Chapter 0311 - 532R - S Ver of HB2526

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

Section 1. Section 15-101, Arizona Revised Statutes, is amended to read:

START_STATUTE15-101. Definitions

In this title, unless the context otherwise requires:

1. "Accommodation school" means either:

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

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

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

2. "Assessed valuation" means the valuation derived by applying the applicable percentage as provided in title 42, chapter 15, article 1 to the full cash value or limited property value, whichever is applicable, of the property.

3. "Charter holder" means a person that enters into a charter with the state board for charter schools. For the purposes of this paragraph, "person" means an individual, partnership, corporation, association or public or private organization of any kind.

4. "Charter school" means a public school established by contract with 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.

5. "Child with a disability" means a child with a disability as defined in section 15‑761.

6. "Class A bonds" means general obligation bonds approved by a vote of the qualified electors of a school district at an election held on or before December 31, 1998.

7. "Class B bonds" means general obligation bonds approved by a vote of the qualified electors of a school district at an election held from and after December 31, 1998.

8. "Competency" means a demonstrated ability in a skill at a specified performance level.

9. "Course" means organized subject matter in which instruction is offered within a given period of time and for which credit toward promotion, graduation or certification is usually given. A course consists of knowledge selected from a subject for instructional purposes in the schools.

10. "Course of study" means a list of required and optional subjects to be taught in the schools.

11. "Dual enrollment course" means a college‑level course that is conducted on the campus of a high school or on the campus of a joint 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.

12. "Elementary grades" means kindergarten programs and grades one through eight.

13. "Fiscal year" means the year beginning July 1 and ending June 30.

14. "Governing board" means a body organized for the government and management of the schools within a school district or a county school superintendent in the conduct of an accommodation school.

15. "Lease" means an agreement for conveyance and possession of real or personal property.

16. "Limited property value" means the value determined pursuant to title 42, chapter 13, article 7. Limited property value shall be used as the basis for assessing, fixing, determining and levying primary property taxes.

17. "Nontest" means not relating to knowledge or skills in reading, writing, mathematics, social studies, science or any other course.

18. "Parent" means the natural or adoptive parent of a child or a person who has custody of a child.

19. "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.

20. "Primary property taxes" means all ad valorem taxes except for secondary property taxes.

21. "Private school" means a nonpublic institution where instruction is imparted.

22. "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.

23. "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.

24. "Secondary grades" means grades nine through twelve.

25. "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.

26. "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. END_STATUTE

Sec. 2. Section 15-185.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-185.01. 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 joint career technical education district and resides within the boundaries of a school district participating in the joint 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 joint technological career technical education district pursuant to section 15‑393. END_STATUTE

Sec. 3. Section 15-255, Arizona Revised Statutes, is amended to read:

START_STATUTE15-255. 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:

1. A full statement of the condition and amount of all funds and property apportioned for the purpose of education.

2. 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.

3. The number and grades of schools in each county.

4. The number of children attending schools.

5. 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.

6. The number of children attending private schools.

7. The amount of school monies derived from county taxes.

8. The amount of school monies derived other than by county taxes.

9. The amount of federal monies that was received during the previous year and that was specified for Indian education aid and emergency operational aid.

10. The amounts expended for salaries of teachers and superintendents and for building of schools.

11. A statement of plans for the management of schools.

12. 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, joint career technical education district and charter school. END_STATUTE

Sec. 4. Heading change

The article heading of title 15, chapter 3, article 6, Arizona Revised Statutes, is changed from "JOINT TECHNICAL EDUCATION DISTRICTS" to "CAREER TECHNICAL EDUCATION DISTRICTS".

Sec. 5. Section 15-391, Arizona Revised Statutes, is amended to read:

START_STATUTE15-391. Definitions

In this article, unless the context otherwise requires:

1. "Joint Career technical education board" means a joint career technical education district governing board.

2. "Joint district" means a joint technical education district.

3. 2. "Joint Career technical education course" means a course that is offered by a joint career technical education district as part of a joint 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 joint 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.

4. 3. "Joint Career technical education district" means a district that is formed pursuant to this article and that offers joint career technical education courses.

5. 4. "Joint career technical education district program" means a sequence of courses that is offered by a joint 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 joint 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 joint career technical education district program vocation or industry.

(n) An industry or vocation has agreed to provide financial or technical support to the joint career technical education district for a specific joint career technical education district program. For the purposes of this subdivision, "financial support" includes in‑kind contributions and donations.

(o) A joint career technical education district has demonstrated a need for extra funding in order to provide the joint career technical education district program.

6. 5. "State board" means the state board of education. END_STATUTE

Sec. 6. Section 15-392, Arizona Revised Statutes, is amended to read:

START_STATUTE15-392. Formation of career technical education districts

A. Notwithstanding any other provision of law, school districts that are interested in forming a joint career technical education district shall conduct a study to determine the need to establish a joint 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 joint career technical education district, which shall include a proposed budget based on a reasonable estimate of student enrollment in the new joint 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 joint 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 joint 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 joint 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 joint 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 joint 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 joint career technical education district. The joint 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 joint career technical education district may pay on a proportional basis the administrative, clerical and other expenses necessary for the establishment and operation of the joint career technical education district until monies are otherwise provided.

D. A joint career technical education district after receiving voter approval as provided in subsection B of this section shall be governed by a joint career technical education board consisting of members elected pursuant to section 15‑393, except that the initial composition of the joint 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 joint career technical education district. The terms of office of the joint career technical education board members shall become effective on January 1 following the election held pursuant to subsection B of this section. Upon On the effective date of the term of office for joint career technical education board members, the joint career technical education board may begin necessary operations and activities related to making the district operational pursuant to subsection B of this section. If less fewer than five school districts are participating in the joint career technical education district, the initial composition of the joint 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 joint career technical education district and thereafter, career technical education board members shall be elected as prescribed in section 15‑393. END_STATUTE

Sec. 7. Section 15-393, Arizona Revised Statutes, is amended to read:

START_STATUTE15-393. Career technical education district governing board; report; definitions

A. The management and control of the joint a career technical education district are vested in the joint 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 joint district career technical education course or career technical education district program. Unless the governing boards of the school districts participating in the formation of the joint career technical education district vote to implement an alternative election system as provided in subsection B of this section, the joint career technical education board shall consist of five members elected from five single member districts formed within the joint career technical education district. The single member district election system shall be submitted as part of the plan for the joint career technical education district pursuant to section 15‑392 and shall be established in the plan as follows:

1. The governing boards of the school districts participating in the formation of the joint 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 joint 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 joint career technical education district if this district design is consistent with the obligation to equalize the population among single member districts.

2. The boundaries of each single member district shall follow election precinct boundary lines, as far as practicable, in order to avoid further segmentation of the precincts.

3. A person who is a registered voter of this state and who is a resident of the single member district is eligible for election to the office of joint career technical education board member from the single member district. The terms of office of the members of the joint career technical education board shall be as prescribed in section 15‑427, subsection B. An employee of a joint career technical education district or the spouse of an employee shall not hold membership on a governing board of a joint career technical education district by which the employee is employed. A member of one school district governing board or joint 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 joint 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 joint career technical education district governing board are subject to the conflict of interest requirements prescribed in section 38‑503.

4. Nominating petitions shall be signed by the number of qualified electors of the single member district as provided in section 16‑322.

B. The governing boards of the school districts participating in the formation of the joint career technical education district may vote to implement any other alternative election system for the election of joint career technical education district board members. If an alternative election system is selected, it shall be submitted as part of the plan for the joint 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. The joint career technical education district shall be subject to the following provisions of this title:

1. Chapter 1, articles 1 through 6.

2. Sections 15‑208, 15‑210, 15‑213 and 15‑234.

3. Articles 2, 3 and 5 of this chapter.

4. Section 15‑361.

5. Chapter 4, articles 1, 2 and 5.

6. Chapter 5, articles 1 and 3.

7. Sections 15‑701.01, 15‑722, 15‑723, 15‑724, 15‑727, 15‑728, 15‑729 and 15‑730.

8. Chapter 7, article 5.

9. Chapter 8, articles 1, 3 and 4.

10. Sections 15‑828 and 15‑829.

11. Chapter 9, article 1, article 6, except for section 15‑995, and article 7.

12. Sections 15‑941, 15‑943.01, 15‑952, 15‑953 and 15‑973.

13. Sections 15‑1101 and 15‑1104.

14. Chapter 10, articles 2, 3, 4 and 8.

D. Notwithstanding subsection C of this section, the following apply to a joint career technical education district:

1. A joint 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 joint 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.

2. The number of governing board members for a joint career technical education district shall be as prescribed in subsection A of this section.

3. The student count for the first year of operation of a joint career technical education district as provided in this article shall be determined as follows:

(a) Determine the estimated student count for joint 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 joint career technical education district. The student count for the school district of residence of the pupils registered at the joint 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 joint 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 joint career technical education district.

(b) The student count for the new joint 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 joint 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 joint career technical education district. A joint 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 prior to before May 15. A joint career technical education district that overestimated its student count shall revise its budget prior to before May 15. A joint career technical education district that underestimated its student count may revise its budget prior to 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 joint 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 joint career technical education district shall revise its budget prior to before May 15. A district that overestimated the student count for students attending the joint career technical education district may revise its budget prior to before May 15.

(e) The procedures for implementing this paragraph shall be as prescribed in the uniform system of financial records.

(f) Pupils in an approved joint career technical education district centralized program may generate an average daily membership of 1.0 during any day of the week and at any time between July 1 and June 30 of each fiscal year. For the purposes of this paragraph, "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 joint 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 joint career technical education district if the pupil had not enrolled in the joint career technical education district.

