HB2435 - 551R

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

Section 1. Section 15-421, Arizona Revised Statutes, is amended to read:

START_STATUTE15-421. Governing board; members; qualifications; statement; definitions

A. The governing body of a school district shall be a governing board. There shall be three governing board members, except as otherwise provided by this section and section 15‑425, subsection A.

B. The governing body of a high school district shall be a governing board composed of:

1. In a single district, the governing board members of the common school district.

2. In a union high school district, five members.

C. A person who is a registered voter of this state and has been a resident of the school district for at least one year immediately preceding the day of election is eligible for election to the office of governing board member.

D. No An employee of a school district, including a person who directly provides certified or classified services to the school district as an employee of a third‑party contractor, or the spouse of such an employee may not hold membership on a the governing board of a school district by which the employee is employed.

E. A member of one governing board is ineligible to be a candidate for nomination or election to or serve simultaneously as a member of any other governing board, except that a member of a governing board may be a candidate for nomination or election for any other governing board if the member is serving in the last year of a term of office. A member of a governing board shall resign the member's seat on the governing board before becoming a candidate for nomination or election to the governing board of any other school district, unless the member of the governing board is serving in the last year of a term of office.

F. Notwithstanding section 15‑511, each county school superintendent shall publish on the superintendent's website the statement of each certified candidate for membership on a school district governing board located in the county. The county school superintendent shall list each school district on the superintendent's website from which a link shall be established to the candidate's name, which shall link to the candidate's statement and photograph. The candidate shall submit the statement to the person at the county school superintendent's office assigned to manage candidate statements, after notice of certification from the county school superintendent's office but not later than twenty‑one days before the date that general election early ballots are allowed to be mailed. The person shall post each candidate's statement on the county school superintendent's website not later than fourteen days before the date that general election early ballots are allowed to be mailed. If a candidate does not submit a statement, the county school superintendent's website shall state "no response submitted" for the candidate. The candidate statements shall be posted on the website alphabetically by each school district and by candidate. The candidate statement shall be typewritten or electronically submitted. The county school superintendent shall post the statements verbatim as they are received unless a candidate requests in writing that typographical errors be corrected. The candidate statement shall contain the following items in the same size and format for each candidate:

1. A recent photograph of the candidate.

2. A statement not to exceed five hundred words.

3. A disclosure of any relationships by affinity, by consanguinity or by law to the third degree that exist between the candidate and any current governing board members or other candidates for election to the same governing board.

G. Persons related as immediate family who have the same household of residence within four years prior shall not serve simultaneously on the governing board of the same school district if the governing board is composed of five members. For a school district with a student count of at least two hundred fifty and that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall serve simultaneously on the governing board of the same school district if the governing board is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

H. A person related as immediate family who has the same household of residence within four years prior to a member of the governing board of the same school district is ineligible to be a candidate for nomination or election to that governing board if the governing board is composed of five members, except that a person related as immediate family who has the same household of residence within four years prior to a member of a governing board may be a candidate for nomination or election to the governing board of the same school district if the member is serving in the last year of a term of office. For a school district with a student count of at least two hundred fifty and that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall be eligible to be a candidate for nomination or election to a governing board that is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

I. Persons related as immediate family who have the same household of residence within four years prior are ineligible to be simultaneous candidates for nomination or election to the governing board of the same school district if the governing board is composed of five members. For a school district with a student count of at least two hundred fifty and that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall be simultaneous candidates for nomination or election to a governing board that is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

J. A simple majority of school district governing board members must be parents, guardians or grandparents of a child currently attending a school in the school district. The other members of the school district governing board may be at-large members with any background. The membership of the school district governing board shall be as follows:

1. Of all the candidates who are parents, guardians or grandparents of a child currently attending a school in the school district:

(a) For a five-member school district governing board, the three candidates receiving the highest number of votes are elected to the school district governing board.

(b) For a three-member school district governing board, the two candidates receiving the highest number of votes are elected to the school district governing board.

2. Of all the remaining candidates, including those candidates who are parents, guardians or grandparents of a child currently attending a school in the school district but who are not elected under paragraph 1 of this subsection:

(a) For a five-member school district governing board, the two candidates receiving the highest number of votes are elected to the school district governing board.

(b) For a three-member school district governing board, the candidate receiving the highest number of votes is elected to the school district governing board.

J. K. For the purposes of this section:

1. "Household of residence" means the place of abode during applicable time periods or the residence address used by an individual for voter registration or property tax purposes.

