Reference Title: schools; abc conditional repeal; modifications

AN ACT
AMENDING LAWS 1997, CHAPTER 4, SECTION 16; RELATING TO SCHOOL FINANCE REFORM.

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

Section 1. Laws 1997, chapter 4, section 16, is amended to read:

Sec. 16. Conditional repeal

A. If there is a final adjudication in the proceedings resulting from the Arizona supreme court's decision in Roosevelt Elementary School District No. 66 v. Bishop, 179 Ariz. 233, 877 P.2d 806 (1994) that this act, in conjunction with Laws 1996, fifth special session, chapter 8 and Laws 1996, seventh special session, chapter 1, does not ensure a constitutional system of education , :

1. This act and Laws 1996, fifth special session, chapter 8, sections SECTION 1, 13, 14 , 15 and 17 and Laws 1996, seventh special session, chapter 1, sections 3, 4, 5 and 7 are void and are repealed as of the date of the final adjudication.

2. LAWS 1996, FIFTH SPECIAL SESSION, CHAPTER 8, SECTIONS 1, 13, 15 AND 17 AND LAWS 1996, SEVENTH SPECIAL SESSION, CHAPTER 1, SECTIONS 3, 4 AND 5 ARE VOID AND ARE REPEALED SIX MONTHS AFTER THE DATE OF THE FINAL ADJUDICATION.

B. Subsection A OF THIS SECTION does not invalidate any contractual obligations of the state board for school capital facilities that may have been incurred before the final adjudication referred to REPEAL PRESCRIBED in subsection A , PARAGRAPH 2 OF THIS SECTION , including school districts that have been given preliminary approvals by the state board for school capital facilities BEFORE THE DATE OF FINAL ADJUDICATION in order to address critical health and safety needs. , NOT TO EXCEED THE BALANCE OF THE SCHOOL CAPITAL EQUITY FUND ESTABLISHED BY SECTION 15-1053, ARIZONA REVISED STATUTES, ON THE DATE OF THE FINAL ADJUDICATION. AFTER THE DATE OF FINAL ADJUDICATION, THE STATE BOARD SHALL NOT ENTER INTO ANY CONTRACTUAL OBLIGATIONS NOT RELATED TO A PRELIMINARY APPROVAL GIVEN BEFORE THE DATE OF THE FINAL ADJUDICATION OR GIVE ANY NEW PRELIMINARY APPROVALS. BETWEEN THE DATE OF FINAL ADJUDICATION AND THE REPEAL PRESCRIBED IN SUBSECTION A, PARAGRAPH 2 OF THIS SECTION, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE BOARD FROM PAYING ITS COSTS OF OPERATION AS PRESCRIBED BY LAW.

C. Notwithstanding subsection A, the state board for school capital facilities shall continue for thirty days after the date of the final adjudication referred to in subsection A. After thirty days, ON THE DISCONTINUATION OF THE STATE BOARD FOR SCHOOL CAPITAL FACILITIES, the department of education shall assume responsibility for DISTRIBUTING MONIES AND receiving reports and repayment obligations from school districts pursuant to contracts AND PRELIMINARY APPROVALS entered into between the state board and school districts before the final adjudication referred to in subsection A OF THIS SECTION . Any monies remitted to the department of education pursuant to this subsection shall be transmitted to the state general fund. The department of education shall submit an annual report to the president of the senate, the speaker of the house of representatives and the governor that summarizes the reports and amount of repayments from school districts.