4. A student includes any person enrolled in the joint 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 nine who enrolls in courses offered by the joint career technical education district shall not be included in the joint 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 nine who is enrolled in career and technical education courses shall not be funded in whole or in part with monies provided by a joint career technical education district, except that a pupil in grade eight or nine may be funded with monies generated by the five cent qualifying tax rate authorized in subsection F of this section.

(c) Beginning July 1, 2016, 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 joint career technical education district for the purposes of chapter 9, articles 3, 4 and 5 of this title.

(d) A student who is enrolled in any internship course as part of a joint career technical education district program shall not be included in the student count of the joint career technical education district for that internship course for the purposes of chapter 9, articles 3, 4 and 5 of this title.

5. A joint career technical education district may operate for more than one hundred eighty days per year, with expanded hours of service.

6. A joint career technical education district may use the carryforward provisions of section 15‑943.01.

7. A school district that is part of a joint 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 joint 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 joint 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 joint 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.

8. A joint 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.

9. A joint career technical education district or a school district that is part of a joint career technical education district or a charter school shall only include pupils in grades ten through twelve in the calculation of student count or average daily membership if the pupils are enrolled in courses that are approved jointly by the governing board of the joint 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 joint career technical education district for centrally located courses. Student count and average daily membership from courses that are not part of an approved program for career and technical education shall not be included in student count and average daily membership of a joint career technical education district.

E. The joint career technical education board shall appoint a superintendent as the executive officer of the joint career technical education district.

F. Taxes may be levied for the support of the joint career technical education district as prescribed in chapter 9, article 6 of this title, except that a joint career technical education district shall not levy a property tax pursuant to law that exceeds five cents per one hundred dollars assessed valuation except for bond monies pursuant to subsection D, paragraph 1 of this section. Except for the taxes levied pursuant to section 15‑994, such taxes shall be obtained from a levy of taxes on the taxable property used for secondary tax purposes.

G. The schools in the joint career technical education district are available to all persons who reside in the joint 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 joint career technical education district, subject to the rules for admission prescribed by the joint career technical education board.

H. The joint 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 joint career technical education district pursuant to arrangements made between the governing board of the school district and the joint career technical education board.

I. The joint 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 operation of the schools of the joint career technical education district.

J. One member of the joint career technical education board shall be selected chairman. The chairman shall be selected annually on a rotation basis from among the participating school districts. The chairman of the joint career technical education board shall be a voting member.

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

L. Beginning July 1, 2016, Any agreement between the governing board of a joint career technical education district and another joint career technical education district, a school district, a charter school or a community college district shall be in the form of an intergovernmental agreement or other written contract. The auditor general shall modify the uniform system of financial records and budget forms in accordance with this subsection. The intergovernmental agreement or other written contract shall completely and accurately specify each of the following:

1. The financial provisions of the intergovernmental agreement or other written contract and the format for the billing of all services.

2. The accountability provisions of the intergovernmental agreement or other written contract.

3. The responsibilities of each joint career technical education district, each school district, each charter school and each community college district that is a party to the intergovernmental agreement or other written contract.

4. The type of instruction that will be provided under the intergovernmental agreement or other written contract, including individualized education programs pursuant to section 15‑763.

5. The quality of the instruction that will be provided under the intergovernmental agreement or other written contract.

6. The transportation services that will be provided under the intergovernmental agreement or other written contract and the manner in which transportation costs will be paid.

7. The amount that the joint career technical education district will contribute to a course and the amount of support required by the school district or the community college.

8. That the services provided by the joint career technical education district, the school district, the charter school or the community college district be proportionally calculated in the cost of delivering the service.

9. That the payment for services shall not exceed the cost of the services provided.

10. That the joint career technical education district will provide the following minimum services for all member districts:

(a) Professional development of career and technical teachers in the joint 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.

11. 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 for the approval or addition of satellite campus joint 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 joint career technical education district. On approval from the joint career technical education board, a joint career technical education district shall only submit requests for the approval or addition of satellite campus joint 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 3 2 and 5 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 joint career technical education course, the governing board of the joint 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 joint career technical education course defined in section 15‑391 and who does not meet the criteria specified in subsection P or Q 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 or Q 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 joint career technical education district shall not exceed 1.25. The school district or charter school and the joint 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 joint 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 pursuant to this subsection if the pupil is enrolled in a school district that is a member district in the same joint career technical education district.

P. The sum of the average daily membership of a pupil who is enrolled in both the school district and joint career technical education district course or career technical education program provided at a community college pursuant to subsection K of this section or at a centralized campus shall not exceed 1.75. The member school district and the joint 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 joint 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 in grade ten, eleven or twelve who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a centralized campus shall be 0.75. To qualify for funding pursuant to this subsection, a centralized campus shall offer programs and courses to all eligible students in each member district of the joint career technical education district.

Q. The average daily membership for a pupil in grade ten, eleven or twelve who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a leased centralized campus shall not exceed 0.75. The sum of the average daily membership, as provided in section 15‑901, subsection A, paragraph 1, of a pupil who is enrolled in both the school district and in joint career technical education district courses provided at a leased centralized campus shall not exceed 1.75 if all of the following conditions are met:

1. The course qualifies as a joint career technical education course as defined in section 15‑391.

2. The course is offered to all eligible students in each member district of the joint career technical education district and enrolls students from multiple high schools.

3. The joint 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.

4. The lease is established at fair market value if the lease is executed for a facility located on the site of a member district and was approved by the joint committee on capital review, except that a lease that was executed or renewed before December 31, 2012 is not subject to approval by the joint committee on capital review.

R. A student who is enrolled in an accommodation school as defined in section 15‑101 may be treated as a student of the school district in which the student physically resides for the purposes of enrollment in a joint career technical education district and shall be included in the calculation of average daily membership for either the joint career technical education district or the accommodation school, or both.

S. Notwithstanding any other law, the student count for a joint career technical education district shall be equivalent to the joint career technical education district's average daily membership.

T. 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 joint 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 joint career technical education district.

U. The governing board of the joint career technical education district may contract with any charter school that is located within the boundaries of the joint career technical education district to allow that charter school to offer career and technical education courses or programs as a satellite campus.

V. Beginning in 2020 and every five years thereafter, the career and technical education division of the department of education shall review joint career technical education district programs and joint 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 joint career technical education district.

W. For the purposes of this section:

1. "Base year" means the complete school year in which voters of a school district elected to join a joint career technical education district.

2. "Centralized campus" means a facility that is owned and operated by a joint career technical education district for the purpose of offering joint career technical education district programs or joint career technical education courses.

3. "Lease" means a written agreement in which the right of occupancy or use of real property is conveyed from one person or entity to another person or entity for a specified period of time.

4. "Leased centralized campus" means a facility that is leased and operated by a joint career technical education district for the purpose of offering joint career technical education district programs or joint career technical education courses.

5. "Satellite campus" means a facility that is owned or operated by a school district or charter school for the purpose of offering joint career technical education district programs or joint career technical education courses. END_STATUTE

Sec. 8. Section 15-393.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-393.01. Career technical education districts; annual report; performance and accountability

A. The department of education shall include each joint career technical education district in the department's annual achievement profiles required by section 15‑241. Subject to approval by the state board of education, the department of education shall develop specific criteria applicable to joint 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, and shall include joint career technical education districts in the letter grade classification system prescribed in section 15‑241. The department shall include all of the following performance indicators in the annual achievement profiles and letter grade classification and provide a copy of the information to each joint career technical education district governing board:

1. The graduation rate of all students enrolled in a career and technical education program or course.

2. The completion rate for each program offered by the joint career technical education district.

3. Performance on assessments required pursuant to section 15‑391, paragraph 5 4, subdivision (b).

4. Postgraduation employment rates, postsecondary enrollment rates and military service rates for students who complete a career and technical education program.

B. A joint 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 joint career technical education district when conducting a performance audit for a joint 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 joint 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:

1. The average daily membership of each joint 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.

2. The actual student count of each joint career technical education district, including the student count of each centralized campus, satellite campus and leased centralized campus as defined in section 15‑393.

3. The programs and corresponding courses offered by each joint career technical education district, including the location of each program and course.

4. For each joint 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.

5. The costs associated with each program offered by the joint career technical education district.

6. 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 V.

7. 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 V.

8. A listing of any programs or courses that were added by the career and technical education division.

9. 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.

10. 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 joint career technical education district programs. Any guideline, policy or procedure shall allow for the effective comparison of cost between joint career technical education district programs. END_STATUTE

Sec. 9. Section 15-394, Arizona Revised Statutes, is amended to read:

START_STATUTE15-394. 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 such that teacher moves from a school district to a joint career technical education district or from a joint 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 joint career technical education district. END_STATUTE

Sec. 10. Section 15-395, Arizona Revised Statutes, is amended to read:

START_STATUTE15-395. Enlarging career technical education districts

A. To add school districts to a joint career technical education district, the joint career technical education board shall first publish a copy of a proposed resolution accepting the school district into the joint career technical education district in a newspaper of general circulation in the school district proposing to join the joint 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 joint career technical education board.

B. After adoption by the joint career technical education board of the resolution accepting the school district into the joint career technical education district, the question shall be submitted to the qualified electors of the school district seeking to become a part of the joint 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 joint 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 joint career technical education district and the school district seeking to become part of the joint career technical education district in order to enlarge the joint career technical education district. END_STATUTE

Sec. 11. Section 15-395.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-395.01. 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 joint career technical education district, the governing boards of a majority of the school districts participating in the joint 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 joint 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 joint career technical education board approves, the question of the withdrawal from the joint career technical education district shall be submitted to the qualified electors of the school district seeking to withdraw from the joint career technical education district at the next general election.

