budget and that is specifically exempt from district additional assistance.
The unrestricted capital portion of the amounts contained in subsection C of this section.
The unexpended budget balance in the unrestricted capital outlay fund from the previous fiscal year.
The net interest earned in the unrestricted capital outlay fund from the previous fiscal year.

§ 15-947.01 Revenue control limit; general budget limit; total capital budget limit for career technical education districts

A. The revenue control limit for a career technical education district is equal to the base support level determined in section 15-943.02.

B. The general budget limit for each career technical education district, for each fiscal year, is the sum of the following:

The revenue control limit for the budget year.
District additional assistance for the budget year.
Tuition revenues for attendance of nonresident pupils.
Title VIII of the elementary and secondary education act of 1965 assistance determined for children with disabilities, children with specific learning disabilities and children residing on Indian lands as provided in section 15-905, subsections K and O.
Expenditures for excess utility costs as provided in section 15-910.

C. The unrestricted capital budget limit for each career technical education district for the budget year is as provided in section 15-947, subsection D.

§ 15-949 Small school districts; exemption from general budget limit; budget revision

A. The governing board of a common school district with a student count in kindergarten programs and grades one through eight of one hundred twenty-five or less, the governing board of a high school district with a student count of one hundred or less or the governing board of a unified school district or the county school superintendent for an accommodation school with a student count of one hundred twenty-five or less in kindergarten programs and grades one through eight or with a student count of one hundred or less in grades nine through twelve shall compute a revenue control limit and a general budget limit, but the governing board or the county school superintendent may:

Adopt a budget in excess of the general budget limit without the necessity of an election under section 15-481, provided that for a unified school district or for an accommodation school the excess amount of expenditures shall be attributable to the student count in kindergarten programs and grades one through eight or to the student count in grades nine through twelve as provided in this subsection.
Revise its budget to include the costs for additional pupils who were not anticipated when the budget was adopted, if it receives permission as follows:

(a) If a governing board:

(i) The governing board shall send a petition to the county school superintendent requesting authority to revise its budget. The petition shall include a copy of the proposed budget.

(ii) The county school superintendent shall recommend the action to be taken on the petition and forward the recommendation and the petition to the board of supervisors.

(iii) The board of supervisors shall hold a hearing on the petition within twenty days after receipt of the petition and shall determine whether to allow the petition, allow the petition after revision or deny the petition.

(b) If a county school superintendent, the county school superintendent shall send the revised budget to the board of supervisors, and the board of supervisors shall hold a hearing on the recommendation within twenty days after receipt of the recommendation and shall determine whether to allow the revised budget, allow the revised budget after further revision or deny the revision.

B. If the board of supervisors revises or denies the petition or recommendation presented pursuant to subsection A, paragraph 2, subdivision (a), item (iii) or subdivision (b) of this section, the board shall state the reasons for revision or denial in writing.

C. School districts that in any year after fiscal year 1984-1985 but before fiscal year 1999-2000 have operated under the provisions of the small school adjustment as provided for in subsection A of this section and that have subsequently exceeded the student count limits expressed in subsection A of this section may continue in successive years to adopt a budget greater than the general budget limit without the necessity of an election under section 15-481, except that the amount greater than the general budget limit shall not exceed fifty thousand dollars. The amount that is adopted without the use of an election under section 15-481 and that is greater than the general budget limit is specifically exempt from the revenue control limit.

D. Notwithstanding subsection C of this section, school districts that exceeded the student count limits prescribed in subsection A of this section may adopt, in the first year that these limits are exceeded, a budget that exceeds the general budget limit without an election conducted pursuant to section 15-481 or pursuant to subsection E of this section, except that the amount that exceeds the general budget limit shall not exceed the amount authorized pursuant to subsection C of this section plus the limit prescribed in subsection E of this section. The amount that is adopted without an election and that exceeds the general budget limit is exempt from the revenue control limit.

E. School districts that in any year after fiscal year 1998-1999 have operated under the provisions of the small school adjustment as provided in subsection A of this section and that have subsequently exceeded the student count limits prescribed in subsection A of this section may continue in successive years to adopt a budget greater than the general budget limit subject to an election, except that the amount that is greater than the general budget limit shall not exceed the amount that is prescribed in this subsection. The amount that is adopted pursuant to this subsection is specifically exempt from the revenue control limit and shall be funded by a levy on secondary property taxes in the school district. The maximum amount that may be adopted pursuant to this subsection is computed as follows:

For a unified school district, separate the revenue control limit into elementary and secondary components based on the weighted student count as provided in section 15-971, subsection B, paragraph 2, subdivision (a). Use the elementary component of the revenue control limit for the purposes of paragraph 2 of this subsection and the secondary component of the revenue control limit for the purposes of paragraph 3 of this subsection.
For a common or unified district that used the provisions of subsection A of this section based on its elementary student count, the amount is determined as follows:

(a) Subtract one hundred twenty-five from the elementary student count.

(b) Multiply the difference in subdivision (a) of this paragraph by 0.45 percent.

(c) Subtract the product determined in subdivision (b) of this paragraph from thirty-five percent. If the result is zero or less than zero, the district is not eligible to use the provisions of this paragraph.

(d) Multiply the difference determined in subdivision (c) of this paragraph by the elementary revenue control limit.

For a high school or unified district that used the provisions of subsection A of this section based on its secondary student count, the amount is determined as follows:

(a) Subtract one hundred from the secondary student count.

(b) Multiply the difference in subdivision (a) of this paragraph by 0.65 percent.

(c) Subtract the product determined in subdivision (b) of this paragraph from sixty-five percent. If the result is zero or less than zero, the district is not eligible to use the provisions of this paragraph.

(d) Multiply the difference determined in subdivision (c) of this paragraph by the secondary revenue control limit.

For a unified school district that used the provisions of subsection A of this section for both its elementary and secondary pupils, combine the amounts determined in paragraphs 2 and 3 of this subsection.

F. For the purposes of subsection E of this section:

"Elementary" means kindergarten programs and grades one through eight.
"Secondary" means grades nine through twelve.

G. The part of the primary tax rate set to fund the small school district adjustment as provided in subsections D and E of this section shall not be included in the computation of additional state aid for education as prescribed in section 15-972.

H. The election required pursuant to subsection E of this section shall conform to the procedural requirements for calling the election, preparing the informational pamphlet and preparing the ballot as prescribed in section 15-481, subsections A, B, C and D. The maximum number of years that a budget override approved pursuant to subsection E of this section may be in effect is five years.

I. If the proposed budget override will be fully funded by a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget override, yes" and "budget override, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget override compared to the amount the school district budgeted in the preceding year and the amount the school district would be allowed to budget for if the measure is not approved by the voters. The statement shall also include the estimated amount of the override for each year the override is sought. The ballot shall also include the following statement:

The budget override authorized by this election allows the _______________ school district to levy property taxes in excess of the property tax levy allowed by law to fund the school district's revenue control limit. The property tax levy for the year for which adopted and for ____ subsequent years will be annually adjusted based on a formula that authorizes the _______________ school district to exceed the revenue control limit by up to thirty-five percent for kindergarten programs and grades one through eight or up to sixty-five percent for grades nine through twelve. The levy 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 an estimate of assessed valuation used for secondary property tax purposes, the proposed override in the ________________ school district's budget over that allowed by the revenue control limit would result in an estimated increase in the school district's tax rate of _________________ dollars per one hundred dollars of assessed valuation for the secondary property tax purposes.

J. If the proposed budget override 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 override, yes" and "budget override, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget override compared to the amount the school district budgeted in the preceding year and the amount the school district would be allowed to budget for if the measure is not approved by the voters. The statement shall also include the estimated amount of the override for each year the override is sought. The ballot shall also include the following statement:

Any budget override 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. For the purposes of subsections H and I of this section, levy of taxes on the taxable property does not include a levy of the government property lease or park property lease excise taxes assessed pursuant to title 42, chapter 6, article 5.

§ 15-950 Revenue control limits for new school districts

A resulting common, high or unified school district after consolidation of school districts as provided in section 15-459, subsection B, paragraph 2 or 3 or subsection C shall determine, in the first budget year, its allowable revenue control limit as follows:

Determine the allowable revenue control limit for the budget year for each of the school districts to be consolidated as it would have been in the absence of the consolidation.
Add the revenue control limits determined in paragraph 1 of this section. The sum is the revenue control limit of the resulting school district in the first year for which a budget is computed.

§ 15-953 Increases in the base level

If a school district receives approval to calculate its budget using an increase in the base level pursuant to any law for a given fiscal year, that increase in the base level applies only to the fiscal year for which approval was given. In order to calculate its budget using an increase in the base level for any subsequent fiscal year the school district must receive specific approval to do so as prescribed by law.

§ 15-954 Adjustment for tuition loss

A. The district may increase its base support level for tuition loss as prescribed in subsection B of this section if all of the following apply:

A school district receives tuition for high school pupils from a school district which is inside or outside of this state and which does not offer instruction in one or more high school grade levels.
The school district which had received the tuition loses the tuition because the other school district begins to offer instruction in one or more high school grade levels not previously offered.
The number of pupils for whom the district loses the tuition is equal to at least five per cent of the average daily membership of pupils educated by the district in grades nine through twelve for the year prior to the year in which the other school district begins to offer the instruction.

B. The maximum amount by which a district may increase its base support level for tuition loss is determined as follows:

Determine the amount of tuition lost between the year before the other school district begins to offer instruction, which is the base year, and the year after the base year.
For the year after the base year, the maximum amount is seventy-five per cent of the amount determined in paragraph 1.
For the second year after the base year, the maximum amount is fifty per cent of the amount determined in paragraph 1.
For the third year after the base year, the maximum amount is twenty-five per cent of the amount determined in paragraph 1.

C. If the resident school district is a joint unified district and phases in the instruction over more than one year:

The computation prescribed by subsection A, paragraph 3 of this section shall be made separately for each phase by dividing the number of pupils in the phase by the average daily membership of pupils in grades nine through twelve who are educated by the district of attendance in the year prior to the year in which the resident district begins to offer instruction for this phase.
The base year and the maximum amounts determined pursuant to subsection B of this section shall be computed separately for each phase.
The total increase in the base support level for a given fiscal year shall be the sum of the computations for each phase calculated pursuant to paragraph 2 of this subsection.

D. If the school district does not qualify for equalization assistance as provided in section 15-971, the part of the primary property tax rate set to fund the tuition loss as provided in this section shall not be included in the computation of additional state aid revenues as prescribed in section 15-972.

Article 4 Provisions for Capital Outlay and Capital Levy

§ 15-961 District additional assistance; growth rate

A. District additional assistance per student count is established as follows:

For school districts with a student count of less than one hundred for kindergarten programs and grades one through eight, $663.81. For school districts with a student count of one hundred or more and less than six hundred for kindergarten programs and grades one through eight, multiply $474.47 by the weight that corresponds to the student count for kindergarten programs and grades one through eight for the school district as provided in section 15-943, paragraph 1, subdivision (a), column 3. For a school district with a student count of six hundred or more in kindergarten programs and grades one through eight, the limit is $549.45.
For school districts with a student count of less than one hundred for grades nine through twelve, $732.87. For school districts with a student count of one hundred or more and less than six hundred for grades nine through twelve, multiply $494.39 by the weight that corresponds to the student count for grades nine through twelve for the school district as provided in section 15-943, paragraph 1, subdivision (b), column 3. For a school district with a student count of six hundred or more in grades nine through twelve, the limit is $600.86.
For programs for preschool children with disabilities, $549.45.

B. District additional assistance for a school district shall be computed as follows:

Select the applicable district additional assistance per student count for the school district.
Multiply the amount or amounts selected in paragraph 1 of this subsection by the appropriate student count of the school district.
If a school district's student count used for the budget year is greater than one hundred five percent of the student count used for the current year's budget, increase the adjusted district additional assistance determined in paragraph 2 of this subsection by fifty percent of the actual percentage increase in the school district's student count.

C. An amount for the purchase of required textbooks and related printed subject matter materials shall be used to increase the district additional assistance for a school district as determined in subsection B, paragraph 2 or 3 of this section, whichever is applicable. This amount shall equal the student count in grades nine through twelve multiplied by $84.93.

D. Notwithstanding subsections A, B and C of this section, district additional assistance for a common school district that is not within a high school district or for a transporting school district is district additional assistance as prescribed in this section but excluding pupils who are admitted to another school district as provided in section 15-824, subsection A, paragraph 2 or 3, except that if the school district transports high school pupils, the district additional assistance amount prescribed in this section shall be increased by an amount equal to fifty percent of the district additional assistance per pupil amount prescribed for the school district pursuant to this section multiplied by the number of high school pupils transported.

§ 15-962.01 District additional assistance allocation for career technical education districts

The district additional assistance for a career technical education district shall be the amount for students in grades nine through twelve for districts with a student count of six hundred or more as prescribed in section 15-961.

§ 15-963 Capital transportation adjustment for small school districts

A. A school district may apply to the state board of education for a capital transportation adjustment for the purchase of a transportation vehicle if the district meets all of the following requirements:

Has a student count of fewer than six hundred in kindergarten programs and grades one through twelve.
Transports as eligible students at least one-third of the total student count of the school district.
Has an approved daily route mileage per eligible student transported of more than 1.0, computed as prescribed in section 15-945, subsection A, paragraph 4.

B. If a school district receives a capital transportation adjustment as provided in this section, district additional assistance for that district shall be equal to district additional assistance determined as prescribed in section 15-961 plus any additional amount approved by the state board of education.

C. The state board of education may grant a capital transportation adjustment to a school district which meets the qualifications prescribed in subsection A of this section, except that the total amount of all additional amounts approved as capital transportation adjustments for all school districts for a fiscal year shall not exceed twenty per cent of the total amount which a county may budget for that fiscal year in all small district service program funds as provided in section 15-365, subsection F.

§ 15-964 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:

Twenty-five percent of the monies received from forest reserve funds by the school district in the prior fiscal year as provided in section 41-736.
For a school district that is not an accommodation school, the lesser of:

(a) Twenty-five 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 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.

§ 15-965 Schools; impact aid; teacher housing

Notwithstanding any other law, a school district that receives federal impact aid may use those monies for maintenance and renovation of teacher housing and may transfer those monies into the teacherage account.

Article 5 State and Local Assistance to School Districts and Accommodation Schools

§ 15-971 Determination of equalization assistance payments from county and state funds for school districts

A. Equalization assistance for education is computed by determining the total of the following:

The lesser of a school district's revenue control limit or district support level as determined in section 15-947.
District additional assistance of a school district as determined in section 15-961.

B. From the total of the amounts determined in subsection A of this section subtract:

The amount that would be produced by levying the applicable qualifying tax rate determined pursuant to section 41-1276 for a high school district or a common school district within a high school district that does not offer instruction in high school subjects as provided in section 15-447.
The amount that would be produced by levying the applicable qualifying tax rate determined pursuant to section 41-1276 for a unified school district, 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. The qualifying tax rate shall be applied in the following manner:

(a) For the purposes of the amount determined in subsection A, paragraph 1 of this section:

(i) Determine separately the percentage that the weighted student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and the weighted student count in grades nine through twelve is to the weighted student count determined in subtotal A as provided in section 15-943, paragraph 2, subdivision (a).

(ii) Apply the percentages determined in item (i) of this subdivision to the amount determined in subsection A, paragraph 1 of this section.

(b) For the purposes of the amounts determined in subsection A, paragraph 2 of this section, determine separately the amount of the district additional assistance attributable to the student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and grades nine through twelve.

(c) From the amounts determined in subdivisions (a) and (b) of this paragraph, subtract the levy that would be produced by the current qualifying tax rate for a high school district or a common school district within a high school district that does not offer instruction in high school subjects as provided in section 15-447. If the qualifying tax rate generates a levy that is in excess of the total determined in subsection A of this section, the school district is not eligible for equalization assistance. For the purposes of this subsection, "assessed valuation" includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8 and the assessed value of all property subject to the government property lease excise tax pursuant to title 42, chapter 6, article 5.

The amount that would be produced by levying a qualifying tax rate in a career technical education district, which shall be $.05 per $100 assessed valuation unless the legislature sets a lower rate by law.

C. State aid for equalization assistance for education for a school district shall be the equalization assistance for education for a school district as provided in subsections A and B of this section.

D. Equalization assistance for education shall be paid from appropriations for that purpose to the school districts as provided in section 15-973.

E. A school district shall report expenditures on approved career and technical education and vocational education programs in the annual financial report according to uniform guidelines prescribed by the uniform system of financial records and in order to facilitate compliance with sections 15-255 and 15-904.

F. The additional weight for state aid purposes given to special education as provided in section 15-943 shall be given to school districts only if special education programs comply with chapter 7, article 4 of this title and the conditions and standards prescribed by the superintendent of public instruction pursuant to rules of the state board of education for pupil identification and placement pursuant to sections 15-766 and 15-767.

G. In addition to state general fund appropriations, all amounts received pursuant to section 37-521, subsection B, paragraph 3, section 42-5029, subsection E, paragraph 5 and section 42-5029.02, subsection A, paragraph 5 and from any other source for the purposes of this section are appropriated for state aid to schools as provided in this section.

H. The total amount of state monies that may be spent in any fiscal year for state equalization assistance shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

§ 15-972 State limitation on homeowner property taxes; additional state aid to school districts; definitions

A. Notwithstanding section 15-971, there shall be additional state aid for education computed for school districts as provided in subsection B of this section.

B. The clerk of the board of supervisors shall compute such additional state aid for education as follows:

For a high school district or for a common school district within a high school district that does not offer instruction in high school subjects as provided in section 15-447:

(a) Determine the qualifying tax rate pursuant to section 41-1276 for the school district.

(b) Determine the following percentage of the qualifying tax rate determined in subdivision (a) of this paragraph:

(i) 47.19 percent through December 31, 2021.

(ii) Fifty percent beginning from and after December 31, 2021.

(c) Select the lesser of the amount determined in subdivision (b) of this paragraph or fifty percent of the primary property tax rate that would be levied in lieu of this section for the district.

(d) Multiply the rate selected in subdivision (c) of this paragraph as a rate per $100 assessed valuation by the assessed valuation used for primary property taxes of the residential property in the school district.

For a unified school district, for a common school district not within a high school district or for a common school district that offers instruction in high school subjects as provided in section 15-447:

(a) Determine the qualifying tax rate pursuant to section 41-1276 for the school district.

(b) Determine the following percentage of the qualifying tax rate determined in subdivision (a) of this paragraph:

(i) 47.19 percent through December 31, 2021.

(ii) Fifty percent beginning from and after December 31, 2021.

(c) Select the lesser of the amount determined in subdivision (b) of this paragraph or fifty percent of the primary property tax rate that would be levied in lieu of this section for the district.

C. The clerk of the board of supervisors shall report to the department of revenue not later than the Friday following the third Monday in August of each year the amount by school district of additional state aid for education and the data used for computing the amount as provided in subsection B of this section. The department of revenue shall verify all of the amounts and report to the county board of supervisors not later than August 30 of each year the property tax rate or rates that shall be used for property tax reduction as provided in subsection E of this section.

D. The board of supervisors shall reduce the property tax rate or rates that would be levied in lieu of this section by the school district or districts on the assessed valuation used for primary property taxes of the residential property in the school district or districts by the rate or rates selected in subsection B, paragraph 1, subdivision (c) and paragraph 2, subdivision (c) of this section. The excess of the reduction in property taxes for a parcel of property resulting from the reduction in the property tax rate pursuant to this subsection over the amounts listed in this subsection shall be deducted from the amount of additional state aid for education. The reduction in property taxes on a parcel of property resulting from the reduction in the property tax rate pursuant to this subsection shall not exceed $600, except as provided in subsection I of this section.

E. Before levying taxes for school purposes, the board of supervisors shall determine whether the total primary property taxes to be levied for all taxing jurisdictions on each parcel of residential property, in lieu of this subsection, violate article IX, section 18, Constitution of Arizona. For those properties that qualify for property tax exemptions pursuant to article IX, section 2, Constitution of Arizona, eligibility for the credit is determined on the basis of the limited property value that corresponds to the taxable assessed value after reduction for the applicable exemption. If the board of supervisors determines that such a situation exists, the board shall apply a credit against the primary property taxes due from each such parcel in the amount in excess of article IX, section 18, Constitution of Arizona. Such excess amounts shall also be additional state aid for education for the school district or districts in which the parcel of property is located.

F. The clerk of the board of supervisors shall report to the department of revenue not later than September 5 of each year the amount by school district of additional state aid for education and the data used for computing the amount as provided in subsection B of this section. The department of revenue shall verify all of the amounts and report to the board of supervisors not later than September 10 of each year the property tax rate that shall be used for property tax reduction as provided in subsection E of this section.

G. The clerk of the board of supervisors shall report to the department of revenue not later than September 30 of each year in writing the following:

The data processing specifications used in the calculations provided for in subsections B and E of this section.
At a minimum, copies of two actual tax bills for residential property for each distinct tax area.

H. The department of revenue shall report to the state board of education not later than October 12 of each year the amount by school district of additional state aid for education as provided in this section. The additional state aid for education provided in this section shall be apportioned as provided in section 15-973.

I. If a parcel of property is owned by a cooperative apartment corporation or is owned by the tenants of a cooperative apartment corporation as tenants in common, the reduction in the property taxes prescribed in subsection D of this section shall not exceed the amounts listed in subsection D of this section for each owner-occupied housing unit on the property. The assessed value used for determining the reduction in taxes for the property is equal to the total assessed value of the property times the ratio of the number of owner-occupied housing units to the total number of housing units on the property. For the purposes of this subsection, "cooperative apartment corporation" means a corporation:

Having only one class of outstanding stock.
Of which all of the stockholders are entitled, solely by reason of their ownership of stock in the corporation, to occupy for dwelling purposes apartments in a building owned or leased by the corporation and that are not entitled, either conditionally or unconditionally, except on a complete or partial liquidation of the corporation, to receive any distribution not out of earnings and profits of the corporation.
Of which eighty percent or more of the gross income is derived from tenant-stockholders. For the purposes of this paragraph, "gross income" means gross income as defined by the United States internal revenue code, as defined in section 43-105.

J. The total amount of state monies that may be spent in any fiscal year for state aid for education in this section shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

K. Notwithstanding subsection E of this section, the maximum amount of additional state aid for education that will be funded by this state pursuant to subsection E of this section shall be $1,000,000 per county. For any county with a school district or districts that collectively would otherwise receive more than $1,000,000 in additional state aid for education pursuant to subsection E of this section, the property tax oversight commission established by section 42-17002 shall determine the proportion of the violation of article IX, section 18, Constitution of Arizona, that is attributable to each taxing jurisdiction within the affected school district or districts. Based on those proportions, the property tax oversight commission shall determine an amount that each taxing jurisdiction within the affected school district or districts shall transfer to the affected school district or districts during the fiscal year in order to compensate the affected school district or districts for its pro rata share of the reduction in additional state aid for education funding required by this subsection. In determining the proportion of the violation of article IX, section 18, Constitution of Arizona, that is attributable to each taxing jurisdiction within the affected school district or districts, the property tax oversight commission shall assume a proportion of zero for any taxing jurisdiction that has a tax rate for the fiscal year that is equal to or less than the tax rate of peer jurisdictions, as determined by the property tax oversight commission.

L. For the purposes of this section:

"Owner" includes any purchaser under a contract of sale or under a deed of trust.
"Residential property" includes owner-occupied real property and improvements to the property and owner-occupied mobile homes that are the owner's primary residence and classified as class three property pursuant to section 42-12003.

§ 15-973 Apportionment of funds; expenditure limitation

A. The state board of education shall apportion state aid from appropriations made for that purpose to the several counties on the basis of state aid entitlement for the school districts in each county. An allowance shall not be made for nonresident alien children or for wards of the United States for whom tuition is paid, but attendance of a student in a school of a county adjoining the county of the student's residence outside the state under a certificate of educational convenience as provided by section 15-825 shall be deemed to be enrollment in the school of the county or school district of the student's residence.

B. Apportionments shall be made as follows:

By the close of business on the fifteenth day of business of July, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of August, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of September, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of October, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of November, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of December, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of January, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of February, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of March, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of April, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of May, one-twelfth of the total amount to be apportioned during the fiscal year.
By the close of business on the fifteenth day of business of June, one-twelfth of the total amount to be apportioned during the fiscal year.

The superintendent of public instruction shall furnish to the county treasurer and the county school superintendent an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the county treasurer of each county for the amount apportioned. On receipt of the warrant, the county treasurer shall notify the county school superintendent of the amount, together with any other monies standing to the credit of that school district, in the county school fund.

C. Notwithstanding subsection B of this section, if sufficient appropriated monies are available and on a showing by a school district that additional state monies are necessary for current expenses, an apportionment or part of an apportionment of state aid may be paid to the school district before the date set for that apportionment by subsection B of this section. A school district may not receive more than three-fourths of its total apportionment before May 1 of the fiscal year. Early payments pursuant to this subsection must be approved by the state treasurer, the director of the department of administration and the superintendent of public instruction.

D. The superintendent of public instruction shall not make application to the federal government to utilize title VIII of the elementary and secondary education act of 1965 monies in determining the apportionment prescribed in this section.

E. If a school district that is eligible to receive monies pursuant to this article is unable to meet a scheduled payment on any lawfully incurred long-term obligation for debt service as provided in section 15-1022, the county treasurer shall use any amount distributed pursuant to this section to make the payment. The county treasurer shall keep a record of all the instances in which a payment is made pursuant to this subsection. Any monies subsequently collected by the district to make the scheduled payment shall be used to replace the amount diverted pursuant to this subsection. When determining the total amount to be funded by a levy of secondary taxes on property within the school district for the following fiscal year, the county board of supervisors shall add to the amounts budgeted to be expended during the following fiscal year an amount equal to the total of all payments pursuant to this subsection during the current fiscal year that were not repaid during the current year.

F. The total amount of state monies that may be spent in any fiscal year by the state board of education for apportionment of state aid for education shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

G. The department of education may require local education agencies to submit the student level data necessary to determine the apportionment of state aid pursuant to this section on or before July 1 and on or before the first day of each month thereafter.

§ 15-973.01 Assistance for education fund

A. The assistance for education fund is established consisting of monies received pursuant to section 43-617.

B. The state board of education shall administer the fund. On notice from the state board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313 and monies earned from investments shall be credited to the fund. Monies in the fund:

Are continuously appropriated to the state board of education.
Are exempt from the provisions of section 35-190, relating to lapsing of appropriations.

C. The state board of education shall distribute monies in the fund to the department of education to fund solutions teams assigned to schools pursuant to section 15-241.02.

§ 15-974 Equalization assistance for education for accommodation schools

A. Equalization assistance for education for accommodation schools shall be paid from appropriations for that purpose to the school districts as provided in section 15-973.

B. When an accommodation school has a positive total cash balance at the end of a fiscal year in its maintenance and operation fund, the county school superintendent of the county in which the accommodation school is located may authorize an addition to the accommodation school's revenue control limit as provided in section 15-947, subsection A for the following fiscal year. The county school superintendent may not authorize an addition that exceeds the lesser of the ending cash balance minus the amount budgeted for the budget balance carryforward as provided in section 15-943.01 or ten percent of the revenue control limit of the accommodation school and five percent of the revenue control limit pursuant to section 15-482, without the necessity of an election pursuant to section 15-481. If an accommodation school has a cash balance in excess of the amount needed to fund the budget balance carryforward and the addition authorized pursuant to this subsection for the following fiscal year, the remaining cash balance may be used for capital expenditures.

C. Subsection B of this section does not apply to an accommodation school with a student count of one hundred twenty-five or less in kindergarten programs and grades one through eight or to an accommodation school that offers instruction in grade nine, ten, eleven or twelve and that has a student count of one hundred or less in grades nine through twelve.

§ 15-975 Method of determining funds payable to a joint common school district

In determining the amount of state, county and federal monies or school aid payable to a joint common school district, the portion of the territory of the joint common school district within each county shall be regarded as a separate school district lying within such county. Records of student count shall be kept as to make readily ascertainable the attendance of pupils residing in the portion of the school district in each county. The forms and reports required by law to be filed shall be appropriately filed. Student enrollment and attendance information required by this subsection shall be submitted electronically to the superintendent of public instruction in a format provided. For purposes of applying to a joint common school district the provisions of section 15-101, "assessed valuation" means the net valuation of the part of the school district in the county, and the part of the school district in each county shall be regarded as a school district employing five or more contract classroom teachers.

§ 15-976 Assistance for school districts for children whose parents are employed by certain state institutions; expenditure limitation

A. The superintendent of public instruction shall assist school districts in educating children whose parents or legal guardians are employed by and domiciled at the following state institutions and stations: the state hospital, the Arizona state schools for the deaf and the blind, intellectual disability centers, port of entry inspection stations and institutions and facilities maintained by the state department of corrections. The school enrollment is deemed for the purpose of determining student count to be enrollment in the school district of actual attendance. The assistance shall be by payment of tuition as follows:

For group B children with disabilities, as provided in section 15-825, subsection D.
For children other than group B children with disabilities, the costs per student count as prescribed in section 15-824, subsection G minus the amount generated by the equalization base as determined in section 15-971, subsection A for those pupils, except that the tuition for any pupil shall not exceed an amount equal to seven thousand dollars minus the amount generated by the equalization base as determined in section 15-971, subsection A.

B. Claims for such payments shall be made by the school districts through the county school superintendent to the superintendent of public instruction.

C. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction pursuant to subsection A of this section shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

§ 15-977 Classroom site fund; definitions

A. The classroom site fund is established consisting of monies transferred to the fund pursuant to section 37-521, subsection B, section 42-5029, subsection E, paragraph 10 and section 42-5029.02, subsection A. The department of education shall administer the fund. School districts and charter schools may not supplant existing school site funding with revenues from the fund. All monies distributed from the fund are intended for use at the school site. Teacher compensation distributed pursuant to this section shall supplement, and not supplant, teacher compensation monies from any other sources. The school district or charter school shall notify each school principal of the amount available to the school by April 15 of each year. The district or charter school shall request from the school's principal each school's priority for the allocation of the funds available to the school for each program listed under subsection H of this section. The amount budgeted by the school district or charter school pursuant to this section shall not be included in the allowable budget balance carryforward calculated pursuant to section 15-943.01.

B. A school district governing board must adopt a performance based compensation system at a public hearing to allocate funding from the classroom site fund pursuant to subsection A of this section. Individual teacher performance shall be a component of allocation for teacher compensation.

C. A school district governing board shall vote on a performance based compensation system that includes the following elements:

School district performance and school performance.
Individual teacher performance.
Measures of academic progress toward the academic standards adopted by the state board of education.
Other measures of academic progress.
Dropout or graduation rates.
Attendance rates.
Ratings of school quality by parents.
Ratings of school quality by students.
The input of teachers and administrators.
Approval of the performance based compensation system based on an affirmative vote of at least seventy percent of the teachers eligible to participate in the performance based compensation system.
An appeals process for teachers who have been denied performance based compensation.
Regular evaluation for effectiveness.

D. A performance based compensation system shall include teacher professional development programs that are aligned with the elements of the performance based compensation system.

E. A school district governing board may modify the elements contained in subsection C of this section and consider additional elements when adopting a performance based compensation system. A school district governing board shall adopt any modifications or additional elements and specify the criteria used at a public hearing.

F. Until December 31, 2009, each school district shall develop an assessment plan for its performance based compensation system and submit the plan to the department of education by December 31 of each year. A copy of the performance based compensation system and assessment plan adopted by the school district governing board shall be included in the report submitted to the department of education.

G. Monies in the fund are continuously appropriated, are exempt from the provisions of section 35-190 relating to lapsing of appropriations and shall be distributed as follows:

By March 30 of each year, the staff of the joint legislative budget committee shall determine a per pupil amount from the fund for the budget year using the estimated statewide weighted count for the current year pursuant to section 15-943, paragraph 2, subdivision (a) and based on estimated available resources in the classroom site fund for the budget year adjusted for any prior year carryforward or shortfall.
The allocation to each charter school and school district for a fiscal year shall equal the per pupil amount established in paragraph 1 of this subsection for the fiscal year multiplied by the weighted student count for the school district or charter school for the fiscal year pursuant to section 15-943, paragraph 2, subdivision (a). For the purposes of this paragraph, the weighted student count for a school district that serves as the district of attendance for nonresident pupils shall be increased to include nonresident pupils who attend school in the school district.

H. Monies distributed from the classroom site fund shall be spent for the following purposes:

Class size reduction.
Teacher compensation, including a base pay and performance pay component.
Assessment intervention programs.
Teacher development.
Dropout prevention programs.
Teacher liability insurance premiums.
Student support services.

I. The district governing board or charter school shall allocate the classroom site fund monies to include, if possible, the priorities identified by the principals of the schools while ensuring that the monies maximize classroom opportunities and conform to the authorized expenditures identified in subsection A of this section.

J. School districts and charter schools that receive monies from the classroom site fund shall submit a report by November 15 of each year to the superintendent of public instruction that provides an accounting of the expenditures of monies distributed from the fund during the previous fiscal year and a summary of the results of district and school programs funded with monies distributed from the fund. The department of education in conjunction with the auditor general shall prescribe the format of the report under this subsection.

K. School districts and charter schools that receive monies from the classroom site fund shall receive these monies monthly in an amount not to exceed one-twelfth of the monies estimated pursuant to subsection G of this section, except that if there are insufficient monies in the fund that month to make payments, the distribution for that month shall be prorated for each school district or charter school. The department of education may make an additional payment in the current month for any prior month or months in which school districts or charter schools received a prorated payment if there are sufficient monies in the fund that month for the additional payments. The state is not required to make payments to a school district or charter school classroom site fund if the state classroom site fund revenue collections are insufficient to meet the estimated allocations to school districts and charter schools pursuant to subsection G of this section.

L. The state education system for committed youth shall receive monies from the classroom site fund in the same manner as school districts and charter schools. The Arizona state schools for the deaf and the blind shall receive monies from the classroom site fund in an amount that corresponds to the weighted student count for the current year pursuant to section 15-943, paragraph 2, subdivision (b) for each pupil enrolled in the Arizona state schools for the deaf and the blind. Except as otherwise provided in this subsection, the Arizona state schools for the deaf and the blind and the state education system for committed youth are subject to this section in the same manner as school districts and charter schools.

M. Each school district and charter school, including school districts that unify pursuant to section 15-448 or consolidate pursuant to section 15-459, shall establish a local level classroom site fund to receive allocations from the state level classroom site fund. The local level classroom site fund shall be a budgetary controlled account. Interest charges for any registered warrants for the local level classroom site fund shall be a charge against the local level classroom site fund. Interest earned on monies in the local level classroom site fund shall be added to the local level classroom site fund as provided in section 15-978. This state shall not be required to make payments to a school district or charter school local level classroom site fund that are in addition to monies transferred to the state level classroom site fund pursuant to section 37-521, subsection B, section 42-5029, subsection E, paragraph 10 and section 42-5029.02, subsection A.

N. Monies distributed from the classroom site fund for class size reduction, assessment intervention and dropout prevention programs shall only be used for instructional purposes in the instruction function as defined in the uniform system of financial records, except that monies shall not be used for school-sponsored athletics.

O. For the purposes of this section:

"Assessment intervention" means summer programs, after school programs, before school programs or tutoring programs that are specifically designed to ensure that pupils meet the Arizona academic standards as measured by the statewide assessment prescribed by section 15-741.
"Class size reduction" means any maintenance and operations expenditure that is designed to reduce the ratio of pupils to classroom teachers, including the use of persons who serve as aides to classroom teachers.
"Student support services" means any expenditure in the student support services function as defined in the uniform system of financial records.

§ 15-978 Classroom site fund budget limit; school district

The classroom site fund budget limit for each school district is the sum of the following:

The allocation that is computed for the school district pursuant to section 15-977, subsection G, paragraph 2.
The unexpended budget balance from the classroom site fund for the prior fiscal year.
The net interest earned on monies in the classroom site fund during the prior fiscal year.

§ 15-979 Instructional improvement fund

(Caution: 1998 Prop. 105 applies.)

A. The instructional improvement fund is established consisting of monies deposited pursuant to sections 5-601.02(H)(3)(a)(i) and 5-601.02(H)(3)(b)(i), and interest earned on those monies. The department of education shall administer the fund. The fund is not subject to appropriation, and expenditures from the fund are not subject to outside approval notwithstanding any statutory provision to the contrary.

B. Monies received pursuant to section 5-601.02 shall be deposited directly with the instructional improvement fund. On notice from the department of education, 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 fund. No monies in the instructional improvement fund shall revert to or be deposited in any other fund, including the state general fund. Monies in the instructional improvement fund are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. Monies provided from the instructional improvement fund shall supplement, not supplant, existing state and local monies.

C. The department of education shall pay the monies in the fund to school districts and charter schools. The department of education shall determine the amount of monies from the fund to be paid to each school district and charter school as follows:

Determine the student count for each school district and charter school as provided in section 15-943.
Determine the student count for all school districts and charter schools as provided in section 15-943.
Divide the amount determined in paragraph 1 of this subsection by the total amount determined in paragraph 2 of this subsection.
Multiply the quotient determined in paragraph 3 of this subsection by the total amount of instructional improvement fund monies available to be distributed to school districts and charter schools under this section.

D. Each school district and charter school may utilize up to fifty percent of the amount of monies determined pursuant to subsection C for teacher compensation increases and class size reduction as provided in section 15-977.

E. Monies that are not utilized as provided in subsection D shall be utilized for the following maintenance and operation purposes:

Dropout prevention programs.
Instructional improvement programs including programs to develop minimum reading skills for students by the end of third grade.

F. School districts and charter schools that receive monies from the instructional improvement fund shall submit a report by November 15 of each year to the department of education that provides an accounting of the expenditure of monies distributed from the fund during the previous fiscal year. The department of education in conjunction with the auditor general shall prescribe the format of the report under this subsection.

§ 15-980 Uncollected property tax; property tax loss; supplemental state aid

A. A school district is eligible for supplemental state aid pursuant to this section if a county treasurer certifies to the school district after January 1 that, in the treasurer's reasonable belief, more than ten percent of the primary property tax revenues that the school district is entitled by law to receive pursuant to section 42-18052 will not be remitted to the district due to one of the following circumstances:

Property tax delinquencies.
A loss of property tax revenue resulting from a decrease in assessed valuation due to a natural disaster such as fire or flood.

B. On receiving a certificate pursuant to subsection A of this section, the school district may apply to the department of education for supplemental state aid. The application shall include the county treasurer's certified estimate of the total amount of uncollected primary property taxes or the amount of lost property tax revenue for the school district for the tax year payable in the current fiscal year.

C. Within forty-five days after receiving a complete and correct application, the state board of education shall pay to the school district from amounts appropriated for state aid the amount determined in subsection B of this section. The department of education shall notify the county treasurer and the county school superintendent of the amount and the date of the payment of the supplemental state aid. Supplemental state aid paid under this section shall be excluded from the calculation made pursuant to section 15-973, subsection C.

D. The superintendent of a school district that receives supplemental state aid due to delinquent property taxes pursuant to subsection A, paragraph 1 of this section shall report to the department of education between May 5 and May 25 the actual amount of primary property taxes that was not collected and remitted to the district during the current fiscal year, based on information from the county treasurer. If the amount of supplemental state aid paid pursuant to subsection C of this section exceeds the actual amount of the uncollected primary property taxes that the district is entitled to receive, the state board of education shall deduct the difference between the amount of supplemental state aid paid and the amount of the uncollected primary property taxes from the June 15 and, if necessary, subsequent apportionments of state aid pursuant to section 15-973, subsection B.

E. Beginning on June 1 after the payment of supplemental state aid, the county school superintendent shall report quarterly to the department of education the amount of any payments of delinquent primary property taxes received by the district during the previous quarter with respect to a tax year for which the supplemental state aid was paid and not previously deducted from state aid pursuant to subsection D of this section. The department shall deduct the amount reported from the next apportionment of state aid to the district pursuant to section 15-973, subsection B until the supplemental state aid is repaid. If the district does not receive any apportionment pursuant to section 15-973, subsection B, the department shall direct the school district superintendent to pay that amount to the state treasurer for deposit in the state general fund.

F. A school district that receives supplemental state aid due to loss of assessed valuation pursuant to subsection A, paragraph 2 of this section may receive supplemental state aid for up to three fiscal years. The amount of supplemental state aid shall be reduced each year by one-third and any increased property tax revenue due to higher assessed valuation.

Article 6 County Finance Responsibilities for School Districts

§ 15-991 Annual estimate by county school superintendent of monies for ensuing year; review and approval by property tax oversight commission

A. The county school superintendent shall recompute the equalization assistance for education for each school district pursuant to section 15-971, subsection A and compute the additional amount to be levied pursuant to section 15-992, subsection B using the property values provided by the county assessor under section 42-17052. The county school superintendent must certify in writing to the property tax oversight commission on or before July 25 of each year the amount of equalization assistance for education and the amount to be levied for each school district from the primary property tax pursuant to section 15-992.

B. The county school superintendent must prepare and file with the governing board of each school district in the county and the property tax oversight commission on or before July 25 of each year a written estimate of the amount of monies required by each school district for the ensuing school year based on the proposed budget adopted by each school district governing board. The estimate shall contain:

A statement of the student count of each school district.
The additional amounts needed for each school district from the primary property tax and the secondary property tax, as estimated by the county school superintendent. The county school superintendent shall certify those amounts to the board of supervisors and the property tax oversight commission in writing at the time of filing the estimate.
The calculation of the amount to be levied as prescribed by section 15-992 using the values provided by the county assessor under section 42-17052.

C. The property tax oversight commission must review the primary property tax calculations filed under subsection B, paragraph 3 of this section.

D. The county school superintendent must file in writing with the county board of supervisors and the property tax oversight commission on or before the third Monday in August of each year the amount that is required to be levied for each school district from both the primary property tax prescribed by section 15-992 and the secondary property tax.

E. On or before September 1, the governing board of a school district shall file with the county school superintendent an estimate of the amount of title VIII of the elementary and secondary education act of 1965 monies it is eligible to receive during the current year. On or before June 1, the governing board shall file with the county school superintendent and the superintendent of public instruction a statement of the actual amount of title VIII of the elementary and secondary education act of 1965 monies it received during the current year. This subsection does not apply to accommodation schools.

F. The department may collect any other similar or related information from school districts that the department may determine is necessary to carry out the purposes of this section.

§ 15-991.01 Tax levy for property not located in a school district

A. The board of supervisors of each county, at the time of levying other taxes, shall annually levy a tax on property not located in a school district. The tax levy shall be at a rate equal to one-half the qualifying tax rate prescribed in section 15-971, subsection B, paragraph 2, per one hundred dollars of assessed valuation used for primary property taxes. The tax shall be levied and collected in the same manner as general county taxes on the property. The tax levy provided for in this section is not subject to title 42, chapter 17, articles 2 and 3. The monies received pursuant to this section shall be transmitted by the county treasurer to the state treasurer to be deposited in the state general fund to aid in school financial assistance.

B. The reduction in taxes prescribed in section 15-972 applies to taxes levied pursuant to this section on residential property, except that the state shall not make the payments prescribed in section 15-972, subsection H for this reduction in taxes.

C. This section does not apply to territory that was previously unorganized but that is currently part of a school district that is joined pursuant to section 15-445.

§ 15-992 School district tax levy; additional tax in districts ineligible for equalization assistance; definition

A. The board of supervisors of each county, at the time of levying other taxes, shall annually levy school district taxes on the property in any school district in which additional amounts are required, which shall be at rates prescribed in this section. A delinquency factor for estimated uncollected taxes may not be included in the computation of the primary tax rate for school district taxes. Local property taxes may not be levied for any deficit in the classroom site fund. The taxes shall be added to and collected in the same manner as other county taxes on the property within the school district. The amount of the school district taxes levied on the property in a particular school district shall be paid into the school fund of that school district.

B. At the same time of levying taxes as provided in subsection A of this section, the county board of supervisors shall annually levy an additional tax in each school district that is not eligible for equalization assistance as provided in section 15-971 in an amount determined as follows:

Determine the levy that would be produced by fifty percent of the applicable qualifying tax rate, prescribed in section 15-971, subsection B, per $100 assessed valuation.
Subtract the amounts determined in section 15-971, subsection A and subsection F of this section from the levy determined in paragraph 1 of this subsection. This difference is the additional amount levied or collected as voluntary contributions pursuant to title 48, chapter 1, article 8, except that if the difference is zero or is a negative number, there shall be no levy.

C. Monies collected pursuant to subsections B and F of this section shall be transmitted to the state treasurer for deposit in the state general fund to aid in school financial assistance.

D. The additional tax prescribed in subsection B of this section is considered to be primary property tax for purposes of section 15-972, subsection B, except that this state is not required to make the payments prescribed in section 15-972, subsection H for these reductions in taxes.

E. The tax levy prescribed in subsection A of this section shall be a rate equal to the applicable qualifying tax rate or rates as prescribed in section 15-971, subsection B or a rate that would result in a levy that equals the school district equalization assistance base prescribed in section 15-971 subtracted by any amount received pursuant to section 15-905, subsections K, O and P per $100 of assessed valuation used for primary property taxes, whichever is less.

F. At the same time of levying taxes as provided in subsection A of this section, the county board of supervisors shall annually levy an additional tax in each common school district not within a high school district that is equal to the lesser of:

A rate that is equal to the applicable qualifying tax rate or rates as prescribed in section 15-971, subsection B.
A rate that would result in a levy that equals the statewide average per pupil funding for high school pupils multiplied by the student count as defined in section 15-901 of resident high school pupils in the common school district not within a high school district during the prior school year. On or before July 1 of each year, the department of education shall provide each common school district not within a high school district with the student count as defined in section 15-901 of resident high school pupils in the district during the prior school year. On or before July 1 of each year, the department of education shall provide each county board of supervisors with the statewide average per pupil funding for high school pupils, the student count as defined in section 15-901 of resident high school pupils in the common school district not within a high school district during the prior school year and any other information requested by the county board of supervisors for the purposes of levying the tax prescribed in this subsection. For the purposes of this paragraph, "per pupil funding" means the amount calculated pursuant to section 15-943, paragraph 2, subdivision (a) for grades nine through twelve multiplied by the sum of the following:

(a) District additional assistance pursuant to section 15-961, subsections A, B and C for a school district with a student count of six hundred or more in grades nine through twelve.

(b) The base level amount prescribed by section 15-901.

G. At the time of levying taxes as provided in subsection E of this section, the county school superintendent shall annually validate any additional primary school district tax levy amount requests from each school district and levy the sum of the following amounts:

A rate that would result in a levy that equals the difference between the transportation revenue control limit as determined in section 15-946 and the transportation support level as determined in section 15-945 or a lesser amount.
A rate that would result in a levy that equals any amount pursuant to section 15-910.
A rate that would result in a levy that equals any amount for tuition loss as determined in section 15-954.
A rate that would result in a levy that equals any amount for the small school adjustment as determined in section 15-949.
A rate that would result in a levy that equals any amount for liabilities in excess of the school district budget pursuant to section 15-907.
A rate that would result in a levy that equals any amount for adjacent ways pursuant to section 15-995.
A rate that would result in a levy that equals the amount not captured by the qualifying tax rate as a result of property subject to the government property lease excise tax pursuant to title 42, chapter 6, article 5 as calculated in section 15-971, subsection B, paragraph 2.
Following the recommendation of the county school superintendent and on approval by the county board of supervisors, for a school district that is not eligible for state aid, a rate that would result in a levy that equals any legal amount not levied in the current year as a result of underestimated average daily membership in the current year or as a result of a judgment in accordance with section 42-16213.
A rate that would result in a levy that equals any amount pursuant to a qualifying dropout prevention program that was originally established by law in 1987.
On the recommendation of the county school superintendent and on approval by the county board of supervisors before adoption of tax rates pursuant to section 42-17151, a rate that would result in a levy that equals any separately stated cash deficit from the prior fiscal year resulting from an anticipated or actual deviation in the property tax roll, including resolutions or judgments pursuant to title 42, chapter 16, articles 5 and 6.

H. For the purposes of this section, "assessed valuation" includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.

§ 15-995 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 constructing sidewalks, sewers, utility lines, roadways and other related improvements in or along such streets and intersections, and to pay for such improvements by 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 within the department of administration and include the project cost estimate. If the entire project cost for the adjacent ways project is greater than $50,000, the division shall approve or deny the project within sixty days after receiving the filing of the project proposal by the school district and the expenditure shall not be made unless the division validates both of the following within sixty days after receiving the filing of the proposal:

The project that is proposed to be funded by the assessment complies with state laws relating to adjacent ways projects.
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.

§ 15-996 Duties of county treasurer relating to school district's monies

The county treasurer shall:

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 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.
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.
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.

Notify the county school superintendent by the fifteenth day of each calendar month of the month end balances of each school district account.
Pay warrants issued by the county school superintendent and duly endorsed by the person entitled to receive the monies.
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.

§ 15-997 Authority of county officers as to funds, taxes and boundaries of joint common school district

A. The county treasurer of the jurisdictional county shall have custody of the funds of a joint common school district and shall perform all duties imposed by law for the control and accounting of other school funds. Warrants drawn against the funds of a joint common school district shall be drawn by the county school superintendent of the jurisdictional county. Any estimates or other information required by the boards of supervisors of the counties in the joint common school district as a basis for action by such boards shall be supplied by the county school superintendent of the jurisdictional county. The board of supervisors of each county shall perform all duties required by law with respect to county appropriation of funds and levy of taxes for joint common school districts in the same manner as though the portion of the joint common school district in its county were a separate school district, except that all such tax proceeds and monies shall be paid over to the treasurer of the jurisdictional county.

B. The statement of school district boundaries required to be filed annually by the county school superintendent shall be filed in each county.

C. All amounts required to be raised by the school district through the levy of ad valorem taxes shall be raised through the levy of taxes at the same rate on all taxable property in the school district regardless of location as to county. The county school superintendent of the jurisdictional county shall file with the board of supervisors of each county a statement and estimate upon which taxes are to be based which shall include the assessed valuation of all taxable property in the school district and the tax rate necessary to be levied.

D. The board of supervisors of the jurisdictional county shall hold a budget hearing as required by law and shall have control over the investment of the debt service funds of the joint common school district.

§ 15-998 Liability of treasurer for failure to keep separate account or give notice; enforcement

If the county treasurer fails to keep a separate account for each school district and for the special county school reserve fund or give the notice required by section 15-996, he is liable to the county in the amount of five hundred dollars, and the county attorney shall, upon direction of the board of supervisors, bring an action in the name of the county against the treasurer for the recovery of the five hundred dollars. Monies collected are payable into the county school fund.

§ 15-999 Preference of payment of warrants; use of balance of school fund remaining at close of fiscal year

A. All warrants registered after January 1, 1936 and drawn on the county treasurer against the school fund of the school district by the county school superintendent or finance officer of a school district that has assumed accounting responsibility pursuant to section 15-914.01 on the order of the governing board shall be entitled to preference of payment out of the school fund according to priority of registration.

B. Unless otherwise provided in this chapter and chapter 10 of this title, if a balance remains in the school fund of a school district at the close of a fiscal year, such balance shall be used for reduction of school district taxes for the budget year.

C. A warrant that is drawn on the school fund of the school district by the county school superintendent or finance officer of a school district that has assumed accounting responsibility pursuant to section 15-914.01 and that is not presented for payment within one year after the date of issuance is void. All warrants not presented within one year shall have no further force or effect, and any monies held at the expiration of such time in any fund or account for the payment of the warrants shall be transferred or reverted to the fund upon which the warrants were drawn.

§ 15-1000 County school fund

The county school fund of each county shall consist of all revenues accruing to the credit of each county from:

That portion of the payments made under section 36-1419 which represents payment in lieu of the county levy for school purposes.
Taylor grazing act monies as provided in section 37-723.
All receipts from the lease of public lands as provided in section 37-724.
All balances remaining in the county school fund and in the special county school reserve fund at the end of the fiscal year and all balances of lapsed school districts remaining after the payments authorized under section 15-469.
All dividends, proceeds from sales, refunds, credits arising from cancelled warrants and any other sums or amounts that are attributable to the county school fund.
All other federal lieu taxes which are not specifically allocated by law.
Any gratuity or devise designated for specific school purposes.

§ 15-1001 Special county school reserve fund

A. The board of supervisors of each county shall annually budget for the special county school reserve fund an amount to meet the requirements of that fund. Warrants drawn on the special county school reserve fund shall be approved prior to payment by the board of supervisors, as other county warrants are approved, or this responsibility may be delegated by the board of supervisors to the county school superintendent. The budgeted amounts for the special county school reserve fund shall be itemized and estimated to meet the following needs:

For transportation of school children to and from one-room and two-room rural schools that are determined by the county school superintendent to be in need of such aid.
For transportation to and from unorganized territory to school districts of children who are eligible to receive state aid.
For transportation to and from the nearest high school of pupils residing in common school districts which are contiguous or not contiguous to and which are not within a high school district if it is determined by the county school superintendent that such common school districts are in need of such aid to supplement the monies received as provided in subsection B of this section.
For one-room and two-room school districts, an amount which when added to the state aid for a school district will provide not more than five thousand dollars for a one-room school and not more than nine thousand dollars for a two-room school, provided that such schools are maintained for a minimum of one hundred seventy-five days or two hundred days, as applicable, per year.
For necessary expenses for the establishment and conduct of accommodation schools pursuant to section 15-308.
For expenditures necessary to establish and maintain, for the first year of operation, a county special education program for children with disabilities as provided in chapter 7, article 4 of this title.

B. The county school superintendent shall determine the eligibility for transportation aid for the transportation of children from unorganized territory to school districts within that county in the manner provided in this chapter for other school districts and shall certify the eligibility to the department of education.

C. The county school superintendent shall determine the amount of transportation aid for transportation of children from unorganized territory to school districts within that county based upon the provisions of section 15-945, subsection A, paragraphs 1 and 2, except that such transportation aid shall not exceed the actual cost of providing such transportation. The county school superintendent shall certify the amount to the department of education which shall apportion the monies no later than the second Monday in September, December, March and June.

§ 15-1002 Administration of county school reserve fund; uses

A. The special county school reserve fund may be used only for:

Transportation of children to and from one-room and two-room rural schools that are determined by the county school superintendent to be in need of such aid.
Transportation from unorganized territory to school districts of children who are eligible to receive state aid for such children.
Transportation to and from the nearest high school of pupils residing in common school districts which are contiguous or not contiguous to and which are not within a high school district, if it is determined by the county school superintendent that such common school districts are in need of such aid.
Costs of maintaining one-room and two-room rural schools in any school district in excess of the amount available for such schools from the county school fund and their school district levy, but not to exceed the additional amount required and estimated for such purpose by the county school superintendent in fixing the amount of the special county school reserve fund under the provisions of section 15-1001.
Necessary expenses in excess of the per capita apportionment from the county school fund for the establishment and conduct of schools in unorganized territory.
Expenditures necessary to establish and maintain, for the first year of operation, a county special education program for children with disabilities as provided in chapter 7, article 4 of this title.
Expenditures for service programs pursuant to section 15-365.

B. The county school superintendent shall apportion the special county school reserve fund. If at the end of any school year any part of the reserve fund remains unexpended, such amount shall be shown in the estimate of the county school superintendent for the succeeding year as a balance of county school funds on hand, except as prescribed by the terms of subsection C of this section.

C. If an accommodation school accepting federal funds becomes a school district, the board of supervisors may order the county school superintendent to transfer the cash balance credited to the accommodation school as of July 1 of the fiscal year in which the transfer occurred to the newly organized school district. In addition, all property both real and personal, title of which is vested in the accommodation school, shall become the property of the newly formed school district.

Article 7 Bond Issues and Bonded Indebtedness

§ 15-1021 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 $1,500 per student count pursuant to section 15-901, subsection A, paragraph 14, 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 $1,500 per student count pursuant to section 15-901, subsection A, paragraph 14, 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:

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.
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 56, article 8, 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.

§ 15-1022 Tax levy for bonds; administration and disposition of tax; cancellation of paid bonds; security

A. The board of supervisors, at the time of making the levy of taxes for county purposes, shall levy a tax for the year on the taxable property in a school district or former school district canceled by election, which has outstanding school bonds for the interest and redemption of the bonds. The tax shall not be less than sufficient to pay the interest of the bonds for the year and the portion of the principal of the bonds becoming due during the year and in any event shall be enough to raise, annually, for the first half of the term of the bonds a sufficient amount to pay the interest thereon, and during the remainder of the term enough to pay the annual interest and to pay, annually, a portion of the principal of the bonds equal to an amount produced by taking the whole amount of bonds outstanding and dividing it by the number of years the bonds then have to run.

B. All monies, when collected, shall be paid into the county treasury to the credit of the debt service fund of the school district and shall be used only for payment of principal and interest on the bonds. The county treasurer shall keep the debt service fund separate from all other funds in the county treasury. The principal and interest on the bonds shall be paid by the county treasurer from the fund provided therefor.

C. The county treasurer or the treasurer's designated agent shall cancel all bonds and coupons when paid.

D. All bonds, heretofore and hereafter issued, are secured by a lien on all revenues received pursuant to the tax levy. The lien arises automatically without the need for any action or authorization by the school district, the school district's governing board or the county treasurer. The lien is valid and binding from the time of the issuance of the bonds. The revenues received pursuant to the levy of the tax are immediately subject to the lien. The lien attaches immediately to the revenues and is effective, binding and enforceable against the school district, the school district's governing board and the county treasurer, their successors, transferees and creditors and all other parties asserting rights in the revenues, irrespective of whether the parties have notice of the lien, without the need for any physical delivery, recordation, filing or further act.

§ 15-1023 Issuance of bonds

A. Upon receipt of the certificate of the appropriate election officer as provided in section 15-493 that a majority of votes cast at the bond election favors issuing the bonds, the school district governing board shall issue the bonds of the school district in the number and amount provided in the proceedings, payable from the debt service fund of the school district, naming the fund, and the monies shall be raised by taxation upon the taxable property in the school district for redemption of the bonds and payment of interest thereon.

B. The governing board of the school district by an order entered upon its minutes shall prescribe the form of the bonds and the interest coupons attached thereto and fix the time when the whole or any part of the principal of the bonds is payable, which shall not be more than twenty years from the date thereof.

§ 15-1023.01 Municipal property corporation financing prohibited; definition

A. Except as provided in subsection C, a school district shall not directly or indirectly pledge its full faith and credit nor incur any direct or indirect obligation of any kind against or pay school district revenues to a municipal property corporation or a special district under title 48 as a means of financing the acquisition or construction of school capital facilities.

B. This section does not apply to any valid obligation initially incurred by a school district on or before December 31, 1998.

C. A school district may pledge school district revenues to a municipal property corporation or a special district under title 48 for the purpose of constructing teacher housing facilities or for any project financed with a loan from the United States department of agriculture.

D. For purposes of this section, "municipal property corporation" means a corporation organized by or at the direction of a city, town or school district to construct and own a capital facility that the school district pledges to lease or lease-purchase and finance with school district revenues.

§ 15-1024 Interest on bonds; sale; disposition of proceeds; definition

A. The bonds shall bear interest, payable semiannually at the rate or rates set by the accepted bid, which shall not exceed the maximum rate of interest set forth in the resolution calling the election. The bonds may be made payable at such place within the United States as the governing board of the school district directs and shall be sold in the manner prescribed by the governing board of the school district for not less than par.

B. The proceeds of the sale of the bonds shall be deposited in the county treasury to the credit of the bond building fund of the school district. Such deposits may be drawn out for the purposes authorized by this article as other school monies are drawn. If a balance remains in the bond building fund after the acquisition or construction of facilities is completed for which the bonds were issued and on written request of the governing board:

If the school district has outstanding bonded indebtedness, the balance remaining in the bond building fund shall be transferred to the debt service fund of the district.
If the district has no outstanding bonded indebtedness, the balance remaining in the bond building fund shall be used for reduction of school district taxes.

C. When bonds are sold and the proceeds are not required to be used for a period of ten days or more, such proceeds may be invested as provided by section 15-1025, subsection B. All monies earned as interest or otherwise derived from the investment of the proceeds of the sale of the bonds shall be credited to the debt service fund, except that on the request of the district, the monies earned as interest shall be deposited to the bond building fund if federal laws or rules require the interest to be used for capital expenditures or the monies earned as interest shall be credited to the bond building fund if the voters authorized such use of the monies in a separate question at the bond election. The separate question shall inform the voters that the monies will be credited to the debt service fund, and may therefore reduce the amount of the secondary property tax, if the measure authorizing the monies to be credited to the bond building fund does not pass.

D. The amount of net premium associated with a bond issue may be used only for one or more of the following:

To pay costs incurred in issuing the bonds, subject to section 15-491, subsection G and section 15-1465, subsection A.
As a deposit in a debt service fund and used only to pay interest on the bonds.
For any other purpose, if the district has voter authorization and available capacity under its debt limitations and the amount of net premium used for such purpose will reduce in an equal amount both:

(a) The available aggregate indebtedness capacity of the district under the statutes and constitution of this state.

(b) The principal amount authorized at the election for the district from which the issue of bonds is being sold.

E. Any net premium used as provided in subsection D, paragraph 3 of this section shall be amortized for all debt limitation purposes on a pro rata basis each year by multiplying the net premium used by a percentage equal to the percentage of the total principal amount of the bond issue that matures in that year.

F. For the purposes of this section, "net premium" means the difference between the par amount of the bond issue and the bond issue price determined pursuant to United States treasury regulations.

§ 15-1025 Investment and reinvestment of debt service fund

A. The governing board of a school district may invest and reinvest all monies belonging or credited to the school district as a debt service fund. Consent may be requested prior to the beginning of any fiscal year for the adoption of a resolution of continuing effect. The investment shall be made for the best interests of the school district.

B. The funds may be invested and reinvested in any of the following:

Bonds or other evidences of indebtedness of the United States of America or any of its agencies or instrumentalities when such obligations are guaranteed as to principal and interest by the United States of America or by any agency or instrumentality thereof.
Bonds or other evidences of indebtedness of this state, or of any of the counties or incorporated cities, towns or school districts of this state.
Bonds, notes or evidences of indebtedness of any county, municipality or municipal district utility within this state, which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on such obligations, and for the payment of which a lawful debt service fund or reserve fund has been established and is being maintained, but only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment therein or, if such obligations were issued less than five years prior to the date of investment, no default in payment of principal or interest has occurred on the obligations to be purchased, nor on any other obligations of the issuer within five years of such investment.
Bonds, notes or evidences of indebtedness issued by any municipal improvement district in this state to finance local improvements authorized by law, if the principal and interest of such obligations are payable from assessments on real property within such local improvement district. No such investment shall be made if the face value of all such obligations and similar obligations outstanding exceeds fifty per cent of the market value of the real property and improvements upon which such bonds or the assessments for the payment of principal and interest thereon are liens inferior only to the liens for general ad valorem property taxes. Such investment shall be made only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment therein or, if such obligations were issued less than five years prior to the date of investment, no default in payment of principal or interest has occurred on the obligations to be purchased, nor on any other obligation of the issuer within five years of such investment.
Interest bearing savings accounts or certificates of deposit insured in banks or savings and loan associations doing business in Arizona by the federal deposit insurance corporation, but only if they are secured by the depository to the same extent and in the same manner as required by the general depository law of this state. Security shall not be required for that portion of any deposit that is insured under any law of the United States.
Bonds, debentures or other obligations issued by the federal land banks, the federal intermediate credit banks or the banks for cooperatives.
Deposits placed in accordance with the procedures prescribed in section 35-323.01.

C. The purchase of the securities shall be made by the county treasurer or the treasurer's designated agent upon authority of a resolution of the governing board. The county treasurer shall be the custodian of all securities so purchased. The securities may be sold upon an order of the governing board.

D. All monies earned as interest or otherwise derived by virtue of the provisions of this section shall be credited to the debt service fund.

§ 15-1027 Administration of school district debt service funds by county treasurer

The county treasurer shall keep an account of all school district debt service funds, showing the school district to which each fund belongs. On or before the fifteenth day of each month the treasurer shall credit the amount of monies collected during the preceding month to which the school district is entitled. The treasurer shall receive and credit any and all interest or income earned by the debt service fund.

§ 15-1028 Disposition of surplus tax monies

A. If a bond issue and interest thereon have been fully paid and a balance remains in the debt service fund from taxes collected for payment of the bonds and interest, the balance may be applied on the payment of other outstanding bonded indebtedness of the school district payable from the levy of taxes on property within the school district in which the excess tax monies were collected, or if there is no outstanding bonded indebtedness, the balance remaining in or accruing to the debt service fund, on written request of the governing board of the school district, shall be used for reduction of school district taxes.

B. When a school bond issue and interest thereon have been fully paid and a tax levy has thereafter been made on and taxes collected from property the situs of which is in a school district other than the original school district for which the levy was made, such taxes shall belong to the school district from which they were collected, and the county treasurer shall credit such taxes to the general school fund of the school district. The taxes may be expended by the governing board of the school district as other monies in its general school fund are expended.

§ 15-1029 Rights of bondholder; additional state tax

A. If the board of supervisors fails to make the levy necessary to pay school district bonds or interest coupons at maturity and such bonds or coupons are presented to the county treasurer and payment is refused, the owner may file the bond, together with all unpaid coupons, with the department of administration, taking his receipt therefor. Such bonds and coupons shall be registered with the department of administration.

B. The department of revenue shall add to the tax to be levied by the school district which issued the bonds a sufficient rate to obtain the amount of principal or interest past due prior to the next levy. The tax shall be levied and collected as a part of the school district tax but shall be paid into the state treasury, shall be passed to the special credit of the school district bond tax and shall, as payments mature, be paid by warrants to the holder of registered obligations as shown by the register in the department of administration until such obligations are fully satisfied and discharged. Any balance then remaining shall be remitted to the general account and credit of the school district.

§ 15-1030 Cancellation of unsold bonds; notice; hearing

A. If a bond issue remains unsold for six months after being offered for sale, the governing board of the school district or any school district comprised wholly or partly of territory which at the time of holding the bond election was within the school district may cancel the unsold bonds.

B. The school district governing board shall fix a time for a hearing on the proposed cancellation of the unsold bonds. The school district governing board shall give notice of the time and place of the hearing which shall set forth in general terms the object of the hearing. The notice shall be published for ten days prior to the day of hearing in some newspaper published in the school district. If no newspaper is published in the school district, the notice shall be published in a newspaper published at the county seat of the county in which the school district or some part thereof is located.

C. At the time and place designated in the notice the school district governing board shall hear reasons for or against granting the proposed cancellation of the unsold bonds, and if the board deems it for the best interests of the school district that the unsold bonds be canceled it shall enter an order canceling the unsold bonds, and thereupon the bonds and the vote by which they were authorized to be issued shall be void.

§ 15-1031 Power to use outstanding bond authorizations of common school districts or high school districts

A. All outstanding authorizations permitting the issuance of bonds, as provided in this section and sections 15-1022 through 15-1030, or the incurring of debt by a common school district or a high school district at the time either such district becomes part of a unified school district, shall remain in full force and effect. The unified school district shall be vested with all powers to act for and on behalf of such common school district or high school district to issue the bonds for the purposes for which such authorizations were granted. The school district governing board may submit the bonds for approval by the attorney general.

B. The bonds shall be issued pursuant to this section, chapter 4, article 5 of this title and sections 15-1021 through 15-1030 except that the effect of the bonds issued pursuant to this section shall be the same as if the questions pertaining to the issuance of the bonds had been submitted to and approved by the electors of the unified school district after its formation.

C. The provisions of this section shall not be construed as authorizing indebtedness in excess of the percentage limitation as prescribed for a unified school district in article IX, section 8.1, Constitution of Arizona.

§ 15-1032 Capital facilities; bonded indebtedness liability for unified school districts

A. All school buildings of established school districts which are located within any unified school district shall, together with all equipment and furnishings, become the property of the unified school district.

B. If any established common school district or high school district has a bonded indebtedness liability, the liability or so much of it as is attributable to facilities located within the boundaries of any unified school district shall become an assumed indebtedness liability of the unified school district. The unified school district governing board shall levy a tax against the property of the unified school district for the payment of the principal and interest, but nothing in this section shall be construed to relieve the taxable property in the theretofore existing school districts from liability to taxation for the payment thereof if necessary to prevent a default in such payment. The unified school district shall assume the indebtedness liabilities of the existing school districts which shall be regarded as an indebtedness of the unified school district for the purpose of determining the debt incurring capacity of the unified school district.

§ 15-1033 Certification of school district bonds by attorney general

A. Any school district may submit to the attorney general bonds to be issued under this article after the school district has authorized their issuance. Within fifteen days after submission by the school district, the attorney general shall examine the bonds and pass on the validity of the bonds and the regularity of the proceedings authorizing their issuance.

B. If the bonds and proceedings submitted to the attorney general by a school district conform to the laws of this state, and if the bonds when delivered and paid for will constitute binding and legal obligations of the school district according to the terms of the bonds, the attorney general shall certify in substance that the bonds are issued in accordance with the constitution and laws of this state.

Article 8 Student Accountability Information System

§ 15-1041 Student accountability information system

The student accountability information system is established to enable school districts, career technical education districts and charter schools to transmit student level data and school finance data electronically through the internet to the department of education for the purposes of complying with the statutory obligations of the department of education and the state board of education.

§ 15-1042 Student level data; timeline for submittal; confidentiality; definition

A. The department of education shall notify school districts, career technical education districts and charter schools of electronic data submission procedures and shall distribute a list of the specific student level data elements, including the statutory or regulatory reference for each data element, that school districts, career technical education districts and charter schools are required to submit.

B. Each school district, career technical education district and charter school shall submit electronic data on a school-by-school basis, including student level data, to the department of education in order for the school district, career technical education district or charter school to receive monies for the cost of educating students pursuant to this title.

C. The department of education shall grant a school district, career technical education district or charter school an extension to the deadline to submit student level data or may provide for an alternative method to submit student level data if the school district, career technical education district or charter school proves that good cause exists for the extension, and the school district, career technical education district or charter school shall continue to receive monies for the cost of educating students pursuant to this title. The request for an extension of the deadline to submit student level data pursuant to this subsection shall include a justification for the extension and the status of current efforts toward complying with the submission of student level data.

D. A pupil or the parent or guardian of a pupil shall not be required to submit data that does not relate to the provision of educational services or assistance to the pupil.

E. Unless otherwise prescribed, school districts, career technical education districts and charter schools shall begin to report new data elements on July 1 of the year that follows the effective date of the law that requires the collection of the data.

F. Student level data items submitted to the department of education by school districts, career technical education districts and charter schools pursuant to this section shall not be used to adjust funding levels or calculate the average daily membership for the purpose of funding school districts at any time other than the fortieth, one hundredth and two hundredth days of the school year.

G. A school district, career technical education district or charter school is not required to submit student level data to the department of education more often than once every twenty school days.

H. Notwithstanding subsection J of this section, the student level data shall include reasons for the withdrawal if reasons are provided by the withdrawing pupil or the pupil's parent or guardian. For the purposes of this subsection, the department of education shall include in the specific student level data elements that school districts, career technical education districts and charter schools are required to submit data relating to students who withdraw from school because the student is pregnant or because the student is the biological parent of a child.

I. All student level data collected pursuant to this section is confidential and is not a public record. The data collected may be used for aggregate research and reporting and for providing access of student level data to school districts, career technical education districts, charter schools, community colleges and universities under the jurisdiction of the Arizona board of regents.

J. For the purposes of this section, "student level data" means all data elements that are compiled and submitted for each student in this state and that are necessary to complete the statutory requirements of the department of education and the state board of education relating to calculating funding for public education, determining student academic progress as measured by student testing programs in this state, state and federal reporting requirements and other duties prescribed to the department of education or the state board of education by law. Student level data does not include data elements related to student behavior, discipline, criminal history, medical history, religious affiliation, personal physical descriptors or family information not authorized by the parent or guardian of the pupil or otherwise required by law.

§ 15-1043 Student level data; allowable disclosure; policies

A. Any disclosure of educational records compiled by the department of education pursuant to this article shall comply with the family educational rights and privacy act (20 United States Code section 1232g).

B. Student level data may not be updated unless the change is authorized by the school district, career technical education district or charter school.

C. The department of education shall adopt policies and procedures to both:

Allow access of student level data for currently enrolled students to all of the following:

(a) School districts.

