SB1205 - 561R

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

Section 1. Title 8, chapter 4, article 4, Arizona Revised Statutes, is amended by adding section 8-530.04, to read:

START_STATUTE8-530.04. Educational placement; best interest of child; transportation; report

A. Within five days after a child enters foster care or if a child's placement changes, the child's caseworker, primary caregiver, representatives from the child's school of origin and representatives from the child's potential new educational institution shall determine which educational placement is in the best interest of the child. The decision regarding best interest educational placement shall prioritize the child's unique needs. The child's school of origin shall ensure transportation for the child during the best interest educational placement determination process.

B. Within two days after it is determined that a change of educational placement is in the best interest of the child, the new educational institution shall enroll the child and the child's school of origin shall transfer the child's education records to the child's new educational institution within two days after notice of the child's change in educational placement. A child shall be immediately enrolled in the new educational institution even if the child does not possess the records normally REQUIRED for enrollment in the child's new educational institution or owes any outstanding fines or fees to the school of origin.

c. The department shall ensure that a child receives transportation to the educational institution determined to be in the child's best interest, including a charter school or educational institution located outside of the child's current school district. A school district may cross school district boundaries when transporting a student pursuant to this section. The department shall provide financial assistance to the child's primary caregiver for transportation if the department and the child's new educational institution are unable to transport the child.

D. the auditor general shall track, report and make publicly available the following:

1. The number of best interest educational placement determinations conducted.

2. The number of children who entered foster care and who did not receive a best INTEREST educational placement determination.

3. The final outcome of each best interest educational placement determination.

4. Data regarding the transportation of foster care children pursuant to this section, including transportation costs and which agency was responsible for the costs. END_STATUTE

Sec. 2. Section 15-816.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-816.01. Open enrollment policies; preference; selection process; transportation; reporting requirements; public awareness effort

A. School district governing boards shall establish policies and shall implement an open enrollment policy without charging tuition. Tuition may be charged to nonresident pupils only if the tuition is authorized under section 15-764, subsection C, section 15-797, subsection C, section 15-823, subsection A, section 15-824, subsection A or section 15-825 or if two school districts have entered into a voluntary agreement for the payment of tuition for certain pupils. These policies shall include the information required by subsection I of this section, basic information that is needed to request enrollment and that is consistent with guidance and state and federal law regarding pupil privacy and civil rights, and information regarding the provision of transportation or resources for transportation. The policies must be easily accessible from the home page on each school's website and be available in English and in Spanish or in any other language used by a majority of the populations served by the school or school district. A school district shall update on each school's website the school's capacity and whether the school is currently accepting open enrollment students, by grade level, at least once every twelve weeks unless there are no changes to report for the individual school. If a school has any other separate capacity by specialized program, the information required pursuant to this subsection shall also be posted by specialized program. Schools shall accept pupils throughout the school year as capacity allows. Pupils who are denied access due to capacity shall be informed that they are on a wait list and of the details regarding the process prescribed in subsection E of this section. Pupils shall be selected as seats become available.

B. A school district shall enroll at any time any resident pupil who applies for enrollment to the school district pursuant to this section. A school district shall give enrollment preference to and reserve capacity for all of the following:

1. Resident pupils.

2. Pupils returning to the school from the prior year.

3. Siblings of pupils already enrolled.

4. children who are in foster care pursuant to the requirements of section 8-530.04. On leaving foster care, children who are enrolled pursuant to this paragraph shall remain in their current educational institution through the end of the school year.

C. A school district may give enrollment preference to children who:

1. Are in foster care.

2. 1. Meet the definition of unaccompanied youth prescribed in the McKinney-Vento homeless assistance act (P.L. 100-77; 101 Stat. 482; 42 United States Code section 11434a).

3. 2. Attend a school that is closing.

D. A school district may give enrollment preference to and reserve capacity for all of the following:

1. Pupils who are children of persons who are employed by or at a school in the school district.

2. Resident transfer pupils and their siblings.

3. Pupils who meet additional criteria established and published by the school district governing board pursuant to subsection A of this section.

E. If remaining capacity at a school, as determined by the school district governing board, is insufficient to enroll all pupils who submit a timely request, the school or school district shall select pupils through an equitable selection process such as a lottery, except that preference shall be given to the siblings of a pupil selected through an equitable selection process such as a lottery.

F. Except as provided in subsections A through E of this section, a school that is operated by a school district may not limit admission based on any of the following:

1. Ethnicity or race.

2. National origin.

3. Sex.

4. Income level.

5. Disability.

6. Proficiency in the English language.

7. Athletic ability.

G. The governing board of the district educating the pupil may provide transportation limited to not more than thirty miles each way to and from the school of attendance or to and from a pickup point on a regular transportation route or for the total miles traveled each day to an adjacent district for eligible nonresident pupils who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches.