B. Notwithstanding subsection A of this section, to withdraw an elementary a common school district from a joint career technical education district, the governing board of the elementary common school district that desires to withdraw from the joint career technical education district shall approve by a majority vote the withdrawal of the common school district. The governing board of the elementary common school district shall notify the governing board of the joint career technical education district no later than ten days after the governing board of the elementary common school district approves the withdrawal of the district. If the governing board of the elementary common school district that desires to withdraw from the joint career technical education district approves, the question of the withdrawal from the joint career technical education district shall be submitted to the qualified electors of the elementary common school district seeking to withdraw from the joint 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 joint career technical education district shall is not be eligible to withdraw from the joint career technical education district pursuant to this subsection.

C. If the withdrawal of a school district is approved as prescribed in subsections 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 shall is not be entitled to ownership of any assets held by the joint career technical education district.

E. If a joint 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 prior to before the withdrawal of the school district in the same manner as was levied and collected prior to before the withdrawal of the school district. END_STATUTE

Sec. 12. Section 15-396, Arizona Revised Statutes, is amended to read:

START_STATUTE15-396. Dissolution of career technical education districts

A. On approval of a majority of the full membership of the joint career technical education board or on the receipt by the joint career technical education board of resolutions adopted by the governing boards of the school districts participating in the joint career technical education district, the joint career technical education board shall adopt and send to the state board a resolution requesting the dissolution of the joint 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 joint career technical education district and provide that each participating school district will assume its share of the outstanding indebtedness of the joint career technical education district.

B. On approval of the resolution by the state board, the joint career technical education district is dissolved in accordance with the provisions of the resolution. END_STATUTE

Sec. 13. Section 15-491, Arizona Revised Statutes, is amended to read:

START_STATUTE15-491. Elections on school property; exceptions

A. The governing board of a school district may, and on petition of fifteen percent of the school electors as shown by the poll list at the last preceding annual school election shall, call an election for the following purposes:

1. To locate or change the location of school buildings.

2. To purchase or sell school sites or buildings or sell school sites pursuant to section 15‑342 or to build school buildings, but the authorization by vote of the school district shall not necessarily specify the site to be purchased.

3. To decide whether the bonds of the school district shall be issued and sold for the purpose of raising money for purchasing or leasing school lots, for building or renovating school buildings, for supplying school buildings with furniture, equipment and technology, for improving school grounds, for purchasing pupil transportation vehicles or for liquidating any indebtedness already incurred for such purposes. Bonds issued for furniture, equipment and technology, other than fixtures, shall mature no later than the July 1 that follows the fifth year after the bonds were issued. A school district shall not issue class B bonds until the school district has obligated in contract the entire proceeds of any class A bonds issued by the school district. The total amount of class A and class B bonds issued by a school district shall not exceed the debt limitations prescribed in article IX, sections 8 and 8.1, Constitution of Arizona.

4. To lease for ten 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 ten or more years of the school buildings or grounds listed on the ballot within ten years of the date of the election and the board continues to seek such a lease, the governing board shall call a special election to reauthorize the board to negotiate for and to enter into a lease of ten or more years.

5. To change the list of capital projects or the purposes authorized by prior voter approval to issue bonds.

6. To extend from six to ten years the time period to issue class B bonds authorized in 2009 or earlier. Elections pursuant to this paragraph may not be held later than the sixth November after the election approving the issuance of the bonds.

B. No petition shall be required for the holding of the first election to be held in a joint common school district for any of the purposes specified in subsection A of this section. The notice of election required by section 15‑492 shall be published in each of the counties that comprise the joint common school district. 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 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 information report and ballot prepared for the override election. Mailing of the information required for both the override and bond elections shall constitute compliance with the notice provisions of this section.

E. The elections to be held pursuant to this section shall only be held on dates prescribed by section 16‑204, except that elections held pursuant to this section to decide whether class B bonds shall be issued, or any other obligation incurred that will require the assessment of secondary property taxes, shall only be held on the first Tuesday after the first Monday of November.

F. Subsection A, paragraph 2 of this section does not apply to the sale of school property if the market value of the school property is less than fifty thousand dollars.

G. Bond counsel fees, financial advisory fees, printing costs and paying agent and registrar fees for bonds issued pursuant to an election under this section shall be paid from either the amount authorized by the qualified electors of the school district or current operating funds. Bond election expenses shall be paid from current operating funds only.

H. For any election conducted to decide whether class B bonds will be issued pursuant to this section:

1. Except as provided in paragraph 2 of this subsection, the ballot shall include the following statement:

The capital improvements that are proposed to be funded through this bond issuance are to exceed the state standards and are in addition to monies provided by the state.

__________ school district is proposing to issue class B general obligation bonds totaling $__________ to fund capital improvements over and above those funded by the state. Under the students first capital funding system, _________ school district is entitled to state monies for new construction and renovation of school buildings in accordance with state law.

2. For a school district that is a joint career technical education district, the ballot shall include the following statement:

___________, a joint 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 joint career technical education district.

3. The ballot shall contain the words "bond approval, yes" and "bond approval, no", and the voter shall signify the voter's desired choice.

4. The ballot shall also contain the phrase "the issuance of these bonds will result in an annual levy of property taxes sufficient to pay the debt on the bonds".

5. At least eighty‑five days before the election, the school district shall submit proposed ballot language to the director of the Arizona legislative council. The director of the Arizona legislative council shall review the proposed ballot language to determine whether the proposed ballot language complies with this section. If the director of the Arizona legislative council determines that the proposed ballot language does not comply with this section, the director, within ten calendar days of the receipt of 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.

6. No later than thirty-five days before a class B bond election conducted pursuant to this section, the school district shall mail a publicity pamphlet to each household that contains a qualified elector in the school district. The publicity 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 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 board.

(c) The tax rate associated with each of the proposed capital improvements and the estimated cost of each capital improvement for the owner of a single family home that is valued at one hundred thousand dollars.

I. For any election conducted to decide whether impact aid revenue bonds shall be issued pursuant to this section:

1. The ballot shall include the following statement:

The capital improvements that are proposed to be funded through this bond issuance are to exceed the state standards and are in addition to monies provided by the state.

__________ school district is proposing to issue impact aid revenue bonds totaling $__________ to fund capital improvements over and above those funded by the state. Under the students first capital funding system, _________ school district is entitled to state monies for new construction and renovation of school buildings in accordance with state law.

2. The ballot shall contain the words "bond approval, yes" and "bond approval, no", and the voter shall signify the voter's desired choice.

3. At least eighty‑five days before the election, the school district shall submit proposed ballot language to the director of the legislative council. The director of the legislative council shall review the proposed ballot language to determine whether the proposed ballot language complies with this section. If the director of the legislative council determines that the proposed ballot language does not comply with this section, the director, within ten calendar days of the receipt of the proposed ballot language, shall notify the school district of the director's objections and the school district shall resubmit revised ballot language to the director for approval.

4. No later than thirty‑five days before an impact aid revenue bond election conducted pursuant to this section, the school district shall mail a publicity pamphlet to each household that contains a qualified elector in the school district. The publicity 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 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 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 publicity pamphlet, except that up to ten percent of the bond proceeds may be used for general capital expenses, including cost overruns of proposed capital improvements. The proposed capital improvements may be changed by a subsequent election as provided by this section.

K. Each school district that issues bonds under this section is required to hold a public meeting each year between September 1 and October 31, until the bond proceeds are spent, at which an update of the progress of capital improvements financed through bonding is discussed and at which the public is permitted an opportunity to comment. At a minimum, the update shall include a comparison of the current status and the original projections on the construction of capital improvements, the costs of capital improvements and the costs of capital improvements in progress or completed since the prior meeting and the future capital bonding plans of the school district. The school district shall include in the public meeting a discussion of the school district's use of state capital aid and voter‑approved capital overrides in funding capital improvements, if any.

L. If an election is held to change the purpose or list of capital projects authorized by prior voter approval to issue bonds pursuant to subsection A, paragraph 5 of this section, the following requirements apply:

1. The election may be held only on the first Tuesday after the first Monday in November.

2. No later than thirty‑five days before the election, the school district shall mail a publicity pamphlet to each household in the school district that contains a qualified elector. The publicity 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 publicity 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 board.

(e) A complete list of each capital improvement that was presented in the publicity 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 board.

(f) Arguments for and against the proposed change, if submitted, as provided by section 15‑481, subsection B, paragraph 9. The ballot arguments for the proposed change shall be signed as the governing board of the school district without listing any member's individual name for the arguments for the proposed change.

3. The ballot shall contain the words "change capital improvements, yes" and "change capital improvements, no", and the voter shall signify the voter's desired choice.

4. If the election is to add a purpose that was not on the initial ballot, the ballot shall list the purpose that is proposed to be added.

M. If an election is held to extend the time to issue bonds pursuant to subsection A, paragraph 6 of this section, the following requirements apply:

1. The election may be held only on the first Tuesday after the first Monday in November.

(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.

3. The ballot shall contain the words "extend time to issue bonds, yes" and "extend time to issue bonds, no", and the voter shall signify the voter's desired choice. END_STATUTE

Sec. 14. Section 15-782.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-782.01. 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 joint career technical education district if the person does all of the following:

1. Demonstrates expertise in the subject matter in which the person will provide instruction.

2. Demonstrates at least five years of work experience in the subject matter in which the person will provide instruction.

3. 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. END_STATUTE

Sec. 15. Section 15-782.02, Arizona Revised Statutes, is amended to read:

START_STATUTE15-782.02. Career and technical education and vocational education programs; fingerprint clearance card; expanded hours; tuition

A. For the purposes of the joint 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.), joint 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 education 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 joint 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 joint 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 joint 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 joint 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 joint 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 joint 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 joint 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 education 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. END_STATUTE

Sec. 16. Section 15-790, Arizona Revised Statutes, is amended to read:

START_STATUTE15-790. 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 entry‑level career and technical education and vocational education.