(b) Career technical education districts.

Allow access of student level data to all of the following:

(a) County school superintendents for students currently enrolled in a school district located in the superintendent's county of jurisdiction.

(b) The state board of education for students currently enrolled in a school district or charter school in this state.

(c) The state board for charter schools for students currently enrolled in a charter school sponsored by the state board for charter schools.

D. The department of education shall develop, publish and make publicly available policies and procedures to comply with the family educational rights and privacy act of 19 (20 United States Code section 1232g) and other relevant privacy laws and policies, including policies that manage access to personally identifiable information, to be implemented by the department of education, county school superintendents, the state board of education and the state board for charter schools pursuant to this section and as prescribed by interagency data-sharing agreements. The policies and procedures must comply with all of the following:

Contain a detailed data security plan that includes all of the following:

(a) Guidelines for authorizing access to the systems housing student level data and to individual student data, including guidelines for authenticating authorized access.

(b) Privacy compliance standards.

(d) Security breach planning, notice and procedures.

(e) Data retention and disposition policies, which must include specific criteria for identifying when and how the data will be destroyed.

(f) Guidance for school districts, charter schools and staff regarding data use.

(g) Consequences for security breaches.

(h) Staff training regarding the guidelines.

Ensure that written agreements involving the disclosure of student level data to the department of education, county school superintendents, the state board of education and the state board for charter schools comply with all of the following:

(a) Meet the minimum conditions prescribed by the family educational rights and privacy act for exceptions to written parental consent as outlined in 20 United States Code section 1232g(b) and (h) through (j) and 34 Code of Federal Regulations section 99.31.

(b) Specify the purpose, scope and duration of the disclosure and the information to be disclosed.

(c) Require the organization to use personally identifiable information from educational records only to meet the purpose or purposes of the disclosure as stated in the written agreement.

(d) Require the organization to conduct the disclosure in a manner that does not allow access to the personally identifiable information of parents and students by anyone other than representatives of the organization with legitimate interests.

(e) Require the organization to destroy all personally identifiable information when the information is no longer needed for the purposes for which the disclosure was conducted and to specify the time period in which the information must be destroyed.

Ensure that any work products from the use of student level data by the department of education, county school superintendents, the state board of education or the state board for charter schools are not in conflict with any state and federal reporting that meets state and federal law.
Provide access to student level data through an online platform within the parameters of federal law and pursuant to the written agreements with the consent of the required parties.

E. This section does not apply to a homeschool student with an affidavit on file pursuant to section 15-802.

§ 15-1045 Education database; pupil privacy

A. Any collection, maintenance or disclosure of pupil educational records compiled by the department of education in an education database of pupil records shall comply with the family educational rights and privacy act (20 United States Code section 1232g).

B. The department of education shall maintain the database in the following manner:

The use of the information is limited to comply with statutory obligations.
Personally identifiable information is confidential and is not public record.
Proper security measures are employed to ensure the confidentiality and integrity of the education database.
Data is secured from breaches and identity theft through implementation of protections and standards.

C. The pupil identifier in the education database is unique, not identifiable by anyone other than officials maintaining the education database and shall not be the pupil's social security number or any variation of the pupil's social security number.

§ 15-1046 Student data privacy; definitions

A. An operator may not knowingly do any of the following:

Engage in targeted advertising on the operator's site, service or application or on any other site, service or application if the targeting of the advertising is based on any information, including covered information and persistent unique identifiers, that the operator has acquired because of the use of that operator's site, service or application for school purposes.
Use information, including persistent unique identifiers, created or gathered by the operator's site, service or application to amass a profile about a student except in furtherance of school purposes. This paragraph does not apply to the collection and retention of account information that remains under the control of the student, the student's parent or guardian or the public school.
Sell or rent a student's information, including covered information. This paragraph does not apply to the purchase, merger or other type of acquisition of an operator by another entity if the operator or successor entity complies with this section regarding previously acquired student information, or to national assessment providers if the provider secures the express written consent of the student's parent or guardian or the student that is given in response to a clear and conspicuous notice, solely to provide access to employment, educational scholarships or financial aid or postsecondary educational opportunities.
Except as otherwise provided in paragraph 3 of this subsection, disclose or use covered information unless the disclosure or use is made for any of the following purposes:

(a) In furtherance of the school purpose of the site, service or application if the recipient of the disclosed covered information does not further disclose the information except to allow or improve operability and functionality of the operator's site, service or application.

(b) To ensure legal and regulatory compliance or protect against liability.

(d) To protect the safety or integrity of users of the site, service or application or others or the security of the site, service or application.

(e) For a school, educational or employment purpose requested by the student or the student's parent or guardian if the information is not used or further disclosed for any other purpose.

(f) To a third party if the operator contractually prohibits the third party from using any covered information for any purpose other than providing the contracted service to or on behalf of the operator, prohibits the third party from disclosing any covered information provided by the operator with subsequent third parties, and requires the third party to implement and maintain reasonable security procedures and practices.

B. This section does not prohibit the operator's use of information for maintaining, developing, supporting, improving or diagnosing the operator's site, service or application. An operator may use student data, including covered information, for adaptive or customized student learning. This subsection does not allow an operator to disclose or use student data, including covered information, in violation of subsection A of this section.

C. An operator shall do all of the following:

Implement and maintain reasonable security procedures and practices that are appropriate to the nature of the covered information and that are designed to protect that covered information from unauthorized access, destruction, use, modification or disclosure.
Delete, within a reasonable time period, a student's covered information if the public school requests deletion of covered information under the control of the public school, unless the student or the student's parent or guardian consents to the maintenance of the covered information.
Provide prominent notice before making material changes to its privacy policies.

D. An operator may use or disclose covered information of a student under the following circumstances:

Federal or state law requires the operator to disclose the information and the operator complies with the requirements of federal and state law in protecting and disclosing that information.
The covered information is not used for advertising or to amass a profile on the student for purposes other than school purposes, for legitimate research purposes as required by state or federal law and subject to the restrictions under applicable state and federal law, or as allowed by state or federal law and in furtherance of school purposes.
To a state or local educational agency for school purposes as permitted by state or federal law.

E. This section does not prohibit an operator from doing any of the following:

Using covered information to improve educational products if that information is not associated with an identified student within the operator's site, service or application or other sites, services or applications owned by the operator.
Using covered information that is not associated with an identified student to demonstrate the effectiveness of the operator's products or services, including in the operator's marketing.
Sharing covered information that is not associated with an identified student for the development and improvement of educational sites, services or applications.
Using recommendation engines to recommend to a student either of the following:

(a) Additional content relating to an educational, other learning or employment opportunity purpose within an online site, service or application if the recommendation is not determined in whole or in part by payment or other consideration from a third party.

(b) Additional services relating to an educational, other learning or employment opportunity purpose within an online site, service or application if the recommendation is not determined in whole or in part by payment or other consideration from a third party.

Responding to a student's request for information or feedback without the information or response being determined in whole or in part by payment or other consideration from a third party.

F. This section does not:

Limit the authority of a law enforcement agency to obtain any content or information from an operator as authorized by law or under a court order.
Apply to general audience internet websites, general audience online services, general audience online applications or general audience mobile applications, even if login credentials created for an operator's site, service or application may be used to access those general audience sites, services or applications.
Limit service providers from providing Internet connectivity to schools, students and families.
Prohibit an operator of an internet website, online service, online application or mobile application from marketing educational products directly to parents if the marketing does not result from the use of covered information obtained by the operator by providing services covered under this section.
Impose a duty on a provider of an electronic store, gateway, marketplace or other means of purchasing or downloading software or applications to review or enforce compliance with this section on those applications or software.
Impose a duty on a provider of an interactive computer service to review or enforce compliance with this section by third-party content providers.
Prohibit students from downloading, exporting, transferring, saving or maintaining student data or documents.

G. In addition to any enforcement or regulatory action authorized by state or federal law, a violation of this section constitutes an unlawful practice under section 44-1522, and the attorney general may investigate and take appropriate action under title 44, chapter 10, article 7.

H. A local education agency shall adopt policies regarding the use of technology and the internet while at school. The policy shall include notifying a parent of the adopted policies and the parent's ability to prohibit the student from the use of technology and the internet while at school in which covered information may be shared with an operator. This subsection does not apply to software or technology that is used for the daily operations or administration of a local education agency or Arizona online instruction programs authorized pursuant to section 15-808.

I. For the purposes of this section:

"Covered information" means personally identifiable information or material or information that is linked to personally identifiable information or material, in any medium or format that is not publicly available and that is any of the following:

(a) Created by or provided to an operator by a student or the student's parent or legal guardian in the course of the student's, parent's or legal guardian's use of the operator's site, service or application for school purposes.

(b) Created by or provided to an operator by an employee or agent of a public school for school purposes.

(c) Gathered by an operator through the operation of the operator's site, service or application for school purposes and that personally identifies a student, including information in the student's educational record or e-mail or information relating to the student's first and last name, home address, telephone number, e-mail address or other information that allows physical or online contact, discipline records, test results, special education data, juvenile dependency records, grades, evaluations, criminal records, medical records, health records, social security number, biometric information, disabilities, socioeconomic information, food purchases, political affiliations, religious information, text messages, documents, student identifiers, search activity, photos, voice recordings or geographic information.

"Interactive computer service" has the same meaning prescribed in 47 United States Code section 230.
"Operator" means, to the extent that it is being operated in this capacity, the operator of an internet website, online service, online application or mobile application with actual knowledge that the site, service or application is used primarily for school purposes and was designed and marketed for school purposes.
"School purposes" means purposes that are directed by or customarily take place at the direction of a public school or teacher or that aid in the administration of school activities, including instruction in the classroom, instruction at home, administrative activities and collaboration between students, school personnel or parents, or that are otherwise for the use and benefit of the school.
"Service provider" means a person or entity that provides a service that enables users to access content, information, e-mail or other services offered over the internet or a computer network.
"Targeted advertising" means advertisements that are presented to a student and that are selected based on information obtained or inferred over time from that student's online behavior, usage of applications or covered information. Targeted advertising does not include advertising to a student at an online location based on that student's current visit to that location or in response to that student's request for information or feedback if there is no retention of that student's online activities or requests over time for the purpose of targeting subsequent advertisements.

Article 9 Federal Monies Received by the Department of Education

§ 15-1051 Definition of noncustodial federal monies

In this article, unless the context otherwise requires, "noncustodial federal monies":

Means federal monies that are received by the department of education and that meet at least one of the following criteria:

(a) Are designated by the federal government as block grant monies.

(b) Are designated by the federal government as general revenue sharing monies.

(c) Provide this state with broad authority to make spending decisions regarding the development, implementation or operation of a program or service.

(d) Are considered essential to meet total spending obligations of a federally required or matched program or service authorized by the legislature in which the federal government requires at least one percent of the program or service funding to come from this state.

Does not include federal monies awarded directly to school districts or charter schools.

§ 15-1052 Receipt of federal monies; accounting; report

The department of education shall account for all federal monies it receives in separate accounts or funds as necessary to meet accounting, budgetary and auditing requirements. The department of education may use the most efficient system of accounts and records, consistent with legal requirements and standards and necessary fiscal safeguards. The department of education shall provide a report detailing all federal monies received by the department of education, including differentiating between noncustodial federal monies and all other federal monies and how monies were allocated during each fiscal year. The department of education shall submit the report on or before December 1 of each year to the joint legislative budget committee for review.

Article 1 Revolving Funds; School Plant, Insurance Proceeds, Unemployment Compensation, Civic Center School and Permanent Teacherage Funds

§ 15-1101 Revolving funds; purpose and manner of procuring

A. If the activities of a school district require immediate cash outlays for items including postage, freight, express, fuel taxes, parcel post, travel or other minor disbursements but not including salaries or wages, which are proper as ultimate claims for payment from school district school funds, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply to the county school superintendent to establish and maintain a revolving fund. The allowable amount of the fund shall be fifty cents per student count, except that for a common school district or high school district, at the request of the governing board, or the superintendent or chief administrative officer with the approval of the governing board, the fund may be increased to an amount of five thousand dollars, but in no event shall the amount of the fund be more than ten thousand dollars, and for a unified school district, at the request of the governing board, or the superintendent or chief administrative officer with the approval of the governing board, the fund may be increased to an amount of ten thousand dollars, but in no event shall the amount of the fund be more than twenty thousand dollars. The application shall state the purposes for which the fund is required and the amount deemed necessary and shall designate the particular official of the school district who shall be the custodian of and be charged with the handling and accounting for the fund.

B. The county school superintendent may allow such application, draw a warrant to the order of the designated custodian and charge the amount against the school district fund, but no revolving fund shall be established unless the designated custodian is bonded for an amount equal to twice the amount of the fund. The cost of the bond shall be a proper charge against the school district.

C. The designated custodian shall periodically submit a voucher with supporting papers covering disbursements from the revolving fund to the county school superintendent who shall issue a warrant for the voucher to reimburse the fund. If the school district is dissolved, consolidated, unified or subdivided, or if the governing board, or the superintendent or chief administrative officer with the approval of the governing board, decides to terminate the revolving fund, the designated employee shall return the original amount of the revolving fund to the county treasurer by the date that the dissolution, consolidation, unification or subdivision of the district becomes effective or within thirty days after the date that the governing board decides to terminate the revolving fund, whichever is appropriate.

§ 15-1102 Disposition of proceeds from sale or lease of school property; school plant monies; payment of bonded indebtedness; definition

A. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may expend the proceeds from the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

B. A common school district or a high school district that has an outstanding bonded indebtedness of seven percent of the current year's assessed valuation or less or a unified school district that has an outstanding bonded indebtedness of fourteen percent of the current year's assessed valuation or less may expend the proceeds from the sale or lease of school property as follows:

The total sum of the proceeds from the sale of school property executed before July 1, 2016, for the total sum of the proceeds from the sale of property to a school or the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year:

(a) May be expended for maintenance and operation in an amount that does not exceed fifteen percent of the revenue control limit for that year as provided in section 15-947, subsection A in any year.

(b) May be expended for capital outlay in any amount.

From and after June 30, 2016, proceeds from the sale of school property that exceed one hundred thousand dollars per sales transaction to persons or entities other than schools may not be expended for maintenance and operation and may be expended for capital outlay in any amount.

C. A common school district or a high school district that has an outstanding bonded indebtedness of greater than seven percent of the current year's assessed valuation or a unified school district that has an outstanding bonded indebtedness of greater than fourteen percent of the current year's assessed valuation may expend the proceeds from the lease or sale of school property as follows:

For the total sum of the proceeds from the sale of school property executed before July 1, 2016, for the total sum of the proceeds from the sale of property to a school or for the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year:

(a) Up to twenty-five percent of the sales proceeds may be expended for maintenance and operation in an amount that does not exceed fifteen percent of the revenue control limit for that year as provided in section 15-947, subsection A in any year.

(b) The sales or lease proceeds may be expended for capital outlay in any amount.

From and after June 30, 2016, for proceeds from the sale of school property that exceed one hundred thousand dollars per sales transaction to persons or entities other than schools:

(a) The sales proceeds may not be expended for maintenance and operation.

(b) At least thirty-eight percent of the sales proceeds shall be used for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

(c) The remainder of the sales proceeds that are not obligated pursuant to subdivision (b) of this paragraph may be expended for capital outlay in any amount.

D. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall promptly deposit monies received for and derived from the sale or lease of school property with the county treasurer who shall establish a school plant fund. Monies placed to the credit of the school plant fund may be expended as provided in this section. The school plant fund is a continuing fund that is not subject to reversion.

E. Proceeds from sales by condemnation or sales under threat of condemnation may be deposited with the county treasurer for deposit in the condemnation fund or the school plant fund of the school district. The condemnation fund is a continuing fund that is not subject to reversion, except that after ten years any unspent monies shall be placed in the school plant fund to be used as prescribed in this section. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds in the condemnation fund to:

The payment of any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district.
Construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing.

F. Proceeds from a right-of-way settlement shall be deposited with the county treasurer for deposit in the condemnation fund of the school district. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall apply those proceeds in the condemnation fund to construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing.

G. The restrictions prescribed in subsections B and C of this section do not apply to the proceeds from:

Leases of school property to other schools.
Leases of school property for less than one year.
Sales of school property of less than one hundred thousand dollars per transaction.

H. A lease of school property for less than one year that includes an automatic lease renewal resulting in a total lease duration that exceeds one year is considered a lease for more than one year for the purposes of this section.

I. For the purposes of this section, "capital outlay" means unrestricted capital outlay as prescribed in section 15-903, subsection C.

§ 15-1103 Insurance proceeds fund; disposition of proceeds

A. Monies received for and derived from insurance losses shall be deposited with the county treasurer who shall credit the deposits to the insurance proceeds fund of the respective school district. The insurance proceeds fund of a school district is a continuing fund that is not subject to reversion.

B. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds from insurance recoveries to the payment of any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district.

C. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds of insurance recoveries to construct, acquire, improve, repair or furnish school property after notice. If the proceeds are applied to a project that costs more than two hundred fifty thousand dollars, 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.

§ 15-1104 Unemployment compensation fund

Unemployment compensation monies shall be deposited with the county treasurer who shall credit the deposits to the unemployment compensation fund of the respective school district. The unemployment compensation fund of a school district is a continuing fund not subject to reversion, except that any monies in the fund determined by the governing board, or the superintendent or chief administrative officer with the approval of the governing board, to be in excess of insurance needs shall be used for reduction of school district taxes for the budget year.

§ 15-1105 Lease of school property; immunity; civic center school fund; reversion to school plant fund; definitions

A. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may lease school property, including school buildings, grounds, buses and equipment, to any person, group or organization for any lawful purpose, including recreational, educational, political, economic, artistic, moral, scientific, social, religious or other civic or governmental purpose in the interest of the community, including extended day resource programs. The governing board, superintendent or chief administrative officer shall charge a reasonable use fee for the lease of the school property, which may include goods contributed or services rendered by the person, group or organization to the school district.

B. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may permit the uncompensated use of school buildings, grounds, buses, equipment and other school property by any school related group, including student political organizations, or by any organization whose membership is open to the public and whose activities promote the educational function of the school district as determined in good faith by the school district's governing board, or the superintendent or chief administrative officer with the approval of the governing board, including extended day resource programs, except as provided in section 15-511.

C. A school district and its employees, including the governing board, superintendent or chief administrative officer, are immune from civil liability with respect to all decisions made and actions taken to allow the lease or use of school property, unless the school district or its employees are guilty of gross negligence or intentional misconduct. This subsection does not limit any other immunity provisions that are prescribed by law.

D. A person, group or organization that is otherwise eligible to lease school property shall not be denied use of or charged differentiated fees for school property on the basis of the person's, group's or organization's beliefs, expression of beliefs or exercise of the rights of association that are protected under the laws of this state, the Constitution of Arizona, the laws of the United States or the United States Constitution.

E. The governing board shall annually approve a fee schedule for the lease of school property. The fee schedule shall include a designation of the persons, groups or organizations that shall have uncompensated use of the school property, and a procedure for determining the value of goods and services being provided as compensation for the use of school property. The governing board, superintendent or chief administrative officer shall require proof of liability insurance for such use or lease of school property.

F. Except as provided in section 15-1102, monies received for and derived from the use or lease of school property under this section shall be promptly deposited with the county treasurer who shall credit the deposits to the civic center school fund of the respective school district. Monies placed to the credit of a civic center school fund may be expended for civic center school purposes by warrants drawn upon order of the school district governing board, or the superintendent or chief administrative officer with the approval of the governing board. The civic center school fund of a school district or multiple school district civic center school program is a continuing fund not subject to reversion, except upon termination of a civic center school program. Upon termination of a civic center school program, any remaining funds shall revert to the school plant fund of the school district or districts.

G. For the purposes of this section:

"Educational function" means uses that are directly related to the educational mission of the school district as adopted by the school district governing board and includes parent-teacher organizations, youth organizations and school employee organizations.
"Extended day resource programs" means activities offered on school property before or after school or at times when school is not customarily in session for children who are of the age required for kindergarten programs and grades one through eight. The program may be offered for children who are of the age required for a kindergarten program or for one grade or for any combination of kindergarten programs and grades. Activities may include physical conditioning, tutoring, supervised homework or arts activities.
"Reasonable use fee" means an amount that is at least equal to the school district's cost for utilities, services, supplies or personnel that the school provides to the lessee pursuant to the terms of the lease.

§ 15-1106 Permanent teacherage fund; uses; definition

A. A school district governing board, or the superintendent or chief administrative officer with the approval of the governing board, may establish a permanent teacherage fund. Such fund shall be comprised of proceeds obtained from the lease of teacherages within the school district. Monies in such fund may be used for any of the following purposes:

Maintenance and operation of teacherages.
Debt service related to teacherages.
Purchase of houses, including mobile or modular housing, to be used exclusively as teacherages for school districts located on Indian and federal lands.
Reduction of the local tax levy if accumulation in such fund warrants such use.

B. Monies in a permanent teacherage fund are not subject to reversion.

C. For the purposes of this section, "teacherage" means any housing facilities for teachers and other school employees provided by a school district pursuant to section 15-342, paragraph 6.

§ 15-1107 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 to:

Reimburse the building renewal grant fund established by section 41-5731 or the emergency deficiencies correction fund established by section 41-5721 to the extent that monies were received 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 as described in this paragraph, if applicable.
Pay any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district.
Construct, acquire, improve, repair or furnish school buildings after notice. If the proceeds are applied to a project that costs more than $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.
Replace or repair the school property other than school buildings.

C. If a school district receives monies as provided in subsection A of this section for purposes other than those 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.
For remedial measures reasonably related to a legal controversy or litigation by or against the school district.

D. After all other expenditures authorized under this section, a school district may use monies remaining in the school district's litigation recovery fund for maintenance and operation or unrestricted capital outlay.

§ 15-1108 District services fund

A. A school district governing board may establish district services programs to provide goods or services, excluding services provided pursuant to section 15-213, to district schools or departments or other school districts and may charge users on a cost reimbursement basis. Revenues from the operation of a district services program shall be transmitted to the county treasurer for deposit in a district services fund. The governing board may employ personnel, purchase supplies and equipment and incur other necessary expenses related to the operation of a district services program. Examples of district services programs include printing and duplicating, data processing and motor pool services.

B. A district services fund shall be accounted for as prescribed in the uniform system of financial records pursuant to chapter 2, article 4 of this title. A school district governing board may advance monies from the maintenance and operation fund into the district services fund to cover start-up costs. Monies in the district services fund are not subject to reversion at the end of the fiscal year. The governing board may direct the county treasurer to establish a separate fund pursuant to this section for each district services program.

C. A school or department may choose not to purchase services from a district services program if the school or department determines that it is more advantageous for the school or department to procure the services from another source.

D. The provisions of this section shall not be utilized to replace services provided to a school district by a private enterprise as defined in section 41-2751.

Article 2 Student Activities and Auxiliary Operations Funds

§ 15-1121 Student activities monies defined

All monies raised with the approval of the governing board of a school district by the efforts of students in pursuance of or in connection with all activities of student organizations, clubs, school plays or other student entertainment other than funds specified in sections 15-1125 and 15-1126 are student activities monies.

§ 15-1122 Student activities treasurer; assistant student activities treasurer; administration of student activities monies

A. The governing board of any school district having student activities monies shall establish a student activities fund and appoint a student activities treasurer. The student activities treasurer shall deposit the student activities monies in a bank account designated the student activities account or in an account with the county treasurer pursuant to section 15-996 that is designated as other monies. In school districts that have multiple schools the governing board may designate an assistant student activities treasurer for each school. Each assistant student activities treasurer shall deposit student activities monies in the school district's student activities bank account, in the account with the county treasurer or in student activities bank accounts established separately for each school. Disbursements from the student activities accounts shall be by check, signed by two persons, one of whom shall be either the student activities treasurer or an assistant student activities treasurer and one of whom shall be any other person authorized to sign by the governing board. For school districts that do not assume accounting responsibility pursuant to section 15-914.01, disbursements may be made by county warrants issued pursuant to section 15-304 and designated as other monies. The governing board may appoint more than one person to act as cosigner with the student activities treasurer or assistant student activities treasurer. Any disbursement shall be authorized by or on behalf of the student members of the particular club or organization as provided in the uniform system of financial records. The student activities treasurer and assistant student activities treasurers shall give bonds in an amount determined by the governing board, and the cost of bond premiums shall be a charge against the school district.

B. Accounts showing the balances due the respective student organizations as provided in section 15-1121 shall be kept by the student activities treasurer and assistant student activities treasurers and shall be open to inspection by officers of the student bodies concerned.

§ 15-1123 Record of revenues and expenditures

A. The student activities treasurer or assistant student activities treasurer shall maintain an accurate detailed record of all revenues and expenditures of the student activities fund. The record shall be made in such form as the governing board of the school district prescribes. Copies of the record shall be presented to the governing board of the school district not less than once during each calendar month.

B. Student activities fund monies may be invested and reinvested by the governing board of a school district. All monies earned by investment shall be credited to the student activities fund of the school district.

§ 15-1124 Student activities revolving fund for expenses

The governing board of a school district may, by resolution entered upon its minutes, establish a revolving fund for the purpose of meeting necessary current expenses connected with student activities as defined by this article. The amount of the revolving fund shall be determined by the governing board which establishes the fund and provision for its establishment shall be included in the budget. The amount of monies provided in the revolving fund shall, at the end of each fiscal school year, be returned to the credit of the school district and the fund reestablished as provided in this section.

§ 15-1125 Auxiliary operations fund defined

The auxiliary operations fund shall consist of all monies raised with the approval of the school district governing board in pursuance of and in connection with all activities of school bookstores and athletic activities.

§ 15-1126 Accounting; deposit; disposition of monies

A. Auxiliary operations fund monies shall be accounted for in accordance with the requirements of the uniform system of financial records.

B. Auxiliary operations fund monies shall be deposited after authorization by the governing board in a bank account designated as the auxiliary operations fund or in an account with the county treasurer pursuant to section 15-996 that is designated as other monies. Disbursements from the fund shall be authorized by the governing board. Disbursements shall be made by check signed by two employees of the school district designated by the governing board. For school districts that do not assume accounting responsibility pursuant to section 15-914.01, disbursements may be made by county warrants issued pursuant to section 15-304 and designated as other monies. Persons authorized by the governing board to sign checks shall give a bond in an amount determined by the governing board, and the cost of bond premiums may be a charge against the fund.

C. Auxiliary operations fund monies may be invested and reinvested by the governing board of a school district. All monies earned by investment shall be credited to the auxiliary operations fund of the school district.

D. The governing board may establish an imprest petty cash fund at each school within the school district for activities that require immediate cash outlays for postage, freight, express, parcel post, travel or other minor disbursements, but not including salaries or wages, and that are proper as ultimate expenditures from the school district auxiliary operations fund. Imprest petty cash funds established by the governing board shall be funded from the school district auxiliary operations fund in an amount to be determined by the governing board.

E. The governing board may establish a revolving fund bank account for each school within the school district for necessary current expenditures in connection with school bookstore and athletic activities. The revolving funds shall be funded from the auxiliary operations fund in an amount to be determined by the governing board. The school shall return the monies in the revolving fund bank account at the end of each fiscal year to the credit of the school district auxiliary operations fund.

Article 3 Community School Program Fund

§ 15-1141 Definitions

In this article, unless the context otherwise requires:

"Community school" means any school engaged in a community school program.
"Community school monies" means monies received as fees, tuitions, grants or donations from any person or agency for a community school program.
"Community school program" means the involvement of people in the development of an educationally oriented community. The community school serves the purposes of academic and skill development for all citizens, furnishes supervised recreational and avocational instruction, supplies remedial and supplemental education, furnishes meeting places for community groups and provides facilities for the dissemination of a variety of community related services, including extended day resource programs as defined in section 15-1105.

§ 15-1142 Powers of the governing board

The governing board of any school district may:

Establish and operate a community school program in any school in its school district.
Budget and expend from the maintenance and operation section of the budget, as defined in section 15-903, to employ a qualified director necessary for each school or combination of schools engaged in community school programs.
Expend community school monies for operation of a community school program.
Establish tuition and fee charges for community school programs.

§ 15-1143 Community school program fund

Monies deposited in a community school fund of a school district may be used for community school programs only and are not subject to reversion, except upon termination of a community school program. Upon termination of a community school program any remaining funds shall revert to the operating budget of the school district.

Article 4 School Lunch Program Fund

§ 15-1151 Definition of school meal programs

In this article, unless the context otherwise requires, "school meal programs" means programs under which meals are served by a public or private school on a nonprofit basis to children in attendance, including a program under which federal assistance is received.

§ 15-1152 School meal programs; nonschool meal programs; powers of state board of education

The state board of education may enter into agreements with an agency of the federal government, a governing board or another agency or person, direct the disbursement of federal and state monies in accordance with federal and state law, direct the distribution of commodities as provided by federal and state law, prescribe regulations, employ personnel, give technical advice and assistance to governing boards in connection with establishment and operation of school meal programs, assist in training personnel engaged in operation of school meal programs and take other action it deems necessary to provide for the establishment and maintenance of school meal programs. The state board of education and the governing boards may also accept gifts for use in connection with a school meal program. Agreements entered into pursuant to this section are exempt from section 11-952, subsection D. The form to be used in the agreements shall be approved annually by the attorney general before its use in such agreements. The department of education shall file with the secretary of state by January 1 one blank copy of the agreement form and a list of the agencies with which the department entered agreements during the preceding year.

§ 15-1153 Federal funds; acceptance; disbursement

A. The state board of education may accept and direct the disbursement of funds appropriated by act of Congress and apportioned to the state for use in connection with school meal programs. The state board shall deposit, pursuant to sections 35-146 and 35-147, such funds in the school meal program fund. Disbursements from the fund shall be made in accordance with the provisions of section 35-185.

B. Notwithstanding any provision of title 35, chapter 1 limiting the drawing of warrants after the expiration of the fiscal year in which an obligation is incurred, the state board of education may accept and direct the allocation of federal funds apportioned to the state for use in connection with school meal programs, which are received and the allocation effected not later than six months after expiration of the fiscal year for which the allocation is made.

§ 15-1154 Operation of school meal programs by governing boards; school meal program fund; revolving fund

A. A governing board may operate school meal programs, and for that purpose may employ personnel, purchase equipment and food and incur other necessary expenses, making payment therefor through the use of gifts or donations, proceeds of sales of school meals, contributions made available by the federal government or monies obtained by school district levy, but no monies acquired by the levy of state, county or school district taxes shall be expended for food.

B. Any monies received in the operation of a school district school meal program shall be deposited with the county treasurer who shall credit the deposits to the school meal program fund of the respective school district. Monies deposited to the credit of a school meal program fund may be withdrawn by voucher as approved by the governing board for operation of the school district school meal program, except that a revolving fund of five hundred dollars may be established in the manner and for the purposes prescribed in subsection C of this section. The school meal program fund of a school district is a continuing fund not subject to reversion.

C. The governing board of any school district with the consent of the county school superintendent may establish for the operation of school meal programs a revolving fund of five hundred dollars which may be used for payment of freight on commodities, purchase of food required in emergencies, employment of temporary personnel for employment which does not exceed eight hours for any person or other minor disbursements. The revolving fund monies shall be deposited in a federal reserve bank in a designated account and shall be withdrawn by check signed by two bonded employees appointed by the governing board of the school district.

D. Upon approval of a revolving fund as prescribed by subsection C of this section, the county school superintendent shall draw a warrant to the order of the designated employees and charge the amount thereof against the school district school meal program fund, but no revolving fund shall be established unless the designated employees are bonded for an amount equal to twice the amount of the fund. The cost of the bond shall be a proper charge against the school district school meal program fund.

E. The designated employees shall periodically submit a voucher with supporting papers covering disbursements from the school meal revolving fund prescribed by subsection C of this section to the county school superintendent who shall issue a warrant for the voucher to reimburse the fund. If the school district is dissolved, consolidated, unified or subdivided, or if the governing board decides to terminate the revolving fund, the designated employees shall return the original amount of the revolving fund to the county treasurer by the date that the dissolution, consolidation, unification or subdivision becomes effective or within thirty days after the date that the governing board decides to terminate the revolving fund, whichever is appropriate, for deposit in the school meal program fund of the respective school district.

§ 15-1155 Records, reports, regulations, audits and inspections by state board of education

The state board of education shall prescribe regulations for keeping accounts and records and making reports, under the supervision of governing boards. The accounts and records shall be available at all times for inspection and audit by authorized officials and shall be preserved for a period, not exceeding five years, as prescribed by the state board. The state board shall conduct or cause to be conducted audits, inspections and administrative reviews of accounts, records and operations as are necessary to determine whether the school meal programs are being administered according to the provisions of this article and the regulations made by the state board.

§ 15-1157 Inclusion of expenses in budget of superintendent of public instruction

There shall be included in the budget of the superintendent of public instruction, for presentation to the legislature, such amounts as required by the state board of education for and limited to the administration of this article, including the establishment, maintenance, operation and expansion of school meal programs.

§ 15-1158 Agreements for meals for persons sixty years of age or older

A. The governing board of any school district may enter into an agreement with any individual, firm, partnership, corporation, association or public agency whereby the school district agrees to prepare meals for persons sixty years of age or older and their spouses, or any group of such persons, by utilizing the systems and procedures already developed for use in the school meal programs of such school district.

B. An agreement entered into by a governing board of a school district, pursuant to the provisions of this section, shall not:

Involve the expenditure by the school district of any federal or state school meal monies or other school monies or the use of any school meal commodities or school district personnel, equipment or facilities unless the agreement includes a provision requiring full reimbursement for such expenditure.
Provide for payment to the school district of any amount in excess of the estimated cost of food, personnel, equipment, facilities and other necessary expenditures involved in the performance of the agreement.
Permit any program of meals for persons sixty years of age or older and their spouses to interfere in any way with the use of school meal facilities for school purposes.

C. The department of education may cooperate with any individual, firm, partnership, corporation, association or public agency in the planning of programs whereby school districts may prepare meals for persons sixty years of age or older and their spouses, or any group of such persons, by utilizing the systems and procedures already developed for use in the operation of school meal programs.

D. The department of education shall adopt regulations containing guidelines for governing boards of school districts entering into such agreements.

Article 5 Arizona Youth Farm Loan Fund

§ 15-1171 Trust assets of Arizona rural rehabilitation corporation; transfer to state board of education

The state board of education is designated as the state agency empowered to make application to the secretary of agriculture of the United States, or any other proper federal official, pursuant and subject to the provisions of act of May 3, 1950 (P.L. 81-499; 40 U.S.C. sec. 440 et seq.) for the trust assets, either funds or property, held by the United States as trustee on behalf of the Arizona rural rehabilitation corporation.

§ 15-1172 Arizona youth farm loan fund

Notwithstanding any other law, funds and the proceeds of the trust assets shall be received by the state board of education and shall be deposited, pursuant to sections 35-146 and 35-147, in a special fund to be known as the Arizona youth farm loan fund that is maintained as a revolving fund and that is appropriated for continuing expenditure or obligation as provided by this article.

§ 15-1173 Use of funds

A. Except as provided in subsection C of this section, monies in the Arizona youth farm loan fund may be used only for such of the rural rehabilitation purposes as are permissible under the Arizona rural rehabilitation corporation's charter as it appeared during the calendar year 1960 and as may from time to time be agreed upon by the state board of education and the secretary of agriculture of the United States or his delegate, including but not limited to furnishing financial assistance to deserving young persons under twenty-five years of age who are students or former students of vocational agriculture or young farmers in organized vocational agriculture classes in becoming satisfactorily established in farming through guaranteed loans, if they cannot obtain needed financing elsewhere on reasonable rates and terms.

B. Administrative expenses of carrying out the provisions of this article, including but not limited to salaries, capital outlay, professional services, travel and current expenditures, shall be paid from annual appropriations made by the legislature to the state board of education, and no part of the trust funds as provided by subsection A of this section may be used for any purpose not expressly listed in subsection A or C of this section.

C. On notice from the state board of vocational education, 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 fund.

§ 15-1174 Powers and duties

The state board of education on behalf of the state of Arizona is authorized and empowered to:

Collect, compromise, adjust or cancel claims and obligations arising out of or administered under this article or under any mortgage, lease, contract or other agreement entered into or administered pursuant to this article and, if in its judgment necessary and advisable, pursue the same to final collection in any court having jurisdiction.
Bid for and purchase at any execution, foreclosure or other sale, or otherwise to acquire, property upon which the state board has a lien by reason of a judgment or execution, or which is pledged, mortgaged or conveyed or which otherwise secures any loan or other indebtedness owing to or acquired by the state board under this article.
Accept title to any property so purchased or acquired, to operate or lease such property for such period as may be deemed necessary to protect the investment therein and to sell or otherwise dispose of such property in a manner consistent with the provisions of this article.

§ 15-1175 Liability

The United States, and the secretary of agriculture thereof, shall be held free from liability by virtue of the transfer of the assets to the state board of education pursuant to this article.

Article 6 Education Voucher Fund for Private Placement

§ 15-1181 Definitions

In this article, unless the context otherwise requires:

"Child" means a person who is at least three years of age by September 1 of the current year but who is under twenty-two years of age.
"Foster parent" means a person who may serve as the parent of a child with disabilities if that person has an ongoing, long-term parental relationship with the child, is willing to make educational decisions for the child and has no personal interest that would conflict with the interests of the child.
"Fund" means the special education fund.
"Home school district" has the same meaning prescribed in section 15-761.
"Individualized education program" has the same meaning prescribed in section 15-761.
"Parent" means the natural or adoptive parent of a child, the legal guardian of a child, a relative with whom a child resides and who is acting as the parent of that child or a surrogate parent who has been appointed for a child pursuant to section 15-763.01. Parent does not mean this state if the child is a ward of the state.
"Place" or "placement" means placement of a child in a private residential facility for residential special education placement as defined in section 15-761 or by a state placing agency for care, safety or treatment reasons.
"Private residential facility" means a private facility that is licensed by the department of economic security or department of health services and to which one of the following also applies:

(a) For special education placements, the facility has been approved by the division of special education pursuant to section 15-765 for the purpose of providing special education and related services.

(b) For other than special education placements, the facility has been accredited by the north central association of colleges and secondary schools, except that private facilities applying for initial approval as a private school are not required to receive accreditation until three years after the date of initial approval as long as continual progress toward accreditation is maintained.

"Related services" means related services as defined in section 15-761.
"Residential special education placement" has the same meaning prescribed in section 15-761.
"Special education" has the same meaning prescribed in section 15-761.
"State placing agency" means the department of juvenile corrections, the department of economic security, the department of child safety, the Arizona health care cost containment system or the administrative office of the court.

§ 15-1182 Special education fund; administration

A. There is established a special education fund, which shall consist of legislative appropriations made to the fund for purposes of this section and section 15-1202.

B. The fund shall be administered by the superintendent of public instruction for the purposes provided in this article and article 7 of this chapter.

C. Each fiscal year the state board of education shall include in its budget request for assistance to schools a separate line item for the fund.

D. The fund shall provide monies for the education of a child who has been placed in a residential facility by a state placing agency or who requires a residential special education placement as defined in section 15-761.

E. If a child has been placed in a residential facility by a state placing agency, the fund shall provide monies for the following types of vouchers:

Initial residential education vouchers to fund the educational costs for any child, whether or not eligible for special education. This paragraph applies to a child who has been placed in a residential facility and who has either not received a comprehensive education evaluation as provided in section 15-766, who has previously received such an evaluation and was determined to be ineligible for special education services or who is eligible for special education and for whom necessary procedures for changing the child's educational placement must be completed. This voucher expires on the expiration of sixty calendar days or completion of the educational evaluation or review of special education placement, whichever occurs first.
Continuing residential education vouchers that fund the educational costs for any child, whether or not eligible for special education, who requires placement in a residential facility after the expiration of the initial education voucher and who is not eligible for a residential special education voucher.

F. When a school district makes a residential special education placement, the fund shall provide monies to fund the residential special education placement.

G. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Any monies left unexpended may be distributed to school districts by the department of education for the following purposes:

To provide educational counseling, training and support services to a child with a disability in order to maintain the child's educational placement in the least restrictive environment.
To provide educational transition assistance to children who return to their home after placement in a residential facility.
To train personnel for and develop and implement model programs for use by school districts to serve children with emotional disabilities.

H. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for the purposes of this article shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This article shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

§ 15-1183 Placement; voucher application requirements

A. A voucher may not be issued pursuant to this article and a residential special education placement may not be made in a private residential placement facility unless the requirements of section 15-765, subsection G have been met.

B. If a state placing agency places a child in a private residential facility for care, safety or treatment reasons, the state placing agency is responsible for requesting an initial residential education voucher and notifying the home school district of the placement. The home school district is responsible for completing screening or other identification procedures for determining if the child is a child with a disability as defined in section 15-761 and for reviewing the placement of a child with a disability to determine whether a residential special education placement is necessary. Responsibility for monitoring the educational services during the time a child is placed in the residential facility and for planning for transition from the private residential facility to a public school remains with the home school district.

C. An initial residential education voucher may be extended for good cause, as determined by the director of the division of special education, on application by the home school district. If an extension is denied or a home district fails to complete the requirements for a continuing residential education voucher, the home school district is responsible for payment of educational costs until the requirements of subsection B of this section have been met.

D. In order to receive a continuing residential education voucher, an evaluation pursuant to section 15-766 must be conducted and the following must occur:

The home school district shall provide prior written notice to the parent indicating that the child is or is not eligible for special education and shall submit to the department of education a copy of the prior written notice, the evaluation from which the eligibility decision is made and, if the child is eligible for special education but does not require residential special education placement, a copy of the individualized education program indicating the special education to be provided while the child is placed in the residential facility. If the child requires a residential special education placement, section 15-765, subsection G applies.
On receipt from the home school district of the documentation specified in paragraph 1, the department of education shall convert the initial residential education voucher to a continuing residential education voucher that is valid for no longer than the remainder of the school year during which it is issued.

§ 15-1184 Vouchers; requirements; budgets; prohibited uses

A. The director of the division of special education shall develop requirements for the approval of vouchers, as provided in this section, including the following:

For a special education residential placement voucher, documentation that the requirements of section 15-765 have been met.
For an initial residential education voucher, documentation that the requirements of section 15-1183, subsection B have been met.
For a continuing residential education voucher, documentation that the requirements of section 15-1183, subsection C have been met.

B. The home school district shall consider recommendations from the state placing agency when determining whether the child should be placed solely in the private residential facility or should be placed for part of the school day in a school operated by a school district as provided in section 15-1185.

C. The private residential facility must demonstrate that previously received voucher monies were spent appropriately.

D. If approved, the appropriate voucher shall be issued in an amount not exceeding the sum of the following and shall be paid directly to the private residential facility in a manner prescribed by the superintendent of public instruction:

For group A and for placements not requiring special education services, the base level multiplied by two.
For group B, the sum of the support level weight as provided in section 15-943, paragraph 2, subdivision (a) for kindergarten programs through grade eight or for grades nine through twelve, whichever is appropriate, and the support level weight for the category, multiplied by the base level.
For both group A and group B, two hundred forty dollars for capital outlay costs or related services and fifty dollars for transportation or related services costs. Beginning with fiscal year 1991-1992, the amounts provided in this paragraph for capital outlay and transportation are increased by the growth rate prescribed by law, subject to appropriation.

E. When an initial residential education voucher expires the funding for the initial residential education voucher shall be paid directly to the private facility from the date of initial placement until the date on which the voucher expires pursuant to section 15-1183.

F. For the purpose of this article, the chief official of each state placing agency and the superintendent of public instruction shall jointly prescribe a uniform budgeting format to be submitted by each private institution and to be used in determining instructional costs and residential costs of persons placed.

G. Any residential special education placement or residential education voucher issued pursuant to this article shall not be used in any private residential facility that discriminates on the basis of race, religion, creed, color, national origin or disability.

H. Voucher monies shall only be spent to provide education and related services to children placed as provided in this article. The state board of education may withhold funding from an institution for noncompliance with any applicable statute or any applicable rule adopted by the state board.

I. The individualized education program for any child requiring a residential special education placement must include exit criteria that indicate when the educational placement of the child shall be reviewed in order to determine whether the child can be moved to a less restrictive placement.

§ 15-1185 School district responsibility; integration into a school

A. For a child who is placed in a private residential facility pursuant to this article, the home school district is responsible for reviewing the child's educational progress and planning for integrating the child into a public school when it is educationally appropriate.

B. The private residential facility and the state placing agency shall work with the home school district for purposes of integrating the child into a public school when it is educationally appropriate.

C. If a child who has been placed in a private residential facility for care, safety or treatment reasons attends a public school in other than the home school district on either a part-time or full-time basis, the residential education voucher terminates and the following apply:

The school district of attendance must apply for a certificate of educational convenience as provided in section 15-825, subsection B.
If the child attends school in the residential facility on a part-time basis, the school district of attendance must apply for a certificate of educational convenience and either provide direct services in the residential facility or contract with the residential facility for that portion of educational services that the private residential facility is to provide.

D. If a child who requires residential special education placement is placed outside of the home school district and is able to attend a nonresidential school on a part-time basis, the residential special education placement voucher terminates. The school district of attendance shall apply for a certificate of educational convenience and pay a prorated tuition amount to the private residential facility.

Article 7 Special Education Voucher Fund for State Institutional Placement

§ 15-1201 Definitions

In this article, unless the context otherwise requires:

"Fund" means the special education fund established by section 15-1182.
"Institution" means the Arizona state schools for the deaf and the blind, the Arizona training program facilities as provided in section 36-551 and the Arizona state hospital.
"Place" or "placement" means placement of a person in an institution, as defined in this section, for special education only or for special education and residential and custodial care.
"Special education" means the adjustment of the environmental factors, modification of the course of study and adaptation of teaching methods, materials and techniques to provide educationally for those children who are at least three but not more than twenty-one years of age and who are gifted or have a disability to such an extent that they do not profit from the regular course of study or need special education services in order to profit. Difficulty in writing, speaking or understanding the English language due to an environmental background in which a language other than English is spoken primarily or exclusively shall not be considered a sufficient handicap to require special education.

§ 15-1202 Special education fund account; administration; expenditure limitation

A. There is established a separate account within the fund which shall consist of legislative appropriations to the account for special education institutional vouchers.

B. The account shall be administered by the superintendent of public instruction for the purposes provided in this article.

C. Each fiscal year the state board of education shall include in its budget request for assistance to schools a separate line item for the account.

D. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for the purposes of this article shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This article shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

§ 15-1203 Placement; requirements

A. No child may be placed for the purpose of special education in an institution unless the institution has applied for and had issued a voucher pursuant to this article. Initial approval for placement shall be given when evaluation information, a copy of the individualized education program and placement documentation are provided to the special education section of the department of education. These documents shall be maintained by the school district or charter school and the receiving institution.

B. A school district may make an interim placement of an eligible child in an institution pursuant to an interim individualized education program. For purposes of this subsection, "interim placement" means placement of a child in an institution for a period of time not to exceed sixty days for the purpose of completing an educational evaluation as required by section 15-766 and making a specific placement.

C. No child who is a resident of an institution may be placed in a school special education program unless the school has applied for and had issued a special education institutional voucher pursuant to this article.

§ 15-1204 Voucher; application; approval; requirements; budgets; prohibited uses; advances

A. When an institution decides to place a person in an institutional special education program, the institution, upon application to and approval by the division of special education, shall have a permanent special education institutional voucher issued pursuant to this article to pay the special education instructional costs of the person at the institution.

B. When an institution decides to place a person who resides in the institution in a school special education program, the school, upon application to and approval by the division of special education, shall have a permanent special education institutional voucher issued pursuant to this article to pay the special education instructional costs of the person in the school.

C. No person residing in an institution and attending a school may have a certificate of educational convenience issued pursuant to section 15-825, subsection A.

D. The director of the division of special education shall develop requirements for the approval of vouchers, pursuant to this section, including the requirement that the person be educationally evaluated.

E. If approved, the voucher, in an amount not exceeding the sum of the following, shall be paid directly to the institution or deposited with the county treasurer to the credit of the school, with notice to the county school superintendent:

For group A, the base level multiplied by two.
For group B, the sum of the base for kindergarten through eight and the support level weight for the category, multiplied by the base level.
For both group A and group B, one hundred dollars for capital outlay costs and fifty dollars for transportation costs.

F. The budget format developed cooperatively between the department of child safety and the department of education pursuant to section 8-503 shall be used by the institutions to determine and segregate residential costs from educational instructional costs.

G. If sufficient appropriated monies are available and upon a showing by an institution that additional state monies are necessary for current expenses, an advance apportionment of state aid may be paid to an institution. In no event shall an institution have received more than three-fourths of its total apportionment under this section before May 1 of the fiscal year. Early payments pursuant to this subsection must be approved by the state treasurer, the director of the department of administration and the superintendent of public instruction.

H. Notwithstanding subsection G of this section, when making the April payment to an institution, the department of education may include an additional amount based on an estimate of monies payable to the institution in May. Before the department of education apportions monies to the institution in June, it shall adjust the June payment to account for any discrepancies between the monies actually paid in April and May and the amount which should have been paid. If an overpayment in May exceeds the total amount payable in June, the institution shall refund to the department of education an amount equal to the overpayment within sixty days of notification of the overpayment. If the overpayment is not refunded within sixty days by the institution, the superintendent of public instruction shall reduce the state aid entitlement to the institution for the succeeding fiscal year to recover any overpayment of state aid received during the current fiscal year.

I. Any special education institutional voucher issued pursuant to this article shall not be used in any school or institution that discriminates on the basis of race, religion, creed, color or national origin.

J. The state board of education may withhold state aid from an institution for noncompliance with any applicable statute or any applicable rule adopted by the state board.

§ 15-1205 Voucher; evaluation; placement; definition

A. An application for a voucher pursuant to this article shall not be approved unless the child has been educationally evaluated and recommended for placement in accordance, as nearly as practicable, with the conditions and standards prescribed by the superintendent of public instruction pursuant to rules of the state board of education.

B. In determining the recommendation for placement the chief official of the institution shall consult at a minimum with the following:

The parent, as defined in section 15-761 of the child recommended for placement.
The person performing the educational evaluation pursuant to this section.
A special educator who is certified in an area related to the child's disability.

C. The placing agency may sign a voucher application for submission to the department of education.

D. Nothing in this article shall be construed to prevent a child who has not been educationally evaluated from being placed in an institution if such placement is for the purpose of residential and custodial care only and not for educational reasons. The institutional voucher shall not be paid for such placements.

E. For the purposes of this section, "educationally evaluated" means an evaluation pursuant to section 15-766.

Article 8 Governing Board Bank Accounts

§ 15-1221 Bank account; federal savings bonds; withholdings; vendor electronic payments; payroll direct deposit

A. The governing board may establish a bank account for the purpose of depositing the monies it withholds for each employee for payments under federal savings bond plans until the employee accumulates sufficient monies for the purchase of bonds under the plan. The governing board may make disbursements from the bank account only by check payable to the financial institution in which the monies are deposited for the purchase of bonds by the employee from the financial institution. The bank account may be interest-bearing, and the governing board shall transfer any interest at the end of the fiscal year to the county treasurer for credit to the maintenance and operation fund of the school district.

B. The governing board may establish a bank account for the purpose of making electronic payments to vendors. The account may be a revolving account, funded by the school district by a warrant requested from the county school superintendent and drawn on the county treasurer for an amount equal to the vendor's payment amount. The account may be an interest bearing account. The account shall be a clearing account maintaining a zero balance and shall not accumulate funds except for any account interest balances. The district governing board shall transfer any interest at the end of the fiscal year to the county treasurer for credit to the maintenance and operation fund of the school district.

C. The governing board of a school service program established pursuant to section 15-365 may establish a bank account for the purpose of making electronic payments to vendors. The account may be a revolving account, funded by the school service program by a warrant requested from the county school superintendent and drawn on the county treasurer for an amount equal to the vendor's payment amount. The account may be an interest bearing account. The account shall be a clearing account maintaining a zero balance and shall not accumulate funds except for any account interest balances.

D. The governing board may establish a bank account for the purpose of making payroll direct deposit payments to financial institutions designated by school district employees. The account shall be funded by the school district with warrants requested from the county school superintendent and drawn by the county treasurer for an amount equal to the payroll direct deposit payment. The account shall be a clearing account that maintains a zero balance and that does not accumulate monies except for interest earned on the account. The school district governing board shall transfer any interest earned on the account at the end of the fiscal year to the county treasurer who shall credit a corresponding amount to the maintenance and operation fund of the school district.

E. The auditor general in conjunction with the department of education shall prescribe the procedures for accounting for the monies withheld pursuant to this section in the uniform system of financial records.

§ 15-1222 Bank account; employee income tax; withholdings

A. The governing board of a school district may establish a bank account for the purpose of depositing the monies it withholds for each employee for application toward the employee's state income tax liability until the governing board must pay the monies to the department of revenue as provided in section 43-401. The governing board may make disbursements from the bank account only by check payable to the department of revenue. The bank account may be interest-bearing, and the governing board shall transfer any interest at the end of the fiscal year to the county treasurer for credit to the maintenance and operation fund of the school district.

B. The auditor general in conjunction with the state board of education shall prescribe the procedures for accounting for the monies withheld pursuant to this section in the uniform system of financial records.

§ 15-1223 Bank accounts; employee insurance; interest; accounting procedures

A. The governing board of a school district may establish bank accounts in which to deposit the monies it withholds for employee insurance programs, the monies contributed by the district for employee insurance programs and the monies received from former employees, board members, former board members and surviving spouses and dependents of board members or former board members for the insurance programs. The governing board may disburse monies from the bank accounts only by check payable to the insurance carriers or to make refunds of insurance to individuals.

B. The bank accounts may be interest-bearing, and the governing board shall transfer any interest at the end of the fiscal year to the county treasurer for credit to the maintenance and operation fund of the school district.

C. The auditor general in conjunction with the department of education shall prescribe the procedures for accounting for monies pursuant to this section in the uniform system of financial records.

§ 15-1224 Grants to teachers for instruction

A. The governing board shall deposit in a separate bank account grants or gifts that are less than one thousand five hundred dollars and designated for use by a teacher for instructional purposes if the governing board does not deposit the grant or gift as prescribed in section 15-341, subsection A, paragraph 14.

B. A separate record shall be maintained for each grant or gift deposited in the bank account.

C. Disbursements from the bank account shall be by check signed by two employees of the school district appointed by the governing board and shall be authorized by the teacher designated to use the grant or gift as provided in the uniform system of financial records.

D. If any of the monies are not spent before the end of the fiscal year in which the gift or grant was accepted, the balance of the monies shall remain in the bank account until needed for instructional purposes as designated by the teacher, or determined by the grantor.

§ 15-1225 Postemployment benefits; trust accounts; actuarial report

A. If the governing board offers postemployment benefits to school district employees or to spouses and dependents of school district employees, or both, monies to fund these benefits may be deposited in an other postemployment benefits fund or an other postemployment benefits trust account, or both. Additional monies shall not be legislatively appropriated specifically to provide any postemployment benefits offered by a governing board.

B. An other postemployment benefits fund is a cash controlled fund as provided in section 15-905, subsection N. The monies in the other postemployment benefits fund are not subject to reversion, except that at the end of five years of no activity in the fund, any remaining monies shall revert to the maintenance and operations fund.

C. An other postemployment benefits trust account established pursuant to subsection A of this section shall meet all of the following conditions:

Contributions made by the school district into the trust account are irrevocable.
The assets of the trust account shall be dedicated to providing benefits to school district retirees and their beneficiaries in accordance with the terms of the postemployment benefits plan.
Trust assets shall be legally protected from creditors of the school district or the investment manager pursuant to subsection F of this section.

D. Current or prior year postemployment benefits liabilities may be paid from any school district fund from which a school district may pay employee benefits into the other postemployment benefits fund or trust account. Payments for current or prior year liabilities paid into the other postemployment benefits fund or trust account shall be treated as an expenditure from the originating school district fund.

E. The following expenditures may be made from an other postemployment benefits fund or an other postemployment benefits trust account:

Administrative and management costs.
Payment of benefits.

F. An investment manager for an other postemployment benefits trust account established pursuant to subsection A of this section shall be either:

A qualified investment manager appointed by the district governing board.
The manager of a public agency pool established pursuant to section 11-952.01.

G. The investment manager for an other postemployment benefits trust account may invest and reinvest the monies in the account and may hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of the trust account monies are invested. The investment manager shall invest the monies in the trust account in the same manner as the monies in the permanent state land fund pursuant to section 35-314.01, except that not more than thirty per cent of the monies in the trust account may be invested in equity securities at any time. The percentage of investment shall be calculated at cost.

H. If applicable, each school district shall submit on or before September 1, 2009 to the joint legislative budget committee the most recent actuarial study of the school district's existing other postemployment benefits offered by the school district and any prospective other postemployment benefits contemplated to be offered by the school district, including an analysis of defined contribution plans and defined benefits plans if appropriate and if the defined contribution or defined benefit plans are used to administer any other postemployment benefit. Each time a school district conducts a new actuarial study of the school district's existing or prospective other postemployment benefits, the school district shall submit the new study to the joint legislative budget committee within thirty days of the completion of the study.

I. For the purposes of this section, postemployment benefits do not include benefits provided by the Arizona state retirement system.

Article 9 Career and Technical Education Projects Fund

§ 15-1231 Career and technical education projects fund; use of monies; requirements

A. The governing board of a school district may establish a permanent career and technical education projects fund in an amount of not more than $100,000. The fund consists of proceeds from the sale of items produced or services provided by career and technical education programs. Monies in the fund may be used for any of the following purposes:

Purchasing materials for use by career and technical education pupils in an instructional program that produces a product or provides a service that may be sold by the school district.
Purchasing equipment or services for use by career and technical education pupils in an instructional program that produces a product or provides a service that may be sold by the school district.
Paying expenses directly related to planning and designing career and technical education program products or services.
Paying expenses related to an approved department of education career and technical student organization, including costs associated with events, conferences or competitions.

B. Monies in the career and technical education projects fund may not be used to pay salaries, wages or employee fringe benefits.

C. All purchases made from the career and technical education projects fund must comply with chapter 2, article 1 of this title, including all provisions relating to procurement practices.

D. The career and technical education projects fund of a school district is a continuing fund, and monies in the career and technical education projects fund are not subject to reversion, except that all monies in the career and technical education projects fund that exceed $100,000 at the end of the fiscal year revert to the school maintenance and operation fund.

Article 10 Academic Contests Fund

§ 15-1241 Academic contests fund; state board of education powers and duties; distribution of monies

A. The state board of education shall establish an academic contests fund consisting of monies appropriated by the legislature or received by the state board as provided in subsection D of this section.

B. The state board of education shall prescribe rules for the distribution of fund monies to school districts and charter schools for the purpose of sending pupils who are state level winners of academic contests and their chaperons to the national levels of these contests so that the pupils may represent this state.

C. The criteria on which the state board shall base its rules for the distribution of fund monies shall include at least the following:

The contests must be academic in nature and motivate pupils to be creative and to demonstrate excellence.
Contests must be sponsored by a recognized national organization.
Contests must be open to all pupils, regardless of race, creed, gender or national origin, except that a contest may separate pupils by age or grade level.
The opportunity to compete at the national level must be the result of successfully competing at the local or state level, or both, of that contest.

D. The state board of education may accept gifts or grants of monies for deposit in the academic contests fund as provided in this section.

E. A school district which receives monies as provided in this section shall include the monies in the special projects section of the budget as provided in section 15-903, subsection F.

Article 11 State Block Grant for Early Childhood Education Program

§ 15-1251 State block grant for early childhood education; evaluation

A. The state block grant for early childhood education program is established in the state board of education. The purpose of the program is to promote improved pupil achievement by providing flexible supplemental funding for early childhood programs, including preschool programs for economically disadvantaged children, and programs that serve all public school pupils statewide who are in kindergarten programs and grades one, two and three.

B. Funding for the program for each fiscal year shall be allocated based on the number of pupils in kindergarten programs and grades one, two and three in each charter school or school district who were eligible for free lunches during the prior fiscal year under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785). Any charter school or school district that did not determine for the prior fiscal year if its pupils in kindergarten programs and grades one, two and three were eligible for free lunches under the national school lunch and child nutrition acts shall receive funding for the program in the current fiscal year based on the number of its pupils in kindergarten programs and grades one, two and three who would have been eligible for free lunches in the prior fiscal year according to the statewide kindergarten programs and grades one, two and three eligibility average for all school districts and charter schools collectively for the prior fiscal year. Notwithstanding this section, a school district or charter school with an average daily membership of more than six hundred pupils in kindergarten programs and grades one, two and three in the prior fiscal year shall have participated in the national school lunch and child nutrition acts free lunches program in the prior fiscal year to be eligible for program funding in the current fiscal year.

C. A school district or charter school that devotes part or all of its program funding to preschool programs shall comply with all of the following requirements:

Restrict the preschool program only to preschool children eligible for free or reduced price lunches under the national school lunch and child nutrition acts.
Allow participating pupils to receive preschool services only from a public, federally funded or private child care provider, each of which shall be licensed by the department of health services and each of which, beginning in fiscal year 1999-2000, also shall be accredited by a state board of education approved organization that provides accreditation for preschool programs.
Provide all federally funded or private child care providers located within the school district or within ten miles of the charter school with information necessary for them to participate in the program, including names and addresses of children selected for participation and of their parents or guardians.
Provide all parents or guardians of children selected for the program with a list of licensed federally funded or private child care providers located within the school district or within ten miles of the charter school and explain to parents or guardians that they may choose to have their child receive services under the program from any provider on the list if that provider agrees to participate.
Allow at least fifty per cent of pupils selected for the program to receive preschool services from a federally funded or private child care provider of their parent's or guardian's own choosing.
Allow any eligible child care provider located within the school district or within ten miles of the charter school to participate in the program if it is willing to provide services at a unit cost similar to that paid to other providers in the area under the program.
Limit the use of contracts with federally funded and private child care providers to financial agreements pertaining to numbers of children to be served, hours of service to be provided per child, payment rates and other financial aspects of the program.
Limit to five per cent the amount of block grant monies that may be used locally for program administration.
Pay participating federally funded and private child care providers in a timely manner.

D. The legislative council shall conduct a programmatic evaluation of the state block grant for early childhood education program every three years. For this evaluation, the staff of legislative council shall develop outcome measures to indicate the effectiveness of the early childhood education program. The department of education shall assist the staff of legislative council in collecting any information necessary to complete the evaluation.

Article 12 E-rate

§ 15-1261 E-rate application; fund

A. All school districts and charter schools that are eligible for e-rate priority one funding as authorized by the telecommunications act of 1996 may apply for funding. Eligible school districts and charter schools may submit applications with assistance of the department of administration.

B. All school districts and charter schools that receive e-rate funding shall establish an e-rate fund. Any monies in the fund may be used to reimburse the school district or charter school for broadband internet and telecommunications costs.

Article 13 Industry-Recognized Certification and Licensure Reimbursement Fund

§ 15-1265 Industry-recognized certification and licensure reimbursement fund; exemption; qualifications

A. The industry-recognized certification and licensure reimbursement fund is established and consists of legislative appropriations, gifts, grants and other donations. The department of education shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The department shall use monies in the fund to eliminate or reduce exam costs to obtain industry-recognized certificates and licenses for low-income students. To qualify for reimbursement, a student shall:

Successfully pass a certificate or license exam related to a career and technical education program.
Meet 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.
Apply to the career and technical education district to receive reimbursement for the cost of the exam. The career and technical education district shall apply to the department to receive reimbursement for the cost of the exam.

C. If the available fund monies are not sufficient to cover the costs of all qualified applicants, the department shall reduce the reward amount for each student in proportion to the exam cost.

Chapter 10.1 Additional Support for Public Education

Article 1 General Provisions

§ 15-1281 Student support and safety fund; exemption; distribution; definitions

(Caution: 1998 Prop. 105 applies)

A. The student support and safety fund is established consisting of monies deposited pursuant to section 43-1013, private donations and interest earned on those monies. Monies in the fund are continuously appropriated. Monies in the fund and its accounts may not be transferred to any other fund except as provided in this section, do not revert to the state general fund, and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The state treasurer shall administer the fund.

B. All monies in the student support and safety fund must first be spent, and the state treasurer shall transfer monies from the fund, to pay:

The actual reasonable costs incurred by the state treasurer to administer the fund.
The actual reasonable costs incurred by the auditor general and department of education to implement section 15-1284.
The actual reasonable costs incurred by the department of revenue to implement and enforce section 43-1013.
The actual reasonable costs incurred by the state board of education to implement subsection D, paragraph 3 of this section.
Any other mandatory expenditure of state revenues required to implement this chapter and the invest in education act.

C. The state treasurer may prescribe forms necessary to make transfers from the student support and safety fund pursuant to subsection B of this section.

D. On or before June 30 and December 31 of each year, the state treasurer shall transfer all monies in the student support and safety fund in excess of the amounts paid pursuant to subsection B of this section as follows:

Fifty percent as grants to school districts and charter schools, in proportion to the weighted student count pursuant to section 15-943, paragraph 2, for the school district or charter school for the prior fiscal year, for the purpose of hiring teachers and classroom support personnel and increasing base compensation for teachers and classroom support personnel. For the purposes of this paragraph, the state education system for committed youth and the Arizona state schools for the deaf and the blind shall receive grant funds in the same manner as school districts and charter schools.
Twenty-five percent as grants to school districts and charter schools, in proportion to the weighted student count pursuant to section 15-943, paragraph 2, for the school district or charter school for the prior fiscal year, for the purpose of hiring student support services personnel and increasing base compensation for student support services personnel. For the purposes of this paragraph, the state education system for committed youth and the Arizona state schools for the deaf and the blind shall receive grant funds in the same manner as school districts and charter schools.
Ten percent as grants to school districts and charter schools, in proportion to the weighted student count pursuant to section 15-943, paragraph 2, for the school district or charter school for the prior fiscal year, for the purpose of providing mentoring and retention programming for new classroom teachers to increase retention. The state board of education shall prescribe the form and format of mentoring and retention programming supported by monies transferred pursuant to this paragraph, except that the equivalent of one full-time mentor may be assigned to not more than fifteen new classroom teachers employed by the school district or charter school. If a school district or charter school receives monies pursuant to this paragraph in excess of its needs for mentoring and retention programming, those excess monies may be used for teacher retention. The state board of education shall adopt rules to implement this paragraph not later than six months after the effective date of this section. For the purposes of this paragraph, the state education system for committed youth and the Arizona state schools for the deaf and the blind shall receive grant funds in the same manner as school districts and charter schools.
Twelve percent to the career training and workforce fund established by section 15-1282.
Three percent to the Arizona teachers academy fund established by section 15-1655.

E. Grants made pursuant to this section are exempt from title 41, chapters 23 and 24.

F. For the purposes of this section:

"Classroom support personnel" means any nonadministrative school personnel, including certified personnel, who provide classroom support and instructional support services as prescribed by the school district governing board or charter school governing body, including librarians, nurses, counselors, social workers, speech pathologists, behavioral coaches and psychologists.
"Mentoring and retention programming" means regular, job-embedded, in-person, one-on-one feedback that is focused on instruction and ensuring new classroom teacher quality, success and retention.
"New classroom teacher" means a classroom teacher who is in the teacher’s first, second or third year of teaching.
"Student support services personnel" means any classified, nonadministrative school personnel who provide student support services as defined by the school district governing board or charter school governing body, including classroom aides, media specialists, health assistants, security personnel, student food service personnel, clerical staff, student transportation personnel and school site plant operators.
"Teacher" means any nonadministrative personnel, including certified teachers, who instruct students or support student academic achievement as prescribed by the school district governing board or charter school governing body, including classroom teachers, early childhood teachers, mentor teachers, instructional coaches and academic interventionists.

§ 15-1282 Career training and workforce fund; exemption; distribution

(Caution: 1998 Prop. 105 applies)

A. The career training and workforce fund is established consisting of monies deposited pursuant to section 15-1281, private donations and interest earned on those monies. Monies in the fund are continuously appropriated. Monies in the fund and its accounts may not be transferred to any other fund except as provided in this section, do not revert to the state general fund, and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The state treasurer shall administer the fund.

B. All monies in the career training and workforce fund must first be spent, and the state treasurer shall transfer monies from the fund, to pay:

The actual reasonable costs incurred by the state treasurer to administer the fund.
The actual reasonable costs incurred by the department of education to implement and administer section 15-1283.
Any other mandatory expenditure of state revenues required to implement this section and section 15-1283.

C. The state treasurer may prescribe forms necessary to transfer monies from the career training and workforce fund pursuant to subsection B of this section.

D. The state treasurer shall transfer monies in the career training and workforce fund in excess of the amounts paid pursuant to subsection B of this section at the direction of the department of education in accordance with section 15-1283.

§ 15-1283 Career training and workforce program; grants; rules

(Caution: 1998 Prop. 105 applies)

A. The department of education shall establish a career training and workforce program to do all of the following:

Provide multi-year grants of up to five years to school districts, charter schools and career technical education districts from the career training and workforce fund established by section 15-1282 for the purpose of providing services to students in grades nine through twelve.
Provide support to school districts, charter schools and career technical education districts that receive grants from the career training and workforce fund established by section 15-1282.

B. Not later than nine months after the effective date of this section, the department of education shall adopt rules to implement this section. The rules shall include:

Procedures and requirements for school districts, charter schools and career technical education districts to apply for, receive and renew grants from the career training and workforce fund established by section 15-1282, including:

(a) Requiring that grant applications be approved by the governing board or governing body of the school district, charter school or career technical education district.

(b) Providing real-time, accessibly formatted data regarding student grades, attendance and behavior to grade nine teachers and support staff.

(c) Committing to allocate time for grade nine teachers and support staff to meet during the school day to review data and develop strategies to intervene with at-risk students in grade nine, keeping records of such meetings and providing those records to the department on request.

(d) Using grant monies to establish and expand programs, opportunities and strategies allowed under this section and not using grant monies to maintain programs, opportunities and strategies established before the effective date of this section, except when a use is necessary to replace the loss or expiration of time-limited grants and federal monies.

Procedures for the department’s evaluation of grant applications received pursuant to this section.
Allowable uses of grants received from the career training and workforce fund established by section 15-1282, including:

(a) Developing or expanding career and technical education programs that are tied to medium to high-wage, high-demand careers that result in one or more of direct work experience, industry certification or postsecondary credits.

(b) Developing or expanding career and technical education programs that inspire and prepare students to become classroom teachers.

(d) Developing and implementing academic acceleration programs under which objective measures are used to enroll students who have reached proficiency into the next more rigorous course in that content area.

(e) Expanding college-level educational opportunities, including:

(i) Advanced placement, international baccalaureate or comparable college-level courses.

(ii) Dual credit, co-enrollment programs or extended co-enrollment programs offered in conjunction with an Arizona community college, public university or other accredited institution of higher learning or postsecondary educational institution.

(iii) Recruiting, licensing, employing and training personnel to provide college-level educational opportunities for high school students.

(f) Assisting students in completing grade nine with sufficient credits to be on track to on-time graduation, including:

(i) Expanding counseling services to students in grade nine and providing summer bridge programs for at-risk, incoming ninth graders.

(ii) Implementing evidence-based strategies and programs to combat chronic absenteeism.

(iii) Providing tutoring and mentoring services.

(iv) Providing real-time, accessibly-formatted data regarding student grades, attendance and behavior to grade nine teachers and support staff.

(v) Allowing grade nine teachers and support staff to meet during the school day to review data and develop strategies to intervene with at-risk students in grade nine, keeping records of such meetings and providing those records to the department upon request.

(g) Expanding tutoring, mentoring, counseling, mental health and wrap-around services that meet high school students’ immediate needs.

(h) Funding to offset the costs of students enrolled in ninth grade and who persist to complete four year career and technical education programs offered pursuant to section 15-393.

Procedures that will allow the department to provide ongoing support to school districts, charter schools and career technical education districts that receive grants pursuant to this section.

C. The department of education shall:

Begin accepting applications for grants pursuant to this section not later than one year after the effective date of this section.
Notify the state treasurer when grants are awarded under this section and direct the state treasurer to transfer monies from the career training and workforce fund established by section 15-1282 to grantees.