H. The governing board of the district educating the pupil shall provide transportation limited to not more than thirty miles each way to and from the school of attendance or to and from a pickup point on a regular transportation route or for the total miles traveled each day to an adjacent district for nonresident pupils with disabilities whose individualized education program specifies that transportation is necessary to fulfill the program.

I. The state board of education shall adopt a model format that school districts may use for describing open enrollment options to ensure clarity and consistency for parents in understanding their enrollment options as described in this section and enrollment capacity at each school, including the ability to choose any school within the school district of residence or any other school district in this state. The state board of education shall adopt rules, policies and guidance consistent with state and federal law for school districts to use while enrolling students pursuant to this article. Pursuant to the supervisory duties of the superintendent of public instruction, the department of education shall investigate and enforce any complaints that the department receives or substantiated claims of unlawful or inappropriate enrollment practices by school districts pursuant to state and federal law and shall refer any complaints received regarding charter schools to the state board for charter schools to investigate and enforce. The department of education shall regularly update the state board of education on its investigations pursuant to this subsection.

J. The department of education shall provide an annual report that informs the public and policymakers of the open enrollment participation rate by school district, school and county, including the number of pupils, by student subgroup designation, in each school and school district that are open enrolled as resident pupils, resident transfer pupils or nonresident pupils for each school district and the school districts and zip codes from which students are enrolling. By fiscal year 2022-2023, this participation report shall also include the number of pupils enrolled in charter schools and the school districts from which those pupils are enrolling.

K. Subject to the availability of appropriated monies, each January the state board of education shall design a public awareness effort to distribute materials that do all of the following:

1. Communicate to the public the ability to choose any public school in this state.

2. Direct the public to resources to learn about school choice options in this state.

3. Instruct the public how to request enrollment for pupils.

L. The state board of education may include other options in its informational materials and messaging developed under subsection K of this section.

M. In designing the public awareness effort and distributing materials under subsection K of this section, the state board of education may collaborate with both:

1. Public and private partners to assist the state board in achieving the objectives prescribed in subsection K of this section.

2. The department of education in providing parents and the public with informational resources. END_STATUTE

Sec. 3. Repeal

Section 41-1279.03, Arizona Revised Statutes, as amended by Laws 2021, chapter 405, section 25, is repealed.

Sec. 4. Section 41-1279.03, Arizona Revised Statutes, as amended by Laws 2019, chapter 3, section 11, is amended to read:

START_STATUTE41-1279.03. Powers and duties

A. The auditor general shall:

1. Prepare an audit plan for approval by the committee and report to the committee the results of each audit and investigation and other reviews conducted by the auditor general.

2. Conduct or cause to be conducted at least biennial financial and compliance audits of financial transactions and accounts kept by or for all state agencies subject to the single audit act of 1984 (P.L. 98-502). The audits shall be conducted in accordance with generally accepted governmental auditing standards and accordingly shall include tests of the accounting records and other auditing procedures as may be considered necessary in the circumstances. The audits shall include the issuance of suitable reports as required by the single audit act of 1984 (P.L. 98-502) so that the legislature, the federal government and others will be informed as to the adequacy of financial statements of the this state in compliance with generally accepted governmental accounting principles and to determine whether this state has complied with laws and regulations that may have a material effect on the financial statements and on major federal assistance programs.

3. Perform procedural reviews for all state agencies at times determined by the auditor general. These reviews may include evaluation of administrative and accounting internal controls and reports on these reviews.

4. Perform special research requests, special audits and related assignments as designated by the committee and conduct performance audits, special audits, special research requests and investigations of any state agency, whether created by the constitution or otherwise, as may be requested by the committee.

5. Annually on or before the fourth Monday of December, prepare a written report to the governor and to the committee that contains a summary of activities for the previous fiscal year.

6. In the tenth year and in each fifth year thereafter in which a transportation excise tax is in effect in a county as provided in section 42-6106 or 42-6107, conduct a performance audit that:

(a) Reviews past expenditures and future planned expenditures of the transportation excise revenues and determines the impact of the expenditures in solving transportation problems within the county and, for a transportation excise tax in effect in a county as provided in section 42-6107, determines whether the expenditures of the transportation excise revenues comply with section 28-6392, subsection B.

(b) Reviews projects completed to date and projects to be completed during the remaining years in which a transportation excise tax is in effect. Within six months after each review period, the auditor general shall present a report to the speaker of the house of representatives and the president of the senate detailing findings and making recommendations.

(c) Reviews, determines, reports and makes recommendations to the speaker of the house of representatives and the president of the senate whether the distribution of Arizona highway user revenues complies with title 28, chapter 18, article 2.

7. If requested by the committee, conduct performance audits of counties and incorporated cities and towns receiving Arizona highway user revenue fund monies pursuant to title 28, chapter 18, article 2 to determine whether the monies are being spent as provided in section 28-6533, subsection B.