B. Joint 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 technological 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. END_STATUTE

Sec. 17. Section 15-792.03, Arizona Revised Statutes, is amended to read:

START_STATUTE15-792.03. Grand Canyon diploma

A. The private organization selected pursuant to section 15‑792.02 shall develop the Grand Canyon diploma to be approved and adopted by the state board of education. School districts and charter schools in this state may choose to offer a Grand Canyon diploma beginning in the 2012‑2013 school year. A high school student who is enrolled in a school district or charter school that offers a Grand Canyon diploma may choose to pursue a Grand Canyon diploma.

B. Students are eligible for the Grand Canyon diploma and may be awarded the Grand Canyon diploma at the end of grade ten or during or at the end of grade eleven or twelve if the students meet the criteria. Students who elect to pursue a Grand Canyon diploma shall participate in a board examination system that consists of internationally benchmarked instructional programs of study chosen by an interstate compact on board examination systems.

C. Students who are eligible for a Grand Canyon diploma shall have multiple pathways available to them and may:

1. Enroll the following 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 per cent 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 per cent 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 per cent 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.

2. Remain in high school and enroll in additional advanced preparation board examination programs that are designed to prepare those students for admission to selective postsecondary institutions that offer baccalaureate degree programs. These board examination programs shall be selected from a list approved by an interstate compact for board examination systems. The school district or charter school from which the student became eligible for the Grand Canyon diploma shall include that student in the school district's or charter school's average daily membership and shall continue to receive per pupil funding for a student who is eligible for a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve, as long as that student is enrolled in approved advanced preparation board examination programs at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall not be prevented from enrolling at a high school after the pupil becomes eligible for a Grand Canyon diploma and shall be eligible to participate in extracurricular activities, including interscholastic sports, through the end of grade twelve.

3. Enroll in a full‑time career and technical education program offered on a high school campus or a joint 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 joint 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 joint career technical education district and 0.25 for the school district.

4. Remain in high school without completing the next level of board examination systems and participate in programs of study available to the students through the school district or charter school. The school district or charter school will continue to include the students in the school district's or charter school's count and shall continue to receive per pupil funding for the students until those students would have otherwise graduated at the end of grade twelve, as long as those students are enrolled in approved programs of study at that school district or charter school. Students who elect to remain in high school pursuant to this paragraph shall be eligible to participate in extracurricular activities, including interscholastic sports.

5. If accepted for admission to a university under the jurisdiction of the Arizona board of regents, enroll in the university after completion of additional high school coursework designed to prepare students for admission to selective postsecondary institutions that offer baccalaureate degrees. The school district or charter school from which the student earned the Grand Canyon diploma shall include that student in the school district's or charter school's average daily membership and shall continue to receive per pupil funding for a student who earns a Grand Canyon diploma until that student would otherwise have graduated at the end of grade twelve for as long as that student is enrolled as a full‑time student in the university. One‑third of the school district's or charter school's average daily membership amount shall be retained by the school district or the operator of the charter school. One‑third of the school district's or charter school's average daily membership amount shall be retained for use at the school site. One‑third of the school district's or charter school's average daily membership amount shall be distributed as follows:

(a) One‑half shall be deposited in a scholarship account established and managed by the school district from which the student graduated specifically for a student who qualifies for the Grand Canyon diploma and who attends a university under the jurisdiction of the Arizona board of regents as a full‑time student.

(b) One‑half shall be retained by the university where the student is enrolled.

D. Students who pursue but do not meet the eligibility requirements for a Grand Canyon diploma at the end of grade ten or eleven shall receive a customized program of assistance during the next school year that addresses areas in which the student demonstrated deficiencies in the approved board examinations. These students may retake the board examinations at the next available examination administration. Students may choose to return to a traditional academic program without completing the board examination system curriculum.

E. The private organization selected pursuant to section 15‑792.02 shall develop detailed requirements for students to become eligible for the Grand Canyon diploma, as approved and adopted by the state board of education, that include at least the following:

1. Demonstrated skills and knowledge in English and mathematical literacy to be successful in college level courses offered by the community colleges in this state that count toward a degree or certificate without taking remedial or developmental coursework as determined by an interstate compact on board examination systems.

2. Satisfactory grades on approved board examinations in subjects determined to be necessary to prepare a student to enter community college without remedial or developmental coursework and that do not include coursework required exclusively for entry into an institution that awards baccalaureate degrees. END_STATUTE

Sec. 18. Section 15-795.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-795.01. 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 39, 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:

1. Enroll the following fall semester in a community college under the jurisdiction of a community college district in this state. Community colleges under the jurisdiction of a community college district in this state shall admit students who obtain a 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 per cent 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 per cent 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 per cent 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.

2. 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.

3. Enroll in a full-time career and technical education program offered on a high school campus or a joint 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 joint 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 joint career technical education district and 0.25 for the school district.

4. 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 per cent 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 per cent percent of this amount shall be retained by the university where the student is enrolled. END_STATUTE

Sec. 19. Section 15-808, Arizona Revised Statutes, is amended to read:

START_STATUTE15-808. 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:

1. The depth and breadth of curriculum choices.

2. 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, electronic mail e‑mail, virtual tutoring, online help desk, group chat sessions and noncomputer‑based activities performed under the direction of a certificated teacher.

3. The availability of an intranet or private network to safeguard pupils against predatory and pornographic elements of the internet.

4. The availability of filtered research access to the internet.

5. The availability of private individual electronic mail e‑mail between pupils, teachers, administrators and parents in order to protect the confidentiality of pupil records and information.

6. The availability of faculty members who are experienced with computer networks, the internet and computer animation.

7. The extent to which the school intends to develop partnerships with universities, community colleges and private businesses.

8. The services offered to populations with developmental disabilities.

9. 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 joint 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:

1. 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.

2. 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 course‑relevant state academic standards.

J. For the purposes of this section:

1. "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.

2. "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.

3. "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.

4. "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.

5. "State‑approved charter authorizer" means any charter school sponsor authorized pursuant to section 15‑183. END_STATUTE

Sec. 20. Section 15-901.06, Arizona Revised Statutes, is amended to read:

START_STATUTE15-901.06. Dropout recovery programs; written learning plan; requirements; definitions

A. Each school district and charter school that provides instruction to high school pupils may offer a dropout recovery program for eligible pupils.

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:

1. Provide curricula aligned to the academic standards adopted by the state board of education. The curricula may be delivered online. A provider of Arizona online instruction pursuant to section 15‑808 may not also operate a dropout recovery program pursuant to this section.

2. Provide standardized tests required by federal and state law.

3. Make available appropriate and sufficient supports for pupils, including tutoring, career counseling and college counseling.

4. Comply with federal and state laws governing pupils with disabilities.

5. Meet state requirements for high school graduation.

C. Each eligible pupil who is enrolled in a dropout recovery program shall have a written learning plan developed by the pupil's assigned mentor. The written learning plan shall include the following elements:

1. The start date and anticipated end date of the plan.

2. Courses to be completed by the pupil during the academic year.

3. Whether courses will be taken sequentially or concurrently.

4. State competency exams to be taken, as necessary.

5. Expectations for satisfactory monthly progress.

6. Expectations for contact with the pupil's assigned mentor.

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:

1. Newly enrolled pupils who have a written learning plan on file on or before the first school day of the previous month.

2. Pupils who met the expectations for satisfactory monthly progress in the previous month.

3. Pupils 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.

4. Pupils who met expectations for program reentry in the revised written learning plan in the previous month.

E. Because dropout recovery pupils are not expected to regularly attend classes at the district facilities, standard procedures for recording pupil attendance cannot be effectively applied to those students. For pupils participating in a dropout recovery program, an eligible pupil shall be counted as being in attendance in the school's average daily attendance calculations pursuant to subsection F of this section if the pupil meets one of the following conditions:

1. Is in the first month of enrollment in the program and completes the program orientation during that month.

2. Is enrolled in teacher-facilitated courses and meets the expectations for satisfactory monthly progress for the current or previous month. A pupil who does not meet expectations for monthly progress for two or more consecutive months shall not be reported as being in attendance until the pupil meets the expectations for program reentry.

3. Meets the expectations for program reentry in the revised written learning plan.

F. If a pupil 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 pupil in the school district or charter school and in a dropout recovery program shall not exceed 1.0, except that if the pupil is enrolled in a dropout recovery program and a joint career technical education district, the average daily membership provisions of section 15‑393 apply. If the pupil 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 pupil is greater than 1.0 or the amount prescribed in section 15‑393 if the pupil is enrolled in a joint career technical education district, the sum shall be reduced to 1.0 or to the amount specified in section 15‑393 if the pupil is enrolled in a joint career technical education district and shall be apportioned between the school district or charter school and the joint 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 the apportionment of pupil enrollment and attendance as provided in this subsection. Pupils 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 pupil who participates in a dropout recovery program shall not exceed 1.0 or the amount prescribed in section 15‑393 if the pupil is enrolled in a joint 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 pupils enrolled in a dropout recovery program shall equal the average daily attendance of the pupils.

H. School districts and charter schools shall be responsible for tuition charges and fees related to pupil 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 a dropout recovery program. If contracting with an educational management organization, the school district or charter school shall ensure that all of the following requirements are met:

1. The educational management organization is accredited by a regional accrediting body.

2. 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. Dropout recovery programs shall be classified as alternative schools and shall be subject to the accountability provisions of section 15‑241.