D. Grants made pursuant to this section are exempt from title 41, chapters 23 and 24.

§ 15-1284 Separate local-level funds; annual reporting; no supplanting

(Caution: 1998 Prop. 105 applies)

A. Each school district and charter school that receives monies from the student support and safety fund established by section 15-1281 shall establish a separate local level fund to receive monies from that fund. This subsection applies to the state education system for committed youth and the Arizona state schools for the deaf and the blind.

B. Each school district, charter school and career technical education district that receives monies from the career training and workforce fund established by section 15-1282 shall establish a separate local-level fund to receive monies from that fund.

C. School districts, charter schools and career technical education districts that receive monies from either the student support and safety fund established by section 15-1281 or the career training and workforce fund established by section 15-1282 shall provide:

An accounting of monies received from those funds each fiscal year through the uniform system of financial records.
Information regarding classroom teacher salaries for each fiscal year through the uniform system of financial records, including the average classroom teacher salary, the average salary for a first-year classroom teacher, and the average salaries for classroom teachers in their fifth, tenth, fifteenth, and twentieth years of teaching in the school district, charter school or career technical education district.

D. The department of education and the auditor general shall allow the additional reporting required by subsection C of this section through the uniform system of financial records and the Arizona chart of accounts.

E. Notwithstanding any other law, the additional monies received by school districts, charter schools and career technical education districts from the student support and safety fund established by section 15-1281 and the career training and workforce fund established by section 15-1282 are in addition to any other appropriation, transfer or allocation of public or private monies from any other source and may not supplant, replace or cause a reduction in other funding sources.

§ 15-1285 Local revenues and revenue control limitations; exemption

(Caution: 1998 Prop. 105 applies)

Notwithstanding any other law, monies received by school districts and career technical education districts pursuant to this chapter:

Are not considered local revenues for the purposes of article IX, section 21, Arizona constitution.
Are exempt from any budgetary, expenditure or revenue control limit that would limit the ability of school districts or career technical education districts to accept or expend those monies.

§ 15-1286 State treasurer; annual reports; distributions from funds

A. On or before September 1 of each year, the state treasurer shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on distributions made from the student support and safety fund established by section 15-1281 to the state treasurer, auditor general, department of education, department of revenue and state board of education pursuant to section 15-1281, subsection B. The report shall include actual distributions made to each entity in the prior fiscal year and estimated distributions for the current fiscal year.

B. On or before September 1 of each year, the state treasurer shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on distributions made from the career training and workforce fund established by section 15-1282 to the state treasurer and the department of education pursuant to section 15-1282, subsection B. The report shall include actual distributions made to each entity in the prior fiscal year and estimated distributions for the current fiscal year.

Article 1 General Provisions

§ 15-1301 Definitions

In this chapter, unless the context otherwise requires:

"Employee classifications" means one of the following:

(a) Management and supervisory staff on a twelve month schedule.

(b) Teachers, credentialed and noncredentialed specialists, on an academic schedule.

(d) Food service and bus drivers on an academic schedule.

"Hearing impairment" means hearing impairment as defined in section 15-761.
"Schools" means the Arizona state schools for the deaf and the blind and includes programs and services offered for the deaf and the blind by the schools in conjunction with other educational institutions.
"Sensory impairment" means the following conditions, as defined in section 15-761:

(a) Visual impairment.

(b) Hearing impairment.

(d) Multiple disabilities, if at least one of the disabilities is a visual or a hearing impairment.

"Visual impairment" means visual impairment as defined in section 15-761.

§ 15-1302 Arizona state schools for the deaf and the blind; provision of services

A. There shall be Arizona state schools for the deaf and the blind which provide schools and regional programs in appropriate locations in this state.

B. The schools shall be for the education of sensory impaired persons, so that the persons educated there may become self-sustaining and useful citizens.

C. The schools shall be fully recognized as institutions for educational purposes.

D. The schools shall be optional resources to school districts, state institutions and other approved educational programs. Resource services shall include, but are not limited to, the following:

Assessments.
Special curriculum.
Equipment and materials.
Supplemental related services.
Special short-term programs.
Program planning and staff development.
Information services for parents, families and the public.
Research and development to promote improved educational programs and services.

E. The services prescribed in subsection D shall not duplicate existing services and shall include a variety of methodology as may be requested by the school districts, state institutions and other approved educational programs, including but not limited to oral, auditory, total communication and cued speech.

§ 15-1303 School for the deaf and the blind as public corporation; tax exemption

A. The school shall be a body corporate under the name of "the Arizona state school for the deaf and the blind".

B. The corporation shall:

Have perpetual succession.
Have a corporate seal.
Be deemed a public corporation and its property shall be exempt from all taxes and assessments.

C. The corporation may, in the corporate name:

Sue and be sued.
Contract and be contracted with.
Take and hold by purchase, gift or devise real and personal property required for its use.
Convert property received by gift, purchase or devise which is not suitable for its use into money or property which is suitable for its use.

§ 15-1304 Land reserved for use and benefit of school; schools for the deaf and the blind fund; cooperative services fund; definition

A. The grant of one hundred thousand acres of land for schools for the deaf and the blind made by the enabling act approved June 20, 1910, or the proceeds of such lands as are sold or otherwise disposed of, is forever reserved for the use and benefit of the school for the deaf and the blind.

B. Land exchanges or sales or commercial leases in excess of ten years of land of the grant by the United States for the use and benefit of the school for the deaf and the blind shall not be disposed of except by majority approval of the voting members of the board of directors of the school.

C. The superintendent of the school shall annually report to the board on the use of monies that are the proceeds of or income from the proceeds of land of the grant by the United States for the use and benefit of the school.

D. The schools for the deaf and the blind fund is established consisting of monies from expendable earnings of the grant in subsection A of this section, monies from the department of education for special educational vouchers for deaf and blind students pursuant to section 15-1202, except for monies dedicated to regional school cooperatives, which shall instead be deposited in the cooperative services fund pursuant to subsection E of this section, and overage and nonresident student monies collected pursuant to section 15-1345. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

E. The cooperative services fund is established consisting of monies from the department of education for special education institutional vouchers for deaf and blind students pursuant to section 15-1202 who are enrolled in regional school cooperatives, membership fees paid by school districts and charter schools participating in regional school cooperatives and fee-for-service payments made by school districts and charter schools on behalf of students enrolled in regional school cooperatives for whom the schools do not receive a special education institutional voucher pursuant to section 15-1202. The Arizona state schools for the deaf and the blind shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

F. For the purposes of this section, "regional school cooperatives" means regional programs and services offered by the schools in conjunction with other school districts and charter schools for students with a hearing impairment, sensory impairment or visual impairment who attend a school operated by a school district or a charter school in this state.

§ 15-1305 Arizona state schools for the deaf and the blind; classroom site fund

The Arizona state schools for the deaf and the blind classroom site fund is established consisting of monies received from the department of education pursuant to section 15-977. The Arizona state schools for the deaf and the blind shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations and are continuously appropriated.

§ 15-1306 Arizona state schools for the deaf and the blind; local education agency

Notwithstanding any other provision of this chapter or chapter 10, article 7 of this title, the Arizona state schools for the deaf and the blind campuses are considered local education agencies for the following purposes:

Federal education funding received by this state.
State and federal accountability, including reporting requirements.
Providing a free and appropriate public education to pupils enrolled in a campus-based model pursuant to the individuals with disabilities education act (20 United States Code chapter 33), including procedural safeguards, complaint procedures, implementation of individualized education programs and reevaluations pursuant to chapter 7, article 4 of this title.
Graduation criteria and procedures, including diplomas and transcripts.

Article 2 Administration and Employment of Personnel

§ 15-1321 Board of directors; members; appointment; term; compensation

A. The school for the deaf and the blind shall be governed by a board of directors. The board shall consist of the governor, as an ex officio nonvoting member, the superintendent of public instruction or the superintendent's designee, the governor shall appoint one member from the commission for the deaf and the hard of hearing, one member from the governor's council on blindness and visual impairment and six appointive members.

B. The governor shall appoint the appointive members of the board, the member from the commission for the deaf and the hard of hearing and the member from the governor's council on blindness and visual impairment to terms of three years. One member shall be an employee of a school district who works with the district's program for sensory impaired pupils. In selecting three of the remaining five appointive members the governor shall give preference to persons who have experience in and knowledge of sensory impaired education. The terms of two appointive members expire on the first Monday of January of each year. Appointment to fill a vacancy resulting other than by expiration of term shall be for the unexpired portion of the term only.

C. Members of the board shall not receive compensation.

§ 15-1322 Board organization; meetings; quorum

A. The board shall select from its membership a president, a treasurer and a secretary or a president and a secretary-treasurer.

B. A meeting of the board may be called at any time by the governor, the president or the secretary.

C. Five voting members shall constitute a quorum for the transaction of business of the board.

§ 15-1323 Board of directors; fund; powers and duties

A. The board may bring actions and proceedings necessary to protect the interests of the schools. Such proceedings shall be instituted in the name of the Arizona state schools for the deaf and the blind.

B. The board shall be trustee of all donations of lands, monies or other things of value for the benefit of the schools. Notwithstanding title 35, chapters 1 and 2, the board may invest monies donated to the school through a contract with an investment specialist. The superintendent of the schools shall annually report to the board on the use of monies received as donations or income from donations.

C. The board shall maintain an enterprise fund in which shall be retained fees, rentals and other charges received for the use of school facilities for nonschool events.

D. The board shall:

Provide from the funds appropriated for the schools all the necessary staff, services, supplies and equipment.
Prescribe the system of records and accounts for the schools.
Cause to be kept a record of all important papers.
Cause to be kept a set of books and accounts that show every transaction made, every appropriation by the legislature for the schools, the purchase, storage and consumption of supplies for subsistence, construction and other purposes, receipts from all sources and all expenditures made.

E. Books and records of the schools shall be open to public inspection, unless otherwise restricted by law.

§ 15-1324 Reports of board of directors

The board shall prepare and file:

An annual report to the governor with a detailed statement of the cost of maintaining the school which shows in detail every financial transaction, a complete record of the conditions and work of the school, and including reports by the superintendent and chief medical officer.
An estimate for the use of the legislature of appropriations necessary for the support of and for needed improvements to the school, and also a report of the operation of the school for the preceding year.

§ 15-1325 Superintendent and other personnel; appointment; compensation; term of employment; qualifications; nonretention notice

A. There shall be a superintendent of the schools who shall be the executive officer. The superintendent shall be appointed by the board of directors, and the board shall issue one, two or three year contracts for the superintendent. The superintendent is eligible to receive compensation pursuant to section 38-611. The board of directors shall designate the management and supervisory positions. The superintendent, with the approval of and acting on behalf of the board, shall issue one, two or three year contracts for the management and supervisory positions designated by the board pursuant to this section. Compensation for persons who are issued contracts pursuant to this section shall be paid according to a range of compensation approved by the board of directors.

B. The board of directors shall determine the qualifications for the superintendent by action taken at a public meeting. The board of directors shall consider the following qualifications for a candidate for the superintendent position:

Experience in the education of students who are deaf, hard of hearing, blind, visually impaired and deaf and blind.
Experience in the administration of education programs for students who are deaf, hard of hearing, blind, visually impaired and deaf and blind.
A clear understanding of, and expertise in, the education issues facing deaf and blind students, language acquisition, communication access, independent living and accessible education materials.

C. The board of directors shall establish a system for the evaluation of the performance of the superintendent in consultation with the administration of the schools. The superintendent shall establish a system for the evaluation of the performance of persons who are contracted pursuant to this section in consultation with the staff of the schools.

D. On or before April 15 preceding the expiration of the superintendent's employment contract, the board of directors shall give written notice to the superintendent of the board's intention to offer or not to offer a new employment contract. On or before April 15 preceding the expiration of the contract of a person contracted by the superintendent, acting on behalf of the board pursuant to this section, the superintendent shall give written notice to the person of the board's intention to offer or not to offer the person a new employment contract. If the board decides to offer the superintendent a new employment contract, the board shall offer the new employment contract on or before May 15 preceding the expiration of the superintendent's current employment contract. If the board decides to offer a new employment contract to a person contracted pursuant to this section, the superintendent, acting on behalf of the board, shall offer the new employment contract on or before May 15 preceding the expiration of the current employment contract. The person offered a contract pursuant to this subsection shall accept the contract by signing and returning it to the board within thirty days, or the offer is deemed refused. If the person adds written terms or conditions to the employment contract offered, the person fails to accept the employment contract.

E. Notice of the board of directors' intention not to reemploy the superintendent or a person contracted pursuant to this section shall be delivered to the superintendent or the person contracted by one of the following:

The superintendent, in person, acting on behalf of the board.
Certified mail, postmarked on or before the deadline prescribed in subsection D of this section and directed to the place of residence as recorded in the agency's records.

§ 15-1326 Employment and discharge of personnel; probationary status; report; hearing; policies

A. The superintendent, acting on behalf of the board of directors, shall employ all personnel needed for the operation of the schools. The superintendent, with the approval of and acting on behalf of the board, may issue individual contracts for teaching positions. The board shall review all personnel appointments on a periodic basis and may require employment justification by the superintendent as it deems necessary.

B. Except as provided in section 15-1325, the superintendent shall place each new employee in a probationary employment status. The board shall determine the term and conditions of probationary employment status. The superintendent may discharge any probationary employee who is unsuited or not qualified for employment at the schools. On satisfactory completion of probationary employment, employees shall be granted permanent employment status.

C. The superintendent may discharge, only for cause, any permanent employee at the schools. The superintendent shall file with the board a written report of the action and the reasons for the discharge. Permanent employees who are discharged from employment at the schools are entitled to due process protections in the manner provided by the board, including a hearing before the board of directors. The due process procedures will be developed in consultation with the employees.

D. The board shall prescribe policies for employees, including employee conduct and discipline.

§ 15-1327 Limitations on reduction of salaries or personnel; notice; reappointment

A. The board of directors may direct the superintendent to reduce salaries or eliminate permanent employee positions in the Arizona state schools for the deaf and the blind in order to effectuate economies in the operation of the schools or to improve the efficient conduct and administration of the schools. The superintendent, with the approval of the board, may designate the positions to be eliminated within an employee classification, and the reduction of personnel shall occur within and be limited to that specific employee classification. A person whose position is eliminated does not have a preferred right to employment in a different employee classification, except that when a vacancy exists in a teaching position and no teacher who is currently employed at any of the schools applies for the position, a person whose position in a management or supervisory position is eliminated has a preferred right to employment as a teacher if that person is qualified for the teaching position. A person whose position is eliminated and who is transferred to a different position in a lower grade does not have a preferred right to a continued salary based on the former position or to any particular salary level in the lower grade. No reduction in the salary of a certificated teacher or credentialed specialist who has been employed by the schools for more than one year shall be made except in accordance with a general salary reduction in the schools by which the person is employed, and in such a case the reduction shall be applied equitably among all permanent employees.

B. Notice of a general salary reduction shall be given to each certificated teacher and credentialed specialist affected not later than May 15 before the fiscal year in which the reduction is to take effect.

C. A permanent employee who is dismissed for reasons of economy or to improve the efficient conduct and administration of the schools shall have a preferred right of reappointment in the order of original employment by the board of directors in the event of an increase in the number of permanent employees or the reestablishment of services within a period of one year.

§ 15-1329 Employee salaries and classification; definition

A. The board shall determine the salaries and assign an employee classification of persons it employs, except for the superintendent as provided in section 15-1325.

B. All salary schedules for employees of the schools shall become operative on July 1 of each year and shall be included in the estimate of expenses submitted by the superintendent.

C. In any fiscal year in which monies are appropriated to the department of education to provide teacher salary increases, each teacher who is employed by the Arizona state schools for the deaf and the blind in that fiscal year is eligible for the same salary increase from that appropriation in the same manner as any other public schoolteacher.

D. For the purposes of this section, "teacher who is employed by the Arizona state schools for the deaf and the blind" means a person who both:

Was eligible to be included in the year-end full-time equivalent teacher count of the Arizona state schools for the deaf and the blind for the 2016-2017 school year in the annual financial report of the Arizona state schools for the deaf and the blind.
Teaches at the Arizona state schools for the deaf and the blind during the school year.

§ 15-1330 Personnel; fingerprinting; immunity

A. The board of directors shall require the superintendent to have a valid fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1. Certificated personnel employed by the schools shall have valid fingerprint clearance cards issued pursuant to title 41, chapter 12, article 3.1 or shall apply for a fingerprint clearance card within seven working days after employment.

B. Noncertificated personnel employed by the schools and nonpaid personnel working in the schools shall be fingerprinted as a condition of employment for the purpose of obtaining state and federal criminal records checks. Noncertificated employees and nonpaid personnel who do not have a valid fingerprint clearance card shall submit fingerprints on the form prescribed by the school to the superintendent within twenty days after the date the person begins work. Employment with the schools is conditioned on the results of the fingerprint check. Fingerprint checks shall be conducted pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

C. The schools may charge the employee or nonpaid personnel for the costs of the fingerprint checks.

D. Personnel employed by the schools shall certify on forms that are provided by the schools that they are not awaiting trial on and have never been convicted of or admitted in open court or pursuant to a plea agreement of committing any criminal offenses in this state or similar offenses in another state or jurisdiction as specified in section 41-1758.03, subsections B and C.

E. Before employment, the schools shall make documented, good faith efforts to contact previous employers of personnel to obtain information and recommendations that may be relevant to a person's fitness for employment. For certificated personnel, the schools may also contact the department of education to obtain information that is contained in the person's certification record and that may be relevant to the person's fitness for employment. For persons in other positions that require licensing, the schools may also contact the agency that issued the license for information relevant to the person's fitness for employment. Agencies and previous employers that provide information pursuant to this subsection are immune from civil liability unless the information provided is false and is acted on to the detriment of the employment applicant by the schools and the previous employer or agency knows the information is false or acts with reckless disregard of the truth or falsity of the information. Employees who rely on information obtained pursuant to this subsection in making employment decisions are immune from civil liability unless the information obtained is false and the employee knows the information is false or acts with reckless disregard of the truth or falsity of the information.

F. The superintendent shall notify the department of public safety if the superintendent receives credible evidence that a person who possesses a valid fingerprint clearance card either:

Is arrested for or charged with an offense listed in section 41-1758.03, subsection B.
Falsified information on the form required by subsection D of this section.

Article 3 Instruction and Students

§ 15-1341 Instruction of pupils

A. The board of directors shall see that all persons admitted to the school are taught and trained by methods which are to their best interests.

B. The board shall ensure the careful supervision of the care, education and development of pupils to insure that the best care and education known to modern science is given, as nearly as is practicable, and that the best methods of teaching the sensory impaired are used in the school.

C. The board shall give special attention to the methods of care, education and development of the persons admitted, with particular consideration of the humanitarian aspects of their education.

D. The board, if advisable in particular cases, may allow pupils to remain at the school during the entire year.

§ 15-1342 Admissions

A. Chapter 7, article 4 of this title governs admissions to the school except as provided in this section. The evaluation and consideration of placement in the school shall be made under the direction of the chief administrative official of the home school district within the boundaries of which the child resides or a person designated by the official as responsible for special education after consultation with the parent, as defined in section 15-761, of the child. If a parent or legal guardian of a child directly refers a child to the Arizona state schools for the deaf and the blind, the schools shall immediately, after notification of the referral, contact the representative of the home school district within the boundaries of which the child resides. A representative of the home school district shall arrange for the establishment of a placement and evaluation team for that child.

B. A placement and evaluation team shall determine the appropriate educational placement for the child based on the development of an individualized education program. Placement and review of the individualized education program may be conducted at the same meeting. Each placement and evaluation team shall document that it has advised the child's parent or legal guardian of all placement options. The placement and evaluation team shall consist of at least the following persons:

The parent or legal guardian of the child.
A representative from the home school district in which the child resides who meets all of the following requirements:

(a) Is qualified to provide or supervise the provision of specially designed instruction to meet the unique needs of children with disabilities.

(b) Is knowledgeable about the general education curriculum.

A certified teacher of children with a sensory impairment who provides or may provide in the future educational services to the child.
An evaluator, with preference given to an evaluator who is trained and experienced in evaluating the educational needs of children with a sensory impairment. The evaluator may also be a member of the team pursuant to paragraph 2 or 6 of this subsection.
An educational representative of the Arizona state schools for the deaf and the blind. The educational representative may also be a member of the team pursuant to paragraph 3 of this subsection.
If the child is or will be participating in the regular educational environment, at least one regular education teacher.
If appropriate, the child with a disability.

C. The individualized education program plan of a child continuing in special education placement from the prior school year shall be reviewed annually and revised if necessary. The individualized planning conference shall include a representative of the home school district and a representative of the schools, the child's teacher, the parent, as defined in section 15-761, of the child and, if appropriate, the child.

D. The Arizona state schools for the deaf and the blind shall hold a placement meeting for a child who is enrolled in a campus-based model at least annually to review the child's placement status and shall invite a representative of the child's home school district. If a determination is made that the Arizona state schools for the deaf and the blind is no longer the least restrictive environment, the home school district shall enroll the child.

E. Except as provided in subsection G of this section, a representative for special education of the home school district shall place the child according to the recommendations of the individualized education program team.

F. A child who is placed in the school but moves from one school district or county to another may remain placed in the school until the next annual review. A representative of the child's new district of residence shall be included on the team conducting the review. The superintendent of the Arizona state schools for the deaf and the blind shall at least quarterly give the chief administrator of the school district notice of any changes in a child's residence and the new district of residence shall become the new home school district.

G. If the chief administrator of the home school district and the superintendent of the schools determine that the schools cannot provide the appropriate educational programs and services needed by the child, they shall locate or establish a program to meet the child's needs in consultation with the department of education and any other appropriate state agency.

H. A complete record of every person admitted shall be kept from the date of the person's admission to the date of the person's discharge, release, removal, graduation or death. The records shall be accessible to the board or a legislative committee or on order of a judge of a court of record.

I. A political or religious belief shall not be required as a qualification of any student of the schools.

§ 15-1343 Persons entitled to education

A. A person is entitled to an education in the schools for the deaf and the blind without charge if the person is a resident of this state, age three through twenty-one years and sensory impaired to an extent that he cannot acquire an appropriate education in the school district of residence.

B. The school district of residence that refers a pupil for admission to the schools shall determine that the pupil is a resident of this state or is otherwise eligible for an education without charge pursuant to sections 15-823 and 15-824.

§ 15-1344 Authority for enrollment of children under three years of age; definition

A. The board of directors may enroll a child under the age of three years in the schools for the deaf and the blind without charge if the person having legal custody of the child is a resident of this state and the child is sensory impaired to an extent that the person would benefit from a specialized program.

B. For the purposes of this section, the residence of the person having legal custody of the pupil is considered the residence of the pupil.

C. For the purposes of this section, "legal custody" means legal custody pursuant to section 15-824.

§ 15-1345 Overage and nonresident students; deposit

A. Persons older than the age specified in section 15-1343 and persons who are not residents of this state may be admitted to the school if its capacity will permit, but no person shall be received into or retained in the school to the exclusion or detriment of those for whom it is especially founded.

B. Persons from other states and countries may have the benefits of the school by complying with the conditions of admission for state citizens and by advance payment to the superintendent of an amount fixed by the board.

C. Monies collected pursuant to subsection B of this section shall be deposited in the schools for the deaf and the blind fund established by section 15-1304.

§ 15-1346 Payment for personal expenses

A. It is the responsibility of parents or persons having legal custody of a pupil to provide sufficient monies for that pupil enrolled in the school to cover personal care items, including clothing, hearing aids, hearing aid repairs, eyeglasses, eyeglass repairs, medical or dental care and transportation to the school and home at the close of the school term.

B. The superintendent shall periodically make an account of certified expenses for a pupil and shall bill the parent or person having legal custody of the pupil for reimbursement of such expenses. If the superintendent determines that the parent or person having legal custody of the pupil is unable to pay the account and that the pupil is indigent, the superintendent shall remit the account after one school year to the clerk of the board of supervisors of the county in which the pupil resides for payment from the county general fund.

Chapter 11.1 State Educational System for Committed Youth Funding

Article 1 General Provisions

§ 15-1371 Equalization assistance for state educational system for committed youth; state education fund for committed youth

A. The superintendent of the state educational system for committed youth shall calculate a base support level as prescribed in section 15-943 and district additional assistance as prescribed in section 15-961 for the educational system established pursuant to section 41-2831, except that:

Notwithstanding section 15-901:

(a) The student count shall be determined using the following definitions:

(i) "Daily attendance" means days in which a pupil attends an educational program for a minimum of two hundred forty minutes, not including meal and recess periods. Attendance for one hundred twenty or more minutes but fewer than two hundred forty minutes shall be counted as one-half day's attendance.

(ii) "Fractional student" means a pupil who is enrolled in an educational program of one hundred twenty or more minutes but fewer than two hundred forty minutes a day, not including meal and recess periods. A fractional student shall be counted as one-half of a full-time student.

(iii) "Full-time student" means a pupil who is enrolled in an educational program for a minimum of two hundred forty minutes a day, not including meal and recess periods.

(b) "Pupils with serious emotional disabilities enrolled in a school district program as provided in section 15-765" includes pupils with serious emotional disabilities enrolled in the department of juvenile corrections school system.

All pupils shall be counted as if they were enrolled in grades nine through twelve.
The teacher experience index is 1.00.
The base support level shall be calculated using the base level multiplied by 1.0.
Section 15-943, paragraph 1 does not apply.

B. The superintendent may use section 15-855 in making the calculations prescribed in subsection A of this section. The superintendent of the system and the department of education shall prescribe procedures for determining average daily membership.

C. Equalization assistance for the state educational system for committed youth for the budget year is determined by adding the amount of the base support level and district additional assistance for the budget year calculated as prescribed in subsection A of this section.

D. The state educational system for committed youth shall not receive twenty-five percent of the equalization assistance unless it is accredited by the north central association of colleges and secondary schools.

E. The state education fund for committed youth is established. Fund monies shall be used for the purposes of the state educational system for committed youth, and notwithstanding section 35-173, monies appropriated to the fund shall not be transferred to or used for any program that is not within the state educational system for committed youth. State equalization assistance for the state educational system for committed youth as determined in subsection A of this section, other state and federal monies received from the department of education for the state educational system for committed youth and monies appropriated for the state educational system for committed youth, except monies appropriated pursuant to subsection F of this section, shall be deposited in the fund. The state treasurer shall maintain separate accounts for fund monies if the separate accounts are required by statute or federal law.

F. The department of juvenile corrections may seek appropriations for capital needs for land, buildings and improvements, including repairs and maintenance, that are required to maintain the state educational system for committed youth.

G. The state board of education shall apportion state aid and deposit it, pursuant to sections 35-146 and 35-147, in the state education fund for committed youth in an amount as determined by subsection A of this section. The apportionments shall be as follows:

On July 1, one-third of the total amount to be apportioned during the fiscal year.
On October 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On December 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On January 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On February 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On March 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On April 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On May 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On June 15, one-twelfth of the total amount to be apportioned during the fiscal year.

H. In conjunction with the department of administration, the superintendent of the state educational system for committed youth shall establish procedures to account for the receipt and expenditure of state education fund for committed youth monies by modifying the current accounting system used for state agencies as necessary.

§ 15-1372 Equalization assistance for state educational system for persons in the state department of corrections; fund

A. The state department of corrections shall provide educational services for pupils who are under the age of eighteen years and pupils with disabilities who are age twenty-one or younger who are committed to the state department of corrections. The department of education shall provide technical assistance to the state department of corrections on request and shall assist the state department of corrections in establishing program and personnel standards.

B. The state education fund for correctional education is established. Subject to legislative appropriation, fund monies shall be used for the purposes of providing education to pupils as specified in subsection A of this section. Notwithstanding section 35-173, monies appropriated to the fund shall not be transferred to or used for any program that is not directly related to the educational services required by this section. State equalization assistance, other state and federal monies received from the department of education for which the pupils in correctional education programs qualify and monies appropriated for correctional education except monies appropriated pursuant to subsection C of this section shall be deposited in the fund. The state treasurer shall maintain separate accounts for fund monies if the separate accounts are required by statute or federal law.

C. The state department of corrections may seek appropriations for capital needs for land, buildings and improvements, including repairs and maintenance, that are required to maintain the educational services required by this section.

D. The state board of education shall apportion state aid and deposit it, pursuant to sections 35-146 and 35-147, in the state education fund for correctional education in an amount as determined by subsection E of this section. The apportionments are as follows:

On July 1, one-third of the total amount to be apportioned during the fiscal year.
On October 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On December 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On January 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On February 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On March 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On April 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On May 15, one-twelfth of the total amount to be apportioned during the fiscal year.
On June 15, one-twelfth of the total amount to be apportioned during the fiscal year.

E. The director of the state department of corrections shall calculate a base support level as prescribed in section 15-943 and district additional assistance as prescribed in section 15-961 for the educational services required by this section, except that:

Notwithstanding section 15-901, the student count shall be determined using the following definitions:

(a) "Daily attendance" means days in which a pupil attends an educational program for a minimum of one hundred eighty minutes, not including meal and recess periods. Attendance for ninety or more minutes but fewer than one hundred eighty minutes shall be counted as one-half day's attendance.

(b) "Fractional student" means a pupil who is enrolled in an educational program of ninety or more minutes but fewer than one hundred eighty minutes per day, not including meal and recess periods. A fractional student shall be counted as one-half of a full-time student.

(c) "Full-time student" means a pupil who is enrolled in an educational program for a minimum of one hundred eighty minutes per day, not including meal and recess periods.

(d) "Pupil with a disability" has the same meaning as child with a disability prescribed in section 15-761.

All pupils shall be counted as if they were enrolled in grades nine through twelve.
The teacher experience index is 1.00.
Section 15-943, paragraph 1 does not apply.
The base support level and capital outlay amounts calculated pursuant to this section shall be multiplied by 0.67.
The school year shall consist of a period of not less than two hundred eight days.

F. The director of the state department of corrections may use section 15-855 in making the calculations prescribed in subsection E of this section. The director of the state department of corrections and the department of education shall prescribe procedures for calculating average daily membership.

G. Equalization assistance for correctional education programs provided for those pupils specified in subsection A of this section is determined by adding the amount of the base support level and district additional assistance for the budget year calculated as prescribed in subsection E of this section.

H. The director of the state department of corrections shall keep records and provide information as the department of education requires to determine the appropriate amount of equalization assistance. Equalization assistance shall be used to provide educational services in this section.

I. The department of education and the state department of corrections shall enter into an intergovernmental agreement that establishes the necessary accountability between the two departments regarding the administrative and funding requirements contained in subsections A and B of this section. The agreement shall:

Provide for appropriate education to all committed youths as required by state and federal law.
Provide financial information to meet requirements for equalization assistance.
Provide for appropriate pupil intake and assessment procedures.
Require pupil performance assessment and the reporting of results.

§ 15-1373 State education system for committed youth; classroom site fund

The state education system for committed youth classroom site fund is established consisting of monies received from the department of education pursuant to section 15-977. The department of juvenile corrections shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations and are continuously appropriated.

Chapter 12 Community Colleges

Article 1 General Provisions for and Establishment of Community College Districts

§ 15-1401 Definitions

In this chapter, unless the context otherwise requires:

"Accredited" means accredited by a regional accrediting agency recognized by the United States department of education or by the council on postsecondary accreditation.
"Additional short-term classes" means those classes that are not in session on the forty-fifth day of the fall or spring semester, that commence at various times during the fiscal year and that are offered over a period of less than sixteen weeks.
"Budget year" means the fiscal year for which the community college district is budgeting and that immediately follows the current year.
"Community college" means an educational institution that is operated by a district board and that provides a program of not more than four years' training in the arts, sciences and humanities beyond the twelfth grade of the public or private high school course of study or vocational education, including terminal courses of a technical and vocational nature and basic adult education courses.
"Community college tuition financing district" means a district that is organized pursuant to section 15-1409.
"Current year" means the fiscal year in which the community college district is operating.
"District" means a community college district that is established pursuant to sections 15-1402 and 15-1403 or section 15-1402.01 and that is a political subdivision of this state and, unless otherwise specified, includes community college tuition financing districts established pursuant to section 15-1409.
"District board" means the community college district governing board.
"Full-time equivalent student" means student enrollment for fifteen community college semester credit units per semester.
"Open entry, open exit classes" means those classes in which students enter or exit based on mastery of specified competencies and that commence at various times during the fiscal year.
"Operational expense budget" means the budget as adopted by the district board pursuant to section 15-1461.
"Operational expenses" means the administration, instruction, operation of community college plant, maintenance of community college plant, fixed charges and contingencies incurred in the operation of a district, excluding all capital outlay items, special levies, auxiliary enterprise funds, restricted funds and bond service items.
"Provisional community college district" means a community college district that was organized pursuant to section 15-1409 and that began operations before January 1, 2015.

§ 15-1402 Community college districts; requirements; exception

A. Community college districts may be organized under this chapter for a single county, two or more contiguous counties or an existing community college district and contiguous counties not part of any community college district if the proposed district has a net assessed valuation, based on the valuation for the preceding year, of at least four hundred forty-eight million seventeen thousand two hundred dollars and a minimum population of forty thousand persons who are fifteen or more years of age, as determined by the most recent federal census.

B. Beginning with fiscal year 1993-1994, the minimum net assessed valuation required to organize a community college district as provided in subsection A of this section increases each year by the percentage change in total net assessed valuation for all of the districts that are organized pursuant to this section with a population of less than five hundred thousand persons according to the most recent United States decennial census using actual net assessed valuation numbers from the prior two years.

C. The requirements of this section do not apply to community college districts organized pursuant to section 15-1402.01.

§ 15-1402.01 Alternative organization for community college districts; definition

A. A county that does not meet the requirements prescribed in section 15-1402 may organize a community college district under this chapter if all of the following requirements are met:

A provisional community college district that began operations before January 1, 2015 has been in operation in that county for at least five years immediately before the formation of the proposed community college district pursuant to this section.
The most recent number of full-time equivalent student enrollment calculated pursuant to section 15-1466.01 for the provisional community college district is at least four hundred fifty.
The proposed community college district is actively seeking accreditation from a regional accrediting agency recognized by the United States department of education or by the council on postsecondary accreditation.
A member of the public requests, or the governing board schedules, public meetings to discuss and hear testimony on converting the provisional community college district to an independent community college district.
At the next regularly scheduled meeting after the meeting prescribed in paragraph 4 of this subsection, the governing board of the provisional community college district adopts a resolution to form a community college district pursuant to this section.
Notwithstanding section 42-17056, after the governing board of the provisional community college district adopts a resolution pursuant to paragraph 5 of this subsection, the governing board may call an election on a general election date of the board's choice to seek voter approval to increase the primary property tax levy for the provisional community college district. If a majority of the qualified electors voting:

(a) Approve the proposed levy amount, the levy applicable for the district for the next tax year shall not exceed the approved amount and the governing board shall not seek voter approval to increase the primary property tax levy in any subsequent year.

(b) Disapprove the proposed levy amount, the district shall levy a primary property tax based on the previously authorized levy.

The provisional community college district has maintained a regional accreditation and oversight relationship with another postsecondary institution until the conversion of the provisional community college district to an independent community college district.

B. A community college district established pursuant to this section shall maintain a regional accreditation and oversight relationship with another postsecondary institution until the district achieves initial candidacy status from a regional accrediting agency recognized by the United States department of education or by the council on postsecondary accreditation.

C. For the purposes of this section, "postsecondary institution" means any of the following:

An accredited community college district that is organized pursuant to this chapter.
A university under the jurisdiction of the Arizona board of regents.
A community college in this state that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation.

§ 15-1403 Procedure to form a district; exception

A. For the purpose of forming a district, not less than ten per cent of the qualified electors in the territory included in the proposed district, or where a district consists of more than one county not less than ten per cent of the qualified electors in each county, shall petition the county school superintendent for the establishment of the district. Where a district consists of more than one county, the signatures of the qualified electors on the petition shall be submitted to the county school superintendent of the county of which the qualified electors are residents, provided that the county school superintendent of the county with the larger population, as determined by the most recent federal census, shall be the custodian of the completed petition. The petition shall set forth the name of the proposed district and its boundaries. The county school superintendent shall verify the signatures thereon, provided that whenever a proposed district consists of more than one county the county school superintendent of the county with the least population shall verify the signatures on the petition from that county prior to submitting the petition to the county school superintendent of the county with the larger population.

B. The county school superintendent who is the custodian of the completed petition shall transmit the petition to the county board of supervisors, or if the district consists of more than one county, to the county board of supervisors of the county with the largest population, which shall determine whether the proposed district meets the minimum standards of assessed valuation and population as provided in section 15-1402.

C. If the county board of supervisors determines that the proposed district meets the minimum standards of assessed valuation and population prescribed in subsection B of this section, the county, or counties, shall call and conduct an election, as prescribed in this article. If the majority of the votes cast in the proposed district, consisting of one county, favor the formation of the district, such a district is deemed to be formed, as provided in section 15-1404. Where the proposed district consists of more than one county, there shall be a majority of the votes cast in each county favoring the formation of the district before the district is deemed to be formed, as provided in section 15-1404.

D. This section does not apply to community college districts organized pursuant to section 15-1402.01.

§ 15-1404 Election to determine formation of district; notice; canvass

A. Upon approval of the proposed district, the county board of supervisors shall return the petition with its approval to the county school superintendent, or if the proposed district consists of more than one county, to the county school superintendent of the county with the larger population, as determined by the most recent federal census. The county school superintendent shall transmit notification of approval for formation of the proposed district to the board of supervisors which shall submit the question to the qualified electors of the county at the next general election or at a special election called for that purpose. If a special election is called, notice thereof shall be given by publication for at least two weeks in a newspaper of general circulation published in the county or counties of the proposed district. The election shall be conducted and returns shall be made in the manner provided by law for special elections.

B. A special election conducted pursuant to this section shall be held on a date prescribed by section 16-204.

§ 15-1405 Presentation of plan to legislature by county board of supervisors

The county board of supervisors shall present a plan to the legislature for formation and establishment of a community college district no later than January 15 subsequent to the election held as provided in section 15-1404.

§ 15-1406 District board members and employees; compensation; payment of expenses for employment candidates

A. Sections 38-608, 38-609, 38-610 and 38-613 relating to all public officers and employees apply to district board members and district officers and employees. Except as otherwise provided in subsection B, the other provisions of title 38, chapter 4 relating to public officers and employees of this state do not apply to district board members or district officers or employees.

B. The district board may permit a member, member-elect, officer or employee to travel within or without the state for a community college district purpose and receive reimbursement for lodging and subsistence and transportation expenses according to the procedures and amounts established by the district board as long as the reimbursement rates do not exceed the maximum amounts established pursuant to section 38-623 and section 38-624, subsection C.

C. The district board may pay for the traveling, lodging and other travel related expenses of candidates for employment with the district according to the policies and procedures established by the district board.

§ 15-1407 Formation of new district by subdivision of existing district; division of assets

A. If two or more contiguous counties have formed a community college district, a new district may be formed in one or more of the counties by dissolution of the existing district if each county in which a new district is formed meets the requirements prescribed in section 15-1402. Except as provided in this section, the procedures for dissolution of the district shall be as prescribed in section 15-1403 for the formation of a district in more than one county.

B. The election shall be held as provided in section 15-1404, except that a majority of the qualified electors in each of the counties in the existing district must approve the dissolution of the existing district and the formation of the new district.

C. If a county is within a community college district that is dissolved pursuant to this section and the county does not meet the requirements of section 15-1402 or 15-1402.01, the county is no longer part of an established community college district.

D. The district board of the existing district shall prepare a projected list of assets for the existing district before the end of the fiscal year in which the election is held. The district boards of the existing district and the new district shall prepare a final statement of assets for the existing district as of the end of the fiscal year in which the election was held. The district boards of the existing district and the new district shall set aside sufficient assets or provide other means to satisfy the liabilities of the existing district and approve the final division of all assets by September 15 of the year in which the new district becomes operative.

§ 15-1408 Use of community college district resources or employees to influence elections; prohibition; civil penalty; definitions

A. A person acting on behalf of a community college district or a person who aids another person acting on behalf of a community college district shall not spend or use community college district, resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value of the community college district, for the purpose of influencing the outcomes of elections. Notwithstanding this section, a community college district may distribute informational pamphlets on a proposed bond election as provided in section 35-454 if those informational pamphlets present factual information in a neutral manner. Nothing in this section precludes a community college district from reporting on official actions of the governing board.

B. The prohibition on the use of public resources to influence the outcome of bond, budget override and other tax-related elections includes the use of community college district-focused promotional expenditures that occur after an election is called and through election day. This prohibition does not include routine community college district communications.

C. This section does not prohibit the use of community college resources, including facilities and equipment, for government-sponsored forums or debates if the government sponsor remains impartial and the events are purely informational and provide an equal opportunity to all viewpoints. The rental and use of a community college district facility by a private person or entity that may lawfully attempt to influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate.

D. Employees of a community college district may not use the authority of their positions to influence the vote or political activities of any subordinate employee.

E. This section does not prohibit community college districts from permitting student political organizations of political parties, including those that are recognized pursuant to sections 16-801, 16-802 and 16-803, to conduct lawful meetings in community college buildings or on community college grounds, except as prescribed in subsection A of this section. Each student political organization that is allowed to conduct lawful meetings on community college property shall have equal access as any other student political organization that is allowed to conduct lawful meetings on community college property.

F. Nothing contained in this section shall be construed as denying the civil and political liberties of any person as guaranteed by the United States and Arizona Constitutions.

G. The attorney general shall publish and distribute to community colleges a detailed guideline regarding activities prohibited under this section. The attorney general may distribute these guidelines through a web site or electronically.

H. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may serve on the person an order requiring compliance with this section and may assess a civil penalty of not more than five thousand dollars per violation, plus any amount of misused funds subtracted from the community college district budget against a person who violates or a person who aids another person in violating this section. The person determined to be out of compliance with this section shall be responsible for the payment of all penalties and misused funds. Community college funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the community college district whose funds were misused.

I. An attorney acting on behalf of a community college district may request a legal opinion of the county attorney or attorney general as to whether a proposed use of community college resources would violate this section.

J. All penalties collected by the court for a suit initiated in superior court by the attorney general shall be paid to the office of the attorney general for the use and reimbursement of costs of prosecution pursuant to this section. All penalties collected by the court for a suit initiated in superior court by a county attorney shall be paid to the county treasurer of the county in which the court is held for the use and reimbursement of costs of prosecution pursuant to this section.

K. For the purposes of this section:

"Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters.
"Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral.
"Misused funds" means community college district monies or resources used unlawfully pursuant to this section.
"Routine community college district communications" means messages or advertisements that are germane to the functions of the community college district and that maintain the frequency, scope and distribution consistent with past practices or are necessary for public safety.

§ 15-1409 Community college tuition financing districts; formation; powers and duties; issuance and sale of bonds for capital outlay

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

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

C. A community college tuition financing district shall be formed in the same manner prescribed in sections 15-1403 and 15-1404, except that the county board of supervisors shall serve as the governing board of the community college tuition financing district and the county board of supervisors by majority vote may adopt a resolution to submit the question of the formation of a community college tuition financing district and the approval of a proposed tax rate to fund the community college tuition financing district directly to the qualified electors of the county at a special or general election called for that purpose as prescribed in section 16-204 and title 35, chapter 3, article 3. The resolution adopted by the county board of supervisors shall include a statement that the primary property tax levy limit for the community college tuition financing district shall be no less than the levy limit of the most recently formed community college district in this state.

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

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

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

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

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

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

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

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

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

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

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

May continue to operate as a provisional community college district. The governing board of a provisional community college district that began operations before January 1, 2015 shall continue to be elected in the same manner prescribed in section 15-1441.
Is not eligible to receive monies pursuant to section 15-784 or section 15-1472, subsection D, paragraph 2, subdivision (a).
Is not eligible for equalization aid pursuant to section 15-1468.
Is not a board as defined in section 15-1481.
Unless otherwise specified, is a community college district for purposes of section 42-5029 or 42-5029.02.
Is not subject to section 42-17056.

§ 15-1410 Credit and noncredit courses; definition

A. A course that is offered for credit shall satisfy at least one of the following:

Satisfy one or more of the following purposes:

(a) Qualify students for a community college certificate or degree.

(b) Be acceptable for transfer to a regionally accredited public or private college or university.

(d) Improve the student's job skills or prepare the student for promotion in fields of employment.

(e) Provide skills necessary for success in other college courses.

(f) Provide continuing education and lifelong learning.

Satisfy all of the following requirements:

(a) Have a formal course outline that defines the objectives and content of the course on file and available for audit.

(b) Evaluate and grade students based on their mastery of the objectives and content of the course.

(c) Require faculty teaching the course to meet the standards set by the district to teach in the subject area of the course.

(d) Base the credit hours or contact hours awarded for completion of the course on the effort required of, and the competencies gained by, the students in accordance with policies adopted by the district governing board.

(e) Require students, before enrollment in the course, to achieve prerequisite competencies as defined in the syllabus or approved course guidelines.

(f) Be developed using the district's formal curriculum review procedure.

(g) Have an evaluation component, the results of which are used for the purposes of formative and summative evaluation by the institution.

(h) Meet other requirements adopted pursuant to district governing board policies, including national standardized examinations and credit by evaluation or examination.

B. A noncredit workforce training or career and technical education course that meets the criteria established in subsection A of this section and that is offered for contact hours instead of credit hours shall satisfy one or more of the following:

Be consistent with the Carl D. Perkins Career and technical education improvement act of 2006, as amended by the strengthening career and technical education for the 21st century act.
Be included on the eligible training provider list maintained pursuant to the workforce innovation and opportunity act.
Be requested pursuant to a formal agreement or contract with a business or entity.

C. Noncredit courses are courses that do not meet the criteria established in subsection A of this section. Noncredit courses are the financial responsibility of the district.

D. A community college under the jurisdiction of a community college district governing board may not offer a course with a prerequisite for enrollment that requires a student to be a member of a labor organization, a trade organization or a trade guild or to participate in an industry apprenticeship program.

E. For the purposes of this section, "contact hour" means sixty minutes of instructional time that is provided to students in a noncredit workforce training or career and technical education course.

Article 2 Annual Report

§ 15-1427 Annual report

A. By December 1 of each year, each community college district shall make a report for the preceding fiscal year to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee and shall provide a copy of this report to the secretary of state.

B. The report shall contain the following information regarding the operation of the district:

The state of progress of the community colleges operated under this chapter.
The courses of study included in the curricula.
The number of professors and other instructional staff members employed.
The number of students registered and attending classes.
The number of full-time equivalent students enrolled during the year.
The total number of students not residing in the district, disaggregated by the county of residence for nonresident students who reside in this state and by the state of residence for nonresident students who reside in another state.
The amount of receipts and expenditures.
A general description of tuition and fees charged for credit courses.
A general description of tuition and fees charged for noncredit courses.
Such other information as the governor and the joint legislative budget committee deem proper.

C. In each odd-numbered calendar year, the report shall also contain the following information regarding dual enrollment programs operated pursuant to section 15-1821.01:

Documentation of compliance with the requirements prescribed in section 15-1821.01, paragraphs 3, 4 and 5, including a list of the members of the faculty advisory committees of each community college.
Total enrollments listed by location, by high school grade level and by course.
A copy of each addendum to intergovernmental agreements or contracts executed pursuant to section 15-1821.01, paragraph 1.
Summary data by community college district and by individual community colleges on the number of scholarships or grants awarded to students.
Such other information as the governor and the joint legislative budget committee deem proper.

Article 3 Community College District Boards

§ 15-1441 Selection of precincts; district board members; terms; qualifications; vacancies

A. The board of supervisors shall establish in the same manner as provided in section 16-411 five precincts in a community college district for the election of a district board member from each precinct. A precinct in a community college district shall be composed of the number of election precincts as determined by the board of supervisors and shall have the same boundaries as are defined for the election precincts under section 16-411. If the board of supervisors redefines the boundaries of election precincts under section 16-411 that are included within a precinct in a community college district, the board of supervisors shall redefine the boundaries of the precinct in the community college district to conform with the election precinct changes. The precincts shall be established in a newly organized district subsequent to the organizational vote, and the county school superintendent shall appoint five members, one from each precinct, who are qualified electors.

B. Where two or more counties constitute a district, as many precincts shall be set up by the board of supervisors in each county as the county is entitled to membership. In no case shall a county that is part of a district have more than four precincts, and where a district consists of two or more counties at least one member shall reside in each county.

C. At the first general election held for a district, the candidate having the most votes in each precinct shall be declared elected, provided the candidate meets the requirements provided in subsection A of this section. The two elected members having the highest number of votes receive six year terms, the two elected members receiving the next highest number of votes receive four year terms and the one elected member receiving the lowest number of votes receives a two year term. Thereafter each member's term is six years, except for a county with a population of at least three million persons, beginning at the next election after June 30, 2012, each member's term is four years.

D. The next general election of district board members following the first general election shall be for the precinct where the elected candidate received the lowest number of votes and the second general election for the two precincts where the elected candidates received the next highest number of votes and the third general election for the two precincts where the elected candidates received the highest number of votes. The order of elections as established through this procedure shall thereafter be the order of precinct elections.

E. Vacancies shall be filled by appointment by the county school superintendent for the unexpired term for the precinct where the vacancy occurs, except that if the unexpired term is two years or longer, the county school superintendent may do one of the following:

Make an appointment for a term, which shall be until the next regular election for district board members, at which time a successor shall be elected to serve the unexpired portion of the term.
With the approval of the district board, leave the vacancy until the next regular election for governing board members, at which time a successor shall be elected to serve the unexpired portion of the term.

F. When a vacancy occurs in a district with more than one county, the county school superintendent of the county where the previous incumbent resided shall fill the appointment for the unexpired term.

G. A county officer as provided in section 11-401 is not eligible to serve as a member of a community college district governing board during his term of office.

H. Employees of a community college district or their spouses are not eligible to hold membership on the community college district governing board in the district in which the employee is employed.

I. Beginning July 1, 2012, in addition to the governing board members who are elected from each of the five precincts in a community college district, a county with a population of at least three million persons shall elect two additional governing members from the district at large. At the first general election held to elect at-large governing board members, the two candidates having the most votes shall be declared elected, if each candidate is a qualified elector who resides in that county. The elected member who receives the highest number of votes of the at-large candidates shall serve a four year term and the elected member who receives the next highest number of votes shall serve a two year term. Thereafter each member's term is four years.

§ 15-1442 Nominating petitions; election; returns; results; certificate of election; statement of contributions and expenditures

A. Candidates for the district board must file nominating petitions, conforming to section 16-314, with the appropriate county officer.

B. Members of the district board shall be elected at the time and place, and in the manner, of general elections as provided in title 16.

C. If only one person files a nominating petition or nomination paper for a write-in candidate for an election to fill a community college board office, the county school superintendent not earlier than one hundred five days before the election may cancel the election for the position and appoint the person who filed the nominating petition or nomination paper to fill the position. If no person files a nominating petition or nomination paper for a candidate or for a write-in candidate for an election to fill a community college board office, the county board of supervisors not earlier than one hundred five days before the election may cancel the election for that office and that office is deemed vacant and shall be filled as provided in section 15-1441. A person who is appointed pursuant to this subsection is fully vested with the powers and duties of the office as if elected to that office.

D. The county school superintendent and the chairman of the board of supervisors shall meet not later than on the fourteenth day following the election to canvass the returns in accordance with procedures for the canvass of returns in a general election. For any canvass conducted by the county school superintendent in November of an even-numbered year, the county school superintendent and the chairman of the board of supervisors shall conduct the canvass as part of the county's general election canvass. The county school superintendent shall declare the results of the district board election, declare elected the person receiving the highest number of votes for each office to be filled and issue to that person a certificate of election.

E. All candidates for the office of community college district governing board member shall file with the clerk of the board of supervisors a statement of contributions and expenditures as provided in section 16-926.

§ 15-1443 Meetings; officers; immunity

A. Within twenty days after appointment of the first district board, the county school superintendent, or county school superintendents by joint action where the district consists of more than one county, shall call a meeting of the district board by giving at least ten days' notice by registered or certified mail to each board member. At the meeting the district board shall organize by electing a president and a secretary from among its members and may transact any other business relating to the affairs of the district.

B. Following the first election of members, the district board shall meet and organize in January each year and shall hold regular meetings at such time and place as the policies of the board provide. Special meetings may be held at the call of the president or upon a call issued in writing signed by a majority of the members of the district board.

C. Members of the district board are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings.

§ 15-1444 General powers and duties of district boards

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

Maintain each community college under its jurisdiction for a period of at least eight months in each year and, if the monies of the district are sufficient, maintain each community college for a longer period.
Adopt policies in a public forum to offer programs that meet the educational needs of the population served by the community college.
Enforce the courses of study prescribed by the district board.
Visit each community college under its jurisdiction and examine carefully into its management, conditions and needs.
Exclude from each community college all books, publications or papers of a sectarian, partisan or denominational character intended for use as textbooks.
Appoint and employ a chancellor or chancellors, vice chancellors, a president or presidents, vice presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees it deems necessary. The district board may enter into employment contracts with chancellors, vice chancellors and presidents for a duration of more than one year but not more than five years.
Determine the salaries of persons it appoints and employs. A district may not compensate an employee for work performed on behalf of an elected employee representative organization and may not provide more favorable terms and conditions of employment to any employee because that individual belongs to an elected employee representative organization.
Remove any officer or employee if in its judgment the interests of education in this state require the removal.
Award degrees, certificates and diplomas on the completion of courses and curricula as it deems appropriate.
Appoint or employ, if it deems necessary, police officers who shall have the authority and power of peace officers. The police officers who have received a certificate from the Arizona peace officer standards and training board are eligible for membership in and benefits under either title 38, chapter 5, article 2 or the public safety personnel retirement system under title 38, chapter 5, article 4.
Determine the location within the district of a community college and purchase, receive, hold, make and take leases of, sell and convey real or personal property for the benefit of the community colleges under its jurisdiction.
Obtain insurance or be self-insured, or a combination of insurance and self-insurance, against loss, to the extent it is determined necessary on community college buildings of the district. The local district shall have an insurable interest in the buildings.

B. The district board may:

Administer trusts declared or created for the district and receive by gift or devise and hold in trust or otherwise property wheresoever located, and if not otherwise provided, dispose of the property for the benefit of the district.
Lease real property, as lessor or as lessee. If a district is the lessee, the lease may contain an option to purchase the property. The district board may adopt policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to lease property under this paragraph. Any delegation by the district board pursuant to this paragraph may be rescinded in whole or in part at any time by the district board.
Sue and be sued.
Contract. The district board may adopt such policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to contract under this paragraph. Any delegation of authority under this paragraph may be rescinded by the district board at any time in whole or in part.
Construct, remodel and repair buildings.
In conjunction with other districts, establish policies for procuring goods and services.
Provide a plan or plans for employee benefits, which may include optional retirement programs pursuant to section 15-1451, subsection A, which allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.
Accept grants or donations of monies from the United States or any of its agencies, departments or officers, this state, political subdivisions of this state, tribal governments, school districts, special taxing districts, persons, corporations, foundations or associations. The district board shall deposit the monies into a specific fund or account and shall administer the monies in accordance with the purpose of the grant or donation with specific policies or restrictions as described or stipulated in the grant or donation. In the case of personal property granted or donated to or for the benefit of a community college district, the district board shall immediately transfer possession and ownership of the property to the designated district. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.
Enter into intergovernmental agreements or contracts pursuant to section 11-952.01 for participation in programs offered by public agency pools or separately contract with a trustee or board of trustees that provides a common self-insurance program with pooled funds and risks pursuant to section 15-382, subsection B, paragraph 2. The district board is not required to engage in competitive procurement in order to make the decision to participate in these programs.
Name a building or a group of buildings that is located on a community college campus on behalf of a person or entity that has made a significant contribution of monies or other property to the community college or the community college district.
Enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit-sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through community college district research. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.
Enter into an intergovernmental agreement pursuant to section 15-1747 to participate in a reciprocity agreement subject to the terms of the reciprocity agreement.
Engage in entrepreneurial and commercial activities. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.
Collect auxiliary fees, including cafeteria fees, food service fees, bookstore fees and dormitory fees. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.
Provide goods and services pursuant to a contract with a political subdivision of this state or with a tribal government. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.
For a community college in a county with a population of seven hundred fifty thousand persons or less, offer four-year baccalaureate degrees that are accredited by a regional accreditation agency approved by the United States department of education.
For a community college in a county with a population of more than seven hundred fifty thousand persons, offer four-year baccalaureate degrees that are accredited by a regional accreditation agency approved by the United States department of education as follows:

(a) For the first four years that a community college offers four-year baccalaureate degrees, the community college may not offer more than five percent of its total number of degree and certification offerings for four-year baccalaureate degrees. For the fifth and subsequent years that a community college offers four-year baccalaureate degrees, the community college may not offer more than ten percent of its total number of degree and certification offerings for four-year baccalaureate degrees.

(b) Tuition per credit hour for the third and fourth years of a four-year baccalaureate program may not exceed one hundred fifty percent of the tuition per credit hour of any other district program.

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

Is not abated, extinguished, discharged or merged in the title to the property.
Is enforceable in the same manner as other delinquent tax liens.

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

E. A community college district and a career technical education district governing board may enter into agreements to provide administrative, operational and educational services and facilities.

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

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

§ 15-1444.01 Baccalaureate degree programs; notice; reporting requirements; definitions

A. Each community college that offers a baccalaureate degree program pursuant to section 15-1444, subsection B, paragraph 16 or 17 must meet both of the following:

All applicable regional accreditation requirements.
All applicable state licensure requirements.

B. When determining whether to offer a baccalaureate degree program pursuant to section 15-1444, subsection B, paragraph 16 or 17, the district board shall make its determination based on all of the following criteria:

Whether the community college can demonstrate both:

(a) Workforce need for the baccalaureate degree program in the region served by the community college.

(b) Student demand for the baccalaureate degree program.

A financial analysis that shows the short-term and long-term impacts to initiate and sustain the baccalaureate degree program, including all of the following:

(a) The source of monies.

(b) Facilities requirements.

(d) Personnel.

(e) Administrative costs.

Whether the baccalaureate degree program would unnecessarily duplicate the degree programs offered by other institutions of higher education in this state.
The ability of the community college to support the baccalaureate degree program with student enrollment and the adequacy of the community college's facilities, faculty, administration, libraries and other resources.

C. A community college that is within a community college district located in the same county as the main campus of any public university and that is developing a baccalaureate degree program shall notify the public university whose main campus is located in the same county as the community college district at least sixty days before submitting the report prescribed in subsection D of this section to the district board. Within thirty days after the date the community college submits the notice, the public university may provide a written response to the district board for its review. This subsection does not allow a public university to prevent a community college from offering a baccalaureate degree program.

D. Before the district board authorizes a community college to offer a baccalaureate degree program pursuant to section 15-1444, subsection B, paragraph 16 or 17, the community college must submit a report to the district board that includes all of the following information:

The name of the proposed academic degree program.
The academic department that will offer the proposed degree program.
Whether the instructional modality would be immersion or online, or both.
The total credit hours necessary to complete the degree program.
The proposed inception term.
A brief description of the proposed degree program.
A learning outcomes and assessment plan, including:

(a) Concepts.

(b) Competencies.

The projected enrollment by year for the first three years the degree program is offered.
Evidence of market demand for the proposed degree program.
Similar degree programs offered at other institutions of higher education in this state.
The new resources required, including a long-term plan for faculty recruitment that indicates the ability to pay the increased salaries of doctoral faculty and identifies recruitment strategies for new faculty.
Any written responses provided by a public university pursuant to subsection C of this section.

E. Each community college that offers a baccalaureate degree program pursuant to section 15-1444, subsection B, paragraph 16 or 17 shall submit a report to the joint legislative audit committee on or before October 1 of the fifth year after initially offering that baccalaureate degree program. The report shall review the first five years of the baccalaureate degree program at the community college and shall include all of the following:

The number of:

(a) All baccalaureate degree programs implemented at the community college.

(b) Applicants to each baccalaureate degree program.

(d) Persons who are enrolled in each baccalaureate degree program.

(e) Persons who received degrees from each baccalaureate degree program.

The costs of each baccalaureate degree program, including cost per degree and the funding sources that were used to finance each degree program.
Current trends in workforce demands that require four-year degrees in each specific baccalaureate degree program offered.
Current completion and continuation rates, if available, for each cohort of students participating in each baccalaureate degree program.
Information on the impact of each baccalaureate degree program on underserved and underprepared students.
The extent to which each baccalaureate degree program fulfills identified workforce needs for new baccalaureate degree programs.
Information on the places of employment of students and the subsequent job placement of graduates of each baccalaureate degree program.
For each baccalaureate degree program, the costs to students, the amount of financial aid offered and the student debt levels of graduates.
Time-to-degree rates and completion rates for each baccalaureate degree program.

F. Each community college district that offers a baccalaureate degree program shall include all of the following in its annual report required by section 15-1427:

The total number of students pursuing a baccalaureate degree at the community college district pursuant to this section, disaggregated by baccalaureate degree program.
The projected enrollment for each baccalaureate degree program.
The total number of baccalaureate degrees completed at the community college district, disaggregated by baccalaureate degree program.
Workforce data showing demand for the baccalaureate degree programs offered at the community college district.
The average cost of tuition per credit hour for the baccalaureate degrees offered at the community college district.

G. For the purposes of this section:

"Main campus" means the central location of the public university's library system and computer center.
"Public university" means a university under the jurisdiction of the Arizona board of regents.

§ 15-1445 Administrative powers and duties of district governing boards

A district board shall:

Adopt policies for the government of the community colleges under its jurisdiction.
In conjunction with other district boards, set standards for the establishment, development, administration, operation and accreditation of community colleges in the district.
Fix tuitions and graduate the tuitions and fees between institutions and between residents, nonresidents and students from foreign countries. The district board may waive tuitions and fees and graduate tuitions and waivers for an employee or the spouse or dependent child of an employee of the district, or for a nonresident student enrolled in the district if the district board determines the waiver is in the best interest of this state and the student.
In conjunction with other district boards, submit to the economic estimates commission before January 10 of each year the estimated number of full-time equivalent students for the district as prescribed in section 15-1466.01.
Establish curricula and designate courses that in its judgment will best serve the interests of this state.
Determine academic classes that qualify as open entry, open exit classes and prescribe policies for the operation of open entry, open exit classes.
In conjunction with other district boards and the state board of education, review and adopt, within the scope of the statutory definitions of vocational and technical education, program and staff standards with modifications as necessary for courses taught in community colleges. The district board shall base the standards on vocational and technical competence.
In conjunction with other district boards, establish qualifications of the instructional staff that, at a minimum, shall be equal to those required to meet accreditation guidelines and establish standards of vocational and technical competence required to instruct in occupational as well as academic subjects.
In conjunction with other district boards, prescribe guidelines providing for the transferability between community college district vocational and technical education programs and in conjunction with the state board of education prescribe guidelines for the interrelationship of secondary programs and postsecondary programs.
In conjunction with other district boards, prescribe the manner in which the self-evaluation of vocational and technical education programs is conducted as provided in section 15-1452.
If requested by the state board of education, assist in the preparation, publication and distribution of an annual state plan and a comprehensive five-year state plan.
In conjunction with other district boards and the state board of education, develop a process to determine program funding priorities for state aid purposes. Each district board shall submit state aid recommendations to the legislature. The recommendations shall be based on the process and on existing cost studies of vocational and technical education in this state.
In conjunction with other district boards, prescribe qualifications for admission to community colleges for honorably discharged veterans who served on active duty in the armed forces for a minimum of one year and who were previously enrolled at a community college or university in this state. For the purpose of determining the qualifications, the district board may not consider prior failing grades received by the veteran at a community college or university in this state.
Require the publisher of each literary and nonliterary textbook used in the community colleges of the district to furnish computer software in a standardized format, when software becomes available for nonliterary textbooks, to the district board from which braille versions of the textbook may be produced.
Identify students simultaneously enrolled in a course for both high school and college credit by using the same student level data element required by section 15-1042, subsection A. The auditor general shall have access to this information when certifying the full-time equivalent student enrollment pursuant to section 15-1466.01, subsection A, paragraph 4.
Acquire United States flags that are manufactured in the United States and that are at least two feet by three feet and hardware to appropriately display the United States flags, acquire a legible copy of the Constitution of the United States and the Bill of Rights that is manufactured in the United States, display the flags in each classroom in accordance with title 4 of the United States Code and display a legible copy of the Constitution of the United States and the Bill of Rights adjacent to the flag.

§ 15-1446 Lease-purchase agreements

A. A district board may enter into lease or lease-purchase agreements for real property, including buildings and improvements to the property.

B. Lease or lease-purchase agreements authorized by subsection A of this section or section 15-1444, subsection A, paragraph 11 shall not create an obligation of payment by the district under the terms of the lease or lease-purchase agreement for periods longer than twenty years.

C. Notwithstanding subsection B of this section, a district board may enter into lease agreements for real property, including buildings and improvements to the property, that obligate the district for more than twenty years if the agreements are with an Indian tribe, involve land owned or controlled by the federal government or by a joint powers airport authority organized under title 28, chapter 25, article 8 or involve real property that is owned by a nongovernmental nonprofit corporation and that is offered for lease in an amount not to exceed $1,000 per year to a community college district for purposes of expanding health care education programs.

D. The amount of outstanding indebtedness due to acquiring real property by lease-purchase for each district shall not exceed either:

$2,500,000 in any one year and $15,000,000 in the aggregate for a district located in a county with a population of less than seven hundred fifty thousand persons.
$25,000,000 in any one year and $50,000,000 in the aggregate for a district located in a county with a population of seven hundred fifty thousand persons or more.

E. A district board may pledge tuitions, fees, rentals and other charges to any payments due under lease-purchase agreements.

F. Notwithstanding subsection E of this section, periodic payments and any option payments for acquiring real property by lease-purchase are restricted to payment from capital outlay funds.

G. Districts that acquire real property by lease-purchase are not entitled to receive monies pursuant to section 15-1463 pertaining to the specific real property acquired by lease-purchase.

H. Notwithstanding any other law, payments on lease or lease-purchase agreements entered into pursuant to subsection A of this section or section 15-1444, subsection A, paragraph 11 are obligations of the district within the meaning of the constitutional limit against indebtedness set out in article IX, section 8, Constitution of Arizona.

§ 15-1447 Community college district collegiate special plate funds; purpose

A. A community college district with a full-time equivalent student enrollment pursuant to section 15-1466.01 of more than five hundred students shall establish a community college district collegiate special plate fund consisting of monies received pursuant to section 28-2412. The district shall administer the fund. All monies in the fund shall be used only for academic scholarships.

B. The fund established pursuant to this section is exempt from section 35-190 relating to lapsing of appropriations. At the direction of the community college district, the state treasurer may invest and divest inactive monies in the fund as provided by section 35-313. The state treasurer shall credit all interest earned on the fund monies to the fund.

§ 15-1448 Employment of legal counsel; opinions of counsel

A. If a district lies in two or more counties, the county attorney of the largest county in which the district lies as determined by the last federal decennial census is the attorney for the district.

B. A district board may employ an attorney to represent the district if the county attorney consents. The district board shall state in writing the purpose for which it employs an attorney.

C. A district board may employ an attorney without the consent of the county attorney if it deems it advisable.

D. Compensation for an attorney whom the district board employs as provided in subsections B and C of this section is payable from district monies.

E. If a district board employs an attorney without the consent of the county attorney, the county attorney has no duty to represent the district with regard to any matter for which the attorney was employed and is not responsible to the district for any exercise of, or failure to exercise, professional judgment by the attorney in his representation of the district.

F. The county attorney is not required to assume the duty to represent the district on a matter for which the district board employs an attorney without the consent of the county attorney.

G. An attorney employed pursuant to subsection B or C of this section shall represent the district with the powers of and the duties otherwise performed by the county attorney pursuant to section 11-532, subsection A, paragraph 11.

H. Any county attorney who issues a legal opinion to a community college district shall promptly transmit a copy of the opinion to the attorney general who shall concur, revise or decline to review the opinion of the county attorney. If the attorney general does not concur, revise, or decline to review the county attorney's opinion within sixty days from its receipt, the opinion shall be deemed affirmed. If the attorney general revises the opinion, the opinion of the attorney general shall prevail.

§ 15-1449 Control of vehicles and nonpedestrian devices on community college property by district board; sanctions; compliance with emissions inspection; definition

A. The district board may adopt policies for the control of vehicles and nonpedestrian devices on property of the institutions under the district board's jurisdiction with respect to the following only:

Maximum speed of vehicles and nonpedestrian devices.
Direction of travel.
Authorized hours of travel.
Required stops in traffic.
Place, method and time of parking.
Nonparking areas and restricted areas.
Prohibition of parking in vehicle emissions control areas as defined in section 49-541 of those vehicles which fail to comply with section 49-542.
Designation of special parking areas for students, faculty, staff and the general public.

B. The district board may prescribe and collect reasonable fees for specially designated parking areas. The district board shall cause signs and notices to be posted on the property for the regulation of vehicles and nonpedestrian devices.

C. The policies adopted by the district board pursuant to subsection A of this section shall be enforced administratively under procedures approved by the district board for each institution under its jurisdiction. As to students, faculty and staff, these procedures may involve both student and faculty adjudicating bodies if all procedures give the individual notice and an opportunity to be heard concerning the alleged infractions and any sanction to be imposed on the individual. Administrative and disciplinary sanctions may be imposed on students, faculty and staff for a violation of the policies including a reasonable monetary penalty, impoundment, regular institutional discipline, withdrawal or suspension of campus parking privileges, encumbrances of records or grades, or both, and oral or written reprimand. Habitual or flagrant disregard of policies is a ground for suspension or expulsion from the institution for a student and may be taken into consideration as to faculty and staff in regard to amount of salary and continuation of employment.

D. Members of the general public who park their vehicles in an unauthorized manner on the property of an institution under the jurisdiction of the district board shall be warned concerning their unauthorized parking, and if they continue to or habitually park in an unauthorized manner, the vehicles parked in an unauthorized manner may be impounded by the institution and a reasonable fee may be exacted for the cost of impoundment and storage.

E. Members of the general public who violate a policy adopted by the district board pursuant to subsection A of this section regarding the use of nonpedestrian devices on the property of an institution under the jurisdiction of the district board shall be warned of a violation. A nonpedestrian device may be impounded by the institution, and a reasonable fee may be exacted for the cost of impoundment and storage.

F. Except as provided in section 41-1092.08, subsection H, a person who has received a final administrative ruling concerning a sanction imposed on the person as a result of a violation of a policy adopted pursuant to subsection A of this section has the right to have that ruling reviewed by the superior court in the county in which the institution involved is situated pursuant to title 12, chapter 7, article 6.

G. An institution that is under the jurisdiction of the district board and that is located in a vehicle emissions control area as defined in section 49-541 shall prohibit the issuance of annual permits to park on property under its jurisdiction until the applicant submits an affidavit or shows proof that the applicant's vehicle meets the requirements of section 49-542.

H. In this section, "nonpedestrian devices" includes bicycles, tricycles, unicycles, skateboards, roller skates and equines.

§ 15-1450 District board members; participation in employee benefit plan

A. A community college district board may allow its members and spouses and dependents of members to participate in the plan providing health, accident, life and disability benefits for employees of the district and their dependents. A district board member is eligible to participate in the plan provided as an employee benefit if the member pays the full premium and the participation of the member does not result in an expenditure of district monies.

B. If the community college district board allows its members to participate in the plan, as provided in subsection A of this section, a district board may also adopt a policy allowing participation in the plan provided as an employee benefit for board members after they leave the board and for surviving spouses and dependents of board members or former board members under the following conditions:

The community college district board may allow a board member and spouses and dependents of members to continue to participate after the board member leaves the board if all of the following apply:

(a) The board member served at least six consecutive years on the board.

(b) The board member was covered under the plan while serving on the board.

(d) The board member's participation does not result in an expenditure of district monies.

The district board may allow the surviving spouse and dependents of a deceased board member to continue to participate in the plan if all of the following apply:

(a) The surviving spouse or dependents were covered under the board member's or former board member's participation in the plan.

(b) The surviving spouse or dependents pay the full premium.

§ 15-1451 Optional retirement plans

A. Pursuant to section 15-1444, subsection B, paragraph 7, a community college district board may establish an optional retirement program under which contracts providing retirement and death benefits may be purchased for employees of the institutions under its jurisdiction as designated by the community college district board.