2. "Immediate family" means individuals who are married to each other and any children of those individuals. END_STATUTE

Sec. 2. Section 15-424, Arizona Revised Statutes, is amended to read:

START_STATUTE15-424. Election of governing board members; terms; statement of contributions and expenditures

A. A regular election shall be held for each school district at the time and place, and in the manner, of general elections as provided in title 16.

B. Except as provided in subsection C of this section and sections 15‑429 and 15‑430, the term of office for each member shall be is four years from January 1 next following the member's election. A person is not eligible to serve more than two consecutive terms on a school district governing board, except that if there is an insufficient number of candidates to fill the governing board vacancies, the county school superintendent may appoint a governing board member who has served two consecutive terms to serve on the governing board until the next election. After serving the maximum number of terms on a school district governing board, including any part of a term served, a person may not serve again on the school district governing board until the person has been out of office for at least one full term.

C. At the first general election held for a newly formed district, three members shall be elected. The candidate receiving the highest number of votes shall be elected to a four year term, and the candidates having the second and third highest number of votes shall be elected to two year terms. A district increasing its governing board to five members shall elect at the next general election members in the following manner:

1. If one of the previous three offices is to be filled, the three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.

2. If two of the previous three offices are to be filled, the candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms. The candidate receiving the fourth highest number of votes shall be elected to a two year term. Thereafter all such offices shall have four year terms.

D. If only one person files a nominating petition or nomination paper for a write‑in candidate for an election to fill a district office, the board of supervisors, no not earlier than seventy‑five days before the election, may cancel the election for the position and appoint the person who filed the nominating petition or nomination paper to fill the position. If no person files a nominating petition or nomination paper for an election to fill a district office, the board of supervisors, no not earlier than seventy‑five days before the election, may cancel the election for that office and that office is deemed vacant and shall be filled as provided in section 15‑302. A person who is appointed pursuant to this subsection is fully vested with the powers and duties of the office as if elected to that office.

E. If two or more candidates receive an equal number of votes for the same office, and a higher number than any other candidate for that office, whether upon on the tally by the school election board or canvass of returns by the board of supervisors, or upon on recount by a court, the officer or board whose duty it is to declare the result shall determine by lot and in the presence of the candidates which candidate shall be declared elected.

F. Position of the names of candidates for each office shall be rotated so that each candidate occupies each position on the ballot an equal number of times, insofar as is possible, for each ballot style. For candidates seeking election to fill a vacancy on the governing board, the ballot shall be designated as provided in section 16‑502.

G. This section does not require that a school election at which no member is to be elected be held on a general election day.

H. All candidates for the office of school district governing board member shall file with the county school superintendent a statement of contributions and expenditures as provided in section 16‑926. END_STATUTE

Sec. 3. Section 15-425, Arizona Revised Statutes, is amended to read;

START_STATUTE15-425. Election to determine whether membership of governing board shall increase to five members; form of ballot; reconsideration procedure if negative vote; appointment or election of new members

A. A qualified elector of a school district may submit to the county school superintendent a petition, signed by not less than ten per cent of the qualified school electors of the district, requesting the county school superintendent to call a special election to determine whether or not the number of members of the governing board for the school district should be increased to five. Upon receipt of the petition, in proper form and with the necessary signatures, the county school superintendent shall thereafter call a special election not later than ninety days prior to the general election to determine the question of whether the membership of the governing board for the school district shall be increased to five.

B. Public notices of a special election called to determine whether there shall be five governing board members shall be posted in not less than three public places in the district at least ten days prior to the election. The election shall be held as prescribed by the county school superintendent and electors shall possess the qualifications as prescribed for the election of governing board members.

C. The ballots shall contain the words: "Five governing board members, yes. Five governing board members, no."

D. If the majority of the electors voting on the question votes in the affirmative, the school district shall elect five governing board members, as provided in section 15‑424. If the majority of the electors voting on the question of increasing the number of governing board members votes in the negative, the question shall not again be placed upon the ballot of an election in the district until the lapse of one year from the date of such election.

E. Notwithstanding section 15‑424 and subsection D of this section, if the voters approve an increase in the size of the governing board at least one year before the next general election, the county school superintendent may appoint the two new members or call a special election pursuant to section 15‑302.

F. The term of the two new members appointed by the county school superintendent or elected through a special election expires January 1 following the next general election. At the first general election following the increase in the size of the governing board, the candidates elected and their terms shall be determined pursuant to section 15‑424, subsection C four years. END_STATUTE

Sec. 4. Section 15-427, Arizona Revised Statutes, is amended to read:

START_STATUTE15-427. Governing board of a union high school district; terms

A. The members of the governing board of a union high school district shall be qualified school electors of the district. Members shall be elected from the union high school district at large except as provided in section sections 15-421 and 15‑431.