K. Entities that are contracted to provide dropout recovery programs may conduct outreach to encourage pupils 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 pupils who are currently enrolled in a school district or charter school, or undertake any other activity that encourages pupils who are currently enrolled in a school district or charter school to stop attending school in order to qualify for a dropout recovery program.

L. For the purposes of this section:

1. "Eligible pupil" means a pupil who, if enrolled, would be eligible for placement in an alternative school but 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 thirty days, unless the district determines that the student is unable to participate in other district programs.

2. "Satisfactory monthly progress" 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 pupil as would be awarded to a pupil in a traditional education program who completes a full school year. Satisfactory monthly progress may include a lesser required amount of progress for the first two months that a pupil participates in the program. END_STATUTE

Sec. 21. Section 15-943.02, Arizona Revised Statutes, is amended to read:

START_STATUTE15-943.02. Base support level for career technical education districts

A. The base support level for each joint 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. END_STATUTE

Sec. 22. Section 15-947.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-947.01. Revenue control limit; general budget limit; total capital budget limit for career technical education districts

A. The revenue control limit for a joint career technical education district is equal to the base support level determined in section 15‑943.02.

B. The general budget limit for each joint career technical education district, for each fiscal year, is the sum of the following:

1. The revenue control limit for the budget year.

2. District additional assistance for the budget year.

3. Tuition revenues for attendance of nonresident pupils.

4. 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.

5. Expenditures for excess utility costs as provided in section 15‑910.

C. The unrestricted capital budget limit for each joint career technical education district for the budget year is as provided in section 15‑947, subsection D. END_STATUTE

Sec. 23. Section 15-962.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-962.01. District additional assistance allocation for career technical education districts

The district additional assistance for a joint 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. END_STATUTE

Sec. 24. Section 15-971, Arizona Revised Statutes, is amended to read:

START_STATUTE15-971. 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:

1. The lesser of a school district's revenue control limit or district support level as determined in section 15‑947 or 15‑951.

2. District additional assistance of a school district as determined in section 15‑951 or 15‑961.

B. From the total of the amounts determined in subsection A of this section subtract:

1. 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.

2. 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 shall not be 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.

3. The amount that would be produced by levying a qualifying tax rate in a joint career technical education district, which shall be five cents per one hundred dollars assessed valuation unless the legislature sets a lower rate by law.

C. County aid for equalization assistance for education shall be computed as follows:

1. Determine the total equalization assistance for all school districts in the county as provided in subsections A and B of this section.

2. Determine the total amount of state equalization assistance collected for all school districts in the county as provided in section 15‑994.

3. Divide the amount determined in paragraph 2 of this subsection by the amount determined in paragraph 1 of this subsection.

4. Multiply the amount determined in subsections A and B of this section by the quotient determined in paragraph 3 of this subsection for each school district.

5. The amount determined in paragraph 4 of this subsection shall be the county aid for equalization assistance for education for a school district.

D. State aid for equalization assistance for education for a school district shall be computed as follows:

1. Determine the equalization assistance for education for a school district as provided in subsections A and B of this section.

2. For each county, determine the levy that would be produced by the state equalization assistance property tax rate prescribed in section 15‑994, subsection A.

3. Prorate the amount determined in paragraph 2 of this subsection to each school district in the county as prescribed by subsection C of this section.

4. Subtract the amount determined in paragraph 3 of this subsection from the amount determined in paragraph 1 of this subsection.

E. Equalization assistance for education shall be paid from appropriations for that purpose to the school districts as provided in section 15‑973.

F. 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.

G. 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.

H. 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 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.

I. 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. END_STATUTE

Sec. 25. Section 15-1021, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1021. Limitation on bonded indebtedness; limitation on authorization and issuance of bonds; definitions

A. Until December 31, 1999, a school district may issue class A bonds for the purposes specified in this section and chapter 4, article 5 of this title to an amount in the aggregate, including the existing indebtedness, not exceeding fifteen percent of the taxable property used for secondary property tax purposes, as determined pursuant to title 42, chapter 15, article 1, within a school district as ascertained by the last property tax assessment previous to issuing the bonds.

B. From and after December 31, 1998, a school district may issue class B bonds for the purposes specified in this section and chapter 4, article 5 of this title to an amount in the aggregate, including the existing class B indebtedness, not exceeding ten percent of the net assessed value of the full cash value of the property in that school district, or one thousand five hundred dollars per student count pursuant to section 15‑901, subsection A, paragraph 13, whichever amount is greater. A school district shall not issue class B bonds until the proceeds of any class A bonds issued by the school district have been obligated in contract. The total amount of class A and class B bonds issued by a school district shall not exceed the debt limitations prescribed in article IX, section 8, Constitution of Arizona.

C. Until December 31, 1999, a unified school district, as defined under article IX, section 8.1, Constitution of Arizona, may issue class A bonds for the purposes specified in this section and chapter 4, article 5 of this title to an amount in the aggregate, including the existing indebtedness, not exceeding thirty percent of the taxable property used for secondary property tax purposes, as determined pursuant to title 42, chapter 15, article 1, within a unified school district as ascertained by the last property tax assessment previous to issuing the bonds.

D. From and after December 31, 1998, a unified school district, as defined under article IX, section 8.1, Constitution of Arizona, may issue class B bonds for the purposes specified in this section and chapter 4, article 5 of this title to an amount in the aggregate, including the existing class B indebtedness, not exceeding twenty percent of the net assessed value of the full cash value of the property in that school district, or one thousand five hundred dollars per student count pursuant to section 15‑901, subsection A, paragraph 13, whichever amount is greater. A unified school district shall not issue class B bonds until the proceeds of any class A bonds issued by the unified school district have been obligated in contract. The total amount of class A and class B bonds issued by a unified school district shall not exceed the debt limitations prescribed in article IX, section 8.1, Constitution of Arizona.

E. No 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. No 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 joint 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 joint 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 joint career technical education district. If the facility is not owned by the joint career technical education district, an intergovernmental agreement or a written contract shall be executed for ten years or the duration of the bonded indebtedness, whichever is greater. The intergovernmental agreement or written contract shall include provisions:

1. That preserve the usage of the facility renovated or constructed, or both, only for career and technology programs operated by the joint career technical education district.

2. That include the process to be used by the participating district to compensate the joint career technical education district in the event that the facility is no longer used only for career and technical education programs offered by the joint 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 chapter 16, article 8 of this title, except for bonds issued to refund any bonds issued by the governing board.

I. For the purposes of this section, "full cash value" and "net assessed value" have the same meanings prescribed in section 42‑11001. END_STATUTE

Sec. 26. Section 15-1041, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1041. Student accountability information system

The student accountability information system is established to enable school districts, joint 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. END_STATUTE

Sec. 27. Section 15-1042, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1042. Student level data; timeline for submittal; confidentiality; definition

A. The department of education shall notify school districts, joint 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, joint career technical education districts and charter schools are required to submit. The department of education shall not make any changes to the student level data elements to be collected unless the student level data element has been reviewed and adopted by the data governance commission established by section 15‑249.01.

B. Each school district, joint career technical education district and charter school shall submit electronic data on a school by school school‑by‑school basis, including student level data, to the department of education in order for the school district, joint 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, joint career technical education district or charter school an extension to the deadline for the submission of student level data or may provide for an alternative method for the submission of student level data if the school district, joint career technical education district or charter school proves that good cause exists for the extension, and the school district, joint 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 for the submission of student level data pursuant to this subsection shall include a justification for the extension and the status of current efforts towards 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, joint 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, joint 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, joint 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, joint 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, joint 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 for the completion of the statutory requirements of the department of education and the state board of education relating to the calculation of funding for public education, the determination of 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. END_STATUTE

Sec. 28. Section 15-1043, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1043. 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, joint career technical education district or charter school.

C. The department of education shall adopt policies and procedures to allow access of student level data for currently enrolled students to school districts, joint career technical education districts and charter schools. END_STATUTE

Sec. 29. Section 15-1444, Arizona Revised Statutes, is amended to read:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

B. The district board may:

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

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

3. Sue and be sued.

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

5. Construct, remodel and repair buildings.

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

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

8. Accept grants or donations of monies from the United States, from or any of its agencies, departments or officers, from this state, political subdivisions of this state, from tribal governments, school districts, special taxing districts, or from persons, corporations, foundations or associations. A The district board shall deposit the monies into a specific fund or account and a district board shall administer the monies in accordance with the purpose of the grant or donation with specific policies or restrictions as described or stipulated in the grant or donation. In the case of personal property granted or donated to or for the benefit of a community college district, a 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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 30. Section 15-2041, Arizona Revised Statutes, is amended to read:

START_STATUTE15-2041. New school facilities fund; capital plan; report

A. The new school facilities fund is established consisting of monies appropriated by the legislature and monies credited to the fund pursuant to section 37‑221. The school facilities board shall administer the fund and distribute monies, as a continuing appropriation, to school districts for the purpose of constructing new school facilities and for contracted expenses pursuant to section 15‑2002, subsection B, paragraphs 2, 3 and 4. On June 30 of each fiscal year, any unobligated contract monies in the new school facilities fund shall be transferred to the capital reserve fund established by section 15‑2003.

B. The school facilities board shall prescribe a uniform format for use by the school district governing board in developing and annually updating a capital plan that consists of each of the following:

1. Enrollment projections for the next five years for elementary schools and eight years for middle and high schools, including a description of the methods used to make the projections.

2. A description of new schools or additions to existing schools needed to meet the building adequacy standards prescribed in section 15‑2011. The description shall include:

(a) The grade levels and the total number of pupils that the school or addition is intended to serve.

(b) The year in which it is necessary for the school or addition to begin operations.