B. An optional retirement program established pursuant to this section shall:

Be designed to be a qualified governmental plan under section 401(a) of the internal revenue code.
Comply with all requirements of the internal revenue code applicable to governmental plans.
Be a qualified plan under section 401(a) of the internal revenue code.
Apply for and maintain a current letter of determination issued by the United States internal revenue service.
Be a qualified pick-up plan as defined by section 414(h)(2) of the internal revenue code as confirmed by a private letter ruling issued by the United States internal revenue service.
Provide benefits through annuity contracts that are fixed or variable in nature or that are a combination of fixed and variable.

C. Eligible employees may elect to participate in an optional retirement plan established by the community college district board. The eligible employee shall make the election in writing and file the election with the Arizona state retirement system and the disbursing officer of the employing institution. The eligible employee shall make the election either:

Within thirty days of the employee's effective date of employment.
If the employee is a member of the Arizona state retirement system on the date the optional retirement program becomes effective, within ninety days of the effective date of the optional retirement program.

D. If an employee who is a nonretired member of the Arizona state retirement system elects to participate in an optional retirement program pursuant to subsection C of this section, the Arizona state retirement system shall transfer the employee's contributions to the Arizona state retirement system and interest as determined by the board of the Arizona state retirement system to the optional retirement program within the later of ninety days after the election or ninety days after receipt by the optional retirement program of a favorable letter of determination issued by the United States internal revenue service. If an eligible employee fails to make an election as provided in subsection C of this section, the employee is deemed to have elected to participate in the Arizona state retirement system. The election to participate in an optional retirement program is irrevocable and constitutes a waiver of all benefits provided by the Arizona state retirement system. All eligible employees who elect to participate in an optional retirement program shall remain participants in the optional retirement program during the continuance of employment with the community college district.

E. The community college district board shall make contributions from public monies appropriated or any other monies available for this purpose on behalf of each participant in the optional retirement program in an amount that is at least equal to the employer contribution prescribed in title 38, chapter 5, article 2.

F. Subject to subsection H of this section, each community college district board that establishes an optional retirement program shall establish program provisions, including:

Categories of employees that are eligible to elect to participate in the optional retirement program.
The employee contribution rate. This rate may be greater than the employee contribution rate prescribed in title 38, chapter 5, article 2.
A vesting period for employer contributions, if any. All employee contributions that are picked up by the employer are fully vested at all times.
Restrictions on benefits, except that the optional retirement program shall not allow a participant to withdraw employer contributions except as retirement income payable for life or to provide for loans on retirement income.

G. A community college district board may elect to provide health or long-term disability coverage to optional retirement program participants under separate benefit plans. The community college district board may allocate a portion of its employer contribution that would otherwise be made to the optional retirement program under subsection E of this section to the separate benefit plans to provide health or long-term disability coverage.

H. Community college district boards that establish an optional retirement program under this section may enter into intergovernmental agreements appointing a single administrator or designating a single community college district board to administer the optional retirement program. A community college district board may satisfy the requirements of this section by entering into an intergovernmental agreement with another community college district board to participate in that community college district's optional retirement program. The administration shall include, without limitation, the design and implementation of the plan document establishing the optional retirement program, compliance with the qualification requirements prescribed in subsection B of this section and such other duties that are not inconsistent with this section as may be delegated to the administrator pursuant to the intergovernmental agreements entered into among the community college district boards.

I. Although designated as employee contributions, all employee contributions made to an optional retirement program shall be picked up and paid by the community college district in lieu of contributions by the employee. The contributions picked up by a community college district may be made through a reduction in the employees' salary or an offset against future salary increases, or a combination of both. The employees participating in the optional retirement program do not have the option of choosing to receive the contributed amounts directly instead of the community college district paying the amounts to the optional retirement program. It is intended that all employee contributions that are picked up by the community college district as provided in this subsection shall be treated as employer contributions under section 414(h) of the internal revenue code and shall be excluded from the employees' gross income for federal and state income tax purposes and are includable in the gross income of the employees or their beneficiaries only in the taxable year in which they are distributed.

J. A community college district board shall not be liable to any employee, retiree or other person for any reason relating to the community college district board's provision of or failure to provide for an optional retirement program or health or long-term disability coverage.

§ 15-1452 Evaluation of vocational and technological education programs

A district board shall provide for the evaluation of vocational and technological education programs once every five years. The assessment shall be conducted in cooperation with and with assistance from business, industry and labor representatives. The district board may conduct a self-evaluation.

§ 15-1453 Energy and water savings accounts

A district board may establish an energy and water savings account in the same manner as a school district pursuant to section 15-910.02 and may fund and use monies for guaranteed energy savings contracts pursuant to section 34-105.

Article 4 Community College District Finance

§ 15-1461 District budget; annual estimate; computation; notice; hearing; adoption

A. Not later than June 5, each district established pursuant to this chapter, and any other community college established prior to the enactment of this chapter, shall prepare a proposed budget for the budget year on a form which the auditor general prescribes to be transmitted to the district board. The proposed budget shall be accompanied by an estimate of the amount of funds needed for the ensuing year as determined by the district based on the proposed budget prepared by it.

B. The district shall establish and set forth in the proposed budget the per capita expenditure per full-time equivalent student, which shall be the total operational expenses.

C. The district shall establish and set forth in the proposed budget the per capita expenditure per full-time equivalent student, which shall be the total capital outlay expenses.

D. The number of basic full-time equivalent students shall be computed by dividing the total community college credit units by fifteen per semester and shall be based on regular day enrollment. The number of additional short-term full-time equivalent students shall be computed by dividing the total community college credit units from additional short-term classes by thirty. The number of skill center full-time equivalent students shall be computed by dividing the total number of clock hours in approved vocational training programs by six hundred forty.

E. The governing board of each district shall prepare a notice fixing a time not later than June 20 and designating a public place within each district at which a public hearing and special board meeting shall be held. The governing board of each district shall publish a notice of the public hearing and special board meeting not later than fifteen days before the meeting. The governing board shall publish the proposed budget on its website and present the proposed budget for consideration of the residents and the taxpayers of the district at such meeting.

F. The proposed budget shall contain but need not be limited to the following information:

The estimated cost of all operational, capital outlay and debt service expenses.
The percentage of increase or decrease in each budget category as compared to each category of the budget for the current year.
The total amount of revenues by source that was necessary to meet the district's budget for the current year.
The total amount of revenues by source that will be necessary to meet the proposed district budget.
The total property tax levy of the district for the current year.
The levy for primary property taxes and the levy for secondary property taxes for the current year.
The primary property tax rate and secondary property tax rate for the current year.
The estimated amount of total property tax levies for the district and the primary property tax and secondary property tax components thereof necessary for the budget year.
The maximum amount of primary property tax dollars which the district is permitted to levy pursuant to title 42, chapter 17, article 2 for the budget year.
The amount of secondary property tax dollars which the district will levy for the budget year.
The amount of monies received from primary property taxation in the previous fiscal year in excess of the maximum allowable amount as calculated pursuant to title 42, chapter 17, article 2.
Beginning in fiscal year 2013-2014, the total estimated personnel compensation, which shall separately include employee salaries and employee related expenses for retirement costs and health care costs.
Beginning in fiscal year 2013-2014, all unencumbered cash, both restricted and unrestricted.

G. The governing board shall publish the proposed budget and the notice of the public hearing and special board meeting a second time not later than five days prior to the meeting. Publication shall be made in a newspaper of general circulation within the district. The cost of publication shall be a charge against the district. If a truth in taxation notice and hearing is required under section 15-1461.01, the district may combine the notice and hearing under this section with the truth in taxation notice and hearing. Beginning in fiscal year 2013-2014, within seven days after the adoption of the proposed budget presented before the governing board, the budget finally adopted under this section shall be accessible in a prominent location on the district's official website and the final adopted budget shall be retained on the website for at least sixty months.

H. If the district fails to publish the proposed budget, notice and statements required by subsection F of this section, the board of supervisors shall levy on the property in the district the lesser of the amount of primary property taxes which were levied for the district in the current year or the amount which would be produced by the primary property tax rate which was levied for the district in the current year.

I. At the time and place fixed in the notice, the members of the governing board shall hold the public hearing and present the proposed budget to the persons attending the hearing. Upon request of any person, the governing board shall explain the budget and any resident or taxpayer of the district may protest the inclusion of any item in the proposed budget.

J. Immediately following the public hearing the chairman shall call to order the special board meeting for the purpose of adopting the budget. The governing board shall adopt the budget making deductions from the budget as it sees fit but making no additions to the budget and shall enter the budget as adopted in its minutes. The governing board shall not adopt the budget if the property tax requirements of the budget, excluding amounts budgeted and levied for secondary property taxes, exceed the amounts authorized pursuant to title 42, chapter 17, article 2.

§ 15-1461.01 Truth in taxation notice and hearing; roll call vote on tax increase; definition

A. On or before February 10 of the tax year, the county assessor shall transmit and certify to the property tax oversight commission and to the district governing board the total net assessed values that are required to compute the levy limit prescribed by section 42-17051. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied in the preceding tax year by the district:

The district governing board shall publish a notice that meets all of the following requirements:

(a) Is published twice in a newspaper of general circulation in the district. The first publication shall be at least fourteen but not more than twenty days before the date of the hearing. The second publication shall be at least seven but not more than ten days before the date of the hearing.

(b) Is published in a location other than the classified or legal advertising section of the newspaper in which it is published.

(d) Is in the following form, with the "truth in taxation hearing-notice of tax increase" headline in at least eighteen-point type:

Truth in Taxation Hearing

Notice of Tax Increase

In compliance with section 15-1461.01, Arizona Revised Statutes, (name of community college district) is notifying its property taxpayers of (name of community college district's) intention to raise its primary property taxes over last year's level. The (name of community college district) is proposing an increase in primary property taxes of $__________ or _____%.

For example, the proposed tax increase will cause (name of community college district's) primary property taxes on a $100,000 home to be $(total proposed taxes including the tax increase). Without the proposed tax increase, the total taxes that would be owed on a $100,000 home would have been $_____.

This proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held (date and time) at (location).

(e) Is included in the proposed budget and in the budget finally adopted pursuant to section 15-1461.

In lieu of publishing the truth in taxation notice, the district board may mail the truth in taxation notice prescribed by paragraph 1, subdivision (d) of this subsection to all registered voters in the district at least ten but not more than twenty days before the date of the hearing.
In addition to publishing the truth in taxation notice under paragraph 1 of this subsection or mailing the notice under paragraph 2 of this subsection, the district governing board shall issue a press release containing the truth in taxation notice to all newspapers of general circulation in the district. The press release must:

(a) Include the name of the newspaper of general circulation in which the truth in taxation notice will be published and the dates on which the truth in taxation notice will be published.

(b) Be posted on the official website of the community college district.

The district board shall consider a motion to levy the increased property taxes by roll call vote. If the proposed levy, exclusive of increased property taxes received from new construction, constitutes an increase over the preceding tax year's levy by fifteen percent or more, the motion to levy the increased property taxes must be approved by a unanimous roll call vote of the district board.
Within three days after the hearing, the district board shall mail a copy of the truth in taxation notice, a statement of its publication or mailing and the result of the district board's vote under paragraph 4 of this subsection to the property tax oversight commission established by section 42-17002.
The district board shall hold the truth in taxation hearing on or before the adoption of the county, city or town budget under section 42-17105.

B. If the governing board fails to comply with the requirements of this section, the governing board shall not fix, levy or assess an amount of primary property taxes that exceeds the preceding year's amount, except for amounts attributable to new construction.

C. For the purposes of this section, "amount attributable to new construction" means the net assessed valuation of property added to the tax roll since the previous year multiplied by a property tax rate computed by dividing the district's primary property tax levy in the preceding year by the estimate of the district's total net assessed valuation for the current year, excluding the net assessed valuation attributable to new construction.

§ 15-1462 Special tax levy for maintenance or capital outlay of district; proration of monies

A. The board of supervisors in each district may supply funds from other designated sources or, in lieu thereof, shall annually, at the time of levying other taxes, levy a special community college tax on property to be determined by each county comprising the district for the purpose of maintaining the district or for capital outlay. For purposes of this subsection "capital outlay" means the expenditures which result in the acquisition of fixed properties such as land, temporary, permanent or portable buildings and development or permanent improvements to land or construction of buildings. The tax shall be at a rate sufficient to provide the amount proposed in the annual estimate of funds as needed to maintain the district for the current fiscal year, after deducting from the total estimate the amount of funds appropriated for the district by the legislature, but shall not be in excess of the levy limitation prescribed in title 42, chapter 17, article 2. The tax shall be added to and collected in the same manner as other county taxes on property. The amount of the special community college tax shall be paid into the community college fund of the county.

B. For the first year of operation monies shall be prorated to each county within a district in the ratio that the number of high school graduates of each county within the district bears to the total number of high school graduates in all counties within the district. Thereafter, proration of monies shall be to each county within a district in the ratio that the number of full-time equivalent students of each county within the district bears to the total number of full-time equivalent students in all counties within the district.

§ 15-1463 State contribution for capital outlay for initial or additional campus

A. This state, by legislative appropriation, shall pay to the district a sum equal to fifty per cent of the total cost for capital outlay for an initial campus in a newly formed district or in a county entering into an intergovernmental agreement for providing courses pursuant to section 15-1470, not to exceed one million dollars.

B. If a district board in an existing district determines the need for an additional campus or campuses, it shall submit a request to the joint legislative budget committee for review. This state, by legislative appropriation, shall pay a sum equal to fifty per cent of the total cost for capital outlay for each approved campus within the district, but not to exceed one million dollars at any one campus, including the purchase, erection, remodeling or completion of buildings and the purchase of equipment and facilities for educational or auxiliary purposes of the community college, excluding the cost of any land granted to the district and dormitories erected for the use of students or faculty members.

§ 15-1464 State aid per capita distribution for science, technology, engineering and mathematics and workforce programs; fund; appropriation; report

A. In addition to the appropriation prescribed in section 15-1463, subsection A, this state shall pay to each community college district state aid for science, technology, engineering and mathematics and workforce programs in the following manner:

For fiscal year 1992-1993 for a community college district that had less than five thousand actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count, the amount determined by multiplying the number of actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count by two hundred seven dollars.
For fiscal year 1992-1993 for a community college district that had five thousand or more actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count, the amount determined by multiplying the number of actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count by one hundred fifty-eight dollars.
Beginning with fiscal year 1993-1994, the legislature shall adjust by the growth rate for common and high school districts as provided by law, subject to appropriation, the amount of state aid to community college districts as provided in paragraphs 1 and 2 of this subsection.

B. The basis for computing full-time equivalent students for the science, technology, engineering and mathematics and workforce programs per capita distribution shall be on the same basis as the computation prescribed in section 15-1466.01.

C. In addition to the formula to determine the appropriations prescribed in section 15-1463, subsection A and subsection A of this section, this state may pay additional amounts for science, technology, engineering and mathematics and workforce programs to a community college district based on requests from the district.

D. Appropriations for science, technology, engineering and mathematics and workforce programs made pursuant to subsections A and C of this section and section 15-1463 shall be made to an account designated as the science, technology, engineering and mathematics and workforce programs fund. Monies in the fund shall be used for science, technology, engineering and mathematics and workforce programs purposes, and the expenditures may include:

Partnerships with businesses and educational institutions.
Additional faculty for improved and expanded classroom instruction and course offerings.
Technology, equipment and technology infrastructure for advanced teaching and learning in classrooms or laboratories.
Student services such as assessment, advisement and counseling for new and expanded job opportunities.
The purchase, lease or lease-purchase of real property, for new construction, remodeling or repair of buildings or facilities on real property.

E. At the beginning of each fiscal year, the district board shall present to the department of administration a claim for the annual amount appropriated by the legislature and assigned to the district for science, technology, engineering and mathematics and workforce programs purposes. The department of administration shall draw a warrant in payment of the claim and shall transmit the warrant to the state treasurer who shall disburse the monies to the district for science, technology, engineering and mathematics and workforce programs purposes, to be expended as provided by law. If no community college exists, the department shall establish a fund for new future community college districts to be disbursed as needed.

F. Notwithstanding subsection E of this section, a community college district may request the state treasurer to disburse the monies to the local government investment pool for deposit into the district's account as established in section 35-326.

G. Each district has the option of using up to twenty percent of its total science, technology, engineering and mathematics and workforce programs aid appropriation for operating aid purposes or taking this same amount out of the district's total operating state aid appropriation and using it for science, technology, engineering and mathematics and workforce programs purposes.

H. On or before December 1 of every even-numbered year, each community college district shall submit a report of its science, technology, engineering and mathematics and workforce programs plan activities and the expenditures authorized in this section to the governor, president of the senate, speaker of the house of representatives, joint legislative budget committee and Arizona commerce authority. The report shall include the purpose and goals for which the science, technology, engineering and mathematics and workforce programs monies were expended by each district with a general accounting of the expenditures. Each community college district shall transmit a copy of this report to the secretary of state.

§ 15-1465 Election; issuance and sale of bonds for capital outlay; disposition of proceeds; proration of expenditures by counties

A. A district may conduct an election to determine whether or not bonds shall be issued and sold for the purpose of paying its share of the expenditures incurred for capital outlay. The election shall be originated and conducted, the bonds issued, sold and redeemed and a tax levy imposed for payment of interest on such bonds and redemption of bonds in accordance with title 35, chapter 3, article 3 and the limitations imposed on school districts by article IX, section 8, Constitution of Arizona, insofar as those provisions are applicable. The election shall be held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d). Bond counsel fees, financial advisory fees, printing costs and paying agent and registrar fees shall be paid from either the amount authorized by the qualified electors of the community college district or current operating funds. Bond election expenses shall be paid from current operating funds only.

B. The proceeds of all bonds sold as provided in subsection A of this section shall be used only for capital outlay, including the purchase of land, the purchase, erection, remodeling or completion of buildings and the purchase of equipment and facilities for educational or auxiliary purposes of the community college district.

C. Where a district contains more than one county, subsections A and B of this section shall be applicable separately to each of the counties as to its portion of the expenditures to be paid for capital outlay in setting up the physical plant of the district even though the proposed plant is to be established, wholly or partly, in one county of the district.

D. The portion of the expenditures for capital outlay to be prorated by each county of a district shall be determined in the ratio that the assessed valuation of each county within the district bears to the total assessed valuation of all counties within the district.

§ 15-1466 State aid; eligibility; limits

A. Subject to legislative appropriation, the legislature shall determine and appropriate the amount of state aid each fiscal year to each district possessing the qualifications as prescribed in this chapter.

B. The state shall determine the amount of state aid, as prescribed in subsection D of this section, appropriated to each district for the fiscal year before the fiscal year for which the state aid is being calculated.

C. Each district qualified under this chapter shall have its state aid adjusted in an amount that reflects the growth or decrease in the full-time equivalent student count of the district calculated as follows:

Calculate the growth or decrease in the actual, audited full-time equivalent student count between the second and third most recent fiscal years before the fiscal year for which the state aid is being calculated for each district.
Calculate the average appropriation per full-time equivalent student for all districts by dividing the amount determined in subsection B of this section by the actual, audited full-time equivalent student count for all districts in the most recent fiscal year.
Multiply the amount calculated in paragraph 1 of this subsection by the average appropriation calculated in paragraph 2 of this subsection. This amount equals the adjustment required pursuant to this section.

D. The total amount appropriated to each district each fiscal year in accordance with this section shall serve as the amount of state aid to be adjusted in the next fiscal year. A district is eligible for growth funding pursuant to this section only for the portion of its most recent audited full-time student equivalent count that exceeds the audited full-time student equivalent count recorded for the district for the most recent fiscal year in which an adjustment was previously made pursuant to subsection C of this section.

E. To be eligible for state aid, a district shall:

Be equipped with suitable buildings, equipment and campus.
Have at least three hundred twenty full-time equivalent students attending in the district.
Have complied with all of the requirements of the district board, including budgets and curriculum.

F. The total amount of state monies that may be spent in any fiscal year by a district for operating state aid shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. Notwithstanding section 15-1444, this section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose, including any duties prescribed in an employment contract entered into pursuant to section 15-1444, subsection A, paragraph 6.

G. In addition to the formula to determine the state aid appropriations prescribed in this section, this state may pay additional amounts for state aid to a district based on requests included in the district's budget request.

H. This section does not entitle a community college operated by a qualified Indian tribe to state aid for community colleges pursuant to this chapter.

§ 15-1466.01 Calculation of full-time equivalent student enrollment; report; definition

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

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

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

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

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

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

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

For the skill center and adult basic education courses full-time equivalent student enrollment, divide by six hundred forty the total class attended clock hours of persons who complete vocational training. Any student who does not complete vocational training programs by June 30 of each fiscal year is not eligible to be counted for state aid purposes until the following year.
The total of basic actual, additional short-term and open entry, open exit and skill center full-time equivalent student enrollment shall be the basis of providing state aid.
For a student who takes a course for which credit is awarded by both a community college and a high school, in which the instructor is an employee of the high school and in which the class is being taught on the high school campus during the normal high school operating hours, the amount of state aid that the community college would otherwise receive for that student shall be reduced by fifty percent.

B. For the purposes of calculating the district expenditure limitation prescribed in article IX, section 21, Constitution of Arizona, and pursuant to section 41-563, the number of full-time equivalent students shall be calculated in the following manner:

Determine the total of basic actual, additional short-term and open entry, open exit and skill center full-time equivalent students as prescribed in subsection A of this section.
Determine the number of full-time equivalent students included in paragraph 1 of this subsection who were enrolled in career and technical education courses that have been approved by the department of education in accordance with the Carl D. Perkins career and technical education improvement act of 2006, as amended by the strengthening career and technical education for the 21st century act.
Multiply the amount determined in paragraph 2 of this subsection by 0.3.
The full-time equivalent student enrollment for the purpose of the district expenditure limitation is the sum of the following:

(a) The amounts in paragraphs 1 and 3 of this subsection.

(b) The full-time equivalent student enrollment for noncredit workforce training, calculated by dividing the total class attended contact hours of persons who complete the noncredit workforce training by six hundred forty. Any student who does not complete the noncredit workforce training by June 30 of each fiscal year is not eligible to be counted for the purposes of this subdivision until the following year.

C. The full-time equivalent student enrollment reported by each district for all basic actual, additional short-term and open entry, open exit classes and skill center and adult basic education courses pursuant to subsection A of this section shall be audited annually by the auditor general. The auditor general shall audit separately any full-time equivalent student enrollment in which a student is enrolled in a course for both high school and college credit simultaneously, except for credit received at a private college or a college that is owned, operated or chartered by an Indian tribe, taking into consideration any relevant law, regulation or rule. The auditor general shall audit separately the calculation of full-time equivalent student enrollment in subsection B of this section for the purpose of the expenditure limitation for use pursuant to section 41-563. The auditor general shall report the results of the audit to the staffs of the joint legislative budget committee, the governor's office of strategic planning and budgeting and the economic estimates commission on or before October 15 of each year.

D. Pursuant to section 15-1445, paragraph 4, a community college district may submit to the economic estimates commission one of the following estimates of full-time equivalent student enrollment:

The most recent audited full-time equivalent student enrollment count calculated pursuant to subsection B of this section.
The average of the five most recent audited full-time equivalent student enrollment counts calculated pursuant to subsection B of this section.
A full-time equivalent student enrollment count that exceeds the most recent audited full-time equivalent student enrollment count calculated pursuant to subsection B of this section by up to five percent if the actual full-time equivalent student enrollment count as of forty-five days after classes begin in the current fall semester exceeds the actual full-time equivalent student enrollment count as of forty-five days after classes began in the fall semester of the previous year.

E. For the purposes of this section, "noncredit workforce training" means a noncredit workforce training or career and technical education course described in section 15-1410, subsection B.

§ 15-1466.02 Recordkeeping requirements for full-time equivalent student enrollment

A. On or before July 21 each year, each community college district shall:

Provide a certified report to the auditor general of the number of full-time equivalent students calculated by the district pursuant to section 15-1466.01.
Separately calculate and report to the auditor general any full-time equivalent student enrollment in which a student is enrolled in a course for both high school and college credit simultaneously.

B. Each community college district shall submit to the auditor general a summary of its full-time equivalent student enrollment accounting policies and procedures, compilation procedures and source records used for calculating full-time equivalent student enrollment.

C. Basic actual full-time equivalent student enrollment shall be counted on the forty-fifth day after the basic actual full-time equivalent student enrollment classes begin for the fall and spring semesters, as published in the college catalogs. Class rosters that reflect enrollment as of the forty-fifth day shall be provided by the registrar's office to each professor or instructor for every class section. The class roster shall indicate the course number, course title, time, instructor name and students enrolled. Each professor or instructor shall review the class roster and make additions or deletions as necessary. On the forty-fifth day class rosters, each professor or instructor shall indicate as withdrawn each student who has not been attending class, even if the student has not formally withdrawn from the course, and that student shall not be counted for state aid purposes. The official forty-fifth day rosters shall include a manual signature and date or an electronic authorization and date by the professor or instructor and shall include the following certification:

I hereby certify that the information contained in this class roster accurately reflects those students who are enrolled and participating.

Students who have withdrawn or who have been withdrawn from classes as of the forty-fifth day shall not be counted for state aid purposes. A record shall be maintained that identifies student withdrawals by date of withdrawal, as of the forty-fifth day and after the forty-fifth day for the entire semester.

D. Additional short-term and open entry, open exit full-time equivalent student enrollment must be counted as of June 30 of each year. Registration records shall be maintained to support the number of credit hours for additional short-term and open entry, open exit classes in which students are enrolled during the fiscal year. Final grade rosters shall be prepared that present initial enrollees, those students who withdrew from the class and those students who completed the class. The final grade rosters shall include a manual signature or electronic authorization by the professor or instructor and shall be used to support the number of credit hours claimed for full-time equivalent student enrollment. For both additional short-term and open entry, open exit classes, only students who have received a grade by June 30 may be counted as completed for state aid purposes, and students with a grade of incomplete shall not be counted.

E. Skill center, adult basic education and noncredit workforce training full-time equivalent student enrollment records shall be maintained to support the actual clock hours attended or contact hours as defined in section 15-1410 by students in skill center, adult basic education and noncredit workforce training courses.

F. Students who are simultaneously enrolled in a course for both high school and college credit and the courses, including section numbers, that the students attend shall be specifically identified in the district's full-time equivalent student enrollment records.

G. The community college district's records used to calculate full-time equivalent student enrollment counts shall be provided to the auditor general in an electronic format prescribed by the auditor general.

§ 15-1467 State aid appropriations; disbursement procedure; district fund

A. Appropriations for state aid to districts shall be distributed to each community college district in accordance with section 15-1466.

B. The state treasurer shall disburse one-fourth of the annual amount of the monies to each district in the first month of each quarter for the support and maintenance of the district, to be expended as provided by law. If no community college exists, the department shall establish a fund for new future districts to be disbursed as needed.

C. Notwithstanding subsection B of this section, a district may request the state treasurer to disburse the monies to the local government investment pool for deposit into the district's account as established in section 35-326.

§ 15-1468 Equalization aid for community college districts

A. Subject to legislative appropriation, any district that is organized pursuant to section 15-1402 and that has less than the amount of primary assessed valuation prescribed in section 15-1402 shall be paid by this state an amount equal to the following:

The difference between the prior year's actual primary assessed valuation of the district and the amount of primary assessed valuation prescribed in section 15-1402.
The actual prior year's primary property tax rate for the district.
The difference determined in paragraph 1 multiplied by the lesser of the tax rate determined in paragraph 2 or one dollar thirty-seven cents.

B. The equalization aid provided for in subsection A of this section shall be used for the same purposes specified in section 15-1462 and shall be apportioned to any qualifying district pursuant to section 15-1467.

C. This section does not apply to community college districts organized pursuant to section 15-1402.01 or to community college tuition financing districts as prescribed in section 15-1409.

§ 15-1469 Attendance of nonresident state students; payment of cost by county of residence and state

A. The district may admit students from any part of this state that is not a part of an established community college district on the same conditions as residents.

B. The county of the student's residence and this state shall reimburse the district as provided in this subsection and subsection C of this section. The total amount of reimbursement to each community college district from each county that is not a part of an organized community college district and from this state shall be determined as follows:

For students attending classes within the established community college district:

(a) Determine the number of full-time equivalent students attending classes within the district from the county for the year preceding the current year.

(b) Determine the operational expenses of the district for the current year, excluding direct and indirect costs of noncredit courses and direct and indirect costs of 300-level and 400-level community college baccalaureate degree courses.

(d) Subtract the amount of state aid received for the current year determined in subdivision (c) of this paragraph from the amount of operational expenses for the current year determined in subdivision (b) of this paragraph.

(e) Determine the number of full-time equivalent students enrolled in the district for the current year.

(f) Divide the amount determined in subdivision (d) of this paragraph by the number of full-time equivalent students determined in subdivision (e) of this paragraph.

(g) Multiply the amount determined in subdivision (f) of this paragraph by the average number of full-time equivalent students for the county determined as provided in subdivision (a) of this paragraph. The resulting amount is the total amount of reimbursement to the district from this state and from the county for the budget year for students attending classes within the established community college district. Beginning in the 2022-2023 fiscal year, this amount shall be paid to the district as prescribed in subsection C of this section.

For students attending classes offered by the district within the county pursuant to section 15-1470, the amount specified in the intergovernmental agreement is the amount of reimbursement to the district from the county for the budget year for students attending classes within the county.

C. Beginning in the 2022-2023 fiscal year, the amount calculated pursuant to subsection B, paragraph 1 of this section shall be paid to the district as follows:

The county that is not a part of an organized community college district shall reimburse the district for the budget year for students attending classes within the established community college district in an amount that is calculated as follows:

(a) Divide the amount of the primary property tax levy of the district from the prior year by the number of full-time equivalent students enrolled in the district for the current year as determined in subsection B, paragraph 1, subdivision (e) of this section.

(b) Multiply the amount calculated pursuant to subdivision (a) of this paragraph by the number of full-time equivalent students attending classes within the district from the county for the year preceding the current year as determined in subsection B, paragraph 1, subdivision (a) of this section.

An amount that is equal to the amount calculated pursuant to subsection B, paragraph 1 of this section minus the amount that is calculated pursuant to paragraph 1 of this subsection shall be paid to the district from the state general fund.

D. On or before May 15 of each year, the staff of the joint legislative budget committee shall:

Determine the total amount of reimbursement to each district from each county and this state pursuant to subsection B, paragraph 1 of this section and the amounts that each county and this state must pay to each district under subsection C of this section.
Notify the board of supervisors of each county of the amount it must reimburse to each district pursuant to subsection C, paragraph 1 of this section for the budget year.
Notify each community college district that is eligible to receive reimbursement of the amount of reimbursement from each county and this state pursuant to subsection B, paragraph 1 and subsection C of this section for the budget year.

E. On or before November 15 and May 15 of each year, the board of supervisors shall draw warrants on the county treasurer in favor of the community college district for half of the amount due pursuant to subsection B, paragraph 2 or subsection C, paragraph 1 of this section. The board of supervisors shall:

Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to an intergovernmental agreement for extension courses as provided in section 15-1470.
Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to subsection C, paragraph 1 of this section.

F. Notwithstanding subsection E of this section, a county and a community college district may specify by intergovernmental agreement that the amount of reimbursement due from the county be reduced by the value of in-kind contributions made by the county to the district.

G. For the purposes of subsection B, paragraph 1 of this section, full-time equivalent students are determined in the same manner prescribed by section 15-1466.01.

§ 15-1469.01 Payment of community college nonresident state student cost

A. Any county which is not a part of an established community college district and whose share of transaction privilege taxes, apportioned pursuant to section 42-5029, subsection D, totals less than one per cent of the total distribution base apportioned to all counties shall have any reimbursement to a community college district prescribed by section 15-1469 paid by the state.

B. The state treasurer shall reduce the apportionment pursuant to section 42-5029 to any county whose community college reimbursement as prescribed in section 15-1469 is eligible to be paid by the state pursuant to subsection A of this section by the amount of the reimbursement paid by the state. The state treasurer shall deposit the amount of the reduction in the state general fund.

C. Community college reimbursement payments made by the state on behalf of a county pursuant to this section shall be included under the state appropriation limitation established pursuant to article IX, section 17, Constitution of Arizona, and shall not be included under county expenditure limitations established pursuant to article IX, section 20, Constitution of Arizona.

§ 15-1470 Community college courses; intergovernmental agreement

A. A district may offer credit and noncredit courses and services outside of the district in other districts within this state.

B. A district may offer credit and noncredit courses and services outside of the district in counties within this state without an organized district.

C. A district may offer credit and noncredit courses and services outside of this state. A district is not entitled to state aid payments for students who are provided courses and services outside of this state.

D. Before a district may offer courses pursuant to subsection A, the district shall enter into an intergovernmental agreement with the district of the county in which the courses will be held.

E. Before a district may offer courses pursuant to subsection B, the district shall enter into an intergovernmental agreement with the board of supervisors of the county in which the courses will be held. The district and the county shall negotiate the amount of reimbursement payable by the county to the district for courses conducted within the county no later than July 1.

F. The intergovernmental agreement entered into as provided in subsection E may not require or permit the county to reimburse the district for noncredit classes.

G. The intergovernmental agreement entered into as provided in this section shall include provisions for an alternative dispute resolution.

§ 15-1471 Expenditure limitations; overrides

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

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

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

D. A district board, by an affirmative vote of two-thirds of the members of the board, may refer to the voters in the district a permanent change in the base limit used to determine the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona. A permanent change in the base limit may be authorized on the approval of a majority of the qualified electors in the district voting at a regularly scheduled election on the first Tuesday after the first Monday in November. The impact of the authorization shall appear on the ballot and in publicity pamphlets in the same manner as prescribed in section 41-563.03.

E. In the resolution requesting the voters to approve a permanent change in the base limit used to determine the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, the district board shall state all of the following:

The current base limit used to determine the district expenditure limitation.
The proposed base limit to be used to determine the district expenditure limitation.
The increase in expenditure limitation capacity generated by a change in the base limit for the most recent calculated expenditure limitation.
A rationale for the request to authorize a permanent change in the base limit used in the calculation of the expenditure limitation.

F. Any authorization of a permanent change in the base limit pursuant to subsection D of this section shall be used in determining an expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, beginning with the fiscal year immediately following the approval of the permanent change by the qualified electors of the district.

§ 15-1472 Community college district workforce development accounts; reports

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

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

Partnerships with businesses and educational institutions.
Additional faculty for improved and expanded classroom instruction and course offerings.
Technology, equipment and technology infrastructure for advanced teaching and learning in classrooms or laboratories.
Student services such as assessment, advisement and counseling for new and expanded job opportunities.
The purchase, lease or lease-purchase of real property, for new construction, remodeling or repair of buildings or facilities on real property.

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

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

For thirteen fiscal years beginning in fiscal year 2001-2002 the state treasurer shall allocate one million dollars per fiscal year for the purpose of bringing this state into compliance with the matching capital requirements prescribed in section 15-1463. The state treasurer shall distribute the monies authorized in this subsection to each district in the order in which each campus qualified for funding pursuant to section 15-1463.
After the monies have been paid each year to the eligible districts pursuant to paragraph 1 of this subsection, the state treasurer shall distribute monies from the workforce development fund to each community college district in the following manner:

(a) Each district shall receive the sum of two hundred thousand dollars. This subdivision does not apply to a community college tuition financing district established pursuant to section 15-1409.

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

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

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

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

§ 15-1473 Uniform system of accounting for community college districts; duties of auditor general; posting; budget; accepting audit results

A. The auditor general shall determine the accounting systems, accounting methods and accounting procedures for use by the community college districts.

B. The auditor general, in conjunction with the community college districts, shall prescribe a uniform system of accounting as provided in section 41-1279.21 for use by all community college districts.

C. The financial statements required to be filed with the auditor general pursuant to section 41-1279.07 must be posted in a prominent location on the official website of the community college district not later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months. If the financial statements are not filed pursuant to section 41-1279.07, the form as prescribed by subsection D of this section shall be posted on the website of the community college district in place of the financial statements until the financial statements are filed.

D. If the financial statements for a community college district are not completed and filed as prescribed by section 41-1279.07 on or before the adoption of the community college district budget in the subsequent fiscal year, the board of directors must include a form, prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to section 15-1461 stating that the financial statements required to be filed with the auditor general pursuant to section 41-1279.07 are pending, the reasons for the delay and the estimated date of completion.

E. If the community college district board of directors is required to complete the form as prescribed by subsection D of this section, the board of directors shall send a copy of the form to the auditor general, the speaker of the house of representatives and the president of the senate.

F. Within ninety days after completing an audit pursuant to this section, the community college district board of directors shall require the auditor who performed the audit to present the audit results and any findings to the board in a regular meeting without the use of a consent agenda, and the board shall demonstrate compliance with section 41-1494.

Article 5 Issuance of Bonds for Revenue Producing Buildings

§ 15-1481 Definitions

In this article, unless the context otherwise requires:

"Acquire" includes purchase, erect, build, construct, reconstruct, repair, replace, extend, better, furnish, equip, develop, improve and embellish.
"Board" means the governing board of a community college district or its successors, but does not include community college tuition financing districts as prescribed in section 15-1409.
"Bonds" means any bonds issued pursuant to this article.
"Federal agency" means the housing and home finance agency, the United States of America or any of its officers or agencies designated or created to make grants or loans of monies for public construction work.
"Institution" means any community college district that is organized in this state pursuant to section 15-1402 or 15-1402.01, but does not include community college tuition financing districts as prescribed in section 15-1409.
"Project" means one or more classrooms, student or faculty residence halls, dormitories, dining halls, student union buildings, field houses, stadia and other revenue producing buildings located at the institution, together with sites for the buildings, and includes equipment, furnishings, heating, lighting and other service facilities in connection with the buildings.

§ 15-1482 Powers

The board shall have power, for and in behalf of the institution, to:

Acquire any project or projects and own, operate and maintain the same.
Accept grants or loans of monies from a federal agency.
Borrow monies and issue bonds and provide for the payment of the same and for the rights of the holders thereof.
Perform all acts and do all things necessary or convenient to carry out the powers granted by this article.

§ 15-1483 Issuance of bonds

A. The board for and on behalf of an institution is authorized from time to time to issue negotiable bonds for the purpose of acquiring a project or projects. The bonds shall be authorized by resolution of the board. The bonds may be issued in one or more series, bear such date or dates, be in such denomination or denominations, mature at such time or times, not exceeding forty years from the respective dates thereof, mature in such amount or amounts, bear interest at such rate or rates, as determined by the board, payable semiannually, be in such form either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such term of redemption, with or without premium, as such resolution or other resolutions may provide. The bonds may be sold at not less than par at either public or private sale. The bonds shall be fully negotiable within the meaning and for all the purposes of title 47, chapter 3.

B. Before the issuance of bonds that do not require voter approval, a district shall submit information regarding the planned projects that will be funded with the bond proceeds to the joint committee on capital review for review.

§ 15-1484 Powers to secure bonds

A. In connection with the issuance of the bonds authorized by section 15-1483, or in order to secure the payment of such bonds and interest thereon, the board shall have power by resolution to:

Fix and maintain tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
Provide that bonds issued under this article may be secured by a first, exclusive and closed lien on all or any certain part of the income and revenue derived from, and shall be payable from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
Pledge and assign to, or in trust for the benefit of, the holder or holders of the bonds issued hereunder an amount of the income and revenue derived from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
Covenant with or for the benefit of the holder or holders of bonds issued under this article to acquire any project, that as long as any such bonds remain outstanding and unpaid the board will fix, maintain and collect in such installments as may be agreed upon an amount of the tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project, which shall be sufficient to pay when due the bonds issued hereunder to acquire such project, and interest thereon, and to create and maintain reasonable reserves therefor and to pay the costs of operation and maintenance of such project including, but not limited to, reserves for extraordinary repairs, insurance and maintenance, which costs of operation and maintenance shall be determined by the board in its absolute discretion.
Make and enforce and agree to make and enforce parietal rules that shall insure the use of any project by all students in attendance at the institution to the maximum extent to which such project is capable of serving such students, or if any part of the project is designed for occupancy as living quarters for the faculty members, by as many faculty members as may be served thereby.
Covenant that as long as any of the bonds issued under this article remain outstanding and unpaid it will not, except upon such terms and conditions as may be determined:

(a) Voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien of the bonds issued under this article upon any of the income and revenues derived from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.

(b) Convey or otherwise alienate the project to acquire which such bonds shall have been issued or the real estate upon which such project shall be located, except at a price sufficient to pay all the bonds then outstanding issued under this article to acquire such project and interest accrued thereon, and then only in accordance with any agreements with the holder or holders of such bonds.

(c) Mortgage or otherwise voluntarily create or cause to be created any encumbrance on the project to acquire which such bonds shall have been issued or the real estate upon which it shall be located.

Covenant as to the procedure by which the terms of any contract with a holder or holders of such bonds may be amended or abrogated, the amount or percentage of bonds the holder or holders of which must consent to an amendment or abrogation and the manner in which such consent may be given.
Vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds, and execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute events of default and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds of any specified amount or percentage of such bonds may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.
Vest in a trustee or trustees or the holder or holders of any specified amount or percentage of bonds the right to apply to any court of competent jurisdiction for, and have granted, the appointment of a receiver or receivers of the income and revenue pledged and assigned to or for the benefit of the holder or holders of such bonds, which receiver or receivers may have and be granted such powers and duties as such court may order or decree for the protection of the bondholders.
Make covenants with any federal agency, private agency, corporation or individual to perform any and all acts and to do any and all such things as may be necessary or convenient or desirable in order to secure such bonds or as may in the judgment of the board tend to make the bonds more marketable, notwithstanding that such acts or things may not be enumerated herein, and to lease any project for the best interests of the institution, and to perform all acts and to do all things not inconsistent with the constitution of this state as may be necessary or convenient or desirable for the issuance of such bonds and for their security.
Enter into any and all contracts and agreements necessary to accomplish the acquisition of the project or projects including agreements for construction, engineering and architectural services and agreements covering disposition and application of the proceeds received from the sale of the bonds.

B. No bond shall be issued pursuant to this section for any institution that causes the total aggregate face amount of all bonds issued pursuant to this section to have maximum annual debt service that exceeds, in any fiscal year, more than eight per cent of such institution's current expenditures less any expenditures for retirement of general obligation bonds principal or interest, or both. General obligation bonds are excluded from this provision. For the purposes of this section, the amount of the institution's current expenditures less any expenditures for retirement of general obligation bonds principal or interest, or both, shall be determined by reference to the most recently adopted budget of the institution as of the date of issuance of bonds issued pursuant to this section.

§ 15-1485 Monies of institution

No monies derived from the sale of bonds under the provisions of this article shall be required to be paid into the state treasury but shall be deposited by the treasurer of the board in a separate bank account or accounts in such bank or banks or trust company or trust companies as may be designated by the board, and all deposits of such monies shall, if required by the board, be secured by obligations of the United States of America of a market value equal at all times to the amount of the deposit, and all banks and trust companies are authorized to give such security. Such monies shall be considered as held for and on behalf of the institution for which the bonds have been issued. Such monies shall be disbursed as may be directed by the board and in accordance with the terms of any agreements with the holder or holders of any bonds. This section shall not be construed as limiting the power of the board to agree in connection with the issuance of the bonds as to the custody and disposition of the monies received from the sale of such bonds or the income and revenue pledged and assigned to or in trust for the benefit of the holder or holders thereof.

§ 15-1486 Validity of bonds

The bonds bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon shall have ceased to be officers of the board. The validity of the bonds shall not be dependent on nor affected by the validity or regularity of any proceedings to acquire the project financed by the bonds or taken in connection therewith.

§ 15-1487 Prohibitions against obligating the state of Arizona

Nothing in this article shall be construed to authorize the board to contract a debt on behalf of, or in any way to obligate, the state of Arizona, or to pledge, assign or encumber in any way or to permit the pledging, assigning or encumbering in any way of appropriations made by the legislature or revenue derived from the investment of the proceeds of the sale and from the rental of such lands as have been set aside by the enabling act approved June 20, 1910, or other legislative enactments of the United States, for the use and benefit of the institution.

§ 15-1488 Bonds obligations issued for and on behalf of institutions

All bonds issued pursuant to this article shall be obligations issued by the board for and on behalf of the institution payable only in accordance with the terms thereof, and shall not be obligations general, special or otherwise of the state of Arizona. Such bonds shall not constitute a debt, legal or moral, of the state of Arizona, and shall not be enforceable against this state, nor shall payment thereof be enforceable out of any funds of the institution issuing said bonds other than the income and revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of such bonds. No institution shall be dissolved until all of the bonds issued by the board for and on behalf of the institution have been paid in full.

§ 15-1489 Certification of bonds by attorney general

The board may submit to the attorney general of the state of Arizona any bonds to be issued under this article after all proceedings for the issuance of such bonds have been taken. Upon the submission of such proceedings to the attorney general, it shall be his duty to examine into and pass upon the validity of the bonds and the regularity of all proceedings in connection therewith. If such proceedings conform to the provisions of this article, and if the bonds when delivered and paid for will constitute binding and legal obligations authorized by the board for and on behalf of the institution, enforceable according to the terms thereof, the attorney general shall certify in substance upon the back of each of said bonds that it is issued in accordance with the constitution and laws of the state of Arizona.

§ 15-1490 Excision of unconstitutional or ineffective parts of article

It is declared that the sections, clauses, sentences and parts of this article are severable, are not matters of mutual essential inducement and any of them may be excised by any court of competent jurisdiction if this article would otherwise be unconstitutional or ineffective. It is the intention of this article to confer upon the board, for and on behalf of the institution, all or any part of the powers in this article provided for, and if any one or more sections, clauses, sentences or parts of this article shall for any reason be questioned in any court of competent jurisdiction and shall be adjudged unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions thereof, but shall be confined in its operation to the specific provision or provisions so held unconstitutional or invalid, and the inapplicability or invalidity of any section, clause, sentence or part of this article in any one or more instances shall not be taken to affect or prejudice its applicability or validity in any other instance.

§ 15-1491 Supplemental nature of article; construction and purpose

The powers conferred by this article shall be in addition to and supplemental to the powers conferred by any other law, general or special, and bonds may be issued under the provisions of this article notwithstanding the provisions of and without regard to the procedure required by any other such law. Insofar as the provisions of this article are inconsistent with the provisions of any other law, general or special, the provisions of this article shall be controlling.

Chapter 13 Universities

Article 1 Universities

§ 15-1601 State universities; location; faculty powers; report

A. The Arizona board of regents shall maintain state universities at Flagstaff in Coconino county, at Tempe in Maricopa county and at Tucson in Pima county, and the universities are respectively designated northern Arizona university, Arizona state university and the university of Arizona. The board shall maintain an Arizona state university campus in western Maricopa county designated as Arizona state university west campus and an Arizona state university campus in eastern Maricopa county designated as Arizona state university east campus. The board may establish and maintain other colleges and universities subject to legislative authority. Subject to review by the joint committee on capital review, the board may establish new campuses that are separate from any location in existence on July 1, 2007. The Arizona state university campus at Tempe shall provide administrative support for the Arizona state university campuses in western Maricopa county and in eastern Maricopa county.

B. The universities shall have colleges, schools and departments and give courses of study and academic degrees as the board approves. Subject to the responsibilities and powers of the board and the university presidents, the faculty members of the universities, through their elected faculty representatives, shall share responsibility for academic and educational activities and matters related to faculty personnel. The faculty members of each university, through their elected faculty representatives, shall participate in the governance of their respective universities and shall actively participate in the development of university policy.

C. On or before November 15 of each year, Arizona state university shall report to the joint legislative budget committee, the governor's office of strategic planning and budgeting, the speaker of the house of representatives and the president of the senate for each of its separate campuses all of the following:

The capital expenditure history made to each campus for each of the two previous fiscal years.
The actual number of full-time equivalent students at each campus of Arizona state university as of the twenty-first day after classes begin for the fall semester and the total headcount enrollment at each campus.
Any revenues or allocations made to each campus of Arizona state university that are available to report.
Any long-term capital or expansion plans for each campus.

§ 15-1606 Correspondence and extension courses

The universities may offer extension courses at places within the state other than the city where the institution is located, and correspondence courses may be given.

Article 2 Arizona Board of Regents

§ 15-1621 Members; appointment; terms; oath; immunity

A. The Arizona board of regents consists of ten appointive members, including two student members, and the governor and the superintendent of public instruction as ex officio members.

B. Appointive members, except the student members, shall be appointed by the governor pursuant to section 38-211. The term of each appointive member, except the student members, is eight years, to begin and end on the third Monday in January.

C. The governor shall appoint two student members to serve staggered terms. Each year the governor shall designate on a rotation basis a university under the jurisdiction of the Arizona board of regents to submit a list of nominees for the position of student member. The associated students' organization of the designated university, by majority vote of its governing body, shall select three nominees for student member. The governor shall consider the three nominees when making the appointment of the student member but may appoint any qualified student. Before adjournment of the regular session of the legislature, the governor shall submit to the senate for consent of the senate the name of the nominee for student member whose term is to begin on July 1. A student nominated for a full term may not serve until confirmed by the senate. A student member must be a person who is legally domiciled in this state and attends a university under the jurisdiction of the Arizona board of regents on a full-time basis. In the first year of the term the student member may exercise all rights and privileges of a board member, except the right to vote. In the second year of the term the student member may exercise all rights and privileges of a board member, including the right to vote. The term of each student member is two years, beginning on July 1. The governor may remove the student members for cause. A student member who graduates with no more than seven months remaining in the second year of a term may serve the remainder of the term. A vacancy in the office of student member shall be filled as follows:

If a vacancy occurs during the first year of a student member's term, the office shall be filled for the unexpired term. A student member nominated by the governor to fill a vacancy pursuant to this paragraph may serve the balance of the term without being confirmed by the senate.
If a vacancy occurs during the second year of a student member's term, the remaining student member shall assume all rights and privileges of a board member, including the right to vote. A new student member shall be nominated to a two year term to begin on July 1 as provided in this subsection.

D. On expiration of the term in January 2008 of two members of the Arizona board of regents, the governor shall appoint two members who reside in a county with a population of less than eight hundred thousand persons pursuant to section 38-211. One member shall be selected from Apache, Coconino, Gila, Mohave, Navajo or Yavapai county and one member shall be selected from Cochise, Graham, Greenlee, La Paz, Pinal, Santa Cruz or Yuma county. Notwithstanding subsection B of this section, the initial term of one of the members appointed pursuant to this subsection shall be four years to begin and end on the third Monday in January. Thereafter, the governor shall appoint each member pursuant to this subsection for terms beginning on the third Monday of January of the year of the expiration of the term and ending on the third Monday of January eight years thereafter. This subsection does not preclude the governor from appointing more than two members who reside in a county with a population of less than eight hundred thousand persons at one time to the Arizona board of regents. The governor shall make subsequent appointments to replace the terms of members pursuant to this subsection in the same manner.

E. Each appointive member of the board shall take the oath of office before entering upon the duties of the member's office.

F. Members of the board are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings with approval of a majority of the board.

§ 15-1622 Officers; organization; quorum

A. The board shall select from its membership a president, secretary, treasurer and such other officers it deems necessary. The same person shall not hold the offices of secretary and treasurer. The board may require the treasurer to give additional bond.

B. A majority of the membership of the board shall constitute a quorum for transaction of business at any meeting regularly called, but a number less than a quorum may adjourn from time to time.

§ 15-1623 Compensation of members

A. The secretary of the Arizona board of regents shall receive compensation as determined pursuant to section 38-611.

B. Appointed members shall receive compensation as determined pursuant to section 38-611 for each day of attendance at board meetings, except the compensation of no member of the board shall exceed five hundred dollars in any year.

§ 15-1624 Meetings of board advisory committees; student records; executive session

Notwithstanding the provisions of section 38-431.01, subsection A, meetings of advisory committees to the board involving student records may be held in executive session. A student whose records are to be considered may request that the meeting be held as a public meeting in which case the meeting pertaining to such student's records shall not be in executive session.

§ 15-1625 General powers of board as body corporate

A. The Arizona board of regents is a body corporate with perpetual succession. The board has jurisdiction and control over the universities.

B. The board may:

Adopt a corporate seal.
Contract.
Sue and be sued.
Purchase, receive, hold, make and take leases and long-term leases of and sell real and personal property for the benefit of this state and for the use of the institutions under its jurisdiction.

§ 15-1626 General administrative powers and duties of board; definition

A. The Arizona board of regents shall:

Have and exercise the powers necessary for the effective governance and administration of the institutions under the board's control. To that end, the board may adopt, and authorize each university to adopt, regulations, policies, rules or measures as are deemed necessary and may delegate in writing to the board's committees, to university presidents, or the presidents' designees, or to other entities under the board's control, any part of the board's authority for the administration and governance of those institutions, including those powers enumerated in section 15-1625, subsection B, paragraphs 2 and 4, paragraphs 3, 4, 8, 9, 11, 12 and 22 of this subsection and subsection B of this section. Any delegation of authority may be rescinded by the board at any time in whole or in part.
Appoint and employ and determine the compensation of presidents with the power and authority and for the purposes in connection with the operation of the institutions as the board deems necessary.
Appoint and employ and determine the compensation of vice presidents, deans, professors, instructors, lecturers, fellows and the other officers and employees with the power and authority and for the purposes in connection with the operation of the institutions as the board deems necessary, or delegate the board's authority pursuant to paragraph 1 of this subsection.
Remove any officer or employee when the interests of education in this state so require in accordance with the board's personnel rules and policies.
Fix tuitions and fees to be charged and differentiate the tuitions and fees between institutions and between residents, nonresidents, undergraduate students, graduate students, students from foreign countries and students who have earned credit hours in excess of the credit hour threshold. For the purposes of this paragraph, the undergraduate credit hour threshold is one hundred forty-five hours for students who attend a university under the jurisdiction of the board. The undergraduate credit hour threshold shall be based on the actual full-time equivalent student enrollment counted on the forty-fifth day of every fall and spring semester, divided by two, and any budget adjustment based on student enrollment shall occur in the fiscal year following the actual full-time equivalent student enrollment count. The undergraduate credit hour threshold shall not apply to degree programs that require credit hours above the credit hour threshold, credits earned in the pursuit of up to two baccalaureate degrees, credits earned in the pursuit of up to two state regulated licensures or certificates, credits earned in the pursuit of teaching certification, credits transferred from a private institution of higher education, credits transferred from an institution of higher education in another state, credits earned at another institution of higher education but that are not accepted as transfer credits at the university where the student is currently enrolled and credits earned by students who enroll at a university under the jurisdiction of the board more than twenty-four months after the end of that student's previous enrollment at a public institution of higher education in this state. On or before October 15 of each year, the board shall report to the joint legislative budget committee the number of in-state students and out-of-state students who were enrolled at universities under the jurisdiction of the board during the previous fiscal year and who met or exceeded the undergraduate credit hour threshold prescribed in this paragraph. The amount of tuition and fees included in the operating budget for the university adopted by the board as prescribed in paragraph 13 of this subsection is subject to legislative appropriation and shall be deposited in a separate tuition and fees subaccount for each university. All other tuition and fee revenue shall be retained by each university for expenditure as approved by the board in a separate local tuition and fees subaccount for each university. This subaccount shall consist of only tuition and fees. The universities shall not use any tuition or fee revenue to fund or support an alumni association.
Adopt rules to govern the board's tuition and academic fee setting process that provide for the following:

(a) At least one public hearing at each university as an opportunity for students and members of the public to comment on any proposed increase in tuition or fees.

(b) Publication of the notice of public hearing at least ten days before the hearing in a newspaper of general circulation in Maricopa county, Coconino county and Pima county. The notice shall include the date, time and location of the public hearing.

(c) Public disclosure by each university of any proposed increases in tuition or fees at least ten days before the public hearing.

(d) A roll call vote of any final board action on changes in tuition, including tuition rate changes for online programs, or academic fees.

(e) Public disclosure by the board and each university of any final board action on changes in tuition or academic fees.

Pursuant to section 35-115, submit a budget request for each institution under the board's jurisdiction that includes the estimated tuition and fee revenue available to support the programs of the institution as described in the budget request. The estimated available tuition and fee revenue shall be based on the tuition and registration fee rates in effect at the time the budget request is submitted with adjustments for projected changes in enrollment as provided by the board.
Establish curricula and designate courses at the several institutions that in the board's judgment will best serve the interests of this state.
Award degrees and diplomas on the completion of the courses and curriculum requirements that the board deems appropriate.
Prescribe qualifications for admission of all students to the universities. The board shall establish policies for guaranteed admission that ensure fair and equitable access to students in this state from public, private and charter schools and homeschools. For the purpose of determining the qualifications of honorably discharged veterans, veterans are those persons who served in the armed forces for at least two years and who were previously enrolled at a university or community college in this state. Prior failing grades received by a veteran at the university or community college in this state may not be considered.
Adopt any energy conservation standards adopted by the department of administration for the construction of new buildings.
Employ for the time and purposes that the board requires attorneys whose compensation shall be fixed and paid by the board. Litigation to which the board is a party and for which self-insurance is not provided may be compromised or settled at the direction of the board.
Adopt annually an operating budget for each university equal to the sum of appropriated state general fund monies and the amount of tuition and fees approved by the board and allocated to each university operating budget.
In consultation with the state board of education and other education groups, develop and implement a program to award honors endorsements to be affixed to the high school diplomas of qualifying high school pupils and to be included in the transcripts of pupils who are awarded endorsements. The Arizona board of regents shall develop application procedures and testing criteria and adopt testing instruments and procedures to administer the program. In order to receive an honors endorsement, a pupil must demonstrate an extraordinary level of knowledge, skill and competency as measured by the testing instruments adopted by the Arizona board of regents in mathematics, English, science and social studies. Additional subjects may be added at the determination of the Arizona board of regents. The program is voluntary for pupils.
Require the publisher of each literary and nonliterary textbook used in the universities of this state to furnish to the board computer software in a standardized format when software becomes available for nonliterary textbooks from which braille versions of the textbooks may be produced.
Require universities that provide a degree in education to require courses that are necessary to obtain a provisional structured English immersion endorsement as prescribed by the state board of education.
Acquire for each classroom United States flags that are manufactured in the United States and that are at least two feet by three feet, hardware to appropriately display the United States flags and a legible copy of the Constitution of the United States and the Bill of Rights. The board shall display the flags in each classroom in accordance with title 4 of the United States Code and display a legible copy of the Constitution of the United States and the Bill of Rights adjacent to the flag.
To facilitate the transfer of military personnel and their dependents to and from the public schools of this state, pursue, in cooperation with the state board of education, reciprocity agreements with other states concerning the transfer credits for military personnel and their dependents. A reciprocity agreement entered into pursuant to this paragraph shall:

(a) Address procedures for each of the following:

(i) The transfer of student records.

(ii) Awarding credit for completed coursework.

(iii) Permitting a student to satisfy the graduation requirements prescribed in section 15-701.01 through the successful performance on comparable exit-level assessment instruments administered in another state.

(b) Include appropriate criteria developed by the state board of education and the Arizona board of regents.

Require a university to publicly post notices of all of the university's employment openings, including the title and description, instructions for applying and relevant contact information.
In consultation with the community college districts in this state, develop and implement common equivalencies for specific levels of achievement on advanced placement examinations and international baccalaureate examinations in order to award commensurate postsecondary academic credits at community colleges and public universities in this state.
On or before August 1 of each year, report to the joint legislative budget committee the graduation rate by university campus during the previous fiscal year. The board shall also report the retention rate by university campus and by class, as determined by date of entry during the previous fiscal year.
Enter into an agreement with one or more career technical education district governing boards pursuant to section 15-393, subsection K if the agreement, in the board's judgment, will serve the interests of this state.

B. The Arizona board of regents shall adopt personnel policies for all employees of the board and the universities.

C. In conjunction with the auditor general, the Arizona board of regents shall develop a uniform accounting and reporting system, which shall be reviewed by the joint legislative budget committee before final adoption by the board. The board shall require each university to comply with the uniform accounting and reporting system.

D. The Arizona board of regents may employ legal assistance in procuring loans for the institutions from the United States government. Fees or compensation paid for legal assistance pursuant to this subsection shall not be a claim on the state general fund but shall be paid from funds of the institutions.

E. The Arizona board of regents shall approve or disapprove any contract or agreement entered into by the university of Arizona hospital with the Arizona industrial development authority.

F. The Arizona board of regents may adopt policies that authorize the institutions under its jurisdiction to enter into employment contracts with nontenured employees for periods of more than one year but not more than five years. The policies must prescribe limits on the authority of the institutions to enter into employment contracts for periods of more than one year but not more than five years, including the requirement that the board approve the contracts.

G. The Arizona board of regents may adopt a plan or plans for employee benefits that allow participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.

H. The Arizona board of regents may establish a program for the exchange of students between the universities under the jurisdiction of the board and colleges and universities located in the state of Sonora, Mexico. Notwithstanding subsection A, paragraph 5 of this section, the program may provide for in-state tuition at the universities under the jurisdiction of the board for fifty Sonoran students in exchange for similar tuition provisions for up to fifty Arizona students enrolled or seeking enrollment in Sonoran colleges or universities. The board may direct the universities to work in conjunction with the Arizona-Mexico commission to coordinate recruitment and admissions activities.

I. The Arizona board of regents, in collaboration with the universities under the board's jurisdiction, shall adopt a performance funding model using performance metrics that include the increase in degrees awarded, the increase in completed student credit hours and the increase in externally generated research and public service funding. The funding formula may give added weight to degrees related to science, technology, engineering and mathematics and other high-value degrees that are in short supply or that are essential to this state's long-term economic development strategy.

J. The Arizona board of regents shall use the performance funding model adopted pursuant to subsection I of this section in developing and submitting budget requests for the universities under the board's jurisdiction.

K. On or before November 1 of each year, the Arizona board of regents shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report on university debt and obligations, including:

Long-term notes and obligations.
Certificates of participation and other obligations pursuant to any lease-purchase agreements.
Revenue bonds.
Bonds issued pursuant to section 15-1682.03.
Commercial paper issued pursuant to section 15-1696.

L. The report submitted pursuant to subsection K of this section must contain, for the most recent fiscal year:

The aggregate level of outstanding principal and the principal and interest payments, by type of debt or obligation.
An itemization, by campus and project, of the amount of yearly principal and interest to be paid in the most recent and the next five fiscal years.

M. The Arizona board of regents may enter into an intergovernmental agreement pursuant to section 15-1747 to manage universities under the board's jurisdiction subject to the terms of the reciprocity agreement.

N. On or before November 1, 2025 and each year thereafter, the Arizona board of regents shall submit to the joint legislative budget committee each of the following for review:

The amount of monies that the board retained from each university under the board's jurisdiction to supplement the board's operating budget.
The board's expenditure plan for the current fiscal year for monies that the board retained from each university under the board's jurisdiction.
An accounting of how the board spent monies that the board retained from the universities under the board's jurisdiction in the immediately preceding fiscal year.

O. For the purposes of this section, "university debt and obligations" means debt and obligations, the principal and interest of which are paid in whole or in part with university monies.

§ 15-1626.01 Tuition and fees; student organizations; prohibition; support; selection by students

A. A university under the jurisdiction of the Arizona board of regents shall not transfer any portion of the tuition or fees collected from students pursuant to section 15-1626 or use any university student billing process to collect monies on behalf of an organization that is not under the jurisdiction of the Arizona board of regents and that is not recognized as a university student organization.

B. A university under the jurisdiction of the Arizona board of regents may establish and support student government at the university and the university-recognized student organizations and clubs and may provide support for these student groups from tuition and fees pursuant to section 15-1633.

C. Each university under the jurisdiction of the Arizona board of regents that allocates student fee monies to support the activities of individual university-recognized student organizations or clubs shall:

Provide each student who is charged fees with a reasonable opportunity to select one or more student organizations or clubs, or both, to which the university may not allocate the student's pro rata share of the fee monies.
For each student who makes a selection pursuant to paragraph 1 of this subsection, use the student's pro rata share of the fee monies that the university allocates pursuant to this subsection only for programs that are open to all students.
If a student does not select one or more student organizations or clubs pursuant to paragraph 1 of this subsection, the university may allocate the student's pro rata share of the fee monies to either support the activities of any individual university-recognized student organization or club or to programs that are open to all students.

§ 15-1627 Control of vehicles and nonpedestrian devices on university property; sanctions; compliance with emissions inspection; definition

A. Each university may adopt rules for the control of vehicles and nonpedestrian devices on its property with respect to the following only: maximum speed of vehicles and nonpedestrian devices, direction of travel, authorized hours of travel, required stops in traffic, place of parking, method of parking, time of parking, nonparking areas, restricted areas, prohibition of parking in vehicle emissions control areas as defined in section 49-541 of those vehicles which fail to comply with section 49-542 and designation of special parking areas for students, faculty, staff and the general public. Each university may prescribe and collect reasonable fees for specially designated parking areas. Each university shall cause signs and notices to be posted upon the property for the regulation of vehicles and nonpedestrian devices.

B. The rules adopted by each university pursuant to subsection A of this section shall be enforced administratively by each university. As to students, faculty and staff, these procedures may, but need not, involve both student and faculty adjudicating bodies, as long as all procedures give the individual notice and an opportunity to be heard concerning the alleged infractions and any sanction to be imposed upon him. Administrative and disciplinary sanctions may be imposed upon students, faculty and staff for a violation of the rules including, but not limited to: a reasonable monetary penalty, impoundment, regular institutional discipline, withdrawal or suspension of campus parking privileges, encumbrances of records or grades, or both, and oral or written reprimand. Habitual or flagrant disregard of rules shall be a ground for suspension or expulsion from the university for a student and may be taken into consideration as to faculty and staff in regard to amount of salary and continuation of employment.

C. Members of the general public who park their vehicles in an unauthorized manner upon the property of a university shall be warned concerning their unauthorized parking and, if they continue, or if such persons habitually park in such an unauthorized manner, the vehicles so parked may be impounded by the institution and a reasonable fee exacted for the cost of impoundment and storage.

D. Members of the general public who violate a rule adopted by the university pursuant to subsection A of this section regarding the use of nonpedestrian devices shall be warned of a violation and any nonpedestrian devices may be impounded by the university and a reasonable fee may be exacted for the cost of impoundment and storage.

E. Any person who has received a final administrative ruling concerning a sanction imposed upon him as a result of a violation of a rule pursuant to subsection A of this section shall have the right to have that ruling reviewed by the superior court in the county in which the institution involved is situated, in accordance with the provisions of the administrative review act, title 12, chapter 7, article 6.

F. This section shall be considered supplemental in nature to the general common law and statutory powers of institutions under control of the board as to the internal control and activities of their students, faculty and staff.

G. An institution under the jurisdiction of the board of regents and which is located in a vehicle emissions control area as defined in section 49-541 shall prohibit the issuance of annual permits to park on property under its jurisdiction until the applicant submits an affidavit or shows proof that his vehicle meets the requirements of section 49-542.

H. For the purposes of this section, "nonpedestrian devices" includes bicycles, tricycles, unicycles, skateboards, roller skates and equines.

§ 15-1628 Powers and procedures pertaining to optional retirement programs

A. The Arizona board of regents may establish optional retirement programs under which contracts providing retirement and death benefits may be purchased for members of the faculty and administrative officers of the institutions under its jurisdiction. The benefits to be provided for or on behalf of participants in the optional retirement program shall be provided through annuity contracts, fixed or variable in nature, or a combination thereof, or other retirement plans approved by the Arizona board of regents.

B. Elections to participate in the optional retirement programs shall be made as follows:

Eligible employees initially appointed on or after August 9, 1974 shall elect to become members of the Arizona state retirement system or to participate in an optional retirement program established by the Arizona board of regents. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution and shall be effective as of the effective date of appointment. If an eligible employee fails to make an election as provided in this paragraph, the eligible employee shall be deemed to have elected membership in the Arizona state retirement system.
Eligible employees initially appointed before August 9, 1974 may elect to participate in the optional retirement programs. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution on or before December 14, 1974, shall become effective as of January 1, 1975 and shall constitute a waiver of all benefits provided by the Arizona state retirement system, except all such benefits as are expressly provided by law.
Any employee who becomes eligible may elect an optional retirement program. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution within thirty days after notice in writing to the employee of the employee's eligibility, and shall become effective on the first day of the pay period following such election, and shall constitute a waiver of all benefits provided by the Arizona state retirement system, except all such benefits as are expressly provided by law.
Any eligible employee who is a member of the Arizona state retirement system at the time the employee elects to participate in the optional retirement program shall leave the funds in the employee's retirement account on deposit with the Arizona state retirement system during the continuance of employment. Additional contributions to the employee's retirement account shall not be required and continued service with the Arizona board of regents or an institution under the jurisdiction of the Arizona board of regents while under an optional retirement program shall be deemed to be member service in the Arizona state retirement system for the purpose of determining eligibility for any benefits under such system. The amount of any such benefits under such system shall be computed only on the basis of service otherwise creditable to a member of the system and the employee's compensation during such service. For purposes of subsection D of this section, years of member service in the Arizona state retirement system shall count as years of service under the optional retirement programs.

C. The Arizona board of regents shall contribute public funds appropriated or any other funds available for such purpose on behalf of each participant in the optional retirement programs in an amount equal to seven per cent of the participant's compensation. Each participant shall also contribute an amount equal to seven per cent of the participant's compensation. The appropriation to each university for purposes of enabling the Arizona board of regents to make the contribution provided in this subsection shall not exceed the employer contribution required under the Arizona state retirement system as prescribed by title 38, chapter 5, article 2. Funds utilized by the board of regents or by a university to pay that portion of the contribution that represents the difference between the employer contribution as prescribed by title 38, chapter 5, article 2 and the contribution rate provided in this subsection for an optional retirement program do not constitute a use of appropriated monies for supplemental retirement.

D. In the case of an electing employee initially appointed on or after August 9, 1974, contributions pursuant to subsection C of this section shall not be made by the Arizona board of regents until the employee's completion of five years of service. Employee contributions required during this initial five year period and during continued service with an institution under the jurisdiction of the Arizona board of regents shall be promptly remitted to the optional retirement programs approved by the Arizona board of regents. At the end of an electing employee's completion of five years of service, a single contribution in an amount determined pursuant to subsection C of this section, with interest, shall be made by the chief financial officer of the employing institution to the approved company or companies on behalf of such employee. In the case of an electing employee who does not continue in service with an institution under the jurisdiction of the Arizona board of regents for at least five years, the amount of employer contributions, with interest, shall be refunded to this state.

E. If an employee's service is terminated by death prior to the completion of five years of service, a death benefit equal to the sums appropriated for such employee, plus interest, shall be paid to the beneficiary designated by the participant under the participant's optional retirement program.

F. The provisions of subsection D of this section shall not apply to any electing employee who, at the time of initial appointment, owns a contract determined by the Arizona board of regents to be acceptable for use in the optional retirement program.

G. The Arizona board of regents may provide for the administration of such optional retirement programs and perform or authorize the performance of such functions as may be necessary for such purposes. The Arizona board of regents shall approve the company or companies from which benefits may be purchased under the optional retirement programs. Such optional retirement programs shall not permit loans. In giving its approval, the board shall consider:

The nature and extent of the rights and benefits to be provided for participants and their beneficiaries.
The relation of such rights and benefits to the amount of contributions to be made.
The suitability of such rights and benefits to the needs of the participants and the interests of the institutions under its jurisdiction in the recruitment and retention of faculty and administrative officers.
The ability of the approved company or companies to provide such suitable rights and benefits.

H. Any eligible employee initially appointed after August 9, 1974, electing to participate in the optional retirement programs, shall be ineligible for membership in the Arizona state retirement system as long as the employee remains continuously employed in any position by the Arizona board of regents or by an institution under its jurisdiction, except as expressly provided by law.

I. The benefits, annuities and employee and employer contributions provided for in this section, and all interest, earnings and other credits pertaining to such benefits, annuities and contributions, shall not be subject to execution or attachment and shall be nonassignable. The employee and employer contributions provided for in this section and all interest, earnings and other credits pertaining to such contributions are exempt from state, county and municipal taxes. The benefits and annuities received by an employee under this section after December 31, 1988 are subject to tax pursuant to title 43.

