SB1396 - 562R

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

Section 1. Title 15, chapter 19, article 1, Arizona Revised Statutes, is amended by adding section 15-2407, to read:

START_STATUTE15-2407. Qualified schools; harassment, intimidation and bullying policies; violations

A. NOtwithstanding section 15-2404, a qualified school that accepts payment from a parent or qualified student pursuant to this chapter shall prescribe and enforce policies and procedures to prohibit students from harassing, intimidating and bullying other students on the qualified school's grounds, property and buses, at the qualified school's bus stops, at the qualified school's sponsored events and activities and through the use of electronic technology or electronic communication on the qualified school's computers, networks, forums and mailing lists that include the following components:

1. A procedure for students, parents and qualified school employees to confidentially report to the qualified school's officials incidents of harassment, intimidation or bullying. The qualified school shall make available written forms designed to provide a full and detailed description of the incident and any other relevant information about the incident.

2. A requirement that qualified school employees report in writing suspected incidents of harassment, intimidation or bullying to the appropriate qualified school official and a description of appropriate disciplinary procedures for employees who fail to report suspected incidents that are known to the employee.

3. A requirement that, at the beginning of each school year, qualified school officials provide all students with a written copy of the rights, protections and support services available to a student who is an alleged victim of an incident reported pursuant to this subsection.

4. If an incident is reported pursuant to this subsection, a requirement that school officials provide a student who is an alleged victim of the incident with a written copy of the rights, protections and support services available to that student.

5. A formal process for documenting reported incidents of harassment, intimidation or bullying and providing for the confidentiality, maintenance and disposition of this documentation. Qualified schools shall maintain documentation of each incident reported pursuant to this paragraph for at least six years. The qualified school may not use that documentation to impose disciplinary action unless the appropriate qualified school official has investigated and determined that the reported incident of harassment, intimidation or bullying occurred. If a qualified school provides documentation of a reported incident to persons other than qualified school officials or law enforcement, all individually identifiable information shall be redacted.

6. A formal process for the appropriate officials of the qualified school to investigate suspected incidents of harassment, intimidation or bullying, including procedures for notifying the alleged victim and the alleged victim's parent or guardian when a qualified school official or employee becomes aware of the suspected incident of harassment, intimidation or bullying.

7. Disciplinary procedures for students who have admitted or been found to have committed incidents of harassment, intimidation or bullying.

8. A procedure that sets forth consequences for submitting false reports of incidents of harassment, intimidation or bullying.

9. Procedures designed to protect the health and safety of students who are physically harmed as the result of incidents of harassment, intimidation and bullying, including, if appropriate, procedures to contact emergency medical services or law enforcement agencies, or both.

10. Definitions of harassment, intimidation and bullying.

B. If a qualified school receives a notice of a violation pursuant to section 41-1279.03, subsection A, paragraph 11, the qualified school has sixty days to cure the violation. If the state board of education determines that the qualified school has failed to cure the violation within the sixty-day period, the state board of education shall notify the qualified school that the qualified school is in violation of this section and the qualified school shall reimburse the department for all of the Arizona empowerment scholarship account monies that the qualified school received pursuant to this chapter for the previous school year. END_STATUTE

Sec. 2. Section 41-1279.03, Arizona Revised Statutes, 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 annual financial and compliance audits of financial transactions and accounts kept by or for all state agencies subject to the federal single audit requirements. 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 federal single audit requirements so that the legislature, the federal government and others will be informed as to the adequacy of financial statements of this state in compliance with generally accepted 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 fifth 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 joint legislative audit committee. Based on information provided by the auditor general, for any legislative measure that requires the auditor general to perform a special audit, the joint legislative budget committee staff shall notify all the members of the legislature as soon as practicable of the cost to conduct the special audit.

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 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 of the audit and whether the school district will implement the recommendations, implement modifications to the recommendations or refuse to implement the recommendations. The school district shall submit to the auditor general a written status report on the implementation of the audit recommendations at the request of the auditor general, within the two-year period following the issuance of an audit conducted pursuant to this paragraph. The auditor general shall review the school district's progress toward implementing the recommendations of the audit and provide status reports of the reviews to the joint legislative audit committee during this two-year period. 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 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. 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.

11. Annually audit qualified schools as defined in section 15-2401 for compliance with section 15-2407. If the auditor general finds that a qualified school has failed to comply with the requirements of section 15-2407, the auditor general shall:

(a) Notify the qualified school and the state board of education of the violation.

(b) Instruct the qualified school how to cure the violation.

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 county treasurer, the county transportation excise tax recipients, and 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 or the county transportation excise tax recipients 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