8. Perform special audits designated pursuant to law if the auditor general determines that there are adequate monies appropriated for the auditor general to complete the audit. If the auditor general determines the appropriated monies are inadequate, the auditor general shall notify the committee.

9. Establish a schoolwide audit team in the office of the auditor general to conduct performance audits and monitor school districts to determine the percentage of every dollar spent in the classroom by the school district. Each school district shall prominently post on its website home page a copy of its profile pages that displays the percentage of every dollar spent in the classroom by that school district from the most recent status report issued by the auditor general pursuant to this paragraph. The performance audits shall determine whether school districts that receive monies from the Arizona English language learner fund established by section 15-756.04 and the statewide compensatory instruction fund established by section 15-756.11 comply with title 15, chapter 7, article 3.1. The auditor general shall determine, through random selection, the school districts to be audited each year, subject to review by the joint legislative audit committee. A school district that is subject to an audit pursuant to this paragraph shall notify the auditor general in writing whether the school district agrees or disagrees with the findings and recommendations of the audit and whether the school district will implement the findings and recommendations, implement modifications to the findings and recommendations or refuse to implement the findings and recommendations. The school district shall submit to the auditor general a written status report on the implementation of the audit findings and recommendations every six months for two years after an audit conducted pursuant to this paragraph. The auditor general shall review the school district's progress toward implementing the findings and recommendations of the audit every six months after receipt of the district's status report for two years. The auditor general may review a school district's progress beyond this two-year period for recommendations that have not yet been implemented by the school district. The auditor general shall provide a status report of these reviews to the joint legislative audit committee. The school district shall participate in any hearing scheduled during this review period by the joint legislative audit committee or by any other legislative committee designated by the joint legislative audit committee.

10. Notwithstanding any other law, review the processes and statutory requirements for maintaining the statewide voter registration database, county early voting lists and the county voter registration databases for counties with a population of more than one million persons. THE SECRETARY OF STATE AND THE COUNTY RECORDERS SHALL NOTIFY THE AUDITOR GENERAL IN WRITING OF THE TOTAL EXPENDITURES MADE FOR VOTER REGISTRATION PROGRAMS AND EVENTS AND SHALL PROVIDE A DESCRIPTION OF THOSE PROGRAMS AND EVENTS, INCLUDING ANY POLITICAL PARTY AFFILIATION. THE SECRETARY OF STATE AND THE COUNTY RECORDERS ALSO SHALL SPECIFY THEIR ATTENDANCE AT THESE PROGRAMS, EVENTS AND OUTREACH ACTIVITIES AND WHETHER THEY USED ANY THIRD-PARTY DATA IN CONDUCTING THESE PROGRAMS, EVENTS AND ACTIVITIES. On or before June 30 each even-numbered year, the auditor general shall submit a report on its findings to the president of the senate and the speaker of the house of representatives and shall submit a copy of the report to the secretary of state.

10. 11. Annually review per diem compensation and reimbursement of expenses for employees of this state and members of a state board, commission, council or advisory committee by judgmentally selecting samples and evaluating the propriety of per diem compensation and expense reimbursements.

12. Pursuant to section 8-530.04, Annually track, report and make publicly available the following:

1. The number of best interest educational placement determinations conducted.

2. The number of children who entered foster care and who did not receive a best INTEREST educational placement determination.

3. The final outcome of each best interest educational placement determination.

4. Data regarding the transportation of foster care children pursuant to section 8-530.04, including transportation costs and which agency was responsible for the costs.

B. The auditor general may:

1. Subject to approval by the committee, adopt rules necessary to administer the duties of the office.

2. Hire consultants to conduct the studies required by subsection A, paragraphs 6 and 7 of this section.

C. If approved by the committee, the auditor general may charge a reasonable fee for the cost of performing audits or providing accounting services for auditing federal funds, special audits or special services requested by political subdivisions of this state. Monies collected pursuant to this subsection shall be deposited in the audit services revolving fund.

D. The department of transportation, the board of supervisors of a county that has approved a county transportation excise tax as provided in section 42-6106 or 42-6107 and the governing bodies of counties, cities and towns receiving Arizona highway user revenue fund monies shall cooperate with and provide necessary information to the auditor general or the auditor general's consultant.

E. The department of transportation shall reimburse the auditor general as follows, and the auditor general shall deposit the reimbursed monies in the audit services revolving fund:

1. For the cost of conducting the studies or hiring a consultant to conduct the studies required by subsection A, paragraph 6, subdivisions (a) and (b) of this section, from monies collected pursuant to a county transportation excise tax levied pursuant to section 42-6106 or 42-6107.

2. For the cost of conducting the studies or hiring a consultant pursuant to subsection A, paragraph 6, subdivision (c) and paragraph 7 of this section, from the Arizona highway user revenue fund. END_STATUTE