J. Subject to amendment of the federal-state agreement provided for in section 38-702, every eligible employee electing to participate in the optional retirement programs shall have old age, survivors and disability insurance coverage provided by the federal social security act in accordance with the provisions of title 38, chapter 5, article 1.

§ 15-1629 Annual report

Within ninety days after the close of each fiscal year the Arizona board of regents shall make a report for the fiscal year to the governor. The report shall set forth the state of progress of the universities in their several colleges, schools and departments, the courses of study included in their curricula, the number of professors, other instructional faculty and staff members employed, the number of students registered and attending classes, the amount of receipts and expenditures and such other information as the board deems proper.

§ 15-1630 Abortion at educational facility prohibited; exception

No abortion shall be performed at any facility under the jurisdiction of the Arizona board of regents unless such abortion is necessary to save the life of the woman having the abortion.

§ 15-1631 State museum; fees

A. There shall be a state museum for the collection and preservation of the archaeological resources, specimens of the mineral wealth and the flora and fauna of this state.

B. The Arizona board of regents shall direct and manage the museum and shall set apart sufficient space to accommodate it.

C. The Arizona board of regents shall adopt any fees for services performed by the state museum pursuant to title 41, chapter 4.1, article 4 and section 41-865.

D. Before submitting a proposal to the Arizona board of regents to increase fees for services, the director of the state museum shall provide notice of the intent to increase fees for services on the website of the state museum before January 1. The notice of intent must:

Include a justification for the fee increase, which shall contain:

(a) The amount of the proposed fee increase.

(b) A list of the persons who will be directly affected by, bear the costs of or directly benefit from the proposed fee increase.

(i) The rationale for the proposed fee increase with a description of the statutory responsibilities that the state museum intends to fulfill with the proposed fee increase.

(ii) An explanation of the services that the state museum will provide with the proposed fee increase to this state, political subdivisions, other agencies and businesses.

(iii) A description of any efforts to avoid fee increases or to reduce the costs or regulatory burden, or both, to the businesses, persons and consumers that will be directly affected by the proposed fee increase.

(d) A description of the methodology used to calculate the proposed fee increase and a detailed explanation of the costs included in the fee methodology.

Be provided to the Arizona board of regents for submittal to the secretary of state for publication in the register pursuant to section 41-1013.

E. In addition to the duties prescribed in subsection D of this section, the director of the state museum shall:

At the same time the Arizona board of regents submits notice of the proposed fee increase to the secretary of state pursuant to subsection D, paragraph 2 of this section, notify by regular mail, fax or e-mail each person who has made a timely request to the state museum for notification of proposed fee changes, proposed policy changes or any other proposed change relating to the state museum. The state museum may purge the list of persons who have requested these notifications once each year.
Post the draft of the proposal to increase fees for services on the website of the state museum on or before the second Monday of the calendar year.
Provide an opportunity for public comment regarding the proposal to increase fees for services for at least thirty days after publication by the secretary of state in the register. Public comment may include written comments, comments submitted through e-mail and oral comments.
If applicable, post on the website of the state museum a revised draft of the proposal to increase fees for services at the end of the public comment period. The revised draft shall include a summary and response to any comments received during the public comment period and a summary of the alternatives that were considered and a rationale for why those alternatives were not selected.
Provide an opportunity for public comment for at least twenty days regarding the revised draft of the proposal to increase fees for services. Public comment may include written comments, comments submitted through e-mail and oral comments.
Not later than five business days after the end of the public comment period, post on the website of the state museum a final draft of the proposal to increase fees for services along with the expected date that the Arizona board of regents will consider the proposed increase.

F. Any proposal submitted by the state museum to the Arizona board of regents to increase fees shall include the information prescribed in subsections D and E of this section.

§ 15-1632 University property of expelled students; classification

A. A student who is expelled by a university shall surrender all university property. The university shall refund the deposit for any property to the student.

B. An expelled student who fails or refuses to return university property is guilty of a petty offense.

§ 15-1633 Use of university resources or employees to influence elections; prohibition; civil penalty; definitions

A. A person acting on behalf of a university or a person who aids another person acting on behalf of a university shall not spend or use university resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value of the university for the purpose of influencing the outcomes of elections or to advocate support for or opposition to pending or proposed legislation. Notwithstanding this section, a university may distribute informational pamphlets on a proposed bond election as provided in section 35-454 if those informational pamphlets present factual information in a neutral manner. This section does not preclude any of the following:

A university from reporting on official actions of the university or the Arizona board of regents.
A registered lobbyist from advocating on behalf of the university or the Arizona board of regents.
An employee of a university using personal time and resources from influencing the outcomes of elections or from advocating support for or opposition to pending or proposed legislation if the employee does not use university personnel, equipment, materials, buildings or other resources for these purposes.
Any university employee from providing classroom instruction on matters relating to politics, elections, laws, ballot measures, candidates for public office and pending or proposed legislation.
The use of university resources, including facilities and equipment, for government-sponsored forums or debates if the sponsor remains impartial and the events are purely informational and provide an equal opportunity to all viewpoints. The rental and use of a university facility by a private person or entity that may lawfully attempt to influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate.

B. Employees of a university may not use the authority of their positions to influence the vote or political activities of any subordinate employee.

C. This section does not prohibit universities from permitting student political organizations of political parties, including those that are recognized pursuant to sections 16-801, 16-802 and 16-803, to conduct lawful meetings in university buildings or on university grounds, except as prescribed in subsection A of this section. Each student political organization that is allowed to conduct lawful meetings on university property shall have equal access as any other student political organization that is allowed to conduct lawful meetings on university property.

D. This section shall not be construed as denying the civil and political liberties of any person as guaranteed by the United States and Arizona Constitutions.

E. Except as provided in subsection F of this section, universities under the jurisdiction of the Arizona board of regents may not:

Provide publicly funded programs, scholarships or courses if the purpose of the program, scholarship or course is to advocate for a specified public policy.
Allow publicly funded organizations, institutes or centers to operate on the campus of the university or on behalf of or in association with the university if the purpose of the organization, institute or center is to advocate for a specified public policy.

F. Subsection E of this section does not apply to:

A registered lobbyist who advocates on behalf of the university or the Arizona board of regents and other employees assisting such lobbyists in their official capacity.
Any university employee who expresses a personal opinion on a political or policy issue, regardless of whether that opinion is expressed inside or outside the classroom.
Print or electronic media produced by students who are enrolled at a university.
A recognized student government, club or organization of students who are enrolled at a university.
Any university employee who is appointed to a government board, commission or advisory panel who provides expert testimony or guidance on public policy.
The publication of reports or the hosting of seminars or guest speakers by the university that recommends public policy.
Researching, teaching and service activities of university employees that involve the study, discussion, intellectual exercise, debate or presentation of information that recommends public policy.
Any other type of advocacy that is allowed by law.

G. The attorney general shall publish and distribute to the Arizona board of regents a detailed guideline regarding activities prohibited under this section. The attorney general may distribute these guidelines through a website or electronically.

H. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may serve on the person an order requiring compliance with this section and may assess a civil penalty of not more than five thousand dollars per violation, plus any amount of misused funds subtracted from the university budget against a person who violates or a person who aids another person in violating this section. The person determined to be out of compliance with this section shall be responsible for the payment of all penalties and misused funds. University funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the university whose funds were misused.

I. An attorney acting on behalf of a university may request a legal opinion of the attorney general as to whether a proposed use of university resources would violate this section.

K. For the purposes of this section:

"Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters.
"Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral.
"Misused funds" means university monies or resources used unlawfully pursuant to this section.

§ 15-1634 Intergovernmental agreements; special assessments

A. Pursuant to section 48-582 or 48-920 or in conjunction with any street improvement made pursuant to any other statute, the board on behalf of this state or any university may enter into and shall be bound by intergovernmental agreements with one or more cities, counties or improvement districts for the purpose of improving streets adjacent to or running through university property by the construction of any or all of the improvements authorized in either title 48, chapter 4, articles 1 and 2 or title 48, chapter 6, article 1.

B. The agreement may provide that assessments may be levied against university property to secure repayment of the cost of the improvements. So long as this state or the board owns the land so assessed the assessment liens may not be enforced by sale or foreclosure. The agreement may also provide that the university's share of any incidental cost may be paid by the board from any available fund of that university. The board shall pay or cause to be paid the installments of principal and interest coming due on the assessments and may pledge for the payment thereof any monies of the respective university which do not cause the agreement or assessment to become a debt of this state under, or contrary to, any constitutional provision and which do not violate any contract rights of any other person to be paid from the same source. The agreement shall provide that the payments due under the agreement include any penalties and additional interest that the owner of property subject to assessment would be required to pay on the delinquency of an installment of principal or interest.

C. In the agreement the board may waive any formal requirement, notice or prerequisite to levying an assessment.

D. If the board leases, long-term leases or sells any parcel subject to an assessment, the board shall require that the lessee's or purchaser's initial payment be in an amount at least sufficient to reimburse the board for the parcel's allocative share of the monies previously expended to pay the assessment. The board shall return such amount to be reimbursed to the source of the monies under subsection B of this section.

E. Upon the sale of any parcel subject to an assessment, the lien of the assessment may be enforced by foreclosure and sale in the manner set forth in the respective statute authorizing the levying of the assessment.

§ 15-1635 University research development purposes; product development; corporations

A. In order to stimulate the flow of capital into the development of specific products which have advanced beyond the theoretical stage and are capable of being reduced to practice on a commercial scale, the board may by resolution organize one or more corporations under the provisions of title 10. At least one-half of any voting shares of each such corporation shall be held by the board, or a majority of the directors, trustees or members of the corporation shall be designated or appointed by the board. No member or employee of the board may receive any direct or indirect compensation, other than reimbursement for actual expenses incurred in the performance of his duties, by reason of serving as a member, director or trustee of a corporation organized under this section.

B. No such corporation may be organized unless the board finds in its organizational resolution that its formation will stimulate and encourage the development of new products within this state in situations in which financial aid would not otherwise be reasonably available from conventional lending sources. In addition to the powers each corporation may have, each corporation may:

Enter into product development agreements with persons doing business in this state, on such terms and conditions as are consistent with the research development purposes of the board, to advance financial aid to such persons for the development of specific products, procedures and techniques to be developed and produced in this state and to condition such agreements on contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it.
Acquire, lease, purchase, manage, hold and dispose of real and personal property in this state and lease, convey or deal in or enter into contracts with respect to such property on any terms necessary or incidental to carrying out these research and development purposes.
Hold patents, copyrights, trademarks or any other evidences of protection or exclusivity as to any products issued under the laws of the United States or any state or nation.

C. Before organizing such a corporation, the board shall develop a procedure for applications for financial aid to be forwarded, together with an application fee prescribed by the board, to the board. The board shall investigate and prepare a report concerning the advisability of approving the proposed financial aid for such person and concerning any other factors deemed relevant. The investigation and report shall include such facts about the person under consideration as his history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects and integrity of management as well as the feasibility of the proposed project to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report and after other action as is deemed appropriate, the board shall approve or deny the application. The board shall promptly notify the applicant of such action. Approval shall be conditioned on payment to the board, within such reasonable time after notification of approval as the board may specify, of a commitment fee prescribed by the board.

D. The board may receive and accept aid or contributions of monies from any source, including gifts or grants from private sources or from any department or agency of the United States or this state, for the purposes of carrying out the provisions of this section.

E. The board may also enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through university research.

§ 15-1635.01 Transfer of technology developed by universities; intellectual property policies; officer or employee interest in private entity

A. To encourage the exchange of technological expertise, new research development and other valuable information between private enterprise and the university system in this state and to facilitate the transfer of technology developed by officers or employees of universities under the jurisdiction of the Arizona board of regents to commercial, nonprofit and entrepreneurial enterprises for the economic development of this state and for the public benefit, the Arizona board of regents shall maintain intellectual property policies that allow, on a case-by-case negotiated basis, the licensing, assignment or other transfer of intellectual property owned by the board to third parties if the transfer is in the best interest of this state and the university system or the transfer otherwise promotes the dissemination of university research for the public benefit.

B. Notwithstanding title 38, chapter 3, article 8, the Arizona board of regents, a university or an entity authorized to manage intellectual property on behalf of the board or a university may enter into agreements to transfer intellectual property owned by the board to an officer or employee of an institution under the jurisdiction of the Arizona board of regents or to an entity in which an officer or employee maintains a substantial interest as defined by section 38-502.

C. Before concluding an agreement for the transfer of any intellectual property owned by the Arizona board of regents to an officer or employee of the board or a university or to an entity in which an officer or employee of the board or a university maintains a substantial interest, the board or university shall do all of the following:

Identify, on a case-by-case basis, individual and institutional conflicts of interest and conflicts of commitment that may arise as a result of the proposed transfer.
Determine whether the potential conflicts are manageable.
If the potential conflicts are manageable, develop a conflict management plan and enter into agreements as necessary for the appropriate management and oversight of the potential conflicts in conformance with policies of the Arizona board of regents and the university.

D. The board shall maintain appropriate policies and procedures for the implementation of this section.

§ 15-1636 Lease of real property and improvements in research park; prohibited and permitted uses

A. The board shall not lease real property located in an area defined as a research park pursuant to section 35-701 unless the lease contains a covenant that prohibits unlimited manufacturing on the site and allows the board to enforce the covenant by appropriate means, which may include termination of the lease.

B. The board may take title to and lease improvements constructed on land located in an area defined as a research park pursuant to section 35-701 if the lease contains a covenant that restricts the use of the subject property to the uses permitted under this section. The lease shall allow the board to enforce the covenant by appropriate means, including termination of the lease. The board may lease unimproved lots or parcels located in an area defined as a research park pursuant to section 35-701 for any use by a lessee.

C. The requirements of subsection B of this section do not apply to improvements constructed before July 20, 1996 or to a lease entered into between the board and a lessee, subsidiary, successor, sublessee or assignee of a lessee, who originally entered into any lease with the board before July 31, 1996.

D. The subject property may be used only for the following purposes:

Laboratories, offices and other facilities for testing, consulting and information processing, related to research and development.
Production, assembly or sale of products pursuant to research and development activities.
Pilot plants in which processes planned for use in production elsewhere can be tested and assembled.
Regional or national headquarters of the lessee or its subsidiaries that are engaged in research and development or education activities.
Education and training facilities.
Operations required to maintain or support any permitted use, including maintenance shops, power plants, wastewater treatment facilities, the keeping of animals, machine shops, common area improvements and facilities and professional and commercial services supporting permitted uses, such as child development centers, food services and post office and mailing centers.

§ 15-1637 Lease of property for health care institution; requirements; conditions; reports; directors, members and officers of nonprofit corporation; definition

A. The Arizona board of regents may lease real property, improvements or personal property owned by the board to a nonprofit corporation as lessee for purposes of operating a health care institution as defined in section 36-401. If the board leases such property for such purposes, whether title to improvements on the property rests in the board or in the lessee, the lease agreement and any amendments, renewals or extensions of the agreement shall be deemed binding and effective according to its terms. If, under the provisions of the lease, improvements or personal property related to the operation of a health care institution are conveyed to the nonprofit corporation, they shall be presumed to have been conveyed for their then fair market value.

B. Any lease agreement entered into pursuant to subsection A of this section may, at the discretion of the Arizona board of regents, contain provisions requiring the nonprofit corporation to acquire the approval of the Arizona board of regents prior to entering into any business transactions that may adversely affect the interests of this state or that are contained in subsection G, paragraph 2 of this section. The Arizona board of regents shall specify in the lease agreement the type and nature of such transactions which require prior approval of the board.

C. To satisfy the requirements of section 103 of the internal revenue code, as defined in section 43-105, any nonprofit corporation which is a lessee as described in subsection A of this section is declared to be:

A validly organized and existing body politic and corporate exercising its powers for the benefit of the people, to improve their health and welfare and to increase their prosperity.
Engaged in a purpose essential to public health care.
Performing an essential governmental function.

D. Any nonprofit corporation which is a lessee as described in subsection A of this section is exempt from property taxation by this state or any agency or subdivision of this state and possesses and may exercise only those powers of the Arizona board of regents which are delegated to the nonprofit corporation by the Arizona board of regents and which are necessary to satisfy the requirements of section 103 of the internal revenue code, as defined in section 43-105, as specified in the terms, conditions, restrictions and agreements of the lease agreement. These powers are in addition to all those powers granted to a nonprofit corporation by title 10, chapters 24 through 40.

E. Any nonprofit corporation which is a lessee as described in subsection A of this section may issue bonds and incur obligations and pledge its revenues as security for the payment of the bonds or other obligations for health care institutional purposes to the extent provided by the lease agreement or amendments, renewals or extensions of the agreement. Nothing in this section shall be construed to authorize the incurrence of a debt by the state within the meaning of any constitutional restriction on debt.

F. Except as provided in subsection G of this section, any nonprofit corporation which is a lessee as described in subsection A of this section may acquire by purchase, lease or otherwise, and may operate, other health care institutions and real and personal property for purposes of providing products and services related to the operation of health care institutions owned, leased or operated by it. Such acquisition or operation does not affect the powers, rights, privileges or immunities conferred on such nonprofit corporation by this section.

G. No nonprofit corporation which is a lessee as described in subsection A of this section shall:

Until September 1, 1986 enter into any agreement with a county or a nonprofit corporation to which property is conveyed pursuant to section 11-256.03, subsection A if the agreement provides for the conveyance of any ownership interest whatever in the nonprofit corporation to which property is conveyed pursuant to section 11-256.03, subsection A or in the property described in section 11-256.03, subsection A. After August 31, 1986 any such agreement must be approved by the Arizona board of regents and the legislature. This subsection does not prevent the grant of an option to purchase such property, provided that the option may not be exercised before September 1, 1986 and the exercise of the option must be approved by the Arizona board of regents and the legislature. Under no circumstances shall any state general fund monies be used to acquire any interest in such property.
Own, lease, manage or operate any other health care institution or other real or personal property unless such acquisition, management or operation either:

(a) Relates to and furthers the educational or research purposes and goals of the university of Arizona hospital.

(b) Promotes the efficient and economical operation of the university of Arizona hospital or any other health care institution acquired pursuant to paragraph 1 of this subsection.

H. A nonprofit corporation which is a lessee as described in subsection A of this section may manage and operate property described in section 11-256.03, subsection A subject to the restrictions of subsection G of this section. Any management or operation agreement shall provide that the nonprofit corporation which is a lessee as described in subsection A of this section shall not be liable for any bonds or other obligation of any kind relating to the ownership or operation of the property described in section 11-256.03, subsection A incurred before the property is conveyed to such nonprofit corporation in accordance with subsection G of this section.

I. A health care institution which is the subject of a lease agreement as described in subsection A of this section is subject to section 15-1630.

J. A nonprofit corporation which is a lessee as described in subsection A of this section shall make semiannual progress reports as to its financial status and deliver them on January 1 and July 1 of each year to the Arizona board of regents, the president of the senate, the speaker of the house of representatives and the governor. The nonprofit corporation shall present an independently audited financial statement to the auditor general within ninety days of the close of the previous fiscal year. The auditor general shall review such statements and transmit them together with a report to officers entitled to receive progress reports by this subsection.

K. Any nonprofit corporation which is a lessee as described in subsection A of this section shall:

Be organized as a nonprofit corporation pursuant to title 10, chapters 24 through 40 only upon the approval of the Arizona board of regents.
Be governed by a board of directors, the members of which are appointed by the Arizona board of regents, provided that no more than forty-nine per cent of the members of such board of directors of the nonprofit corporation shall be officers or employees of this state and of such forty-nine per cent only two members of such board of directors may be members of the Arizona board of regents. Members of the Arizona board of regents who are appointed to the board of directors of such nonprofit corporation shall be residents of different counties unless all members of the board of regents are residents of the same county.
Be organized under articles of incorporation or bylaws approved by the Arizona board of regents which shall provide among other things that:

(a) No earnings of the nonprofit corporation shall inure to the benefit of or be distributable to its members, directors, officers or other individuals, except that the nonprofit corporation shall be authorized to pay reasonable compensation for services rendered to it by individuals other than members of the board of directors of the nonprofit corporation acting solely in such capacity, to reimburse expenses in connection with services rendered to or expenses incurred on behalf of the nonprofit corporation and to make payments and distributions in furtherance of the purposes of the nonprofit corporation.

(b) Upon the dissolution or liquidation of the nonprofit corporation, the board of directors of the nonprofit corporation shall, after paying or making provision for the payment of all of the liabilities of the nonprofit corporation, distribute all of the assets of the nonprofit corporation to the Arizona board of regents or its successor.

(c) Neither the articles of incorporation nor the bylaws of the nonprofit corporation shall be amended without the approval of the Arizona board of regents.

(d) The board of directors of the nonprofit corporation may adopt nondiscriminatory rules and regulations providing for the use of the university of Arizona hospital by, and staff privileges for, any persons licensed under title 32, chapter 7, 13 or 17 whether or not such persons have a faculty teaching appointment with the school of medicine, providing, however, that such rules and regulations shall contain requirements sufficient to protect the educational and research purposes and goals of the university of Arizona hospital.

L. No member of the Arizona board of regents who is also a member or director of a nonprofit corporation which is a lessee as described in subsection A of this section shall as a regent vote upon any matter pertaining to such a corporation as may come before the Arizona board of regents.

M. For the purposes of this section "nonprofit corporation" means a corporation as defined in section 10-3140.

§ 15-1638 Disclosure of records and other matters; exception; definition

A. A nonprofit corporation that is a lessee pursuant to section 15-1637, subsection A shall disclose and make available records and other matters in the same manner as is required of a public body pursuant to title 39, chapter 1, except that the nonprofit corporation is not required to disclose or make available any records or other matters that:

Identify the care or treatment of an individual patient who receives services provided by the nonprofit corporation, including billings, unless the patient or patient's representative consents in writing to the disclosure.
Reveal proprietary information provided to the nonprofit corporation by a nongovernmental source.
Would cause demonstrable and material harm to the nonprofit corporation and that would place it at a competitive disadvantage in the marketplace.
Would violate an exception, privilege or confidentiality granted or imposed by statute or common law.

B. The provisions of this section do not apply to reports of statistical and demographic data required by section 36-125.05.

C. In this section, "nongovernmental" means an entity other than the federal government, an agency or instrumentality of the federal government or a public body as defined in section 39-121.01.

§ 15-1639 University recruitment and retention program for economically disadvantaged, minority and underrepresented student populations

A. The three universities under the jurisdiction of the board of regents shall each establish a comprehensive plan to initiate new programs and expand existing student recruitment and retention programs directed at economically disadvantaged, minority and underrepresented student populations. The plan shall incorporate at least the following:

Programs which are directed at Arizona resident students and which include outreach programs established to work with potential students at the high school level.
A program overview which illustrates the coordination between existing and new recruitment and retention programs.
Methods for the evaluation of program impact and the establishment of target goals for success. The results of these evaluations shall be reported to the board of regents utilizing a standard format distributed by the board.

B. Monies appropriated for this program shall not be used to support remedial course work.

C. Students admitted to the universities must meet the admission criteria established by the board of regents.

§ 15-1640 Public records exemptions; confidential information; historical records; donor records

A. The following records of a university under the jurisdiction of the Arizona board of regents are exempt from title 39, chapter 1, article 2:

Information or intellectual property that is not available to the public and that is a trade secret as defined in section 44-401 or that is either:

(a) Contained in unfunded grant applications or proposals.

(b) Developed by persons employed by a university, independent contractors working with a university or third parties that are collaborating with a university, if the disclosure of this data or material would be contrary to the best interests of this state.

(c) Provided to a university by a third party pursuant to the terms and conditions of a contract between the university and the third party. In order to qualify for the exemption prescribed in this subdivision, all of the following criteria must be met:

(i) The contract specifies that the information being provided to the university is confidential and that there is a need to maintain that confidentiality.

(ii) The contract is approved before the contract becomes effective by an official of the university who is authorized to sign these contracts.

(iii) The contract includes the name or names of the third party and a general description of the research or other work that is the subject of the contract in a manner sufficient to provide the public with the information necessary to understand the nature of that research or other work.

(iv) Except for the exemptions from public disclosure prescribed in this section, the contract will become a public document that is subject to title 39, chapter 1, article 2 when the contract is executed.

(d) Composed of unpublished research data, manuscripts, preliminary analyses, drafts of scientific papers, plans for future research and prepublication peer reviews.

Historical records and materials donated to a university by a private person or a private entity, if restricted access is a condition of the donation. The exemption provided by this paragraph shall expire no later than twenty years after the original donation.
All records concerning donors or potential donors to a university, other than the names of the donors and the description, date, amount and conditions of these donations.

B. This section does not affect the issues to be decided between a university and a contracting party, including issues related to the university's right to publish the data and the results of the university's research or discoveries and the timing of any related publication.

C. Any exemption provided by subsection A of this section shall no longer be applicable if the subject matter of the records becomes available to the general public.

§ 15-1641 University collegiate special plate funds; purpose

A. The Arizona board of regents shall establish a separate university collegiate special plate fund for each university, as described in section 15-1601, consisting of monies received by the board from collegiate plate annual donations for universities pursuant to section 28-2412.

B. The board of regents shall require each university, as described in section 15-1601, to submit a plan for approval of the expenditure of monies in the appropriate fund. All monies in the fund shall only be used for academic scholarships. Each university shall annually report to the board of regents the percentage of monies that was expended on behalf of minority applicants.

C. The board of regents may delegate to a state university foundation approved by each university, as described in section 15-1601, the right to market and promote the purchase of collegiate special plates. No dues, fees or charges except those specified in section 28-2412 may be levied or collected by a state university foundation in connection with collegiate special plates.

D. The fund established in this section is exempt from section 35-190 relating to lapsing of appropriations. At the direction of the board the state treasurer may invest and divest inactive monies in the fund as provided by section 35-313. The state treasurer shall credit all interest earned on the fund monies to the fund.

§ 15-1642 Financial aid trust fund; aid to students with verifiable financial need; endowment

A. The Arizona board of regents may establish a financial aid trust fund for the purposes of providing immediate aid to students with verifiable financial need, including students who are underrepresented in the population of university students or who by virtue of their special circumstances present unique needs for financial aid, and creating an endowment for future financial aid. Subject to the limits provided in subsection B, paragraph 3 of this section, the board may assess a surcharge on registration fees paid by students for deposit in the fund. The fund shall also consist of monies deposited pursuant to section 15-1670, subsection F.

B. The board shall adopt rules to govern the financial aid trust fund, including the following:

Twenty-five percent of the monies received each year shall be placed in the trust fund as a permanent endowment. The remaining monies received shall be used for immediate aid for students with verifiable financial need. At least fifty percent of the immediate aid monies shall be used for grant aid.
The immediate aid monies shall be distributed to the universities on a pro rata basis based on relative student contributions to the fund.
The surcharge on student registration shall not exceed one percent of the registration fee for students taking more than six credit surcharge hours. The surcharge hours for students taking fewer than seven credit hours shall equal one-half the surcharge assessed students taking more than six credit hours.

C. Each dollar raised pursuant to the surcharge on student registration shall be matched by $2 appropriated by the legislature.

D. The board shall report every three years to the legislature on the status of the financial aid trust fund. The report shall include the use to which the monies have been put and the impact of such use.

E. Fund monies shall only be used in university assistance programs approved by the board and such monies shall be in addition to, and not in replacement of, existing state or institutional financial aid monies. Assistance may be provided to full-time or part-time students. Monies appropriated by this state shall not be used to provide assistance to students who are not residents of this state.

§ 15-1643 Arizona area health education system; centers; governing boards; duties

A. The Arizona board of regents shall establish the Arizona area health education system in the college of medicine of the university of Arizona. The board shall appoint a system director.

B. The system shall consist of six area health education centers administered by the director of the Arizona area health education system. Each center shall represent a geographic area with specified populations that the system determines currently lack services by the health care professions. One center shall focus on the Indian health care delivery system.

C. The Arizona board of regents shall appoint a governing board for each center consisting of not fewer than ten people and not more than twenty people. Board membership shall consist of health care providers and consumers and shall reflect the ethnic representation of the center's geographic area. Each governing board shall make recommendations to the director regarding health professionals' educational needs, local program priorities and the allocation of system monies. Board members are not eligible to receive compensation or reimbursement of expenses.

D. Each center shall conduct:

Physician and other health professional education programs that consist of any of the following:

(a) An undergraduate clinical training program.

(b) A graduate program.

Programs to recruit and retain minority students in health professions.
Continuing education programs for health professionals.

E. The director shall submit a written report on or before November 15 of each year to the governor, the president of the senate and the speaker of the house of representatives. The report shall contain the following:

The fiscal status of each center.
Information regarding center education, outreach and training programs.
Information regarding placement of health care personnel in areas the director determines are underserved by these professionals.
An assessment of system accomplishments.
Recommendations for possible legislative action.

F. The system shall provide expertise and administrative services to each center.

§ 15-1644 Statewide commission; membership; qualifications; duties; compensation; staffing

A. The Arizona board of regents shall appoint a statewide area health education centers commission consisting of not fewer than ten members and not more than twenty members who are knowledgeable about the delivery of health care in this state. Members of the commission shall advise the director on a regular basis on the management of the system and on the expenditure of monies appropriated for the system.

B. Commission members serve at the pleasure of the Arizona board of regents and are not eligible to receive compensation or reimbursement of expenses.

C. The Arizona area health education system shall provide staffing for the commission.

§ 15-1645 Health professions field scholarships; purpose; amount; repayment; definition

A. Each area health education center located in this state may grant and administer a scholarship in an amount of not more than eight thousand dollars for each student for each school year to at least two students who are residents of the center's geographic area and who are enrolled in a health professions program at an Arizona university. The scholarship shall be used to defray educational expenses including room and board.

B. A scholarship shall be granted on the condition that the student contractually agree to practice in the center's geographic area for two years or one year of service for each year of scholarship support, whichever is longer, after completing post-graduation training. If the recipient withdraws from school, the recipient shall repay all scholarship monies within one year of the withdrawal. If the student is dismissed, an appropriate mechanism shall be negotiated to arrange repayment of the remaining unforgiven balance with eight per cent interest.

C. For good cause a center may extend the time period for training prior to scholarship repayment.

D. The Arizona board of regents shall waive all tuition and fees for students granted a scholarship under this section if the legislature appropriates funds for this purpose.

E. For the purposes of this section "health professions program" means enrollment in a school of medicine, nursing, pharmacy or physical therapy.

§ 15-1646 Board of regents and university scholarships; notification requirements

The universities under the jurisdiction of the Arizona board of regents shall establish policies that ensure fair and equitable access by Arizona students from public, private and charter schools and homeschools to scholarships, including tuition waivers, that are issued solely on the basis of academic merit and for which the universities establish and administer fair and equitable selection criteria. The universities under the jurisdiction of the Arizona board of regents shall:

Annually report to the board and publish and disclose to the extent permitted by state and federal law the following information related to each merit based scholarship awarded to students from public, private and charter schools and homeschools by each university, for the prior academic year:

(a) The total number and dollar amount of awards and total number of applicants.

(b) The total number and dollar amount of awards and total number of applicants by type of student.

(d) The number of newly awarded scholarships and the number of renewed scholarships.

Notify students in this state of scholarship awards in a timely manner without regard to whether the students are from public, private or charter schools or homeschools.

§ 15-1647 Water rights adjudication; cooperative extension; establishment; assistance; annual report

A. To the extent permitted by court rule, a university under the jurisdiction of the Arizona board of regents may offer pro bono assistance to claimants who are small landowners in the general stream adjudication of water rights filed pursuant to title 45, chapter 1, article 9 and who are not represented by counsel. A university that offers assistance pursuant to this subsection may represent a claimant in the adjudication until that claimant proceeds to an evidentiary hearing or to some other contested proceeding that is similar to a trial. If the claimant has not settled the claim, the university may not represent that claimant at an evidentiary or similarly contested hearing.

B. Any university that offers assistance pursuant to subsection A of this section shall cooperate and coordinate with the faculty of a cooperative extension in this state that has a program to support the economic vitality of rural communities and the use of natural resources in those rural communities.

C. On or before November 15 of each year, a university that offers assistance pursuant to subsection A of this section shall submit a written report of the university's assistance activities to the governor, the speaker of the house of representatives and the president of the senate and shall provide a copy of this report to the secretary of state.

§ 15-1648 Technology and research initiative fund; purpose

A. The technology and research initiative fund is established consisting of revenues transferred to the fund pursuant to section 42-5029, subsection E, paragraph 2 and section 42-5029.02, subsection A, paragraph 2. The Arizona board of regents shall administer the fund. The monies in the fund are continuously appropriated to the Arizona board of regents for distribution pursuant to this section and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The board shall adopt rules to administer the technology and research initiative fund in accordance with this section. The board may allocate up to twenty percent of the monies in the fund to be used for capital projects relating to new economy initiatives, including debt service, for the universities under its jurisdiction, pursuant to article 5 of this chapter.

C. The Arizona board of regents shall receive requests from the individual universities and shall determine the amount and duration of each award. The criteria for the evaluation of each request shall be as follows:

The award must be related to one of the following:

(a) A specific academic or research field.

(b) The expansion of access to baccalaureate or postbaccalaureate education for time-bound and place-bound students.

(c) The implementation of recommendations of the Arizona partnership for the new economy or the governor's task force on higher education.

The award may be used to develop new and existing programs that will prepare students to contribute in high technology industries located in this state.
The award may be used in conjunction with matching financial assistance from private industry.
The Arizona board of regents shall give preference to requests that are developed in conjunction with private industry, private entities or federal agencies.

D. The Arizona board of regents shall submit a report to the governor, the president of the senate and the speaker of the house of representatives on or before September 1 of each year on the technology and research award program and shall transmit a copy to the secretary of state. The report shall include a description of the amount and duration of each new award distributed and a description of the purpose and goals for each award. For existing awards, the Arizona board of regents shall use a detailed set of performance measures to determine the overall effectiveness of each award.

§ 15-1649 Fingerprinting academic and nonacademic personnel; civil immunity; definitions

A. The finalist for a security or safety-sensitive position at a university that is under the jurisdiction of the Arizona board of regents shall be fingerprinted as a condition of employment. The finalist shall submit a full set of fingerprints to the university for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

B. A university may use information obtained pursuant to this section only for the purpose of evaluating the finalists for employment in security or safety-sensitive positions. A university may provide information received pursuant to this section to any other university that is evaluating the finalist for employment if the university is under the jurisdiction of the Arizona board of regents. A university may refuse to hire, may rescind an offer of employment to or may review and terminate the employment of a finalist or employee who has been convicted of or who has admitted committing any criminal offense. A university that is considering terminating an employee pursuant to this subsection shall provide due process to the employee in accordance with policies adopted by the Arizona board of regents and the university before taking disciplinary action.

C. A university that relies on information obtained pursuant to this section in making employment decisions is immune from civil liability for use of the information unless the information obtained is false and the university knows the information is false or acts with reckless disregard of the information's truth or falsity.

D. A security or safety-sensitive position shall be identified as a security or safety-sensitive position in the job description and in any advertisements for the position.

E. For the purposes of this section:

"Finalist" means any person in the group of individuals actually submitted to the hiring official for selection as a new hire or any employee of a university who seeks a transfer, a reclassification or a reassignment to a security or safety-sensitive position.
"Security or safety-sensitive position" means any position designated as a security or safety-sensitive position by a university due to applicable federal or state law or pursuant to rules or policies adopted by the Arizona board of regents or the university.

§ 15-1650 Annual financial aid report

A. On or before December 1 of each year, the Arizona board of regents shall submit to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee a financial aid report with information from the two prior fiscal years. The report shall provide information for each institution under the jurisdiction of the board, a comparison to peer institutions, and summary information for the entire university system.

B. The report shall separately delineate both full-time resident undergraduate and full-time resident graduate students.

C. For each group identified in subsection B, the annual financial aid report shall detail the following:

Cost of attendance, delineated by tuition rates, mandatory fees, room and board charges, book purchases and travel and related personal expenses.
Expected family contribution.
Gift aid, delineated by source type. Source types include federal, state, institutional and private.
Loans, delineated by subsidized amounts, unsubsidized amounts and amounts loaned to the parents of students.
Employment, delineated by program type. Program types include federal work-study, institutional work-study, graduate assistantships and outside work.

D. The Arizona board of regents and the staff of the joint legislative budget committee shall jointly determine the methodology and format of the report.

§ 15-1650.01 Hospitality studies scholarship fund

A. The hospitality studies scholarship fund is established consisting of revenues available to the fund from any lawful source. The Arizona board of regents shall administer the fund and may partner with any statewide lodging and tourism association that provides matching monies in administering the fund. Monies in the fund are subject to legislative appropriation for the purposes of this section and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The board shall use the monies in the fund to provide scholarships and other financial assistance to students entering into or enrolled in a hospitality studies program at any university under the jurisdiction of the board. The financial assistance shall be used to defray educational expenses, including room and board. If a recipient withdraws from school or from the hospitality studies program before receiving a degree, the recipient must repay all scholarship monies previously awarded to the recipient. If the recipient is dismissed from the university, the board shall negotiate an appropriate repayment schedule plus eight percent simple interest.

C. For the purposes of this section, "hospitality studies program" means any undergraduate or graduate academic studies program relating to operation or management of hotels, motels or other facilities for transient lodging as described in section 42-5070, subsection A or restaurants as described in section 42-5074.

§ 15-1650.02 Energy and water savings accounts

The Arizona board of regents may establish an energy and water savings account in the same manner as a school district pursuant to section 15-910.02 and may fund and use monies for guaranteed energy savings contracts pursuant to section 34-105.

§ 15-1650.03 Arizona board of regents; resident undergraduate students; cost study; annual cost containment report

A. On or before December 15, 2017 and every five years thereafter, the Arizona board of regents shall conduct and complete a comprehensive cost study to determine the actual cost of educating a full-time resident undergraduate student at each university under the jurisdiction of the board. The board shall submit the cost study to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee and shall provide a copy to the secretary of state. The cost study shall include a detailed breakdown of the costs associated with educating a full-time resident undergraduate student and shall include at least the following:

The use of instructional fees at each university, including differentiating between mandatory fees, program fees and course fees.
Differentiated costs between programs of study, including differential tuition and program and course fees.
The costs of faculty and administration differentiated between the amount of time needed to instruct students and to conduct research.
A breakdown of where tuition dollars are allocated, including the amount that is not directly attributable to instructional costs.
An analysis of the marginal cost and the average cost of a student depending on the type of program in which the student is enrolled, including online programs.

B. On or before September 1, 2018 and each year thereafter, the Arizona board of regents shall submit a comprehensive university cost containment report for each university under the jurisdiction of the board to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee and shall provide a copy to the secretary of state. The report shall demonstrate the actions taken by each university to contain increases in the cost of attendance for full-time resident undergraduate students and shall include at least the following:

Historical data on tuition and mandatory fee levels and average on-campus housing and meal plan fees at the largest campus for each university during the previous fiscal year and fiscal years 1999, 2004, 2009 and 2014.
The number of FTES and total salaries of university employees differentiated between faculty, classified staff and administrators at each university during the previous fiscal year and fiscal years 1999, 2004, 2009 and 2014.
Actions taken by each university to contain costs at the university and the savings associated with those actions.
The allocation of faculty resources at each university based on the time needed to instruct students and to conduct other research activities.
The number of credit hours required for a baccalaureate degree for the previous academic year and the 2003-2004 academic year for the ten degree programs that had the largest increase in credit hours required for a baccalaureate degree between the 2003-2004 academic year and the 2017-2018 academic year, and between the previous two academic years.
Detailed information on nontraditional or lower-cost degree options that each university currently offers, has recently developed or is pursuing.

§ 15-1650.04 Contract lobbyist; prohibition

Notwithstanding any other law, the Arizona board of regents or a university under the jurisdiction of the Arizona board of regents may not use the state general fund appropriation for contracts with individuals or entities for lobbying services.

§ 15-1650.05 COVID-19 vaccine; face covering; testing; mandate prohibition; exceptions

(L21, Ch. 410, sec. 2)

A. Except as otherwise provided in this section, the Arizona board of regents, a public university or a community college may not require that a student obtain a COVID-19 vaccination or show proof of receiving a COVID-19 vaccination or place any conditions on attendance or participation in classes or academic activities, including mandatory testing or face covering usage, if the person chooses not to obtain a COVID-19 vaccination or disclose whether the person has been vaccinated against COVID-19, unless the vaccination or other mandate is required by the laws of this state.

B. A health care institution may require a student who participates in a clinical setting at the health care institution to provide proof of COVID-19 vaccination and be subject to regular health screenings and testing as determined by the health care institution. For the purposes of this subsection, "health care institution" includes a hospital, a nursing care institution, a residential care institution, an intermediate care facility for individuals with intellectual disabilities and a group home or other medical facility licensed pursuant to title 36.

C. A public university may require testing only if a significant COVID-19 outbreak occurs in a shared student housing setting that poses a risk to the students or staff. The university must receive approval from the department of health services before implementing the testing requirement.

D. This section does not apply to students who are engaged in research or testing that involves a live COVID-19 virus.

§ 15-1650.06 Arizona veterinary loan assistance program; fund; annual report; rules; definitions

A. The Arizona veterinary loan assistance program is established within the Arizona board of regents.

B. The Arizona veterinary loan assistance fund is established consisting of legislative appropriations. The board shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the Arizona board of regents, 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 fund. The board shall use monies in the fund for the purposes prescribed in this section and may retain up to three percent of the monies deposited in the fund for costs associated with administering the program.

C. A person who obtains a doctor of veterinary medicine degree from a veterinary college after January 1, 2023 and who signs an agreement pursuant to subsection D of this section may apply to the board to participate in the program.

D. To participate in the program, the board shall require an applicant to sign an agreement to both:

Remain and work as a full-time veterinarian in this state for the following four years.
Work in one of the following practice areas for at least two of the four years:

(a) An agricultural practice in an area designated by the United States department of agriculture as having a shortage.

(b) A nonprofit, county or municipal shelter.

E. At the conclusion of the four-year commitment described in subsection D of this section, the board shall determine whether the veterinarian satisfied the terms of the agreement described in subsection D of this section. If the board determines that the veterinarian satisfied the terms of the agreement described in subsection D of this section, the board shall distribute to the veterinarian from the Arizona veterinary loan assistance fund an amount that is equal to the amount of the veterinarian's outstanding veterinary college educational loan balance or $100,000, whichever is less. The board shall distribute monies from the fund subject to the availability of monies and legislative appropriation and on a first-come, first-served basis. For the purposes of this subsection, "educational loan balance" means the balance of the principal, interest and related expenses of the educational loan.

F. On or before October 1 of each year, the board shall compile a report that details how the Arizona veterinary loan assistance fund monies are being spent and shall submit this report to the governor, the president of the senate and the speaker of the house of representatives. The board shall submit a copy of this report to the secretary of state.

G. The board may adopt rules for the purposes of carrying out this section.

H. For the purposes of this section:

"Board" means the Arizona board of regents.
"Veterinarian" has the same meaning prescribed in section 32-2201.
"Veterinary college" has the same meaning prescribed in section 32-2201.

Article 3 School Employee Training

§ 15-1651 Teacher training schools

A. Every teacher training school established in connection with the state universities shall be a part of the school system and a branch of the school district within which the training school is located.

B. Training schools shall be governed by the laws and regulations relating to schools except as otherwise provided in this article.

C. Students in the state universities may, under rules prescribed by the Arizona board of regents, teach in the training schools and other schools without being certificated teachers.

§ 15-1652 Management and expenses

A. Every teacher training school shall be under the supervision and management of the Arizona board of regents. All teachers in the school, except the principal, shall be employed by the Arizona board of regents and the governing board of the school district in which the training school is located, acting jointly.

B. The school district shall pay towards the expense of a teacher training school an amount equal to one-half of the school monies which it is entitled to have apportioned to it based on the student count at the training school during the preceding school year, but pupils attending from another school district shall not be credited with enrollment in the school district in which the university is located.

§ 15-1653 Authority to prescribe rules governing admission and attendance

The Arizona board of regents and the governing board of the school district in which a teacher training school is located shall jointly prescribe rules and regulations governing admission and attendance at the training school of children of school age who reside within the school district and governing all pupils in changing their attendance from the training school to another school in the school district. The Arizona board of regents may admit all children of school age residing within the school district who are not then registered during that year for attendance at another school of the school district for attendance at the training school up to such number as necessary for the conduct of the training school.

§ 15-1654 Qualifications for admission to teacher training program

On or before January 1, 1993, each university under the jurisdiction of the Arizona board of regents shall establish qualifications for entrance into the teacher training program of its respective colleges of education.

§ 15-1655 Arizona teachers academy; tuition and fees scholarships; fund; reporting requirements; definitions

(Caution: 1998 Prop. 105 applies)

A. Eligible postsecondary institutions shall implement an Arizona teachers academy to incentivize students to enter the teaching profession and to commit to teach in Arizona public schools or for or in schools that serve primarily public school students with disabilities, which are considered public schools for the purposes of this section. The Arizona board of regents, in consultation with eligible postsecondary institutions, shall develop and implement centralized administrative processes for the academy, including:

A marketing and promotion plan to recruit students for the academy.
Data collection and reporting.
Tracking postgraduation service requirements.
Coordinating induction services.
Distributing monies in the Arizona teachers academy fund between eligible postsecondary institutions.
Collecting reimbursement from individuals who fail to meet service obligations.

B. The Arizona teachers academy may include new or existing teacher preparation program pathways that are student-focused and that employ proven, research-based models of best practices already being implemented. Each eligible postsecondary institution may develop a portfolio of teacher preparation programs to offer as part of the academy. Each eligible postsecondary institution that admits students to the Arizona teachers academy may give priority to senior and junior students but may not exclude sophomore and freshman students. Programs offered as part of the academy shall include accelerated models for:

High-demand teacher specializations, including special education, science, technology, engineering and mathematics.
Critical need areas, including low-income public schools, public schools located on Indian reservations, rural public schools and schools that serve primarily public school students with disabilities.
Individuals seeking postbaccalaureate coursework that results in professional certification.
Teachers who are currently teaching a dual enrollment course to satisfy the requirements for teaching a dual enrollment course adopted by a higher learning commission that accredits degree-granting postsecondary educational institutions in the north central region, including this state.
Students in noneducation programs to complete one or more teacher preparation courses to prepare the student to receive a teaching certification following graduation.

C. Each eligible postsecondary institution shall develop formalized partnerships with public schools in this state to build commitments for teacher employment on completion of the Arizona teachers academy. The targeted deployment of teachers who have completed the academy shall be based on the needs of each school system and the community that is being served as well as the individual skills of each teacher.

D. Each eligible postsecondary institution shall provide to each student who is enrolled in the Arizona teachers academy an annual scholarship up to the actual cost of tuition and fees for a maximum of two academic years or four semesters for graduate university students, up to the actual cost of tuition and fees for a maximum of four academic years or eight semesters for undergraduate university students, up to the actual cost of tuition and fees for a maximum of two academic years or four semesters for community college students for tuition and fees associated with the student's program of study, up to the actual cost of obtaining national board certification and renewal, and up to the actual cost of obtaining a teaching certificate including the actual cost of the exam, after all other financial gifts, aid or grants received by that student or teacher. Scholarships under this subsection are subject to all of the following:

If the student does not successfully complete the academic year in good academic standing, the student shall reimburse the Arizona board of regents for the total amount of the scholarship for tuition and fees the student received for that year.
For each academic year that the student successfully completes and for which the student receives a scholarship for all tuition and fees, the student must agree to teach for one full school year in a public school in this state. For students who are teaching and receiving the scholarship concurrently, the commitment period begins after graduation from the Arizona teachers academy. For teachers who are seeking a national board certification, the teaching commitment is one additional year after completing the requirements of the national board certification program.
If a student enrolls in a summer term, that term may not be included in the calculation of the student's postgraduation public service commitment.
If the scholarship does not cover remaining tuition and fee costs after other aid received, the eligible postsecondary institution may not charge students the remaining difference. If the scholarship amount exceeds tuition and fee costs at an eligible postsecondary institution, the eligible postsecondary institution may use the remaining amount to support Arizona teachers academy costs.
If the student does not fulfill the student's obligation to teach in a public school, the student must reimburse the Arizona board of regents for the proportional amount of the scholarship for tuition and fees that the student received that corresponds to the number of school years the student agreed to teach but did not teach in a public school in this state.
If the student is physically or mentally unable to fulfill the requirements of the Arizona teachers academy, the Arizona board of regents shall establish a process for assessing the student's ability to repay the financial assistance received and shall determine any terms of repayment.
The Arizona board of regents shall establish a process for deferring service or repayment based on factors adopted by the board.

E. The Arizona teachers academy fund is established consisting of monies deposited pursuant to section 15-1281, subsection D, paragraph 5 and section 15-1809, subsection E and legislative appropriations made for the purpose of administering the Arizona teachers academy. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The Arizona board of regents shall administer the fund and shall establish criteria for distributing monies in the fund to eligible postsecondary institutions each fiscal year to fund the costs of the academy. Monies in the fund may be used only for:

Reimbursing Arizona teachers academy scholarships that cover the balance of tuition and fees for undergraduate, graduate and postbaccalaureate students who are enrolled in the Arizona teachers academy after all other gifts and aid received.
Support for teachers who are currently employed in a public school in this state and who are seeking a national board certification.
Induction services for Arizona teachers academy graduates.
Implementing a marketing and promotion plan to recruit and retain students in the Arizona teachers academy with particular emphasis on ensuring that participants reflect the diversity of this state's student population and administering the Arizona teachers academy. Annual expenditures for marketing, promoting and administering the Arizona teachers academy may not exceed three percent of the monies in the fund each fiscal year.

F. Monies remaining in the Arizona teachers academy fund at the end of each fiscal year may be used by eligible postsecondary institutions for Arizona teachers academy costs in the next fiscal year.

G. On or before March 1 each year, the Arizona board of regents shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on all of the following:

The total number of students enrolled in the Arizona teachers academy by eligible postsecondary institution in the current academic year.
The number of Arizona teachers academy graduates receiving induction services in the current academic year.
The estimated amount of monies committed from the Arizona teachers academy fund in the current fiscal year.

H. On or before September 1 each year, the Arizona board of regents shall report to the governor, the president of the senate and the speaker of the house of representatives, and shall submit a copy to the secretary of state, on all of the following:

The total number of students enrolled in the Arizona teachers academy at each eligible postsecondary institution by year of college enrollment and the number of teachers receiving a scholarship through the Arizona teachers academy for national board certification.
The percentage of students who completed each year of the academy and who plan to continue to the subsequent year, delineated by each teacher preparation program offered by each eligible postsecondary institution as part of the Arizona teachers academy.
The number of teachers who completed a program of study through the Arizona teachers academy by each eligible postsecondary institution.
The number of teachers currently teaching in a public school in this state as part of an agreement for receiving an Arizona teachers academy scholarship.
The number of graduates receiving induction services.
The number of students who have defaulted on their obligation and who are in repayment agreements.
The number of students who have deferred repayment agreements.
The number of students who have completed repayment agreements.
The methodology for distributing any monies appropriated for the Arizona teachers academy to each eligible postsecondary institution and the amounts distributed to each.
The amount of unused monies in the Arizona teachers academy fund from the prior fiscal year.

I. A college in this state that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation and that offers baccalaureate teacher education programs may participate in the Arizona teachers academy and receive monies from the Arizona teachers academy fund established by this section.

J. For the purposes of this section:

"Eligible postsecondary institution" means any of the following:

(a) A university under the jurisdiction of the Arizona board of regents.

(b) A community college in this state.

(c) A college described in subsection I of this section if the college opts to participate in the Arizona teachers academy under subsection I of this section.

"School that serves primarily public school students with disabilities" means a school in which more than seventy-five percent of the students enrolled in the school are public school students who are placed at the school according to an agreement with a school, a charter school or the Arizona state schools for the deaf and the blind.
"Tuition and fees" means tuition, mandatory fees and program fees that are associated with a program in the Arizona teachers academy leading to teacher certification and that are charged by an eligible postsecondary institution.

§ 15-1656 Suicide prevention training programs; requirements

Each teacher, school counselor or school social worker training program in this state shall develop or adopt evidenced-based instruction on suicide awareness and prevention and provide that instruction to all teacher, school counselor and school social worker candidates in the respective training program. The instruction shall include:

Training in suicide prevention.
Training to identify the warning signs of suicidal behavior in adolescents and teens.
Appropriate intervention and referral techniques.

§ 15-1657 Arizona teacher student loan program; requirements; fund; definitions

A. The Arizona teacher student loan program is established to support the recruitment of teachers in public schools in this state. The Arizona board of regents may grant forgivable loans to qualified students from the Arizona teacher student loan fund established by this section to defray the costs of tuition, instructional materials and mandatory fees of qualified students who are pursuing either a teaching degree or a teaching certificate through an alternative teacher certification program at a qualifying postsecondary institution and who meet the qualifications to receive these loans. A qualified student who is in an alternative teacher certification program after obtaining a bachelor's degree is eligible for a loan issued pursuant to this section. Loans shall be granted in an amount and on such terms and conditions as determined by the Arizona board of regents and shall be distributed on a first-come, first-served basis.

B. The loans issued under this section shall be used to cover the costs of tuition and mandatory fees for each loan recipient and may also defray the cost of instructional materials, but shall exclude all grants, scholarships and tuition benefits such as military, tribal and employee grants, scholarships and benefits.

C. A qualified student who does not successfully complete the academic year in good academic standing shall reimburse the Arizona board of regents for the total amount of the loan the qualified student received for that year under this section.

D. For each academic year that the qualified student successfully completes and for which the qualified student receives a loan under this section, the qualified student must agree to teach for one full school year in a public school in this state. For qualified students who are teaching and receiving a loan under this section concurrently, the commitment period begins after graduation. If a qualified student enrolls in a summer term, that term may not be included in the calculation of the qualified student's postgraduation public service commitment.

E. If the qualified student does not fulfill the qualified student's obligation to teach in a public school as prescribed in this section, the qualified student shall reimburse the Arizona board of regents for the proportional amount of the loan the qualified student received that corresponds to the number of school years the qualified student agreed to teach but did not teach in a public school in this state.

F. The Arizona board of regents shall establish a process for deferring service or repayment based on factors adopted by the board.

G. The Arizona teacher student loan fund is established. The Arizona board of regents shall administer the fund. All monies appropriated to carry out the purposes of this section shall be deposited in the fund and all payments of principal and interest that are received by the Arizona board of regents shall be deposited, pursuant to sections 35-146 and 35-147, in the fund. Monies in the fund are continuously appropriated for use by the Arizona board of regents and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The Arizona board of regents may retain up to ten percent of the amount deposited each fiscal year in the fund and may use the interest deposited in the fund for the purposes of administering the loan program established by this section, including loan repayment responsibilities. On notice from the Arizona board of regents, 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 fund.

H. For the purposes of this section:

"Qualified student" means a student who meets all of the following criteria:

(a) Is a resident of this state.

(b) Is a citizen or legal resident of the United States or is otherwise lawfully present in the United States.

"Qualifying postsecondary institution" means a regionally or nationally accredited private postsecondary educational institution in this state.

Article 4 Financial Provisions

§ 15-1661 Annual appropriation; enrollment audit; expenditure; balance; salaries

A. There shall be appropriated in the general appropriation bill for each fiscal year a sum of monies not less than eighty-five one-hundredths of one mill on the dollar of the assessed valuation of all taxable property in the state for the improvement, support and maintenance of the institutions under the Arizona board of regents' jurisdiction, including payment of salaries, current expenses, purchase of equipment, making necessary repairs, construction of new buildings, purchase of lands and in general for payment of all such expenses connected with the management of the institutions under the Arizona board of regents' jurisdiction. The department of revenue, upon compiling the aggregate assessed valuation of all taxable property within this state, shall compute the amount of monies so determined and certify such amount over its seal to the department of administration and the state treasurer.

B. The full-time equivalent student enrollment reported for the previous fiscal year by each university shall be audited annually by the auditor general. The auditor general shall report the results of the audit to the staffs of the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before October 15 of each year. On or before July 21 of each academic year, each university shall provide for the previous fall semester a certified report to the auditor general of the number of full-time equivalent students calculated by the university and a separate report only for those students who meet the residency requirements prescribed in section 15-1802. The university's records used to calculate full-time equivalent student enrollment shall be provided to the auditor general in an electronic format prescribed by the auditor general. Beginning in 2006, each university shall submit to the auditor general a summary of its full-time equivalent student enrollment accounting policies and procedures, compilation procedures and source records used for calculating full-time equivalent student enrollment. These accounting policies and procedures, compilation procedures and source records shall comply with policies developed on or before June 30, 2006 by the Arizona board of regents, in consultation with the auditor general and reviewed by the joint legislative budget committee. These policies shall include a review and recommendations of the necessity of minimum requirements for students enrolled in classes to qualify for appropriations pursuant to this section, including requirements that the class be a for-credit course that is necessary for the completion of a degree and that the student enrolled in the course be physically present in this state at the time the course is conducted. The basic actual full-time equivalent student enrollment shall be counted on the forty-fifth day after the basic actual full-time equivalent student enrollment classes begin for the fall and spring semesters, as published in the university catalogs, and divided by two. The Arizona board of regents shall also make recommendations of whether each professor or instructor should be required to review class rosters and make additions or deletions as necessary. If so, class rosters that reflect enrollment as of the forty-fifth day shall be provided by the registrar's office to each professor or instructor for every class section. The class roster shall indicate the course number, course title, time, instructor name and students enrolled. On the forty-fifth day class rosters, each professor or instructor shall indicate as withdrawn each student who has formally withdrawn from the course, and that student shall not be counted for state aid purposes. The official forty-fifth day rosters shall include a manual signature and date or an electronic authorization and date by the professor or instructor and shall include the following certification:

I hereby certify that the information contained in this class roster accurately reflects those students who are enrolled.

C. The Arizona board of regents shall also report the basic actual full-time equivalent student enrollment for only those students who meet the residency requirements prescribed in section 15-1802. The basic actual full-time equivalent student enrollment for only those students who meet the residency requirements prescribed in section 15-1802 that is reported by each university for the previous fiscal year shall be annually audited by the auditor general.

D. Students who have withdrawn or who have been withdrawn from classes as of the forty-fifth day shall not be counted for state aid purposes. A record shall be maintained that identifies student withdrawals by date of withdrawal, as of the forty-fifth day and after the forty-fifth day for the entire semester.

E. Amounts appropriated as provided by subsection A shall be paid as other claims against this state are paid.

F. The balance of appropriations as provided by subsection A at the end of the fiscal year, if any, shall not revert to the general fund but shall be carried forward for the continued use for which appropriated.

G. Monies appropriated to a university under the jurisdiction of the Arizona board of regents for cost of living salary increases for university employees shall be used to provide cost of living salary increases to all university employees including graduate student assistants. If monies are appropriated to a university for salary increases based on merit, the monies shall be used to provide merit increases according to the merit pay plan adopted by the Arizona board of regents.

H. The Arizona board of regents shall determine current actual full-time equivalent student enrollment at each of the institutions under the jurisdiction of the Arizona board of regents. Full-time equivalent student enrollment shall be calculated by adding the following:

The total number of enrolled fall and spring semester credit hours in 100-level credit courses and 200-level credit courses divided by fifteen.
The total number of enrolled fall and spring semester credit hours in 300-level credit courses and 400-level credit courses divided by twelve.
The total number of enrolled fall and spring semester credit hours in graduate level credit courses divided by ten.

I. The Arizona board of regents, in its annual budget request, shall not include funding for any student who is enrolled at an institution under the jurisdiction of the Arizona board of regents and who has earned credit hours in excess of the undergraduate credit hour threshold, except that the undergraduate credit hour threshold shall not apply to students who are enrolled in a degree program that requires credit hours above the credit threshold. For the purposes of this subsection, the undergraduate credit hour threshold is one hundred fifty-five hours for students who attend a university under the jurisdiction of the board in fiscal year 2006-2007, one hundred fifty hours for students who attend a university under the jurisdiction of the board in fiscal year 2007-2008 and one hundred forty-five hours for students who attend a university under the jurisdiction of the board after fiscal year 2007-2008. The undergraduate credit hour threshold shall be based on the actual full-time equivalent student enrollment counted on the forty-fifth day after classes begin for the fall and spring semesters and any budget adjustment based on student enrollment shall occur in the fiscal year following the actual full-time equivalent student enrollment count. The undergraduate credit hour threshold shall not apply to credits earned in the pursuit of up to two baccalaureate degrees, credits earned in the pursuit of up to two state regulated licensures and certificates, credits earned in the pursuit of teaching certification, credits transferred from a private institution of higher education, credits transferred from an institution of higher education in another state, credits earned at another institution of higher education but that are not accepted as transfer credits at the university where the student is currently enrolled and credits earned by students who enroll at a university under the jurisdiction of the board more than twenty-four months after the end of that student's previous enrollment at a public institution of higher education in this state.

§ 15-1662 Universities; funds and accounts

A. The state treasurer shall maintain the following separate permanent funds and accounts:

Universities land fund established by section 37-522. Distributions from the fund pursuant to article X, section 7, Constitution of Arizona, and monies derived from the lease, sale or other disposition of lands granted by the United States for the use and benefit of the universities shall be deposited in the universities land fund as provided in this section and section 37-522. Monies accruing to the universities under the laws of the United States pertaining to timber lands shall be deposited in the universities timber land account established by section 37-482, subsection B and may be used for the payment of expenditures which the state land department incurs for the conservation, sale and other administration of timber or timber products as provided in this section and sections 37-482 and 37-522.
Normal schools land fund established by section 37-523. Distributions from the fund pursuant to article X, section 7, Constitution of Arizona, and monies derived from the lease, sale or other disposition of lands granted by the United States for the use and benefit of normal schools shall be deposited in the normal schools land fund as provided in this section and section 37-523.
Agricultural and mechanical colleges land fund established by section 37-524. Distributions from the fund pursuant to article X, section 7, Constitution of Arizona, and monies derived from the lease, sale or other disposition of lands granted by the United States for the use and benefit of agricultural and mechanical colleges shall be deposited in the agricultural and mechanical colleges land fund as provided in this section and section 37-524.
School of mines land fund established by section 37-524. Distributions from the fund pursuant to article X, section 7, Constitution of Arizona, and monies derived from the lease, sale or other disposition of lands granted by the United States for the use and benefit of schools of mines shall be deposited in the school of mines land fund as provided in this section and section 37-524.
Military institutes land fund established pursuant to section 37-525. Distributions from the fund pursuant to article X, section 7, Constitution of Arizona, and monies derived from the lease, sale or other disposition of lands granted by the United States for the use and benefit of military institutes shall be deposited in the military institutes land fund as provided in this section and section 37-525.

B. The Arizona board of regents shall maintain a separate permanent fund to be known as the universities fund. All monies other than those specified in subsection A of this section which are derived from the lease, sale or other disposition of lands or property which are given by any person or by law as a trust fund to be administered by the board in conformity with the terms of the gift shall be deposited in the universities fund. Such monies shall be invested and administered as designated for the use of the universities except such monies as are appropriated for specific purposes from the general fund of this state for the use of the universities.

C. The state treasurer shall keep the monies of the land funds invested in safe interest bearing securities and prudent equity pursuant to article X, section 7, Constitution of Arizona, and as provided by sections 35-313 and 35-314.01, and monies earned from investment shall be credited to the funds.

D. Monies shall not be taken from one fund or deposited in any other fund nor shall any fund or the income from the fund be taken or expended for any object other than as provided by section 37-527 or as provided by the original gift or appropriation.

§ 15-1663 Expenditure of land funds; eminent scholars matching grant fund

A. Except as provided in subsection B of this section, the Arizona board of regents may expend, as it deems expedient and as is not inconsistent with the provisions of any appropriation, the income of the land funds established pursuant to the enabling act in accordance with the purposes specified in the enabling act for each land fund specified in section 15-1662.

B. Beginning with the 1998-1999 fiscal year, the universities land fund shall be known as the eminent scholars matching grant fund and shall consist of the annual income from the universities land fund. The eminent scholars matching grant fund shall be used to provide to the universities matching monies for the interest earned on nonpublic endowment monies donated to attract and retain eminent faculty. Appropriations to the Arizona board of regents for the eminent scholars matching grant fund shall commence in the 1998-1999 fiscal year. The eminent scholars matching grant fund shall be allocated as follows:

Monies in the eminent scholars matching grant fund shall be used to supplement and not supplant any other sources of monies for the universities. Monies shall be allocated to each university on a dollar-for-dollar match basis. The amount allocated shall be equal to the amount of interest earned in the previous calendar year by each university on the nonpublic endowment monies donated from and after December 31, 1997 which are designated by the universities as being solely for the purpose of attracting and retaining eminent faculty.
If the monies appropriated by the legislature for the eminent scholars matching grant fund are greater than the amount of interest earned on the nonpublic endowment monies designated by the universities for expenditure as provided in this subsection, the board may allocate the excess monies as provided in subsection A of this section.
If the monies appropriated by the legislature for the eminent scholars matching grant fund are less than the amount of interest earned on the nonpublic endowment monies designated by the universities for expenditure as provided in this subsection, the board shall allocate the monies to each university in a manner deemed appropriate.

§ 15-1664 Expenditure of monies

All monies for the use and benefit of an institution under its jurisdiction shall be expended under the direction and control of the Arizona board of regents for the support and maintenance of such institution, buildings and grounds, and for any other purpose the board deems expedient if not inconsistent with provisions of any appropriations.

§ 15-1665 Acceptance of federal and other monies

The Arizona board of regents may accept grants of monies from the United States or any of its officers or agencies designated or created to make grants for public construction work, or from any individual, group of individuals, corporation or association.

§ 15-1666 Federal monies; deposit and expenditure

Monies obtained by the universities from the United States under special acts of Congress for specific purposes shall be deposited in a special fund by the board, and it shall be administered in accordance with the purpose of the act of Congress.

§ 15-1667 Federal aid to experiment stations

The state assents to the provisions and accepts the benefits of the act of Congress entitled "an act to authorize the more complete endowment of agricultural experiment stations and for other purposes, approved February 24, 1925." The Arizona board of regents is designated as a state board for the purposes of this section and is empowered to cooperate with agencies of the federal government in administering the federal law.

§ 15-1668 Deposits of universities monies to be secured; exception

A. Monies deposited by the universities shall be secured by regularly issued and interest-bearing bonds of the United States government or state, county, municipal or school district improvement bonds of this state of a market value equal at all times to the amount of the deposits, and all public depositories are directed to give such security.

B. The public depository may, in lieu of depositing bonds described in this section, deposit the safekeeping receipt of a federal reserve bank or any bank located in a central reserve city whose combined capital and surplus on the date of the safekeeping receipt is ten million dollars or more, evidencing the deposit therein of such securities. The safekeeping receipt shall be endorsed or assigned to the comptroller of the respective institution making the deposit.

C. The condition of the deposit of securities, or a safekeeping receipt in lieu thereof, shall be that the public depository will upon lawful demand therefor promptly pay the monies in its custody to the institution making the deposit.

D. Notwithstanding the requirements of this section, any public depository under the provisions of title 35, chapter 2 may accept deposits of public monies to the total authorized insurance on accounts insured by the federal deposit insurance corporation or the federal savings and loan insurance corporation without depositing a surety bond or securities in lieu of such security bond.

§ 15-1669 Payment of salaries; sick leave

A. The Arizona board of regents may provide for payment of annual salaries of any person appointed or employed as provided in section 15-1626, subsection A, paragraph 2, over a twelve month pay period pursuant to agreement between such person and the board.

B. The Arizona board of regents shall require institutions under its jurisdiction as part of payroll reporting procedures to identify and report hours of sick leave earned by any person appointed or employed as provided in section 15-1626, subsection A, paragraph 2, and absences on account of sickness. Compensation paid to employees on account of sickness shall be so identified in the accounting records of the institution.

§ 15-1670 Appropriations for university research infrastructure facilities; university transfers; annual report; definitions

A. In fiscal years 2017-2018 through 2030-2031, the following sums are appropriated from the state general fund to Arizona state university for lease-purchase capital financing for research infrastructure projects:

In fiscal year 2017-2018, $13,481,000.
In fiscal year 2018-2019, $13,478,700.
In fiscal year 2019-2020, $13,456,300.
In fiscal year 2020-2021, $13,458,700.
In fiscal year 2021-2022, $13,451,900.
In fiscal year 2022-2023, $13,462,100.
In fiscal year 2023-2024, $13,468,200.
In fiscal year 2024-2025, $13,459,300.
In fiscal year 2025-2026, $13,453,900.
In fiscal year 2026-2027, $13,450,100.
In fiscal year 2027-2028, $13,436,200.
In fiscal year 2028-2029, $13,430,800.
In fiscal year 2029-2030, $13,423,500.
In fiscal year 2030-2031, $13,428,800.

B. In fiscal years 2017-2018 through 2030-2031, the following sums are appropriated from the state general fund to the university of Arizona for lease-purchase capital financing for research infrastructure projects:

In fiscal year 2017-2018, $14,249,300.
In fiscal year 2018-2019, $14,251,000.
In fiscal year 2019-2020, $14,250,200.
In fiscal year 2020-2021, $14,251,500.
In fiscal year 2021-2022, $14,248,900.
In fiscal year 2022-2023, $14,252,500.
In fiscal year 2023-2024, $14,255,300.
In fiscal year 2024-2025, $14,247,300.
In fiscal year 2025-2026, $14,248,400.
In fiscal year 2026-2027, $14,251,300.
In fiscal year 2027-2028, $14,254,100.
In fiscal year 2028-2029, $14,251,500.
In fiscal year 2029-2030, $14,252,500.
In fiscal year 2030-2031, $14,255,800.

C. In fiscal years 2017-2018 through 2030-2031, the following sums are appropriated from the state general fund to northern Arizona university for lease-purchase capital financing for research infrastructure projects:

In fiscal year 2017-2018, $5,896,500.
In fiscal year 2018-2019, $5,896,200.
In fiscal year 2019-2020, $5,899,500.
In fiscal year 2020-2021, $4,879,500.
In fiscal year 2021-2022, $5,039,800.
In fiscal year 2022-2023, $5,301,500.
In fiscal year 2023-2024, $5,302,900.
In fiscal year 2024-2025, $4,885,500.
In fiscal year 2025-2026, $4,884,500.
In fiscal year 2026-2027, $4,884,300.
In fiscal year 2027-2028, $4,894,000.
In fiscal year 2028-2029, $4,888,400.
In fiscal year 2029-2030, $4,892,000.
In fiscal year 2030-2031, $4,889,300.

D. Lease-purchase financing agreements under subsections A, B and C of this section:

Must be entered into before July 1, 2006.
Are subject to the requirements of section 15-1682.01.

E. The appropriations under subsections A, B and C of this section constitute continuing year-to-year appropriations but do not constitute an obligation of the legislature or this state to continue the appropriation in any fiscal year. The annual appropriation is a current expense of this state in the fiscal year in which it occurs and is not a general obligation indebtedness of this state or of any university. If the appropriation is discontinued in any fiscal year, this state and the university are relieved of any subsequent obligation pursuant to this section.

F. Beginning in fiscal year 2018-2019 and in each subsequent fiscal year for which an appropriation is made pursuant to subsections A, B and C of this section, for each individual licensure agreement, royalty agreement or agreement for the sale or transfer of intellectual property developed by a university that is entered into by the university or a component unit of the university and for which the net income for the individual agreement reaches $1,000,000 over its cumulative lifetime, each university shall transfer to the state treasurer not later than October 1 following the close of the fiscal year an amount equal to twenty percent of the cumulative net income exceeding the $1,000,000 threshold minus amounts deposited in previous years. The state treasurer shall deposit the monies received from the universities pursuant to this subsection in the financial aid trust fund established pursuant to section 15-1642.

G. When calculating the cumulative net income pursuant to subsection F of this section, the university may not reduce its required deposits from any agreements due to net income or expenses associated with other projects.

H. The amount transferred to the state treasurer in each fiscal year by each university pursuant to subsection F of this section shall not exceed the amount appropriated in that fiscal year under subsection A, B or C of this section and section 15-1671, subsections B and C, respectively.

I. On or before October 1 of each year, each university shall report to the joint legislative budget committee the total amount of income and the total amount of net income the university received in the preceding fiscal year from each category of income that is subject to deposit pursuant to subsection F of this section.