3. Long‑term projections of the need for land for new schools.

4. Any other necessary information required by the school facilities board to evaluate a school district's capital plan.

5. If a school district pays tuition for all or a portion of the school district's high school pupils to another school district, the capital plan shall indicate the number of pupils for which the district pays tuition to another district. If a school district accepts pupils from another school district pursuant to section 15‑824, subsection A, the school district shall indicate the projections for this population separately. This paragraph does not apply to a small isolated school district as defined in section 15‑901.

C. If the capital plan indicates a need for a new school or an addition to an existing school within the next four years or a need for land within the next ten years, the school district shall submit its plan to the school facilities board by July 1 and shall request monies from the new school facilities fund for the new construction or land. The school facilities board may require a school district to sell land that was previously purchased entirely with monies provided by the school facilities board if the school facilities board determines that the property is no longer needed within the ten‑year period specified in this subsection for a new school or no longer needed within that ten‑year period for an addition to an existing school. Monies provided for land shall be in addition to any monies provided pursuant to subsection D of this section.

D. The school facilities board shall distribute monies from the new school facilities fund for additional square footage as follows:

1. The school facilities board shall review and evaluate the enrollment projections. On or before December 1 of each year, following the submission of the enrollment projections, the school facilities board shall either approve the projections as submitted or revise the projections. In approving or revising the enrollment projections, the school facilities board shall use the most recent fortieth day average daily membership data available during the current school year. On request from the school facilities board, the department of education shall make available the most recent average daily membership data for use in revising the enrollment projections. In determining new construction requirements, the school facilities board shall determine the net new growth of pupils that will require additional square footage that exceeds the building adequacy standards prescribed in section 15‑2011. If the projected growth and the existing number of pupils exceed three hundred fifty pupils who are served in a school district other than the pupil's resident school district, the school facilities board, the receiving school district and the resident school district shall develop a capital facilities plan on how to best serve those pupils. A small isolated school district as defined in section 15‑901 is not required to develop a capital facilities plan pursuant to this paragraph.

2. If the most recent fortieth day average daily membership during the current school year indicates that additional space would not have been needed during the current school year in order to meet the building adequacy standards prescribed in section 15‑2011, the request shall be held for consideration by the school facilities board for possible future funding and the school district shall annually submit an updated plan until the additional space is needed.

3. If the most recent fortieth day average daily membership during the current school year indicates that additional space would have been needed during the current school year in order to meet the building adequacy standards prescribed in section 15‑2011, the school facilities board shall provide an amount as follows:

(a) Determine the number of pupils requiring additional square footage to meet building adequacy standards. This amount for elementary schools shall not be less than the number of new pupils for whom space will be needed in the next year and shall not exceed the number of new pupils for whom space will be needed in the next five years. This amount for middle and high schools shall not be less than the number of new pupils for whom space will be needed in the next four years and shall not exceed the number of new pupils for whom space will be needed in the next eight years.

(b) Multiply the number of pupils determined in subdivision (a) of this paragraph by the square footage per pupil. The square footage per pupil is ninety square feet per pupil for preschool children with disabilities, kindergarten programs and grades one through six, one hundred square feet for grades seven and eight, one hundred thirty‑four square feet for a school district that provides instruction in grades nine through twelve for fewer than one thousand eight hundred pupils and one hundred twenty‑five square feet for a school district that provides instruction in grades nine through twelve for at least one thousand eight hundred pupils. The total number of pupils in grades nine through twelve in the district shall determine the square footage factor to use for net new pupils. The school facilities board may modify the square footage requirements prescribed in this subdivision for particular schools based on any of the following factors:

(i) The number of pupils served or projected to be served by the school district.

(ii) Geographic factors.

(iii) Grade configurations other than those prescribed in this subdivision.

(iv) Compliance with minimum school facility adequacy requirements established pursuant to section 15‑2011.

(c) Multiply the product obtained in subdivision (b) of this paragraph by the cost per square foot. The cost per square foot is ninety dollars for preschool children with disabilities, kindergarten programs and grades one through six, ninety‑five dollars for grades seven and eight and one hundred ten dollars for grades nine through twelve. The cost per square foot shall be adjusted annually for construction market considerations based on an index identified or developed by the joint legislative budget committee as necessary but not less than once each year. The school facilities board shall multiply the cost per square foot by 1.05 for any school district located in a rural area. The school facilities board may only modify the base cost per square foot prescribed in this subdivision for particular schools based on geographic conditions or site conditions. For the purposes of this subdivision, "rural area" means an area outside a thirty‑five‑mile radius of a boundary of a municipality with a population of more than fifty thousand persons.

(d) Once the school district governing board obtains approval from the school facilities board for new facility construction monies, additional portable or modular square footage created for the express purpose of providing temporary space for pupils until the completion of the new facility and any additional space funded by the school district shall not be included by the school facilities board for the purpose of new construction funding calculations. On completion of the new facility construction project, any additional space funded by the school district shall be included as prescribed by this chapter and, if the portable or modular facilities continue in use, the portable or modular facilities shall be included as prescribed by this chapter, unless the school facilities board approves their continued use for the purpose of providing temporary space for pupils until the completion of the next new facility that has been approved for funding from the new school facilities fund.

4. For projects approved after December 31, 2001, and notwithstanding paragraph 3 of this subsection, a unified school district that does not have a high school is not eligible to receive high school space as prescribed by section 15‑2011 and this section unless the unified district qualifies for geographic factors prescribed by paragraph 3, subdivision (b), item (ii) of this subsection.

5. If a joint career technical education district leases a building from a school district, that building shall be included in the school district's square footage calculation for the purposes of new construction pursuant to this section.

6. If a school district leases a building to another entity, that building shall be included in the school district's square footage calculation for purposes of new construction pursuant to this section.

7. A school district shall qualify for monies from the new school facilities fund for additional square footage in a fiscal year only if the school facilities board has approved or revised its enrollment projection under paragraph 3 of this subsection on or before March 1 of the prior fiscal year.

E. Monies for architectural and engineering fees, project management services and preconstruction services shall be distributed on the completion of the analysis by the school facilities board of the school district's request. After receiving monies pursuant to this subsection, the school district shall submit a design development plan for the school or addition to the school facilities board before any monies for construction are distributed. If the school district's request meets the building adequacy standards, the school facilities board may review and comment on the district's plan with respect to the efficiency and effectiveness of the plan in meeting state square footage and facility standards before distributing the remainder of the monies. If the school facilities board modifies the cost per square foot as prescribed in subsection D, paragraph 3, subdivision (c) of this section, the school facilities board may deduct the cost of project management services and preconstruction services from the required cost per square foot. The school facilities board may decline to fund the project if the square footage is no longer required due to revised enrollment projections.

F. The school facilities board shall distribute the monies needed for land for new schools so that land may be purchased at a price that is less than or equal to fair market value and in advance of the construction of the new school. If necessary, the school facilities board may distribute monies for land to be leased for new schools if the duration of the lease exceeds the life expectancy of the school facility by at least fifty percent. A school district shall not use land purchased or partially purchased with monies provided by the school facilities board for a purpose other than a site for a school facility without obtaining prior written approval from the school facilities board. A school district shall not lease, sell or take any action that would diminish the value of land purchased or partially purchased with monies provided by the school facilities board without obtaining prior written approval from the school facilities board. The proceeds derived through the sale of any land purchased or partially purchased, or the sale of buildings funded or partially funded, with monies provided by the school facilities board shall be returned to the state fund from which it was appropriated and to any other participating entity on a proportional basis. Except as provided in section 15‑342, paragraph 33, if a school district acquires real property by donation at an appropriate school site approved by the school facilities board, the school facilities board shall distribute an amount equal to twenty percent of the fair market value of the donated real property that can be used for academic purposes. The school district shall place the monies in the unrestricted capital outlay fund and increase the unrestricted capital budget limit by the amount of monies placed in the fund. Monies distributed under this subsection shall be distributed from the new school facilities fund. A school district that receives monies from the new school facilities fund for a donation of land pursuant to section 15‑342, paragraph 33 shall not receive monies from the school facilities board for the donation of real property pursuant to this subsection. A school district shall not pay a consultant a percentage of the value of any of the following:

1. Donations of real property, services or cash from any of the following:

(a) Entities that have offered to provide construction services to the school district.

(b) Entities that have been contracted to provide construction services to the school district.

(d) Entities that develop land for residential use in that school district.

2. Monies received from the school facilities board on behalf of the school district.

3. Monies paid by the school facilities board on behalf of the school district.

G. In addition to distributions to school districts based on pupil growth projections, a school district may submit an application to the school facilities board for monies from the new school facilities fund if one or more school buildings have outlived their useful life. If the school facilities board determines that the school district needs to build a new school building for these reasons, the school facilities board shall remove the square footage computations that represent the building from the computation of the school district's total square footage for purposes of this section. If the square footage recomputation reflects that the school district no longer meets building adequacy standards, the school district qualifies for a distribution of monies from the new school construction formula in an amount determined pursuant to subsection D of this section. The school facilities board may only modify the base cost per square foot prescribed in this subsection under extraordinary circumstances for geographic factors or site conditions.

H. School districts that receive monies from the new school facilities fund shall establish a district new school facilities fund and shall use the monies in the district new school facilities fund only for the purposes prescribed in this section. By October 15 of each year, each school district shall report to the school facilities board the projects funded at each school in the previous fiscal year with monies from the district new school facilities fund and shall provide an accounting of the monies remaining in the new school facilities fund at the end of the previous fiscal year.

I. If a school district has surplus monies received from the new school facilities fund, the school district may use the surplus monies only for capital purposes for the project for up to one year after completion of the project. If the school district possesses surplus monies from the new school construction project that have not been expended within one year of the completion of the project, the school district shall return the surplus monies to the school facilities board for deposit in the new school facilities fund.