B. The term of office of the members of the union high school district governing board shall be is four years. , except:

1. Upon formation of a union high school district, the governing board shall be appointed by the county school superintendent and shall hold office until January 1 following the next general election.

2. At the first general election after formation of the district, members shall be elected in the following manner:

(a) The three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.

(b) The two candidates receiving the fourth and fifth highest number of votes shall be elected for two year terms. Thereafter all such offices shall have four year terms. END_STATUTE

Sec. 5. Section 15-429, Arizona Revised Statutes, is amended to read:

START_STATUTE15-429. Election of governing board members of a joint common school district

A. A joint common school district shall be governed by a board of five members, one of whom shall reside in and be elected from each of the counties comprising the district and the remaining number shall reside in the district and be elected at large, except as prescribed in section 15‑421, unless the district has implemented an alternative election system as provided in section 15‑431. Within ten days after the creation of the joint common school district, the county school superintendent of the jurisdictional county, after notifying the county school superintendent of any other county whose territory, or a portion thereof, is in the new district, shall call a special election, which shall be held within twenty days after the issuance of such call, to elect a governing board for the joint common school district. The polling places for the election shall be located in each county of the district. The election shall be conducted as provided by law for other school districts, except that the members first elected shall serve until January 1 following the next general election. At the general election held next following the special election, and thereafter, the members shall be elected as prescribed for five member boards in sections 15‑424 and 15‑427.

B. The county school superintendent shall call the first meeting of the newly formed governing board within ten days after its election. Each member shall be given five days' written notice in advance of the meeting. The meeting shall be held at a location convenient to all members. Business shall be conducted as provided by law for the conduct of school districts. END_STATUTE

Sec. 6. Section 15-448, Arizona Revised Statutes, as amended by Laws 2014, chapter 211, section 2, is amended to read:

START_STATUTE15-448. Formation of unified school district; board membership; budget

A. One or more common school districts and a high school district with coterminous or overlapping boundaries may establish a unified school district pursuant to this section. Unification of a common school district and a high school district is not authorized by this section if any of the high school facilities owned by the new unified school district would not be located within its boundaries.

B. Formation of a unified school district shall be by resolutions approved by the governing boards of the unifying school districts and certification of approval by such governing boards to the county school superintendent of the county or counties in which such individual school districts are located. A common school district and high school district that unify pursuant to this section shall not exclude from the same unification a common school district that has overlapping boundaries with the high school district and that wishes to unify. Except as provided in subsection D of this section, the formation of a unified school district shall become becomes effective on July 1 of the next fiscal year following the certification of the county school superintendent. An election shall is not be required to form a unified school district pursuant to this section. At least ninety days before the governing boards vote on the resolutions prescribed in this subsection, the governing boards shall mail a pamphlet to each household with one or more qualified electors that shall list lists the full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed unification for each of the following:

1. An owner occupied owner-occupied residence whose assessed valuation is the average assessed valuation of property classified as class three, as prescribed by section 42‑12003 for the current year in the school district.

2. An owner occupied owner-occupied residence whose assessed valuation is one-half of the assessed valuation of the residence in paragraph 1 of this subsection.

3. An owner occupied owner-occupied residence whose assessed valuation is twice the assessed valuation of the residence in paragraph 1 of this subsection.

4. A business whose assessed valuation is the average of the assessed valuation of property classified as class one, as prescribed by section 42‑12001, paragraphs 12 and 13 for the current year in the school district.

C. The boundaries of the unified school district shall be the boundaries of the former common school district or districts that unify. The boundaries of the common school district or districts that are not unifying remain unchanged. The county school superintendent, immediately on receipt of the approved resolutions prescribed by subsection B of this section, shall file with the board of supervisors, the county assessor and the superintendent of public instruction a transcript of the boundaries of the unified school district. The boundaries shown in the transcript shall become the legal boundaries of the school districts on July 1 of the next fiscal year.

D. On formation of the unified school district, the governing board consists of the members of the former school district governing boards and the members shall hold office until January 1 following the first general election after formation of the district. For the purpose of all actions that are necessary for the operation of to operate the unified district for the next year, the unified school district governing board is constituted and may conduct meetings after the adoption of the unification resolutions prescribed by subsection B of this section.

E. Beginning on January 1 following the first general election after formation of the unified school district, the governing board shall have five members. At the first general election after the formation of the district, members shall be elected in the following manner:

1. The three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.

2. The two candidates receiving the fourth and fifth highest number of votes shall be elected to two year terms. Thereafter all offices shall have four year terms.