J. For the purposes of this section:

"Component unit of the university":

(a) Means an entity that is legally separate from, but related to, the university and whose primary purpose is to support the university.

(b) Includes a university foundation and an entity that contracts with the university to manage technology transfer activities.

"Net income" means payments received from individual licensure and royalty agreements and the sale or transfer of intellectual property developed by the university, net of expenses related to individual agreements. For the purposes of this paragraph, "expenses related to individual agreements" includes any of the following:

(a) Revenue shares paid to inventors and inventors' laboratories in support of their research activities.

(b) Expenses related to pursuing, maintaining or protecting intellectual property.

(d) Contractually required distributions to third parties.

(e) Reimbursement holds related to future contractual reimbursements.

(f) Operational management fees.

"Research infrastructure" means installations and facilities for continuance and growth of scientific and technological research activities at the university.

§ 15-1671 University infrastructure capital financing; capital infrastructure funds; appropriations; uses; review; definitions

A. A capital infrastructure fund is established for each university. Monies in each capital infrastructure fund are continuously appropriated for the purposes of this section. Each university shall administer its own capital infrastructure fund. Monies in the capital infrastructure funds are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. In fiscal year 2018-2019, the following amounts are appropriated from the state general fund for deposit in the capital infrastructure fund of each university:

$11,927,400 to Arizona state university.
$10,551,700 to the university of Arizona.
$4,520,900 to northern Arizona university.

C. In fiscal years 2019-2020 through 2042-2043, an amount is appropriated annually from the state general fund for deposit in the capital infrastructure fund of each university. The amount appropriated each fiscal year is equal to the amount appropriated pursuant to this section in the preceding fiscal year, adjusted by a growth rate of either two percent or the change in the implicit price deflator for the gross domestic product reported by the United States department of commerce from the second quarter of the second preceding calendar year to the second quarter of the calendar year immediately preceding the fiscal year, whichever is less, but not below the amount appropriated in the preceding fiscal year. Each annual appropriation amount is a current expense of this state in the fiscal year in which it occurs and is not a general obligation indebtedness of this state or of any university.

D. In each fiscal year in which monies are appropriated pursuant to this section, each respective university shall also deposit from its own funds to its capital infrastructure fund a matching amount equal to the amount of general fund monies used for paying debt service on debt financing for capital projects pursuant to subsection E of this section.

E. Each university shall use the monies in its capital infrastructure fund, from whatever source, exclusively for either the costs of, or paying debt service on debt financing for, capital projects. Monies from the capital infrastructure funds established by this section may not be used:

For any project reviewed by the joint committee on capital review before April 15, 2017.
For the construction, use, furnishing, improvement, operation, marketing, promotion or maintenance of a facility that is used primarily by a professional sports franchise.
To pay for operating expenditures.

F. The Arizona board of regents shall not issue total debt financing for which debt service is paid with monies pursuant to this section in a principal amount of more than $1,000,000,000.

G. Each university shall report the required information relating to its capital infrastructure fund in the budget estimate filed by the university pursuant to section 35-113.

H. Before spending any monies in the capital infrastructure fund for any capital project not paid with debt financing, each university shall submit the scope, purpose and estimated cost of the project for review by the joint committee on capital review pursuant to section 41-1252.

I. Before spending any monies in the capital infrastructure fund for any capital project paid with debt financing, each university shall submit the scope, purpose and estimated cost of the project to the joint committee on capital review pursuant to section 15-1682.01 or 15-1683. The project may not proceed until the committee approves the project by a majority vote of a quorum of members.

J. The joint committee on capital review must hear and review a project submitted under subsection H of this section and hear and approve or disapprove a project submitted under subsection I of this section not later than the committee's second meeting after the project is submitted to the committee.

K. The Arizona board of regents, on behalf of each university under its jurisdiction, may enter into or issue debt financings and may additionally secure, pledge for or make payment on such debt financings in whole or in part from monies in the capital infrastructure fund of that university. Debt service payments funded with monies from a university's capital infrastructure fund shall be included in the calculation of that university's debt service limit as prescribed by section 15-1683.

L. The Arizona board of regents, on behalf of each university under its jurisdiction, may refund any debt financing paid with monies pursuant to this section. The refunding debt financing must be secured from the same source of revenues as the debt financing authorized by this section. The refunding debt financing may be issued at or before maturity of the debt financing being refunded. Refunding debt financing issued as provided by this subsection:

Must be submitted by the board for review by the joint committee on capital review. The committee must hear and review a refunding debt financing submitted pursuant to this subsection not later than the committee's second meeting after the refunding debt financing is submitted to the committee.
Is not subject to the $1,000,000,000 limit prescribed by subsection F of this section.

M. For the purposes of this section:

"Capital project" or "project" means any building, structure, infrastructure or facility that, as determined by the university, is required by or necessary for the use or benefit of the university, including appurtenant equipment and utilities. Capital project does not include a project that is intended to be commercial in nature and for which the majority of the project's business is anticipated to come from the nonuniversity population.
"Debt financing" means a lease-purchase or lease-to-own agreement, subject to section 15-1682.01, the issuance of bonds or the entering into of bond agreements pursuant to article 5 of this chapter by the Arizona board of regents on behalf of a university under the board's jurisdiction.
"Debt service" means the principal of and interest and premium, if any, on long-term indebtedness, when due, and the costs of registrars, trustees, underwriters and other agents necessary to handle debt instruments and the costs of credit enhancement or liquidity support.
"Infrastructure" means nonbuilding improvements that directly support the operation of a building, structure or facility such as utility systems, roadway systems, external lighting systems, irrigation systems, sidewalks and parking lots.

Article 5 Issuance of Bonds

§ 15-1681 Definitions

In this article, unless the context otherwise requires:

"Acquire" includes to purchase, lease, lease-purchase, erect, build, construct, reconstruct, raze, remodel, repair, replace, alter, extend, expand, better, equip, furnish, develop, improve and embellish a project, and the acquisition, preparation and development of a site or sites therefor.
"Board" means the Arizona board of regents or its successor.
"Bonds" means any bonds issued pursuant to this article.
"Component unit" means an entity for which the nature and significance of its relationship with the board or institution is such that exclusion would cause the board's or institution's financial statements to be misleading or incomplete.
"Federal agency" means the United States of America, the president of the United States of America, the department of housing and urban development or such other agency or agencies of the United States of America as may be designated or created to make loans or grants, or both.
"Indirect or third party financing":

(a) Means an agreement between the board or an institution and a component unit of an institution, a nonprofit organization or a private developer in which the component unit, organization or developer pays for, issues bonds for or enters into lease or lease-purchase agreements for:

(i) Capital projects on the property of an institution.

(ii) Capital projects intended to house any institution activities.

(iii) Capital projects in which the board or institution guarantees revenues to the component unit, organization or developer or debt service payments on behalf of the component unit, organization or developer.

(iv) Capital projects, which may eventually become state assets.

(b) Does not include a project that is intended to be commercial in nature and if the majority of the project's business is anticipated to come from the nonuniversity population.

"Institution" means the university of Arizona, Arizona state university and northern Arizona university or any other college or university under the jurisdiction and control of the board or its successor.
"Project" means and includes buildings, structures, areas and facilities which, as determined by the board, are required by or necessary for the use or benefit of each of such institutions, including, without limiting the generality of the foregoing, student, faculty or staff housing facilities, residence halls, dormitories and apartments; student union and recreational buildings and stadiums; other facilities for student, faculty or staff services; any facility or building leased to the United States of America; parking garages and areas; offices, classrooms, laboratories, dining halls and food service facilities, libraries, auditoriums, or parts thereof, or additions or extensions thereto; heating, lighting and other utility service facilities in connection therewith, or parts thereof, or additions or extensions thereto; whether heretofore acquired and now or hereafter used for any or all of the purposes aforesaid, or as may be hereafter acquired under this article, with all equipment and appurtenant facilities; or any one, or more than one, or all of the foregoing, or any combination thereof, for any institution, including sites therefor.
"System of building facilities" means such project or projects as the board by resolution shall collectively designate to be included in a system of building facilities at each institution, either:

(a) Hereafter acquired for each of such institutions under the terms of this article.

(b) Heretofore acquired for each of such institutions prior to May 17, 1974 under the terms of any other law and now located on the campus of each of such institutions, whether unencumbered by or encumbered by a pledge of and lien on the income and revenues derived from the operation thereof for the payment of any bonds theretofore issued by the board for the acquisition thereof.

(d) Any combination of as provided in subdivisions (a), (b) and (c) of this paragraph.

§ 15-1682 Powers

The board shall have power for each institution, as defined in this article, to:

Acquire, if authorized by the legislature, any project or projects, or any combination thereof, and to secure indirect or third-party financing for or own, operate and maintain the same and establish, own, operate and maintain a system of building facilities.
Acquire by purchase, contract, lease-purchase, lease or gift, and hold or dispose of, real or personal property or rights or interest therein.
Accept grants, subsidies or loans of monies from a federal agency, or others, on such terms and conditions as may be imposed, and to pledge the proceeds of grants, subsidies or loans of monies received or to be received from the United States of America or any agency or instrumentality thereof, or others, pursuant to agreements entered into between the board and the United States of America, or any agency or instrumentality thereof, or others.
Borrow monies and issue bonds to acquire any one project, or more than one, or any combination thereof, if authorized by the legislature, and to refund bonds heretofore or hereafter issued to acquire any project or projects, or to refund any such refunding bonds, or for any one, or more than one, or all of such purposes, or any combination thereof, and to provide for the security and payment of such bonds and for the rights of the holders thereof.
Make contracts and leases and execute all instruments and perform all acts and do all things necessary or convenient to carry out the powers granted in this article.
Retain in its treasury:

(a) All monies received from the sale of all bonds issued under this article.

(b) All fees, tuitions, rentals and other charges from students, faculty, staff members and others using or being served by, or having the right to use or the right to be served by, or to operate, any project.

(c) All fees for student activities and student services and all other fees, tuitions and charges collected from students matriculated, registered or otherwise enrolled at and attending each institution pledged under the terms of any resolution authorizing bonds pursuant to this article.

(d) All rentals from any facility or building leased to the United States of America.

Obtain lines of credit for cash management or liquidity purposes and to issue commercial paper as provided in section 15-1696.

§ 15-1682.01 Lease-purchase agreements

A. Any lease-purchase agreement executed by the board relating to land acquisition, capital projects, energy systems or energy management systems shall provide that:

The obligation of this state to make any payment under the agreement is a current expense of the board and is not a general obligation indebtedness of this state or the board.
If the legislature fails to appropriate monies or the board fails to allocate monies for any periodic payment or renewal term of the agreement, the agreement terminates at the end of the current term and this state and the board are relieved of any subsequent obligation under the agreement.
The joint committee on capital review shall review the project before the lease-purchase agreement takes effect.

B. A lease-purchase agreement under this section shall comply with the constitution and other laws of this state.

§ 15-1682.02 Indirect and third party financing; review; reporting

A. The board may secure indirect or third party financing for any project if the following conditions are met:

The term of the indirect or third party financing does not exceed the earlier of forty years or the useful life of the capital improvements.
The project for which indirect or third party financing is secured is reviewed by the joint committee on capital review. Private entities are not required to divulge proprietary information to the committee for review.

B. For a project that is to be developed on board or institutional land, that is intended to be commercial in nature and if the majority of the project's business is anticipated to come from the nonuniversity population, the board or institution shall report on the scope, purpose and estimated cost of the project to the joint committee on capital review at least two months before the anticipated execution of an agreement. A private entity is not required to divulge proprietary information to the joint committee on capital review. The joint committee on capital review may provide recommendations to the board or a university on the reported project.

§ 15-1682.03 University capital improvement lease-to-own and bond fund; lease-to-own and bond agreements for capital improvements; joint committee on capital review hearing and approval; exemption

A. The university capital improvement lease-to-own and bond fund is established consisting of the monies provided by the Arizona board of regents pursuant to this section, monies deposited pursuant to section 5-572 and monies appropriated by the legislature. The board shall administer the fund. On notice from the 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 fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. Through revenues of the state university system, the board shall annually provide monies to the fund of at least twenty percent of the aggregate annual payments of lease-to-own and bond agreements entered into by the board pursuant to this section.

C. Subject to the requirements prescribed by subsection D of this section, the board shall distribute monies in the fund to make payments pursuant to lease-to-own and bond agreements entered into by the board pursuant to this section. The board may enter into lease-to-own and bond agreements for the purposes of building renewal projects and new facilities. The board may enter into lease-to-own and bond transactions up to a maximum of $1,125,000,000. Of the maximum of $1,125,000,000 in lease-to-own and bond agreements authorized by this section, the board shall allocate $325,000,000 as follows:

Beginning in fiscal year 2025-2026, $162,500,000 to Arizona state university, northern Arizona university and university of Arizona. The board shall allocate at least twenty-five percent but not more than forty-five percent to each university.
Beginning in fiscal year 2026-2027, $162,500,000 to Arizona state university, northern Arizona university and university of Arizona. The board shall allocate at least twenty-five percent but not more than forty-five percent to each university.

D. Beginning on September 26, 2025, the board shall submit to the joint committee on capital review the scope, purpose and estimated cost of each new project that will be financed pursuant to this section. The board may not distribute monies for a project that the board is required to submit pursuant to this subsection until the joint committee on capital review approves the project by a majority vote of a quorum of members. For the purposes of this subsection, "financed" means funded, in whole or in part, by either of the following:

Payments pursuant to lease-to-own agreements entered into by the board pursuant to this section.
The proceeds of one or more bond agreements entered into by the board pursuant to this section.

E. The joint committee on capital review must hear and approve or disapprove a project submitted pursuant to subsection D of this section not later than the committee's second meeting after the project is submitted to the committee.

F. In entering into lease-to-own and bond agreements pursuant to this section, the board shall not obligate this state to provide any additional monies from the state lottery fund above the amounts authorized in this section and section 5-572, subsection F. In entering into lease-to-own and bond agreements pursuant to this section, the board shall not obligate any state general fund monies.

§ 15-1683 Issuance of bonds

A. The board shall have power, and is hereby authorized from time to time, to issue bonds:

To acquire any one project, or more than one, or any combination thereof, for such institution, if both of the following conditions are met:

(a) As of the date of issuance of bonds or certificates of participation for any institution, projected debt service on bonds and certificates of participation then outstanding and proposed to be issued for such institution, as shown in the most recent capital improvement plan reported to the board, may not exceed, in any fiscal year shown in such capital improvement plan, more than eight per cent of such institution's total projected expenditures and mandatory transfers. The calculation of compliance with this condition shall be as set forth in and approved by the board in its adopted capital improvement plan for such institution. Projected debt service in the capital improvement plan for any project financed with commercial paper shall be calculated based on the projected debt service on the permanent financing for the project or, for projects that are not expected to be replaced with permanent financing, the projected debt service shall be calculated based on an assumed financing term of thirty years.

(b) The project to be acquired with the proceeds of the bonds is reviewed by the joint committee on capital review.

To refund bonds heretofore and hereafter issued to acquire any project or projects for such institution as hereinafter provided for.
To refund any such refunding bonds.
For any one, or more than one, or all of such purposes, or any combination thereof.

B. All bonds shall be authorized by resolution of the board and may be issued in one or more series, may bear such date or dates, may be in such denomination or denominations, may mature at such time or times not exceeding the earlier of forty years from the respective dates thereof or the useful life of the capital improvements, may mature in such amount or amounts, may bear interest at such rate or rates as shall be determined by the board, payable at such time or times, may be in such form, either coupon or registered as to principal only or as to both principal and interest, may carry such registration privileges, including the conversion of a fully registered bond to a coupon bond or bonds and the conversion of a coupon bond to a fully registered bond, may be executed in such manner, may be made payable in such medium of payment, at such place or places within or without the state, and may be subject to such terms of redemption prior to their expressed maturity, with or without premium, as such resolution or other resolutions may provide. All bonds issued under this article shall be sold as the board shall determine. Such resolution may provide that one of the officers of the board shall sign such bonds manually and that the other signatures may be printed, lithographed, engraved or otherwise reproduced thereon. The coupon bonds shall be fully negotiable within the meaning of the uniform commercial code, title 47.

§ 15-1684 Refunding bonds

The board shall have power, and is hereby authorized from time to time, to issue refunding bonds:

To refund unpaid matured bonds.
To refund unpaid matured coupons evidencing interest upon its unpaid matured bonds.
To refund interest at the coupon rate upon its unpaid matured bonds that has accrued since the maturity of those bonds, provided that such refunding bonds may be exchanged for the bonds to be refunded on a par for par basis of the bonds, interest coupons and interest not represented by coupons, if any, or may be sold at not less than par, or may be exchanged in part and sold in part, and the proceeds received at any such sale shall be used to pay the bonds, interest coupons and interest not represented by coupons, if any, and all bonds and interest coupons which have been received in exchange or paid shall be cancelled and the obligation for interest not represented by coupons which has been discharged shall be evidenced by a written acknowledgment of the exchange or payment thereof.
To refund bonds at or prior to their maturity or which by their terms are subject to redemption before maturity, or both, in an amount necessary to refund the principal amount of the bonds to be refunded, the interest to accrue up to and including the maturity date or dates or to the next succeeding redemption date thereof, and the applicable redemption premiums, if any, and may be exchanged for not less than an equal principal amount of bonds to be refunded or may be sold as the board shall determine, or may be exchanged in part and sold in part, and all proceeds received at the sale thereof, excepting the accrued interest received, shall be used:

(a) If the bonds to be refunded are then due, for the payment thereof.

(b) If the bonds to be refunded are voluntarily surrendered with the consent of the holder or holders thereof, for the payment thereof.

(c) If the bonds to be refunded are then subject to prior redemption at the option of the board and if such option has been exercised, for the redemption thereof.

(d) If the bonds to be refunded are not then subject to payment or redemption, or if the bonds are subject to prior redemption and the board chooses to defer exercising the option to a later date or chooses to exercise the option at any prior redemption date and sets the date for such redemption or chooses not to exercise such option, to invest the proceeds received at the sale in obligations issued by or guaranteed by the United States of America or any department, agency or instrumentality thereof, that will mature at such time or times, with interest thereon or the proceeds received therefrom, to provide funds adequate to pay when due or called for redemption prior to maturity the bonds to be refunded, or the bonds issued to refund the bonds to be refunded, together with the interest accrued thereon and any redemption premium due thereon, and such proceeds or obligations of the United States of America shall, with all other funds legally available for such purpose, be deposited in escrow with a banking corporation or national banking association with power to accept and execute trusts, or any successor thereto, which is also a member of the federal deposit insurance corporation and of the federal reserve system, to be held in an irrevocable trust solely for and until the payment and redemption of the bonds so to be refunded, and any balance remaining in such escrow after the payment and retirement of the bonds to be refunded shall be used and held for use by such board as revenues pledged for the payment of such refunding bonds.

(e) For any combination thereof as provided in subdivisions (a) through (d).

§ 15-1685 Security of bonds

In connection with the issuance of any bonds under this article, and in order to secure the payment of any such bonds and the interest thereon, the board shall have power for each institution:

To fix, maintain and collect:

(a) Fees, tuitions, rentals and other charges from students, faculty, staff members and others using or being served by, or having the right to use or the right to be served by, or to operate, any project or system of institution building facilities.

(b) Fees for student activities, student services and all other fees and charges from students matriculated, registered or otherwise enrolled at and attending each such institution.

(c) Rentals from any facility or building leased to the United States of America, the aggregate of which shall be sufficient at all times to pay the bonds at maturity and accruing interest thereon in accordance with their terms, and to create and maintain all reserves therefor as provided by the resolution authorizing such bonds, and to pay all necessary expenses of the operation and maintenance of any project and system of building facilities.

To provide that bonds issued under this article shall be payable from and secured by a pledge of and lien on all or any part of the income and revenues derived from, and to pledge and assign to, or in trust for the benefit of, the holder or holders of bonds issued under this article all or any part of the income and revenues derived from:

(b) Fees for student activities, student services, and all other fees and charges collected from students matriculated, registered or otherwise enrolled at and attending each such institution.

(c) Rentals from any facility or building leased to the United States of America, except that, if such board provides that any bonds issued under this article shall also be payable from the income and revenues of any project heretofore acquired for each such institution, any such provision for the payment of such bonds from the income and revenues of any such project heretofore acquired for each such institution shall be subject to, and in all respects in full conformity and compliance with, the rights of the holders of any bonds or obligations payable from the income and revenues of any such project heretofore issued for each institution and then outstanding.

(d) Interest and earnings on investments.

To covenant with or for the benefit of the holder or holders of the bonds issued under this article that so long as any such bonds shall remain outstanding and unpaid the board will fix, maintain and collect in such installments as may be agreed upon:

(a) Fees, rentals and other charges from students, faculty, staff members and others using or being served by, or having the right to use or the right to be served by, or to operate any project or system of building facilities.

(b) Fees for student activities, student services and all other fees from students matriculated, registered or otherwise enrolled at and attending each institution pledged under the terms of any resolution authorizing bonds pursuant to this article.

(c) Rentals from any facility or building leased to the United States of America, the aggregate of which shall be sufficient at all times to pay the proportionate share of the bonds at maturity and accruing interest thereon in accordance with their terms and to create and maintain all reserves therefor as provided by the resolution authorizing such bonds until such bonds and accruing interest have been paid in accordance with their terms and to pay all necessary expenses of the operation and maintenance of any project or system of building facilities.

To covenant with or for the benefit of the holder or holders of bonds issued under this article as to all matters deemed advisable by the board, including:

(a) The purposes, terms and conditions for the issuance of additional parity or junior lien bonds that may thereafter be issued, and for the payment of the principal, redemption premiums and interest on such bonds.

(b) The kind and amount of all insurance to be carried, the cost of which shall be charged as an operation and maintenance expense of any project or system of building facilities.

(c) The operation, maintenance and management of any project or system of building facilities to assure the maximum use and occupancy thereof; the accounting for, and the keeping of records, reports and audits of, all income and revenue from, and all expenses of, any project or system of building facilities; and the employment of engineers and consultants.

(d) The obligation of the board to maintain any project or system of building facilities in good condition and to operate the same at all times in an economical and efficient manner.

(e) The terms and conditions for creating and maintaining sinking funds, reserve funds and such other special funds as may be created in the resolution authorizing such bonds, separate and apart from all other funds and accounts of such board and each institution.

(f) The procedure by which the terms of any contract with the holders of the bonds may be amended, the amount of the bonds the holders of which must consent thereto and the manner in which consent may be given.

(g) Providing the procedure for refunding such bonds.

(h) Such other covenants as may be deemed necessary or desirable to assure a successful operation of any project or system of building facilities and the prompt payment of the principal of and interest upon the bonds so authorized.

To make and enforce and agree to make and enforce parietal rules that shall insure the use of any project or system of building facilities to the maximum extent to which the same is capable of serving students, faculty, staff members and others using or being served by, or having the right to use or the right to be served by, or to operate, any project or system of building facilities.
To covenant that so long as any of the bonds issued under this article shall remain outstanding and unpaid it will not, except upon such terms and conditions as may be determined:

(a) Voluntarily create or cause to be created any debt, lien, mortgage, pledge, assignment, encumbrance or other charge having priority to the lien of the bonds issued under this article upon any of the income and revenue derived from:

(i) All fees, rentals and other charges from students, faculty, staff members and others using or being served by, or having the right to use or the right to be served by, or to operate, any project or system of building facilities.

(ii) Fees for student activities, student services and all other fees collected from students matriculated, registered or otherwise enrolled at and attending each institution.

(iii) All rentals from any facility or building leased to the United States of America.

(b) Convey or otherwise alienate any project or the real estate upon which such project shall be located, except at a price sufficient to pay all the bonds issued for such project then outstanding and interest accrued thereon, and then only in accordance with any agreements with the holder or holders of such bonds.

To vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to or for the benefit of the holder or holders of bonds issued under this article, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds; execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute events of default and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of any specified amount or percentage of such bonds may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.
To covenant to perform any and all acts and to do any and all such things as may be necessary or convenient or desirable in order to secure its bonds, or as may in the judgment of the board tend to make the bonds more marketable, notwithstanding that such acts or things may not be enumerated herein, it being the intention hereof to give the board issuing bonds pursuant to this article power to make all covenants, to perform all acts and to do all things not inconsistent with the Constitution of Arizona.

§ 15-1686 Effect on bonds authorized but unissued

All acts granting authority to the board to construct or acquire any buildings, projects or facilities and to issue bonds therefor shall be kept in full force and effect but shall be supplemented by this enactment if both of the following occur:

Bonds remain authorized but not sold and the land, project, buildings or facilities have not been fully acquired or constructed.
Due to the issuance of bonds authorized by this article, any revenues which otherwise would have been used to secure the unissued bonds, in whole or in part, have been applied to payment of bonds authorized by this article, then the board may issue the remaining bonds so authorized solely for the purposes of acquiring or constructing or completing the acquisition and construction of the projects heretofore authorized as parity bonds, notwithstanding the fact that the acts authorizing such additional bonds may limit the revenues available to be pledged for their repayment to specified revenues of the board.

§ 15-1687 Enforcement of contract

The provisions of this article and of any resolution or other proceeding authorizing the issuance of bonds shall constitute a contract with the holders of such bonds and the provisions thereof shall be enforceable either in law or in equity, by suit, action, mandamus or other proceeding in any court of competent jurisdiction to enforce and compel the performance of all duties required by this article, and by any resolution authorizing the issuance of bonds adopted responsive hereto.

§ 15-1688 Monies of the board

No monies derived from the sale of bonds issued under the provisions of this article or pledged or assigned to or in trust for the benefit of the holder or holders of the bonds shall be required to be paid into the state treasury but shall be invested in obligations issued by or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities, or shall be deposited by the treasurer or other fiscal officer of the board in such bank or banks or trust company or trust companies as may be designated by the board, and all deposits of such monies shall, if required by the board, be secured by obligations of the United States of a market value equal at all times to the amount of such monies on deposit. Such monies shall be disbursed as may be directed by the board and in accordance with the terms of any agreements with the holder or holders of any bonds. This section shall not be construed as limiting the power of the board to agree in connection with the issuance of any of its bonds as to the custody and disposition of the monies received from the sale of such bonds or from the income and revenues pledged or assigned to or in trust for the benefit of the holder or holders of the bonds.

§ 15-1689 Validity of bonds

The bonds bearing the signatures of officers of the board in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all persons whose signatures appear thereon shall have ceased to be such officers. The validity of the bonds shall not be dependent on nor affected by the validity or regularity of any proceedings to acquire any project financed by the bonds, or to refund outstanding bonds, or taken in connection therewith.

§ 15-1690 Prohibitions against obligating state of Arizona

Nothing in this article shall be construed to authorize the board to contract a debt on behalf of, or in any way to obligate, the state of Arizona, or to pledge, assign or encumber in any way, or to permit the pledging, assigning or encumbering in any way, of appropriations made by the legislature or revenue derived from the investment of the proceeds of the sale and from the rental of such lands as have been set aside by the enabling act approved June 20, 1910, or other legislative enactments of the United States, for the use and benefit of the board or the institution.

§ 15-1691 Bonds; obligations of board

All bonds issued pursuant to this article shall be obligations of the board issuing such bonds, payable only in accordance with the terms thereof, and shall not be obligations general, special or otherwise of the state of Arizona. Such bonds shall not constitute a debt, legal or moral, of the state of Arizona, and shall not be enforceable against the state, nor shall payment thereof be enforceable out of any funds of the board or the institution issuing such bonds other than the income and revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of such bonds.

§ 15-1692 Certification of bonds by attorney general

The board may submit to the attorney general of the state of Arizona any bonds to be issued hereunder after all proceedings for the issuance of such bonds have been taken. Upon the submission of such proceedings to the attorney general, it shall be the duty of the attorney general to examine into and pass upon the validity of such bonds and the regularity of all proceedings in connection therewith. If such proceedings conform to the provisions of this article and such bonds when delivered and paid for will constitute binding and legal obligations of the board enforceable according to the terms thereof, the attorney general shall certify in substance upon the back of each of such bonds that it is issued in accordance with the constitution and laws of the state of Arizona.

§ 15-1693 Bonds as legal investments

The state and all counties, cities, towns and other municipal corporations, political subdivisions and public bodies, and public officers of any thereof, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any debt service funds, monies or other funds belonging to them or within their control in any bonds issued pursuant to this article, it being the purpose of this section to authorize the investment in such bonds of all debt service, insurance, retirement compensation, pension and trust funds, whether owned or controlled by private or public persons or officers, except that nothing contained in this section may be construed as relieving any person, firm or corporation from any duty of exercising reasonable care in selecting securities for purchase or investment.

§ 15-1694 Excision of unconstitutional and ineffective parts of article

It is hereby declared that the sections, clauses, sentences and parts of this article are severable, are not matters of mutual essential inducement and any of them may be excised by any court of competent jurisdiction if this article would otherwise be unconstitutional or ineffective. It is the intention of this article to confer upon the board the whole or any part of the powers in this article provided for, and if any one or more sections, clauses, sentences or parts of this article shall for any reason be questioned in any court of competent jurisdiction and shall be adjudged unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions thereof but shall be confined in its operation to the specific provision or provisions so held unconstitutional or invalid, and the inapplicability or invalidity of any section, clause, sentence or part of this article in any one or more instances shall not be taken to affect or prejudice its applicability or validity in any other instance.

§ 15-1695 Supplemental nature of article; construction and purpose

The powers conferred by this article shall be in addition to and supplemental to the powers conferred by any other law, general or special, and bonds may be issued under this article notwithstanding the provisions of any other such law and without regard to the procedure required by any other such laws. Insofar as the provisions of this article are inconsistent with the provisions of any other law, general or special, the provisions of this article shall be controlling.

§ 15-1696 Commercial paper; requirements

A. The board has the power and is hereby authorized to issue commercial paper from time to time to provide short-term financing for any capital project or costs and expenses related to a capital project of one or more institutions or to provide for payment of commercial paper or other obligations previously issued. The commercial paper may be issued as notes or other obligations, to be issued as a single instrument or as a succession of instruments, each of which matures in not more than two hundred seventy days, to provide for payment of instruments previously issued.

B. The following apply to commercial paper issued under this section:

Commercial paper may be issued pursuant to a resolution of the board or pursuant to board-authorized agreements.
The board's repayment obligations on commercial paper may be payable from and secured by a pledge of the same sources and covenants allowed by section 15-1685, or other sources that may be pledged without violating article IX, section 5, Constitution of Arizona, or may be payable from amounts budgeted and allocated by the board for that purpose for the current fiscal period.
Any commercial paper payable from amounts budgeted and allocated by the board for that purpose for the current fiscal period shall provide that both:

(a) The obligation of the board to make any payments for or related to the commercial paper is a current expense of the board and is not a general obligation indebtedness of the board or this state.

(b) If the board fails to budget and allocate monies for any periodic payment or renewal term for any future fiscal period, the board's obligation to make payments for or related to the commercial paper ceases at the end of the current fiscal period, and the board and this state are relieved of any subsequent payment obligations.

The board shall establish by resolution or in the authorizing agreement a final maturity date or final renewal period for commercial paper and a maximum rate of interest for commercial paper issued pursuant to this section. The individual instruments representing the commercial paper may bear interest at rates not exceeding the maximum rate established by the board, may mature and be retired, including with the proceeds of subsequent instruments, over periods ending not later than the final maturity date or renewal period established by the board and may be retired with the proceeds of bonds or other obligations of the board.
Commercial paper may be sold through an agent or dealer that is recognized in municipal finance. Commercial paper shall mature at intervals, bear interest, be in the form, be executed and have such other terms and conditions as provided by the board.
In connection with the commercial paper requirements of this section, the board may:

(a) Contract with a bank or other financial institution, insurance company or indemnity company to provide additional security for the commercial paper in the form of a letter of credit, a line of credit, an insurance policy or other security.

(b) Pay the costs of the additional security from amounts provided by the commercial paper or from other lawfully available sources and may enter into reimbursement obligations in connection with the cost of that additional security.

Any reimbursement obligation entered into with a bank or other financial institution, insurance company or indemnity company may not provide for the payment of interest in excess of the maximum interest rate established by the board for the commercial paper or a different maximum interest rate established by the board for the reimbursement obligation. The reimbursement obligation may be payable from the same source as the commercial paper or from other lawfully available monies of the board but may not constitute a general obligation of the board or this state.
Any commercial paper issued by the board pursuant to this section shall be repaid within two hundred seventy days, and at no time shall the outstanding principal amount of commercial paper be more than twenty-five percent of a university's total debt capacity as reported to the board pursuant to section 15-1683, subsection A, paragraph 1.

Article 6 Financial Aid

§ 15-1701 Arizona promise program; eligibility requirements; award; fund; definitions

A. Eligible postsecondary institutions shall implement an Arizona promise program to provide financial assistance to students who meet the criteria prescribed in this section and who are pursuing studies in this state leading to a baccalaureate degree.

B. Except as otherwise provided by law, to be eligible to participate in the Arizona promise program and to qualify for an award under this section, a student shall meet all of the following requirements:

Qualify for in-state student status as prescribed in section 15-1802.
Have graduated from a high school in this state with a minimum 2.5 cumulative grade point average on a 4.0 scale for all work attempted in grades nine through twelve.
Satisfy the admission standards as determined by an eligible postsecondary institution.
Complete and submit the free application for federal student aid and meet the eligibility criteria for the federal pell grant.
Secure admission to, and be enrolled in, an eligible postsecondary institution for at least full-time status as determined by federal student financial aid guidelines.

C. To retain eligibility while pursuing the program of higher learning in which the student is enrolled, the student shall meet all of the following requirements:

Maintain satisfactory academic progress as required for eligibility for federal student financial aid.
Complete and submit the free application for federal student aid.
Maintain at least full-time status as determined by federal student financial aid guidelines.
Comply with the standards related to maintenance of eligibility as adopted by the governing board of the eligible postsecondary institution.

D. Each eligible postsecondary institution shall provide to each eligible student an award up to the actual cost of in-state tuition and fees, except that an award provided pursuant to this section shall be reduced by the amount of any other federal aid scholarships or public grants and any other financial gifts, grants or aid received by that person.

E. An award under this section may be awarded for a maximum of eight academic semesters or their equivalent.

F. An award under this section shall be awarded to all eligible applicants without limit other than the amount of monies available for the Arizona promise program and the number of eligible applicants. If appropriated monies are insufficient to provide awards for all eligible applicants, the Arizona board of regents shall guarantee the award for applicants who enroll in a university under the jurisdiction of the Arizona board of regents.

G. The Arizona promise program fund is established consisting of legislative appropriations and any other monies for the purpose of administering the Arizona promise program and distributing award monies. The Arizona board of regents shall administer the fund, including developing and implementing centralized administrative processes for distributing monies in the fund to eligible postsecondary institutions each fiscal year. The Arizona board of regents may accept and spend federal monies and private grants, gifts, contributions and devises, including private, philanthropic, public and other sources of monies, to assist in carrying out the purposes of this section. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund may be used for any of the following:

Reimbursing Arizona promise program awards that cover the balance of tuition and fees for eligible participants enrolled in an eligible postsecondary institution after all other gifts and aid received.
Administering the Arizona promise program, including hiring and retaining additional personnel. The administration of the program includes data collection, reporting, tracking and analyzing the program.
Designing and implementing a marketing and promotion plan for the Arizona promise program.

H. Annual expenditures for marketing, promoting and administering the Arizona promise program may not exceed three percent of the monies in the fund each fiscal year.

I. Monies remaining in the Arizona promise program fund at the end of each fiscal year may be used by eligible postsecondary institutions for Arizona promise program costs in the next fiscal year.

J. For the purposes of this section:

"Eligible postsecondary institutions" means universities under the jurisdiction of the Arizona board of regents.
"Tuition and fees" means tuition, mandatory fees and program fees that are associated with a program in the eligible postsecondary institution and that are charged by an eligible postsecondary institution.

§ 15-1702 Arizona board of regents; state higher education agency; state scholarship grant agency

A. The Arizona board of regents shall serve as the state higher education agency as identified in 20 United States Code section 1003(22) and as the state scholarship grant agency to exchange data electronically with the United States department of education in the student aid internet gateway.

B. The Arizona board of regents shall administer the applicable programs as identified in this article and as established by the higher education amendments of 1998 (P.L. 105–244; 112 Stat. 1581) for the state higher education agency and the state scholarship grant agency.

§ 15-1703 Arizona leveraging educational assistance program; grants; criteria

A. The Arizona leveraging educational assistance program is established to provide student financial assistance in the form of need-based grants to eligible students to attend postsecondary educational institutions in this state. The Arizona board of regents shall administer the program.

B. A student is eligible to participate in the Arizona leveraging educational assistance program established by this section if the student meets all of the following criteria:

Is a resident of this state.
Demonstrates financial need under the criteria established by the Arizona board of regents for the program.
Is attending, on at least a half-time basis, an approved program at a properly accredited postsecondary educational institution in this state.

C. A participating postsecondary educational institution may receive matching monies from the postsecondary educational fund established by section 15-1704 to provide eligible students with financial assistance in the form of need-based grants. To be eligible to receive state matching monies, each participating postsecondary educational institution, public or private, shall provide an amount of matching monies that equals the amount of monies provided to the institution by this state from the postsecondary educational fund.

D. The Arizona board of regents may require participating postsecondary educational institutions to report on the use of monies distributed under this section, including the number of grants provided and the demographics of students receiving the grants.

§ 15-1704 Postsecondary educational fund; exemption; use of monies

A. The postsecondary educational fund is established. The Arizona board of regents shall administer the fund, which consists of the following:

Monies appropriated by the legislature.
Monies received from state agencies and political subdivisions of this state.
Monies received from the United States government, including monies received from the United States department of education.
Gifts, grants and donations received from any private source.
Monies received from a postsecondary educational institution through a program participation agreement.

B. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. Monies in the postsecondary educational fund shall be used for the following purposes:

Providing matching monies as prescribed in section 15-1703, subsection C.
Administrative expenses necessary for the Arizona board of regents to administer the programs identified in this article and to serve as the state higher education agency and the state scholarship grant agency.

§ 15-1705 Arizona community colleges promise program; eligibility; fund; definitions

A. If monies are appropriated to the Arizona community colleges promise program fund established by subsection E of this section, each district in this state shall establish and administer a community college promise scholarship fund consisting of monies received pursuant to subsection E of this section, grants, gifts and contributions and devises. Monies in the community college promise scholarship fund are continuously appropriated and may be used for providing financial assistance to eligible students. Each district may use up to ten percent of the monies the district receives pursuant to subsection E of this section for administrative expenses and student support services. If there are insufficient monies in the community college promise scholarship fund to provide financial assistance to all eligible students, the district shall consider the following factors when establishing scholarship priorities:

Socioeconomic factors that pose barriers to student success, as determined by the district.
A student's community engagement, including participation in community service projects.
Additional factors as determined by the district.

B. A student is eligible for a financial aid award pursuant to this section if the student:

For an initial award:

(a) Qualifies for resident student status as prescribed in section 15-1802.01.

(b) Satisfies the admission standards as determined by the community college.

(c) Completes and submits the free application for federal student aid and meets the income eligibility criteria for a federal pell grant.

(d) Is admitted to and enrolled in the community college.

To maintain eligibility after receiving an initial award:

(a) Annually completes and submits the free application for federal student aid.

(b) Maintains enrollment at a community college.

(d) Complies with the standards related to maintenance of eligibility adopted by the district, district board or community college.

C. Each district board or community college shall establish a policy or guidelines outlining qualified expenses for which a student may use monies from a financial aid award pursuant to this section. Any policy or guidelines established pursuant to this subsection must allow an award recipient to use the monies for any cost of attending the community college and may not require the monies to be used only for tuition.

D. A district shall reduce a student's financial aid award pursuant to this section by the amount of any other federal aid scholarship, public grant and public aid received by the student from or through the community college in which the student is enrolled, including local scholarship programs, except that the award may not be reduced by the amount of federal grants received by the student from the department of child safety pursuant to the Arizona education and training voucher program.

E. The Arizona community colleges promise program fund is established consisting of monies deposited pursuant to section 15-1809, subsection E and legislative appropriations. The Arizona board of regents shall administer the fund. Monies in the fund are continuously appropriated and exempt from section 35-190 relating to lapsing of appropriations. The Arizona board of regents shall distribute monies in the fund to each district as follows:

Twenty percent of the monies appropriated for each fiscal year shall be divided equally among all districts in this state.
Eighty percent of the monies appropriated for each fiscal year shall be divided proportionately among all districts in this state based on each district's full-time equivalent student enrollment relative to the statewide audited full-time equivalent student enrollment for the preceding fiscal year, as prescribed in section 15-1466.01.

F. For the purposes of this section:

"Community college" has the same meaning prescribed in section 15-1401.
"District" means a community college district established pursuant to sections 15-1402 and 15-1403.
"District board" has the same meaning prescribed in section 15-1401.

Article 7 Medical Student Loans

§ 15-1721 Definitions

In this article, unless the context otherwise requires:

"Board" means the board of medical student loans.
"GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.
"Medically underserved area" means an area of this state designated by the department of health services pursuant to title 36, chapter 24, article 1 or by federal law.
"Medically underserved population" means an area designated by the United States department of health and human services.
"Rural" means either of the following:

(a) A county with a population of less than four hundred thousand persons.

(b) A census county division with less than fifty thousand persons in a county with a population of at least four hundred thousand persons.

§ 15-1722 Board of medical student loans; members; terms; officers; compensation

A. The board of medical student loans is established and consists of the following members:

Two members who are appointed by the governor and who are knowledgeable in the problems of health care in Arizona.
The director of the department of health services or the director's designee.
One representative from each accredited medical school in this state who is appointed by the president or chief officer of that medical school.

B. The terms of members are four years beginning on the third Monday in January.

C. The board shall select a chairman and vice chairman and such other officers as it deems necessary.

D. Board members shall be compensated as determined pursuant to section 38-611.

§ 15-1723 Medical student loans; amount; qualifications; requirements

A. The board may grant loans from the medical student loan fund established by section 15-1725 to defray the expenses of the medical education of those students at a public or private school of medicine in this state who intend to enter and complete a residency program approved by the accreditation council for graduate medical education or by the American osteopathic association and who are deemed qualified by the board to receive such loans. Loans shall be granted on such terms and conditions as may be imposed by the board and shall be distributed on a first-come, first-served basis. One of the qualifications shall be Arizona residency, which shall be determined according to the same criteria prescribed for in-state student status in section 15-1802.

B. The loans granted by the board shall provide for each student tuition plus a living allowance. Beginning in 2006-2007 and continuing each year thereafter, the living allowance shall be not more than $20,000 for each student per year adjusted by the percentage change in the GDP price deflator from the second preceding calendar year to the calendar year immediately preceding the current year.

C. The board shall make a full and careful investigation of the ability, character and qualification of each applicant through a written application and interview process and determine the applicant's fitness to become a loan recipient. The investigation of each applicant shall include an examination of the ability of the applicant to pay the expenses of a medical education. The board shall give preference to qualified applicants who demonstrate a strong commitment to seek a residency program in this state, who intend to become board certified in family practice, general pediatrics, obstetrics and gynecology, general internal medicine or combined medicine and pediatrics or any other specialty approved by the board and who demonstrate a commitment to practice medicine in this state and to serve in an area listed in subsection E of this section.

D. The services to be performed are service to the state by practicing general practice or any specialty approved by the board in an area listed in subsection E of this section. Service by practicing another specialty of recognized need in this state is allowed only following written approval by the board. The service location is subject to approval by the board.

E. The board may approve service in any of the following locations:

A rural and medically underserved area of this state.
A medically underserved area of this state.
A medically underserved population of this state.
Any Indian reservation that is located in this state.

F. The board may specify an area listed in subsection E of this section in the student's contract to allow the student to seek employment in that area as a physician. After the area is specified by the board, that area shall be designated in the student's subsequent contracts as an approved area and as an approved service location.

G. The board shall collect and maintain data on the retention of doctors who practice in an area listed in subsection E of this section. The board shall collect this data for at least ten years after each loan recipient completes the recipient's service commitment.

H. Private schools of medicine shall reimburse the university of Arizona for any administrative costs related to processing loans for students at private schools of medicine pursuant to subsection A of this section.

§ 15-1724 Medical student loans; interest; obligations; penalties; authority of attorney general

A. Each applicant who is approved for a loan by the board may be granted a loan for a period of up to five years.

B. The loans shall bear interest at the rate of seven percent per year.

C. Each loan shall be evidenced by a contract between the student and the board, acting on behalf of this state. The contract shall provide for the payment by the state of a stated sum or sums defraying the costs of a medical education at a public or private school of medicine in this state and shall be conditioned on the contractual agreement by the recipient of such loan to complete the service required by section 15-1723. The contract shall provide that the recipient serving as a physician in an area listed in section 15-1723, subsection E may receive compensation from the board for such service and other services designated in the contract. This compensation shall be credited against amounts due under the loan and shall not exceed the amount of the loan and any interest accrued on the loan. Such service shall be full time as determined by the board and shall be for two years or one year of service for each year of loan support, whichever is longer. A loan and the interest accrued on the loan may be fully paid with compensation received for services as required by the contract or at the option of the recipient by payment of all monies, interest and penalties for failure to fulfill the contract.

D. A loan recipient shall begin the service for which the recipient contracted as a condition of the loan within three years after completing the recipient's undergraduate medical education unless extended to four years by the board or within three months after finishing or leaving a residency program. A recipient who is ordered into military service or for other cause beyond the recipient's control deemed sufficient by the board is unable to commence the required service within three years after such graduation shall begin service within one year after completing military service or the termination of such other cause.

E. If a recipient decides not to fulfill the conditions of the contract by serving in an area listed in section 15-1723, subsection E, the contract shall provide that the recipient be required to repay the full amount borrowed, including tuition, at the seven percent interest rate plus a penalty for liquidated damages as specified in subsection F of this section, minus the amount credited for time actually served in a site approved by the board, to be calculated on a prorated monthly basis. The board for good reason may provide for extensions of the period of repayment specified in the loan recipient's contract. The board may waive the payment of principal, interest and penalty for liquidated damages if it determines that death or permanent physical disability accounts for the recipient's failure to fulfill the contract.

F. A recipient who does not fulfill the conditions of the contract shall pay the full amount borrowed and seven percent interest plus the following penalty for liquidated damages:

If the recipient withdraws from the program while in medical school, there is no penalty for liquidated damages.
If the recipient withdraws from the program during residency, an amount equal to ten percent of the loan amount.
If the recipient withdraws from the program while serving as a physician in the area listed in the recipient's contract, an amount equal to twenty-five percent of the loan amount.

G. On receipt of supporting documentation, the board for good cause shown may defer the recipient's service or payment obligation or may enter into repayment arrangements with the recipient or allow service that is equivalent to full-time service if the board determines that this action is justified after a review of the individual's circumstances. At the discretion of the board, the board may allow service by practicing another specialty of recognized need in this state that is not specified in the student's contract, but only following prior written approval by the board.

H. The attorney general may commence whatever actions are necessary to enforce the contract and achieve repayment of loans provided by the board pursuant to this article.

§ 15-1725 Medical student loan fund; exemption

A. The medical student loan fund is established. All monies appropriated to carry out sections 15-1723 and 15-1724 shall be deposited in the fund and all payments of principal, interest and penalties received by the board shall be deposited, pursuant to sections 35-146 and 35-147, in the fund. Monies in the fund are continuously appropriated for the purposes of this article.

B. Monies in the medical student loan fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

Article 8 Compact for Western Regional Cooperation in Higher Education

§ 15-1741 Definitions

In this article, unless the context otherwise requires:

"Board" means the Arizona board of regents or its successor.
"Commission" means the western interstate commission for higher education.
"Compact" means the compact for western regional cooperation in higher education.

§ 15-1742 Authority of governor to enter compact; terms of compact

The governor, for and in behalf of the state, may enter into compacts for western regional cooperation in higher education with the states of Alaska, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming, or any one or more of such states or territories. Under such compacts, the following covenants may be agreed to:

ARTICLE I

Whereas, the future of this nation and of the western states is dependent upon the quality of the education of its youth; and

Whereas, many of the western states individually do not have sufficient numbers of potential students to warrant the establishment and maintenance within their borders of adequate facilities in all of the essential fields of technical, professional and graduate training, nor do all of the states have the financial ability to furnish within their borders institutions capable of providing acceptable standards of training in all of the fields mentioned above; and

Whereas, it is believed that the western states, or groups of such states within the region, cooperatively can provide acceptable and efficient educational facilities to meet the needs of the region and of the students thereof:

Now, therefore, the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming do hereby covenant and agree as follows:

ARTICLE II

Each of the compacting states and territories pledges to each of the other compacting states and territories faithful cooperation in carrying out all the purposes of this compact.

ARTICLE III

The compacting states and territories hereby create the western interstate commission for higher education, hereinafter called the commission. Said commission shall be a body corporate of each compacting state and territory and an agency thereof. The commission shall have all the powers and duties set forth herein, including the power to sue and be sued, and such additional powers as may be conferred upon it by subsequent action of the respective legislatures of the compacting states and territories.

ARTICLE IV

The commission shall consist of three resident members from each compacting state or territory. At all times one commissioner from each compacting state or territory shall be an educator engaged in the field of higher education in the state or territory from which he is appointed.

The commissioners from each state and territory shall be appointed by the governor thereof as provided by law in such state or territory. Any commissioner may be removed or suspended from office as provided by the law of the state or territory from which he shall have been appointed.

The terms of each commissioner shall be four years; provided however that the first three commissioners shall be appointed as follows: one for two years, one for three years and one for four years. Each commissioner shall hold office until his successor shall be appointed and qualified. If any office becomes vacant for any reason, the governor shall appoint a commissioner to fill the office for the remainder of the unexpired term.

ARTICLE V

Any business transacted at any meeting of the commission must be by affirmative vote of a majority of the whole number of compacting states and territories.

One or more commissioners from a majority of the compacting states and territories shall constitute a quorum for the transaction of business.

Each compacting state and territory represented at any meeting of the commission is entitled to one vote.

ARTICLE VI

The commission shall elect from its number a chairman and a vice-chairman, and may appoint, and at its pleasure dismiss or remove, such officers, agents and employees as may be required to carry out the purpose of this compact; and shall fix and determine their duties, qualifications and compensation, having due regard for the importance of the responsibilities involved.

The commissioners shall serve without compensation but shall be reimbursed for their actual and necessary expenses from the funds of the commission.

ARTICLE VII

The commission shall adopt a seal and bylaws and shall adopt and promulgate rules and regulations for its management and control.

The commission may elect such committees as it deems necessary for the carrying out of its functions.

The commission shall establish and maintain an office within one of the compacting states for the transaction of its business and may meet at any time, but in any event must meet at least once a year. The chairman may call such additional meetings and upon the request of a majority of the commissioners of three or more compacting states or territories shall call additional meetings.

The commission shall submit a budget to the governor of each compacting state and territory at such time and for such period as may be required.

The commission shall, after negotiations with interested institutions, determine the cost of providing the facilities for graduate and professional education for use in its contractual agreements throughout the region.

On or before the fifteenth day of January of each year, the commission shall submit to the governors and legislatures of the compacting states and territories a report of its activities for the preceding calendar year.

The commission shall keep accurate books of account, showing in full its receipts and disbursements, and said books of account shall be open at any reasonable time for inspection by the governor of any compacting state or territory or his designated representative. The commission shall not be subject to the audit and accounting procedure of any of the compacting states or territories. The commission shall provide for an independent annual audit.

ARTICLE VIII

It shall be the duty of the commission to enter into such contractual agreements with any institutions in the region offering graduate or professional education and with any of the compacting states or territories as may be required in the judgment of the commission to provide adequate services and facilities of graduate and professional education for the citizens of the respective compacting states or territories. The commission shall first endeavor to provide adequate services and facilities in the fields of dentistry, medicine, public health and veterinary medicine and may undertake similar activities in other professional and graduate fields.

For this purpose the commission may enter into contractual agreements:

(a) With the governing authority of any educational institution in the region or with any compacting state or territory to provide such graduate or professional educational services upon terms and conditions to be agreed upon between contracting parties, and

(b) With the governing authority of any educational institution in the region or with any compacting state or territory to assist in the placement of graduate or professional students in educational institutions in the region providing the desired services and facilities, upon such terms and conditions as the commission may prescribe.

It shall be the duty of the commission to undertake studies of needs for professional and graduate educational facilities in the region, the resources for meeting such needs and the long-range effects of the compact on higher education; and from time to time to prepare comprehensive reports on such research for presentation to the western governors' conference and to the legislatures of the compacting states and territories. In conducting such studies, the commission may confer with any national or regional planning body which may be established. The commission shall draft and recommend to the governors of the various compacting states and territories uniform legislation dealing with problems of higher education in the region.

For the purposes of this compact the word "region" shall be construed to mean the geographical limits of the several compacting states and territories.

ARTICLE IX

The operating costs of the commission shall be apportioned equally among the compacting states and territories.

ARTICLE X

This compact shall become operative and binding immediately as to those states and territories adopting it whenever five or more of the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming have duly adopted it prior to July 1, 1953. This compact shall become effective as to any additional states or territories adopting thereafter at the time of such adoption.

ARTICLE XI

This compact may be terminated at any time by consent of a majority of the compacting states or territories. Consent shall be manifested by passage and signature in the usual manner of legislation expressing such consent by the legislature and governor of such terminating state. Any state or territory may at any time withdraw from this compact by means of appropriate legislation to that end. Such withdrawal shall not become effective until two years after written notice thereof by the governor of the withdrawing state or territory, accompanied by a certified copy of the requisite legislative action, is received by the commission. Such withdrawal shall not relieve the withdrawing state or territory from its obligations hereunder accruing prior to the effective date of withdrawal. The withdrawing state or territory may rescind its action of withdrawal at any time within the two year period. Thereafter, the withdrawing state or territory may be reinstated by application to and the approval by a majority vote of the commission.

ARTICLE XII

If any compacting state or territory shall at any time default in the performance of any of its obligations assumed or imposed in accordance with the provisions of this compact, all rights, privileges and benefits conferred by this compact or agreements hereunder shall be suspended from the effective date of such default as fixed by the commission.

Unless such default shall be remedied within a period of two years following the effective date of such default, this compact may be terminated with respect to such defaulting state or territory by affirmative vote of three-fourths of the other member states or territories.

Any such defaulting state may be reinstated by performing all acts and obligations upon which it has heretofore defaulted and by application to and the approval by a majority vote of the commission.

§ 15-1743 Authorizing agreements for education of Arizona students outside compact area; limitations

A. The western interstate commission for higher education is authorized to act on behalf of this state in making arrangements for the placement of students in institutions and programs of higher learning outside the states which are parties to the compact for establishing the commission. For that purpose, the commission may negotiate and enter into arrangements and contracts with the Arizona board of regents, with public and private educational institutions and agencies and with other states. These arrangements and contracts may provide for the obtaining of one or more places for students on either a special or continuing basis; the payment of partial or full tuition and other charges not to exceed the cost of agreements within the compact area; and the furnishing of reciprocal, compensating or other advantages and benefits in support of the educational program involved.

B. The authority conferred by subsection A shall be exercised only pursuant to written agreement between the commission and the Arizona board of regents. Any such agreements shall include provisions for the payment of tuition and any other costs, and no such agreement shall be made which commits this state or any agency or officer of it to any obligation for which funds have not been appropriated or otherwise made available in accordance with law.

C. Nothing in this section alters any of the obligations or restricts or impairs any rights which this state may have under the compact establishing the commission.

§ 15-1744 Processing and certification of students

A. The board shall, within the limitations and on the terms fixed by the commission and by this article, determine the number of students desiring to take advantage of the educational facilities afforded by the compact and, from those indicating such a desire, select a group in each allowable professional field. In making the selections the board shall only include students who:

Have at least an average scholastic attainment record.
Are citizens of the United States.
Have been actual bona fide residents of Arizona for at least the last five years.
Have completed such preliminary education as will qualify them for admission to the professional or graduate school provided by the commission.

B. The names of the students selected shall be certified by the board to the commission through the Arizona members of the commission, along with such data as the commission may require.

§ 15-1745 Contract with student certified by board

A. Before certifying a student to the commission the board, on behalf of this state, shall enter into a written contract with the student. The contract shall set forth the methods and terms of repayment by the student to this state and shall be on terms and conditions and in a form provided by the board. The contract shall provide:

That the student shall within one year after completing his professional education and internship begin the practice of his profession within Arizona. If the student engages in postgraduate studies and does so without a lapse of more than one year following the completion of his professional course, he shall begin practice within this state within one year after completing the graduate studies. If the student is involuntarily inducted into military service, or for other cause beyond his control deemed sufficient by the board is unable to begin the practice of his profession within one year after completing his professional education, internship and any graduate studies, he shall begin practice within this state within one year after completing his required military service or the termination of such other cause.
That if the student engages in the practice of his profession within this state or while completing military service resulting from involuntary induction, his indebtedness to this state may be discharged in one of the following ways:

(a) By payment to this state of all sums expended by this state for and in behalf of the student with interest at the rate prescribed in subsection B of this section.

(b) For each year of practice or internship within this state or in military service there shall be discharged his obligation for one academic year of study for which a portion of the cost was paid by this state, except that each six months of practice shall discharge his obligation for one academic year of study if such practice is confined to a locality within the state where there is an exceptional need for his professional services as determined and certified by the Arizona medical board or licensing board of his profession.

That if the student fails to complete the required course of professional study, or if the course of study is interrupted by one school year or more for a cause or causes not resulting from involuntary induction into military service or other cause beyond his control deemed sufficient by the board, or if the student fails to practice his profession within the state for such continuous time as completely discharges his obligation, except for delays resulting from an excusable cause as prescribed in this section, the entire sum paid for or on behalf of the student by this state and not repaid or discharged as herein provided shall be due and payable forthwith with interest at the rate prescribed in subsection B of this section. The board may extend the time of payment over a period not exceeding fifteen years and shall not require payment of interest during the existence of any excusable cause as prescribed in this section.
That if the student does not begin practice in this state within the time prescribed in this section but shall have repaid an agreed part of the sum expended by this state in his behalf, the board may permit him to discharge the balance of his obligation by subsequent practice within this state.
That in the event of the death of the student during the period of his education, internship or practice, his obligation to this state under this article shall cease except as to any portion that is then due.

B. The interest rate for a student's contract is the rate in effect for the fiscal year during which the student begins the approved course of professional study. The board shall establish the interest rate by November 1 of the current year for the following fiscal year. The board shall establish a rate equal to the average interest rate of auctioned ninety-one day United States treasury bills over the twenty-four month period ending September 30 of the current year, except that the board may round the rate to the nearest one-half per cent. Accrual of interest charges provided by the contract begins on the first day of the first complete month following graduation of the student or, for students who fail to complete their required course of study, the first day of the first complete month following the date when the student was no longer enrolled.

§ 15-1746 Collections revolving fund; expenditures; employment of legal counsel; exemption from lapsing

A. A collections revolving fund is established which consists of:

Monies repaid to the board as provided in section 15-1745.
Monies which the legislature appropriates.

B. The board shall use monies in the collections revolving fund for payment of expenses incurred in enforcing contracts entered into with students as provided in section 15-1745, including expenditures for filing fees, court costs, travel, depositions, transcripts, reproduction costs, expert witness fees, investigations and similar costs and expenses. Except for payment of attorney fees due on the initial recovery of monies as provided in subsection C of this section, the board may not use monies in the fund to compensate or employ attorneys.

C. The board may, in legal actions taken outside of this state to enforce the contracts entered into with students as provided in section 15-1745, employ legal counsel on a contingent fee basis plus court costs. The employment and payment of legal counsel under this subsection is not subject to the bidding and contracting requirements under title 41, chapter 23.

D. At no time shall the amount of monies in the collections revolving fund retained to pay expenses incurred in enforcing contracts entered into with students exceed ten thousand dollars.

E. The board shall not retain more than ten thousand dollars in the collections revolving fund. Monies collected in excess of ten thousand dollars shall be deposited in the state general fund.

F. Monies in the collections revolving fund, up to an amount of ten thousand dollars, are exempt from section 35-190, relating to lapsing of appropriations.

§ 15-1747 Reciprocity agreement for distance education; definition

A. The Arizona board of regents, community college districts and the state board for private postsecondary education, through intergovernmental agreement, may enter into an interstate reciprocity agreement for the purpose of managing postsecondary distance education.

B. The intergovernmental agreement pursuant to subsection A of this section, at a minimum, must identify the process for the application to participate in the interstate reciprocity agreement and be administered jointly by representatives from the Arizona board of regents, representatives from the state board for private postsecondary education and representatives from a community college district in this state. The terms of the intergovernmental agreement shall be agreed to unanimously by the Arizona board of regents, the state board for private postsecondary education and a community college district in this state.

C. The responsibilities designated through intergovernmental agreement pursuant to subsection A of this section must be limited to the administration of the distance education reciprocity agreement for participating postsecondary institutions that have a principal place of business in this state.

D. For the purposes of this section, "postsecondary institution" means any accredited, degree-granting public or private university or college located in this state, any accredited degree-granting community college located in this state and any accredited degree-granting college or university located on and operated by a federally recognized Indian tribe.

Article 9 Medical Programs

§ 15-1751 Positions at the university of Arizona

(L94, ch. 257, sec. 1. Eff. until 1/1/27)

The university of Arizona school of medicine shall give priority consideration to applicants who demonstrate a willingness to practice in medically underserved areas of this state.

§ 15-1751 (Version 2) Medical schools; applicants; admissions information; posting; priority consideration; annual report

(L25, ch. 117, sec. 1. Eff. 1/1/27)

A. If a university under the jurisdiction of the Arizona board of regents has a medical school, the medical school, consistent with any standards set by the national accrediting organization for the medical school, shall do all of the following:

Post admissions information on the medical school's website and include the admissions information in any promotional materials that are distributed to prospective students. The admissions information required pursuant to this paragraph shall include all of the following:

(a) Minimum qualifications and requirements for admission to the medical school.

(b) The amount of all application fees.

(d) If applicable, the dates on which the medical school will interview applicants for admission to the medical school.

Offer an interview to each applicant from this state who does all of the following:

(a) Submits a timely application pursuant to the medical school's deadlines and procedures for student admissions.

(b) Meets or exceeds the qualifications and requirements for admission to the medical school.

If applicable, give priority consideration in the first round of admissions interviews to any applicant who is from this state and who meets the admissions qualifications and requirements that are prescribed by the medical school.
On or before October 1, report to the Arizona board of regents all of the following for the prior school year:

(a) The number of applicants from this state who:

(i) Submitted a timely application for admission to the medical school.

(ii) Were interviewed by the medical school pursuant to paragraph 2 of this subsection.

(iii) Were admitted to the medical school.

(b) A description of procedures that the medical school implemented and actions that the medical school undertook to comply with the requirements prescribed by this subsection.

B. The university of Arizona school of medicine shall give priority consideration to applicants who demonstrate a willingness to practice in medically underserved areas of this state.

C. For the purposes of this section, an applicant is deemed to be from this state if the applicant either:

Is classified as an in-state student pursuant to section 15-1802.
Graduated from a high school in this state.

§ 15-1753 Primary care disciplines; definition

A. The university of Arizona school of medicine shall prepare a plan with the goal of encouraging students to enter the primary care disciplines. At least sixty per cent of the residency positions available at the university of Arizona school of medicine shall be reserved for medical school graduates entering programs defined as primary care disciplines of which at least twelve per cent of the residency positions available at the university of Arizona school of medicine shall be reserved for medical school graduates entering the family medicine program.

B. Beginning October 1, 1995 and each year thereafter, the university of Arizona shall submit a report to the president of the senate and the speaker of the house of representatives. The report shall include the number of residents who graduated from the university of Arizona in a primary care discipline and who are practicing in primary care and the number who have elected to enter into specialty practices.

C. The information provided in subsection B of this section shall be made available to the chairmen of the appropriations committees in the house of representatives and the senate for their use in future funding decisions for the university of Arizona medical school.

D. For purposes of this section, "primary care disciplines" includes family medicine, general internal medicine, general pediatrics, obstetrics and gynecology.

§ 15-1754 Rural health professions program; definition

A. The three universities under the jurisdiction of the Arizona board of regents shall select ten nurse practitioner students, fifteen medical students and four pharmacy students each year to participate in a rural health professions program. The three universities shall develop application procedures for students to apply for voluntary participation in the program. The three universities shall attempt to ensure that each individual participating student be able to fulfill the program requirements in a single rural practice setting.

B. The university of Arizona shall choose the fifteen medical students, four pharmacy students and four nurse practitioner students, Arizona state university shall choose four nurse practitioner students, and northern Arizona university shall choose two nurse practitioner students who will participate at the respective universities.

C. Pharmacy students and medical students selected to participate in the program shall be placed in a rural practice or rural location in this state. Each placement shall be for a duration of at least one month and shall occur during the summer months between academic years, as part of the required curriculum during a clinical clerkship and in the final year of training.

D. Nurse practitioner students selected to participate in the program shall be placed in a rural practice or rural location in this state during the summer months between the first and second year of their academic instruction. A participating nurse practitioner student's internship shall also be conducted in a clinical setting located in a rural area of this state.

E. Students who participate in the program shall be teamed with two mentors throughout their period of academic instruction. The mentors shall provide guidance and counseling to students who participate in the program concerning the fulfillment of rural health professions program requirements, the selection of elective curricula and the selection of residency programs or internships. One of the faculty mentors shall be a physician, pharmacist or nurse who works closely with the participating student during the student's rural placement, and one of the mentors shall be a faculty member of the university where the program participant is enrolled. At least one of the mentors shall be available at all times to support the student's interest in rural health care.

F. For purposes of this section, "rural" means either:

A county with a population of less than four hundred thousand persons according to the most recent United States decennial census.
A census county division with less than fifty thousand persons in a county with a population of four hundred thousand or more persons according to the most recent United States decennial census.

§ 15-1755 Clinical rotations

A public or private medical school in this state shall not prohibit a hospital from entering into an agreement to provide student clinical rotations to qualified osteopathic or allopathic medical students.

§ 15-1756 Medical programs; students; required opioid-related clinical education

A student who is enrolled in a public or private medical program in this state and whose intended degree may make the student eligible for a United States drug enforcement administration registration shall take at least three hours of opioid-related clinical education.

Article 10 Revised Uniform Athlete Agents Act

§ 15-1761 Short title

This article may be cited as the revised uniform athlete agents act.

§ 15-1762 Definitions

In this article, unless the context otherwise requires:

"Agency contract" means an agreement in which a student athlete authorizes a person to negotiate or solicit a professional sports services contract or an endorsement contract on behalf of the student athlete.
"Athlete agent" means an individual who enters into an agency contract with a student athlete or, directly or indirectly, recruits or solicits a student athlete to enter into an agency contract. Athlete agent includes an individual who represents to the public that the individual is an athlete agent. Athlete agent does not include a spouse, parent, sibling, grandparent or guardian of the student athlete or an individual acting solely on behalf of a professional sports team or a professional sports organization.
"Athletic director" means an individual responsible for administering the overall athletic program of an educational institution or, if an educational institution has separately administered athletic programs for male students and female students, the athletic program for males or the athletic program for females.
"Endorsement contract" means an agreement under which a student athlete is employed or receives consideration to use on behalf of the other party any value that the student athlete may generate because of publicity, reputation, following or fame that was obtained because of athletic ability or performance.
"Intercollegiate sport" means a sport that is played at the collegiate level and for which eligibility requirements for participation by a student athlete are established by a national association for the promotion or regulation of collegiate athletics.
"Person" means an individual, a corporation, a business trust, an estate, a trust, a partnership, a limited liability company, an association, a joint venture, a government, a governmental subdivision, a government agency, a government instrumentality, a public corporation or any other legal or commercial entity.
"Professional sports services contract" means an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization or as a professional athlete.
"Record" means information that is inscribed on a tangible medium or that is stored in an electronic format or any other medium and that is retrievable in perceivable form.
"Student athlete" means an individual who engages in, is eligible to engage in or may be eligible in the future to engage in any intercollegiate sport. If an individual is permanently ineligible to participate in a particular intercollegiate sport, the individual is not a student athlete for purposes of that sport.

§ 15-1770 Required form of contract

A. An agency contract shall be a record that is signed or otherwise authenticated by the parties.

B. An agency contract shall state or contain the following:

The amount and method of calculating the consideration to be paid by the student athlete for services to be provided by the athlete agent under the contract and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services.
The name of any person who will be compensated because the student athlete signed the agency contract.
A description of any expenses that the student athlete agrees to reimburse the athlete agent.
A description of the services to be provided to the student athlete.
The duration of the contract.
The date of the execution of the contract.

C. An agency contract shall contain, in close proximity to the signature of the student athlete, a conspicuous notice in bold-faced type in capital letters that states the following:

Warning to Student Athlete

If you sign this contract:

You may lose your eligibility to compete as a student athlete in your sport.
If you have an athletic director, within 72 hours after entering into this contract or before the next athletic event in which you may participate, whichever comes first, both you and your athlete agent must notify your athletic director.
You may cancel this contract within 14 days after signing it. Cancellation of this contract may not reinstate your eligibility.

D. An agency contract that does not conform to this section is voidable by the student athlete. If a student athlete voids an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration that was received from the athlete agent and that was given to induce the student athlete to enter into the contract.

E. The athlete agent shall give a copy of the signed or otherwise authenticated agency contract to the student athlete at the time of execution.

§ 15-1771 Notice to educational institution

A. Within seventy-two hours after entering into an agency contract or before the next scheduled athletic event in which the student athlete may participate, whichever occurs first, the athlete agent shall give notice in a record of the existence of the contract to the athletic director of the educational institution at which the student athlete is enrolled or the educational institution at which the athlete agent has reasonable grounds to believe the student athlete intends to enroll.

B. Within seventy-two hours after entering into an agency contract or before the next athletic event in which the student athlete may participate, whichever occurs first, the student athlete shall inform the athletic director of the educational institution at which the student athlete is enrolled that he or she has entered into an agency contract.

§ 15-1772 Student athlete's right to cancel contract

A. A student athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within fourteen days after the contract is signed.

B. A student athlete may not waive the right to cancel an agency contract.

C. If a student athlete cancels an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student athlete to enter into the contract.

§ 15-1773 Required records

A. An athlete agent shall retain all of the following records for a period of five years:

The name and address of each individual represented by the athlete agent.
Any agency contract entered into by the athlete agent.
Documentation of any direct costs incurred by the athlete agent in the recruitment or solicitation of a student athlete to enter into an agency contract.

B. The records required to be retained pursuant to subsection A shall be open to inspection by the secretary of state during normal business hours.

§ 15-1774 Prohibited conduct; violation; classification

A. It is unlawful for an athlete agent, with the intent to induce a student athlete to enter into an agency contract, to engage in any of the following conduct:

Give any materially false or misleading information or make a materially false promise or representation.
Furnish anything of value to a student athlete before the student athlete enters into the agency contract.
Furnish anything of value to any individual other than the student athlete or another athlete agent.

B. It is unlawful for an athlete agent to intentionally commit any of the following conduct:

Refuse or fail to retain or permit inspection of the records required to be retained by section 15-1773.
Predate or postdate an agency contract.
Fail to notify a student athlete before the student athlete signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student athlete ineligible to participate as a student athlete in that sport.

C. A person who violates this section is guilty of a class 1 misdemeanor.

§ 15-1775 Civil remedies

A. An educational institution may bring a cause of action against an athlete agent or a former student athlete for damages caused by a violation of this article. The court may award to the prevailing party costs and reasonable attorney fees in any action brought pursuant to this section.

B. An educational institution may recover damages pursuant to subsection a including losses and expenses incurred as a result of the conduct of an athlete agent or a former student athlete if the educational institution was injured by a violation of this article or was penalized, disqualified or suspended from participation in athletics by a national association for the promotion and regulation of athletics, by an athletic conference or by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization.

C. A right of action under this section does not accrue until the educational institution discovers or by the exercise of reasonable diligence should have discovered the violation by the athlete agent or the former student athlete.