J. The board's consideration of any application filed after December 31 of the year in which the property becomes territory in the vicinity of a military airport or ancillary military facility as defined in section 28‑8461 for monies to fund the construction of new school facilities proposed to be located in territory in the vicinity of a military airport or ancillary military facility shall include, if after notice is transmitted to the military airport pursuant to section 15‑2002 and before the public hearing the military airport provides comments and an analysis concerning compatibility of the proposed school facilities with the high noise or accident potential generated by military airport or ancillary military facility operations that may have an adverse effect on public health and safety, consideration and an analysis of the comments and an analysis provided by the military airport before making a final determination.

K. If a school district uses its own project manager for new school construction, the members of the school district governing board and the project manager shall sign an affidavit stating that the members and the project manager understand and will follow the minimum adequacy requirements prescribed in section 15‑2011.

L. The school facilities board shall establish a separate account in the new school facilities fund designated as the litigation account to pay attorney fees, expert witness fees and other costs associated with litigation in which the school facilities board pursues the recovery of damages for deficiencies correction that resulted from alleged construction defects or design defects that the school facilities board believes caused or contributed to a failure of the school building to conform to the building adequacy requirements prescribed in section 15‑2011. Attorney fees paid pursuant to this subsection shall not exceed the market rate for similar types of litigation. On or before December 1 of each year, the school facilities board shall report to the joint committee on capital review the costs associated with current and potential litigation that may be paid from the litigation account.

M. Until the state board of education and the auditor general adopt rules pursuant to section 15‑213, subsection I, the school facilities board may allow school districts to contract for construction services and materials through the qualified select bidders list method of project delivery for new school facilities pursuant to this section.

N. The school facilities board shall submit electronically a report on project management services and preconstruction services to the governor, the president of the senate and the speaker of the house of representatives by December 31 of each year. The report shall compare projects that use project management and preconstruction services with those that do not. The report shall address cost, schedule and other measurable components of a construction project. School districts, construction manager at risk firms and project management firms that participate in a school facilities board funded project shall provide the information required by the school facilities board in relation to this report.

O. If a school district constructs new square footage according to section 15‑342, paragraph 33, the school facilities board shall review the design plans and location of any new school facility submitted by school districts and another party to determine whether the design plans comply with the adequacy standards prescribed in section 15‑2011 and the square footage per pupil requirements pursuant to subsection D, paragraph 3, subdivision (b) of this section. When the school district qualifies for a distribution of monies from the new school facilities fund according to this section, the school facilities board shall distribute monies to the school district from the new school facilities fund for the square footage constructed under section 15‑342, paragraph 33 at the same cost per square foot established by this section that was in effect at the time of the beginning of the construction of the school facility. Before the school facilities board distributes any monies pursuant to this subsection, the school district shall demonstrate to the school facilities board that the facilities to be funded pursuant to this section meet the minimum adequacy standards prescribed in section 15‑2011. The agreement entered into pursuant to section 15‑342, paragraph 33 shall set forth the procedures for the allocation of these funds to the parties that participated in the agreement.

P. Accommodation schools are not eligible for monies from the new school facilities fund.

Q. If the school facilities board approves a school district for funding from the new school facilities fund and the full legislative appropriation is not available to the school district in the fiscal year following the approval by the school facilities board, the school district may use any legally available monies to pay for the land or the new construction project approved by the school facilities board and may reimburse the fund from which the monies were used in subsequent years with legislative appropriations when those appropriations are made available by this state. END_STATUTE

Sec. 31. Section 16-322, Arizona Revised Statutes, is amended to read:

START_STATUTE16-322. Number of signatures required on nomination petitions

A. Nomination petitions shall be signed by a number of qualified signers equal to:

1. If for a candidate for the office of United States senator or for a state office, excepting members of the legislature and superior court judges, at least one-fourth of one percent but not more than ten percent of the total number of qualified signers in the state.

2. If for a candidate for the office of representative in Congress, at least one‑half of one percent but not more than ten percent of the total number of qualified signers in the district from which such the representative shall be elected except that if for a candidate for a special election to fill a vacancy in the office of representative in Congress, at least one‑fourth of one percent but not more than ten percent of the total number of qualified signers in the district from which such the representative shall be elected.

3. If for a candidate for the office of member of the legislature, at least one‑half of one percent but not more than three percent of the total number of qualified signers in the district from which the member of the legislature may be elected.

4. If for a candidate for a county office or superior court judge, at least one percent but not more than ten percent of the total number of qualified signers in the county or district, except that if for a candidate from a county with a population of two hundred thousand persons or more, at least one‑fourth of one percent but not more than ten percent of the total number of qualified signers in the county or district.

5. If for a candidate for a community college district, at least one‑quarter of one percent but not more than ten percent of the total voter registration in the precinct as established pursuant to section 15‑1441. Notwithstanding the total voter registration in the community college district, the maximum number of signatures required by this subdivision paragraph is one thousand.

6. If for a candidate for county precinct committeeman, at least two percent but not more than ten percent of the party voter registration in the precinct or ten signatures, whichever is less.

7. If for a candidate for justice of the peace or constable, at least one percent but not more than ten percent of the number of qualified signers in the precinct.

8. If for a candidate for mayor or other office nominated by a city at large, at least five percent and not more than ten percent of the designated party vote in the city, except that a city that chooses to hold nonpartisan elections may provide by ordinance provide that the minimum number of signatures required for the candidate be one thousand signatures or five percent of the vote in the city, whichever is less, but not more than ten percent of the vote in the city.

9. If for an office nominated by ward, precinct or other district of a city, at least five percent and not more than ten percent of the designated party vote in the ward, precinct or other district, except that a city that chooses to hold nonpartisan elections may provide by ordinance that the minimum number of signatures required for the candidate be two hundred fifty signatures or five percent of the vote in the district, whichever is less, but not more than ten percent of the vote in the district.

10. If for a candidate for an office nominated by a town at large, by a number of qualified electors who are qualified to vote for the candidate whose nomination petition they are signing equal to at least five percent and not more than ten percent of the vote in the town, except that a town that chooses to hold nonpartisan elections may provide by ordinance that the minimum number of signatures required for the candidate be one thousand signatures or five percent of the vote in the town, whichever is less, but not more than ten percent of the vote in the town.

11. If for a candidate for a governing board of a school district or a joint career technical education district, at least one‑half of one percent of the total voter registration in the school district or joint career technical education district if the board members are elected at large or one percent of the total voter registration in the single member district if governing board members are elected from single member districts or one-half of one percent of the total voter registration in the single member district if joint career technical education district board members are elected from single member districts. Notwithstanding the total voter registration in the school district, joint career technical education district or single member district of the school district or joint career technical education district, the maximum number of signatures required by this paragraph is four hundred.

12. If for a candidate for a governing body of a special district as described in title 48, at least one‑half of one percent of the vote in the special district but not more than two hundred fifty and not fewer than five signatures.

B. The basis of percentage in each instance referred to in subsection A of this section, except in cities, towns and school districts, shall be the number of qualified signers as determined from the voter registration totals as reported pursuant to section 16‑168, subsection G on March 1 of the year in which the general election is held. In cities, the basis of percentage shall be the vote of the party for mayor at the last preceding election at which a mayor was elected. In towns, the basis of percentage shall be the highest vote cast for an elected official of the town at the last preceding election at which an official of the town was elected. In school districts or joint career technical education districts, the basis of percentage shall be the total number of active registered voters in the school district or joint career technical education district or single member district, whichever applies. The total number of active registered voters for school districts or joint career technical education districts shall be calculated using the periodic reports prepared by the county recorder pursuant to section 16‑168, subsection G. The count that is reported on March 1 of the year in which the general election is held shall be the basis for the calculation of total voter registration for school districts or joint career technical education districts.

C. In primary elections the signature requirement for party nominees, other than nominees of the parties entitled to continued representation pursuant to section 16‑804, is at least one‑tenth of one percent of the total vote for the winning candidate or candidates for governor or presidential electors at the last general election within the district. Signatures must be obtained from qualified electors who are qualified to vote for the candidate whose nomination petition they are signing.

D. If new boundaries for congressional districts, legislative districts, supervisorial districts, justice precincts or election precincts are established and effective subsequent to March 1 of the year of a general election and prior to before the date for filing of nomination petitions, the basis for determining the required number of nomination petition signatures is the number of qualified signers in the elective office, district or precinct on the day the new districts or precincts are effective. END_STATUTE

Sec. 32. Section 32-4201, Arizona Revised Statutes, is amended to read:

START_STATUTE32-4201. Definitions

In this chapter, unless the context otherwise requires:

1. "Board" means the board of massage therapy.

2. "Board recognized school" means a school that is any of the following:

(a) Accredited to offer massage therapy education by an agency recognized by the secretary of the United States department of education.

(b) If located in this state, offered by a community college or approved by the state board for private postsecondary education.

(c) If located in another state or a Canadian province, approved by an agency similar to the state board for private postsecondary education.

(d) A joint career technical education district program that is offered by a joint career technical education district as defined by in section 15‑391.

3. "Bodywork therapy" means massage therapy.

4. "Massage therapist" means a person who is licensed under this chapter to engage in the practice of massage therapy.

5. "Massage therapy" means the following that are undertaken to increase wellness, relaxation, stress reduction, pain relief and postural improvement or provide general or specific therapeutic benefits:

(a) The manual application of compression, stretch, vibration or mobilization of the organs and tissues beneath the dermis, including the components of the musculoskeletal system, peripheral vessels of the circulatory system and fascia, when applied primarily to parts of the body other than the hands, feet and head.

(b) The manual application of compression, stretch, vibration or mobilization using the forearms, elbows, knees or feet or handheld mechanical or electrical devices.

(d) Hydrotherapy, including the therapeutic applications of water, heat, cold, wraps, essential oils, skin brushing, salt glows and similar applications of products to the skin.

6. "Practice of massage therapy" means the application of massage therapy to any person for a fee or other consideration. Practice of massage therapy does not include the diagnosis of illness or disease, medical procedures, naturopathic manipulative medicine, osteopathic manipulative medicine, chiropractic adjustive procedures, homeopathic neuromuscular integration, electrical stimulation, ultrasound, prescription of medicines or the use of modalities for which a license to practice medicine, chiropractic, nursing, occupational therapy, athletic training, physical therapy, acupuncture or podiatry is required by law. END_STATUTE

Sec. 33. Section 32-4228, Arizona Revised Statutes, is amended to read:

START_STATUTE32-4228. Massage therapy schools; recognition

A. The board shall recognize a school of massage therapy located in this state if it is approved by the state board for private postsecondary education, is accredited to offer massage therapy education by an agency recognized by the secretary of the United States department of education or is a joint career technical education district program that is offered by a joint career technical education district as defined by in section 15‑391.

B. The board shall recognize a school of massage therapy located in another state or a Canadian province if it is accredited or approved by an agency similar to the state board for private postsecondary education or it is accredited to offer massage therapy education by an agency recognized by the secretary of the United States department of education.

C. Each school of massage therapy that is located in this state and that receives approval from the state board for private postsecondary education shall report to the board of massage therapy:

1. The physical address of the school and each instructional facility maintained or operated by the school.

2. All faculty and instructional staff, and all additions to or deletions from the faculty and staff.

D. The board shall maintain a list of recognized schools. END_STATUTE

Sec. 34. Section 35-701, Arizona Revised Statutes, is amended to read:

START_STATUTE35-701. Definitions

In this chapter, unless the context otherwise requires:

1. "Corporation" means any corporation organized as an authority as provided in this chapter.

2. "Governing body" means:

(a) The board or body in which the general legislative powers of the municipality or the county are vested.

(b) The Arizona board of regents with respect to a corporation formed with the permission of the Arizona board of regents.

3. "Income" means gross earnings from wages, salary, commissions, bonuses or tips from all jobs, net earnings from such person's or family's own nonfarm business, professional practice or partnership, and net earnings from such person's or family's own farm. Income includes income, other than earnings, that consists of amounts received from social security or railroad retirement, interest, dividends, veterans payments, pensions and other regular payments, public assistance or welfare payments, including aid for dependent children, old age assistance and aid to the blind or persons with total disability, but excluding separate payments for hospital or other medical care.

4. "Manufactured house" means a structure that is manufactured in a factory after June 15, 1976, that is delivered to a homesite in more than one section and that is placed on a permanent foundation. The dimensions of the completed house shall not be less than twenty feet by forty feet, the roof must be sloping, the siding and roofing must be the same as those found in site‑built houses and the house must be eligible for thirty year thirty‑year real estate mortgage financing.

5. "Municipality" or "county" means the Arizona finance authority, the Arizona board of regents or any incorporated city or town, including charter cities, or any county in this state in which a corporation may be organized and in which it is contemplated the corporation will function.

6. "Persons of low and moderate income" means, for the purposes of financing owner‑occupied single family dwelling units in areas that the municipality has found, pursuant to section 36‑1479, to be slum or blighted areas, as defined in section 36‑1471, persons and families whose income does not exceed two and one‑half times the median family income of this state. In all other areas it means persons and families whose income does not exceed one and one‑half times the median family income of this state.

7. "Project" means any land, any building or any other improvement and all real and personal properties, including machinery and equipment whether or not now in existence or under construction and whether located within or without this state or the municipality or county approving the formation of the corporation, that are suitable for any of the following:

(a) With respect to a corporation formed with the permission of the Arizona finance authority, a municipality or a county other than the Arizona board of regents:

(i) Any enterprise for the manufacturing, processing or assembling of any agricultural or manufactured products.

(ii) Any commercial enterprise for the storing, warehousing, distributing or selling of products of agriculture, mining or industry, or of processes related thereto, including research and development.

(iii) A health care institution as defined in section 36‑401.

(iv) Residential real property for dwelling units located within the municipality or county approving the formation of the corporation and, in the case of a county, whether or not also within a municipality that is within the county.

(v) Repairing or rehabilitating single family dwelling units or constructing or repairing residential fences and walls.

(vi) Convention or trade show facilities.

(vii) Airports, docks, wharves, mass commuting facilities, parking facilities or storage or training facilities directly related to any of the facilities as provided in this item.

(viii) Sewage or solid waste disposal facilities or facilities for the furnishing of electric energy, gas or water.

(ix) Industrial park facilities.

(x) Air or water pollution control facilities.

(xi) Any educational institution that is operated by a nonprofit educational organization that is exempt from taxation under section 501(c)(3) of the United States internal revenue code and that is not otherwise funded by state monies, any educational institution or organization that is established under title 15, chapter 1, article 8 and that is owned by a nonprofit organization, any private nonsectarian school or any private nonsectarian organization established for the purpose of funding a joint career technical education school district.

(xii) Research and development facilities.

(xiii) Any commercial enterprises, including facilities for manufacturing, office, recreational, hotel, motel and service uses.

(xiv) A child welfare agency, as defined in section 8‑501, owned and operated by a nonprofit organization.

(xv) A transportation facility constructed or operated pursuant to title 28, chapter 22.

(xvi) A museum operated by a nonprofit organization.

(xvii) Facilities owned or operated by a nonprofit organization described in section 501(c) of the United States internal revenue code of 1986.

(xviii) New or existing correctional facilities within this state.

(b) With respect to a corporation formed with the permission of the Arizona board of regents, any facility consisting of classrooms, lecture halls or conference centers or any facility for research and development or for manufacturing, processing, assembling, marketing, storing and transferring items developed through or connected with research and development or in which the results of such research and development are utilized, but only if the facility is located in an area designated as a research park by the Arizona board of regents.

8. "Property" means any land, improvements thereon, buildings and any improvements thereto, machinery and equipment of any and all kinds necessary to a project and any other personal properties deemed necessary in connection with a project.

9. "Research park" means an area of land that has been designated by the Arizona board of regents as a research park for a university and that, at the date of designation, is owned by this state or by the Arizona board of regents.

10. "Single family dwelling unit" includes any new, used or manufactured house that meets the insuring requirements of the federal housing administration, the United States department of veterans affairs or any other insuring entity of the United States government or any private mortgage insurance or surety company that is approved by the federal home loan mortgage corporation or the federal national mortgage association. END_STATUTE

Sec. 35. Section 43-1089.01, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1089.01. Tax credit; public school fees and contributions; definitions

A. A credit is allowed against the taxes imposed by this title for the amount of any fees paid or cash contributions made by a taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G during the taxable year to a public school located in this state for the following activities or programs of the public school purposes:

1. Standardized testing for college credit or readiness offered by a widely recognized and accepted educational testing organization.

2. The career and technical education industry certification assessment.

3. Preparation courses and materials for standardized testing.

4. Cardiopulmonary resuscitation training pursuant to section 15‑718.01.

5. Extracurricular activities.

6. Character education programs.

B. The amount of the credit shall not exceed:

1. Two hundred dollars for a single individual or a head of household.

2. Four hundred dollars for a married couple filing a joint return.

C. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one‑half of the tax credit that would have been allowed for a joint return.

D. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.

E. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.

F. The site council of the public school that receives contributions that are not designated for a specific purpose shall determine how the contributions are used at the school site. If a charter school does not have a site council, the principal, director or chief administrator of the charter school shall determine how the contributions that are not designated for a specific purpose are used at the school site. If at the end of a fiscal year a public school has unspent contributions that were previously designated for a specific purpose or program and that purpose or program has been discontinued or has not been used for two consecutive fiscal years, these contributions shall be considered undesignated in the following fiscal year for the purposes of this subsection.

G. A public school that receives fees or a cash contribution pursuant to subsection A of this section shall report to the department, in a form prescribed by the department, by February 28 of each year the following information:

1. The total number of fee and cash contribution payments received during the previous calendar year.

2. The total dollar amount of fees and contributions received during the previous calendar year.

3. The total dollar amount of fees and contributions spent by the school during the previous calendar year, categorized by specific standardized testing, preparation courses and materials for standardized testing, extracurricular activity or character education program.

H. For the purposes of this section, a contribution for which a credit is claimed and that is made on or before the fifteenth day of the fourth month following the close of the taxable year may be applied to either the current or preceding taxable year and is considered to have been made on the last day of that taxable year.

I. For the purposes of this section:

1. "Career and technical education industry certification assessment" means an assessment for career and technical preparation programs for pupils.

2. "Character education programs" means a program described in section 15‑719.

3. "Extracurricular activities" means school‑sponsored activities that may require enrolled students to pay a fee in order to participate, including fees for:

(a) Band uniforms.

(b) Equipment or uniforms for varsity athletic activities.

(d) In‑state or out‑of‑state trips that are solely for competitive events. Extracurricular activities do not include any senior trips or events that are recreational, amusement or tourist activities.

4. "Public school" means a school that is part of a school district, a joint career technical education district or a charter school.

5. "Standardized testing for college credit or readiness" includes the SAT, PSAT, ACT, advanced placement and international baccalaureate diploma tests and other similar tests.

6. "Widely recognized and accepted educational testing organization" means the college board, the ACT, the international baccalaureate and other organizations that are widely recognized and accepted by colleges and universities in the United States and that offer college credit and readiness examinations. END_STATUTE