F. The new unified school district may appoint a resident of the remaining common school district to serve as a nonvoting member of the governing board to represent the interests of the high school pupils who reside in the remaining common school district and who attend school in the unified school district.

G. For the first year of operation, the unified school district governing board shall prepare a consolidated budget based on the student counts from the school districts comprising the unified school district, except that for purposes of determining budget amounts and equalization assistance, the student count for the former high school district shall not include the prior year average daily membership attributable to high school pupils from a common school district that was part of the former high school district but is not part of the unified school district. The unified school district shall charge the remaining common school district tuition for these pupils as provided in subsection J of this section. The unified school district may budget for unification assistance pursuant to section 15‑912.01.

H. The governing board of the unified school district shall prepare policies, curricula and budgets for the district. These policies shall require that:

1. The base compensation of each certificated teacher for the first year of operation of the new unified school district shall not be lower than the certificated teacher's base compensation for the prior year in the previously existing school districts.

2. The certificated teacher's years of employment in the previously existing school districts shall be included in determining the teacher's certificated years of employment in the new unified school district.

I. On formation of a unified school district, any existing override authorization of the former high school district and the former common school district or districts shall continue until expiration based on the revenue control limit of the school district or districts that had override authorization prior to before unification. The unified school district may request new override authorization for the budget year as provided in section 15‑481 based on the combined revenue control limit of the new district after unification. If the unified school district's request for override authorization is approved, it will replace any existing override for the budget year.

J. The unified school district shall admit high school pupils who reside in a common school district that was located within the boundaries of the former high school district. Tuition shall be paid to the unified school district by the common school district in which such pupils reside. Such tuition amount shall be calculated in accordance with section 15‑824, subject to the following modifications:

1. If the former high school district had outstanding bonded indebtedness at the time of unification, the combined tuition for the group of high school pupils who reside in each common school district shall include a debt service amount for the former high school district's outstanding bonded indebtedness that is determined as follows:

(a) Divide the total net assessed valuation of the common school district in which the group of pupils resides by the total net assessed valuation of the former high school district. For the purposes of this subdivision, "net assessed valuation" means net assessed valuation for the tax year prior to before the year when the unified school district governing board is constituted pursuant to subsection D of this section and includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.

(b) Multiply the quotient obtained in subdivision (a) of this paragraph by the unified school district's annual debt service expenditure.

2. The debt service portion of such tuition payments calculated pursuant to paragraph 1 of this subsection shall be used exclusively for debt service of the outstanding bonded indebtedness of the former high school district. When such indebtedness is fully extinguished, the debt service portion of a pupil's tuition shall be determined in accordance with paragraph 3 of this subsection.

3. If the former high school district had no outstanding bonded indebtedness at the time of unification, the tuition calculation shall include the actual school district expenditures for the portion of any debt service of the unified school district that pertains to any construction or renovation of high school facilities divided by the school district's student count for the high school portion of the school district.

4. The unified school district shall not include in the tuition calculation any debt service that pertains to any construction or renovation of school facilities for preschool through grade eight.

5. Notwithstanding section 15‑951, subsection F, the revenue control limit of the common school district shall include the full amount of the debt service portion of the tuition calculated pursuant to this subsection.

K. All assets and liabilities of the unifying school districts shall be transferred and assumed by the new unified school district. Any existing bonded indebtedness of a common school district or a high school district unifying pursuant to this section shall be assumed by the new unified school district and shall be regarded as an indebtedness of the new unified school district for the purpose of determining the debt incurring authority of the district. Taxes for the payment of such bonded indebtedness shall be levied on all taxable property in the new unified school district, but nothing in this subsection shall be construed to relieve from liability to taxation for the payment of all taxable property of the former high school district if necessary to prevent a default in the payment of any bonded indebtedness of the former high school district. The residents of a common school district that does not unify shall not vote in bond or override elections of the unified school district and shall not be assessed taxes as a result of a bond or override election of the unified school district.

L. If the remaining common school district had authorization for an override as provided in section 15‑481 or 15‑482, the override authorization continues for the remaining common school district or districts in the same manner as before the formation of the unified school district.

M. The bonding authorization and bonding limitations continue for the remaining common school district or districts in the same manner as before the formation of the unified school district.

N. Nothing in This section shall be construed to does not relieve a school district formed pursuant to section 15‑457 or 15‑458 of its liability for any outstanding bonded indebtedness.

O. For school districts that become unified after July 1, 2004 and where all of the common schools were eligible for the small school district weight pursuant to section 15‑943, paragraph 1, subdivision (a) when computing their base support level and base revenue control limit before unification, the unified school district may continue to use the small school district weight as follows:

1. Annually determine the common school student count and the weighted student count pursuant to section 15‑943, paragraph 1, subdivision (a) for each common school district before unification.