D. Any liability of the athlete agent or the former student athlete under this section is several and not joint.

E. This article does not restrict other legal or equitable rights, remedies or defenses of any person.

Chapter 14 Provisions Relating to Community Colleges, Universities and Private Postsecondary Institutions

Article 1 Classification of Students for Tuition Purposes

§ 15-1801 Definitions

In this article, unless the context otherwise requires:

"Armed forces of the United States" has the same meaning prescribed in section 41-601.
"Continuous attendance" means enrollment at an educational institution in this state as a full-time student, as such term is defined by the governing body of the educational institution, for a normal academic year since the beginning of the period for which continuous attendance is claimed. Such person need not attend summer sessions or any other intersession beyond the normal academic year in order to maintain continuous attendance.
"Domicile" means a person's true, fixed and permanent home and place of habitation. It is the place where he intends to remain and to which he expects to return when he leaves without intending to establish a new domicile elsewhere.
"Emancipated person" means a person who is neither under a legal duty of service to his parent nor entitled to the support of such parent under the laws of this state.
"Parent" means a person's father or mother, or if one parent has custody, that parent, or if there is no surviving parent or the whereabouts of the parents are unknown, then a guardian of an unemancipated person if there are not circumstances indicating that such guardianship was created primarily for the purpose of conferring the status of an in-state student on such unemancipated person.

§ 15-1802 In-state student status

A. Except as otherwise provided in this article, a person having a domicile elsewhere than in this state is not eligible for classification as an in-state student for tuition purposes.

B. A person is not entitled to classification as an in-state student until the person is domiciled in this state for one year, except that a person whose domicile is in this state is entitled to classification as an in-state student if the person meets one of the following requirements:

The domicile of the person's parent is in this state and the parent is entitled to claim the person as an exemption for state and federal tax purposes.
The person is an employee of an employer that transferred the person to this state for employment purposes or the person is the spouse of such an employee.
The person is an employee of a school district in this state and is under contract to teach on a full-time basis or is employed as a full-time noncertified classroom aide at a school within that school district. For the purposes of this paragraph, the person is eligible for classification as an in-state student only for courses necessary to complete the requirements for certification by the state board of education to teach in a school district in this state. A member of the person's family is not eligible for classification as an in-state student if the person is eligible for classification as an in-state student pursuant to this paragraph, unless the family member is otherwise eligible for classification as an in-state student pursuant to this section.
The person's spouse has established domicile in this state for at least one year, has demonstrated intent and financial independence and is entitled to claim the student as an exemption for state and federal tax purposes or the person's spouse was temporarily out of state for educational purposes but maintained a domicile in this state. If the person is a noncitizen, the person must be in an eligible visa status pursuant to federal law to classify as an in-state student for tuition purposes.

C. The domicile of an unemancipated person is that of the person's parent.

D. Any unemancipated person who remains in this state when the person's parent, who had been domiciled in this state, removes from this state is entitled to classification as an in-state student until attainment of the degree for which the person is currently enrolled, as long as the person maintains continuous attendance.

E. A person who is a member of the armed forces of the United States and who is stationed in this state pursuant to military orders or who is the spouse or a dependent child as defined in section 43-1001 of a person who is a member of the armed forces of the United States and who is stationed in this state pursuant to military orders is entitled to classification as an in-state student. A spouse or a dependent child does not lose in-state student classification under this subsection if the spouse or dependent child qualifies for in-state tuition classification at the time the spouse or dependent child is accepted for admission to a community college under the jurisdiction of a community college district governing board or a university under the jurisdiction of the Arizona board of regents. The student, while in continuous attendance toward the degree for which currently enrolled, does not lose in-state student classification.

F. A person who is a member of the armed forces of the United States or the spouse or a dependent as defined in section 43-1001 of a member of the armed forces of the United States is entitled to classification as an in-state student if the member of the armed forces has claimed this state as the person's state of legal residence for at least twelve consecutive months before the member of the armed forces, the spouse or the dependent enrolls in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district governing board. For the purposes of this subsection, the requirement that a person be domiciled in this state for one year before enrollment to qualify for in-state student classification does not apply.

G. A person holding an honorable discharge from the uniformed services of the United States from either active duty or reserve or national guard status, or who has retired from active duty or reserve or national guard status, shall be granted immediate classification as an in-state student and, while continuously enrolled, does not lose in-state student classification if the person has demonstrated objective evidence of intent to be a resident of Arizona that, for the purposes of this section, includes at least one of the following:

Registration to vote in this state.
An Arizona driver license.
Arizona motor vehicle registration.
Employment history in Arizona.
Transfer of major banking services to Arizona.
Change of permanent address on all pertinent records.
Other materials of whatever kind or source relevant to domicile or residency status.

H. A person who meets any of the requirements prescribed in subsection L of this section shall be granted immediate classification as an in-state student and does not lose in-state student classification if the person has demonstrated objective evidence of intent to be a resident of this state that, for the purposes of this section, includes at least one of the following:

Registration to vote in this state.
An Arizona driver license.
Arizona motor vehicle registration.
Employment history in Arizona.
Transfer of major banking services to Arizona.
Change of permanent address on all pertinent records.
Other materials of whatever kind or source relevant to domicile or residency status.

I. A person who is a member of an Indian tribe recognized by the United States department of the interior whose reservation land lies in this state and extends into another state and who is a resident of the reservation is entitled to classification as an in-state student.

J. A person who has participated in the AmeriCorps program or the volunteers in service to America program for at least one year in this state is entitled to classification as an in-state student.

K. A person who is a contracted cadet participating in a reserve officer training corps program in this state is entitled to classification as an in-state student.

L. A person who meets any of the following requirements is entitled to immediate classification as an in-state student if that person has demonstrated objective evidence of intent to be a resident of this state as prescribed in subsection H of this section:

The person is a veteran as defined in title 38 of the United States Code who, while using educational assistance under 38 United States Code chapter 30, 31, 33 or 35, enrolls in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district governing board after the veteran's discharge from active duty service of ninety or more days.
The person does not meet the requirements prescribed in paragraph 3 or 4 of this subsection and, while using educational assistance under 38 United States Code chapter 30, 31, 33 or 35, enrolls in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district governing board after the veteran's discharge from active duty service of ninety or more days.
The person, while using benefits under the Marine Gunnery Sergeant John David Fry Scholarship prescribed in 38 United States Code section 3311(b)(9), enrolls in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district governing board.
The person, while using transferred Post/911 G.I. Bill benefits pursuant to 38 United States Code section 3319 during a time in which the transferor is a member of the uniformed services serving on active duty, enrolls in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district governing board.
The person is otherwise described in 38 United States Code section 3679(c).

§ 15-1802.01 County residency status; community college districts

A. Each community college district shall adopt policies regarding domicile requirements that include, at a minimum, the following:

Each student shall have the question of domicile determined before the time of registration and payment of fees. It is the responsibility of the student to register under the correct domicile determination.
Enforcement of domicile requirements shall be the responsibility of the chief executive officer of each community college district.
The chief executive officer of each community college district shall designate a representative at each college or campus who is responsible for documents and who is qualified to administer oaths in connection with statements and testimony relative to student domicile status for tuition purposes.
In addition to the requirements prescribed in section 15-1802, subsections G and H, any of the following may be used in determining a student's domicile:

(a) An income tax return.

(b) The place of graduation from high school.

(d) Dependency as indicated on a federal income tax return.

(e) Ownership of real property.

(f) A notarized statement of a landlord or employer.

(g) Bank accounts.

B. Each community college district shall adopt policies regarding classification procedures for a student for nonresident or resident tuition purposes that include, at a minimum, the following:

In determining a student's classification, the college may consider all evidence, written or oral, presented by the student and any other information received from any source that is relevant to determining classification. The college may request written sworn statements or sworn testimony of the student.
The decision as to classification shall be made by the representative designated pursuant to subsection A, paragraph 3 of this section. In making the decision the representative may consult with other college officials. Decisions by the representative shall be made as soon as possible after all relevant information is acquired.
If the representative classifies the student as a nonresident for tuition purposes, the decision shall be communicated to the student by mail to the most recent address furnished to the college. If the student is classified as a nonresident for tuition purposes, the student must make satisfactory provision for payment of nonresident tuition and other charges.

C. Each community college district shall adopt a review and appeals process for students contesting a domicile decision by the college.

§ 15-1803 Alien in-state student status; nonresident tuition exemption

(Caution: 1998 Prop. 105 applies)

A. An alien is entitled to classification as an in-state refugee student if the person has been granted refugee status in accordance with all applicable laws of the United States and has met all other requirements for domicile.

B. Notwithstanding any other law, a student, other than a nonimmigrant alien as described in 8 United States Code section 1101(a)(15), who meets both of the following requirements is eligible for in-state tuition at any university under the jurisdiction of the Arizona board of regents or at any community college as defined in section 15-1401:

Attended any public or private high school option or homeschool equivalent pursuant to section 15-802 while physically present in this state for at least two years.
Graduated from any public or private high school option or homeschool equivalent pursuant to section 15-802 while physically present in this state or obtained a high school equivalency diploma in this state.

C. Persons without lawful immigration status are eligible for in-state tuition pursuant to subsection B of this section.

§ 15-1804 Presumptions relating to student status; definition

A. Unless the contrary appears to the satisfaction of the registering authority of the community college or university at which a student is registering, it shall be presumed that:

No emancipated person has established a domicile in this state while attending any educational institution in this state as a full-time student, as such status is defined by subsection B for community college students or as defined by the Arizona board of regents for university students, in the absence of a clear demonstration to the contrary.
Once established, a domicile is not lost by mere absence unaccompanied by intention to establish a new domicile.
A person who has been domiciled in this state immediately prior to becoming a member of the armed forces of the United States shall not lose in-state status by reason of such person's presence in any other state or country while a member of the armed forces of the United States.

B. For the purposes of this section, "full-time student" means a community college student who registers for at least twelve semester hours per semester at a community college in this state.

§ 15-1805 Student status guidelines

A. The Arizona board of regents shall adopt guidelines applicable to all institutions under their jurisdiction that will ensure uniform criteria to aid the institutions in determining the tuition status of any student and that will establish uniform procedures for review of that status.

B. Community college districts shall adopt policies applicable to all institutions under their jurisdiction that will ensure uniform criteria to aid the institutions in determining the tuition status of any student and that will establish uniform procedures for review of that status.

§ 15-1805.01 Admissions; enrollments; community colleges

A. Admissions to the community colleges in this state may be granted to any person who meets at least one of the following criteria:

Is a graduate of a high school that is accredited by a regional accrediting association as defined by the United States office of education or approved by a state board of education or other appropriate state educational agency.
Has a high school certificate of equivalency.
Is at least eighteen years of age and demonstrates evidence of potential success in the community college.
Is a transfer student in good standing from another college or university.

B. Each community college district shall adopt policies regarding the admission of students who are under eighteen years of age that include, at a minimum, student completion of course prerequisites and the following requirements:

A community college in this state shall grant admission to any student who is under eighteen years of age and who achieves at least one of the following:

(a) A composite score of 720 or more on the PSAT.

(b) A composite score of 720 or more on the SAT.

(d) A passing score on the relevant portions of the statewide assessment.

(e) The completion of a college placement method designated by the community college district that indicates the student is at the appropriate college level for the course.

(f) Is a graduate of a private or public high school or has a high school certificate of equivalency.

A community college may limit the number of semester hours in which the student may enroll to not more than six credit hours.

C. Homeschooled students are exempt from subsection B of this section.

D. Students who enroll in vocational courses may be admitted on an individual basis with the approval of college officials if the student meets the established requirements of the courses for which the student enrolls and the college officials determine that the student's admission is in the best interest of the student.

§ 15-1806 Testimony concerning student status; designation of persons to administer oaths

The Arizona board of regents and each community college district shall designate a person employed at each institution under their respective jurisdictions to administer oaths or affirmations in connection with the taking of testimony relative to student status for tuition purposes.

§ 15-1807 Concurrent enrollment; nonresident tuition

A. It is unlawful for any nonresident student to register concurrently in two or more public institutions of higher education in this state including any university or community college for a combined student credit hour enrollment of more than six semester hours without payment of nonresident tuition at one of such institutions.

B. Any nonresident student desiring to enroll concurrently in two or more public institutions of higher education in this state including any university or community college for a combined total of more than six semester hours who is not subject to nonresident tuition at any of such institutions shall pay the nonresident tuition at the institution of his choice in an amount equivalent to nonresident tuition at such institution for the combined total of semester hours for which the nonresident student is concurrently enrolled.

§ 15-1808 Tuition waiver scholarships; eligibility; definitions

A. The Arizona board of regents, after verification by the Arizona peace officers memorial board, by the Arizona fallen firefighter memorial committee, by the adjutant general of the national guard or by the Arizona department of veterans' services that a person is a child or the spouse of a peace officer, correctional officer, firefighter, emergency paramedic, national guard member or member of the United States armed forces who was a resident of the state of Arizona or stationed in Arizona and who was killed in the line of duty or who died from injuries suffered in the line of duty while traveling to or from duty, shall provide the person who qualifies under subsection D of this section and who otherwise meets the qualifications for admission with a tuition waiver scholarship at any university under the jurisdiction of the Arizona board of regents. A district as defined in section 15-1401, after verification by the Arizona peace officers memorial board, by the Arizona fallen firefighter memorial committee, by the adjutant general of the national guard or by the Arizona department of veterans' services that a person is the child or the spouse of a peace officer, correctional officer, firefighter, emergency paramedic, national guard member or member of the United States armed forces who was a resident of Arizona or stationed in Arizona and who was killed in the line of duty or who died from injuries suffered in the line of duty while traveling to or from duty, shall provide the person who qualifies under subsection D of this section and who otherwise meets the qualifications for admission with a tuition waiver scholarship at any community college under the jurisdiction of the district.

B. The Arizona board of regents, after verification by the Arizona peace officers memorial board, the Arizona fallen firefighter memorial committee or the department of veterans' services that a person is a child or the spouse of a person who meets the requirements prescribed in subsection C of this section, shall provide the person who qualifies under subsection D of this section and who otherwise meets the qualifications for admission with a tuition waiver scholarship at any university under the jurisdiction of the Arizona board of regents. A district as defined in section 15-1401, after verification by the Arizona peace officers memorial board, the Arizona fallen firefighter memorial committee or the department of veterans' services that a person is a child or the spouse of a person who meets the requirements prescribed in subsection C of this section, shall provide the person who qualifies under subsection D of this section and who otherwise meets the qualifications for admission with a tuition waiver scholarship at any community college under the jurisdiction of the district. Notwithstanding section 15-1809, if sufficient monies are available, the Arizona board of regents shall distribute surplus monies that were appropriated to the spouses of military veterans tuition scholarship fund established by section 15-1809 to each university under the jurisdiction of the Arizona board of regents for the costs associated with the tuition waiver scholarships provided pursuant to this subsection.

C. To be eligible for a tuition waiver scholarship under subsection B of this section, the applicant must be the child or spouse of a person who meets all of the following criteria:

Was a veteran of the United States armed forces or was serving or previously served as a peace officer, a firefighter or a member of the United States armed forces at the time of the person's death. It is not a requirement for the purposes of this paragraph that the person was employed as a peace officer or firefighter or was serving on active duty as a member of the United States armed forces at the time of the person's death.
Was a resident of this state at the time of the person's death.
Suffered a post-traumatic stress injury in the line of duty. Documentation that the peace officer or firefighter at any point received a disability pension under section 38-844 for a post-traumatic stress injury or benefits under title 38, chapter 5, article 4.2 for a post-traumatic stress injury is prima facie evidence that the peace officer or firefighter met the requirements of this paragraph. A discharge or other document from the United States armed forces showing that the member or veteran of the United States armed forces was discharged because of or suffered from a post-traumatic stress injury, or documentation from the United States department of veterans affairs showing that the member or veteran suffered from a post-traumatic stress injury, is prima facie evidence that the member or veteran met the requirements of this paragraph.
Died by suicide.

D. The tuition waiver scholarships shall be limited to children who are thirty years of age or younger or a spouse who has not remarried and shall be limited for a spouse or for any one child to not more than sixty-four credit hours at Arizona community colleges and a total number of credits including any transfer credits from an Arizona community college equal to the number of credits required for a baccalaureate degree at Arizona universities for that student's initially declared course of study.

E. A member of the Arizona national guard who received a purple heart citation on or after September 11, 2001 or a former member of the Arizona national guard who was medically discharged from the Arizona national guard due to an injury or disability suffered during status under title 10, United States Code, in weekend training status, in annual training status or in response to a state of emergency declared by the governor is eligible for a tuition waiver scholarship provided for in this section.

F. The Arizona board of regents, after verification by the Arizona department of veterans' services that a person is a member or former member of the United States armed forces who received a purple heart citation, who was a resident of the state of Arizona or was stationed in Arizona at the time of the injury that resulted in the purple heart citation and whose disability rating determined by the United States department of veterans affairs is fifty percent or more, shall provide the person who otherwise meets the qualifications for admission with a tuition waiver scholarship at any university under the jurisdiction of the board. A district as defined in section 15-1401, after verification by the Arizona department of veterans' services that a person is a member or former member of the United States armed forces who received a purple heart citation, who was a resident of the state of Arizona or was stationed in Arizona at the time of the injury that resulted in the purple heart citation and whose disability rating determined by the United States department of veterans affairs is fifty percent or more, shall provide the person who otherwise meets the qualifications for admission with a tuition waiver scholarship at any community college under the jurisdiction of the district. A person who is convicted of a class 1, 2, 3, 4 or 5 felony is ineligible for a tuition waiver scholarship as provided in this subsection.

G. For the purposes of this section:

"Correctional officer" means a person, other than an elected official, who is employed by this state or a county, city or town and who is responsible for the supervision, protection, care, custody or control of inmates in a state, county or municipal correctional institution, including counselors but excluding secretarial, clerical and professionally trained personnel.
"Emergency paramedic" means a person who has been trained in an emergency paramedic training program certified by the director of the department of health services or in an equivalent training program and who is certified by the director of the department of health services to render services pursuant to section 36-2205.
"Firefighter" means a professional firefighter who is a member of a state, federal, tribal, city, county, district or private fire department.
"Peace officer" means a county sheriff, a constable, a marshal, a police officer of a city or town, an individual who is commissioned by the department of public safety and a police officer who is appointed by a community college district governing board or the Arizona board of regents who received a certificate from the Arizona peace officer standards and training board, and any other state, federal, tribal, city or county officer who is vested by law with a duty to maintain public order and make arrests.

§ 15-1809 Spouses of military veterans tuition scholarship fund; tuition scholarships; eligibility; rules

A. The spouses of military veterans tuition scholarship fund is established consisting of legislative appropriations. The Arizona board of regents shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the Arizona board of regents, 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 fund. Subject to available monies, the Arizona board of regents shall use the monies in the fund to award tuition scholarships to any person who meets all of the following requirements:

Enrolls in a university under the jurisdiction of the Arizona board of regents or in a community college as defined in section 15-1401.
Is the spouse of an honorably discharged veteran of the armed forces of the United States. For the purposes of proving that the person's spouse is an honorably discharged veteran of the armed forces of the United States as required by this paragraph:

(a) The person shall submit proof of the honorable discharge or general discharge under honorable conditions of the person's spouse.

(b) The department of veterans' services shall verify that the person is the spouse of an honorably discharged veteran.

Is entitled to classification as an in-state student under section 15-1802.
Is a resident of this state at the time of applying for a tuition scholarship and continues to be a resident of this state while receiving a tuition scholarship under this section.
Completes and submits the free application for federal student aid for each year that the person receives a tuition scholarship under this section.
Complies with the standards of satisfactory academic progress as established by the university or community college in which the person enrolls.
Completes a family educational rights and privacy act of 1974 (P.L. 93-380; 88 Stat. 571) release form for each university or community college in which the person is enrolled to authorize the release of personally identifiable information required to determine continued tuition scholarship eligibility under this section.

B. A person who meets the requirements prescribed in subsection A of this section may apply to the Arizona board of regents for a tuition scholarship from the fund in a manner prescribed by the Arizona board of regents. Subject to available monies, the Arizona board of regents shall award an eligible person a tuition scholarship that is equal to the amount of tuition and mandatory fees charged by the university or community college in which the person is enrolled, reduced by the amount of any federal aid scholarships or public grants and any other financial gifts, grants or aid received by that person. The Arizona board of regents shall verify that the person satisfies the requirements prescribed in subsection A of this section before awarding a tuition scholarship. If the Arizona board of regents determines that a person no longer satisfies the requirements prescribed in subsection A of this section, the Arizona board of regents may not award a subsequent tuition scholarship from the fund until the person submits documentation showing that the person satisfies all requirements prescribed in subsection A of this section.

C. A tuition scholarship provided pursuant to this section shall be:

Limited to not more than four academic years or eight semesters.
Used only for a certificate, an associate degree or a baccalaureate degree.
Used only to pay tuition and mandatory fees at a university under the jurisdiction of the Arizona board of regents or at a community college as defined in section 15-1401.

D. Tuition scholarships under this section shall be awarded on a first-come, first-served basis. If there are insufficient monies in the fund, the Arizona board of regents may not award a tuition scholarship to an eligible person under this section.

E. On or before June 30 of each year, if there are any unexpended and unencumbered monies remaining in the fund after scholarships are awarded pursuant to this section and surplus monies are distributed pursuant to section 15-1808, the Arizona board of regents shall deposit the remaining monies as follows:

$500,000 or the amount of remaining monies, whichever is less, in the spouses and dependents of law enforcement officers tuition scholarship fund established by section 15-1809.02.
Any monies remaining after the deposit pursuant to paragraph 1 of this subsection as follows:

(a) Thirty percent in the Arizona teachers academy fund established by section 15-1655.

(b) Sixty percent in the Arizona promise program fund established by section 15-1701.

F. The Arizona board of regents may adopt rules for the purposes of administering this section.

§ 15-1809.01 Tuition waiver scholarships; persons in foster care; requirements; definition

A. The Arizona board of regents shall provide a tuition waiver scholarship at any university under the jurisdiction of the Arizona board of regents and each community college district shall provide a tuition waiver scholarship at any community college in that community college district to any person who meets all of the following conditions:

Resides in this state.
Either:

(a) Is currently in foster care and is at least fourteen years of age.

(b) Was in foster care when the person was at least fourteen years of age.

Is a United States citizen or is a noncitizen who is lawfully present in this country.
Has total personal assets, not including scholarships or grants received by the person, that are worth less than $10,000.
Is under twenty-three years of age.
Is accepted into or enrolled in a degree, certificate or other accredited program at a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district. The person must demonstrate continuous progress toward a degree or certificate to remain eligible for a tuition waiver scholarship issued pursuant to this section.
Completed and submitted to the United States department of education a free application for federal student aid before each year in which the person receives a tuition waiver scholarship pursuant to this section.
After the first academic year in which the person receives a tuition waiver scholarship pursuant to this section, annually completes at least thirty hours of volunteer service during the previous academic year.
Remains in good standing with the policies established by the university or community college at which the person is enrolled.

B. A tuition waiver scholarship provided pursuant to this section shall be reduced by the amount of any other federal aid scholarships or public grants and any other public aid received by that person from or through the university or community college at which the person is enrolled, except that a tuition waiver scholarship may not be reduced by the amount of federal grants received by the person from the department of child safety under the Arizona education and training voucher program.

C. If the tuition waiver scholarship is terminated before a tuition waiver scholarship recipient obtains an associate degree, a baccalaureate degree or a certificate and before the recipient reaches twenty-three years of age, that person shall continue to be awarded a tuition waiver scholarship until the person reaches twenty-three years of age or obtains a baccalaureate degree, an associate degree or a certificate, whichever occurs first, if the person continues to meet the scholarship criteria prescribed by this section.

D. For the purposes of this section, "tuition" means tuition and mandatory fees charged by the university or community college.

§ 15-1809.02 Spouses and dependents of law enforcement officers tuition scholarship fund; tuition scholarships; eligibility; rules; reporting requirements; definition

A. The spouses and dependents of law enforcement officers tuition scholarship fund is established consisting of monies deposited pursuant to section 15-1809, subsection E and legislative appropriations. The Arizona board of regents shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Subject to available monies, the Arizona board of regents shall use the monies in the fund to award tuition scholarships to any individual who meets all of the following requirements:

Enrolls in any of the following:

(a) A university under the jurisdiction of the Arizona board of regents.

(b) A community college as defined in section 15-1401.

(c) A career technical education program that is offered to adults or an associate degree program offered by a career technical education district pursuant to section 15-398.

(d) A private postsecondary educational institution in this state that is licensed pursuant to title 32, chapter 30, article 2.

Is either:

(a) The spouse of a law enforcement officer.

(b) Under twenty-seven years of age and a dependent of a law enforcement officer.

Is a resident of this state when the individual both:

(a) Applies for a tuition scholarship.

(b) Receives a tuition scholarship pursuant to this section.

For an individual who is enrolled in a university under the jurisdiction of the Arizona board of regents, is physically present in this state during each semester for which the individual receives a tuition scholarship pursuant to this section.

B. An individual who meets the requirements prescribed in subsection A of this section may apply to the Arizona board of regents for a tuition scholarship from the fund in a manner prescribed by the Arizona board of regents. Subject to available monies, the Arizona board of regents shall award an eligible individual a tuition scholarship that is equal to the amount of tuition and mandatory fees charged by the university, community college or career technical education district in which the individual is enrolled, reduced by the amount of any federal aid scholarships or public grants and any other financial gifts, grants or aid received by that individual, except that if the individual is enrolled in a private postsecondary educational institution, the tuition scholarship may not exceed the remainder of the average in-state tuition and fees charged by universities under the jurisdiction of the Arizona board of regents minus other gifts and aid awarded to that individual. The Arizona board of regents shall verify that each individual satisfies the requirements prescribed in subsection A of this section before awarding a tuition scholarship. If the Arizona board of regents determines that an individual no longer satisfies the requirements prescribed in subsection A of this section, the Arizona board of regents may not distribute additional monies from the fund to the individual until the individual submits documentation showing that the individual satisfies all requirements prescribed in subsection A of this section.

C. A tuition scholarship awarded pursuant to this section is subject to the following requirements:

A tuition scholarship award is limited to not more than four academic years or eight semesters.
Tuition scholarship award monies may be used only for a career technical education district program certificate or license, a private vocational program as defined in section 32-3001, an associate degree or a baccalaureate degree.
Tuition scholarship award monies may be used only to pay tuition and mandatory fees at a career technical education district, a private postsecondary educational institution in this state that is licensed pursuant to title 32, chapter 30, article 2, a university under the jurisdiction of the Arizona board of regents or a community college as defined in section 15-1401. If the individual is enrolled in a career technical education district program and is not charged to attend the career technical education district program, the Arizona board of regents may not award the individual a tuition scholarship pursuant to this section.

D. The Arizona board of regents shall award tuition scholarships pursuant to this section on a first-come, first-served basis. If there are insufficient monies in the fund, the Arizona board of regents may not award a tuition scholarship to an eligible individual pursuant to this section.

E. The Arizona board of regents may rely on a copy of the law enforcement officer's commission card and a current employment verification letter from the law enforcement officer's employer to establish that an individual is a law enforcement officer for the purposes of this section.

F. The Arizona board of regents may adopt rules for the purposes of administering this section.

The total number of students who received a tuition scholarship pursuant to this section by eligible postsecondary institution in the current academic year.
The total amounts awarded and average amounts awarded pursuant to this section by eligible postsecondary institution in the current academic year.
The total number of students who received a tuition scholarship pursuant to this section and who graduated or completed a program of study by eligible postsecondary institution.
Each law enforcement agency that employs a law enforcement officer whose spouse or dependent, or both, receives a tuition scholarship pursuant to this section.

H. For the purposes of this section, "law enforcement officer" means an individual who is a resident of this state and who is currently employed in this state as either a peace officer as defined in section 15-1808 or a correctional officer.

Article 1.1 Individuals with Disabilities

§ 15-1811 Individuals with disabilities; policies; documentation; dissemination

A. A university under the jurisdiction of the Arizona board of regents or a community college as defined in section 15-1401 must adopt policies that meet both of the following:

Make any of the following submitted by an enrolled or admitted student at the university or community college sufficient to establish that the individual is an individual with a disability:

(a) Documentation that the individual has had an individualized education program in accordance with section 614(d) of the individuals with disabilities education act (P.L. 91–230; 84 Stat. 175 to 188), including an individualized education program that is not current on the date of the determination that the individual has a disability. The university or community college may ask for additional documentation from an individual who had an individualized education program but who was subsequently evaluated and determined to be ineligible for services under the individuals with disabilities education act (P.L. 91–230; 84 Stat. 175 to 188), including an individual determined to be ineligible during elementary school.

(b) Documentation describing services or accommodations provided to the individual pursuant to a section 504 plan as defined in section 15-731.

(c) A plan or record of service for the individual from a private school, a local education agency, a state educational agency or an institution of higher education provided in accordance with the Americans with disabilities act of 1990 (P.L. 101–336; 104 Stat. 327).

(d) A record or evaluation from a relevant licensed professional finding that the individual has a disability.

(e) A plan or record of disability from another institution of higher education.

(f) Documentation of a disability due to service in the uniformed services.

Are transparent and explicit regarding information about the process by which the university or community college determines eligibility for accommodations for an individual with a disability.

B. A university under the jurisdiction of the Arizona board of regents or a community college as defined in section 15-1401 shall disseminate the policies adopted pursuant to subsection A of this section to students, faculty and the public in accessible formats, including during any student orientation and on the university's or community college's website.

C. A university or community college may establish less burdensome criteria than the criteria prescribed in subsection A of this section to establish an individual as an individual with a disability.

D. A university under the jurisdiction of the Arizona board of regents or a community college as defined in section 15-1401 shall engage in the interactive process to establish a reasonable accommodation, including requesting additional documentation, if needed, for an individual pursuant to section 504 of the rehabilitation act of 1973 (P.L. 93-112; 87 Stat. 355; 29 United States Code section 794) and the Americans with disabilities act of 1990 (P.L. 101-336; 104 Stat. 327).

E. This section does not affect the meaning of the terms "reasonable accommodation" or "record of impairment" under the Americans with disabilities act of 1990 (P.L. 101-336; 104 Stat. 327) or the rights or remedies provided under the Americans with disabilities act of 1990 (P.L. 101-336; 104 Stat. 327).

Article 2 Admission of Students

§ 15-1821 Special admission of students under age eighteen; enrollment information; reports

A. Each community college district board shall adopt policies that require community colleges under its jurisdiction to admit students under age eighteen who have not yet attained a high school diploma or high school certificate of equivalency and who meet the established requirements of the courses for which they enroll. The Arizona board of regents shall adopt rules that require the universities under its jurisdiction to admit students under age eighteen who have not yet attained a high school diploma or high school certificate of equivalency and who meet the established requirements of the courses for which they enroll.

B. The policies and rules as provided in subsection A of this section shall include the following provisions:

A student under age eighteen shall not be denied admission because of age, lack of a high school diploma or high school certificate of equivalency, grade in school, lack of permission of school officials or lack of concurrent enrollment in a public or private school, if the student has achieved at least a specified score on a college entrance examination.
A community college or university that admits a student pursuant to paragraph 1 of this subsection may limit the number of semester credit hours in which the student may enroll to no less than six semester credit hours.
A student admitted to a community college or university pursuant to paragraph 1 of this subsection is not guaranteed admission to a specific degree program or to all courses offered by the community college or university.

C. Each community college district and the Arizona board of regents shall provide all high schools in this state with information that describes the policies and rules, as appropriate, the types of courses available and other information related to the enrollment of students under the age of eighteen. Each unified or high school district school shall make this information available to all students in at least grades nine through twelve.

D. On or before November 15 of each year, the Arizona board of regents shall submit a report to the president of the senate, the speaker of the house of representatives and the state board of education and shall provide a copy of this report to the secretary of state on students under eighteen years of age who had not yet attained a high school diploma or high school certificate of equivalency and who were enrolled in a university course or a program for university credit during the time period of September of the previous fiscal year through August of the current fiscal year. The annual report shall include at least the following:

The number of students who were enrolled.
A general narrative of the types of courses or programs in which the students were enrolled.
The rules adopted pursuant to subsection A of this section.

E. On or before September 30 of each year, each institution under the jurisdiction of the Arizona board of regents shall submit to the Arizona board of regents in the form specified by the Arizona board of regents the information that the Arizona board of regents needs to compile the report required in subsection D of this section.

§ 15-1821.01 Dual enrollment information

On a determination by a community college district governing board that it is in the best interest of the citizens of a district, the district governing board may authorize district community colleges to offer college courses that may be counted toward both high school and college graduation requirements at the high school during the school day, subject to the following:

The community college district governing board and the governing board of the school district or organization of which the high school is a part shall enter into an agreement or contract. These intergovernmental agreements or contracts shall be based on a uniform format that has been cooperatively developed by the community college districts in this state. Each of these agreements or contracts shall clearly specify the following:

(a) The financial provisions of the agreement or contract and the format for billing all services under the agreement or contract, including the amount that the community college received in full-time student equivalent funding pursuant to section 15-1466.01, the portion of the funding that is distributed to the school district governing board or charter school and any amount that is subsequently returned to the community college district by the school district governing board or charter school.

(b) Student tuition and financial aid policies, including whether scholarships or grants are awarded to students in dual enrollment courses from the community college.

(d) The responsibilities and services required of each party to the agreement or contract.

(e) The type of instruction that will be provided under the agreement or contract, including the titles of the courses to be offered.

(f) The quality of the instruction that will be provided under the agreement or contract.

Students shall be admitted to the community college under the policies adopted by each district, except that all students who are enrolled for college credit shall be high school freshmen, sophomores, juniors or seniors. All students who are in the course, including those not electing to enroll for college credit, shall satisfy the prerequisites for the course as published in the college catalog and shall comply with college policies regarding student placement in courses.
The courses shall be previously evaluated and approved through the curriculum approval process of the district, shall be at a higher level than taught by the high school and shall be transferable to a university under the jurisdiction of the Arizona board of regents or be applicable to an established community college occupational degree or certificate program. Physical education courses are not available for dual enrollment purposes.
College-approved textbooks, syllabuses, course outlines and grading standards that are applicable to the courses if taught at the community college shall apply to these courses and to all students in the courses offered pursuant to this section. The chief executive officer of each community college shall establish an advisory committee of full-time faculty who teach in the disciplines offered at the community college to assist in course selection and implementation in the high schools and to review and report at least annually to the chief executive officer whether the course goals and standards are understood, the course guidelines are followed and the same standards of expectation and assessment are applied to these courses as though they were being offered at the community college. The advisory committee of full-time faculty shall meet at least three times each academic year.
Each faculty member shall meet the requirements established by the governing board pursuant to section 15-1444. The chief executive officer of each community college district shall establish an advisory committee of full-time faculty who teach in the disciplines offered at the community college district to assist in the selection, orientation, ongoing professional development and evaluation of faculty who are teaching college courses in conjunction with the high schools. The advisory committee of full-time faculty shall meet at least two times each academic year.
A school district shall ensure that a pupil is a full-time student as defined in section 15-901 and is enrolled in and attending a full-time instructional program at a school in the school district before that pupil is allowed to enroll in a college course pursuant to this section, except that high school seniors who satisfy high school graduation requirements with less than a full-time instructional program are exempt from this paragraph.
Notwithstanding paragraph 6 of this section, homeschooled students may fully participate in dual enrollment, including receipt of college credit pursuant to this section.
As allowed under community college accreditation guidelines, a child with a disability as defined in section 15-761 shall have access to any supplementary aid, service or accommodation provided in the child's individualized education program as defined in section 15-731 or in the student's section 504 plan as defined in section 15-731.

§ 15-1822 Report; academic performance of high school graduates

A. On or before October 31, each community college district and the Arizona board of regents shall submit a report to the president of the senate, the speaker of the house of representatives, the superintendent of public instruction and the state board of education and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records, on the academic performance of the preceding year's graduates from high schools in this state enrolled in institutions under their jurisdiction during the year ending on June 30 of the current calendar year. The report shall include for each school at least the following:

The number of graduates of the school who were enrolled in the institution during the reporting period.
Information about the academic performance of graduates of the school in mathematics and English courses.

B. On or before September 1, each institution under the jurisdiction of the Arizona board of regents shall submit to the Arizona board of regents in the form specified by the Arizona board of regents the information that the Arizona board of regents needs to compile the report required under this section.

C. The superintendent of public instruction shall provide each high school in this state with a copy of the portion of the report that is applicable to its graduates.

§ 15-1823 Identification numbers; social security numbers

A. From and after June 30, 2002, if a university under the jurisdiction of the Arizona board of regents assigns an individual identification number to faculty, staff or students at a university, the identification number shall not be identical to the individual's social security number. Notwithstanding subsection B of this section, if a student was assigned an identification number after June 30, 2006, in connection with the student accountability information system established by section 15-1041, the identification number assigned to that student by the university shall correspond to or reference the identification number assigned to that student in connection with the student accountability information system. The student shall provide the student accountability information system number to the university. The school district or charter school shall provide the student with the student accountability information system number upon request. The university shall not allow the display of the individual's social security number, or any four or more consecutive numbers contained in the individual's social security number, on any internet site maintained by the university or other publicly accessible document for any purpose.

B. If a community college or community college district assigns an individual identification number to faculty, staff or students at a community college that is identical to an individual's social security number, the community college or community college district shall not allow the display of an individual's social security number, or any four or more consecutive numbers contained in the individual's social security number, on any internet site maintained by the community college or community college district or other publicly accessible document for any purpose.

C. Notwithstanding subsection B of this section, if a student was assigned an identification number after June 30, 2006, in connection with the student accountability information system established by section 15-1041, the identification number assigned to that student by the community college or community college district shall correspond to or reference the identification number assigned to that student in connection with the student accountability information system. The student shall provide the student accountability information system number to the community college. The school district or charter school shall provide the student with the student accountability information system number upon request. A community college or community college district shall assign any other student an identification number that is not identical to the student's social security number. Beginning January 1, 2004, if a high school student is enrolled in a college course offered by a community college district pursuant to section 15-1821.01, the identification number assigned to that student pursuant to this subsection shall correspond to the identification number assigned to that student in connection with the student accountability information system established by section 15-1041. A community college or community college district shall notify students of the option to obtain an individual identification number for no additional fee that is not identical to an individual's social security number in applications for admission, through telecommunications registration procedures, and in college catalogs. Notification in catalogs shall occur no later than June 30, 2000, or in the next printed edition of the catalog after the current one in print, whichever is sooner.

D. On the request of a faculty or staff member, a community college or community college district shall assign the faculty or staff member an identification number that is not identical to the faculty or staff member's social security number. A community college or community college district shall provide notification to faculty and staff members of the option to obtain an individual identification number that is not identical to a faculty or staff member's social security number.

E. This section does not exempt any regulated institution from any duty of compliance it may have with any federal law that may:

Regulate that institution's collection or use of social security numbers.
Protect the privacy rights of faculty, staff or students.

F. This section does not prohibit the electronic transfer of student transcripts between educational institutions.

§ 15-1824 Transfer articulation; course numbering; reports

A. The community college districts and universities shall cooperate in operating a statewide articulation and transfer system, including the process for transfer of lower division general education credits, general elective credits and curriculum requirements for approved majors, to facilitate the transfer of community college students to Arizona public universities without a loss of credit toward a baccalaureate degree and to ensure that the postsecondary education needs of students statewide are met without unnecessary duplication of programs.

B. The community college districts and the universities under the jurisdiction of the Arizona board of regents shall develop and implement a shared numbering system which identifies courses that transfer from community colleges to Arizona public universities toward a baccalaureate degree.

C. The Arizona board of regents and the community college districts shall submit an annual report of their progress on both articulation and meeting statewide postsecondary education needs to the joint legislative budget committee on or before December 15 and shall provide a copy of this report to the secretary of state.

Article 3 Vocational Programs

§ 15-1831 Information on persons who have completed vocational programs; definitions

A. The center for vocational education shall:

By the end of each calendar year publish and distribute a report of the placement rates and average salaries earned by persons completing vocational programs in this state during the prior fiscal year. This report may include information on a program which would be a vocational program except that it was not completed by at least twenty-five persons during the fiscal year.
Establish an advisory committee consisting of representatives of both public and private institutions which offer vocational programs. The advisory committee shall advise the center in the implementation of this section.
Prescribe the format in which institutions which offer vocational programs shall provide the information necessary to produce the report prescribed in paragraph 1 of this subsection.

B. In this section, unless the context otherwise requires:

"Center for vocational education" means the center for vocational education at a university under the jurisdiction of the Arizona board of regents designated by the board.
"Vocational program" means a program that is completed by at least twenty-five persons during the fiscal year and that is one of the following:

(a) Operated by a community college district organized pursuant to chapter 12 of this title and designated as a vocational program, including vocational programs operated by a skill center.

(b) A private vocational program that is licensed pursuant to section 32-3021 and that does not provide a baccalaureate degree.

Article 6 Students' Rights

§ 15-1861 Definitions

In this article, unless the context otherwise requires:

"Community college" has the same meaning prescribed in section 15-1401.
"Individual conduct that materially and substantially infringes on the rights of other persons to engage in or listen to expressive activity" means conduct by a person who, with the intent to or the knowledge of doing so, materially and substantially prevents the communication of a message or prevents the transaction of the business of a lawful meeting, gathering or procession by doing any of the following:

(a) Engaging in fighting or violent or other unlawful behavior.

(b) Physically blocking or using threats of violence to prevent another person from attending, listening to, viewing or otherwise participating in an expressive activity.

(c) Preventing another person from attending, listening to, viewing or otherwise participating in an expressive activity that is held at a location that is not a public forum, such as an auditorium or lecture hall.

"Public forum" includes both a traditional public forum, which is any open, outdoor area on the campus of a university or community college, and a designated public forum, which is any facility, building or part of a building that the university or community college has opened to students or student organizations for expression.
"University" means a university under the jurisdiction of the Arizona board of regents.

§ 15-1862 Rights of students at universities and community colleges

A. A university or community college shall not discriminate against a student on the basis of the student's religious viewpoint, expression or belief.

B. A university or community college shall not adopt any policy that penalizes or punishes a student based on the student's religious viewpoint, expression or beliefs.

C. If an assignment or classroom discussion requests a student's viewpoint in coursework, artwork or other written or oral assignments, a university or community college shall not penalize or reward a student on the basis of religious content or a religious viewpoint. In such an assignment, a student's academic work that expresses a religious viewpoint shall be evaluated based on ordinary academic standards such as grammar, style, analysis and adherence to the instructions for the assignment.

D. A university or community college shall not withhold any certificate or degree on the basis of a student's religious viewpoint or religious expression.

E. A university or community college shall not discipline or discriminate against a student in a counseling, social work or psychology program because the student refuses to counsel a client about goals that conflict with the student's sincerely held religious belief if the student consults with the supervising instructor or professor to determine the proper course of action to avoid harm to the client.

§ 15-1863 Student organizations; recognition; rights

A. A university or community college that grants recognition to any student organization or group may not discriminate against or deny recognition, equal access or a fair opportunity to any student organization or group on the basis of the religious, political, philosophical or other content of the organization's or group's speech including worship.

B. A religious or political student organization may determine that ordering the organization's internal affairs, selecting the organization's leaders and members, defining the organization's doctrines and resolving the organization's disputes are in furtherance of the organization's religious or political mission and that only persons committed to that mission should conduct such activities.

C. A university or community college may not deny recognition or any privilege or benefit to a student organization or group that exercises its rights pursuant to subsection B.

§ 15-1864 Students' right to speak in a public forum; protests and demonstrations; invited speakers; court actions

A. A university or community college shall not restrict a student's right to speak, including verbal speech, holding a sign or distributing fliers or other materials, in a public forum, but may impose reasonable time, place and manner restrictions as allowed in this section.

B. A university or community college shall not impose restrictions on the time, place and manner of student speech that occurs in a public forum and that is protected by the first amendment to the United States Constitution unless the restrictions:

Are reasonable.
Are justified without reference to the content of the regulated speech.
Are necessary to achieve a compelling governmental interest.
Are the least restrictive means to further that compelling government interest.
Leave open ample alternative channels for communication of the information.
Allow spontaneous assembly and distribution of literature.

C. A person who is lawfully present on a university or community college campus may engage in expressive activity, including a protest or demonstration, in any area where the person is lawfully present. Individual conduct that materially and substantially infringes on the rights of other persons to engage in or listen to expressive activity is not allowed and is subject to sanction. This subsection does not prohibit:

A university or community college from regulating economic activity on the university's or community college's campus.
Faculty members from maintaining order in the classroom.

D. The public areas of university and community college campuses are public forums and are open on the same terms to any speaker.

E. University and community college campuses are open to any speaker whom a student, student group or faculty member has invited.

F. A university or community college shall make reasonable efforts and make available reasonable resources to address the safety of an invited speaker and other persons in attendance. A university or community college may not charge security fees based on the content of the speech of the person who invited a speaker or of the invited speaker. A university or community college may restrict the use of its nonpublic facilities to invited individuals.

G. An individual student or a faculty or staff member of a university or community college may take a position on the public policy controversies of the day, but the institution is encouraged to attempt to remain neutral, as an institution, on the public policy controversies of the day unless the administrative decisions on such issues are essential to the day-to-day functioning of the university or community college.

H. A university or community college may not take action, as an institution, on the public policy controversies of the day in a way that requires students or faculty members to publicly express or endorse a particular view of a public policy controversy.

I. The following persons may bring an action in a court of competent jurisdiction to enjoin any violation of this article by any university, community college, faculty member or administrator or to recover reasonable court costs and reasonable attorney fees:

The attorney general.
A person whose expressive rights were violated by a violation of this article.

J. In an action brought under subsection I of this section, if the court finds that a violation of this article occurred, the court shall award the aggrieved person injunctive relief for the violation and shall award reasonable court costs and reasonable attorney fees. The court shall also award damages of $1,000 or actual damages, whichever is greater.

K. A person shall bring an action for a violation of this article within one year after the date the cause of action accrues. For the purpose of calculating the one-year limitation period, each day that the violation persists or each day that a policy in violation of this article remains in effect constitutes a new violation of this article and shall be considered a day that the cause of action has accrued.

§ 15-1865 Free speech; prohibition

Subject to reasonable time, place and manner restrictions, a community college or university may not limit any area on campus where free speech may be exercised by a person who is lawfully present.

§ 15-1866 Free expression policy; rules; Arizona board of regents; community college district governing boards; requirements

A. The Arizona board of regents and each community college district governing board shall develop and adopt a policy on free expression that contains at least the following statements and requirements:

The primary function of an institution of higher education is the discovery, improvement, transmission and dissemination of knowledge by means of research, teaching, discussion and debate. This statement shall provide that, to fulfill this function, the university or community college must strive to ensure the fullest degree of intellectual freedom and free expression.
It is not the proper role of an institution of higher education to shield individuals from speech protected by the first amendment, including, without limitation, ideas and opinions that may be unwelcome, disagreeable or deeply offensive.
Students and faculty members have the freedom to discuss any problem that presents itself, as the first amendment allows and within the limits of reasonable viewpoint and content-neutral restrictions on time, place and manner of expression that are consistent with this article and that are necessary to achieve a compelling institutional interest if these restrictions are clear, are published and provide ample alternative means of expression. This statement shall specify that students and faculty members may assemble and engage in spontaneous expressive activities if those activities are not unlawful and do not materially and substantially disrupt the functioning of the university or community college.
There is a range of disciplinary actions for a student who is subject to the jurisdiction of a university or community college and who engages in individual conduct that materially and substantially infringes on the rights of other persons to engage in or listen to expressive activity.
In all disciplinary proceedings involving students, including proceedings involving expressive conduct, a student is entitled to a disciplinary hearing under published procedures that include, at a minimum, all of the following:

(a) The right to receive advance written notice of the allegations.

(b) The right to review the evidence in support of the allegations.

(d) The right to present a defense.

(e) The right to call witnesses.

(f) A decision by an impartial person or panel.

(g) The right to appeal.

(h) If either a suspension of more than thirty days or expulsion is a potential consequence of a disciplinary proceeding under this section, the right to active assistance of counsel.

B. It is the sense of the legislature that if a student has repeatedly been determined to have engaged in individual conduct that materially and substantially infringes on the rights of other persons to engage in or listen to expressive activity, a punishment of suspension or expulsion from the university or community college may be appropriate.

C. This section supersedes any previous policies of a university or community college that restrict speech on campuses and that are inconsistent with the statements and requirements prescribed in this section. Each university and community college shall remove or revise any provisions in its policies or rules in order to comply with this section.

D. The Arizona board of regents and each community college district governing board may adopt rules to further the purposes of the policy adopted pursuant to subsection A of this section. This section does not prevent universities and community colleges from regulating student speech or activity that is prohibited by law. Except as otherwise provided by this article, universities and community colleges may restrict student expression only for expressive activity that is not protected by the first amendment of the United States Constitution, including:

A violation of state or federal law.
An expression that a court has deemed unprotected defamation.
Harassment. For the purposes of this paragraph, "harassment" means only that expression that is so severe, pervasive and subjectively and objectively offensive that it unreasonably interferes with an individual's access to educational opportunities or benefits provided by the university or community college.
A true threat. For the purposes of this paragraph, "true threat" means a statement that is meant by the speaker to communicate a serious expression of an intent to commit an act of unlawful violence against a particular person or a group of persons.
An unjustifiable invasion of privacy or confidentiality that does not involve a matter of public concern.
An action that unlawfully disrupts the function of the university or community college.
An action prohibited by section 15-1866.01.

§ 15-1866.01 Encampments; unlawful assembly; prohibitions; removal; definition

A. An individual may not establish or occupy an encampment on the campus of a university or community college.

B. If an individual or group of individuals violates subsection A of this section, an administrator of the university or community college shall do all of the following:

Direct the individual or group of individuals to immediately dismantle the encampment and vacate the campus.
Advise the individual or group of individuals that any individual who fails to comply with the direction to leave pursuant to paragraph 1 of this subsection is guilty of criminal trespass pursuant to title 13, chapter 15.
If the individual or group of individuals refuses to comply with the direction to leave pursuant to paragraph 1 of this subsection, initiate legal action to have the individual or group of individuals removed from the campus of the university or community college. For the purposes of this paragraph, "legal action" includes reporting the trespass to a local law enforcement agency.
Initiate disciplinary action against any student who refuses to comply with the direction to leave pursuant to paragraph 1 of this subsection pursuant to the university's or community college's student code of conduct.

C. Any individual who establishes or occupies an encampment in violation of subsection A of this section is both of the following:

Liable for all damages that the individual causes, including the direct and indirect costs of:

(a) Removing the encampment established or occupied by the individual and restoring the campus.

(b) Repairing any destruction, defacement or alteration of the university's or community college's property, including buildings, grounds, equipment and resources, that resulted from the individual's intentional or negligent conduct relating to the encampment.

Not lawfully present on the university's or community college's campus for the purposes of section 15-1864 or 15-1865.

D. A law enforcement agency, peace officer or member of a university's or community college's campus security shall enforce subsection A of this section and has the authority to remove from the campus an encampment and any individual or group of individuals that has violated subsection A of this section and refused to comply with the direction to leave pursuant to subsection B, paragraph 1 of this section.

E. Each university under the jurisdiction of the Arizona board of regents shall comply with the Arizona board of regent's student code of conduct.

F. For the purposes of this section, "encampment" means a temporary shelter, including tents, that is installed on the campus of a university or community college and that is used to stay on the campus overnight or for a prolonged period of time.

§ 15-1867 Arizona board of regents; committee on free expression; annual report

A. The Arizona board of regents shall establish a committee on free expression consisting of at least fifteen members.

B. The committee on free expression shall submit an annual report on or before September 1 to the governor, the speaker of the house of representatives and the president of the senate. The Arizona board of regents shall post a copy of the annual report on its website and shall submit a copy of the annual report to the secretary of state. The annual report shall include:

A description of any barriers to or disruptions of free expression within the universities in this state.
A description of the administrative handling and discipline relating to barriers to or disruptions of free expression within the universities in this state.
A description of substantial difficulties, controversies or successes in maintaining a posture of administrative and institutional neutrality.
Any assessments, criticisms, commendations or recommendations that the committee decides to include in the annual report.
An accounting of how student activity fees were allocated in the prior year. For the purposes of this paragraph, "student activity fees" means any fee that is charged to students by a university in this state and that is used to support and facilitate the expression and activities of students or student organizations.

§ 15-1868 Community college districts; committee on free expression; annual report

A. The community college district governing boards shall each establish a committee on free expression.

B. Each committee on free expression shall submit an annual report on or before December 1 to the governor, the speaker of the house of representatives and the president of the senate and submit a copy of the annual report to the secretary of state. Each community college district shall post a copy of the annual report on its respective website. The annual report shall include:

A description of any barriers to or disruptions of free expression within the community colleges in this state.
A description of the administrative handling and discipline relating to barriers to or disruptions of free expression within the community colleges in this state.
A description of substantial difficulties, controversies or successes in maintaining a posture of administrative and institutional neutrality.
Any assessments, criticisms, commendations or recommendations that the committee decides to include in the annual report.
An accounting of how student activity fees were allocated in the prior year. For the purposes of this paragraph, "student activity fees" means any fee that is charged to students by a community college in this state and that is used to support and facilitate the expression and activities of students or student organizations.

§ 15-1869 Information on free expression; freshman orientation programs

Each university and community college shall include in its freshman orientation program information describing the policies and rules regarding free expression in a manner that is consistent with this article.

Article 7 AZ529, Arizona's Education Savings Plan

§ 15-1871 Definitions

In this article, unless the context otherwise requires:

"Account" means an individual trust account in the fund that is established as prescribed in this article.
"Account owner" means the person who enters into a tuition savings agreement pursuant to this article, who is an account owner within the meaning of section 529 of the internal revenue code and who is designated at the time an account is opened as having the right to withdraw monies from the account before the account is disbursed to or for the benefit of the designated beneficiary.
"Board" means the state board of investment.
"Designated beneficiary" means a person who qualifies as a designated beneficiary under section 529 of the internal revenue code and, except as provided in section 15-1875, subsections P and Q, with respect to an account, who is designated at the time the account is opened as the person whose qualified higher education expenses are expected to be paid from the account or, if this designated beneficiary is replaced in accordance with section 15-1875, subsections D, E and F, the replacement beneficiary.
"Eligible educational institution" means an institution of higher education that qualifies under section 529 of the internal revenue code as an eligible educational institution.
"Financial institution" means the state treasurer's office or any bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, brokerage firm or other similar entity that is authorized to do business in this state.
"Fund" means AZ529, Arizona's education savings plan trust fund that constitutes a public instrumentality of this state and that is established by section 15-1873.
"Member of the family" means any of the following:

(a) A son or daughter of a person or a descendant of the son or daughter of the person.

(b) A stepson or stepdaughter of a person.

(c) A brother, sister, stepbrother or stepsister of a person. For the purposes of this subdivision, "brother" and "sister" includes a brother or sister by the half-blood.

(d) The father or mother of a person or the ancestor of the father or mother of a person.

(e) A stepfather or stepmother of a person.

(f) A son or daughter of a person's brother or sister. For the purposes of this subdivision, "brother" and "sister" includes a brother or sister by the half-blood.

(g) A brother or sister of the person's father or mother. For the purposes of this subdivision, "brother" and "sister" includes a brother or sister by the half-blood.

(h) A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law of a person.

(i) The spouse of a person or the spouse of any individual described in this paragraph.

(j) A first cousin of a person.

(k) Any individual who meets the criteria for family membership described in this paragraph as a result of legal adoption.

"Nonqualified withdrawal" means a withdrawal from an account other than one of the following:

(a) A qualified withdrawal.

(b) A withdrawal made as the result of the death or disability of the designated beneficiary of an account.

(c) A withdrawal that is made on the account of a scholarship, or the allowance or payment described in section 135(d)(1)(B) or (C) of the internal revenue code, and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment.

(d) A rollover or change of designated beneficiary.

"Person" means an individual, an individual's legal representative or any other legal entity authorized to establish a savings account under section 529 of the internal revenue code and the corresponding regulations.
"Plan" means AZ529, Arizona's education savings plan that is established under this article and that constitutes a qualified tuition program as defined in section 529 of the internal revenue code.
"Qualified higher education expenses":

(a) Means:

(i) Tuition, fees, books, supplies, room and board and equipment required for a designated beneficiary to enroll at or attend an eligible educational institution.

(ii) Expenses for special needs services in the case of a special needs beneficiary that are incurred in connection with enrolling or attending, if these expenses meet the definition of qualified higher education expenses in section 529 of the internal revenue code.

(iii) Expenses to purchase a computer, peripheral equipment, computer software or internet access and related services if the computer equipment, software or services are to be used primarily by the beneficiary during the years the beneficiary is enrolled at an eligible educational institution and if these expenses meet the definition of qualified higher education expenses in section 529 of the internal revenue code.

(iv) Expenses for fees, books, supplies and equipment required for a designated beneficiary to participate in an apprenticeship program that is registered and certified with the United States secretary of labor under section 1 of the national apprenticeship act (50 Stat. 664; 29 United States Code section 50) if these expenses meet the definition of qualified higher education expenses in section 529 of the internal revenue code.

(b) Includes tuition to enroll in or attend an elementary or secondary public, private or religious school pursuant to section 529 of the internal revenue code.

(c) Includes amounts paid as principal or interest on any qualified education loan as defined in section 221(d) of the internal revenue code of the designated beneficiary or a brother, sister, stepbrother or stepsister of the designated beneficiary pursuant to section 529 of the internal revenue code.

"Qualified withdrawal" means a withdrawal from an account to pay any of the following:

(a) The qualified higher education expenses of the designated beneficiary of the account, but only if the withdrawal is made in accordance with this article.

(b) Tuition of less than $10,000 to enroll in or attend an elementary or secondary public, private or religious school pursuant to section 529 of the internal revenue code of the designated beneficiary of the account, but only if the withdrawal is made in accordance with this article.

(c) Amounts paid as principal or interest on any qualified education loan as defined in section 221(d) of the internal revenue code of the designated beneficiary or a brother, sister, stepbrother or stepsister of the designated beneficiary, but only if the withdrawal is made in accordance with this article. The amount of qualified withdrawals under this article with respect to the loans of any designated beneficiary or a brother, sister, stepbrother or stepsister of the designated beneficiary may not exceed $10,000, reduced by the amount of withdrawals so treated for all prior taxable years.

"Section 529 of the internal revenue code" means section 529 of the internal revenue code of 1986, as amended, and the final regulations issued pursuant to that section.
"Treasurer" means the state treasurer.
"Trust interest" means an account owner's interest in the fund created by a tuition savings agreement for the benefit of a designated beneficiary.
"Tuition savings agreement" means an agreement between the board, as trustee of the fund, and an account owner that creates an interest in the fund and that provides for participation in the plan.

§ 15-1872 AZ529, Arizona's education savings plan; state board of investment; rules; powers and duties

A. The board shall approve financial institutions to act as the depositories and managers of AZ529, Arizona's education savings plan accounts pursuant to section 15-1874.

B. The board may adopt rules to assist in implementing and administering this article.

C. Members of the board are immune from personal liability with respect to all actions that are taken in good faith and within the scope of the board's authority.

§ 15-1873 Treasurer; powers and duties; AZ529, Arizona's education savings plan trust fund

A. The treasurer shall:

Develop and implement the plan in a manner consistent with this article by adopting rules, guidelines and procedures.
Retain professional services, if necessary, including accountants, auditors, consultants and other experts.
Seek rulings and other guidance from the United States department of the treasury and the internal revenue service relating to the plan.
Make changes to the plan required for the participants in the plan to obtain the federal income tax benefits or treatment provided by section 529 of the internal revenue code.
Interpret, in rules, policies, guidelines and procedures, this article broadly in light of its purpose and objectives.
Charge, impose and collect administrative fees and service charges in connection with any agreement, contract or transaction relating to the plan.
Negotiate and select the financial institution or institutions to act as the depository and manager of the plan in accordance with this article. On approval by the board, the treasurer may use existing investment funds established pursuant to sections 35-314.03, 35-316 and 35-326 for this purpose.
Maintain the plan on behalf of this state as required by section 529 of the internal revenue code.
Enter into tuition savings agreements with account owners pursuant to this article.

B. AZ529, Arizona's education savings plan trust fund is established consisting of the assets of AZ529, Arizona's education savings plan. The treasurer shall administer the fund, and the board shall act as the trustee of the fund. Monies in the fund are continuously appropriated. The fund is designated a public instrumentality of this state that is created for an essential public purpose. Trust interests in the fund shall be designated by the treasurer for each account owner. The fund shall be separated into a trust account and an operating account. The trust account shall include amounts received by AZ529, Arizona's education savings plan from account owners pursuant to tuition savings agreements and interest and investment income earned by the fund. The treasurer shall make transfers from the trust account to the operating account as necessary to immediately pay obligations under tuition savings agreements, operating expenses and administrative costs of the plan. The treasurer shall deposit and invest monies or other amounts in the fund with financial institutions in accordance with section 15-1874.

§ 15-1874 Use of contractor as account depository and manager

A. The treasurer shall implement the operation of the plan through the use of one or more financial institutions to act as the depositories of the fund and managers of the plan. Under the plan, persons may submit applications for enrollment in the plan and establish accounts in the fund at the financial institution. Monies paid by account owners to the fund for deposit in accounts maintained by the fund at a financial institution shall be paid to the financial institution as an agent of the fund, and the tuition savings agreements shall provide that all monies paid by account owners to fund accounts held at financial institutions are being paid to the fund.

B. The treasurer shall solicit proposals from financial institutions to act as the depositories of fund monies and managers of the plan. Financial institutions that submit proposals must describe the financial instruments that will be held in accounts. The solicitation and selection process is exempt from the procurement code requirements of title 41, chapter 23.

C. On the recommendation of the treasurer, the board shall select the financial institution or institutions to implement the plan from among bidding financial institutions that demonstrate the most advantageous combination, both to potential plan participants and this state, of the following factors:

Financial stability and integrity.
The safety of the investment instruments being offered, taking into account any insurance provided with respect to these instruments.
The ability of the investment instruments to track estimated costs of higher education as calculated by the treasurer and provided by the financial institution to the account holder.
The ability of the financial institutions, directly or through a subcontract, to satisfy recordkeeping and reporting requirements.
The financial institution's plan for promoting the plan and the investment it is willing to make to promote the plan.
The fees, if any, proposed to be charged to persons for maintaining accounts.
The minimum initial deposit and minimum contributions that the financial institution will require for the investment of fund monies and the willingness of the financial institution to accept contributions through payroll deduction plans and other deposit plans.
Any other benefits to this state or its residents included in the proposal, including an account opening fee payable to the treasurer by the account owner and an additional fee from the financial institution for statewide plan marketing by the treasurer.

D. On approval by the board, the treasurer shall enter into a contract with a financial institution or, except as provided in subsection E of this section, contracts with financial institutions to serve as plan managers and depositories. Plan management contracts shall provide the terms and conditions by which financial institutions shall sell interests in the fund to account owners, invest monies in the fund and manage the plan.

E. The board may select more than one financial institution and investment for the plan if both of the following conditions exist:

The United States internal revenue service has provided guidance that giving a contributor a choice of two investment instruments under a state plan will not cause the plan to fail to qualify for favorable tax treatment under section 529 of the internal revenue code.
The treasurer concludes that the choice of instrument vehicles is in the best interest of college savers and will not interfere with the promotion of the plan.

F. A plan manager shall:

Take all action required to keep the plan in compliance with the requirements of this article and all action not contrary to this article or its contract to manage the plan so that it is treated as a qualified tuition plan under section 529 of the internal revenue code.
Keep adequate records of each of the fund's accounts, keep each account segregated from each other account and provide the treasurer with the information necessary to prepare statements required by section 15-1875, subsections M, N and O or file these statements on behalf of the treasurer.
Compile and total information contained in statements required to be prepared under section 15-1875, subsections M, N and O and provide these compilations to the treasurer.
If there is more than one plan manager, provide the treasurer with this information to assist the treasurer to determine compliance with section 15-1875, subsection L.
Provide representatives of the treasurer, including other contractors or other state agencies, access to the books and records of the plan manager to the extent needed to determine compliance with the contract.
Hold all accounts in the name of and for the benefit of the fund and this state.

G. Any contract executed between the treasurer and a financial institution pursuant to this section shall be for a term of at least three years and not more than seven years.

H. The board may terminate a contract with a financial institution at any time for good cause on the recommendation of the treasurer. If a contract is terminated pursuant to this subsection, the treasurer shall take custody of accounts held at that financial institution and shall seek to promptly transfer the accounts to another financial institution that is selected as a plan manager and into investment instruments as similar to the original investments as possible.

I. If the treasurer determines not to renew the appointment of a financial institution as a plan manager, the board may take action consistent with the interests of the plan and the accounts and in accordance with its duties as the trustee of the fund, including termination of all services or continuation of certain management and administrative services of that financial institution for accounts of the plan managed by that financial institution during its term as a plan manager, if any continuation of services is only permitted under the following conditions:

The treasurer and the financial institution enter into a written agreement specifying the rights of the plan and the treasurer and the responsibilities of the financial institution, including the standards that continue to be applicable to the accounts as accounts of the plan.
Any services provided by the financial institution to accounts continue to be subject to the control of the board as the trustee of the fund with responsibility of all accounts of the plan.

§ 15-1875 Plan requirements

A. The plan shall be operated through the use of accounts in the fund established by account owners. Payments to the fund for participation in the plan shall be made by account owners pursuant to tuition savings agreements. An account may be opened by any person who desires to invest in the fund and to save to pay qualified higher education expenses by satisfying each of the following requirements:

Completing an application in the form prescribed by the treasurer. The application shall include the following information:

(a) The name, address and social security number or employer identification number of the contributor.

(b) The name, address and social security number of the account owner if the account owner is not the contributor.

(d) The certification relating to no excess contributions required by subsection L of this section.

(e) Any other information that the treasurer may require.

Paying the onetime application fee established by the treasurer.
Making the minimum contribution required by the treasurer or by opening an account.
Designating the type of account to be opened if more than one type of account is offered.

B. Any person may make contributions to an account after the account is opened.

C. Contributions to accounts may be made only in cash.

D. An account owner may change the designated beneficiary of an account to an individual who is a member of the family of the former designated beneficiary in accordance with procedures established by the treasurer.

E. On the direction of an account owner, all or a portion of an account may be transferred to another account of which the designated beneficiary is a member of the family of the designated beneficiary of the transferee account.

F. Changes in designated beneficiaries and rollovers under this section are not allowed if the changes or rollovers would violate either of the following:

Subsection L of this section, relating to excess contributions.
Subsection I of this section, relating to investment choice.

G. Each account shall be maintained separately from each other account under the plan.

H. Separate records and accounting shall be maintained for each account for each designated beneficiary.

I. A contributor to, account owner of or designated beneficiary of any account may not direct the investment, within the meaning of section 529 of the internal revenue code, of any contributions to an account or the earnings from the account.

J. If the treasurer terminates the authority of a financial institution to hold accounts and accounts must be moved from that financial institution to another financial institution, the treasurer shall select the financial institution and type of investment to which the balance of the account is moved unless the internal revenue service provides guidance stating that allowing the account owner to select among several financial institutions that are then contractors would not cause a plan to cease to be a qualified tuition plan.

K. Neither an account owner nor a designated beneficiary may use an interest in an account as security for a loan. Any pledge of an interest in an account is of no force and effect.

L. On the recommendation of the treasurer, the board shall adopt rules to prevent contributions on behalf of a designated beneficiary in excess of those necessary to pay the qualified higher education expenses of the designated beneficiaries. The rules shall address the following:

Procedures for aggregating the total balances of multiple accounts established for a designated beneficiary.
The establishment of a maximum total balance for the purpose of prohibiting contributions to accounts established for a designated beneficiary if the contributions would cause the maximum total balance to be exceeded.
The board shall review the quarterly reports received from participating financial institutions and certify that the balance in all qualified tuition programs, as defined in section 529 of the internal revenue code, of which that person is the designated beneficiary does not exceed the lesser of:

(a) A maximum college savings amount established by the board from time to time.

(b) The cost in current dollars of qualified higher education expenses that the contributor reasonably anticipates the designated beneficiary will incur.

Requirements that any excess contributions with respect to a designated beneficiary be promptly withdrawn in a nonqualified withdrawal or rolled over to another account in accordance with this section.

M. If there is any distribution from an account to any person or for the benefit of any person during a calendar year, the distribution shall be reported to the internal revenue service and the account owner or the designated beneficiary to the extent required by federal law.

N. The financial institution shall provide statements to each account owner at least once each year within thirty-one days after the twelve-month period to which they relate. The statement shall identify the contributions made during a preceding twelve-month period, the total contributions made through the end of the period, the value of the account as of the end of this period, distributions made during this period and any other matters that the treasurer requires be reported to the account owner.

O. Statements and information returns relating to accounts shall be prepared and filed to the extent required by federal or state tax law.

P. A state or local government or organizations described in section 501(c)(3) of the internal revenue code may open and become the account owner of an account to fund scholarships for persons whose identity will be determined after an account is opened.

Q. In the case of any account described in subsection P of this section, the requirement that a designated beneficiary be designated when an account is opened does not apply and each person who receives an interest in the account as a scholarship shall be treated as a designated beneficiary with respect to the interest.

R. Any social security numbers, addresses or telephone numbers of individual account holders and designated beneficiaries that come into the possession of the treasurer are confidential, are not public records and shall not be released by the treasurer.

S. An account owner may transfer ownership rights to another eligible account owner.

T. An account owner may designate successor account owners.

U. Through December 31, 2025, on direction of an account owner, up to $15,000 of an account may roll over to an achieving a better life experience act account established pursuant to 26 United States Code section 529A.

§ 15-1876 Higher education expenses; exemption from taxation

Notwithstanding any other law, the amount of any distribution to a designated beneficiary, as defined in section 529(e)(1) of the internal revenue code, from an individual trust account or savings account established under this article is exempt from taxation under title 43 but only to the extent that this income is used to pay qualified higher education expenses of the designated beneficiary.

§ 15-1877 Scholarships and financial aid provisions

A. Any student loan program, student grant program or other financial assistance program established or administered by this state shall treat the balance in an account of which the student is a designated beneficiary as neither an asset of the parent of the designated beneficiary nor as a scholarship, a grant or an asset of the student for determining the student's or parent's income, assets or financial need.

B. Subsection A of this section applies to any state appropriated financial assistance program administered by a college or university in this state, including the financial aid trust fund established by section 15-1642 and the leveraging educational assistance program established by section 1203 of the higher education act amendments of 1998 (P.L. 105-244; 112 Stat. 1581; 20 United States Code section 1001).

C. Subsections A and B of this section do not apply if any of the following conditions exists:

Federal law requires all or a portion of the amount in an account to be taken into consideration in a different manner.
Federal benefits could be lost if all or a portion of the amount in an account is not taken into consideration in a different manner.
A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be taken into consideration.

§ 15-1878 Limits of article

A. This article does not:

Give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner.
Guarantee that a designated beneficiary will be admitted to an eligible educational institution or be allowed to continue enrollment at or graduate from an eligible educational institution located in this state after admission.
Establish state residency for a person merely because the person is a designated beneficiary.
Guarantee that amounts saved pursuant to the plan will be sufficient to cover the qualified higher education expenses of a designated beneficiary.

B. This article does not establish any obligation of this state or any agency or instrumentality of this state to guarantee for the benefit of any account owner, contributor to an account or designated beneficiary any of the following:

The return of any amounts contributed to an account.
The rate of interest or other return on any account.
The payment of interest or other return on any account.
Tuition rates or the cost of related higher education expenditures.

C. Under rules adopted by the treasurer, every contract, application, deposit slip or other similar document that may be used in connection with a contribution to an account shall clearly indicate that the account is not insured by this state and that neither the principal deposited nor the investment return is guaranteed by this state.

§ 15-1879 Annual report

The treasurer shall submit an annual report to the speaker of the house of representatives, the president of the senate and the governor by March 1 that summarizes the treasurer's findings and recommendations concerning the plan established by this article.

Article 8 Fingerprinting of Students

§ 15-1881 Postsecondary health sciences programs; definitions

A. A program in a public or private postsecondary institution that requires clinical training in hospitals or other health care facilities as part of its educational program may require as a condition of acceptance as a health sciences student or as a condition of employment as a clinical assistant the person to obtain a valid fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1 or may require that the card be obtained before placement in clinical training rotations. The program may rescind the admission, remove the person from the educational or training program or terminate the employment of any person who fails to obtain a valid fingerprint clearance card.

B. A person who is required to possess a fingerprint clearance card pursuant to subsection A of this section and who does not possess a fingerprint clearance card before enrollment or employment at the public or private postsecondary institution shall verify to the public or private postsecondary institution, by completing a signed notarized form provided by the public or private postsecondary institution, that the person is not awaiting trial on or has never been convicted of or admitted in open court pursuant to a plea agreement to committing any offense listed in section 41-1758.03, subsection B or C in this state or a similar offense committed in another state or jurisdiction, pending receipt of the fingerprint clearance card.

C. Information contained in a form submitted pursuant to subsection B of this section is confidential.

D. A person who is required to obtain a fingerprint clearance card pursuant to this section may be charged all costs and fees associated with obtaining or renewing the card as prescribed by sections 41-619.53 and 41-1750.

E. For the purposes of this section:

"Clinical assistant" means a participant in a graduate medical or pharmacy education program at a public or private postsecondary institution.
"Health sciences student" means a person who has applied to or is enrolled in a public or private postsecondary institution program of study in medicine, nursing, pharmacy, physical therapy, athletic training, dental hygiene, communication sciences and disorders, speech and hearing sciences or general health sciences.

Article 9 College Course Materials Information

§ 15-1891 College course materials; information; definitions

A. The publisher of course materials shall provide the following written information in accordance with the policies adopted by the Arizona board of regents and the governing board of each community college district to faculty members and any other employees who are in charge of selecting or adopting course materials for a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district in this state whenever the publisher provides a faculty member or employee with information about course materials:

A listing of relevant course materials offered by the publisher and whether each of the course materials are offered in a bundled package or sold separately.
The suggested retail price, the estimated wholesale price or the price that the publisher makes available to the public for the course materials. The publisher may include the time period during which the pricing is applicable.
The copyright dates of the previous edition if the copyright dates do not appear in the course materials.
A summary of the substantive content differences between the current edition of the course materials and the immediate previous edition.

B. A university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district in this state shall notify faculty members and employees of the requirements pursuant to subsection A and adopt policies that instruct a faculty member or employee who is in charge of selecting or adopting course materials to place orders with sufficient lead time to enable the university or community college district bookstore or contract managed bookstore to confirm the availability of the requested materials.

C. On or before January 1, 2009, the Arizona board of regents and the governing board of each community college district shall adopt policies that instruct faculty members or any other employees who are in charge of adopting course materials to make a request for information pursuant to subsection A.

D. No faculty member or employee of a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district in this state shall demand or receive any payment, loan, advance, good or deposit of money present or promised for selecting or purchasing specific course materials required for coursework or instruction, except that the faculty member or employee may receive:

Free review copies, complimentary teacher editions or instructional materials that are not intended to be sold by any faculty, staff or bookstore.
Royalties or other compensation from the sale of course materials that include the faculty member’s own writing or work.
Honoraria for academic peer review of course materials.
Training in the use of course materials and learning technologies.

E. A book buyer or vendor of course materials shall not solicit a faculty member or employee of a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district in this state for the purpose of selling or trading a free sample copy or complimentary teacher editions provided at no charge by a publisher to a faculty member or employee.

F. This section shall not be construed in a manner that violates academic freedom.

G. For the purposes of this section:

"Book buyer" means any person or entity, including a university or community college district bookstore, engaged in the purchase or sale of course materials.
"Bundled" means one or more course materials that are packaged together to be sold as course materials for a single price.
"Complimentary teacher editions" means a book with information that is meant for the exclusive use of faculty members, commonly labeled as an "instructor edition" or "instructor manual" and that contains answers and solutions, test questions and pedagogical techniques.
"Course materials" means any textbook or other instructional tool published for the purpose of classroom instruction and used for or in conjunction with a course in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district in this state.
"Publisher" means any publishing house, firm or company that produces course materials.
"Sample copy" means any book that is the same as the regular student edition.
"Substantive content" means portions of a college textbook, including new chapters, additional eras of time, new themes or new subject matter.
"Written information" means information provided on print material. Written information includes electronic communication or publication on a website.

Article 9.1 Collegiate Athletics

§ 15-1892 Student athlete compensation; postsecondary education institutions; prohibitions; student athlete employment status; public records exemption; confidentiality; injunctive relief; definitions

A. Any postsecondary education institution that competes in an intercollegiate sport shall allow a student athlete to earn compensation from the use of the student athlete's own name, image or likeness.

B. A postsecondary education institution that competes in an intercollegiate sport may:

Compensate a student athlete for the use of the student athlete's own name, image or likeness, except that the postsecondary education institution may not use monies collected from student fees to pay for compensation pursuant to this paragraph.
Provide monies, assets, resources, opportunities, services or other benefits to an institutional marketing associate or third-party entity to incentivize the institutional marketing associate or third-party entity to facilitate opportunities for a student athlete to earn compensation for the use of the student athlete's own name, image or likeness.

C. A postsecondary education institution that competes in an intercollegiate sport may not:

Consider whether a student athlete engages in one or more of the activities described in subsection G, paragraph 1 of this section when rostering or otherwise determining the level of participation that the postsecondary education institution assigns to each student athlete in an intercollegiate athletic program at the postsecondary education institution.
Consider a student athlete's activities described in subsection G, paragraph 1 of this section when determining the student athlete's eligibility to receive or renew a scholarship.
Deny or revoke a student athlete's scholarship, deem a student athlete ineligible for a scholarship or deem a student athlete ineligible to participate in intercollegiate athletics because the student athlete earns compensation for the use of the student athlete's own name, image or likeness.

D. A student athlete who participates in an intercollegiate athletic program at a postsecondary education institution may not:

Execute a contract for the use of the student athlete's own name, image or likeness before disclosing the proposed contract to the postsecondary education institution at which the student athlete participates in an intercollegiate athletic program.
Execute a contract for the use of the student athlete's own name, image or likeness if any provision of the contract conflicts with any of the following:

(a) A provision of the student athlete's team contract.

(b) A provision of any contract executed by the postsecondary education institution.

(d) A provision of the postsecondary education institution's honor code.

Use any of the postsecondary education institution's property to increase the student athlete's opportunities to earn compensation for the use of the student athlete's own name, image or likeness without first obtaining express authorization from the postsecondary education institution. For the purposes of this paragraph, "property" includes facilities, equipment, apparel, uniforms and intellectual property, including logos, indicia, products protected by copyright, registered trademarks and unregistered trademarks.

E. An athlete agent who advises or represents a student athlete in connection with earning compensation from the use of that student athlete's own name, image or likeness shall comply with chapter 13, article 10 of this title.

F. This section does not authorize student athletes to enter into a contract providing compensation for the use of the student athlete's name, image or likeness if doing so either:

Violates the intellectual property rights of any person, including the student athlete's postsecondary education institution.
Conflicts with the student athlete's team contract.

G. A regulator may not do any of the following:

Prevent a student athlete from fully participating in an intercollegiate athletic program because the student athlete does any of the following:

(a) Earns compensation for the use of the student athlete's own name, image or likeness.

(b) Earns compensation for the student athlete's position on the roster of an intercollegiate athletic program team.

Prevent a postsecondary education institution from doing any of the following because a student athlete who participates in an intercollegiate athletic program at the postsecondary education institution engages in one or more of the activities described in paragraph 1 of this subsection:

(a) Becoming a member of any regulator that is a membership organization.

(b) Participating in one or more intercollegiate athletic programs that are sponsored by the regulator.

Prevent a postsecondary education institution from doing any of the following:

(a) Compensating a student athlete as described in paragraph 1, subdivision (a) or (b) of this subsection.

(b) Sharing with student athletes the revenue that the postsecondary education institution receives for the commercial use of the student athlete's own name, image or likeness.

(c) Identifying, creating, negotiating with, facilitating, supporting, engaging with, assisting or otherwise enabling a student athlete to participate in an opportunity to receive compensation for the use of the student athlete's own name, image or likeness. For the purposes of this subdivision, the postsecondary education institution includes any supporting foundation or entity acting on behalf of the postsecondary education institution.

Consider a complaint, initiate an investigation or take any adverse action against a postsecondary education institution, institutional marketing associate or third-party entity for engaging in any conduct authorized under this section.
Take either of the following actions against an individual, third-party entity or student athlete for a violation of the regulator's rules or regulations relating to compensation for the use of a student athlete's own name, image or likeness:

(a) Impose a penalty against a postsecondary education institution or student athlete.

(b) Prevent the postsecondary education institution or student athlete from participating in an intercollegiate athletic program.

H. A postsecondary education institution may not classify a student athlete as an employee of the postsecondary education institution solely on the basis of the student athlete's participation in an athletic program at the postsecondary education institution or the student athlete's receipt of compensation as described in subsection G, paragraph 1, subdivision (a) or (b) of this section or shared revenues as described in subsection G, paragraph 3 of this section.

I. A student athlete may bring a cause of action against a postsecondary education institution or regulator in a court of competent jurisdiction to seek injunctive relief for a violation of this section.

J. A postsecondary education institution, institutional marketing associate or third-party entity may bring a cause of action against a regulator in a court of competent jurisdiction to enjoin the regulator from taking any adverse action against the postsecondary education institution, institutional marketing associate or third-party entity for engaging in any conduct that is authorized pursuant to this section. For the purposes of this subsection, "adverse action" includes considering a complaint, initiating an investigation or imposing a penalty.

K. If a postsecondary education institution determines that a student athlete has violated this section, the postsecondary education institution shall notify the student athlete in writing of the determination. If the student athlete does not correct the violation on or before the tenth day after the student athlete receives notice pursuant to this subsection, the postsecondary education institution may bring a cause of action against the student athlete in a court of competent jurisdiction to seek injunctive relief for a violation of this section.

L. Records relating to a contract or proposed contract for the use of the student athlete's own name, image or likeness are not public records and are exempt from title 39, chapter 1. Information collected by a postsecondary education institution relating to a student athlete's contract to receive compensation for the use of the student athlete's own name, image or likeness is confidential and not subject to public disclosure.

M. An employee of a postsecondary education institution or of a third-party entity is not liable for a student athlete's inability to earn compensation for the use of the student athlete's own name, image or likeness because of a decision or action that routinely occurs in the course of intercollegiate athletic programs.

N. This section does not affect the rights of student athletes under title IX of the education amendments of 1972 (P.L. 92-318; 86 Stat. 235; 20 United States Code sections 1681 through 1688).

O. For the purposes of this section:

"Athlete agent" has the same meaning prescribed in section 15-1762.
"Institutional marketing associate":

(a) Means a third-party entity that enters into an agreement with a postsecondary education institution, postsecondary education institution's intercollegiate athletic program or postsecondary education institution's intercollegiate sports program to either:

(i) Market or promote, or both, the postsecondary education institution, postsecondary education institution's intercollegiate athletic program or postsecondary education institution's intercollegiate sports program.

(ii) Act on behalf of the postsecondary education institution, postsecondary education institution's intercollegiate athletic program or postsecondary education institution's intercollegiate sports program.

(b) Does not include:

(i) A postsecondary education institution.

(ii) A regulator.

(iii) A staff member, employee, officer, director, manager or owner of a postsecondary education institution or regulator.

"Intercollegiate sport":

(a) Means a sport that is played at the collegiate level and for which eligibility requirements for participation by a student athlete are established by a national association for the promotion or regulation of a collegiate athletic program.

(b) Does not include a college intramural sport or a professional sport outside of intercollegiate athletic programs.

"Person" has the same meaning prescribed in section 15-1762.
"Postsecondary education institution" means either:

(a) A university under the jurisdiction of the Arizona board of regents.

(b) A degree-granting institution that is licensed by the state board for private postsecondary education pursuant to title 32, chapter 30, article 2.

"Regulator":

(a) Means any organization with authority over one or more intercollegiate athletic programs.

(b) Includes an athletic conference and association for promoting or regulating collegiate athletic programs.

"Student athlete" has the same meaning prescribed in section 15-1762.
"Third-party entity" means an individual or entity, including an athlete agent, who is not a postsecondary education institution or a regulator and whose purpose includes supporting or benefiting the postsecondary education institution.

Article 10 Voting Information for Postsecondary Students

§ 15-1895 Voting information; postsecondary students

The Arizona board of regents in consultation with the recognized student government of the universities under its jurisdiction and each community college district governing board in consultation with the recognized student government at a community college under its jurisdiction shall adopt a plan to increase student voter registration and voting in elections that includes:

Information about on-campus voter registration and voting opportunities made available in at least one of the following methods:

(a) During new student orientation.

(b) During the issuance of student identification cards.

Voter registration materials at central campus locations and high traffic areas.
Broad dissemination of information regarding:

(a) Voter registration deadlines.

(b) Deadlines for delivering ballots by mail.

Links on institutional and administrative websites that direct students to voter registration websites.
Directions on institutional and administrative websites that detail the voter registration process.
Reasonable accommodations to county election officials for on-campus polling locations.
Encouragement to student government organizations to coordinate activities aimed at increasing voter registration and election turnout.
Policies, consistent with section 16-402, to allow excused absence from classes for the purpose of voting.
In accordance with section 15-1633, policies that prohibit the use of university resources and employees to influence elections.
An emphasis on efficiency and conservation of resources, including reduced use of paper handouts and increased use of electronic communication.

Article 11 Faculty Employment Decisions

§ 15-1896 Faculty employment decisions; religious and political beliefs; definitions

A. In making employment decisions, a university or community college shall take into account a faculty member's competence and appropriate knowledge in the field of that faculty member's expertise in order to foster a learning environment that respects a plurality of methodologies and perspectives. A university or community college shall not make employment decisions on the basis of a faculty member's political or religious beliefs.

B. A university or community college shall not exclude a faculty member from tenure or search committees or hiring committees on the basis of that faculty member's political or religious beliefs.

C. For the purposes of this section:

"Community college" has the same meaning prescribed in section 15-1401.
"University" means a university under the jurisdiction of the Arizona board of regents.

Article 12 Private Postsecondary Institution Peace Officers

§ 15-1897 Private postsecondary institutions; appointment of peace officers; powers; qualifications; liability

A. A private postsecondary institution that offers baccalaureate degrees and that has a dormitory on its campus with full-time residents may appoint one or more persons to be designated by the private postsecondary institution as private postsecondary institution peace officers to aid and supplement the law enforcement agencies of this state in the protection of private postsecondary institution property and the persons and property of private postsecondary institution students, faculty and employees. While on or in private postsecondary institution property and engaged in the conduct of this employment, or while otherwise working in the furtherance of a bona fide criminal investigation and in conjunction and concurrent with any and all law enforcement-related processes, actions or activities, including transporting and booking arrested persons, each appointed private postsecondary institution peace officer possesses and shall exercise all of the law enforcement powers of a peace officer in this state. Private postsecondary institution peace officers have the authority to use county courts and jails for the purpose of booking arrested persons in the county where the private postsecondary institution is located or where the arrest occurs.

B. The authority and jurisdiction of a law enforcement agency in this state is not preempted by a private postsecondary institution peace officer. A private postsecondary institution peace officer must notify the appropriate law enforcement agency in this state after making a felony arrest or beginning an investigation of a felony within the jurisdiction of that agency. A private postsecondary institution peace officer shall have at least the minimum qualifications established pursuant to section 41-1822 and must comply with all rules established by the Arizona peace officer standards and training board. The private postsecondary institution shall reimburse the Arizona peace officer standards and training board for all training expenses incurred by the board for the private postsecondary institution and all audit expenses incurred by the board in reviewing the private postsecondary institution's compliance with peace officer and law enforcement standards that are established by the board. The private postsecondary institution shall file the name of each private postsecondary institution peace officer with the Arizona peace officer standards and training board on the date of the peace officer's appointment. If the proposed private postsecondary institution peace officer meets at least the minimum qualifications established under section 41-1822, the Arizona peace officer standards and training board shall issue the appointee a certificate of authority to act as a peace officer and may thereafter revoke the certificate for good cause.

C. A private postsecondary institution peace officer who is appointed pursuant to this section is not eligible to participate in the public safety personnel retirement system based solely on the service provided to a private postsecondary institution. The private postsecondary institution is not eligible to receive monies from the peace officers' training fund established by section 41-1825. Title 38, chapter 8, article 1 does not apply to a private postsecondary institution peace officer.

D. A private postsecondary institution that appoints a private postsecondary institution peace officer is liable for the private postsecondary institution peace officer's acts that are within the scope of the officer's employment. This state and any political subdivision of this state are not liable for any act or failure to act by any private postsecondary institution peace officer.

E. All records, reports and other documentation made or received by a private postsecondary institution police department are public records and are subject to title 39.

Article 13 College Credit for Military Service

§ 15-1898 Awarding of academic and vocational credits; policies; current and former military members; annual report; definitions

A. Each community college district governing board shall develop policies to require community colleges under the jurisdiction of the board to award academic or vocational credit that a current or former member of the United States military may use toward the pursuit of an associate degree or vocational certification. The number of academic or vocational credits awarded shall be based on all of the following:

The member's length of time of active duty service in the United States military.
Skills, knowledge and competencies the member acquired during service in the United States military as determined by the board in consultation with the department of veterans' services.
If the member provides a transcript, the criteria prescribed in subsection C of this section.

B. The Arizona board of regents shall develop policies to require the universities under the jurisdiction of the board to award academic or vocational credit that a current or former member of the United States military may use toward the pursuit of a baccalaureate degree or vocational certification. The number of academic or vocational credits awarded shall be based on all of the following:

The member's length of time of active duty service in the United States military.
Skills, knowledge and competencies the member acquired during service in the United States military as determined by the board in consultation with the department of veterans' services.
If the member provides a transcript, the criteria prescribed in subsection C of this section.

C. Each university under the jurisdiction of the Arizona board of regents and each community college under the jurisdiction of a community college district governing board shall notify an applicant for admission who is a current or former member of the United States military that the applicant may:

Be eligible to receive academic or vocational credit for the applicant's military training and education.
Submit a transcript of the applicant's military training and education. The university or community college shall both:

(a) Evaluate the transcript and work in conjunction with the department of veterans' services to assess and apply the applicant's education, training and experience received through military duty or service to academic or vocational credits in selected programs of study.

(b) Notify the applicant which credits from the transcript are transferrable.

D. Each university under the jurisdiction of the Arizona board of regents and each community college under the jurisdiction of a community college governing board shall annually report to the governor, the president of the senate and the speaker of the house of representatives the number of applications received and number of applications approved pursuant to this section and the programs of study for which the applications are received and approved. The report shall specifically list each health care program separately.

E. For the purposes of this section:

"Member of the United States military" or "member" means a person who is currently serving or who has served in the United States air force, army, navy, marine corps or coast guard, the national guard or a reserve unit of any of these branches of the United States military. Member of the United States military or member does not include a person who was dishonorably discharged.
"Transcript" includes a joint services transcript prepared for the applicant.

Article 14 Safety Requirements

§ 15-1899 Student identification cards; suicide prevention; contact information required; definition

A. Beginning July 1, 2021, if an institution of higher education issues identification cards to students, the institution of higher education shall include on each new identification card issued to a student at least one of the following:

The telephone number for a national suicide prevention lifeline.
The telephone number for a national network of local crisis centers.
A statement describing how to access a text-based emotional support service.
The telephone number for a local suicide prevention hotline.

B. An institution of higher education may include the information described in subsection A of this section on student identification cards by printing the information on, or by affixing a sticker that contains the information to, the identification cards.

C. For the purposes of this section, "institution of higher education" means both:

A university under the jurisdiction of the Arizona board of regents.
A community college as defined in section 15-1401.

Chapter 15 Interstate Compacts

Article 1 Compact for Education

§ 15-1901 Authority of governor to enter compact; terms of compact for education

The governor is authorized in the name of this state to join with other states legally joining in the compact for education, which compact shall be in the following form:

COMPACT FOR EDUCATION

ARTICLE I-PURPOSE AND POLICY

Section A. It is the purpose of this compact to:

Establish and maintain close cooperation and understanding among executive, legislative, professional educational and lay leadership on a nationwide basis at the state and local levels.
Provide a forum for the discussion, development, crystallization and recommendation of public policy alternatives in the field of education.
Provide a clearinghouse of information on matters relating to educational problems and how they are being met in different places throughout the nation, so that the executive and legislative branches of state government and of local communities may have ready access to the experience and record of the entire country and so that both lay and professional groups in the field of education may have additional avenues for the sharing of experience and the interchange of ideas in the formation of public policy in education.
Facilitate the improvement of state and local educational systems so that they will be able to meet adequate and desirable goals in a society which requires continuous qualitative and quantitative advance in educational opportunities, methods and facilities.

Section B. It is the policy of this compact to encourage and promote local and state initiative in the development, maintenance, improvement and administration of educational systems and institutions in a manner which will accord with the needs and advantages of diversity among localities and states.

Section C. The party states recognize that each has an interest in the quality and quantity of education furnished in each of the other states, as well as in the excellence of its own educational systems and institutions, because of the highly mobile character of individuals within the nation and because the products and services contributing to the health, welfare and economic advancement of each state are supplied in significant part by persons educated in other states.

ARTICLE II-STATE DEFINED

As used in this compact, "state" means a state, territory or possession of the United States, the District of Columbia or the Commonwealth of Puerto Rico.

ARTICLE III-THE COMMISSION

Section A. The education commission of the states, hereinafter called "the commission", is hereby established. The commission shall consist of seven members representing each party state. Four shall be members of the state legislature, two selected by the president of the senate and two selected by the speaker of the house of representatives and serving in such manner as the legislature may determine and three shall be appointed by and serve at the pleasure of the governor, unless the laws of the state otherwise provide. In addition to any other principles or requirements which a state may establish for the appointment and service of its members of the commission, the guiding principle for the composition of the membership on the commission from each party state shall be that the members representing the state shall, by virtue of their training, experience, knowledge or affiliations, be in a position collectively to reflect broadly the interests of the state government, higher education, the state education system, local education and lay and professional public and nonpublic educational leadership. Of the gubernatorial appointees, one shall be the head of a state agency or institution, designated by the governor, having responsibility for one or more programs of public education. In addition to the members of the commission representing the party states, there may be, not to exceed ten, nonvoting commissioners selected by the steering committee for terms of one year. The nonvoting commissioners shall represent leading national organizations of professional educators or persons concerned with educational administration.

Section B. The members of the commission shall be entitled to one vote each on the commission. No action of the commission shall be binding unless taken at a meeting at which a majority of the total number of votes on the commission are cast in favor thereof. Action of the commission shall be only at a meeting at which a majority of the commissioners are present. The commission shall meet at least once a year. In its bylaws, and subject to such directions and limitations as may be contained therein, the commission may delegate the exercise of any of its powers to the steering committee or the executive director, except for the power to approve budgets or requests for appropriations, the power to make policy recommendations pursuant to article IV and adoption of the annual report pursuant to section J of this article.

Section C. The commission shall have a seal.

Section D. The commission shall elect annually, from among its members, a chairman, who shall be a governor, a vice-chairman and a treasurer. The commission shall provide for the appointment of an executive director. The executive director shall serve at the pleasure of the commission and, together with the treasurer and such other personnel as the commission may deem appropriate, shall be bonded in such amount as the commission shall determine. The executive director shall be the secretary.

Section E. Irrespective of the civil service, personnel or other merit system laws of any of the party states, the executive director, subject to the approval of the steering committee, shall appoint, remove or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix the duties and compensation of such personnel. The commission in its bylaws shall provide for the personnel policies and programs of the commission.

Section F. The commission may borrow, accept or contract for the services of personnel from any party jurisdiction, the United States or any subdivision or agency of such governments, or from any agency of two or more of the party jurisdictions or their subdivisions.

Section G. The commission may accept for any of its purposes and functions under this compact any and all donations and grants of money, equipment, supplies, materials and services, conditional or otherwise, from any state, the United States or any other governmental agency or from any person, firm, association, foundation or corporation and may receive, utilize and dispose of the same. Any donation or grant accepted by the commission pursuant to this section or services borrowed pursuant to section F of this article shall be reported in the annual report of the commission. The report shall include the nature, amount and conditions of the donation, grant or services borrowed and the identity of the donor or lender.

Section H. The commission may establish and maintain such facilities as may be necessary for the transacting of its business. The commission may acquire, hold and convey real and personal property and any interest therein.

Section I. The commission shall adopt bylaws for the conduct of its business and shall have the power to amend and rescind such bylaws. The commission shall publish its bylaws in convenient form and shall file a copy of the bylaws and a copy of any amendment to the bylaws with the appropriate agency or officer in each of the party states.

Section J. The commission annually shall make to the governor and legislature of each party state a report covering the activities of the commission for the preceding year. The commission may make such additional reports as it may deem desirable.

ARTICLE IV-POWERS

In addition to authority conferred on the commission by other provisions of the compact, the commission shall have authority to:

Collect, correlate, analyze and interpret information and data concerning educational needs and resources.
Encourage and foster research in all aspects of education, but with special reference to the desirable scope of instruction, organization, administration and instructional methods and standards employed or suitable for employment in public educational systems.
Develop proposals for adequate financing of education as a whole and at each of its many levels.
Conduct or participate in research of the types referred to in this article in any instance where the commission finds that such research is necessary for the advancement of the purposes and policies of this compact, utilizing fully the resources of national associations, regional compact organizations for higher education and other agencies and institutions, both public and private.
Formulate suggested policies and plans for the improvement of public education as a whole, or for any segment of public education, and make recommendations with respect thereto available to the appropriate governmental units, agencies and public officials.
Do such other things as may be necessary or incidental to the administration of any of its authority or functions pursuant to this compact.

ARTICLE V-COOPERATION WITH FEDERAL GOVERNMENT

Section A. If the laws of the United States specifically so provide, or if administrative provision is made therefor within the federal government, the United States may be represented on the commission by not to exceed ten representatives. Any representative or representatives of the United States shall be appointed and serve in such manner as may be provided by or pursuant to federal law and may be drawn from any one or more branches of the federal government, but no such representative shall have a vote on the commission.

Section B. The commission may provide information and make recommendations to any executive or legislative agency or officer of the federal government concerning the common educational policies of the states and may advise with any such agencies or officers concerning any matter of mutual interest.

ARTICLE VI-COMMITTEES

Section A. To assist in the expeditious conduct of its business when the full commission is not meeting, the commission shall elect a steering committee of thirty-two members which, subject to the provisions of this compact and consistent with the policies of the commission, shall be constituted and function as provided in the bylaws of the commission. One-fourth of the voting membership of the steering committee shall consist of governors, one-fourth shall consist of legislators and the remainder shall consist of other members of the commission. A federal representative on the commission may serve with the steering committee, but without vote. The voting members of the steering committee shall serve for terms of two years, except that members elected to the first steering committee of the commission shall be elected as follows: sixteen for one year and sixteen for two years. The chairman, vice-chairman and treasurer of the commission shall be members of the steering committee and, anything in this section to the contrary notwithstanding, shall serve during their continuance in these offices. Vacancies in the steering committee shall not affect its authority to act, but the commission at its next regularly ensuing meeting following the occurrence of any vacancy shall fill it for the unexpired term. No person shall serve more than two terms as a member of the steering committee, provided that service for a partial term of one year or less shall not be counted toward the two term limitation.

Section B. The commission may establish advisory and technical committees composed of state, local and federal officials and private persons to advise it with respect to any one or more of its functions. Any advisory or technical committee may, on request of the states concerned, be established to consider any matter of special concern to two or more of the party states.

Section C. The commission may establish such additional committees as its bylaws may provide.

ARTICLE VII-FINANCE

Section A. The commission shall advise the governor or designated officer or officers of each party state of its budget and estimated expenditures for such period as may be required by the laws of that party state. Each of the commissioner's budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states.

Section B. The total amount of appropriation requests under any budget shall be apportioned among the party states. In making the apportionment, the commission shall devise and employ a formula which takes equitable account of the populations and per capita income levels of the party states.

Section C. The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it pursuant to article III, section G of this compact, provided that the commission takes specific action setting aside such funds prior to incurring an obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it pursuant to article III, section G, the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.

Section D. The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established by its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a qualified public accountant, and the report of the audit shall be included in and become part of the annual reports of the commission.

Section E. The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.

Section F. Nothing contained herein shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

ARTICLE VIII-ELIGIBLE PARTIES; ENTRY INTO AND WITHDRAWAL

Section A. This compact shall have as eligible parties all states, territories and possessions of the United States, the District of Columbia and the Commonwealth of Puerto Rico. In respect of any such jurisdiction not having a governor, the term "governor", as used in this compact, shall mean the closest equivalent official of such jurisdiction.

Section B. Any state or other eligible jurisdiction may enter into this compact, and it shall become binding when it has adopted the compact.

Section C. Any party state may withdraw from this compact by enacting a statute repealing the compact. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

ARTICLE IX-CONSTRUCTION AND SEVERABILITY

The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any state or of the United States, or if the application thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability of the compact to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the state affected as to all severable matters.

Article 2 Interstate Compact on Educational Opportunity for Military Children

§ 15-1911 Authority to enter compact; terms of interstate compact on educational opportunity for military children

ARTICLE I

PURPOSE

It is the purpose of this compact to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents by:

A. Facilitating the timely enrollment of children of military families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of education records from the previous school districts, variations in entrance or age requirements.

B. Facilitating the student placement process through which children of military families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content or assessment.

C. Facilitating the qualification and eligibility for enrollment, educational programs and participation in extracurricular academic, athletic and social activities.

D. Facilitating the on-time graduation of children of military families.

E. Providing for the promulgation and enforcement of administrative rules implementing the provisions of this compact.

F. Providing for the uniform collection and sharing of information between and among member states, schools and military families under this compact.

G. Promoting coordination between this compact and other compacts affecting military children.

H. Promoting flexibility and cooperation between the educational system, parents and the student in order to achieve educational success for the student.

ARTICLE II

DEFINITIONS

As used in this compact, unless the context clearly requires a different construction:

A. "Active duty" means full-time duty status in the active uniformed service of the United States, including members of the national guard and reserve on active duty orders pursuant to 10 United States Code chapters 1209 and 1211.

B. "Children of military families" means school-aged children, enrolled in kindergarten programs or grades one through twelve, in the household of an active duty member.

C. "Compact commissioner" means the voting representative of each compacting state appointed pursuant to article VIII of this compact.

D. "Deployment" means the period one month prior to the service members' departure from their home station on military orders through six months after return to their home station.

E. "Educational records" means those official records, files and data directly related to a student and maintained by the school or local education agency, including records encompassing all the material kept in the student's cumulative folder such as general identifying data, records of attendance and of academic work completed, records of achievement and results of evaluative tests, health data, disciplinary status, test protocols and individualized education programs.

F. "Extracurricular activities" means a voluntary activity sponsored by the school or local education agency or an organization sanctioned by the local education agency. Extracurricular activities include preparation for and involvement in public performances, contests, athletic competitions, demonstrations, displays and club activities.

G. "Interstate commission on educational opportunity for military children" means the commission that is created under article IX of this compact, which is generally referred to as interstate commission.

H. "Local education agency" means a public authority legally constituted by the state as an administrative agency to provide control of and direction for kindergarten programs and grades one through twelve in public educational institutions.

I. "Member state" means a state that has enacted this compact.

J. "Military installation" means a base, camp, post, station, yard, center, homeport facility for any ship or other activity under the jurisdiction of the department of defense, including any leased facility, that is located within any of the several states, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Northern Marianas Islands and any other United States territory. Military installation does not include any facility used primarily for civil works, rivers and harbors projects, or flood control projects.

K. "Nonmember state" means a state that has not enacted this compact.

L. "Receiving state" means the state to which a child of a military family is sent, brought or caused to be sent or brought.

M. "Rule" means a written statement by the interstate commission promulgated pursuant to article XII of this compact that is of general applicability, that implements, interprets or prescribes a policy or provision of the compact, or an organizational, procedural or practice requirement of the interstate commission, and that has the force and effect of statutory law in a member state, and includes the amendment, repeal or suspension of an existing rule.

N. "Sending state" means the state from which a child of a military family is sent, brought or caused to be sent or brought.

O. "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Northern Marianas Islands and any other United States territory.

P. "Student" means the child of a military family for whom the local education agency receives public funding and who is formally enrolled in a kindergarten program or grades one through twelve.

Q. "Transition" means the formal and physical process of transferring from school to school or the period of time in which a student moves from one school in the sending state to another school in the receiving state.

R. "Uniformed services" means the army, navy, air force, marine corps and coast guard as well as the commissioned corps of the national oceanic and atmospheric administration, and public health services.

S. "Veteran" means a person who served in the uniformed services and who was discharged or released therefrom under conditions other than dishonorable.

ARTICLE III

APPLICABILITY

A. Except as otherwise provided in section B, this compact shall apply to the children of:

Active duty members of the uniformed services as defined in this compact, including members of the national guard and reserve on active duty orders pursuant to 10 United States Code chapters 1209 and 1211.
Members or veterans of the uniformed services who are severely injured and medically discharged or retired for a period of one year after medical discharge or retirement.
Members of the uniformed services who die on active duty or as a result of injuries sustained on active duty for a period of one year after death.

B. The provisions of this interstate compact shall only apply to local education agencies as defined in this compact.

C. The provisions of this compact shall not apply to the children of:

Inactive members of the national guard and military reserves.
Members of the uniformed services now retired, except as provided in section A.
Veterans of the uniformed services, except as provided in section A.
Other United States department of defense personnel and other federal agency civilian and contract employees not defined as active duty members of the uniformed services.

ARTICLE IV

EDUCATIONAL RECORDS AND ENROLLMENT

A. Unofficial or hand-carried education records – In the event that official education records cannot be released to the parents for the purpose of transfer, the custodian of the records in the sending state shall prepare and furnish to the parent a complete set of unofficial educational records containing uniform information as determined by the interstate commission. On receipt of the unofficial education records by a school in the receiving state, the school shall enroll and appropriately place the student based on the information provided in the unofficial records pending validation by the official records, as quickly as possible.

B. Official education records and transcripts - Simultaneous with the enrollment and conditional placement of the student, the school in the receiving state shall request the student's official education record from the school in the sending state. On receipt of this request, the school in the sending state will process and furnish the official education records to the school in the receiving state within ten days or within such time as is reasonably determined under the rules promulgated by the interstate commission.

C. Immunizations – Compacting states shall give thirty days from the date of enrollment or such time as is reasonably determined under the rules promulgated by the interstate commission for students to obtain any immunizations required by the receiving state. For a series of immunizations, initial vaccinations must be obtained within thirty days or within such time as is reasonably determined under the rules promulgated by the interstate commission.

D. Kindergarten and first grade entrance age – Students shall be allowed to continue their enrollment at grade level in the receiving state commensurate with their grade level, including kindergarten, from a local education agency in the sending state at the time of transition, regardless of age. A student who has satisfactorily completed the prerequisite grade level in the local education agency in the sending state shall be eligible for enrollment in the next highest grade level in the receiving state, regardless of age. A student transferring after the start of the school year in the receiving state shall enter the school in the receiving state on the student's validated level from an accredited school in the sending state.

ARTICLE V

PLACEMENT AND ATTENDANCE

A. Course placement - When the student transfers before or during the school year, the receiving state school shall initially honor placement of the student in educational courses based on the student's enrollment in the sending state school or educational assessments conducted at the school in the sending state, or both, if the courses are offered. Course placement includes honors, international baccalaureate, advanced placement, vocational, technical and career pathways courses. Continuing the student's academic program from the previous school and promoting placement in academically and career challenging courses should be paramount when considering placement. This does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement and continued enrollment of the student in the courses.

B. Educational program placement – The receiving state school shall initially honor placement of the student in educational programs based on current educational assessments conducted at the school in the sending state or participation and placement in like programs in the sending state. Such programs include gifted and talented programs and English as a second language. This does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement of the student.

C. Special education services – In compliance with the federal requirements of the individuals with disabilities education act (20 United States Code section 1400), the receiving state shall initially provide comparable services to a student with disabilities based on the student's current individualized education program. In compliance with the requirements of section 504 of the rehabilitation act (29 United States Code section 794) and with title II of the Americans with disabilities act (42 United States Code sections 12131 through 12165), the receiving state shall make reasonable accommodations and modifications to address the needs of incoming students with disabilities, subject to an existing 504 or title II plan, to provide the student with equal access to education. This does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement of the student.

D. Placement flexibility – Local education agency administrative officials shall have flexibility in waiving course or program prerequisites, or other preconditions for placement in courses or programs offered under the jurisdiction of the local education agency.

E. Absence as related to deployment activities – A student whose parent or legal guardian is an active duty member of the uniformed services, as defined by this compact, and has been called to duty for, is on leave from or has immediately returned from deployment to a combat zone or combat support posting shall be granted additional excused absences at the discretion of the local education agency superintendent to visit with the student's parent or legal guardian relative to such leave or deployment of the parent or guardian.

ARTICLE VI

ELIGIBILITY

A. Eligibility for enrollment.

Special power of attorney, relative to the guardianship of a child of a military family and executed under applicable law, shall be sufficient for the purposes of enrollment and all other actions requiring parental participation and consent.
A local education agency shall be prohibited from charging local tuition to a transitioning military child placed in the care of a noncustodial parent or other person standing in loco parentis who lives in a jurisdiction other than that of the custodial parent.
A transitioning military child, placed in the care of a noncustodial parent or other person standing in loco parentis who lives in a jurisdiction other than that of the custodial parent, may continue to attend the school in which the child was enrolled while residing with the custodial parent.

B. Eligibility for extracurricular participation - State and local education agencies shall facilitate the opportunity for transitioning military children's inclusion in extracurricular activities, regardless of application deadlines, to the extent they are otherwise qualified.

ARTICLE VII

GRADUATION

In order to facilitate the on-time graduation of children of military families states and local education agencies shall incorporate the following procedures:

A. Waiver requirements – Local education agency administrative officials shall waive specific courses required for graduation if similar coursework has been satisfactorily completed in another local education agency or shall provide reasonable justification for denial. If a waiver is not granted to a student who would qualify to graduate from the sending school, the local education agency shall provide an alternative means of acquiring required coursework so that graduation may occur on time.

B. Exit exams - States shall accept exit or end-of-course exams required for graduation from the sending state, national norm referenced achievement tests or alternative testing, in lieu of testing requirements for graduation in the receiving state. If these alternatives cannot be accommodated by the receiving state for a student transferring in the student's senior year, then the provisions of article VII, section C shall apply.

C. Transfers during senior year – If a military student transferring at the beginning or during the student's senior year is ineligible to graduate from the receiving local education agency after all alternatives have been considered, the sending and receiving local education agencies shall ensure the receipt of a diploma from the sending local education agency, if the student meets the graduation requirements of the sending local education agency. If one of the states in question is not a member of this compact, the member state shall use best efforts to facilitate the on-time graduation of the student in accordance with sections A and B.

ARTICLE VIII

STATE COORDINATION

A. Each member state, through the creation of a state council or use of an existing body or board, shall provide for the coordination among its agencies of government, local education agencies and military installations concerning the state's participation in, and compliance with, this compact and interstate commission activities. While each member state may determine the membership of its own state council, its membership must include at least the state superintendent of education, a superintendent of a school district with a high concentration of military children, a representative from a military installation, one representative each from the legislative and executive branches of government and other offices and stakeholder groups the state council deems appropriate. A member state that does not have a school district deemed to contain a high concentration of military children may appoint a superintendent from another school district to represent local education agencies on the state council.

B. The state council of each member state shall appoint or designate a military family education liaison to assist military families and the state in facilitating the implementation of this compact.

C. The compact commissioner responsible for the administration and management of the state's participation in the compact shall be appointed by the governor or as otherwise determined by each member state.

D. The compact commissioner and the military family education liaison designated herein shall be ex-officio members of the state council, unless either is already a full voting member of the state council.

ARTICLE IX

INTERSTATE COMMISSION ON EDUCATIONAL

OPPORTUNITY FOR MILITARY CHILDREN

The member states hereby create the interstate commission on educational opportunity for military children. The activities of the interstate commission are the formation of public policy and are a discretionary state function. The interstate commission shall:

A. Be a body corporate and joint agency of the member states and shall have all the responsibilities, powers and duties set forth herein, and such additional powers as may be conferred on it by a subsequent concurrent action of the respective legislatures of the member states in accordance with the terms of this compact.

B. Consist of one interstate commission voting representative from each member state who shall be that state's compact commissioner.

Each member state represented at a meeting of the interstate commission is entitled to one vote.
A majority of the total member states shall constitute a quorum for the transaction of business, unless a larger quorum is required by the bylaws of the interstate commission.
A representative shall not delegate a vote to another member state. If the compact commissioner is unable to attend a meeting of the interstate commission, the governor or state council may delegate voting authority to another person from that state for a specified meeting.
The bylaws may provide for meetings of the interstate commission to be conducted by telecommunication or electronic communication.

C. Consist of ex-officio, nonvoting representatives who are members of interested organizations. Such ex-officio members, as defined in the bylaws, may include members of the representative organizations of military family advocates, local education agency officials, parent and teacher groups, the United States department of defense, the education commission of the states, the interstate agreement on the qualification of educational personnel and other interstate compacts affecting the education of children of military members.

D. Meet at least once each calendar year. The chairperson may call additional meetings and, on the request of a simple majority of the member states, shall call additional meetings.

E. Establish an executive committee, whose members shall include the officers of the interstate commission and such other members of the interstate commission as determined by the bylaws. Members of the executive committee shall serve a one year term. Members of the executive committee shall be entitled to one vote each. The executive committee shall have the power to act on behalf of the interstate commission, with the exception of rule making, during periods when the interstate commission is not in session. The executive committee shall oversee the day-to-day activities of the administration of this compact, including enforcement and compliance with the provisions of this compact, its bylaws and rules, and other such duties as deemed necessary. The United States department of defense shall serve as an ex-officio, nonvoting member of the executive committee.

F. Establish bylaws and rules that provide for conditions and procedures under which the interstate commission shall make its information and official records available to the public for inspection or copying. The interstate commission may exempt from disclosure information or official records to the extent they would adversely affect personal privacy rights or proprietary interests.

G. Public notice shall be given by the interstate commission of all meetings and all meetings shall be open to the public, except as set forth in the rules or as otherwise provided in this compact. The interstate commission and its committees may close a meeting, or portion thereof, if it determines by a two-thirds vote that an open meeting would be likely to either:

Relate solely to the interstate commission's internal personnel practices and procedures.
Disclose matters specifically exempted from disclosure by federal and state statute.
Disclose trade secrets or commercial or financial information that is privileged or confidential.
Involve accusing a person of a crime, or formally censuring a person.
Disclose information of a personal nature if disclosure would constitute a clearly unwarranted invasion of personal privacy.
Disclose investigative records compiled for law enforcement purposes.
Specifically relate to the interstate commission's participation in a civil action or other legal proceeding.

H. For a meeting, or portion of a meeting, closed pursuant to this provision, the interstate commission's legal counsel or designee shall certify that the meeting may be closed and shall reference each relevant exemptible provision. The interstate commission shall keep minutes which shall fully and clearly describe all matters discussed in a meeting and shall provide a full and accurate summary of actions taken, and the reasons therefore, including a description of the views expressed and the record of a roll call vote. All documents considered in connection with an action shall be identified in such minutes. All minutes and documents of a closed meeting shall remain under seal, subject to release by a majority vote of the interstate commission.

I. The interstate commission shall collect standardized data concerning the educational transition of the children of military families under this compact as directed through its rules, which shall specify the data to be collected, the means of collection and data exchange and reporting requirements. Such methods of data collection, exchange and reporting, insofar as is reasonably possible, shall conform to current technology and coordinate its information functions with the appropriate custodian of records as identified in the bylaws and rules.

J. The interstate commission shall create a process that permits military officials, education officials and parents to inform the interstate commission if and when there are alleged violations of the compact or its rules or when issues subject to the jurisdiction of the compact or its rules are not addressed by the state or local education agency. This section shall not be construed to create a private right of action against the interstate commission or any member state.

ARTICLE X

POWERS AND DUTIES OF THE INTERSTATE COMMISSION

The interstate commission shall have the following powers:

A. To provide for dispute resolution among member states.

B. To promulgate rules and take all necessary actions to effect the goals, purposes and obligations as enumerated in this compact. The rules shall have the force and effect of statutory law and shall be binding in the compact states to the extent and in the manner provided in this compact.

C. To issue, on request of a member state, advisory opinions concerning the meaning or interpretation of the interstate compact, its bylaws, rules and actions.

D. To enforce compliance with the compact provisions, the rules promulgated by the interstate commission and the bylaws, using all necessary and proper means, including the use of judicial process.

E. To establish and maintain offices which shall be located within one or more of the member states.

F. To purchase and maintain insurance and bonds.

G. To borrow, accept, hire or contract for services of personnel.

H. To establish and appoint committees including an executive committee as required by article IX, section E, which shall have the power to act on behalf of the interstate commission in carrying out its powers and duties hereunder.

I. To elect or appoint such officers, attorneys, employees, agents or consultants, and to fix their compensation, define their duties and determine their qualifications, and to establish the interstate commission's personnel policies and programs relating to conflicts of interest, rates of compensation and qualifications of personnel.

J. To accept any and all donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of them.

K. To lease, purchase, accept contributions or donations of, or otherwise to own, hold, improve or use any property, real, personal or mixed.

L. To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed.

M. To establish a budget and make expenditures.

N. To adopt a seal and bylaws governing the management and operation of the interstate commission.

O. To report annually to the legislatures, governors, judiciary and state councils of the member states concerning the activities of the interstate commission during the preceding year. Such reports shall also include any recommendations that may have been adopted by the interstate commission.

P. To coordinate education, training and public awareness regarding the compact and its implementation and operation for officials and parents involved in such activity.

Q. To establish uniform standards for the reporting, collecting and exchanging of data.

R. To maintain corporate books and records in accordance with the bylaws.

S. To perform such functions as may be necessary or appropriate to achieve the purposes of this compact.

T. To provide for the uniform collection and sharing of information between and among member states, schools and military families under this compact.

ARTICLE XI

ORGANIZATION AND OPERATION OF THE INTERSTATE COMMISSION

A. The interstate commission, by a majority of the members present and voting, within twelve months after the first interstate commission meeting, shall adopt bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes of the compact, including:

Establishing the fiscal year of the interstate commission.
Establishing an executive committee, and such other committees as may be necessary.
Providing for the establishment of committees and for governing any general or specific delegation of authority or function of the interstate commission.
Providing reasonable procedures for calling and conducting meetings of the interstate commission, and ensuring reasonable notice of each such meeting.
Establishing the titles and responsibilities of the officers and staff of the interstate commission.
Providing a mechanism for concluding the operations of the interstate commission and the return of surplus monies that may exist on the termination of the compact after the payment and reserving of all of its debts and obligations.
Providing start up rules for initial administration of the compact.

B. The interstate commission, by a majority of the members, shall elect annually from among its members a chairperson, a vice-chairperson and a treasurer, each of whom shall have such authority and duties as may be specified in the bylaws. The chairperson or, in the chairperson's absence or disability, the vice-chairperson, shall preside at all meetings of the interstate commission. The officers so elected shall serve without compensation or remuneration from the interstate commission, provided that, subject to the availability of budgeted funds, the officers shall be reimbursed for ordinary and necessary costs and expenses incurred by them in the performance of their responsibilities as officers of the interstate commission.

C. Executive committee, officers and personnel.

The executive committee shall have such authority and duties as may be set forth in the bylaws, including but not limited to:

(a) Managing the affairs of the interstate commission in a manner consistent with the bylaws and purposes of the interstate commission.

(b) Overseeing an organizational structure within, and appropriate procedures for the interstate commission to provide for the creation of rules, operating procedures and administrative and technical support functions.

(c) Planning, implementing and coordinating communications and activities with other state, federal and local government organizations in order to advance the goals of the interstate commission.

The executive committee, subject to the approval of the interstate commission, may appoint or retain an executive director for such period, on such terms and conditions and for such compensation as the interstate commission may deem appropriate. The executive director shall serve as secretary to the interstate commission, but shall not be a member of the interstate commission. The executive director shall hire and supervise such other persons as may be authorized by the interstate commission.

D. The interstate commission's executive director and employees shall be immune from suit and liability, either personally or in their official capacity, for a claim for damage to or loss of property or personal injury or other civil liability caused or arising out of or relating to an actual or alleged act, error or omission that occurred, or that such person had a reasonable basis for believing occurred, within the scope of interstate commission employment, duties or responsibilities, provided, that such person shall not be protected from suit or liability for damage, loss, injury or liability caused by the intentional or wilful and wanton misconduct of such person.

The liability of the interstate commission's executive director and employees or interstate commission representatives, acting within the scope of their employment or duties for acts, errors or omissions occurring within their state may not exceed the limits of liability set forth under the constitution and laws of that state for state officials, employees and agents. The interstate commission is considered to be an instrumentality of the states for the purposes of any such action. Nothing in this subsection shall be construed to protect such person from suit or liability for damage, loss, injury or liability caused by the intentional or wilful and wanton misconduct of such person.
The interstate commission shall defend the executive director and its employees and, subject to the approval of the attorney general or other appropriate legal counsel of the member state represented by an interstate commission representative, shall defend such interstate commission representative in any civil action seeking to impose liability arising out of an actual or alleged act, error or omission that occurred within the scope of interstate commission employment, duties or responsibilities, or that the defendant had a reasonable basis for believing occurred within the scope of interstate commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from intentional or wilful and wanton misconduct on the part of such person.
To the extent not covered by the state involved, the member state or the interstate commission, and the representatives or employees of the interstate commission shall be held harmless in the amount of a settlement or judgment, including attorney fees and costs, obtained against such persons arising out of an actual or alleged act, error or omission that occurred within the scope of interstate commission employment, duties or responsibilities, or that such persons had a reasonable basis for believing occurred within the scope of interstate commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from intentional or wilful and wanton misconduct on the part of such persons.

ARTICLE XII

RULE MAKING FUNCTIONS OF THE INTERSTATE COMMISSION

A. Rule making authority - The interstate commission shall promulgate reasonable rules in order to effectively and efficiently achieve the purposes of this compact. Notwithstanding the foregoing, if the interstate commission exercises its rule making authority in a manner that is beyond the scope of the purposes of this act, or the powers granted hereunder, such an action by the interstate commission shall be invalid and have no force or effect.

B. Rule making procedure - Rules shall be made pursuant to a rule making process that substantially conforms to the model state administrative procedure act of 1981, uniform laws annotated, vol. 15, p.1 (2000), as amended, as may be appropriate to the operations of the interstate commission.

C. Not later than thirty days after a rule is promulgated, any person may file a petition for judicial review of the rule, provided that the filing of such a petition shall not stay or otherwise prevent the rule from becoming effective unless the court finds that the petitioner has a substantial likelihood of success. The court shall give deference to the actions of the interstate commission consistent with applicable law and shall not find the rule to be unlawful if the rule represents a reasonable exercise of the interstate commission's authority.

D. If a majority of the legislatures of the compacting states reject a rule by enactment of a statute or resolution in the same manner used to adopt the compact, such rule shall have no further force and effect in any compacting state.

ARTICLE XIII

OVERSIGHT, ENFORCEMENT AND DISPUTE RESOLUTION

A. Oversight.

The executive, legislative and judicial branches of state government in each member state shall enforce this compact and shall take all actions necessary and appropriate to effectuate the compact's purposes and intent. The provisions of this compact and the rules promulgated hereunder shall have standing as statutory law.
All courts shall take judicial notice of the compact and the rules in any judicial or administrative proceeding in a member state pertaining to the subject matter of this compact that may affect the powers, responsibilities or actions of the interstate commission.
The interstate commission shall be entitled to receive all service of process in any such proceeding, and shall have standing to intervene in the proceeding for all purposes. Failure to provide service of process to the interstate commission shall render a judgment or order void as to the interstate commission, this compact or promulgated rules.

B. Default, technical assistance, suspension and termination - If the interstate commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact, or the bylaws or promulgated rules, the interstate commission shall:

Provide written notice to the defaulting state and other member states of the nature of the default, the means of curing the default and any action taken by the interstate commission. The interstate commission shall specify the conditions by which the defaulting state must cure its default.
Provide remedial training and specific technical assistance regarding the default.
If the defaulting state fails to cure the default, the defaulting state shall be terminated from the compact on an affirmative vote of a majority of the member states and all rights, privileges and benefits conferred by this compact shall be terminated from the effective date of termination. A cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of the default.
Suspension or termination of membership in the compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to suspend or terminate shall be given by the interstate commission to the governor, the majority and minority leaders of the defaulting state's legislature and each of the member states.
The state that has been suspended or terminated is responsible for all assessments, obligations and liabilities incurred through the effective date of suspension or termination, including obligations, the performance of which extends beyond the effective date of suspension or termination.
The interstate commission shall not bear any costs relating to any state that has been found to be in default or that has been suspended or terminated from the compact, unless otherwise mutually agreed on in writing between the interstate commission and the defaulting state.
The defaulting state may appeal the action of the interstate commission by petitioning the United States district court for the District of Columbia or the federal district where the interstate commission has its principal offices. The prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

C. Dispute resolution.

The interstate commission, on the request of a member state, shall attempt to resolve disputes that are subject to the compact and that may arise among member states and between member and nonmember states.
The interstate commission shall promulgate a rule providing for both mediation and binding dispute resolution for disputes as appropriate.

D. Enforcement.

The interstate commission, in the reasonable exercise of its discretion, shall enforce the provisions and rules of this compact.
The interstate commission, by majority vote of the members, may initiate legal action in the United States district court for the District of Columbia or, at the discretion of the interstate commission, in the federal district where the interstate commission has its principal offices, to enforce compliance with the provisions of this compact and its promulgated rules and bylaws against a member state in default. The relief sought may include both injunctive relief and damages. If judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation including reasonable attorney's fees.
The remedies herein shall not be the exclusive remedies of the interstate commission. The interstate commission may avail itself of any other remedies available under state law or the regulation of a profession.

ARTICLE XIV

FINANCING OF THE INTERSTATE COMMISSION

A. The interstate commission shall pay, or provide for the payment of, the reasonable expenses of its establishment, organization and ongoing activities.

B. The interstate commission may levy on and collect an annual assessment from each member state to cover the cost of the operations and activities of the interstate commission and its staff, which must be in a total amount sufficient to cover the interstate commission's annual budget as approved each year. The aggregate annual assessment amount shall be allocated based on a formula to be determined by the interstate commission, which shall promulgate a rule binding on all member states.

C. The interstate commission shall not incur obligations of any kind prior to securing the funds adequate to meet the same, nor shall the interstate commission pledge the credit of any of the member states, except by and with the authority of the member state.

D. The interstate commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the interstate commission shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the interstate commission shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the interstate commission.

ARTICLE XV

MEMBER STATES, EFFECTIVE DATE AND AMENDMENT

A. Any state is eligible to become a member state.

B. This compact shall become effective and binding on legislative enactment of the compact into law by at least ten of the states. The effective date shall be no earlier than December 1, 2007. Thereafter it shall become effective and binding as to any other member state on enactment of the compact into law by that state. The governors of nonmember states or their designees shall be invited to participate in the activities of the interstate commission on a nonvoting basis prior to adoption of the compact by all states.

C. The interstate commission may propose amendments to the compact for enactment by the member states. No amendment shall become effective and binding on the interstate commission and the member states unless and until it is enacted into law by unanimous consent of the member states.

ARTICLE XVI

WITHDRAWAL AND DISSOLUTION

A. Withdrawal.

Once effective, the compact shall continue in force and remain binding on each and every member state, provided that a member state may withdraw from the compact specifically repealing the statute that enacted the compact into law.
Withdrawal from this compact shall be by the enactment of a statute repealing the same, but shall not take effect until one year after the effective date of such statute and until written notice of the withdrawal has been given by the withdrawing state to the governor of each other member jurisdiction.
The withdrawing state shall immediately notify the chairperson of the interstate commission in writing on the introduction of legislation repealing this compact in the withdrawing state. The interstate commission shall notify the other member states of the withdrawing state's intent to withdraw within sixty days of its receipt thereof.
The withdrawing state is responsible for all assessments, obligations and liabilities incurred through the effective date of withdrawal, including obligations, the performance of which extend beyond the effective date of withdrawal.
Reinstatement following withdrawal of a member state shall occur on the withdrawing state reenacting the compact or on such later date as determined by the interstate commission.

B. Dissolution of compact.

This compact shall dissolve effective on the date of the withdrawal or default of the member state which reduces the membership in the compact to one member state.
On the dissolution of this compact, the compact becomes null and void and shall be of no further force or effect, and the business and affairs of the interstate commission shall be concluded and surplus funds shall be distributed in accordance with the bylaws.

ARTICLE XVII

SEVERABILITY AND CONSTRUCTION

A. The provisions of this compact shall be severable, and if any phrase, clause, sentence or provision is deemed unenforceable, the remaining provisions of the compact shall be enforceable.

B. The provisions of this compact shall be liberally construed to effectuate its purposes.

C. Nothing in this compact shall be construed to prohibit the applicability of other interstate compacts to which the states are members.

ARTICLE XVIII

BINDING EFFECT OF COMPACT AND OTHER LAWS

A. Other laws.

Nothing herein prevents the enforcement of any other law of a member state that is not inconsistent with this compact.
All member states' laws conflicting with this compact are superseded to the extent of the conflict.

B. Binding effect of the compact.

All lawful actions of the interstate commission, including all rules and bylaws promulgated by the interstate commission, are binding upon the member states.
All agreements between the interstate commission and the member states are binding in accordance with their terms.
If any provision of this compact exceeds the constitutional limits imposed on the legislature of any member state, such provision shall be ineffective to the extent of the conflict with the constitutional provision in question in that member state.

Chapter 18 Hazing Prevention Policies

Article 1 General Provisions

§ 15-2301 Hazing prevention policies; definitions

A. Every public educational institution in this state shall adopt, post and enforce a hazing prevention policy. The hazing prevention policy shall be printed in every student handbook for distribution to parents and students. Each hazing prevention policy shall include:

A definition of hazing pursuant to subsection C, paragraph 2 of this section.
A statement that hazing is prohibited.
A statement that any solicitation to engage in hazing is prohibited.
A statement that aiding and abetting another person who is engaged in hazing is prohibited.
A statement that it is not a defense to a violation of the hazing prevention policy if the hazing victim consented to or acquiesced in the hazing activity.
A statement that all students, teachers and staff shall take reasonable measures within the scope of their individual authority to prevent violations of the hazing prevention policy.
A description of the procedures for students, teachers and staff to report violations of the hazing prevention policy and the procedures to file a complaint for a violation of the hazing prevention policy.
Procedures to investigate reports of violations of the hazing prevention policy and to investigate complaints for a violation of the hazing prevention policy.
A description of the circumstances under which a violation of the hazing prevention policy shall be reported to the appropriate law enforcement agency.
A description of appropriate penalties, sanctions and appeals mechanisms for persons and organizations that violate the hazing prevention policy. The sanctions shall include the revocation or suspension of an organization's permission to conduct operations at the educational institution if the organization knowingly allowed, authorized or condoned the hazing activity. Any teacher or staff who knowingly allowed, authorized or condoned the hazing activity is subject to disciplinary action by the educational institution.

B. Violations of hazing prevention policies adopted pursuant to this section do not include either of the following:

Customary athletic events, contests or competitions that are sponsored by an educational institution.
Any activity or conduct that furthers the goals of a legitimate educational curriculum, a legitimate extracurricular program or a legitimate military training program.

C. For purposes of this section:

"Educational institution" means any of the following:

(a) A public school that provides instruction to pupils in any combination of kindergarten programs and grades one through twelve.

(b) A public community college or a vocational education program that provides academic instruction or training not exceeding two years' duration in the arts, sciences and humanities beyond the twelfth grade of the public or private high school course of study.

(c) Any public college or university that provides academic instruction beyond the twelfth grade of the public or private high school course of study and that offers any combination of baccalaureate, master's or doctoral degrees to students that complete specified academic requirements.

"Hazing" means an act in violation of section 13-1215 or 13-1216.
"Organization" means an athletic team, association, order, society, corps, cooperative, club or other similar group that is affiliated with an educational institution and whose membership consists primarily of students enrolled at that educational institution.
"Student" means any person who is enrolled at an educational institution, any person who has been promoted or accepted for enrollment at an educational institution or any person who intends to enroll at or be promoted to an educational institution within the next twelve calendar months. The hazing prevention policy of the educational institution where a person has been accepted for or promoted to enrollment, or where a person intends to enroll or be promoted to within the next twelve calendar months, shall be the effective policy. A person who meets the definition of a student for purposes of this paragraph shall continue to be defined as a student for purposes of this section until the person graduates, transfers, is promoted or withdraws from the educational institution.

Chapter 19 Arizona Empowerment Scholarship Accounts

Article 1 General Provisions

§ 15-2401 Definitions

In this chapter, unless the context otherwise requires:

"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, 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.
"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.
"Department" means the department of education.
"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.
"Parent" means a resident of this state who is the parent, stepparent or legal guardian of a qualified student.
"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.
"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 J 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 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 is currently eligible to attend kindergarten and resides within the attendance boundary of a school that 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. A child who meets the requirements of this item and who meets the income eligibility requirements for free and reduced-price lunches under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) is not subject to subdivision (b) of this paragraph.

(v) A previous recipient of a scholarship issued pursuant to 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 was killed in the line of duty. 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.

(b) And, except as provided in subdivision (a), items (iv) and (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 forty-five 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. Kindergarten students who are enrolled in Arizona online instruction must receive one hundred hours of logged instruction to be eligible pursuant to this item. First, second and third grade students who are enrolled in Arizona online instruction must receive two 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 two hundred fifty 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 two hundred seventy-five hours of logged instruction to be eligible pursuant to this item. High school students who are enrolled in Arizona online instruction must receive two hundred fifty 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 before attending a qualified school.

(v) Attended a nonpublic school for pupils with disabilities in the prior year if placement at the school was approved by the department of education and contracted for by a public school district.

(vi) 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. For the purposes of this item, a child is eligible to enroll in a kindergarten program if the child is at least five years of age on January 1 of the current school year, is under seven years of age, has not already completed a kindergarten program and is not enrolled in grade one of a private or governmental school in the current year.

(vii) 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.

"Treasurer" means the office of the state treasurer.

§ 15-2401.01 Definition of qualified student for Arizona empowerment scholarship accounts; expansion

Notwithstanding section 15-2401, beginning in the 2022-2023 school year, in this chapter, unless the context otherwise requires, "qualified student" includes a resident of this state who both:

Is eligible to enroll in a public school in this state in any of the following:

(a) A preschool program for children with disabilities.

(b) A kindergarten program.

Does not otherwise qualify for an Arizona empowerment scholarship account pursuant to this chapter.

§ 15-2402 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:

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 G.
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:

(a) 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.

(b) Require the qualified student to withdraw from a school district or charter school before enrolling for an Arizona empowerment scholarship account if the qualified student withdraws from the school district or charter school before receiving any monies in the qualified student's Arizona empowerment scholarship account.

(c) Prevent the qualified student from applying in advance for an Arizona empowerment scholarship account to be funded beginning the following school year, subject to section 15-2403, subsection H.

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.
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 that requires all teaching staff and personnel who have unsupervised contact with students to be fingerprinted.

(b) Textbooks required by a qualified school.

(c) If the qualified student meets any of the criteria specified in section 15-2401, paragraph 7, 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 J, 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 who is not subject to disciplinary action by the state board of education for immoral or unprofessional conduct pursuant to section 15-505 or 15-534.04 or a facility that is accredited by a state, regional or national accrediting organization. The department shall ensure any individual who provides tutoring or teaching services to one or more qualified students pursuant to this subdivision is not subject to disciplinary action by the state board of education. The department shall also remove any individual who is subject to disciplinary action by the state board of education from all platforms that the department provides to parents and qualified students for the purchase of goods or educational services using account monies.

(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, 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.

(p) Computer hardware and technological devices primarily used for an educational purpose. For the purposes of this subdivision, "computer hardware and technological devices":

(i) Includes calculators, personal computers, laptops, tablet devices, microscopes, telescopes and printers.

(ii) Does not include entertainment and other primarily noneducational devices, including televisions, telephones, video game consoles and accessories, and home theatre and audio equipment.

Not file an affidavit of intent to homeschool pursuant to section 15-802, subsection B, paragraph 2 or 3.
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) or (p) of this subsection.

(b) Transportation of the pupil, except for transportation services described in paragraph 4, subdivision (o) of this subsection.

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 a preschool program for children with disabilities, a kindergarten program or any of grades one through twelve, 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. 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. 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. A parent must renew the qualified student's Arizona empowerment scholarship account on an annual basis. The department of education shall verify that the parent's child is a qualified student as defined in section 15-2401 or 15-2401.01 in the year for which the parent seeks to renew the Arizona empowerment scholarship account. This subsection does not require the department to annually verify the child's disability for the purpose of section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii), if applicable.

G. 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. 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. A signed agreement under this section constitutes school attendance required by section 15-802.

J. 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. Notwithstanding subsection H 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 before this time as long as the account holder continues using a portion of account monies for allowable 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. Monies received pursuant to this article do not constitute taxable income to the parent of the qualified student.

§ 15-2403 Arizona empowerment scholarship accounts; administration; appeals; risk-based audits; 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. The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuant to this subsection.

C. The department shall annually review a sample of Arizona empowerment scholarship accounts, selected at random, to determine whether the parent or qualified student is in compliance with the terms of the contract, applicable laws, rules and orders relating to the Arizona empowerment scholarship accounts program. The Arizona empowerment scholarship account of a parent or qualified student who is in good standing may be randomly selected pursuant to this subsection only one time during any five-year period. 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 fifteen 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 fifteen-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 K of this section.

E. A parent may represent himself or herself or designate a representative, not necessarily an attorney, before any appeals hearing held pursuant to this section. Any designated representative who is not an attorney admitted to practice may not charge for any services rendered in connection with the hearing. The fact that a representative participated in the hearing or assisted the account holder is not grounds for reversing any administrative decision or order if the evidence supporting the decision or order is substantial, reliable and probative.

F. 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.

G. 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.

H. The department shall accept applications between July 1 and June 30 of each year. The department shall issue an award letter to eligible applicants within thirty days after receipt of a completed application and all required documentation. If an eligible applicant completes an application in advance for an Arizona empowerment scholarship account to be funded beginning on a later date, the department may enroll the eligible applicant on the later date, except that the department may not enroll the applicant more than two fiscal quarters after the fiscal quarter in which the application is completed or on a date that is after March 31 and before July 1. If an eligible applicant completes an application after March 31 and before July 1, the department shall enroll the applicant on or after July 1. The department shall enroll all other eligible applicants when the department issues an award letter pursuant to this subsection. This subsection does not allow a qualified student to receive monies in an Arizona empowerment scholarship account while the qualified student is enrolled in a school district or charter school. On or before September 1 and November 1 of each year, the department shall furnish to the joint legislative budget committee and the governor's office of strategic planning and budgeting 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.

I. The state board of education may adopt rules and policies necessary to administer Arizona empowerment scholarship accounts, including rules and policies:

For establishing an appeals process pursuant to subsection D of this section.
For conducting or contracting for examinations of the use of account monies, consistent with subsection L of this section.
For conducting or contracting for random, quarterly and annual reviews of accounts.
For establishing or contracting for the establishment of an online anonymous fraud reporting service.
For establishing an anonymous telephone hotline for fraud reporting.
That require a surety bond or insurance for account holders.

J. 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). If during any period on or after January 1, 2023 the department fails to ensure that a contract with an independent third party is in effect, during that period:

The county school superintendent of each county may approve a list of independent third parties within the county whose evaluation may be used to determine whether a qualified student who resides within the county is eligible to receive educational therapies or services pursuant to section 15-2402, subsection B, paragraph 4, subdivision (c).
If the county school superintendent of a county does not provide a list of approved independent third parties within ninety days after the beginning of any period during which the department does not have a contract with an independent third party in effect as described in this subsection, the parent of a qualified student who resides within the county has the right to obtain an independent educational evaluation from a qualified examiner to determine whether the qualified student is eligible to receive educational therapies or services pursuant to section 15-2402, subsection B, paragraph 4, subdivision (c). The expense for an educational evaluation undertaken pursuant to this paragraph shall be provided by the school district within which the qualified student resides and that serves the grade level of the qualified student. For the purposes of this paragraph, "qualified examiner" means a licensed physician, psychiatrist or psychologist.

K. 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 the department's website.

L. The department shall:

Establish and maintain an online database of allowable and disallowed categories of expenses and provide a link to the database on the department's website.
Allow the use of account monies to reimburse the parent of a qualified student or a qualified student for the purchase of a good or educational service that is an allowable expense pursuant to section 15-2402, subsection B.

M. 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 the department determines is not an allowable expense 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.

N. If, in response to an appeal of an administrative decision made by the department, the state board of education issues a stay of an Arizona empowerment scholarship account suspension pursuant to rules adopted by the board, the department may not withhold funding or contract renewal for the account holder because of the appealed administrative decision during the stay unless directed by the board to do so.

§ 15-2404 State control over nonpublic schools; prohibition; application

A. This chapter does not permit any government agency to exercise control or supervision over any nonpublic school or homeschool.

B. A qualified school that accepts a payment from a parent pursuant to this chapter is not an agent of the state or federal government.

C. A qualified school shall not be required to alter its creed, practices, admissions policy or curriculum in order to accept students whose parents pay tuition or fees from an empowerment scholarship account pursuant to this chapter in order to participate as a qualified school.

D. In any legal proceeding challenging the application of this chapter to a qualified school, the state bears the burden of establishing that the law is necessary and does not impose any undue burden on qualified schools.

§ 15-2405 Arizona empowerment scholarship accounts parent oversight committee; membership; duties

A. The Arizona empowerment scholarship accounts parent oversight committee is established consisting of six members who are parents of qualified students who receive Arizona empowerment scholarship account monies under this chapter. The members shall be appointed as follows:

One member who is appointed by the president of the senate.
One member who is appointed by the speaker of the house of representatives.
One member who is appointed by the minority leader of the senate.
One member who is appointed by the minority leader of the house of representatives.
Two members who are appointed by the governor.

B. At a minimum, the members appointed pursuant to subsection A, paragraphs 1, 2, 3 and 4 of this section shall be parents of qualified students who both:

Meet any of the criteria specified in section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii) as determined by an independent third party pursuant to section 15-2403, subsection I.
Use monies deposited in the qualified student's Arizona empowerment scholarship account for expenses as prescribed in section 15-2402, subsection B, paragraph 4, subdivision (c).

C. The members of the committee shall annually elect a chairperson from among its members.

D. The committee shall meet at least once each calendar quarter. A majority of the membership constitutes a quorum for the transaction of business.

E. The committee shall collaborate and interact with the department, the state board of education, the attorney general and, as appropriate, the auditor general to review all of the following:

The implementation of policies and procedures relating to the Arizona empowerment scholarship account program under this chapter and the program's effectiveness.
The concerns of parents of qualified students who receive Arizona empowerment scholarship account monies under this chapter.
The work of the ombudsman-citizens aide on complaints associated with administering the Arizona empowerment scholarship account program.

F. A parent may not serve on the committee if any of the following applies:

The parent is an employee or the relative of an employee of the department.
The parent receives monies or compensation from or is otherwise associated in any manner with a lobbyist organization, a school choice advocacy group or a private financial management firm that manages Arizona empowerment scholarship accounts pursuant to section 15-2403, subsection A.
The parent provides goods or services to qualified students that are purchased pursuant to section 15-2402, subsection B, paragraph 4.

§ 15-2406 Arizona empowerment scholarship accounts; quarterly reports

Within sixty days after the last day of each calendar quarter, the department shall submit a report, consistent with federal law, to the governor, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting. The report must include all of the following:

The number of qualified students disaggregated by:

(a) Eligibility category.

(b) For qualified students who are eligible pursuant to section 15-2401.01, the number of qualified students who attended a public school in this state in the school year immediately preceding the first year of each qualified student's enrollment in the Arizona empowerment scholarship account program.

(d) The school district or charter school that each qualified student attended in the school year immediately preceding the first year of each qualified student's enrollment in the Arizona empowerment scholarship account program, if applicable.

(e) English language learners.

(f) Qualified students who are enrolled in the Arizona empowerment scholarship account program as a student with a disability.

(g) The zip code of each qualified student's permanent residence.

The annual award amount associated with each Arizona empowerment scholarship account.
The amount of approved expenses disaggregated by type of expense as described in section 15-2402, subsection B, paragraph 4.