HB2725 - 542R

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

Section 1. Section 15-825, Arizona Revised Statutes, is amended to read:

START_STATUTE15-825. Certificate of educational convenience; issuance; effect on enrollment records

A. A pupil who is precluded by distance, or a lack of adequate transportation facilities or a parent's or guardian's employment from attending a school in the school district or county of the pupil's residence or and who resides within a school district that is proximate to a school district in an adjacent state or in unorganized territory may that is proximate to a school district in an adjacent state shall apply to the county school superintendent pupil's school district of residence, or for a pupil who resides in unorganized territory the school district that serves that unorganized territory, for a certificate of educational convenience. A school district that receives an application pursuant to this subsection shall submit the completed application to the county school superintendent electronically, in person or by regular mail. If it appears to the county school superintendent that it is not feasible for the pupil to attend a school in the school district or county of residence or the school district that serves pupils in the unorganized territory, as applicable, the county school superintendent shall issue a certificate authorizing the pupil to attend a school in an adjoining school district or county, whether within or without outside of this state. If a certificate of educational convenience is issued as provided in this subsection, the school enrollment of a pupil is as follows:

1. the school enrollment of a the pupil who is precluded from attending a school in this state and who must attend school in another state, when certified to the county school superintendent by the official in charge of the school attended, is deemed for the purpose of determining student count to be enrollment in the school of the county or school district of the student's pupil's residence or, for a pupil who resides in unorganized territory, the school district that serves that unorganized territory.

2. The school enrollment of a pupil from unorganized territory or from another school district is deemed for the purpose of determining student count to be enrollment in the school district of actual attendance. Before the certificate of educational convenience is issued, the school district of actual attendance shall both:

1. Enter into an agreement to share pupil attendance records with the school district of the pupil's residence or, for a pupil who resides in unorganized territory, the school district that serves that unorganized territory.

2. Enter into an agreement with the school district of the pupil's residence, or for a pupil who resides in unorganized territory the school district that serves the unorganized territory, that provides that the school district of actual attendance will provide funding for any student who resides within the school district of actual attendance and who attends a school in this state that is in the school district with which the school district of actual attendance is entering an agreement.

B. The county school superintendent of any county in which a pupil is placed as described in this subsection shall issue a certificate of educational convenience for the pupil to attend school in the school district or adjoining school district to that in which the pupil is placed by an agency of this state or a state or federal court of competent jurisdiction, if that school district or adjoining school district is in this state, in one of the following:

1. A state rehabilitation or corrective institution.

2. A foster home or child care agency or institution which that is licensed and supervised by the department of child safety or the department of health services.

3. A residential facility operated or supported by the department of economic security or the department of health services.

4. Under the supervision of the department of juvenile corrections in a residence pursuant to the interstate compact on juveniles. Notwithstanding section 41‑1959, the placing agency, department or institution shall provide the school district of attendance with the necessary information to enable the district to obtain a certificate of educational convenience pursuant to this subsection.

C. A pupil attending school under a certificate of educational convenience issued pursuant to subsection B of this section is deemed for the purpose of determining student count to be enrolled in the school district of attendance. The county school superintendent of any county shall not issue a certificate of educational convenience as provided in subsection B of this section if the pupil is placed in the same district of the pupil's parents' or legal guardians' residence or if the pupil is placed without a court order and the pupil's parents or legal guardians are not residents of this state.

D. If a certificate of educational convenience is issued as provided in subsection B of this section, or for a pupil whose parent or guardian is employed and domiciled by a state institution as prescribed by section 15‑976, tuition may be charged as follows:

1. For group B children with disabilities:

(a) Who are from unorganized territory, whose parent or guardian is employed by a state institution as prescribed by section 15‑976 or who have been issued a certificate of educational convenience pursuant to subsection B of this section, the superintendent of public instruction shall reimburse the district of attendance for the excess costs as provided in section 15‑824, subsection E, paragraph 4.

(b) Who are from another school district, the school district of residence shall reimburse the district of attendance for the excess costs as provided in section 15‑824, subsection E, paragraph 4.

2. For pupils who are precluded from attending a school in this state and who must attend a school in another state:

(a) If the pupil resides in a school district in this state, the district of residence shall pay the amount charged by the district of attendance.

(b) If the pupil resides in unorganized territory, the superintendent of public instruction shall pay the amount charged by the district of attendance.

E. The county school superintendent who issues a certificate of educational convenience shall notify the superintendent of public instruction of the issuance of the certificate. If a certificate of educational convenience is issued as provided in subsection B of this section, the superintendent of public instruction shall draw a warrant in favor of the school district of actual attendance for the amount charged, whether for common or high school attendance, as provided in section 15‑824.

F. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for certificates of educational convenience shall not exceed the amount appropriated or authorized by section 35‑173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose. END_STATUTE

Sec. 2. Section 15-825.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-825.01. Certificates of educational convenience; pupils attending out‑of‑state schools

A. A school district is eligible to receive payment from state school monies for excess tuition, including group B funding for children with disabilities, if the following conditions are met:

1. The county school superintendent issues a certificate of educational convenience pursuant to section 15‑825, subsection A, for one or more pupils who reside in the district to attend a school in an adjacent state which is proximate to the school district when the pupils are precluded by distance or lack of adequate transportation facilities from attending a school in the school district or county of the pupils' residence.

2. The superintendent of public instruction determines that the development of an interstate compact with another state or an intergovernmental agreement between the sending and receiving school districts, which provides for tuition‑free attendance in the receiving district, is impracticable or not in the best interests of this state.

3. The total amount of tuition charged by the receiving district is greater than the equalization base amount as determined by section 15‑971, subsection A, for all of the pupils for whom tuition is being paid pursuant to paragraph 1 of this subsection.

B. The excess tuition payment shall be calculated as follows:

1. Determine the amount of tuition being charged by the receiving district for pupils attending the district pursuant to subsection A, paragraph 1 of this section.

2. Determine the lesser of the amount determined in paragraph 1 of this subsection or the guaranteed tuition level. The guaranteed tuition level for the receiving district shall be determined for the tuitioned pupils by the department of education based upon the receiving state's school finance formula or the actual costs of educating pupils in the receiving district, whichever is appropriate.

3. Subtract the equalization base amount as provided in subsection A, paragraph 3 of this section, from the amount determined in paragraph 2 of this subsection.

3. The school district of the pupil's residence, or for a pupil who resides in unorganized territory the school district that serves that unorganized territory, has agreed to pass along to the school district of actual attendance any funding that the school district receives for any pupil who attends school in an adjacent state under a certificate of educational convenience pursuant to section 15‑825, subsection A. The school district of the pupil's residence, or for a pupil who resides in unorganized territory the school district that serves that unorganized territory, may charge the school district of actual attendance for any indirect costs associated with educating pupils attending school under a certificate of educational convenience pursuant to section 15‑825, subsection A. Section 15‑825, subsection F applies to this paragraph.

C. B. The excess tuition payment Funding for pupils attending school under a certificate of educational convenience pursuant to section 15‑825, subsection A is exempt from the revenue control limit as provided in section 15‑947. END_STATUTE

Sec. 3. Section 15-947, Arizona Revised Statutes, is amended to read:

START_STATUTE15-947. Revenue control limit; district support level; general budget limit; unrestricted total capital budget limit; district additional assistance limit

A. The revenue control limit for a school district is equal to the sum of the base revenue control limit determined in section 15‑944 and the transportation revenue control limit determined in section 15‑946.

B. The district support level for a school district is equal to the sum of the base support level determined in section 15‑943 and the transportation support level determined in section 15‑945.

C. The general budget limit for each school district, for each fiscal year, is the sum of the following:

1. The maintenance and operations portion of the revenue control limit for the budget year.

2. The maintenance and operation portion of the following amounts:

(a) Amounts that are fully funded by revenues other than a levy of taxes upon on the taxable property within the school district, as listed below:

(i) Amounts budgeted as the budget balance carryforward as provided in section 15‑943.01.

(ii) Tuition revenues for attendance of nonresident pupils.

(iii) State assistance as provided in section 15‑976.

(iv) Special education revenues as provided in section 15‑825, subsection D and section 15‑1204.

(v) Title VIII of the elementary and secondary education act of 1965 assistance determined for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703 as provided in section 15‑905, subsections K and O.

(vi) Title VIII of the elementary and secondary education act of 1965 administrative costs as provided in section 15‑905, subsection P.

(vii) State assistance for excess tuition funding for pupils attending school under a certificate of educational convenience pursuant to section 15‑825, subsection A as provided in section 15‑825.01.

(viii) Transportation revenues for attendance of nonresident pupils.

(b) Amounts approved pursuant to an override election as provided in section 15‑481 for the applicable fiscal year.

(d) Expenditures for complying with a court order of desegregation as provided in section 15‑910.

(e) Expenditures for the bond issues portion of the cost of tuition as provided in section 15‑910.

(f) Interest on registered warrants or tax anticipation notes as provided in section 15‑910.

(g) Amounts budgeted for a jointly owned and operated career and technical education and vocational education center as provided in section 15‑910.01.

3. The maintenance and operations portion of district additional assistance for the budget year.

4. Any other budget item that is budgeted in the maintenance and operation section of the budget and that is specifically exempt from the revenue control limit or district additional assistance.

D. The unrestricted capital budget limit, for each school district for each fiscal year, is the sum of the following:

1. The federal impact adjustment as determined in section 15‑964 for the budget year.

2. Any other budget item that is budgeted in the capital outlay section of the budget and that is specifically exempt from district additional assistance.

3. The unrestricted capital portion of the amounts contained in subsection C of this section.

4. The unexpended budget balance in the unrestricted capital outlay fund from the previous fiscal year.

5. The net interest earned in the unrestricted capital outlay fund from the previous fiscal year.END_STATUTE