2. Calculate the sum of the common school districts' student counts and weighted student counts determined in paragraph 1 of this subsection.

3. Divide the sum of the weighted student counts by the sum of the student counts determined in paragraph 2 of this subsection.

4. The amount determined in paragraph 3 of this subsection shall be the weight for the common schools in the unified school district.

P. A unified school district may calculate its revenue control limit and district support level by using subsection O of this section as follows:

1. Determine the number of individual school districts that existed before unification into a single school district.

2. Multiply the amount determined in paragraph 1 of this subsection by six hundred.

3. Multiply the amount determined in paragraph 2 of this subsection by 0.80.

4. If the amount determined in paragraph 3 of this subsection exceeds the student count of the unified school district, the unified school district is eligible to use subsection O of this section.

Q. Subsections O and P of this section shall remain in effect until the aggregate student count of the common school districts before unification exceeds the aggregate number of students of the common school districts before unification authorized to utilize section 15‑943, paragraph 1, subdivision (a). END_STATUTE

Sec. 7. Section 15-448, Arizona Revised Statutes, as amended by Laws 2020, chapter 14, section 2, is amended to read:

START_STATUTE15-448. Formation of unified school district; board membership; budget

B. Formation of a unified school district shall be by resolutions approved by the governing boards of the unifying school districts and certification of approval by such governing boards to the county school superintendent of the county or counties in which such individual school districts are located. A common school district and high school district that unify pursuant to this section shall not exclude from the same unification a common school district that has overlapping boundaries with the high school district and that wishes to unify. Except as provided in subsection D of this section, the formation of a unified school district becomes effective on July 1 of the next fiscal year following the certification of the county school superintendent. An election is not required to form a unified school district pursuant to this section. Notice of the proposed vote of the governing boards on the resolutions prescribed in this subsection shall be posted in at least three public places in each of the school districts proposed to be unified at least ninety days before the proposed vote. At least ninety days before the governing boards vote on the resolutions prescribed in this subsection, the governing boards shall mail a pamphlet to each household with one or more qualified electors that lists the full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed unification for each of the following:

1. An owner‑occupied residence whose assessed valuation is the average assessed valuation of property classified as class three, as prescribed by section 42‑12003 for the current year in the school district.

2. An owner‑occupied residence whose assessed valuation is one-half of the assessed valuation of the residence in paragraph 1 of this subsection.

3. An owner‑occupied residence whose assessed valuation is twice the assessed valuation of the residence in paragraph 1 of this subsection.

D. On formation of the unified school district, the governing board consists of the members of the former school district governing boards and the members shall hold office until January 1 following the first general election after formation of the district. For the purpose of all actions that are necessary to operate the unified district for the next year, the unified school district governing board is constituted and may conduct meetings after the adoption of the unification resolutions prescribed by subsection B of this section.

1. The three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four‑year terms.

2. The two candidates receiving the fourth and fifth highest number of votes shall be elected to two‑year terms. Thereafter all offices shall have four‑year terms.

H. The governing board of the unified school district shall prepare policies, curricula and budgets for the district. These policies shall require that:

I. On formation of a unified school district, any existing override authorization of the former high school district and the former common school district or districts shall continue until expiration based on the revenue control limit of the school district or districts that had override authorization before unification. The unified school district may request new override authorization for the budget year as provided in section 15‑481 based on the combined revenue control limit of the new district after unification. If the unified school district's request for override authorization is approved, it will replace any existing override for the budget year.

(a) Divide the total net assessed valuation of the common school district in which the group of pupils resides by the total net assessed valuation of the former high school district. For the purposes of this subdivision, "net assessed valuation" means net assessed valuation for the tax year before the year when the unified school district governing board is constituted pursuant to subsection D of this section and includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.

(b) Multiply the quotient obtained in subdivision (a) of this paragraph by the unified school district's annual debt service expenditure.

4. The unified school district shall not include in the tuition calculation any debt service that pertains to any construction or renovation of school facilities for preschool through grade eight.

M. The bonding authorization and bonding limitations continue for the remaining common school district or districts in the same manner as before the formation of the unified school district.

N. This section does not relieve a school district formed pursuant to section 15‑457 or 15‑458 of its liability for any outstanding bonded indebtedness.

0. For school districts that become unified after July 1, 2004 and where all of the common schools were eligible for the small school district weight pursuant to section 15‑943, paragraph 1, subdivision (a) when computing their base support level and base revenue control limit before unification, the unified school district may continue to use the small school district weight as follows: