REPEALING LAWS 1998, THIRD SPECIAL SESSION, CHAPTER 1, LAWS 1998, CHAPTER
164, LAWS 1998, CHAPTER 219 AND LAWS 1998, CHAPTER 286, SECTION 1; AMENDING
TITLE 9, CHAPTER 4, ARTICLE 8, ARIZONA REVISED STATUTES, BY ADDING SECTION
9-500.18; AMENDING SECTIONS 15-101, 15-181, 15-185, 15-203, 15-341, 15-342,
15-393, 15-481, 15-491, 15-902, 15-903, 15-904, 15-905, 15-906, 15-909,
15-910, 15-947, 15-947.01, 15-951, 15-961, 15-962, 15-962.01, 15-963, 15-964,
15-971, 15-973, 15-974, 15-996 AND 15-1021, ARIZONA REVISED STATUTES;
PROVIDING FOR THE DELAYED REPEAL OF SECTION 15-185.01, ARIZONA REVISED STATUTES; REPEALING SECTION 15-991.02, ARIZONA REVISED STATUTES; AMENDING
TITLE 15, CHAPTER 9, ARTICLE 7, ARIZONA REVISED STATUTES, BY ADDING SECTION
15-1023.01; AMENDING SECTIONS 15-1102, 15-1103 AND 15-1107, ARIZONA REVISED STATUTES; AMENDING TITLE 15, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 16;
AMENDING SECTION 37-521, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996,
FIFTH SPECIAL SESSION, CHAPTER 8, SECTION 14; REPEALING SECTION 37-521,
ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996, CHAPTER 335, SECTION 18;
AMENDING SECTION 41-1231, ARIZONA REVISED STATUTES; AMENDING TITLE 41,
CHAPTER 27, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION
41-3008.18; AMENDING TITLE 42, CHAPTER 8, ARTICLE 1, ARIZONA REVISED
STATUTES, BY ADDING SECTION 42-1342; AMENDING SECTION 42-5029, ARIZONA
REVISED STATUTES, AS AMENDED BY LAWS 1998, CHAPTER 1, SECTION 162;
TRANSFERRING AND RENUMBERING SECTION 42-1342, ARIZONA REVISED STATUTES, AS
ADDED BY THIS ACT, FOR PLACEMENT IN TITLE 42, CHAPTER 5, ARTICLE 1, ARIZONA REVISED STATUTES, AS SECTION 42-5030.01; BLENDING MULTIPLE ENACTMENTS;
PROVIDING FOR THE DELAYED REPEAL OF TITLE 15, CHAPTER 16, ARTICLE 3, ARIZONA REVISED STATUTES, AS ADDED BY THIS ACT; MAKING APPROPRIATIONS; RELATING TO
SCHOOL FINANCE.
Be it enacted by the Legislature of the State of Arizona:
Section 1.
This act shall be known and may be cited as "The Students FIRST Act of 1998."
Sec. 2.
Laws 1998, third special session, chapter 1, Laws 1998, chapter 164, Laws 1998, chapter 219 and Laws 1998, chapter 286, section 1 are repealed.
Sec. 3. Title 9, chapter 4, article 8, Arizona Revised Statutes, is amended by adding section 9-500.18, to read:
Sec. 4. Section 15-101, Arizona Revised Statutes, is amended to read:
In this title, unless the context otherwise requires:
1. "Accommodation school" means a school which is operated through the county board of supervisors and the county school superintendent and which the county school superintendent administers to serve a military reservation or territory which is not included within the boundaries of a school district. Accommodation school also means a school that provides educational services to homeless children or alternative education programs as provided in section 15-308, subsection B.
2. "Assessed valuation" means the valuation derived by applying the applicable percentage as provided in section 42-227 to the full cash value or limited property value, whichever is applicable, of the property.
3. "Charter school" means a public school established by contract with a district governing board, the state board of education or the state board for charter schools pursuant to article 8 of this chapter to provide learning that will improve pupil achievement.
5. "CLASS B BONDS" MEANS GENERAL OBLIGATION BONDS APPROVED BY A VOTE
OF THE QUALIFIED ELECTORS OF A SCHOOL DISTRICT AT AN ELECTION HELD FROM AND
AFTER DECEMBER 31, 1998.
Sec. 5. Section 15-181, Arizona Revised Statutes, is amended to read:
A. Charter schools may be established pursuant to this article to
provide a learning environment that will improve pupil achievement. Charter
schools provide additional academic choices for parents and pupils. Charter
schools may consist of new schools or all or any portion of an existing
school.
B. Charter schools shall comply with all provisions of this article
in order to receive state funding as prescribed in section 15-185.
Sec. 6. Section 15-185, Arizona Revised Statutes, is amended to read:
A. Financial provisions for a charter school that is sponsored by a
school district governing board are as follows:
1.
2. A school district is not financially responsible for any charter
school that is sponsored by the state board of education or the state board
for charter schools.
3. A school district that sponsors a charter school may:
(a) Increase its student count as provided in subsection B, paragraph
2 of this section during the first year of the charter school's operation
to include those charter school pupils who were not previously enrolled in
the school district.
(b)
4. If a school district uses the provisions of paragraph 3 of this
subsection, the school district is not eligible to include those pupils in
its student count for the purposes of computing an increase in its revenue
control limit and district support level as provided in section 15-948.
5.
6.
B. Financial provisions for a charter school that is sponsored by the
state board of education or the state board for charter schools are as
follows:
1. The charter school shall calculate a base support level as
prescribed in section 15-943,
2. Notwithstanding paragraph 1 of this subsection, the student count
shall be determined initially using an estimated student count based on
actual registration of pupils before the beginning of the school year. After
the first one hundred days in session the charter school shall revise the student count to be equal to the actual average daily membership, as defined
in section 15-901, or the adjusted average daily membership, as prescribed
in section 15-902, of the charter school. Before the one hundredth day in
session, the state board of education or the state board for charter schools
may require a charter school to report periodically regarding pupil
enrollment and attendance and the department of education may revise its
computation of equalization assistance based on the report. A charter school
shall revise its student count, base support level,
3.
4. A charter school may utilize section 15-855 for the purposes of
this section. The charter school and the department of education shall
prescribe procedures for determining average daily attendance and average
daily membership.
5. Equalization assistance for the charter school shall be determined
by adding the amount of the base support level,
6. The state board of education shall apportion state aid from the
appropriations made for such purposes to the state treasurer for disbursement to the counties for the charter school in each county in an amount as
determined by this paragraph. The apportionments shall be as follows:
(a) During the first year of operation:
(i) On July 1, one-third of the total amount to be apportioned during
the fiscal year.
(ii) On October 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(iii) On December 15, one-twelfth of the total amount to be
apportioned during the fiscal year.
(iv) On January 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(v) On February 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(vi) On March 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(vii) On April 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(viii) On May 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(ix) On June 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
(b) During the second and subsequent years of operation, one-twelfth
of the total amount to be apportioned during the fiscal year on the fifteenth
day of each month of the school year.
7. Notwithstanding the provisions of paragraph 8 of this subsection,
if sufficient appropriated
8. The charter school shall not charge tuition, levy taxes or issue
bonds.
9. The superintendent of public instruction shall furnish to the
county treasurer an abstract of the apportionment and shall certify the
apportionment to the department of administration, which shall draw its
warrant in favor of the county treasurer of each county for the amount
apportioned.
C. If a pupil is enrolled in both a charter school and a public school
that is not a charter school, the sum of the daily membership, which includes enrollment as prescribed in section 15-901, subsection A, paragraph
2, subdivisions (a) and (b) and daily attendance as prescribed in section
15-901, subsection A, paragraph 6, for that pupil in the school district and
the charter school shall not exceed 1.0. If the pupil is enrolled in both
a charter school and a public school that is not a charter school and the sum
of the daily membership or daily attendance for that pupil is greater than
1.0, the sum shall be reduced to 1.0 and shall be apportioned between the
public school and the charter school based on the percentage of total time
that the pupil is enrolled or in attendance in the public school and the
charter school. The uniform system of financial records shall include
guidelines for the apportionment of the pupil enrollment and attendance as
provided in this section.
D. Charter schools are allowed to accept grants and gifts to
supplement their state funding but it is not the intent of the charter school
law to require taxpayers to pay twice to educate the same pupils. The base
support level for a charter school or for a school district sponsoring a
charter school shall be reduced by an amount equal to the total amount of
monies received by a charter school from a federal or state agency if the
federal or state monies are intended for the basic maintenance and operations
of the school. The superintendent of public instruction shall estimate the
amount of the reduction for the budget year and shall revise the reduction
to reflect the actual amount before May 15 of the current year. If the
reduction results in a negative amount, the negative amount shall be used in
computing all budget limits and equalization assistance, except that:
1. Equalization assistance shall not be less than zero.
2. For a charter school sponsored by the state board of education or
the state board for charter schools, the total of the base support level,
3. For a charter school sponsored by a school district, the base
support level for the school district shall not be reduced by more than the
amount that the charter school increased the district's base support
level,
Sec. 7.
Section
Sec. 8. Section 15-203, Arizona Revised Statutes, is amended to read:
A. The state board of education shall:
1. Exercise general supervision over and regulate the conduct of the
public school system.
2. Keep a record of its proceedings.
3. Make rules for its own government.
4. Determine the policy and work undertaken by it.
5. Appoint its employees, on the recommendation of the superintendent
of public instruction.
6. Prescribe the duties of its employees if not prescribed by statute.
7. Delegate to the superintendent of public instruction the execution
of board policies.
8. Recommend to the legislature changes or additions to the statutes
pertaining to schools.
9. Prepare, publish and distribute reports concerning the educational
welfare of this state.
10. Prepare a budget for expenditures necessary for proper maintenance
of the board and accomplishment of its purposes and present the budget to the
legislature.
11. Aid in the enforcement of laws relating to schools.
12. Prescribe a minimum course of study in the common schools, minimum
competency requirements for the promotion of pupils from the third grade and
minimum course of study and competency requirements for the promotion of
pupils from the eighth grade.
13. Prescribe minimum course of study and competency requirements for
the graduation of pupils from high school.
14. Supervise and control the certification of persons engaged in
instructional work directly as any classroom, laboratory or other teacher or
indirectly as a supervisory teacher, speech therapist, principal or
superintendent in a school district, including school district preschool
programs, or any other educational institution below the community college,
college or university level, and prescribe rules for certification, including
rules for certification of teachers who have teaching experience and who are
trained in other states, which are not unnecessarily restrictive and are
substantially similar to the rules prescribed for the certification of
teachers trained in this state. The rules shall not require a teacher to
obtain a master's degree or to take any additional graduate courses as a
condition of certification or recertification.
15. Adopt a list of approved tests for determining special education
assistance to gifted students as defined in section 15-761 and as provided
in section 15-764. The adopted tests shall provide separate scores for
quantitative reasoning, verbal reasoning and nonverbal reasoning and shall
be capable of providing reliable and valid scores at the highest ranges of
the score distribution.
16. Adopt rules governing the methods for the administration of all
reading, grammar and mathematics proficiency examinations.
17. Adopt proficiency examinations for its use. The state board of
education shall determine the passing score for the proficiency examination.
18. Include within its budget the cost of contracting for the purchase,
distribution and scoring of the examinations as provided in paragraphs 16 and
17 of this subsection.
19. Supervise and control the qualifications of professional
nonteaching school personnel and prescribe standards relating to
qualifications.
20. Impose such disciplinary action, including the issuance of a letter
of censure, suspension, suspension with conditions or revocation of a
certificate, upon a finding of immoral or unprofessional conduct.
21. Establish an assessment, data gathering and reporting system for
pupil performance as prescribed in chapter 7, article 3 of this title.
22. Adopt a rule to promote braille literacy pursuant to section
15-214.
23. Adopt rules prescribing procedures for the investigation by the department of education of every written complaint alleging that a
certificated person has engaged in immoral conduct.
24. By December 15, 1995, review the time frame required pursuant to
section 15-539, subsection C, in which a teacher is allowed to improve after
receiving a preliminary notice of inadequacy of classroom performance and
establish an equivalent time frame to accommodate teachers who are employed in year-round school year operation programs or other schools which do not
use the traditional school year calendar.
B. The state board of education may:
1. Contract.
2. Sue and be sued.
3. Distribute and score the tests prescribed in chapter 7, article 3
of this title.
4. Provide for an advisory committee and administrative law judges to
conduct hearings to determine whether grounds exist to impose disciplinary
action against a certificated person and whether grounds exist to reinstate
a revoked or surrendered certificate. The board may delegate its
responsibility to conduct hearings to its advisory committee and to
administrative law judges. Hearings shall be conducted pursuant to title 41,
chapter 6, article 10 .
5. Proceed with the disposal of any complaint requesting disciplinary
action or with any disciplinary action against a person holding a certificate
as prescribed in subsection A, paragraph 14 of this section after the
suspension or expiration of the certificate or surrender of the certificate
by the holder.
6. Assess costs and reasonable attorney fees against a person who
files a frivolous complaint or who files a complaint in bad faith. Costs
assessed pursuant to this paragraph shall not exceed the expenses incurred
by the state board in the investigation of the complaint.
Sec. 9. Section 15-341, Arizona Revised Statutes, is amended to read:
A. The governing board shall:
1. Prescribe and enforce policies and procedures for the governance
of the schools, not inconsistent with law or rules prescribed by the state
board of education.
2. Maintain the schools established by it for the attendance of each
pupil for a period of not less than one hundred seventy-five school days, or
its equivalent as approved by the superintendent of public instruction for
a school district operating on a year-round operation basis, to offer an
educational program on the basis of a four day school week or to offer an
alternative kindergarten program on the basis of a three day school week, in
each school year, and if the funds of the district are sufficient, for a
longer period, and as far as practicable with equal rights and privileges.
3. Exclude from schools all books, publications, papers or audiovisual
materials of a sectarian, partisan or denominational character.
4. Manage and control the school property within its district.
5. Acquire school furniture, apparatus, equipment, library books and
supplies for the use of the schools.
6. Prescribe the curricula and criteria for the promotion and
graduation of pupils as provided in sections 15-701 and 15-701.01.
7. Furnish, repair and insure the school property of the district.
8. Construct school buildings on approval by a vote of the district
electors.
9. Make in the name of the district conveyances of property belonging
to the district and sold by the board.
10. Purchase school sites when authorized by a vote of the district at
an election conducted as nearly as practicable in the same manner as the
election provided in section 15-481 and held on a date prescribed in section
15-491, subsection E, but such authorization shall not necessarily specify
the site to be purchased and such authorization shall not be necessary to
exchange unimproved property as provided in section 15-342, paragraph 23.
11. Construct, improve and furnish buildings used for school purposes
when such buildings or premises are leased from the national park service.
12. Purchase school sites or construct, improve and furnish school
buildings from the proceeds of the sale of school property only on approval
by a vote of the district electors.
13. Hold pupils to strict account for disorderly conduct on school
property.
14. Discipline students for disorderly conduct on the way to and from
school.
15. Except as provided in section 15-1224, deposit all monies received
by the district as gifts, grants and devises with the county treasurer who
shall credit the deposits as designated in the uniform system of financial
records. If not inconsistent with the terms of the gifts, grants and devises
given, any balance remaining after expenditures for the intended purpose of
the monies have been made shall be used for reduction of school district
taxes for the budget year, except that in the case of accommodation schools
the county treasurer shall carry the balance forward for use by the county
school superintendent for accommodation schools for the budget year.
16. Provide that, if a parent or legal guardian chooses not to accept
a decision of the teacher as provided in section 15-521, paragraph 3, the
parent or legal guardian may request in writing that the governing board
review the teacher's decision. Nothing in this paragraph shall be construed
to release school districts from any liability relating to a child's
promotion or retention.
17. Provide for adequate supervision over pupils in instructional and
noninstructional activities by certificated or noncertificated personnel.
18. Use school monies received from the state and county school
apportionment exclusively for payment of salaries of teachers and other
employees and contingent expenses of the district.
19. Make an annual report to the county school superintendent on or
before October 1 each year in the manner and form and on the blanks
prescribed by the superintendent of public instruction or county school
superintendent. The board shall also make reports directly to the county school superintendent or the superintendent of public instruction whenever
required.
20. Deposit all monies received by school districts other than student
activities monies or monies from auxiliary operations as provided in sections
15-1125 and 15-1126 with the county treasurer to the credit of the school
district except as provided in paragraph 21 of this subsection and sections
15-1223 and 15-1224, and the board shall expend the monies as provided by law
for other school funds.
21. Establish a bank account in which the board may during a month
deposit miscellaneous monies received directly by the district. The board
shall remit monies deposited in the bank account at least monthly to the
county treasurer for deposit as provided in paragraph 20 of this subsection
and in accordance with the uniform system of financial records.
22. Employ an attorney admitted to practice in this state whose
principal practice is in the area of commercial real estate, or a real estate
broker who is licensed by this state and who is employed by a reputable
commercial real estate company, to negotiate a lease of five or more years
for the school district if the governing board decides to enter into a lease
of five or more years as lessor of school buildings or grounds as provided
in section 15-342, paragraph 7 or 10. Any lease of five or more years
negotiated pursuant to this paragraph shall provide that the lessee is
responsible for payment of property taxes pursuant to the requirements of
section 42-271, subsection A, paragraph 3.
23. Prescribe and enforce policies and procedures for disciplinary
action against a teacher who engages in conduct which is a violation of the
policies of the governing board but which is not cause for dismissal of the
teacher or for revocation of the certificate of the teacher. Disciplinary
action may include suspension without pay for a period of time not to exceed
ten school days. Disciplinary action shall not include suspension with pay
or suspension without pay for a period of time longer than ten school days.
The procedures shall include notice, hearing and appeal provisions for
violations which are cause for disciplinary action. The governing board may
designate a person or persons to act on behalf of the board on these matters.
24. Prescribe and enforce policies and procedures for disciplinary
action against an administrator who engages in conduct which is a violation
of the policies of the governing board regarding duties of administrators but
which is not cause for dismissal of the administrator or for revocation of
the certificate of the administrator. Disciplinary action may include
suspension without pay for a period of time not to exceed ten school days.
Disciplinary action shall not include suspension with pay or suspension
without pay for a period of time longer than ten school days. The procedures
shall include notice, hearing and appeal provisions for violations which are
cause for disciplinary action. The governing board may designate a person
or persons to act on behalf of the board on these matters. For violations which are cause for dismissal, the provisions of notice, hearing and appeal
in chapter 5, article 3 of this title shall apply. The filing of a timely
request for a hearing suspends the imposition of a suspension without pay or
a dismissal pending completion of the hearing.
25. Prescribe and enforce policies and procedures that prohibit a
person from carrying or possessing a weapon on school grounds unless the
person is a peace officer or has obtained specific authorization from the
school administrator.
26. Prescribe and enforce policies and procedures relating to the
health and safety of all pupils participating in district sponsored practice
sessions, games or other interscholastic athletic activities, including the
provision of water. A school district and its employees are immune from
civil liability for the consequences of the good faith adoption and
implementation of policies and procedures pursuant to this paragraph.
27. Prescribe and enforce policies and procedures regarding the smoking
of tobacco within school buildings. The policies and procedures shall be
adopted in consultation with school district personnel and members of the
community and shall state whether smoking is prohibited in school buildings.
If smoking in school buildings is not prohibited, the policies and procedures
shall clearly state the conditions and circumstances under which smoking is
permitted, those areas in a school building which may be designated as
smoking areas and those areas in a school building which may not be
designated as smoking areas.
28. Establish an assessment, data gathering and reporting system as
prescribed in chapter 7, article 3 of this title.
29. Provide special education programs and related services pursuant
to section 15-764, subsection A to all children with disabilities as defined
in section 15-761.
30. Administer competency tests prescribed by the state board of
education for the graduation of pupils from high school.
B. Notwithstanding subsection A, paragraphs 8, 10 and 12 of this
section, the county school superintendent may construct, improve and furnish
school buildings or purchase or sell school sites in the conduct of an
accommodation school.
C. A school district's governing board members and its school council
members are immune from civil liability for the consequences of adoption and
implementation of policies and procedures pursuant to subsection A of this
section and section 15-342. This waiver does not apply if the school
district's governing board members
D. A governing board may delegate in writing to a superintendent,
principal or head teacher the authority to prescribe procedures that are
consistent with the governing board's policies.
E. NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, A SCHOOL DISTRICT GOVERNING BOARD SHALL NOT TAKE ANY ACTION THAT WOULD RESULT IN AN
IMMEDIATE REDUCTION OR A REDUCTION WITHIN THREE YEARS OF PUPIL SQUARE FOOTAGE
THAT WOULD CAUSE THE SCHOOL DISTRICT TO FALL BELOW THE MINIMUM ADEQUATE GROSS
SQUARE FOOTAGE REQUIREMENTS PRESCRIBED IN SECTION 15-2011, SUBSECTION C,
UNLESS THE GOVERNING BOARD NOTIFIES THE SCHOOL FACILITIES BOARD ESTABLISHED
BY SECTION 15-2001 OF THE PROPOSED ACTION AND RECEIVES WRITTEN APPROVAL FROM
THE SCHOOL FACILITIES BOARD TO TAKE THE ACTION. A REDUCTION INCLUDES AN
INCREASE IN ADMINISTRATIVE SPACE THAT RESULTS IN A REDUCTION OF PUPIL SQUARE
FOOTAGE OR SALE OF SCHOOL SITES OR BUILDINGS, OR BOTH. THE SALE OF EQUIPMENT
THAT RESULTS IN AN IMMEDIATE REDUCTION OR A REDUCTION WITHIN THREE YEARS THAT
FALLS BELOW THE EQUIPMENT REQUIREMENTS PRESCRIBED IN SECTION 15-2011,
SUBSECTION B IS SUBJECT TO COMMENSURATE WITHHOLDING OF SCHOOL DISTRICT
CAPITAL OUTLAY REVENUE LIMIT MONIES PURSUANT TO THE DIRECTION OF THE SCHOOL
FACILITIES BOARD. PROCEEDS FROM THE SALE OF SCHOOL SITES, BUILDINGS OR OTHER
EQUIPMENT SHALL BE DEPOSITED IN THE SCHOOL PLANT FUND AS PROVIDED IN SECTION
15-1102.
Sec. 10. Section 15-342, Arizona Revised Statutes, is amended to read:
The governing board may:
1. Expel pupils for misconduct.
2. Exclude from grades one through eight children under six years of
age.
3. Make such separation of groups of pupils as it deems advisable.
4. Maintain such special schools during vacation as deemed necessary
for the benefit of the pupils of the school district.
5. Permit a superintendent or principal or his representatives to
travel for a school purpose, as determined by a majority vote of the board.
The board may permit members and members-elect of the board to travel within
or without the school district for a school purpose and receive
reimbursement. Any expenditure for travel and subsistence pursuant to this
paragraph shall be as provided in title 38, chapter 4, article 2. The
designated post of duty referred to in section 38-621 shall be construed, for
school district governing board members, to be the member's actual place of
residence, as opposed to the school district office or the school district
boundaries. Such expenditures shall be a charge against the budgeted school
district funds. The governing board of a school district shall prescribe
procedures and amounts for reimbursement of lodging and subsistence expenses.
Reimbursement amounts shall not exceed the maximum amounts established
pursuant to section 38-624, subsection C.
6. Construct or provide in rural districts housing facilities for
teachers and other school employees which the board determines are necessary
for the operation of the school.
7. Sell or lease to the state, county or city any school property
required for a public purpose, provided the sale or lease of the property
will not affect the normal operations of a school within the school district.
8. Annually budget and expend funds for membership in an association
of school districts within this state.
9. Enter into leases or lease-purchase agreements for school buildings
or grounds, or both, as lessor or as lessee, for periods of less than five
years subject to voter approval for construction of school buildings as
prescribed in section 15-341, subsection A, paragraph 8.
10. Sell school sites or enter into leases or lease-purchase agreements
for school buildings and grounds, as lessor or as lessee, for a period of
five years or more, but not to exceed ninety-nine years, if authorized by
vote of the school district electors in an election called by the governing
board as provided in section 15-491, except that if the market value of the
school property is less than fifty thousand dollars authorization by the
school district electors in an election is not required.
11. Review the decision of a teacher to promote a pupil to a grade or
retain a pupil in a grade in a common school or to pass or fail a pupil in
a course in high school. Notwithstanding title 38, chapter 3, article 3.1,
the governing board shall review the decision of a teacher to promote a pupil
to a grade or retain a pupil in a grade in a common school or to pass or fail
a pupil in a course in high school in executive session unless a parent or
legal guardian of the pupil or the pupil, if emancipated, disagrees that the
review should be conducted in executive session and then the review shall be
conducted in an open meeting. If the review is conducted in executive
session, the board shall notify the teacher of the date, time and place of
the review and shall allow the teacher to be present at the review. If the
teacher is not present at the review, the board shall consult with the
teacher before making its decision. Any request, including the written
request as provided in section 15-341, the written evidence presented at the
review and the written record of the review, including the decision of the
governing board to accept or reject the teacher's decision, shall be retained
by the governing board as part of its permanent records.
12. Provide transportation or site transportation loading and unloading
areas for any child or children if deemed for the best interest of the
district, whether within or without the district, county or state.
13. Enter into intergovernmental agreements and contracts with school
districts or other governing bodies as provided in section 11-952.
14. Include in the curricula which it prescribes for high schools in
the school district vocational and technological education programs and
vocational and technological program improvement services for the high schools, subject to approval by the state board of education. The governing
board may contract for the provision of vocational and technological
education as provided in section 15-789.
15. Suspend a teacher or administrator from his duties without pay for
a period of time of not to exceed ten school days, if the board determines
that suspension is warranted pursuant to section 15-341, subsection A,
paragraphs 23 and 24.
16. Dedicate school property within an incorporated city or town to
such city or town or within a county to that county for use as a public
right-of-way if both of the following apply:
(a) Pursuant to an ordinance adopted by such city, town or county,
there will be conferred upon the school district privileges and benefits
which may include benefits related to zoning.
(b) The dedication will not affect the normal operation of any school
within the district.
17. Enter into option agreements for the purchase of school sites.
18. Donate surplus or outdated learning materials to nonprofit
community organizations where the governing board determines that the
anticipated cost of selling the learning materials equals or exceeds the
estimated market value of the materials.
19. Prescribe policies for the assessment of reasonable fees for
students to use district-provided parking facilities. The fees are to be
applied by the district solely against costs incurred in operating or
securing the parking facilities. Any policy adopted by the governing board
pursuant to this paragraph shall include a fee waiver provision in
appropriate cases of need or economic hardship.
20. Establish alternative educational programs that are consistent with
the laws of this state to educate pupils, including pupils who have been
reassigned pursuant to section 15-841, subsection E or F.
21. Require a period of silence to be observed at the commencement of
the first class of the day in the schools. If a governing board chooses to
require a period of silence to be observed, the teacher in charge of the room
in which the first class is held shall announce that a period of silence not
to exceed one minute in duration will be observed for meditation, and during
that time no activities shall take place and silence shall be maintained.
22. Require students to wear uniforms.
23. Exchange unimproved property or improved property, including school
sites, where the governing board determines that the improved property is
unnecessary for the continued operation of the school district and determines
the improvements to the property are to be substantially removed, dismantled
or demolished for unimproved property of substantially equal or greater value
without requesting authorization by a vote of the school district electors
if the governing board determines that the exchange is necessary to protect
the health or safety of pupils.
24. For common and high school pupils, assess reasonable fees for
optional extracurricular activities and programs conducted when the common
or high school is not in session, except that no fees shall be charged for
pupils' access to or use of computers or related materials. For high school
pupils, the governing board may assess reasonable fees for fine arts and
vocational education courses and for optional services, equipment and
materials offered to the pupils beyond those required to successfully
complete the basic requirements of any other course, except that no fees
shall be charged for pupils' access to or use of computers or related
materials. Fees assessed pursuant to this paragraph shall be adopted at a
public meeting after notice has been given to all parents of pupils enrolled
at schools in the district and shall not exceed the actual costs of the
activities, programs, services, equipment or materials. The governing board
shall authorize principals to waive the assessment of all or part of a fee
assessed pursuant to this paragraph if it creates an economic hardship for
a pupil. For the purposes of this paragraph, "extracurricular activity"
means any optional, noncredit, educational or recreational activity which
supplements the education program of the school, whether offered before,
during or after regular school hours.
25. Notwithstanding section 15-341, subsection A, paragraphs 8 and 10,
construct school buildings and purchase school sites, without a vote of the
school district electors, if the buildings and sites are totally funded from
one or more of the following:
(a)
(b)
(c) Monies specifically donated for the purpose of constructing school
buildings.
Nothing in this paragraph shall be construed to eliminate the requirement for
an election to raise revenues for a capital outlay override pursuant to
section 15-481 or a bond election pursuant to section 15-491.
26. Conduct a background investigation that includes a fingerprint
check conducted pursuant to section 41-1750, subsection G for certificated
personnel and personnel who are not paid employees of the school district,
as a condition of employment. A school district may release the results of a background check to another school district for employment purposes. The
school district may charge the costs of fingerprint checks to its
fingerprinted employee, except that the school district may not charge the
costs of fingerprint checks for personnel who are not paid employees of the
school district.
27. Sell advertising space on the exterior of school buses as follows:
(a) Advertisements shall be age appropriate and not contain promotion
of any substance that is illegal for minors such as alcohol, tobacco, drugs
(b) Advertising approved by the governing board may appear only on the
sides of the bus in the following areas:
(i) The signs shall be below the seat level rub rail and not extend
above the bottom of the side windows.
(ii) The signs shall be at least three inches from any required
lettering, lamp, wheel well or reflector behind the service door or stop
signal arm.
(iii) The signs shall not extend from the body of the bus so as to
allow a handhold or present a danger to pedestrians.
(iv) The signs shall not interfere with the operation of any door or
window.
(v) The signs shall not be placed on any emergency doors.
(c) Establish a school bus advertisement fund that is comprised of
revenues from the sale of advertising space on school buses. The monies in
a school bus advertisement fund are not subject to reversion and shall be
used for the following purposes:
(i) To comply with the energy conservation measures prescribed in
section 15-349 in school districts that are in area A as defined in section
49-541, and any remaining monies shall be used to purchase alternative fuel
support vehicles and any other pupil related costs as determined by the
governing board.
(ii) For any pupil related costs as determined by the governing board
in school districts not subject to the provisions of item (i) of this
subdivision.
Sec. 11. Section 15-393, Arizona Revised Statutes, is amended to read:
A. The management and control of the joint district are vested in the
joint technological education district governing board. Unless the governing
boards of the school districts participating in the formation of the joint
district vote to implement an alternative election system as provided in
subsection B of this section, the joint board shall consist of five members
elected from five single member districts formed within the joint district.
The single member district election system shall be submitted as part of the plan for the joint district pursuant to section 15-392 and shall be
established in the plan as follows:
1. The governing boards of the school districts participating in the
formation of the joint district shall define the boundaries of the single
member districts so that the single member districts are as nearly equal in
population as is practicable, except that if the joint district lies in part
in each of two or more counties, at least one single member district may be
entirely within each of the counties comprising the joint district if this
district design is consistent with the obligation to equalize the population
among single member districts.
2. The boundaries of each single member district shall follow election
precinct boundary lines, as far as practicable, in order to avoid further
segmentation of the precincts.
3. A person who is a registered voter of this state and who is a
resident of the single member district is eligible for election to the office
of joint board member from the single member district. The terms of office
of the members of the joint board shall be as prescribed in section 15-427,
subsection B.
4. Nominating petitions shall be signed by the number of qualified
electors of the single member district as provided in section 16-322.
B. The governing boards of the school districts participating in the
formation of the joint district may vote to implement any other alternative
election system for the election of joint district board members. If an
alternative election system is selected, it shall be submitted as part of the
plan for the joint district pursuant to section 15-392, and the
implementation of the system shall be as approved by the United States
justice department.
C. The joint technological education district shall be subject to the
following provisions of this title:
1. Chapter 1, articles 1 through 6.
2. Sections 15-208, 15-210, 15-213 and 15-234.
3. Chapter 3, articles 2, 3 and 5.
4. Section 15-361.
5. Chapter 4, articles 1, 2 and 5.
6. Chapter 5, articles 1, 2 and 3.
7. Sections 15-701.01, 15-722, 15-723, 15-724,
8. Chapter 7, article 5.
9. Chapter 8, articles 1, 3 and 4.
10. Sections 15-828 and 15-829.
11. Chapter 9, articles 1, 6 and 7.
12. Sections 15-941, 15-948, 15-952, 15-953 and 15-973.
13. Sections 15-1101 and 15-1104.
14. Chapter 10, articles 2, 3, 4 and 8.
D. Notwithstanding subsection C of this section, the following apply
to a joint technological education district:
1. A joint district may issue bonds for the purposes specified in
section 15-1021 and in chapter 4, article 5 of this title to an amount in the
aggregate, including the existing indebtedness, not exceeding one per cent
of the taxable property used for secondary tax purposes, as determined
pursuant to section 42-227, within the joint technological education district
as ascertained by the last assessment of state and county taxes previous to
issuing the bonds.
2. The number of governing board members for a joint district shall
be as prescribed in subsection A of this section.
3. If a vocational and technological course or program provided
pursuant to this article is provided in a facility owned and operated by a
school district in which a pupil is enrolled, the sum of the daily attendance
as provided in section 15-901, subsection A, paragraph 6, for that pupil in
both the school district and joint technological education district shall not
exceed 1.250 and the sum of the fractional student enrollment as provided in
section 15-901, subsection A, paragraph 2, subdivision (a), shall not exceed
1.250 for the courses taken in the school district and the facility. If the
pupil is enrolled in at least two courses in the school district and at least
three courses in the joint district, the fractional student enrollment for
that pupil in the school district shall be calculated to be the difference
between 1.250 and the fractional student enrollment for that pupil in the
joint district.
4. The student count for the first year of operation of a joint
technological education district as provided in this article shall be
determined as follows:
(a) Determine the estimated student count for joint district classes
which will operate in the first year of operation. This estimate shall be
based upon actual registration of pupils as of March 30 scheduled to attend
classes which will be operated by the joint district. The student count for
the district of residence of the pupils registered at the joint district
shall be adjusted. The adjustment shall cause the district of residence to
reduce the student count for the pupil to reflect the courses to be taken at
the joint district. The district of residence shall review and approve the
adjustment of its own student count as provided in this subdivision before
the pupils from the school district can be added to the student count of the
joint district.
(b) The student count for the new joint district shall be the student
count as determined in subdivision (a) of this paragraph.
(c) After the first one hundred days in session for the first year of
operation, the joint district shall revise the student count to the actual
student count for students attending classes in the joint district. A joint
district shall revise its student count and revise the base support level as provided in section 15-943.02, the revenue control limit as provided in
section 15-944.01 and the capital outlay revenue limit and
(d) After the first one hundred days in session for the first year of
operation, the district of residence shall adjust its student count by
reducing it to reflect the courses actually taken at the joint district. The
district of residence shall revise its student count,
(e) A joint district for the first year of operation shall not be
eligible for the provisions of section 15-948.
(f) The procedures for implementing the provisions of this paragraph
shall be as prescribed in the uniform system of financial records.
(g) If the district of residence utilizes the provisions of section
15-942 to determine its student count, the district shall reduce its student
count as provided in this paragraph by subtracting the appropriate count from
the student count determined as provided in section 15-942.
(h) For the purposes of this paragraph, "district of residence" means
the district which included the pupil in its average daily membership for the
year before the first year of operation of the joint district and would have
included the pupil in its student count for the purposes of computing its
base support level for the fiscal year of the first year of operation of the
joint district if the pupil had not enrolled in the joint district.
5. A student includes any person enrolled in the joint district
without regard to the person's age or high school graduation status.
6. A joint district may operate for more than one hundred seventy-five
days per year, with expanded hours of service.
E. The joint board shall appoint a superintendent as the executive
officer of the joint district.
F. Taxes may be levied for the support of the joint district as
prescribed in chapter 9, article 6 of this title. Except for the taxes
levied pursuant to section 15-994, such taxes shall be obtained from a levy
of taxes upon the taxable property used for secondary tax purposes.
G. The schools in the joint district are available to all children of
school age who reside in the joint district subject to the rules for
admission prescribed by the joint board.
H. The joint board may collect tuition for adult students and the
attendance of pupils who are residents of school districts which are not
participating in the joint district pursuant to arrangements made between the
governing board of the district and the joint board.
I. The joint board may accept gifts, grants, federal monies, tuition
and other allocations of monies to erect, repair and equip buildings and for
the cost of operation of the schools of the joint district.
J. One member of the joint board shall be selected chairman. The
chairman shall be selected annually on a rotation basis from among the
participating school districts. The chairman of the joint board shall be a
voting member.
Sec. 12. Section 15-481, Arizona Revised Statutes, is amended to read:
A. If the proposed budget of a school district
B. The county school superintendent shall prepare an informational
report on the proposed increase in the budget and a sample ballot and at
least thirty-five days prior to the election shall transmit the report and
the ballot to the governing board of the school district. For a school
district located in a county with a population of two hundred thousand
persons or more, the governing board, upon receipt of the report and the
ballot, shall mail or distribute the report and the ballot to the households,
in which qualified electors reside, within the school district at least
thirty days prior to the election. For a school district located in a county with a population of less than two hundred thousand persons, the governing
board, upon receipt of the report and the ballot, shall mail or distribute
the report and the ballot to the households within the school district at
least thirty days prior to the election. Any distribution of material
concerning the proposed increase in the budget shall not be conducted by
children enrolled in the school district. The report shall contain the
following information:
1. The date of the election.
2. The polling places and times they are open.
3. The proposed total increase in the budget which exceeds the amount
permitted pursuant to section 15-905.
4. The total amount of the current year's budget, the total amount of
the proposed budget and the total amount of the alternate budget.
5. If the override is for a period of more than one year, a statement
indicating the number of years the proposed increase in the budget would be
in effect and the percentage of the school district's revenue control limit
that the district is requesting for the future years.
6. The proposed total amount of revenues which will fund the increase
in the budget and the amount which will be obtained from a levy of taxes upon
the taxable property within the school district for the first year for which
the budget increase was adopted.
7. The proposed amount of revenues which will fund the increase in the
budget and which will be obtained from other than a levy of taxes upon the
taxable property within the school district for the first year for which the
budget increase was adopted.
8. The dollar amount and the purpose for which the proposed increase
in the budget is to be expended for the first year for which the budget
increase was adopted.
9. At least two arguments, if submitted, but no more than ten
arguments for and two arguments, if submitted, but no more than ten arguments
against the proposed increase in the budget. The arguments shall be in a
form prescribed by the county school superintendent and each argument shall
not exceed two hundred words. Arguments for the proposed increase in the
budget shall be provided in writing and signed by the governing board. If
submitted, additional arguments in favor of the proposed increase in the
budget shall be provided in writing and signed by those in favor. Arguments
against the proposed increase in the budget shall be provided in writing and
signed by those in opposition. The names of those persons other than the
governing board or superintendent submitting written arguments shall not be
included in the report without their specific permission, but shall be made
available only upon request to the county school superintendent. The county
school superintendent shall review all factual statements contained in the
written arguments and correct any inaccurate statements of fact. The
superintendent shall not review and correct any portion of the written arguments which are identified as statements of the author's opinion. The
county school superintendent shall make the written arguments available to
the public as provided in title 39, chapter 1, article 2. A deadline for
submitting arguments to be included in the informational report shall be set
by the county school superintendent.
10. A statement that the alternate budget shall be adopted by the
governing board if the proposed budget is not adopted by the qualified
electors of the school district.
11. The full cash value, the assessed valuation and the estimated
amount of the secondary tax bill if the proposed budget is adopted for each
of the following:
(a) An owner-occupied residence whose assessed valuation is the
average assessed valuation of property classified as class five for the
current year in the school district.
(b) An owner-occupied residence whose assessed valuation is one-half
of the assessed valuation of the residence in subdivision (a) of this
paragraph.
(c) An owner-occupied residence whose assessed valuation is twice the
assessed valuation of the residence in subdivision (a) of this paragraph.
(d) A business whose assessed valuation is the average of the assessed
valuation of property classified as class three for the current year in the
school district.
C. For the purpose of this section, the school district may use its
staff, equipment, materials, buildings or other resources only to distribute
the informational report at the school district office or at public hearings
and to produce such information as required in subsection B of this section,
provided that nothing in this subsection shall preclude school districts from
holding or participating in any public hearings at which testimony is given
by at least one person for the proposed increase and one person against the
proposed increase.
D. The elections prescribed in subsection A of this section shall be
held on a date prescribed by section 16-204 and shall be conducted as nearly
as practicable in the manner prescribed in article 1 of this chapter,
sections 15-422 through 15-424 and section 15-426, relating to special
elections, except that:
1. The notices required pursuant to section 15-403 shall be posted not
less than twenty-five days before the election.
2. Ballots shall be counted pursuant to title 16, chapter 4,
article 10.
E. If the election is to exceed the revenue control limit and if the
proposed increase will be fully funded by a levy of taxes upon the taxable
property within the school district, the ballot shall contain the words
"budget increase, yes" and "budget increase, no", and the voter shall signify
his desired choice. The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget, a statement that
the amount of the proposed increase will be based on a percentage of the
school district's revenue control limit in future years, if applicable, as
provided in subsection P of this section and the following statement:
Any budget increase authorized by this election shall be
entirely funded by a levy of taxes upon the taxable property
within this school district for the year for which adopted and
for ____ subsequent years, shall not be realized from monies
furnished by the state and shall not be subject to the
limitation on taxes specified in article IX, section 18,
Constitution of Arizona. Based on an estimate of assessed
valuation used for secondary property tax purposes, the proposed
increase in the school district's budget over that allowed by
law would result in an estimated increase in the school
district's tax rate of _______________ dollar per one hundred
dollars of assessed valuation used for secondary property tax
purposes and is in addition to the school district's tax rate
which will be levied to fund the school district's revenue
control limit allowed by law.
F. If the election is to exceed the revenue control limit and if the
proposed increase will be fully funded by revenues from other than a levy of
taxes upon the taxable property within the school district, the ballot shall
contain the words "budget increase, yes" and "budget increase, no", and the
voter shall signify his desired choice. The ballot shall also contain:
1. The amount of the proposed increase of the proposed budget over the
alternate budget.
2. A statement that the amount of the proposed increase will be based
on a percentage of the school district's revenue control limit in future
years, if applicable, as provided in subsection P of this section.
3. The following statement:
Any budget increase authorized by this election shall be
entirely funded by this school district with revenues from other
than a levy of taxes on the taxable property within the school
district for the year for which adopted and for ______
subsequent years and shall not be realized from monies furnished
by the state.
G. Except as provided in subsection H of this section, the maximum
budget increase which may be requested and authorized as provided in
subsection E or F of this section or the combination of subsections E and F
of this section is ten per cent of the revenue control limit as provided in
section 15-947, subsection A for the budget year.
H. Special budget override provisions for school districts with a
student count of less than one hundred fifty-four in kindergarten programs and grades one through eight or with a student count of less than one hundred
seventy-six in grades nine through twelve are as follows:
1. The maximum budget increase that may be requested and authorized
as provided in subsections E and F of this section is the greater of the
amount prescribed in subsection G of this section or a limit computed as
follows:
(a) For common or unified districts with a student count of less than
one hundred fifty-four in kindergarten programs and grades one through eight,
the limit computed as prescribed in item (i) or (ii) of this subdivision,
whichever is appropriate:
(i)
Student
(ii)
Student
(b) For unified or union high school districts with a student count
of less than one hundred seventy-six in grades nine through twelve, the limit
computed as prescribed in item (i) or (ii) of this subdivision, whichever is
appropriate:
Student
(ii)
Student
(c) If both subdivisions (a) and (b) of this paragraph apply to a
unified school district, its limit for the purposes of this paragraph is the
combination of its elementary limit and its secondary limit.
2. If a school district utilizes the provisions of this subsection to
request an override of more than one year, the ballot shall include an
estimate of the amount of the proposed increase in the future years in place
of the statement that the amount of the proposed increase will be based on
a percentage of the school district's revenue control limit in future years,
as prescribed in subsections E and F of this section.
3. Notwithstanding subsection P of this section, the maximum period
of an override authorized pursuant to this subsection is five years.
4. Subsection P, paragraphs 1 and 2 of this section do not apply to
overrides authorized pursuant to this subsection.
I. If the election is to exceed the revenue control limit as provided
in section 15-482 and if the proposed increase will be fully funded by a levy
of taxes on the taxable property within the school district, the ballot shall
contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify his desired choice. The ballot shall also contain the
amount of the proposed increase of the budget over the alternate budget, a
statement that the amount of the proposed increase will be based on a
percentage of the school district's revenue control limit in future years,
if applicable, as provided in subsection Q of this section, and the following
statement:
Any budget increase authorized by this election shall be
entirely funded by a levy of taxes on the taxable property within
this school district for the year for which adopted and for _____
subsequent years, shall not be realized from monies furnished by
the state and shall not be subject to the limitation on taxes
specified in article IX, section 18, Constitution of Arizona.
Based on an estimate of assessed valuation used for secondary
property tax purposes, the portion of the proposed increase in
the school district's budget over that allowed by law which will
be funded by a levy of taxes upon the taxable property within
this school district would result in an estimated increase in the
school district's tax rate of __________ dollar per one hundred
dollars of assessed valuation used for secondary property tax
purposes and is in addition to the school district's tax rate
that will be levied to fund the school district's revenue control
limit allowed by law.
J. If the election is to exceed the revenue control limit as provided
in section 15-482 and if the proposed increase will be fully funded by
revenues other than a levy of taxes on the taxable property within the school
district, the ballot shall contain the words "budget increase, yes" and
"budget increase, no", and the voter shall signify his desired choice. The
ballot shall also contain the amount of the proposed increase of the proposed
budget over the alternate budget, a statement that the amount of the proposed
increase will be based on a percentage of the school district's revenue
control limit in future years, if applicable, as provided in subsection Q of
this section and the following statement:
Any budget increase authorized by this election shall be
entirely funded by this school district with revenues from other
than a levy of taxes on the taxable property within the school
district for the year for which adopted and for _____ subsequent
years and shall not be realized from monies furnished by the
state.
K. The maximum budget increase that may be requested and authorized
as provided in subsection I or J of this section, or a combination of both
of these subsections, is five per cent of the revenue control limit as
provided in section 15-947, subsection A for the budget year. For a unified
school district, a common school district not within a high school district
or a common school district within a high school district that offers instruction in high school subjects as provided in section 15-447, five per
cent of the revenue control limit means five per cent of the revenue control
limit attributable to the weighted student count in preschool programs for
handicapped children, kindergarten programs and grades one through eight as
provided in section 15-971, subsection B.
L. If the election is to exceed the capital outlay revenue limit and
if the proposed increase will be fully funded by a levy of taxes upon the
taxable property within the school district, the ballot shall contain the
words "budget increase, yes" and "budget increase, no", and the voter shall
signify his desired choice.
Any budget increase authorized by this election shall be
entirely funded by a levy of taxes upon the taxable property
within this school district for the year in which adopted and for
_____ subsequent years, shall not be realized from monies
furnished by the state and shall not be subject to the limitation
on taxes specified in article IX, section 18, Constitution of
Arizona. Based on an estimate of assessed valuation used for
secondary property tax purposes, the proposed increase in the
school district's budget over that allowed by law would result
in an estimated increase in the school district's tax rate of
_______________ dollar per one hundred dollars of assessed
valuation used for secondary property tax purposes and is in
addition to the school district's tax rate which will be levied
to fund the school district's capital outlay revenue limit
allowed by law.
M. If the election is to exceed the capital outlay revenue limit and
if the proposed increase will be fully funded by revenues from other than a
levy of taxes upon the taxable property within the school district, the
ballot shall contain the words "budget increase, yes" and "budget increase,
no", and the voter shall signify his desired choice.
Any budget increase authorized by this election shall be
entirely funded by this school district with revenues from other
than a levy of taxes on the taxable property within the school
district for the year in which adopted and for ______ subsequent
years and shall not be realized from monies furnished by the
state.
N. If the election is to exceed a combination of the revenue control
limit as provided in subsection E or F of this section, the revenue control
limit as provided in subsection I or J of this section or the capital outlay
revenue limit as provided in subsection L or M of this section, the ballot
shall be prepared so that the voters may vote on each proposed increase
separately and shall contain statements required in the same manner as if
each proposed increase were submitted separately.
O. If the election provides for a levy of taxes on the taxable
property within the school district, at least thirty days prior to the
election, the department of revenue shall provide the school district
governing board and the county school superintendent with an estimate of the
school district's assessed valuation used for secondary property tax purposes
for the ensuing fiscal year. The governing board and the county school
superintendent shall use this estimate to translate the amount of the
proposed dollar increase in the budget of the school district over that
allowed by law into a tax rate figure.
P. If the voters in a school district vote to adopt a budget in excess
of the revenue control limit as provided in subsection E or F of this
section, any additional increase shall be included in the aggregate budget
limit for each of the years authorized. Any additional increase shall be
excluded from the determination of equalization assistance. The school
district governing board may, however, levy on the assessed valuation used
for secondary property tax purposes of the property in the school district
the additional increase if adopted under subsection E of this section for the
period of one year, two years or five through seven years as authorized. If
an additional increase is approved as provided in subsection F of this
section, the school district governing board may only use revenues derived
from the school district's prior year's maintenance and operation fund ending
cash balance,
1. Is for two years, the proposed increase in the second year is equal
to the initial proposed percentage increase.
2. Is for five years or more, the proposed increase is equal to the
initial proposed percentage increase in the following years of the proposed
increase, except that in the next to last year it is two-thirds of the
initial proposed percentage increase and it is one-third of the initial
proposed percentage increase in the last year of the proposed increase.
Q. If the voters in a school district vote to adopt a budget in excess
of the revenue control limit as provided in subsection I or J of this
section, any additional increase shall be included in the aggregate budget
limit for each of the years authorized. Any additional increase shall be
excluded from the determination of equalization assistance. The school
district governing board, however, may levy on the assessed valuation used
for secondary property tax purposes of the property in the school district
the additional increase if adopted under subsection I of this section for the
period of one year, two years or five through seven years as authorized. If
an additional increase is approved as provided in subsection J of this
section, the increase may only be budgeted and expended if sufficient monies
are available in the maintenance and operation fund of the school district.
If a budget increase was previously authorized and will be in effect for the
budget year or budget year and subsequent years, as provided in subsection
I or J of this section, the governing board may request a new budget increase
as provided in the same subsection under which the prior budget increase was
adopted that does not exceed the maximum amount permitted under subsection
K of this section. If the voters in the school district authorize the new
budget increase amount, the existing budget increase no longer is in effect.
If the voters in the school district do not authorize the budget increase
amount, the existing budget increase remains in effect for the time period
for which it was authorized. The maximum additional increase authorized as
provided in subsection I or J of this section and the additional increase
that is included in the aggregate budget limit is based on a percentage of
a school district's revenue control limit in future years, if the budget
increase is authorized for more than one year. If the additional increase:
1. Is for two years, the proposed increase in the second year is equal
to the initial proposed percentage increase.
2. Is for five years or more, the proposed increase is equal to the
initial proposed percentage increase in the following years of the proposed
increase, except that in the next to last year it is two-thirds of the
initial proposed percentage increase and it is one-third of the initial
proposed percentage increase in the last year of the proposed increase.
R. If the voters in a school district vote to adopt a budget in excess
of the capital outlay revenue limit as provided in subsection L of this
section, any additional increase shall be included in the aggregate budget
limit for each of the years authorized. The additional increase shall be excluded from the determination of equalization assistance. The school
district governing board may, however, levy on the assessed valuation used
for secondary property tax purposes of the property in the school district
the additional increase for the period authorized but not to exceed ten
years.
S. If the voters in a school district vote to adopt a budget in excess
of the capital outlay revenue limit as provided in subsection M of this
section, any additional increase shall be included in the aggregate budget
limit for each of the years authorized. The additional increase shall be
excluded from the determination of equalization assistance. The school
district governing board may only use revenues derived from the school
district's prior year's maintenance and operation fund ending cash
balance
T. In addition to subsections P and S of this section, from the
maintenance and operation fund and capital outlay fund ending cash balances,
U. If the voters in a school district disapprove the proposed budget,
the alternate budget which, except for any budget increase authorized by a
prior election, does not include an increase in the budget in excess of the
amount provided in section 15-905 shall be adopted by the governing board as
provided in section 15-905.
V. The governing board may request that any override election be
cancelled if any change in chapter 9 of this title changes the amount of the
aggregate budget limit as provided in section 15-905. The request to cancel
the override election shall be made to the county school superintendent at
least ten days prior to the date of the scheduled override election.
1. THE BALLOT SHALL INCLUDE THE FOLLOWING STATEMENT IN ADDITION TO ANY
OTHER STATEMENT REQUIRED BY THIS SECTION:
THE CAPITAL IMPROVEMENTS THAT ARE PROPOSED TO BE FUNDED
THROUGH THIS OVERRIDE ELECTION ARE TO EXCEED THE STATE STANDARDS
AND ARE IN ADDITION TO MONIES PROVIDED BY THE STATE.
___________ SCHOOL DISTRICT IS PROPOSING TO INCREASE ITS
BUDGET BY $__________ TO FUND CAPITAL IMPROVEMENTS OVER AND ABOVE
THOSE FUNDED BY THE STATE. UNDER THE STUDENTS FIRST CAPITAL
FUNDING SYSTEM, _________ SCHOOL DISTRICT IS ENTITLED TO STATE
MONIES FOR BUILDING RENEWAL, NEW CONSTRUCTION AND RENOVATION OF
SCHOOL BUILDINGS IN ACCORDANCE WITH STATE LAW.
2. THE BALLOT SHALL CONTAIN THE WORDS "BUDGET INCREASE, YES" AND
"BUDGET INCREASE, NO", AND THE VOTER SHALL SIGNIFY THE VOTER'S DESIRED
CHOICE.
3. AT LEAST EIGHTY-FIVE DAYS BEFORE THE ELECTION, A SCHOOL DISTRICT SHALL SUBMIT PROPOSED BALLOT LANGUAGE TO THE DIRECTOR OF THE ARIZONA
LEGISLATIVE COUNCIL. THE DIRECTOR OF THE ARIZONA LEGISLATIVE COUNCIL SHALL
REVIEW THE PROPOSED BALLOT LANGUAGE TO DETERMINE WHETHER THE PROPOSED BALLOT
LANGUAGE COMPLIES WITH THIS SECTION. IF THE DIRECTOR OF THE ARIZONA
LEGISLATIVE COUNCIL DETERMINES THAT THE PROPOSED BALLOT LANGUAGE DOES NOT
COMPLY WITH THIS SECTION, THE DIRECTOR, WITHIN TEN CALENDAR DAYS OF THE
RECEIPT OF THE PROPOSED BALLOT LANGUAGE, SHALL NOTIFY THE SCHOOL DISTRICT OF
THE DIRECTOR'S OBJECTIONS AND THE SCHOOL DISTRICT SHALL RESUBMIT REVISED
BALLOT LANGUAGE TO THE DIRECTOR FOR APPROVAL.
4. NO LATER THAN TEN DAYS BEFORE AN ELECTION CONDUCTED PURSUANT TO THIS SECTION, A SCHOOL DISTRICT SHALL MAIL TO EACH QUALIFIED ELECTOR IN THE
SCHOOL DISTRICT A PUBLICITY PAMPHLET. THE PUBLICITY PAMPHLET SHALL CONTAIN
AT A MINIMUM, THE FOLLOWING INFORMATION:
(
(
(
X. IF THE VOTERS APPROVE THE BUDGET INCREASE PURSUANT TO SUBSECTION
L OR M OF THIS SECTION, THE SCHOOL DISTRICT SHALL NOT USE THE OVERRIDE
PROCEEDS FOR ANY PURPOSES OTHER THAN THE PROPOSED CAPITAL IMPROVEMENTS LISTED
IN THE PUBLICITY PAMPHLET, EXCEPT THAT UP TO TEN PER CENT OF THE OVERRIDE
PROCEEDS MAY BE USED FOR GENERAL CAPITAL EXPENSES, INCLUDING COST OVERRUNS
OF PROPOSED CAPITAL IMPROVEMENTS.
Y. EACH SCHOOL DISTRICT THAT INCREASES ITS BUDGET PURSUANT TO
SUBSECTION L OR M OF THIS SECTION IS REQUIRED TO HOLD A PUBLIC MEETING EACH
YEAR BETWEEN SEPTEMBER 1 AND OCTOBER 31 AT WHICH AN UPDATE OF THE PROGRESS
OF CAPITAL IMPROVEMENTS FINANCED THROUGH THE OVERRIDE IS DISCUSSED AND AT
WHICH THE PUBLIC IS PERMITTED AN OPPORTUNITY TO COMMENT. AT A MINIMUM, THE
UPDATE SHALL INCLUDE A COMPARISON OF THE CURRENT STATUS AND THE ORIGINAL
PROJECTIONS ON THE CONSTRUCTION OF CAPITAL IMPROVEMENTS, THE COSTS OF CAPITAL
IMPROVEMENTS AND THE COSTS OF CAPITAL IMPROVEMENTS IN PROGRESS OR COMPLETED
SINCE THE PRIOR MEETING AND THE FUTURE CAPITAL PLANS OF THE SCHOOL DISTRICT.
THE SCHOOL DISTRICT SHALL INCLUDE IN THE PUBLIC MEETING A DISCUSSION OF THE
SCHOOL DISTRICT'S USE OF STATE CAPITAL AID AND VOTER-APPROVED BONDING IN
FUNDING CAPITAL IMPROVEMENTS, IF ANY.
Sec. 13. Section 15-491, Arizona Revised Statutes, is amended to read:
A. The governing board of a school district may, and upon petition of
fifteen per cent of the school electors as shown by the poll list at the last
preceding annual school election shall, call an election for the following
purposes:
1. To locate or change the location of school buildings.
2. To purchase or sell school sites or buildings or sell school sites
pursuant to section 15-342 or to build school buildings, but the
authorization by vote of the school district shall not necessarily specify
the site to be purchased.
3. To decide whether the bonds of the school district shall be issued
and sold for the purpose of raising money for purchasing or leasing school
lots, for building
4. To lease for five or more years, as lessor or as lessee, school
buildings or grounds. Approval by a majority of the school district electors
voting authorizes the governing board to negotiate for and enter into a
lease. The ballot shall list the school buildings or grounds for which a
lease is sought. If the governing board does not enter into a lease of five
or more years of the school buildings or grounds listed on the ballot within
five years of the date of the election and the board continues to seek such a lease, the governing board shall call a special election to reauthorize the
board to negotiate for and to enter into a lease of five or more years.
B. No petition shall be required for the holding of the first election
to be held in a joint common school district for any of the purposes
specified in subsection A of this section. The notice of election required
by section 15-492 shall be published in each of the counties which comprise
the joint common school district. The certification of election results
required by section 15-493 shall be made to the board of supervisors of the
jurisdictional county.
C. When the election is called to determine whether or not bonds of
the school district shall be issued and sold for the purposes enumerated in
the call for the election, the question shall be submitted to the vote of the
qualified electors of the school district as defined in section 15-401 and
subject to the provisions of section 15-402.
D. The governing board shall order the election to be held in the
manner prescribed in title 35, chapter 3, article 3. If a petition for an
election has been filed with the governing board as provided in subsection
A of this section, the board shall act upon the petition within sixty days
by ordering the election to be held as provided in this subsection. If a
school district bond election is scheduled for the same date a school
district will hold an override election, the governing body shall deliver a
copy of the notice of election and ballot to the county school superintendent
who shall include the notice of election and ballot with the information
report and ballot prepared for the override election. Mailing of the
information required for both the override and bond elections shall
constitute compliance with the notice provisions of this section.
E. The elections to be held pursuant to this section shall only be
held on dates prescribed by section 16-204
1. THE BALLOT SHALL INCLUDE THE FOLLOWING STATEMENT:
THE CAPITAL IMPROVEMENTS THAT ARE PROPOSED TO BE FUNDED
THROUGH THIS BOND ISSUANCE ARE TO EXCEED THE STATE STANDARDS AND
ARE IN ADDITION TO MONIES PROVIDED BY THE STATE.
___________ SCHOOL DISTRICT IS PROPOSING TO ISSUE CLASS B
GENERAL OBLIGATION BONDS TOTALING $__________ TO FUND CAPITAL
IMPROVEMENTS OVER AND ABOVE THOSE FUNDED BY THE STATE. UNDER THE
STUDENTS FIRST CAPITAL FUNDING SYSTEM, _________ SCHOOL DISTRICT
IS ENTITLED TO STATE MONIES FOR BUILDING RENEWAL, NEW
CONSTRUCTION AND RENOVATION OF SCHOOL BUILDINGS IN ACCORDANCE
WITH STATE LAW.
2. THE BALLOT SHALL CONTAIN THE WORDS "BOND APPROVAL, YES" AND "BOND
APPROVAL, NO", AND THE VOTER SHALL SIGNIFY THE VOTER'S DESIRED CHOICE.
3. AT LEAST EIGHTY-FIVE DAYS BEFORE THE ELECTION, A SCHOOL DISTRICT
SHALL SUBMIT PROPOSED BALLOT LANGUAGE TO THE DIRECTOR OF THE ARIZONA
LEGISLATIVE COUNCIL. THE DIRECTOR OF THE ARIZONA LEGISLATIVE COUNCIL SHALL
REVIEW THE PROPOSED BALLOT LANGUAGE TO DETERMINE WHETHER THE PROPOSED BALLOT
LANGUAGE COMPLIES WITH THIS SECTION. IF THE DIRECTOR OF THE ARIZONA
LEGISLATIVE COUNCIL DETERMINES THAT THE PROPOSED BALLOT LANGUAGE DOES NOT
COMPLY WITH THIS SECTION, THE DIRECTOR, WITHIN TEN CALENDAR DAYS OF THE
RECEIPT OF THE PROPOSED BALLOT LANGUAGE, SHALL NOTIFY THE SCHOOL DISTRICT OF
THE DIRECTOR'S OBJECTIONS AND THE SCHOOL DISTRICT SHALL RESUBMIT REVISED
BALLOT LANGUAGE TO THE DIRECTOR FOR APPROVAL.
4. NO LATER THAN TEN DAYS BEFORE A CLASS B BOND ELECTION CONDUCTED
PURSUANT TO THIS SECTION, A SCHOOL DISTRICT SHALL MAIL TO EACH QUALIFIED
ELECTOR IN THE SCHOOL DISTRICT A PUBLICITY PAMPHLET. THE PUBLICITY PAMPHLET
SHALL CONTAIN AT A MINIMUM, THE FOLLOWING INFORMATION:
( A ) AN EXECUTIVE SUMMARY OF THE SCHOOL DISTRICT'S MOST RECENT
CAPITAL PLAN SUBMITTED TO THE SCHOOL FACILITIES BOARD.
( B ) A COMPLETE LIST OF EACH PROPOSED CAPITAL IMPROVEMENT THAT WILL
BE FUNDED WITH THE PROCEEDS OF THE BONDS AND A DESCRIPTION OF THE PROPOSED COST
OF EACH IMPROVEMENT, INCLUDING A SEPARATE AGGREGATION OF CAPITAL IMPROVEMENTS
FOR ADMINISTRATIVE PURPOSES AS DEFINED BY THE SCHOOL FACILITIES BOARD.
( C ) THE TAX RATE ASSOCIATED WITH EACH OF THE PROPOSED CAPITAL
IMPROVEMENTS AND THE ESTIMATED COST OF EACH CAPITAL IMPROVEMENT FOR THE OWNER
OF A SINGLE FAMILY HOME THAT IS VALUED AT EIGHTY THOUSAND DOLLARS.
I. IF THE VOTERS APPROVE THE ISSUANCE OF SCHOOL DISTRICT CLASS B
BONDS, THE SCHOOL DISTRICT SHALL NOT USE THE BOND PROCEEDS FOR ANY PURPOSES
OTHER THAN THE PROPOSED CAPITAL IMPROVEMENTS LISTED IN THE PUBLICITY
PAMPHLET, EXCEPT THAT UP TO TEN PER CENT OF THE BOND PROCEEDS MAY BE USED FOR
GENERAL CAPITAL EXPENSES, INCLUDING COST OVERRUNS OF PROPOSED CAPITAL
IMPROVEMENTS.
J. EACH SCHOOL DISTRICT THAT ISSUES BONDS UNDER THIS SECTION IS
REQUIRED TO HOLD A PUBLIC MEETING EACH YEAR BETWEEN SEPTEMBER 1 AND OCTOBER
31 AT WHICH AN UPDATE OF THE PROGRESS OF CAPITAL IMPROVEMENTS FINANCED
THROUGH BONDING IS DISCUSSED AND AT WHICH THE PUBLIC IS PERMITTED AN
OPPORTUNITY TO COMMENT. AT A MINIMUM, THE UPDATE SHALL INCLUDE A COMPARISON
OF THE CURRENT STATUS AND THE ORIGINAL PROJECTIONS ON THE CONSTRUCTION OF
CAPITAL IMPROVEMENTS, THE COSTS OF CAPITAL IMPROVEMENTS AND THE COSTS OF
CAPITAL IMPROVEMENTS IN PROGRESS OR COMPLETED SINCE THE PRIOR MEETING AND THE
FUTURE CAPITAL BONDING PLANS OF THE SCHOOL DISTRICT. THE SCHOOL DISTRICT
SHALL INCLUDE IN THE PUBLIC MEETING A DISCUSSION OF THE SCHOOL DISTRICT'S USE
OF STATE CAPITAL AID AND VOTER-APPROVED CAPITAL OVERRIDES IN FUNDING CAPITAL
IMPROVEMENTS, IF ANY.
Sec. 14. Section 15-902, Arizona Revised Statutes, is amended to read:
A. For a common or a unified school district in which the average
daily membership through the first one hundred days in session of the current
year has exceeded the average daily attendance through the first one hundred
days in session of the current year by more than six per cent, the student
count shall be determined by an adjusted average daily membership computed
by multiplying the actual average daily attendance by one hundred six per
cent.
B. For a high school district in which the average daily membership
through the first one hundred days in session of the current year exceeds the
average daily attendance through the first one hundred days in session of the
current year by more than eight and one-half per cent, the student count
shall be determined by an adjusted average daily membership computed by
multiplying the actual average daily attendance by one hundred eight and
one-half per cent. If the high school district which utilized adjusted
average daily membership pursuant to this subsection does not qualify for
equalization assistance as provided by section 15-971, the computation of
additional state aid for education as provided in section 15-972 for that
district shall not include in the primary property tax rate the amount of
primary property taxes necessary to fund an amount computed as follows:
1. Determine the revenue control limit, capital outlay revenue limit
2. Add the
3. Determine the revenue control limit, capital outlay revenue limit
and
4. Add the
5. Subtract the sum determined under paragraph 4 of this subsection
from the sum determined under paragraph 2 of this subsection.
C. A school district required to utilize adjusted average daily
membership as provided in this section may apply to the department of
education for a further adjustment if student absences for any period of
three consecutive days or more result from any of the following reasons:
1. Widespread illness.
2. Adverse weather conditions.
3. Concerted refusal by students to attend classes.
D. All student absence figures
E. A school district required to use adjusted average daily membership
as provided in this section may apply to the department of education for a
further adjustment due to absences of pupils with chronic health problems as
defined in section 15-346 if the school district is providing services to the
pupils during their absence from school.
F. A pupil is enrolled if the pupil is currently registered in the
school district. In addition, the uniform system of financial records shall
contain procedures to ensure that enrollment is determined by all school
districts on a uniform basis.
G. Any determination of average daily attendance and average daily
membership shall be based on the records of the superintendent of public
instruction.
H. For school districts which maintain an approved year-round school
year operation program, an educational program offered on the basis of a four
day school week or an alternative kindergarten program offered on the basis
of a three day school week, student count shall be based on a computation as
prescribed by the superintendent of public instruction on the one hundred
seventy-five days' equivalency of instructional time as approved by the
superintendent of public instruction during which each pupil is enrolled.
I. School districts shall be required to record
J. Absences shall be made part of the attendance record and shall be
forwarded
K. If a new school district is formed by the subdivision of an
existing school district as provided in section 15-458, the new school
district shall determine its student count, the approved daily route mileage
and the number of eligible students transported on the basis of where pupils
reside within the boundaries of the new school district when computing
assistance as provided in this chapter. The school district shall determine
its student count, the approved daily route mileage and the number of
eligible students transported on the basis of where pupils reside within the
diminished boundaries of the school district when computing a school district
budget limit and assistance as provided in this chapter. The combined student
count in the new districts may not exceed the student count of the school
district which would have existed if the subdivision had not occurred.
Sec. 15. Section 15-903, Arizona Revised Statutes, is amended to read:
A. The superintendent of public instruction shall in conjunction with
the auditor general prepare and prescribe a budget format to be utilized by
all school districts
B. The budget format shall be designed to allow all school districts
1. The special education program subsection shall include, but is not
limited to, programs for each disability classification as defined in section
15-761 and programs for gifted, vocational and technological education,
remedial education and bilingual students. The total expenditures for each
of these programs shall be included on the budget form.
2. The pupil transportation subsection shall include all operational
expenditures relating to the transportation of pupils, including all
operational expenditures within a contract if the school district contracts
for pupil transportation.
C.
1. Land, buildings and improvements to land and buildings, including
labor and related employee benefits costs and material costs if work is
performed by school district employees.
2. Furniture, furnishings, athletic equipment and other equipment,
including computer software.
3. Pupil and nonpupil transportation vehicles and equipment, including
all capital expenditures within a contract if the school district contracts
for pupil transportation.
4. Textbooks and related printed subject matter materials adopted by
the governing board.
5. Instructional aids.
6. Library books.
7. Payment of principal and interest on bonds.
8. Repayment of monies received from the capital equity fund as
provided in section 15-1054, which shall be a separate subsection.
D.
E. The budget format shall contain distinct subsections for the
following:
1. Special programs to improve academic achievement of pupils in
kindergarten programs and grades one through three as provided in section
15-482.
2. School plant funds.
3. Capital outlay budget increases as provided in section 15-481.
4. Property taxation including the following:
(a) The primary tax rates for the school district for the current year
and the budget year.
(b) The secondary tax rates
(c)
(d)
F. The budget format shall also contain:
1. A statement identifying proposed pupil-teacher ratios and
pupil-staff ratios relating to the provision of special education services
for the budget year.
2. A statement identifying the number of full-time equivalent
certified employees.
3. If a governing board uses section 15-942 relating to the adjustment
for rapid decline in student count, a statement identifying the actual per
cent decline in student count and a statement identifying the additional
allowable expenditures attributable to using the rapid decline provisions as
provided in section 15-942.
G. The special projects section shall include budgeted expenditures for
state special projects, including special adult projects and career
education, such federal special projects as ESEA title programs, vocational
education and title IV Indian education, and other special projects.
Sec. 16. Section 15-904, Arizona Revised Statutes, is amended to read:
A. The governing board of each school district shall
B. In addition to the information required in subsection A of this
section, the annual financial report shall contain detailed information on
the budgeted and actual expenditures from the bond building
C. Except as provided in subsection D of this section, the governing
board shall publish the annual financial report
D. The governing board may publish or mail a summary of the annual
financial report in the same manner as provided in subsection C of this
section. The auditor general in conjunction with the department of education
shall prescribe the form of the summary of the annual financial report for
use by the governing boards.
E. The superintendent of public instruction shall compile the
financial reports of the school districts
F. This section does not apply to county school superintendents in the
conduct of an accommodation school.
Sec. 17. Section 15-905, Arizona Revised Statutes, is amended to read:
A. Not later than July 5 of each year or no later than the publication
of notice of the public hearing and board meeting as required by this
section, the governing board of each school district shall prepare and
furnish to the superintendent of public instruction and the county school
superintendent a proposed budget
1. The total amount of revenues from all sources that was necessary
to meet the school district's budget for the current year.
2. The total amount of revenues by source that will be necessary to
meet the proposed budget of the school district, excluding property taxes.
The governing board shall prepare the proposed budget and a summary of the
proposed budget. Both documents shall be kept on file at the school district
office and shall be made available to the public upon request. The auditor
general in conjunction with the department of education shall prescribe the
form of the summary of the proposed budget for use by governing boards.
School district governing boards may include in the proposed budget any items
or amounts which are authorized by legislation filed with the secretary of state and which will become effective during the budget year. If subsequent
events prevent the legislation from becoming effective, school district
governing boards must reduce their budgets by the amounts budgeted pursuant
to the legislation which did not become effective.
B. The governing board of each school district shall prepare a notice
fixing a time not later than July 15 and designating a public place within
each school district at which a public hearing and board meeting shall be
held. The governing board shall present the proposed budget for
consideration of the residents and the taxpayers of the school district at
such hearing and meeting.
C. The governing board of each school district shall publish or mail,
prior to the hearing and meeting, a copy of the proposed budget or the
summary of the proposed budget and, in addition, a notice of the public
hearing and board meeting no later than ten days prior to the meeting. The
proposed budget and the summary of the proposed budget shall contain the
percentage of increase or decrease in each budget category of the proposed
budget as compared to each category of the budget for the current year.
Notification shall be either by publication in a newspaper of general
circulation within the school district in which the size of the newspaper
print shall be at least eight-point type or by mailing the information to
each household in the school district. The cost of publication or mailing
shall be a charge against the school district. The publisher's affidavit of
publication shall be filed by the governing board with the superintendent of
public instruction within thirty days after publication. If the budget or
proposed budget and notice are mailed, the board shall file an affidavit of
mailing with the superintendent of public instruction within thirty days
after the mailing. If a truth in taxation notice and hearing is required
under section 15-905.01, the governing board may combine the notice and
hearing under this section with the truth in taxation notice and hearing.
D. At the time and place fixed in the notice, the governing board
shall hold the public hearing and present the proposed budget to the persons
attending the hearing. Upon request of any person, the governing board shall
explain the budget, and any resident or taxpayer of the school district may
protest the inclusion of any item. A governing board member who has a
substantial interest, as defined in section 38-502, in a specific item in the
school district budget shall refrain from voting on the specific item. A
governing board member may without creating a conflict of interest
participate in adoption of a final budget even though the member may have
substantial interest in specific items included in the budget.
E. Immediately following the public hearing the president shall call
to order the governing board meeting for the purpose of adopting the budget.
The governing board shall adopt the budget which shall not exceed the general
budget limit
F. The governing board of each school district may budget for
expenditures within the school district budget as follows:
1. Amounts within the general budget limit, as provided in section
15-947, subsection C, may only be budgeted in the following sections of the
budget:
(a) The maintenance and operation section.
(b) The capital outlay section.
2.
3. FROM AND AFTER JUNE 30, 1999, THE SOFT CAPITAL ALLOCATION LIMIT,
AS PROVIDED IN SECTION 15-947, SUBSECTION E, MAY ONLY BE BUDGETED IN THE SOFT
CAPITAL ALLOCATION SUBSECTION OF THE BUDGET.
G. The governing board may authorize the expenditure of monies
budgeted within the maintenance and operation section of the budget for any
subsection within the section in excess of amounts specified in the adopted
budget only by action taken at a public meeting of the governing board and
if the expenditures for all subsections of the section do not exceed the
amount budgeted as provided in this section.
H. The aggregate budget limit is the sum of the following:
1. The general budget limit as determined in section 15-947 for the
budget year.
2.
I. School districts which overestimated tuition revenues as provided
in section 15-947, subsection C, paragraph 2 shall adjust the general budget
limit and expenditures based upon tuition revenues for attendance of
nonresident pupils during the current fiscal year. School districts which
underestimated tuition revenues may adjust their budgets prior to May 15
based upon tuition revenues for attendance of nonresident pupils during the
current fiscal year. School districts which overestimated revenues as
provided in section 15-947, subsection C, paragraph 2, subdivision (a), items
(iii), (iv) and (v) and subdivision (d) shall adjust the general budget limit
and expenditures based on actual revenues during the current fiscal year. School districts which underestimated such revenues may adjust their budgets
before May 15 based on actual revenues during the current fiscal year.
Procedures for completing adjustments shall be as prescribed in the uniform
system of financial records.
J. A common school district not within a high school district whose
estimated tuition charge for high school pupils exceeds the actual tuition
charge for high school pupils shall adjust the general budget limit and
expenditures based on the actual tuition charge. A common school district
not within a high school district whose estimated tuition charge for high
school pupils is less than the actual tuition charge for high school pupils
may adjust its budget before May 15 based on the actual tuition charge.
Procedures for completing adjustments shall be as prescribed in the uniform
system of financial records. If the adjusted general budget limit requires
an adjustment of state aid and if the adjustment to state aid is not made in
the current year, the superintendent of public instruction shall adjust by
August 15 of the succeeding fiscal year the apportionment of state aid to the
school district to correct any overpayment or underpayment of state aid
received during the current year.
K. The governing board may include P.L. 81-874 assistance allocated
for handicapped children, children with specific learning disabilities and
children residing on Indian lands which is in addition to
L. The state board of education shall hold a hearing if expenditures
by any school district exceed the general budget limit prescribed in section 15-947, subsection C,
M. The governing board of a school district shall reduce the general
budget limit
N. Except as provided in section 15-916, no expenditure shall be made
by any school district for a purpose not included in the budget or in excess
of the aggregate budget limit prescribed in this section, except that if no
budget has been adopted, from July 1 to July 15 the governing board may make
expenditures if the total of the expenditures does not exceed ten per cent
of the prior year's aggregate budget limit. Any expenditures made from July
1 to July 15 and prior to the adoption of the budget shall be included in the
total expenditures for the current year. No expenditure shall be made and no
debt, obligation or liability shall be incurred or created in any year for
any purpose itemized in the budget in excess of the amount specified for the
item irrespective of whether the school district at any time has received or
has on hand funds in excess of those required to meet the expenditures,
debts, obligations and liabilities provided for under the budget except expenditures from cash controlled funds as defined by the uniform system of
financial records and except as provided in section 15-907 and subsection G
of this section. This subsection does not prohibit any school district from
prepaying insurance premiums or magazine subscriptions, or from prepaying any
item which is normally prepaid in order to procure the service or to receive
a discounted price for the service, as prescribed by the uniform system of
financial records.
O. The governing board of a school district which is classified as a
heavily impacted school district having twenty per cent or more pupils
pursuant to 20 United States Code section 238(d)1(A) may determine its
eligibility to increase the amount that may be included in determining the
general budget limit as provided in subsection K of this section and may
increase the amount as follows:
1. For fiscal year 1988-1989:
(a) Multiply one thousand ninety-four dollars by the number of
handicapped children or children with specific learning disabilities,
excluding children who also reside on Indian lands, reported to the division
of impact aid, United States department of education in the district's
application for fiscal year 1987-1988.
(b) Multiply five hundred forty-seven dollars by the number of
children residing on Indian lands, excluding children who are also
handicapped or also have specific learning disabilities, reported to the
division of impact aid, United States department of education in the
district's application for fiscal year 1987-1988.
(c) Multiply one thousand nine hundred fourteen dollars by the number
of children residing on Indian lands who are also handicapped or also have
specific learning disabilities reported to the division of impact aid, United
States department of education in the district's application for fiscal year
1987-1988.
(d) Add the amounts determined in subdivisions (a) through (c).
(e) If the amount of P.L. 81-874 assistance as provided in subsection
K of this section is less than the sum determined in subdivision (d) of this
paragraph, the district is eligible to use the provisions of this subsection.
2. For budget years after 1988-1989, use the provisions of paragraph
1 of this subsection, but increase each dollar amount by the growth rate for
that year as prescribed by law, subject to appropriation and use the number
of children reported in the appropriate category for the current fiscal year.
3. If the district is eligible to use the provisions of this
subsection, subtract the amount of P.L. 81-874 assistance determined in
subsection K of this section from the sum determined in paragraph 1,
subdivision (d) of this subsection. The difference is the increase in the
amount that may be included in determining the general budget limit as
provided in subsection K of this section, if including this amount does not
increase the district's primary tax rate for the budget year. If the amount of P.L. 81-874 assistance determined in subsection K of this section is
adjusted for the current year, the increase determined in this paragraph
shall be recomputed using the adjusted amount and the recomputed increase
shall be reported to the department of education by May 15 on a form
prescribed by the department of education.
4. If a district uses the provisions of this subsection, the district
is not required to adjust its budget for the current year based on
adjustments in the estimated amount of P.L. 81-874 assistance as provided in
subsection K of this section.
P. A school district, except for an accommodation school, which
applies for P.L. 81-874 assistance during the current year may budget an
amount for P.L. 81-874 administrative costs for the budget year. The amount
budgeted for P.L. 81-874 administrative costs is exempt from the revenue
control limit and may not exceed an amount determined for the budgeted year
as follows:
1. Determine the minimum cost. The minimum cost for fiscal year
1990-1991 is two thousand three hundred forty-three dollars. For fiscal year
1991-1992 and thereafter, the minimum cost is the minimum cost for the prior
year increased by the growth rate as prescribed by law, subject to
appropriation.
2. Determine the hourly rate. The hourly rate for fiscal year
1990-1991 is nine dollars thirty-eight cents. For fiscal year 1991-1992 and
thereafter, the hourly rate is the hourly rate for the prior year increased
by the growth rate as prescribed by law, subject to appropriation.
3. Determine the P.L. 81-874 revenues available by subtracting the
4. Determine the total number of administrative hours as follows:
(a) Determine the sum of the following:
(i) 1.00 hours for each high impact pupil who is not handicapped or
does not have specific learning disabilities.
(ii) 1.25 hours for each high impact pupil who is handicapped or has
specific learning disabilities.
(iii) 0.25 hours for each low impact pupil who is not handicapped or
does not have specific learning disabilities.
(iv) 0.31 hours for each low impact pupil who is handicapped or has
specific learning disabilities.
(b) For the purposes of this paragraph:
(i) "High impact pupil" means a pupil who resides on Indian lands or
a pupil who resides on federal property or in low rent housing and whose
parent is employed on federal property or low rent housing property or is on
active duty in uniformed service, as provided in P.L. 81-874, section 3(a)
and as reported in the application for P.L. 81-874 assistance in the current
year.
(ii) "Low impact pupil" means a pupil who resides on nonfederal
property and has a parent who is employed on federal property or low rent
housing property or is on active duty in a uniformed service or a pupil who
resides on federal property or in low rent housing and who does not have a
parent who is employed on federal property or low rent housing property or
is on active duty in uniformed service, as provided in P.L. 81-874, section
3(b) and as reported in the application for P.L. 81-874 assistance in the
current year.
5. Multiply the total number of administrative hours determined in
paragraph 4 of this subsection by the hourly rate determined in paragraph 2
of this subsection.
6. Determine the greater of the minimum cost determined in paragraph
1 of this subsection or the product determined in paragraph 5 of this
subsection.
7. Add to the amount determined in paragraph 6 of this subsection the
amount, if any, to be expended by the school district in the budget year
through an intergovernmental agreement with other school districts or the
department of education to provide P.L. 81-874 technical assistance to
participating districts.
8. Determine the lesser of the amount determined in paragraph 7 of
this subsection or the revenues available as determined in paragraph 3 of
this subsection.
9. The amount determined in paragraph 8 of this subsection is the
maximum amount which may be budgeted for P.L. 81-874 administrative costs for
the budget year as provided in this subsection.
10. If the governing board underestimated the amount that may be
budgeted for P.L. 81-874 administrative costs for the current year, the board
may adjust the general budget limit and the budget before May 15. If the
governing board overestimated the amount that may be budgeted for P.L. 81-874
Q. If a school district governing board has adopted a budget for a
fiscal year based on forms and instructions provided by the auditor general
and the department of education for that fiscal year and if, as a result of
the enactment or nonenactment of proposed legislation after May 1 of the
previous fiscal year, the budget is based on incorrect limits, does not include items authorized by law or does not otherwise conform with law, the
governing board may revise its budget at a public hearing on or before
September 15 to conform with the law. If the governing board does not revise
the budget on or before September 15 and if the budget includes any items not
authorized by law or if the budget exceeds any limits, the governing board
shall adjust or revise the budget as provided in subsection E of this
section.
Sec. 18. Section 15-906, Arizona Revised Statutes, is amended to read:
A. Annually on or before June 30, each school district shall prepare
for all funds a list of liabilities for goods received or services rendered
on or before June 30 which will not be paid by June 30 of the current fiscal
year.
B. Each school district having liabilities payable on June 30 shall
file an advice of encumbrance with the county school superintendent, in the
manner and upon a form prescribed in the uniform system of financial records.
The county school superintendent shall encumber amounts as are necessary and
available to pay the liabilities. Any cash balances remaining in the
maintenance and operation,
C. The county school superintendent may draw warrants against the
obligated in contract amounts for a period of sixty days immediately
following the close of the fiscal year.
D. After expiration of the period of sixty days immediately following
the close of each fiscal year, the remaining obligated in contract balance
shall lapse and no further payments from the maintenance and operation,
Sec. 19. Section 15-909, Arizona Revised Statutes, is amended to read:
A. An accommodation school shall compute a revenue control limit, a
capital outlay revenue limit
B. For the purpose of computing a revenue control limit, a capital
outlay revenue limit
1. A common school district within a high school district if the
school does not offer instruction in grade nine, ten, eleven or twelve or has
not received permission to offer instruction in high school subjects as
provided in section 15-447.
2. A unified school district if the school offers instruction in grade
nine, ten, eleven or twelve and has received permission to offer instruction
in high school subjects as provided in section 15-447.
C. State aid shall be apportioned as provided in section 15-973 to
each county accommodation school.
Sec. 20. Section 15-910, Arizona Revised Statutes, is amended to read:
A. The governing board of a school district may budget for excess
utility costs which are specifically exempt from the revenue control limit
for the school district. The uniform system of financial records shall
specify expenditure items allowable as excess utility costs, which are
limited to direct operational costs of heating, cooling, water and
electricity, telephone communications and sanitational fees. The department
of education and the auditor general shall include in the maintenance and
operation section of the budget format, as provided in section 15-903, a
separate line for utility expenditures and a special excess utility cost
category. The special excess utility cost category shall contain budgeted
expenditures for excess utility costs, determined as follows:
1. Determine the lesser of the total budgeted or total actual utility
expenditures for fiscal year 1984-1985.
2. Multiply the amount in paragraph 1 of this subsection by the total
percentage increase or decrease in the revenue control limit and the capital
outlay revenue limit for the budget year over the revenue control limit and
the capital outlay revenue limit for fiscal year 1984-1985 excluding monies
available from a career ladder program or a teacher compensation program
provided for in section 15-952.
3. The sum of the amounts in paragraph 1 and paragraph 2 of this
subsection is the amount budgeted in the utility expenditure line.
4. Additional expenditures for utilities are budgeted in the excess
utility cost category.
B. The governing board shall apply the same percentage increase or
decrease allowed in the revenue control limit and the capital outlay revenue
limit as provided in section 15-905, subsection E or section 15-948 to the
utility expenditure line of the budget.
C. The governing board may expend from the excess utility cost
category only after it has expended for utility purposes the full amount
budgeted in the utility expenditure line of the budget.
D. The governing board may, after notice is given and a public meeting
is held as provided in section 15-905, subsection D, revise at any time
before May 15 the amount budgeted in the excess utility cost category for the
current year.
E. If the revised excess utility cost category results in an
expenditure of monies in excess of school district revenues for the current
year, the county school superintendent shall include within the revenue
estimate for the budget year monies necessary to meet the liabilities
incurred by the school district in the current year in excess of revenues
received for the current year.
F. If a school district receives a refund of utility expenditures or
a rebate on energy saving devices or services, the refund or rebate shall be
applied against utility expenditures for the current year as a reduction of
the expenditures, except that the reduction of expenditures shall not exceed
the amount of actual utility expenditures.
G. The governing board of a school district may budget for expenses
of complying with or continuing to implement activities which were required
or permitted by a court order of desegregation or administrative agreement
with the United States department of education office for civil rights
directed toward remediating alleged or proven racial discrimination which are
specifically exempt in whole or in part from the revenue control limit and
the capital outlay revenue limit. This exemption applies only to expenses
incurred for activities which are begun before the termination of the court
order or administrative agreement.
H. If a governing board chooses to budget monies outside of the
revenue control limit as provided in subsection G of this section, the
governing board may do one of the following:
1.
2. Notify the county school superintendent to include the cost of the
excess expenses in the county school superintendent's estimate of the
additional amount needed for the school district from the primary property
tax as provided in section 15-991.
3. Employ the provisions of both paragraphs 1 and 2 of this subsection
provided that the total amount transferred and included in the amount needed
from property taxes does not exceed the total amount budgeted as prescribed
in subsection J, paragraph 1 of this section.
I. The maximum amount which a governing board may budget outside of
the capital outlay revenue limit as provided in subsection G of this section
is twelve per cent of the maintenance and operation desegregation budget as
provided in subsection J of this section. If a governing board chooses to
budget monies outside of the capital outlay revenue limit as provided in
subsection G of this section, the governing board may notify the county
school superintendent to include the cost of the excess expenses in the
county school superintendent's estimate of the additional amount needed for
the school district from the primary property tax as provided in section
15-991.
J. A governing board using subsections G, H and I of this section
shall:
1. Prepare and employ a separate maintenance and operation
desegregation budget and capital outlay desegregation budget on a form
prescribed by the superintendent of public instruction in conjunction with
the auditor general. The budget format shall be designed to allow a school
district to plan and provide in detail for expenditures to be incurred solely
as a result of compliance with or continuing to implement activities which
were required or permitted by a court order of desegregation or
administrative agreement with the United States department of education
office for civil rights directed toward remediating alleged or proven racial
discrimination.
2. Prepare as a part of the annual financial report a detailed report
of expenditures incurred solely as a result of compliance with or continuing
to implement activities which were required or permitted by a court order of
desegregation or administrative agreement with the United States department
of education office for civil rights directed toward remediating alleged or
proven racial discrimination, in a format prescribed by the auditor general
in conjunction with the department of education as provided by section
15-904.
K.
L. The governing board of a school district may budget for the bond
issues portion of the cost of tuition charged the district as provided in
section 15-824 for the pupils attending school in another school district,
except that if the district is a common school district not within a high
school district, the district may only include that part of tuition which is
excluded from the revenue control limit and district support level as
provided in section 15-951. The bond issues portion of the cost of tuition
charged is specifically exempt from the revenue control limit of the school
district of residence, and the primary property tax rate set to fund this
amount shall not be included in the computation of additional state aid for
education as provided in section 15-972, except as provided in section
15-972, subsection E. The department of education and the auditor general
shall include in the maintenance and operation section of the budget format,
as provided in section 15-903, a separate category for the bond issues
portion of the cost of tuition.
M. The governing board of a school district may budget for interest
expenses it incurred for registering warrants drawn against a fund of the
school district or net interest expense on tax anticipation notes as
prescribed in section 35-465.05, subsection C for the fiscal year preceding
the current year if the county treasurer pooled all school district monies
for investment as provided in section 15-996 for the fiscal year preceding
the current year and if the school district applied for an apportionment of
state aid before the date set for the apportionment as provided in section
15-973 for the fiscal year preceding the current year. The governing board
may budget an amount for interest expenses for registering warrants or
issuing tax anticipation notes equal to or less than the amount of the
warrant interest expense or net interest expense on tax anticipation notes
as prescribed in section 35-465.05, subsection C for the fiscal year
preceding the current year as provided in this subsection which is
specifically exempt from the revenue control limit.
Sec. 21. Section 15-947, Arizona Revised Statutes, is amended to read:
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 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 the taxable property within the school district, as listed below:
(i) Amounts budgeted as the budget balance carry forward 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) P.L. 81-874 assistance determined for handicapped children,
children with specific learning disabilities and children residing on Indian
lands as provided in section 15-905, subsections K and O.
(vi) P.L. 81-874 administrative costs as provided in section 15-905,
subsection P.
(vii) State assistance for excess tuition as provided in section
15-825.01.
(viii)
(b) Amounts approved pursuant to an override election as provided in
section 15-481 for the applicable fiscal year.
(c) Expenditures for excess utility costs as provided in section
15-910.
(d) Amounts authorized by the county school superintendent pursuant
to section 15-974, subsection C.
(e) Expenditures for complying with a court order of desegregation as
provided in section 15-910.
(f) Expenditures for the bond issues portion of the cost of tuition
as provided in section 15-910.
(g) Interest on registered warrants or tax anticipation notes as
provided in section 15-910.
(h) Amounts budgeted for a jointly owned and operated vocational and
D.
1.
2.
3. Any other budget item that is budgeted in the capital outlay
section of the budget and that is specifically exempt from the capital levy
revenue limit
4.
5. The capital portion of the amounts contained in subsection C,
paragraph 2 of this section.
6.
8. FROM AND AFTER JUNE 30, 1999, THE NET INTEREST EARNED IN THE
UNRESTRICTED CAPITAL OUTLAY FUND THE PREVIOUS FISCAL YEAR.
1. THE SOFT CAPITAL ALLOCATION FOR THE BUDGET YEAR.
3. THE NET INTEREST EARNED IN THE UNRESTRICTED CAPITAL OUTLAY FUND THE
PREVIOUS FISCAL YEAR.
Sec. 22. Section 15-947.01, Arizona Revised Statutes, is amended to
read:
A. The revenue control limit and district support level for a joint
technological education district are equal to the base support level
determined in section 15-943.02.
B. The general budget limit for each joint technological education
district, for each fiscal year, is the sum of the following:
1. The revenue control limit for the budget year.
C.
1. The capital outlay revenue limit for the budget year.
2. The capital levy revenue limit
3. Monies accumulated in the reserve of the capital outlay fund.
D. FROM AND AFTER JUNE 30, 1999, THE UNRESTRICTED CAPITAL BUDGET LIMIT FOR EACH JOINT TECHNOLOGICAL EDUCATION DISTRICT FOR THE BUDGET YEAR IS AS
PROVIDED IN SECTION 15-947, SUBSECTION D.
E. FROM AND AFTER JUNE 30, 1999, THE SOFT CAPITAL ALLOCATION LIMIT FOR
EACH JOINT TECHNOLOGICAL EDUCATION DISTRICT FOR THE BUDGET YEAR IS AS
PROVIDED IN SECTION 15-947, SUBSECTION E.
Sec. 23. Section 15-951, Arizona Revised Statutes, is amended to read:
A. Notwithstanding section 15-947, the revenue control limit for a
common school district not within a high school district is the sum of the
following:
1. The base revenue control limit computed as prescribed in section
15-944 but excluding pupils admitted to another school district as provided
in section 15-824, subsection A, paragraph 2.
2. The tuition payable for high school pupils who attend school in
another school district as provided in section 15-824, subsection A,
paragraph 2, including any transportation charge, except as provided in
subsection H of this section.
3. The transportation revenue control limit for all pupils who reside
in the district except those high school pupils transported by another
district.
B. Notwithstanding subsection A of this section, for the purposes of
sections 15-481, 15-482 and 15-1102, the revenue control limit for a common
school district not within a high school district is the sum of the
following:
1. The base revenue control limit for pupils computed as prescribed
in section 15-944 but excluding pupils admitted to another school district
as provided in section 15-824, subsection A, paragraph 2.
2. The transportation revenue control limit for all pupils who reside
in the district except those high school pupils transported by another
district.
C. Notwithstanding section 15-961, the capital outlay revenue limit
for a common school district not within a high school district is the capital
outlay revenue limit computed as prescribed in section 15-961 but excluding
pupils who are admitted to another school district as provided in section
15-824, subsection A, paragraph 2.
D. Notwithstanding section 15-962,
E. Notwithstanding section 15-947, the district support level for a
common school district not within a high school district is the sum of the
following:
1. The base support level computed as prescribed in section 15-943 but
excluding pupils who are admitted to another school district as provided in
section 15-824, subsection A, paragraph 2.
2. The tuition payable for high school pupils who are admitted to
another school district as provided in section 15-824, subsection A,
paragraph 2, including any transportation charge, except as provided in
subsection H of this section.
3. The transportation support level for all pupils who reside in the
school district except those high school pupils transported by another school
district.
F. For the purpose of determining eligibility to adjust the student
count as provided in section 15-942, the student count for a common school
district not within a high school district is the student count for pupils
in the school district less the student count for pupils enrolled in another
school district as provided in section 15-824, subsection A, paragraph 2.
G. For the purpose of determining eligibility to increase the revenue
control limit and district support level or recompute the revenue control
limit as provided in section 15-948, the student count for a common school
district not within a high school district is the student count for pupils
in kindergarten programs and grades one through twelve, including pupils enrolled in another school district as provided in section 15-824, subsection
A, paragraph 2.
H. The tuition amount in subsections A and E of this section shall not
include amounts per student count for bond issues as prescribed by section
15-824, subsection F, paragraph 1, subdivision (c) in excess of the
following:
1. One hundred fifty dollars if the pupil's school district of
residence pays tuition for seven hundred fifty or fewer pupils to other
school districts.
2. Two hundred dollars if the pupil's school district of residence
pays tuition for one thousand or fewer, but more than seven hundred fifty
pupils to other school districts.
3. The actual cost per student count if the pupil's school district
of residence pays tuition for more than one thousand pupils to other school
districts.
Sec. 24. Section 15-961, Arizona Revised Statutes, is amended to read:
A. A capital outlay revenue limit per student count is established for
fiscal year 1984-1985 as follows:
1. For kindergarten programs and grades one through eight multiply one
hundred fifty-five dollars by the weight which corresponds to the student
count for kindergarten programs and grades one through eight for the school
district as provided in section 15-943, paragraph 1, subdivision (a), column
3. For a school district with a student count of six hundred or more in
kindergarten programs and grades one through eight multiply one hundred
fifty-five dollars by 1.158.
2. For grades nine through twelve multiply one hundred sixty-eight
dollars by the weight which corresponds to the student count for grades nine
through twelve for the school district as provided in section 15-943,
paragraph 1, subdivision (b), column 3. For a school district with a student
count of six hundred or more in grades nine through twelve multiply one
hundred sixty-eight dollars by 1.268.
3. For programs for preschool children with disabilities multiply one
hundred fifty-five dollars by 1.158.
B. For fiscal year 1985-1986 and each year thereafter the capital
outlay revenue limit prescribed in subsection A of this section shall be
adjusted by the growth rate prescribed by law, subject to appropriation.
C. For fiscal year 1985-1986 and each year thereafter the capital
outlay revenue limit for a school district shall be computed as follows:
1. Select the applicable capital outlay revenue limit or limits per
student count for the school district.
2. Multiply the amount or amounts selected in paragraph 1 of this
subsection by the appropriate student count of the school district.
3. If a school district's student count used for the budget year is
greater than one hundred five per cent of the student count used for the
current year's budget, increase the adjusted capital outlay revenue limit
determined in paragraph 2 of this subsection by the actual percentage
increase in the school district's student count.
D. For fiscal year 1985-1986 and each year thereafter, an amount for
the purchase of required textbooks and related printed subject matter
materials shall be used to increase the capital outlay revenue limit for a
school district as determined in subsection C, paragraph 2 or 3 of this
section, whichever is applicable. For fiscal year 1985-1986, the funding
level is fifty-seven dollars fifty cents. For fiscal year 1986-1987 and each
year thereafter, the funding level is the funding level of the previous year adjusted by the growth rate prescribed by law, subject to appropriation. The
amount to be added to the amount in subsection C, paragraph 2 or 3 of this
section, whichever is applicable, to determine the capital outlay revenue
limit for a school district is computed as follows:
1. For fiscal year 1985-1986, multiply the student count in grade nine
by the funding level for the applicable year as prescribed in this
subsection.
2. For fiscal year 1986-1987, multiply the student count in grades
nine and ten by the funding level for the applicable year as prescribed in
this subsection.
3. For fiscal year 1987-1988, multiply the student count in grades
nine through eleven by the funding level for the applicable year as
prescribed in this subsection.
4. For fiscal year 1988-1989 and each year thereafter, multiply the
student count in grades nine through twelve by the funding level for the
applicable year as prescribed in this subsection.
Sec. 25. Section 15-962, Arizona Revised Statutes, is amended to read:
A.
1. For kindergarten programs and grades one through eight
2. For grades nine through twelve
3. For a school district with a student count of six hundred or more
in kindergarten programs and grades one through eight or grades nine through
twelve
4. For programs for preschool children with disabilities
B. Beginning with fiscal year 1986-1987
C. Beginning with fiscal year 1985-1986
1. Select the applicable capital levy revenue limits
2. Multiply the amount selected in paragraph 1 of this subsection by
the appropriate student count of the school district.
D.
1. A plan for the use of the reserve shall follow a standard format
as prescribed in the uniform system of financial records.
2. A plan for the use of the reserve shall be adopted or amended at
a public hearing on the proposed plan. No later than ten days before the
hearing, the governing board shall publish a notice of the public hearing
in a newspaper of general circulation within the school district or the
governing board may mail the notice to each household in the school district.
3. If the governing board adopts or amends a plan for the use of the
reserve that includes the construction of school buildings, excluding
relocatable buildings, or the purchase of school sites at an estimated cost in excess of two hundred fifty thousand dollars for a district with a student
count of at least five hundred or an estimated cost in excess of one hundred
thousand dollars for a district with a student count of fewer than five
hundred, the portion of the plan that includes the construction of school
buildings, excluding relocatable buildings, or purchase of school sites shall
not be implemented until that portion of the plan is approved by a majority
of the qualified electors voting in an election called for such purpose. The
election shall be conducted and the notice and ballots shall be prepared as
provided in section 15-481, except that the governing board shall hold the
election on a date prescribed in section 15-491, subsection E. In this
paragraph, "relocatable buildings" means buildings which are designed to be
relocated as defined in the uniform system of financial records and are
placed on a school site which has existing school buildings.
E.
F. FROM AND AFTER JUNE 30, 1999, A SCHOOL DISTRICT SHALL RECEIVE
ITS SOFT CAPITAL ALLOCATION IN THE AMOUNT DETERMINED IN THIS SECTION FROM MONIES
APPROPRIATED FOR THIS PURPOSE TO THE DEPARTMENT OF EDUCATION. SOFT CAPITAL
ALLOCATION MONIES SHALL ONLY BE USED FOR SHORT-TERM CAPITAL ITEMS THAT ARE
REQUIRED TO MEET ACADEMIC ADEQUACY STANDARDS SUCH AS TECHNOLOGY, TEXTBOOKS,
LIBRARY RESOURCES, INSTRUCTIONAL AIDS, PUPIL TRANSPORTATION VEHICLES,
FURNITURE AND EQUIPMENT. SCHOOL DISTRICTS SHALL NOT USE ANY PORTION OF SOFT
CAPITAL ALLOCATION MONIES FOR MAINTENANCE AND OPERATION EXPENSES. SCHOOL
DISTRICTS MAY USE SOFT CAPITAL ALLOCATION TO MEET ADMINISTRATIVE SOFT CAPITAL
PURPOSES AFTER COMPLYING WITH THE ADEQUACY STANDARDS PRESCRIBED IN SECTION
15-2011.
G. FROM AND AFTER JUNE 30, 1999, SCHOOL DISTRICTS SHALL ESTABLISH A
DISTRICT SOFT CAPITAL ALLOCATION FUND AND SHALL USE THE MONIES ONLY FOR THE
PURPOSES PRESCRIBED IN SUBSECTION F OF THIS SECTION. THE ENDING UNEXPENDED
BUDGET BALANCE IN THE SCHOOL DISTRICT'S SOFT CAPITAL ALLOCATION FUND MAY BE
USED IN FOLLOWING FISCAL YEARS FOR SHORT-TERM CAPITAL ITEMS. SCHOOL DISTRICTS
SHALL PROVIDE TO THE SUPERINTENDENT OF PUBLIC INSTRUCTION AN
ITEMIZED ACCOUNTING ON FORMS PROVIDED BY THE DEPARTMENT OF EDUCATION THAT DETAILS THE
EXPENDITURES OF SOFT CAPITAL ALLOCATION MONIES AT EACH SCHOOL IN THE DISTRICT. THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL FORWARD A COPY OF
THE REPORT TO THE SCHOOL FACILITIES BOARD ESTABLISHED BY SECTION 15-2001.
1. The governing board filed with the United States department of
education division of impact aid an approved application for federal
assistance for construction under P.L. 81-815 for the current or budget year
and has been advised by the division of impact aid that no federal monies are
available to fund its application.
2. The school district has a computed assessed valuation per pupil
which is below the median amount computed by the superintendent of public
instruction for all school districts.
3. The governing board has used any available revenues to reduce its
primary tax rate to zero for any year in which it petitions to budget and
accumulate monies received under P.L. 81-874 for school construction
purposes.
The state board of education may grant approval to a school district
governing board to annually budget
Sec. 26. Section 15-962.01, Arizona Revised Statutes, is amended to
read:
A. The capital outlay revenue limit for a joint technological
education district shall be the amount for students in grades nine through
twelve for districts with a student count of six hundred or more as
prescribed in section 15-961.
B.
Sec. 27. Section 15-963, Arizona Revised Statutes, is amended to read:
A. A school district may apply to the state board of education for
1. Has a student count of fewer than six hundred in kindergarten
programs and grades one through twelve.
2. Transports as eligible students at least one-third of the total
student count of the school district.
3. Has an approved daily route mileage per eligible student
transported of more than 1.0, computed as prescribed in section 15-945,
subsection A, paragraph 4.
B. If a school district receives a capital levy
C. The state board of education may grant
Sec. 28. Section 15-964, Arizona Revised Statutes, is amended to read:
A.
1. Twenty-five per cent of the monies received from forest reserve
funds by the school district in the prior fiscal year as provided in section
41-736.
2. For a school district that is not an accommodation school, the
lesser of:
(a) Twenty-five per cent of the P.L. 81-874 revenues received in the
prior fiscal year.
(b) The total amount of P.L. 81-874 revenues received in the prior
fiscal year minus the sum of the following:
(i)
(ii) The amount of P.L. 81-874 assistance used to increase the general
budget limit as provided in section 15-905, subsections K and O for the prior
fiscal year.
(iii) The amount budgeted for P.L. 81-874 administrative costs as
provided in section 15-905, subsection P
B.
C.
D.
Sec. 29. Section 15-971, Arizona Revised Statutes, is amended to read:
A. Equalization assistance for education is computed by determining
the total of the following:
1. The lesser of a school district's revenue control limit or district
support level as determined in section 15-947 or 15-951.
2. The capital outlay revenue limit of a school district as determined
in section 15-951 or 15-961.
3.
B. From the total of the amounts determined in subsection A of this
section subtract:
1. The amount that would be produced by levying a qualifying tax rate
of two dollars twenty cents per one hundred dollars assessed valuation in a
high school district or in a common school district within a high school
district which does not offer instruction in high school subjects as provided
in section 15-447.
2. The amount that would be produced by levying a qualifying tax rate
of four dollars forty cents per one hundred dollars assessed valuation in a
unified school district, in a common school district not within a high school
district or in a common school district within a high school district which
offers instruction in high school subjects as provided in section 15-447. The
qualifying tax rate shall be applied in the following manner:
(a) For the purposes of the amount determined in subsection A,
paragraph 1 of this section:
(i) Determine separately the percentage that the weighted student
count in preschool programs for handicapped children, kindergarten programs
and grades one through eight and the weighted student count in grades nine
through twelve is to the weighted student count determined in subtotal A as
provided in section 15-943, paragraph 2, subdivision (a).
(ii) Apply the percentages determined in item (i) of this subdivision
to the amount determined in subsection A, paragraph 1 of this section.
(b) For the purposes of the amounts determined in subsection A,
paragraphs 2 and 3 of this section determine separately the amount of the
capital outlay revenue limit
(c) From the amounts determined in subdivisions (a) and (b) of this
paragraph subtract the levy which would be produced by a qualifying tax rate
of two dollars twenty cents per one hundred dollars assessed valuation. If
the qualifying tax rate generates a levy which is in excess of the total
determined in subsection A of this section, the school district shall not be
eligible for equalization assistance. In this subsection "assessed
valuation" includes the values used to determine voluntary contributions
collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1,
article 8.
3. The amount that would be produced by levying a qualifying tax rate
in a joint vocational and technological education district, which shall be
five cents per one hundred dollars assessed valuation unless the joint
legislative tax committee adjusts the rate to a lower rate. Any adjustment
shall be made not later than the Friday preceding the second Monday of August
and shall be calculated so that any additional state aid received by the
joint district is roughly equal to the decrease in state aid from the school
districts which are a part of the joint district.
4. The amount of government property lease excise tax monies that were
distributed to the district pursuant to section 42-1905 during the preceding
fiscal year.
C. County aid for equalization assistance for education shall be
computed as follows:
1. Determine the total equalization assistance for all school
districts in the county as provided in subsections A and B of this section.
2. Determine the total amount of county aid collected for all school
districts in the county as provided in section 15-994.
3.
4.
5.
6. Multiply the amount determined in subsections A and B of this
section by the quotient
7. The amount determined in paragraph 6 of this subsection shall be
the county aid for equalization assistance for education for a school
district.
D. State aid for equalization assistance for education for a school
district shall be computed as follows:
1. Determine the equalization assistance for education for a school
district as provided in subsections A and B of this section.
2. For each county, determine the levy that would be produced by the
tax rate for equalization assistance for education prescribed in section
15-994, subsection A.
3. For each county, determine the total amount to be paid from monies
collected from the tax levy for equalization assistance for education into
the small district service program fund as prescribed by section 15-365 and
into the detention center education fund as prescribed by section 15-913.
4. Subtract the amount determined in paragraph 3 of this subsection
from the amount determined in paragraph 2 of this subsection.
5.
6.
7.
8. Subtract the amount determined in paragraph 7
of this subsection from the amount determined in paragraph 1 of this
subsection.
E. Equalization assistance for education shall be paid from
appropriations for that purpose to the school districts as provided in
section 15-973.
F. A school district shall comply with the program and staff standards
promulgated as provided in section 15-781.01, subsection D, paragraph 11 and
report expenditures on approved vocational and technological education
programs in the annual financial report according to uniform guidelines
prescribed by the uniform system of financial records to be entitled to
receive the additional weight for state aid purposes given to vocational and
technological education programs as provided in section 15-943 computed with
reference to the number of vocational and technological education students
enrolled in the programs.
G. The additional weight for state aid purposes given to special
education as provided in section 15-943 shall be given to school districts
only if special education programs comply with the provisions of chapter 7,
article 4 of this title and the conditions and standards prescribed by the
superintendent of public instruction pursuant to rules of the state board of
education for pupil identification and placement pursuant to sections 15-766
and 15-767.
H. In addition to general fund appropriations, all income
I. The total amount of state monies that may be spent in any fiscal
year for state equalization assistance shall not exceed the amount
appropriated or authorized by section 35-173 for that purpose. This section
shall not be construed to 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.
Sec. 30. Section 15-973, Arizona Revised Statutes, is amended to read:
A. The state board of education shall apportion state aid from
appropriations made for such purpose to the several counties on the basis of
state aid entitlement for the school districts in each county. No allowance
shall be made for nonresident alien children nor for wards of the United
States for whom tuition is paid, but attendance of a student in a school of
a county adjoining the county of his residence outside the state under a
certificate of educational convenience as provided by section 15-825 shall
be deemed to be enrollment in the school of the county or school district of
his residence.
B. Apportionments shall be made as follows:
1. On July 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
2. On September 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
3. On October 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
4. On December 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
5. On January 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
6. On February 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
7. On March 15, one-twelfth of the total amount to be apportioned
during the fiscal year.
8. On April 15, one-sixth of the total amount to be apportioned during
the fiscal year.
9. On May 15, one-sixth of the total amount to be apportioned during
the fiscal year.
10. On June 15, one-twelfth of the total amount to be apportioned
during the fiscal year, except that if the total amount of monies available
to make the payment is less than the amount of the payment, a portion of the
June 15 payment may be delayed no later than June 30 to allow for the receipt
of income from the permanent state common school fund.
The superintendent of public instruction shall furnish to the county
treasurer and the county school superintendent an abstract of the
apportionment and shall certify the apportionment to the department of
administration, which shall draw its warrant in favor of the county treasurer
of each county for the amount apportioned. Upon receipt of the warrant the
county treasurer shall notify the county school superintendent of the amount,
together with any other monies standing to the credit of such school district
in the county school fund.
C. Notwithstanding the provisions of subsection B of this section, if
sufficient appropriated funds are available and on a showing by a school
district that additional state monies are necessary for current expenses, an
apportionment or part of an apportionment of state aid may be paid to the
school district prior to the date set for such apportionment by subsection
B of this section. After the first forty days in session of the current year
a school district may request additional state monies to fund the increased
state aid due to anticipated student growth through the first one hundred
days in session of the current year as provided in section 15-948. In no
event shall a school district have received more than three-fourths of its
total apportionment before April 15 of the fiscal year. Early payments
pursuant to this subsection must be approved by the state treasurer, the
director of the department of administration and the superintendent of public instruction. If the computation of state aid for an accommodation school is
based on P.L. 81-874 monies to be received in the current year pursuant to
section 15-974, subsection A, paragraph 2, the maximum early payment to an
accommodation school shall be determined using an estimate of the P.L. 81-874
monies to be received during the fiscal year.
D.
1. The superintendent of public instruction shall compute the amount
of monies which each school district is eligible to receive under
P.L. 81-874, less P.L. 81-874 monies for children with disabilities, children
with specific learning disabilities and children residing on Indian lands
which are in addition to the basic assistance as provided in 20 United States
Code section 238 (d) 2 (C) and (D), and for which monies have been
appropriated.
2. The superintendent of public instruction shall deduct from state
aid for each school district which is eligible to receive monies under P.L.
81-874 and for which monies are appropriated as provided in paragraph 1 of
this subsection the lesser of:
(a) The maximum allowed by law or regulation.
(b) The amount computed as follows:
(i) For fiscal year 1982-1983, twenty-five per cent of the amount
computed in paragraph 1 of this subsection.
(ii) For fiscal year 1983-1984, fifty per cent of the amount computed
in paragraph 1 of this subsection.
(iii) For fiscal year 1984-1985, seventy-five per cent of the amount
computed in paragraph 1 of this subsection.
(iv) Beginning with fiscal year 1985-1986, ninety-five per cent of the
amount computed in paragraph 1 of this subsection.
3. The reduction in state aid shall be made from equalization
assistance as prescribed in section 15-971 or from additional state aid as
prescribed in section 15-972 during the fiscal year following the fiscal year
in which the monies are received. The superintendent of public instruction
shall make additional adjustments in state aid for allowable deductions which
were not made in any previous fiscal year which is not more than five years
earlier than the year in which the adjustments are made. The superintendent
of public instruction shall give the school district prior notice of the
intention to make the additional adjustments and may distribute the
adjustments over more than one year after considering the effects of the
adjustments on the school district.
E.
F.
G.
H. If a school district which is eligible to receive monies pursuant
to this article is unable to meet a scheduled payment on any lawfully
incurred long-term obligation for debt service as provided in section
15-1022, the county treasurer shall use any amount distributed pursuant to
this section to make the payment. The county treasurer shall keep a record
of all the instances in which a payment is made pursuant to this subsection.
Any monies subsequently collected by the district to make the scheduled
payment shall be used to replace the amount diverted pursuant to this
subsection. When determining the total amount to be funded by a levy of
secondary taxes upon property within the school district for the following
fiscal year, the county board of supervisors shall add to the amounts
budgeted to be expended during the following fiscal year an amount equal to
the total of all payments pursuant to this subsection during the current
fiscal year which were not repaid during the current year.
I. The total amount of state monies that may be spent in any fiscal
year by the state board of education for apportionment of state aid for
education shall not exceed the amount appropriated or authorized by section
35-173 for that purpose. This section shall not be construed to 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.
Sec. 31. Section 15-974, Arizona Revised Statutes, is amended to read:
A. Equalization assistance for education for accommodation schools
shall be computed as follows:
1. Determine the total of the lesser of an accommodation school's
revenue control limit or district support level as determined in section
15-947, an accommodation school's capital outlay revenue limit as determined
in section 15-961
2. From the amount determined in paragraph 1 of this subsection
subtract the monies received from P.L. 81-874 for the prior fiscal year if
the amount to be received in the current fiscal year is equal to or greater
than the amount received in the prior fiscal year. If the amount to be received during the current fiscal year is less than the amount received in
the prior fiscal year, the subtraction shall be determined as follows:
(a) Subtract the amount to be received in the current fiscal year,
adjusting the final payment to reflect actual receipts during the fiscal
year.
(b) If additional P.L. 81-874 monies are received after the
computation of the last payment of state aid but before the end of the fiscal
year, the amount received late shall be subtracted from the equalization
assistance for the following fiscal year, except that the total amount
reduced pursuant to subdivision (a) of this paragraph and this subdivision
shall not exceed the amount of P.L. 81-874 monies received in the prior year.
3. Equalization assistance for an accommodation school shall be the
amount determined in paragraph 2 of this subsection.
B. Equalization assistance for education for accommodation schools
shall be paid from appropriations for that purpose to the school districts
as provided in section 15-973.
C. When an accommodation school has a positive total cash balance at
the end of a fiscal year in its maintenance and operation and
D. The provisions of subsection C of this section shall not apply to
an accommodation school with a student count of one hundred twenty-five or
less in kindergarten programs and grades one through eight or to an
accommodation school which offers instruction in grades nine, ten, eleven or
twelve and which has a student count of one hundred or less in grades nine
through twelve.
E. For the purpose of this section, "monies received from P.L. 81-874"
means total P.L. 81-874 monies less P.L. 81-874 monies for handicapped
children, children with specific learning disabilities and children residing on Indian lands which are in addition to the basic assistance as provided in
20 United States Code section 238, subsection (d), paragraph 2, clauses (C)
and (D).
Sec. 32.
Section
Sec. 33. Section 15-996, Arizona Revised Statutes, is amended to read:
The county treasurer shall:
1. Receive and hold all school district monies and keep a separate
account for each school district and for the special county school reserve
fund. The county treasurer may maintain separate accounts for each fund of
a school district or the county treasurer may maintain only two accounts for
each school district's monies in addition to the funds provided for in
sections 15-1024
2. Pool school district monies for investment except as provided in
sections 15-1024 and 15-1025. Interest earned on the monies pooled for
investment shall be apportioned at least quarterly to the appropriate school
district based on an average monthly balance as prescribed in the uniform
system of accounting for county treasurers as provided in section 41-1279.21.
3. Notwithstanding section 11-605, register warrants only as follows:
(a) If separate accounts are maintained for each fund, warrants may
only be registered on the maintenance and operation,
(b) If the county treasurer maintains only two accounts as provided
in paragraph 1 of this section:
(i) The county treasurer may register warrants only on the first
account and only if the balance of that account is insufficient to pay the
warrants.
(ii) The county treasurer may honor warrants for any federal or state
grant fund with a negative balance as long as the total balance in the second
account is positive. If the second account total balance is negative the
warrant for a federal or state grant fund shall be charged to the maintenance
and operation fund. Any interest charged to the federal or state grant fund
as a result of a negative balance that is in excess of interest earned on the fund shall be transferred to the maintenance and operation fund at the end
of the fiscal year or the end of the grant year. If a federal or state grant
fund has a negative balance at the end of the fiscal year or grant year,
sufficient expenditures shall be transferred to the maintenance and operation
fund to eliminate the negative balance.
4. Notify the county school superintendent by the fifteenth day of
each calendar month of the month end balances of each school district
account.
5. Pay warrants issued by the county school superintendent and duly
endorsed by the person entitled to receive the monies.
Sec. 34. Section 15-1021, Arizona Revised Statutes, is amended to
read:
A.
B. FROM AND AFTER DECEMBER 31, 1998, A SCHOOL DISTRICT MAY ISSUE CLASS B BONDS FOR THE PURPOSES SPECIFIED IN THIS SECTION AND CHAPTER 4, ARTICLE 5
OF THIS TITLE TO AN AMOUNT IN THE AGGREGATE, INCLUDING THE EXISTING CLASS B
INDEBTEDNESS, NOT EXCEEDING FIVE PER CENT OF THE TAXABLE PROPERTY USED FOR
SECONDARY PROPERTY TAX PURPOSES, AS DETERMINED PURSUANT TO SECTION 42-227
WITHIN A SCHOOL DISTRICT AS ASCERTAINED BY THE LAST ASSESSMENT OF STATE AND
COUNTY TAXES PREVIOUS TO ISSUING THE BONDS, OR ONE THOUSAND FIVE HUNDRED
DOLLARS PER STUDENT COUNT AS DETERMINED PURSUANT TO SECTION 15-902, WHICHEVER
AMOUNT IS GREATER. A SCHOOL DISTRICT SHALL NOT ISSUE CLASS B BONDS UNTIL THE
PROCEEDS OF ANY CLASS A BONDS ISSUED BY THE SCHOOL DISTRICT HAVE BEEN
OBLIGATED IN CONTRACT. THE TOTAL AMOUNT OF CLASS A AND CLASS B BONDS ISSUED
BY A SCHOOL DISTRICT SHALL NOT EXCEED THE DEBT LIMITATIONS PRESCRIBED IN
ARTICLE IX, SECTION 8, CONSTITUTION OF ARIZONA.
D. FROM AND AFTER DECEMBER 31, 1998, A UNIFIED SCHOOL DISTRICT, AS DEFINED UNDER ARTICLE IX, SECTION 8.1, CONSTITUTION OF ARIZONA, MAY ISSUE
CLASS B BONDS FOR THE PURPOSES SPECIFIED IN THIS SECTION AND CHAPTER 4,
ARTICLE 5 OF THIS TITLE TO AN AMOUNT IN THE AGGREGATE, INCLUDING THE EXISTING
INDEBTEDNESS, NOT EXCEEDING TEN PER CENT OF THE TAXABLE PROPERTY USED FOR
SECONDARY TAX PURPOSES, AS DETERMINED PURSUANT TO SECTION 42-227 WITHIN A
SCHOOL DISTRICT AS ASCERTAINED BY THE LAST ASSESSMENT OF STATE AND COUNTY
TAXES PREVIOUS TO ISSUING THE BONDS, OR ONE THOUSAND FIVE HUNDRED DOLLARS PER
STUDENT COUNT AS DETERMINED PURSUANT TO SECTION 15-902, WHICHEVER AMOUNT IS
GREATER. A UNIFIED SCHOOL DISTRICT SHALL NOT ISSUE CLASS B BONDS UNTIL THE
PROCEEDS OF ANY CLASS A BONDS ISSUED BY THE UNIFIED SCHOOL DISTRICT HAVE BEEN
OBLIGATED IN CONTRACT. THE TOTAL AMOUNT OF CLASS A AND CLASS B BONDS ISSUED
BY A UNIFIED SCHOOL DISTRICT SHALL NOT EXCEED THE DEBT LIMITATIONS PRESCRIBED
IN ARTICLE IX, SECTION 8.1, CONSTITUTION OF ARIZONA.
G. CLASS B BOND PROCEEDS SHALL NOT BE EXPENDED FOR SOFT CAPITAL ITEMS OR OTHER ITEMS WHOSE USEFUL LIFE IS LESS THAN THE AVERAGE USEFUL LIFE OF THE
BONDS ISSUED, EXCEPT THAT BOND PROCEEDS SHALL NOT BE EXPENDED FOR ITEMS WHOSE
USEFUL LIFE IS LESS THAN FIVE YEARS.
Sec. 35. Title 15, chapter 9, article 7, Arizona Revised Statutes, is amended by adding section 15-1023.01, to read:
B. THIS SECTION DOES NOT APPLY TO ANY VALID OBLIGATION INITIALLY
INCURRED BY A SCHOOL DISTRICT ON OR BEFORE DECEMBER 31, 1998.
C. A SCHOOL DISTRICT MAY PLEDGE SCHOOL DISTRICT REVENUES TO A
MUNICIPAL PROPERTY CORPORATION OR A SPECIAL DISTRICT UNDER TITLE 48 FOR THE
PURPOSE OF CONSTRUCTING TEACHER HOUSING FACILITIES.
D. FOR PURPOSES OF THIS SECTION, "MUNICIPAL PROPERTY CORPORATION"
MEANS A CORPORATION ORGANIZED BY OR AT THE DIRECTION OF A CITY, TOWN OR
SCHOOL DISTRICT TO CONSTRUCT AND OWN A CAPITAL FACILITY THAT THE SCHOOL
DISTRICT PLEDGES TO LEASE OR LEASE-PURCHASE AND FINANCE WITH SCHOOL DISTRICT
REVENUES.
Sec. 36. Section 15-1102, Arizona Revised Statutes, is amended to read:
A. The governing board, or the superintendent or chief administrative
officer with the approval of the governing board, may expend the proceeds
from the sale or lease of school property for the payment of any outstanding
bonded indebtedness of the school district or for the reduction of school
district taxes.
B. A common school or high school district which has an outstanding
bonded indebtedness of seven per cent of the current year's assessed
valuation or less or a unified school district which has an outstanding
bonded indebtedness of fourteen per cent of the current year's assessed
valuation or less may expend the proceeds from the sale or lease of school
property for maintenance and operation or capital outlay, subject to the
following limitations:
1. During the period that proceeds from the sale or lease of school
property are used for capital outlay, the school district shall not call an
override election to exceed the capital outlay revenue limit, except that during the last year of that period the school district may authorize an
override election to exceed the capital outlay revenue limit beginning with
the following year.
2. The total sum of the proceeds from the sale of school property
3. In any fiscal year in which a district utilizes budget increases
as authorized in section 15-481, subsection E or F or section 15-482 or
utilizes the proceeds from the sale of school property
(a) Fifteen per cent of the revenue control limit when using the
proceeds from the sale
(b) Ten per cent of the revenue control limit when using a budget
increase as provided in section 15-481, subsection E or F, or both.
(c) Five per cent of the revenue control limit when using a budget
increase as provided in section 15-482.
C. A common school or high school district which has an outstanding bonded indebtedness of greater than seven per cent of the current year's
assessed valuation or a unified school district which has an outstanding
bonded indebtedness of greater than fourteen per cent of the current year's
assessed valuation may expend the proceeds from the lease or sale of school
property
1.
2.
(b)
D. The governing board, or the superintendent or chief administrative
officer with the approval of the governing board, shall promptly deposit
monies received for and derived from the sale or lease of school property
with the county treasurer who shall establish
E. Notwithstanding subsection C of this section, the governing board,
or the superintendent or chief administrative officer with the approval of
the governing board, may expend the proceeds from the sale
F. Notwithstanding subsections B and D of this section, if the school
district electors approve the sale of school property and the use of the
proceeds for the purchase of school sites or the construction, improvement
or furnishing of school buildings, the proceeds from the sale shall be put
in a separate fund for use for the approved purpose as prescribed by the
uniform system of financial records. This fund is a continuing fund not
subject to reversion, except that after ten years any unexpended monies shall
be put in the school plant fund for use as prescribed in this section.
G. Proceeds from sales by condemnation or sales under threat of
condemnation may be deposited with the county treasurer for deposit in the condemnation fund or the school plant fund of the school district. The
condemnation fund is a continuing fund not subject to reversion, except that
after ten years any unspent monies shall be placed in the school plant fund
to be used as prescribed in this section. The governing board, or the
superintendent or chief administrative officer with the approval of the
governing board, may apply the proceeds in the condemnation fund to:
1. The payment of any outstanding bonded indebtedness of the school
district which is payable from the levy of taxes upon property within the
school district.
2. Construct, acquire, improve, repair or furnish school buildings or
sites after notice and
H. Proceeds from a right-of-way settlement shall be deposited with the
county treasurer for deposit in the condemnation fund of the school district.
The governing board, or the superintendent or chief administrative officer
with the approval of the governing board, shall apply such proceeds in the
condemnation fund to construct, acquire, improve, repair or furnish school
buildings or sites after notice and
I. FOR PURPOSES OF THIS SECTION, "CAPITAL OUTLAY" MEANS UNRESTRICTED CAPITAL OUTLAY AS PRESCRIBED IN SECTION 15-903, SUBSECTION C.
Sec. 37. Section 15-1103, Arizona Revised Statutes, is amended to
read:
A. Monies received for and derived from insurance losses shall be
deposited with the county treasurer who shall credit the deposits to the
insurance proceeds fund of the respective school district. The insurance
proceeds fund of a school district is a continuing fund not subject to
reversion.
B. The governing board, or the superintendent or chief administrative
officer with the approval of the governing board, may apply the proceeds from
insurance recoveries to the payment of any outstanding bonded indebtedness
of the school district which is payable from the levy of taxes upon property
within the school district.
C. The governing board, or the superintendent or chief administrative
officer with the approval of the governing board, may apply the proceeds of
insurance recoveries to construct, acquire, improve, repair or furnish school buildings after notice and
Sec. 38. Section 15-1107, Arizona Revised Statutes, is amended to
read:
A. Monies received for and derived from settlement of legal
controversies or from recovery of costs, attorney fees or damages by a school
district in litigation by or against the school district shall be deposited
with the county treasurer who shall credit the deposits to the litigation
recovery fund of the school district. The litigation recovery fund is a
continuing fund which is not subject to reversion.
B. If a school district receives monies as provided in subsection A
1. Pay any outstanding bonded indebtedness of the school district
which is payable from the levy of taxes on property within the school
district.
2. Construct, acquire, improve, repair or furnish school buildings
after notice and
3. Replace or repair the school property other than school buildings.
C. Except as provided in subsection B
Sec. 39. Title 15, Arizona Revised Statutes, is amended by adding chapter 16, to read:
1. ONE MEMBER WHO IS AN ELECTED MEMBER OF A SCHOOL DISTRICT GOVERNING
BOARD WITH KNOWLEDGE AND EXPERIENCE IN THE AREA OF FINANCE.
2. ONE PRIVATE CITIZEN WHO REPRESENTS AN ORGANIZATION OF TAXPAYERS.
3. ONE MEMBER WITH KNOWLEDGE AND EXPERIENCE IN SCHOOL CONSTRUCTION.
4. ONE MEMBER WHO IS A REGISTERED PROFESSIONAL ARCHITECT AND WHO HAS
CURRENT KNOWLEDGE AND EXPERIENCE IN SCHOOL ARCHITECTURE.
5. ONE MEMBER WITH KNOWLEDGE AND EXPERIENCE IN SCHOOL FACILITIES
MANAGEMENT IN A PUBLIC SCHOOL SYSTEM.
6. ONE MEMBER WITH KNOWLEDGE AND EXPERIENCE IN DEMOGRAPHICS.
7. ONE MEMBER WHO IS A TEACHER AND WHO CURRENTLY PROVIDES CLASSROOM
INSTRUCTION.
8. ONE MEMBER WHO IS A REGISTERED PROFESSIONAL ENGINEER AND WHO HAS
CURRENT KNOWLEDGE AND EXPERIENCE IN SCHOOL ENGINEERING.
9. ONE MEMBER WHO IS AN OWNER OR OFFICER OF A PRIVATE BUSINESS.
B. IN ADDITION TO THE MEMBERS APPOINTED PURSUANT TO SUBSECTION A OF
THIS SECTION, THE SUPERINTENDENT OF PUBLIC INSTRUCTION OR THE
SUPERINTENDENT'S DESIGNEE SHALL SERVE AS AN ADVISORY NONVOTING MEMBER OF THE
SCHOOL FACILITIES BOARD.
C. THE GOVERNOR SHALL APPOINT A CHAIRPERSON PURSUANT TO SECTION 38-211
FROM MEMBERS APPOINTED PURSUANT TO SUBSECTION A OF THIS SECTION.
D. MEMBERS OF THE SCHOOL FACILITIES BOARD SERVE FOUR YEAR TERMS. THE
SCHOOL FACILITIES BOARD SHALL MEET AS OFTEN AS THE MEMBERS DEEM NECESSARY.
A MAJORITY OF THE MEMBERS CONSTITUTES A QUORUM FOR THE TRANSACTION OF
BUSINESS.
E. THE UNEXCUSED ABSENCE OF A MEMBER FOR MORE THAN THREE CONSECUTIVE
MEETINGS IS JUSTIFICATION FOR REMOVAL BY A MAJORITY VOTE OF THE BOARD. IF
THE MEMBER IS REMOVED, NOTICE SHALL BE GIVEN OF THE REMOVAL PURSUANT TO
SECTION 38-292.
F. THE GOVERNOR SHALL FILL A VACANCY BY APPOINTMENT OF A QUALIFIED
PERSON AS PROVIDED IN SUBSECTION A OF THIS SECTION.
G. MEMBERS OF THE BOARD WHO ARE EMPLOYED BY GOVERNMENT ENTITIES ARE
NOT ELIGIBLE TO RECEIVE COMPENSATION. MEMBERS OF THE BOARD WHO ARE NOT
EMPLOYED BY GOVERNMENT ENTITIES ARE ENTITLED TO PAYMENT OF ONE HUNDRED FIFTY
DOLLARS FOR EACH MEETING ATTENDED, PRORATED FOR PARTIAL DAYS SPENT FOR EACH
MEETING, UP TO TWO THOUSAND FIVE HUNDRED DOLLARS EACH YEAR. ALL MEMBERS ARE
ELIGIBLE FOR REIMBURSEMENT OF EXPENSES PURSUANT TO TITLE 38, CHAPTER 4,
ARTICLE 2. THESE EXPENSES AND THE PAYMENT OF COMPENSATION ARE PAYABLE TO A
MEMBER FROM MONIES APPROPRIATED TO THE BOARD FROM THE NEW SCHOOL FACILITIES
FUND.
H. MEMBERS OF THE SCHOOL FACILITIES BOARD ARE SUBJECT TO TITLE 38,
CHAPTER 3, ARTICLE 8. A MEMBER OR EMPLOYEE OF THE SCHOOL FACILITIES BOARD
SHALL NOT HAVE A DIRECT OR INDIRECT FINANCIAL INTEREST IN ANY PROPERTY
PURCHASED, FACILITY CONSTRUCTED OR CONTRACT FINANCED WITH MONIES MADE
AVAILABLE BY THE BOARD OR ANY OTHER PUBLIC MONIES. A VIOLATION OF THIS
SUBSECTION IS A CLASS 1 MISDEMEANOR.
1. MAKE ASSESSMENTS OF SCHOOL FACILITIES AND EQUIPMENT DEFICIENCIES
PURSUANT TO SECTION 15-2021 AND APPROVE THE DISTRIBUTION OF GRANTS AS
APPROPRIATE.
2. DEVELOP A DATA BASE FOR ADMINISTERING THE BUILDING RENEWAL FORMULA
PRESCRIBED IN SECTION 15-2031 AND ADMINISTER THE DISTRIBUTION OF MONIES TO
SCHOOL DISTRICTS FOR BUILDING RENEWAL.
3. INSPECT SCHOOL BUILDINGS AT LEAST ONCE EVERY FIVE YEARS TO ENSURE
COMPLIANCE WITH THE BUILDING ADEQUACY STANDARDS PRESCRIBED IN SECTION 15-2011
WITH RESPECT TO CONSTRUCTION OF NEW BUILDINGS AND MAINTENANCE OF EXISTING
BUILDINGS.
4. REVIEW AND APPROVE STUDENT POPULATION PROJECTIONS SUBMITTED BY
SCHOOL DISTRICTS TO DETERMINE TO WHAT EXTENT SCHOOL DISTRICTS ARE ENTITLED
TO MONIES TO CONSTRUCT NEW FACILITIES PURSUANT TO SECTION 15-2041. THE BOARD
SHALL MAKE A DETERMINATION AS TO ADMINISTRATIVE COMPLETION WITHIN ONE MONTH
OF THE RECEIPT OF AN APPLICATION BY A SCHOOL DISTRICT FOR MONIES FROM THE NEW
SCHOOL FACILITIES FUND. THE BOARD SHALL MAKE A FINAL DETERMINATION WITHIN
SIX MONTHS OF THE RECEIPT OF AN APPLICATION BY A SCHOOL DISTRICT FOR MONIES
FROM THE NEW SCHOOL FACILITIES FUND.
5. CERTIFY THAT PLANS FOR NEW SCHOOL FACILITIES MEET THE BUILDING
ADEQUACY STANDARDS PRESCRIBED IN SECTION 15-2011.
6. PROVIDE TECHNICAL SUPPORT TO SCHOOL DISTRICTS AS REQUESTED BY
SCHOOL DISTRICTS IN CONNECTION WITH THE CONSTRUCTION OF NEW SCHOOL FACILITIES
AND THE MAINTENANCE OF EXISTING SCHOOL FACILITIES.
7. DEVELOP PROTOTYPICAL ELEMENTARY AND HIGH SCHOOL DESIGNS. THE BOARD
SHALL REVIEW THE DESIGN DIFFERENCES BETWEEN THE SCHOOLS WITH THE HIGHEST
ACADEMIC PRODUCTIVITY SCORES AND THE SCHOOLS WITH THE LOWEST ACADEMIC
PRODUCTIVITY SCORES. THE BOARD SHALL ALSO REVIEW THE RESULTS OF A VALID AND
RELIABLE SURVEY OF PARENT QUALITY RATING IN THE HIGHEST PERFORMING SCHOOLS
AND THE LOWEST PERFORMING SCHOOLS IN THIS STATE. THE SURVEY OF PARENT
QUALITY RATING SHALL BE ADMINISTERED BY THE DEPARTMENT OF EDUCATION. THE
BOARD SHALL CONSIDER THE DESIGN ELEMENTS OF THE SCHOOLS WITH THE HIGHEST
ACADEMIC PRODUCTIVITY SCORES AND PARENT QUALITY RATINGS IN THE DEVELOPMENT
OF ELEMENTARY AND HIGH SCHOOL DESIGNS. THE BOARD SHALL DEVELOP SEPARATE
SCHOOL DESIGNS FOR ELEMENTARY, MIDDLE AND HIGH SCHOOLS WITH VARYING PUPIL
CAPACITIES.
8. DEVELOP APPLICATION FORMS, REPORTING FORMS AND PROCEDURES TO CARRY
OUT THE REQUIREMENTS OF THIS ARTICLE.
9. REVIEW AND APPROVE OR REJECT REQUESTS SUBMITTED BY SCHOOL DISTRICTS
TO TAKE ACTIONS PURSUANT TO SECTION 15-341, SUBSECTION E.
10. SUBMIT AN ANNUAL REPORT BY DECEMBER 15 TO THE SPEAKER OF THE HOUSE
OF REPRESENTATIVES, THE PRESIDENT OF THE SENATE, THE SUPERINTENDENT OF PUBLIC
INSTRUCTION, THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS AND THE
GOVERNOR THAT INCLUDES THE FOLLOWING INFORMATION:
(a)
(b)
(c)
(d)
(e)
11. BY DECEMBER 1 OF EACH FISCAL YEAR, REPORT TO THE JOINT COMMITTEE ON CAPITAL REVIEW THE ESTIMATED AMOUNTS NECESSARY TO FULFILL THE REQUIREMENTS
OF SECTIONS 15-2021, 15-2031 AND 15-2041 FOR THE FOLLOWING FISCAL YEAR. NO
LATER THAN JANUARY 1 OF EACH YEAR, THE BOARD SHALL INSTRUCT THE STATE
TREASURER AS TO THE AMOUNTS UNDER THE TRANSACTION PRIVILEGE TAX TO BE
CREDITED IN EQUAL QUARTERLY INSTALLMENTS FOR THE FOLLOWING STATE FISCAL YEAR.
THE BOARD SHALL PROVIDE COPIES OF BOTH REPORTS TO THE PRESIDENT OF THE
SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE GOVERNOR.
12. ADOPT MINIMUM SCHOOL FACILITY ADEQUACY GUIDELINES TO PROVIDE THE
MINIMUM QUALITY AND QUANTITY SCHOOL BUILDINGS AND THE FACILITIES AND
EQUIPMENT NECESSARY AND APPROPRIATE TO ENABLE PUPILS TO ACHIEVE THE
EDUCATIONAL GOALS OF THE ARIZONA STATE SCHOOLS FOR THE DEAF AND THE BLIND.
THE SCHOOL FACILITIES BOARD SHALL ESTABLISH MINIMUM SCHOOL FACILITY ADEQUACY
GUIDELINES APPLICABLE TO THE ARIZONA STATE SCHOOLS FOR THE DEAF AND THE BLIND
BY JANUARY 31, 2000.
B. THE SCHOOL FACILITIES BOARD MAY CONTRACT FOR PRIVATE SERVICES IN COMPLIANCE WITH THE PROCUREMENT PRACTICES PRESCRIBED IN TITLE 41, CHAPTER
23.
C. THE GOVERNOR SHALL APPOINT AN EXECUTIVE DIRECTOR OF THE SCHOOL
FACILITIES BOARD PURSUANT TO SECTION 38-211. THE EXECUTIVE DIRECTOR IS
ELIGIBLE TO RECEIVE COMPENSATION AS DETERMINED PURSUANT TO SECTION 38-611 AND
MAY HIRE AND FIRE NECESSARY STAFF AS APPROVED BY THE LEGISLATURE IN THE
BUDGET. THE EXECUTIVE DIRECTOR SHALL HAVE DEMONSTRATED COMPETENCY IN SCHOOL
FINANCE, FACILITIES DESIGN OR FACILITIES MANAGEMENT, EITHER IN PRIVATE
BUSINESS OR GOVERNMENT SERVICE. THE EXECUTIVE DIRECTOR SERVES AT THE
PLEASURE OF THE GOVERNOR. THE STAFF OF THE SCHOOL FACILITIES BOARD IS EXEMPT
FROM TITLE 41, CHAPTER 4, ARTICLES 5 AND 6. THE EXECUTIVE DIRECTOR:
1. SHALL ANALYZE APPLICATIONS FOR MONIES SUBMITTED TO THE BOARD BY
SCHOOL DISTRICTS.
2. SHALL ASSIST THE BOARD IN DEVELOPING FORMS AND PROCEDURES FOR THE
DISTRIBUTION AND REVIEW OF APPLICATIONS AND THE DISTRIBUTION OF MONIES TO
SCHOOL DISTRICTS.
3. MAY REVIEW OR AUDIT, OR BOTH, THE EXPENDITURE OF MONIES BY A SCHOOL
DISTRICT FOR DEFICIENCIES CORRECTIONS, BUILDING RENEWAL AND NEW SCHOOL
FACILITIES.
4. SHALL ASSIST THE BOARD IN THE PREPARATION OF THE BOARD'S ANNUAL
REPORT.
5. SHALL RESEARCH AND PROVIDE REPORTS ON ISSUES OF GENERAL INTEREST
TO THE BOARD.
6. MAY AID SCHOOL DISTRICTS IN THE DEVELOPMENT OF REASONABLE AND
COST-EFFECTIVE SCHOOL DESIGNS IN ORDER TO AVOID STATEWIDE DUPLICATED EFFORTS
AND UNWARRANTED EXPENDITURES IN THE AREA OF SCHOOL DESIGN.
7. MAY ASSIST SCHOOL DISTRICTS IN FACILITATING THE DEVELOPMENT OF
MULTIJURISDICTIONAL FACILITIES.
8. SHALL ASSIST THE BOARD IN ANY OTHER APPROPRIATE MATTER OR METHOD
AS DIRECTED BY THE MEMBERS OF THE BOARD.
9. SHALL ESTABLISH PROCEDURES TO ENSURE COMPLIANCE WITH THE NOTICE AND
HEARING REQUIREMENTS PRESCRIBED IN SECTION 15-905.
10. MAY EXPEDITE ANY REQUEST FOR FUNDS IN WHICH THE LOCAL MATCH WAS NOT
OBTAINED FOR A PROJECT THAT RECEIVED PRELIMINARY APPROVAL BY THE STATE BOARD
FOR SCHOOL CAPITAL FACILITIES.
11. SHALL EXPEDITE ANY REQUEST FOR FUNDS IN WHICH THE SCHOOL DISTRICT
GOVERNING BOARD SUBMITS AN APPLICATION THAT SHOWS AN IMMEDIATE NEED FOR A NEW
SCHOOL FACILITY.
D. WHEN APPROPRIATE, THE SCHOOL FACILITIES BOARD SHALL REVIEW AND USE
THE STATEWIDE SCHOOL FACILITIES INVENTORY AND NEEDS ASSESSMENT CONDUCTED BY
THE JOINT COMMITTEE ON CAPITAL REVIEW AND ISSUED IN JULY, 1995.
E. THE SCHOOL FACILITIES BOARD SHALL CONTRACT WITH ONE OR MORE PRIVATE
BUILDING INSPECTORS TO COMPLETE AN INITIAL ASSESSMENT OF SCHOOL FACILITIES
AND EQUIPMENT DEFINED PURSUANT TO SECTION 15-2021 AND TO INSPECT EACH SCHOOL
BUILDING IN THIS STATE AT LEAST ONCE EVERY FIVE YEARS TO ENSURE COMPLIANCE
WITH SECTION 15-2011. A COPY OF THE INSPECTION REPORT, TOGETHER WITH ANY
RECOMMENDATIONS FOR BUILDING MAINTENANCE, SHALL BE PROVIDED TO THE SCHOOL
FACILITIES BOARD AND THE GOVERNING BOARD OF THE SCHOOL DISTRICT.
F. THE SCHOOL FACILITIES BOARD MAY CONSIDER APPROPRIATE COMBINATIONS
OF FACILITIES OR USES IN MAKING ASSESSMENTS OF AND CURING DEFICIENCIES
PURSUANT TO SUBSECTION A, PARAGRAPH 1 OF THIS SECTION AND IN CERTIFYING PLANS
FOR NEW SCHOOL FACILITIES PURSUANT TO SUBSECTION A, PARAGRAPH 5 OF THIS
SECTION.
G. THE BOARD SHALL NOT AWARD ANY MONIES TO FUND NEW FACILITIES THAT
ARE FINANCED BY CLASS A BONDS THAT ARE ISSUED BY THE SCHOOL DISTRICT.
B. THE SCHOOL FACILITIES BOARD SHALL ADMINISTER THE FUND. ON NOTICE
FROM THE SCHOOL FACILITIES BOARD, THE STATE TREASURER SHALL INVEST AND
REINVEST MONIES IN THE FUND AS PROVIDED BY SECTION 35-313, AND MONIES EARNED
ON INVESTMENTS SHALL BE CREDITED TO THE CAPITAL RESERVE FUND.
C. MONIES IN THE CAPITAL RESERVE FUND ARE SUBJECT TO LEGISLATIVE
APPROPRIATION ONLY TO THE DEFICIENCIES CORRECTION FUND ESTABLISHED BY SECTION
15-2021 OR THE NEW SCHOOL FACILITIES FUND ESTABLISHED BY SECTION 15-2041.
1. THE BUILDINGS CONTAIN SUFFICIENT AND APPROPRIATE SPACE AND
EQUIPMENT THAT COMPLY WITH THE MINIMUM SCHOOL FACILITY GUIDELINES ESTABLISHED
PURSUANT TO SUBSECTION E OF THIS SECTION. THE STATE SHALL NOT FUND FACILITIES
FOR ELECTIVE COURSES THAT REQUIRE THE SCHOOL DISTRICT FACILITIES TO EXCEED
MINIMUM SCHOOL FACILITY ADEQUACY REQUIREMENTS. THE SCHOOL FACILITIES BOARD
SHALL DETERMINE WHETHER A SCHOOL BUILDING MEETS THE REQUIREMENTS OF THIS
PARAGRAPH BY ANALYZING THE TOTAL SQUARE FOOTAGE THAT IS AVAILABLE FOR EACH
PUPIL IN CONJUNCTION WITH THE NEED FOR SPECIALIZED SPACES AND EQUIPMENT.
2. THE BUILDINGS ARE IN COMPLIANCE WITH FEDERAL, STATE AND LOCAL
BUILDING AND FIRE CODES AND LAWS THAT ARE APPLICABLE TO THE PARTICULAR
BUILDING. AN EXISTING SCHOOL BUILDING IS NOT REQUIRED TO COMPLY WITH CURRENT
REQUIREMENTS FOR NEW BUILDINGS UNLESS THIS COMPLIANCE IS SPECIFICALLY
MANDATED BY LAW OR BY THE BUILDING OR FIRE CODE OF THE JURISDICTION WHERE THE
BUILDING IS LOCATED.
3. THE BUILDING SYSTEMS, INCLUDING ROOFS, PLUMBING, TELEPHONE SYSTEMS,
ELECTRICAL SYSTEMS, HEATING SYSTEMS AND COOLING SYSTEMS, ARE IN WORKING ORDER
AND ARE CAPABLE OF BEING PROPERLY MAINTAINED.
4. THE BUILDINGS ARE STRUCTURALLY SOUND.
C. THE STANDARDS THAT SHALL BE USED BY THE SCHOOL FACILITIES BOARD TO
DETERMINE WHETHER A SCHOOL BUILDING MEETS THE MINIMUM ADEQUATE GROSS SQUARE
FOOTAGE REQUIREMENTS ARE AS FOLLOWS:
1. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO PUPILS IN
PROGRAMS FOR PRESCHOOL CHILDREN WITH DISABILITIES, KINDERGARTEN PROGRAMS AND
GRADES ONE THROUGH SIX, EIGHTY SQUARE FEET PER PUPIL IN PROGRAMS FOR PRESCHOOL CHILDREN WITH DISABILITIES, KINDERGARTEN PROGRAMS AND GRADES ONE
THROUGH SIX.
2. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO UP TO EIGHT
HUNDRED PUPILS IN GRADES SEVEN AND EIGHT, EIGHTY-FOUR SQUARE FEET PER PUPIL
IN GRADES SEVEN AND EIGHT.
3. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO MORE THAN EIGHT
HUNDRED PUPILS IN GRADES SEVEN AND EIGHT, EIGHTY SQUARE FEET PER PUPIL IN
GRADES SEVEN AND EIGHT OR SIXTY-SEVEN THOUSAND TWO HUNDRED SQUARE FEET,
WHICHEVER IS MORE.
4. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO UP TO FOUR
HUNDRED PUPILS IN GRADES NINE THROUGH TWELVE, ONE HUNDRED TWENTY-FIVE SQUARE
FEET PER PUPIL IN GRADES NINE THROUGH TWELVE.
5. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO MORE THAN FOUR
HUNDRED AND UP TO ONE THOUSAND PUPILS IN GRADES NINE THROUGH TWELVE, ONE
HUNDRED TWENTY SQUARE FEET PER PUPIL IN GRADES NINE THROUGH TWELVE OR FIFTY
THOUSAND SQUARE FEET, WHICHEVER IS MORE.
6. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO MORE THAN ONE
THOUSAND AND UP TO ONE THOUSAND EIGHT HUNDRED PUPILS IN GRADES NINE THROUGH
TWELVE, ONE HUNDRED TWELVE SQUARE FEET PER PUPIL IN GRADES NINE THROUGH
TWELVE OR ONE HUNDRED TWENTY THOUSAND SQUARE FEET, WHICHEVER IS MORE.
7. FOR A SCHOOL DISTRICT THAT PROVIDES INSTRUCTION TO MORE THAN ONE
THOUSAND EIGHT HUNDRED PUPILS IN GRADES NINE THROUGH TWELVE, NINETY-FOUR
SQUARE FEET PER PUPIL IN GRADES NINE THROUGH TWELVE OR TWO HUNDRED ONE
THOUSAND SIX HUNDRED SQUARE FEET, WHICHEVER IS MORE.
D. THE SCHOOL FACILITIES BOARD MAY MODIFY THE SQUARE FOOTAGE
REQUIREMENTS PRESCRIBED IN SUBSECTION B OF THIS SECTION OR MODIFY THE AMOUNT
OF MONIES AWARDED TO CURE THE SQUARE FOOTAGE DEFICIENCY PURSUANT TO THIS
SECTION FOR PARTICULAR SCHOOL DISTRICTS BASED ON EXTRAORDINARY CIRCUMSTANCES
FOR ANY OF THE FOLLOWING CONSIDERATIONS:
1. THE NUMBER OF PUPILS SERVED BY THE SCHOOL DISTRICT.
2. GEOGRAPHIC FACTORS.
3. GRADE CONFIGURATIONS OTHER THAN THOSE PRESCRIBED IN SUBSECTION B
OF THIS SECTION.
E. IN MEASURING THE SQUARE FOOTAGE PER PUPIL REQUIREMENTS OF
SUBSECTION B OF THIS SECTION, THE SCHOOL FACILITIES BOARD SHALL:
1. USE THE MOST RECENT ONE HUNDREDTH DAY AVERAGE DAILY MEMBERSHIP.
2. FOR EACH SCHOOL, USE THE LESSER OF EITHER:
(
( b )
3. CONSIDER THE TOTAL SPACE AVAILABLE IN ALL SCHOOLS IN USE IN THE
SCHOOL DISTRICT, EXCEPT THAT THE SCHOOL FACILITIES BOARD SHALL ALLOW AN
EXCLUSION OF THE SQUARE FOOTAGE FOR CERTAIN SCHOOLS AND THE PUPILS WITHIN THE SCHOOLS' BOUNDARIES IF THE SCHOOL DISTRICT DEMONSTRATES UNUSUAL OR EXCESSIVE
BUSING OF PUPILS OR UNUSUAL ATTENDANCE BOUNDARY CHANGES BETWEEN SCHOOLS TO
THE BOARD'S SATISFACTION.
5. INCLUDE ALL PORTABLE AND MODULAR BUILDINGS.
6. INCLUDE IN THE GROSS SQUARE FOOTAGE NEW CONSTRUCTION FUNDED WHOLLY
OR PARTIALLY BY THE SCHOOL FACILITIES BOARD BASED ON THE SQUARE FOOTAGE
FUNDED BY THE SCHOOL FACILITIES BOARD. IF THE NEW CONSTRUCTION IS TO EXCEED
THE SQUARE FOOTAGE FUNDED BY THE SCHOOL FACILITIES BOARD, THEN THE EXCESS
SQUARE FOOTAGE SHALL NOT BE INCLUDED IN THE GROSS SQUARE FOOTAGE.
1. SCHOOL SITES.
2. CLASSROOMS.
3. LIBRARIES AND MEDIA CENTERS, OR BOTH.
4. CAFETERIAS.
5. AUDITORIUMS, MULTIPURPOSE ROOMS OR OTHER MULTIUSE SPACE.
6. TECHNOLOGY.
7. TRANSPORTATION.
8. FACILITIES FOR SCIENCE, ARTS AND PHYSICAL EDUCATION.
9. OTHER FACILITIES AND EQUIPMENT THAT ARE NECESSARY AND APPROPRIATE
TO ACHIEVE THE ACADEMIC STANDARDS PRESCRIBED PURSUANT TO SECTION 15-203,
SUBSECTION A, PARAGRAPHS 12 AND 13 AND SECTIONS 15-701 AND 15-701.01.
10. APPROPRIATE COMBINATIONS OF FACILITIES OR USES LISTED IN THIS
SECTION.
G. THE BOARD SHALL CONSIDER THE FACILITIES AND EQUIPMENT OF THE
SCHOOLS WITH THE HIGHEST ACADEMIC PRODUCTIVITY SCORES, AS PRESCRIBED IN
SECTION 15-2002, SUBSECTION A, PARAGRAPH 10, SUBDIVISION
H. THE SCHOOL FACILITIES BOARD MAY CONSIDER APPROPRIATE COMBINATIONS
OF FACILITIES OR USES IN MAKING ASSESSMENTS OF AND CURING EXISTING
DEFICIENCIES PURSUANT TO SUBSECTION A, PARAGRAPH 1 OF THIS SECTION AND IN
CERTIFYING PLANS FOR NEW SCHOOL FACILITIES PURSUANT TO SUBSECTION A,
PARAGRAPH 5.
I. FOR PURPOSES OF THIS SECTION, "STUDENT CAPACITY" MEANS THE CAPACITY
ADJUSTED TO INCLUDE ANY ADDITIONS TO OR DELETIONS OF SPACE, INCLUDING MODULAR
OR PORTABLE BUILDINGS AT THE SCHOOL. THE SCHOOL FACILITIES BOARD SHALL
DETERMINE THE STUDENT CAPACITY FOR EACH SCHOOL IN CONJUNCTION WITH EACH
SCHOOL DISTRICT, RECOGNIZING EACH SCHOOL'S ALLOCATION OF SPACE AS OF JULY 1,
1998 TO ACHIEVE THE ACADEMIC STANDARDS PRESCRIBED PURSUANT TO SECTION 15-203,
SUBSECTION A, PARAGRAPHS 12 AND 13 AND SECTIONS 15-701 AND 15-701.01.
A. A DEFICIENCIES CORRECTION FUND IS ESTABLISHED CONSISTING OF MONIES APPROPRIATED BY THE LEGISLATURE AND MONIES CREDITED TO THE FUND PURSUANT TO
SECTION 42-1342 OR 42-5030.01. THE SCHOOL FACILITIES BOARD SHALL ADMINISTER
THE FUND AND DISTRIBUTE MONIES TO SCHOOL DISTRICTS FOR THE PURPOSE OF
CORRECTING EXISTING DEFICIENCIES. MONIES IN THE FUND ARE CONTINUOUSLY
APPROPRIATED AND ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING
TO LAPSING OF APPROPRIATIONS.
B. SCHOOL DISTRICTS ARE ELIGIBLE FOR MONIES FROM THE DEFICIENCIES
CORRECTION FUND FOR EITHER OF THE FOLLOWING PURPOSES:
1. TO CORRECT ANY SQUARE FOOTAGE DEFICIENCY PURSUANT TO SECTION
15-2011. SCHOOL DISTRICTS SHALL SUBMIT A SUMMARY NOTICE ON A FORM PRESCRIBED
BY THE SCHOOL FACILITIES BOARD THAT THE SCHOOL DISTRICT BELIEVES IT HAS A
SQUARE FOOTAGE DEFICIENCY PURSUANT TO SECTION 15-2011, SUBSECTION C TO THE
SCHOOL FACILITIES BOARD BY DECEMBER 1, 1998. IF THE SCHOOL DISTRICT EXCEEDS
THE STANDARD BY TEN PER CENT OR MORE, THE SCHOOL DISTRICT MAY BE REQUIRED TO
PAY FOR THE COST OF AN ON-SITE SPACE ASSESSMENT BY THE SCHOOL FACILITIES
BOARD. BY JUNE 30, 1999, THE SCHOOL FACILITIES BOARD SHALL ASSESS ALL
ALLEGED SQUARE FOOTAGE DEFICIENCIES FROM THE SCHOOL DISTRICT NOTICES.
2. TO CORRECT QUALITY DEFICIENCIES BASED ON THE DISTRICT'S INABILITY
TO COMPLY WITH THE MINIMUM SCHOOL FACILITY ADEQUACY REQUIREMENTS ESTABLISHED
IN AND PURSUANT TO SECTION 15-2011. THIS STATE SHALL NOT CORRECT QUALITY
DEFICIENCIES PURSUANT TO THIS PARAGRAPH FOR ELECTIVE COURSES THAT REQUIRE THE
SCHOOL DISTRICT FACILITIES TO EXCEED BUILDING ADEQUACY STANDARDS. SCHOOL
DISTRICTS SHALL SUBMIT A SUMMARY NOTICE ON A FORM PRESCRIBED BY THE SCHOOL
FACILITIES BOARD THAT THE SCHOOL DISTRICT HAS A QUALITY DEFICIENCY NEED TO
THE SCHOOL FACILITIES BOARD BY AUGUST 1, 1999.
D. THE SCHOOL FACILITIES BOARD MAY DISTRIBUTE MONIES FOR NEW
CONSTRUCTION TO A SCHOOL DISTRICT IF THE BOARD DETERMINES AFTER ITS
ASSESSMENT THAT THE NEW CONSTRUCTION IS MORE COST-EFFECTIVE THAN CORRECTING
THE DEFICIENCIES IN THE EXISTING SCHOOL BUILDING OR BUILDINGS.
E. THE SCHOOL FACILITIES BOARD SHALL DISTRIBUTE MONIES TO SCHOOL
DISTRICTS FROM THE DEFICIENCIES CORRECTION FUND IN AN AMOUNT APPROVED BY THE
BOARD. THE SCHOOL FACILITIES BOARD SHALL REVIEW AND AWARD MONIES TO CORRECT
DEFICIENCIES PURSUANT TO THIS SECTION BY JUNE 30, 2001 AND SHALL ENSURE THAT
SCHOOL DISTRICTS CORRECT DEFICIENCIES PURSUANT TO THIS SECTION BY JUNE 30,
2003.
F. SCHOOL DISTRICTS THAT RECEIVE MONIES FROM THE DEFICIENCIES
CORRECTION FUND SHALL ESTABLISH A SCHOOL DISTRICT DEFICIENCIES CORRECTION
FUND AND SHALL USE THE MONIES IN THE SCHOOL DISTRICT DEFICIENCIES CORRECTION
FUND ONLY FOR THE PURPOSES PRESCRIBED IN THIS SECTION. ENDING CASH BALANCES
IN A SCHOOL DISTRICT'S DEFICIENCIES CORRECTION FUND MAY BE USED IN FOLLOWING
FISCAL YEARS ONLY FOR THE PURPOSES PRESCRIBED IN THIS SECTION. EACH SCHOOL
DISTRICT THAT RECEIVES MONIES FROM THE DEFICIENCIES CORRECTION FUND SHALL
ANNUALLY REPORT THE EXPENDITURES IN THE PREVIOUS FISCAL YEAR TO THE SCHOOL
FACILITIES BOARD BY OCTOBER 15 AND PROVIDE AN ACCOUNTING OF THE MONIES
REMAINING IN THE DEFICIENCIES CORRECTION FUND AT THE END OF THE PREVIOUS
FISCAL YEAR. THE SCHOOL FACILITIES BOARD SHALL SUBMIT A REPORT TO THE
LEGISLATURE AND THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS BY
DECEMBER 15, 1999 THAT INCLUDES A DETAILED COST ESTIMATE OF THE MONIES THAT
WILL NEED TO BE APPROPRIATED TO CORRECT THE EXISTING DEFICIENCIES OF ALL
SCHOOLS IN THIS STATE BY JUNE 30, 2003. THIS STATE SHALL ANNUALLY APPROPRIATE
MONIES TO THE DEFICIENCIES CORRECTION FUND ESTABLISHED IN THIS SECTION IN
ORDER TO CORRECT EXISTING DEFICIENCIES OF ALL SCHOOLS IN THIS STATE BY JUNE
30, 2003.
B. THE SCHOOL FACILITIES BOARD SHALL INVENTORY AND INSPECT ALL SCHOOL
BUILDINGS IN THIS STATE IN ORDER TO DEVELOP A DATA BASE TO ADMINISTER THE
BUILDING RENEWAL FORMULA. THE DATA BASE SHALL INCLUDE THE STUDENT CAPACITY
OF THE BUILDING AS DETERMINED BY THE SCHOOL FACILITIES BOARD. THE BOARD SHALL DISTRIBUTE MONIES FROM THE BUILDING RENEWAL FUND TO SCHOOL DISTRICTS
IN AN AMOUNT COMPUTED PURSUANT TO SUBSECTION G OF THIS SECTION. A SCHOOL
DISTRICT THAT RECEIVES MONIES FROM THE BUILDING RENEWAL FUND SHALL USE THE
MONIES PRIMARILY FOR ANY BUILDINGS IN THE DATA BASE DEVELOPED OR CREATED
UNDER SUBSECTION D OF THIS SECTION AND SECONDLY FOR ANY OTHER BUILDINGS OWNED
BY THE SCHOOL DISTRICT FOR ANY OF THE FOLLOWING:
1. MAJOR RENOVATIONS AND REPAIRS OF A BUILDING.
2. UPGRADING SYSTEMS AND AREAS THAT WILL MAINTAIN OR EXTEND THE USEFUL
LIFE OF THE BUILDING.
3. INFRASTRUCTURE COSTS.
C. MONIES RECEIVED FROM THE BUILDING RENEWAL FUND SHALL NOT BE USED
FOR ANY OF THE FOLLOWING PURPOSES:
1. NEW CONSTRUCTION.
2. REMODELING INTERIOR SPACE FOR AESTHETIC OR PREFERENTIAL REASONS.
3. EXTERIOR BEAUTIFICATION.
4. DEMOLITION.
5. THE PURCHASE OF SOFT CAPITAL ITEMS PURSUANT TO SECTION 15-962,
SUBSECTION F.
6. ROUTINE MAINTENANCE.
D. THE SCHOOL FACILITIES BOARD SHALL MAINTAIN THE BUILDING RENEWAL
DATA BASE AND USE THE DATA BASE FOR THE COMPUTATION OF THE BUILDING RENEWAL
FORMULA DISTRIBUTIONS. THE BOARD SHALL ENSURE THAT THE DATA BASE IS UPDATED
ON AT LEAST AN ANNUAL BASIS TO REFLECT CHANGES IN THE AGES AND VALUE OF
SCHOOL BUILDINGS. THE FACILITIES LISTED IN THE DATA BASE SHALL INCLUDE ONLY
THOSE BUILDINGS THAT ARE OWNED BY SCHOOL DISTRICTS THAT ARE REQUIRED TO MEET
ACADEMIC STANDARDS. EACH SCHOOL DISTRICT SHALL REPORT TO THE SCHOOL
FACILITIES BOARD NO LATER THAN SEPTEMBER 1 OF EACH YEAR THE NUMBER AND TYPE
OF SCHOOL BUILDINGS OWNED BY THE DISTRICT, THE SQUARE FOOTAGE OF EACH
BUILDING, THE AGE OF EACH BUILDING, THE NATURE OF ANY RENOVATIONS COMPLETED
AND THE COST OF ANY RENOVATIONS COMPLETED. THE SCHOOL FACILITIES BOARD MAY
REVIEW OR AUDIT, OR BOTH, TO CONFIRM THE INFORMATION SUBMITTED BY A SCHOOL
DISTRICT. THE BOARD SHALL ADJUST THE AGE OF EACH SCHOOL FACILITY IN THE DATA
BASE WHENEVER A BUILDING IS SIGNIFICANTLY UPGRADED OR REMODELED. THE AGE OF
A BUILDING THAT HAS BEEN SIGNIFICANTLY UPGRADED OR REMODELED SHALL BE
RECOMPUTED AS FOLLOWS:
1. DIVIDE THE COST OF THE RENOVATION BY THE BUILDING CAPACITY VALUE
OF THE BUILDING DETERMINED IN SUBSECTION G, PARAGRAPH 3 OF THIS SECTION.
2. MULTIPLY THE QUOTIENT DETERMINED IN PARAGRAPH 1 OF THIS SUBSECTION
BY THE CURRENTLY LISTED AGE OF THE BUILDING IN THE DATA BASE.
3. SUBTRACT THE PRODUCT DETERMINED IN PARAGRAPH 2 OF THIS SUBSECTION
FROM THE CURRENTLY LISTED AGE OF THE BUILDING IN THE DATA BASE, ROUNDED TO
THE NEAREST WHOLE NUMBER.
E. THE SCHOOL FACILITIES BOARD SHALL SUBMIT AN ANNUAL REPORT TO THE
PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS AND THE GOVERNOR BY
OCTOBER 1 THAT INCLUDES THE COMPUTATION OF THE AMOUNT OF MONIES TO BE
DISTRIBUTED FROM THE BUILDING RENEWAL FUND FOR THE CURRENT FISCAL YEAR. THE
JOINT COMMITTEE ON CAPITAL REVIEW SHALL REVIEW THE SCHOOL FACILITIES BOARD'S
CALCULATION OF THE BUILDING RENEWAL FUND DISTRIBUTIONS. AFTER THE JOINT
COMMITTEE ON CAPITAL REVIEW REVIEWS THE DISTRIBUTIONS COMPUTED BY THE SCHOOL
FACILITIES BOARD, THE SCHOOL FACILITIES BOARD SHALL DISTRIBUTE THE MONIES
APPROPRIATED BY THE LEGISLATURE FROM THE BUILDING RENEWAL FUND TO SCHOOL
DISTRICTS IN TWO EQUAL INSTALLMENTS IN NOVEMBER AND MAY OF EACH YEAR.
F. SCHOOL DISTRICTS THAT RECEIVE MONIES FROM THE BUILDING RENEWAL FUND
SHALL ESTABLISH A DISTRICT BUILDING RENEWAL FUND AND SHALL USE THE MONIES IN
THE DISTRICT BUILDING RENEWAL FUND ONLY FOR THE PURPOSES PRESCRIBED IN
SUBSECTION B OF THIS SECTION. ENDING CASH BALANCES IN A SCHOOL DISTRICT'S
BUILDING RENEWAL FUND MAY BE USED IN FOLLOWING FISCAL YEARS FOR BUILDING
RENEWAL PURSUANT TO SUBSECTION B OF THIS SECTION. BY OCTOBER 15 OF EACH
YEAR, EACH SCHOOL DISTRICT SHALL REPORT TO THE SCHOOL FACILITIES BOARD THE
PROJECTS FUNDED AT EACH SCHOOL IN THE PREVIOUS FISCAL YEAR WITH MONIES FROM
THE BUILDING RENEWAL FUND AND SHALL PROVIDE AN ACCOUNTING OF THE MONIES
REMAINING IN THE BUILDING RENEWAL FUND AT THE END OF THE PREVIOUS FISCAL
YEAR.
G. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, IF A SCHOOL
DISTRICT CONVERTS SPACE THAT IS LISTED IN THE DATA BASE MAINTAINED PURSUANT
TO THIS SECTION TO SPACE THAT WILL BE USED FOR ADMINISTRATIVE PURPOSES, THE
SCHOOL DISTRICT IS RESPONSIBLE FOR ANY COSTS ASSOCIATED WITH THE CONVERSION,
MAINTENANCE AND REPLACEMENT OF THAT SPACE. THE BUILDING RENEWAL AMOUNT FOR
EACH SCHOOL BUILDING SHALL BE COMPUTED AS FOLLOWS:
1. DIVIDE THE AGE OF THE BUILDING AS COMPUTED PURSUANT TO SUBSECTION
D OF THIS SECTION BY ONE THOUSAND TWO HUNDRED SEVENTY-FIVE OR, IN THE CASE
OF MODULAR OR PORTABLE BUILDINGS, BY TWO HUNDRED TEN.
2. MULTIPLY THE QUOTIENT DETERMINED IN PARAGRAPH 1 OF THIS SUBSECTION
BY 0.67.
3. DETERMINE THE BUILDING CAPACITY VALUE AS FOLLOWS:
(a)
(b)
4. MULTIPLY THE PRODUCT DETERMINED IN PARAGRAPH 2 OF THIS SUBSECTION
BY THE PRODUCT DETERMINED IN PARAGRAPH 3, SUBDIVISION
H. IF THE SCHOOL FACILITIES BOARD DETERMINES THAT A SCHOOL DISTRICT
HAS SPENT MONIES FROM THE BUILDING RENEWAL FUND FOR PURPOSES OTHER THAN THOSE
PRESCRIBED IN SUBSECTION B OF THIS SECTION, THE SCHOOL FACILITIES BOARD SHALL
NOTIFY THE SUPERINTENDENT OF PUBLIC INSTRUCTION. NOTWITHSTANDING ANY OTHER
LAW, THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL WITHHOLD A CORRESPONDING AMOUNT FROM THE MONIES THAT WOULD OTHERWISE BE DUE THE SCHOOL DISTRICT UNDER
THE CAPITAL OUTLAY REVENUE LIMIT UNTIL THESE MONIES ARE REPAID.
I. FOR PURPOSES OF THIS SECTION, "STUDENT CAPACITY" HAS THE SAME
MEANING PRESCRIBED IN SECTION 15-2011, SUBSECTION I.
B. THE SCHOOL FACILITIES BOARD SHALL PRESCRIBE A UNIFORM FORMAT FOR
USE BY THE SCHOOL DISTRICT GOVERNING BOARD IN DEVELOPING AND ANNUALLY
UPDATING A CAPITAL PLAN THAT CONSISTS OF EACH OF THE FOLLOWING:
1. ENROLLMENT PROJECTIONS FOR THE NEXT FIVE YEARS FOR ELEMENTARY
SCHOOLS AND EIGHT YEARS FOR MIDDLE AND HIGH SCHOOLS, INCLUDING A DESCRIPTION
OF THE METHODS USED TO MAKE THE PROJECTIONS.
2. A DESCRIPTION OF NEW SCHOOLS OR ADDITIONS TO EXISTING SCHOOLS
NEEDED TO MEET THE BUILDING ADEQUACY STANDARDS PRESCRIBED IN SECTION 15-2011.
THE DESCRIPTION SHALL INCLUDE:
(a)
(b)
(c)
3. LONG-TERM PROJECTIONS OF THE NEED FOR LAND FOR NEW SCHOOLS.
4. ANY OTHER NECESSARY INFORMATION REQUIRED BY THE SCHOOL FACILITIES
BOARD TO EVALUATE A SCHOOL DISTRICT'S CAPITAL PLAN.
C. IF THE CAPITAL PLAN INDICATES A NEED FOR A NEW SCHOOL OR AN
ADDITION TO AN EXISTING SCHOOL WITHIN THE NEXT FOUR YEARS OR A NEED FOR LAND
WITHIN THE NEXT TEN YEARS, THE SCHOOL DISTRICT SHALL SUBMIT ITS PLAN TO THE
SCHOOL FACILITIES BOARD AND SHALL REQUEST MONIES FROM THE NEW SCHOOL
FACILITIES FUND FOR THE NEW CONSTRUCTION OR LAND. MONIES PROVIDED FOR LAND
SHALL BE IN ADDITION TO ANY MONIES PROVIDED PURSUANT TO SUBSECTION D OF THIS
SECTION.
D. THE SCHOOL FACILITIES BOARD SHALL DISTRIBUTE MONIES FROM THE NEW
SCHOOL FACILITIES FUND AS FOLLOWS:
1. THE SCHOOL FACILITIES BOARD SHALL REVIEW AND EVALUATE THE
ENROLLMENT PROJECTIONS AND EITHER APPROVE THE PROJECTIONS AS SUBMITTED OR REVISE THE PROJECTIONS. IN DETERMINING NEW CONSTRUCTION REQUIREMENTS, THE
SCHOOL FACILITIES BOARD SHALL DETERMINE THE NET NEW GROWTH OF PUPILS THAT
WILL REQUIRE ADDITIONAL SQUARE FOOTAGE THAT EXCEEDS THE BUILDING ADEQUACY
STANDARDS PRESCRIBED IN SECTION 15-2011.
2. IF THE APPROVED PROJECTIONS INDICATE THAT ADDITIONAL SPACE WILL NOT
BE NEEDED WITHIN THE NEXT TWO YEARS FOR ELEMENTARY SCHOOLS OR THREE YEARS FOR
MIDDLE OR HIGH SCHOOLS IN ORDER TO MEET THE BUILDING ADEQUACY STANDARDS
PRESCRIBED IN SECTION 15-2011, THE REQUEST SHALL BE HELD FOR CONSIDERATION
BY THE SCHOOL FACILITIES BOARD FOR POSSIBLE FUTURE FUNDING AND THE SCHOOL
DISTRICT SHALL ANNUALLY SUBMIT AN UPDATED PLAN UNTIL THE ADDITIONAL SPACE IS
NEEDED.
3. IF THE APPROVED PROJECTIONS INDICATE THAT ADDITIONAL SPACE WILL BE
NEEDED WITHIN THE NEXT TWO YEARS FOR ELEMENTARY SCHOOLS OR THREE YEARS FOR
MIDDLE OR HIGH SCHOOLS IN ORDER TO MEET THE BUILDING ADEQUACY STANDARDS
PRESCRIBED IN SECTION 15-2011, THE SCHOOL FACILITIES BOARD SHALL PROVIDE AN
AMOUNT AS FOLLOWS:
(a)
(b)
(i)
(ii)
(iii)
(iv)
(c)
(d)
E. MONIES FOR ARCHITECTURAL AND ENGINEERING FEES SHALL BE DISTRIBUTED
ON THE COMPLETION OF THE ANALYSIS BY THE SCHOOL FACILITIES BOARD OF THE
SCHOOL DISTRICT'S REQUEST. AFTER RECEIVING MONIES PURSUANT TO THIS
SUBSECTION, THE SCHOOL DISTRICT SHALL SUBMIT A DESIGN DEVELOPMENT PLAN FOR
THE SCHOOL OR ADDITION TO THE SCHOOL FACILITIES BOARD BEFORE ANY MONIES FOR
CONSTRUCTION ARE DISTRIBUTED. IF THE SCHOOL DISTRICT'S REQUEST MEETS THE
BUILDING ADEQUACY STANDARDS, THE SCHOOL FACILITIES BOARD MAY REVIEW AND
COMMENT ON THE DISTRICT'S PLAN WITH RESPECT TO THE EFFICIENCY AND
EFFECTIVENESS OF THE PLAN IN MEETING STATE SQUARE FOOTAGE AND FACILITY
STANDARDS BEFORE DISTRIBUTING THE REMAINDER OF THE MONIES. THE SCHOOL
FACILITIES BOARD MAY DECLINE TO FUND THE PROJECT IF THE SQUARE FOOTAGE IS NO
LONGER REQUIRED DUE TO REVISED ENROLLMENT PROJECTIONS.
F. THE SCHOOL FACILITIES BOARD SHALL DISTRIBUTE THE MONIES NEEDED FOR
LAND FOR NEW SCHOOLS SO THAT LAND MAY BE PURCHASED AT A PRICE THAT IS LESS
THAN OR EQUAL TO FAIR MARKET VALUE AND IN ADVANCE OF THE CONSTRUCTION OF THE
NEW SCHOOL. THE PROCEEDS DERIVED THROUGH THE SALE OF ANY LAND PURCHASED OR
PARTIALLY PURCHASED WITH MONIES PROVIDED BY THE SCHOOL FACILITIES BOARD SHALL
BE RETURNED TO THE STATE FUND FROM WHICH IT WAS APPROPRIATED AND TO ANY OTHER PARTICIPATING ENTITY ON A PROPORTIONAL BASIS. IF A SCHOOL DISTRICT ACQUIRES
REAL PROPERTY BY DONATION AT AN APPROPRIATE SCHOOL SITE APPROVED BY THE
SCHOOL FACILITIES BOARD, THE SCHOOL FACILITIES BOARD SHALL DISTRIBUTE AN
AMOUNT EQUAL TO TWENTY PER CENT OF THE FAIR MARKET VALUE OF THE DONATED REAL
PROPERTY THAT CAN BE USED FOR ACADEMIC PURPOSES. THE SCHOOL DISTRICT SHALL
PLACE THE MONIES IN THE UNRESTRICTED CAPITAL OUTLAY FUND AND INCREASE THE
UNRESTRICTED CAPITAL OUTLAY LIMIT BY THE AMOUNT OF MONIES PLACED IN THE FUND.
MONIES DISTRIBUTED UNDER THIS SUBSECTION SHALL BE DISTRIBUTED FROM THE NEW
SCHOOL FACILITIES FUND. CONSTRUCTION MONIES MAY BE DISTRIBUTED AS NEEDED BY
THE SCHOOL FACILITIES BOARD UP TO THREE YEARS IN ADVANCE FOR MIDDLE SCHOOLS
AND HIGH SCHOOLS AND UP TO TWO YEARS IN ADVANCE FOR ELEMENTARY SCHOOLS.
G. IN ADDITION TO DISTRIBUTIONS TO SCHOOL DISTRICTS BASED ON PUPIL
GROWTH PROJECTIONS, A SCHOOL DISTRICT MAY SUBMIT AN APPLICATION TO THE SCHOOL
FACILITIES BOARD FOR MONIES FROM THE NEW SCHOOL FACILITIES FUND IF ONE OR
MORE SCHOOL BUILDINGS HAVE OUTLIVED THEIR USEFUL LIFE. IF THE SCHOOL
FACILITIES BOARD DETERMINES THAT THE SCHOOL DISTRICT NEEDS TO BUILD A NEW
SCHOOL BUILDING FOR THESE REASONS, THE SCHOOL FACILITIES BOARD SHALL REMOVE
THE SQUARE FOOTAGE COMPUTATIONS THAT REPRESENT THE BUILDING FROM THE
COMPUTATION OF THE SCHOOL DISTRICT'S TOTAL SQUARE FOOTAGE FOR PURPOSES OF
THIS SECTION. IF THE SQUARE FOOTAGE RECOMPUTATION REFLECTS THAT THE SCHOOL
DISTRICT NO LONGER MEETS BUILDING ADEQUACY STANDARDS, THE SCHOOL DISTRICT
QUALIFIES FOR A DISTRIBUTION OF MONIES FROM THE NEW SCHOOL CONSTRUCTION
FORMULA IN AN AMOUNT DETERMINED PURSUANT TO SUBSECTION D OF THIS SECTION.
BUILDINGS REMOVED FROM A SCHOOL DISTRICT'S TOTAL SQUARE FOOTAGE PURSUANT TO
THIS SUBSECTION SHALL NOT BE INCLUDED IN THE COMPUTATION OF MONIES FROM THE
BUILDING RENEWAL FUND ESTABLISHED BY SECTION 15-2031. THE SCHOOL FACILITIES
BOARD MAY MODIFY THE BASE COST PER SQUARE FOOT PRESCRIBED IN THIS SUBSECTION
UNDER EXTRAORDINARY CIRCUMSTANCES FOR GEOGRAPHIC FACTORS OR SITE CONDITIONS.
H. SCHOOL DISTRICTS THAT RECEIVE MONIES FROM THE NEW SCHOOL FACILITIES
FUND SHALL ESTABLISH A DISTRICT NEW SCHOOL FACILITIES FUND AND SHALL USE THE
MONIES IN THE DISTRICT NEW SCHOOL FACILITIES FUND ONLY FOR THE PURPOSES
PRESCRIBED IN THIS SECTION. BY OCTOBER 15 OF EACH YEAR, EACH SCHOOL DISTRICT
SHALL REPORT TO THE SCHOOL FACILITIES BOARD THE PROJECTS FUNDED AT EACH
SCHOOL IN THE PREVIOUS FISCAL YEAR WITH MONIES FROM THE NEW SCHOOL FACILITIES
FUND AND SHALL PROVIDE AN ACCOUNTING OF THE MONIES REMAINING IN THE NEW
SCHOOL FACILITIES FUND AT THE END OF THE PREVIOUS FISCAL YEAR.
I. IF A SCHOOL DISTRICT HAS SURPLUS MONIES RECEIVED FROM THE NEW
SCHOOLS FACILITIES FUND, THE SCHOOL DISTRICT MAY USE THE SURPLUS MONIES FOR
ANY OTHER CAPITAL PURPOSE.
1. PROVIDE MONIES TO PAY THE COST OF:
(
(
2. FULLY OR PARTIALLY FUND ANY RESERVES OR SINKING ACCOUNTS
ESTABLISHED BY THE BOND RESOLUTION.
B. THE SCHOOL FACILITIES BOARD SHALL AUTHORIZE THE BONDS BY
RESOLUTION. THE RESOLUTION SHALL PRESCRIBE:
1. THE FIXED OR VARIABLE RATE OR RATES OF INTEREST, THE DATE OR DATES
ON WHICH INTEREST IS PAYABLE AND THE DENOMINATIONS OF THE BONDS.
2. THE DATE OR DATES OF THE BONDS AND MATURITY, WITHIN TEN YEARS AFTER
THE DATE OF ISSUANCE.
3. THE FORM OF THE BONDS.
4. THE MANNER OF EXECUTING THE BONDS.
5. THE MEDIUM AND PLACE OF PAYMENT.
6. THE TERMS OF REDEMPTION, WHICH MAY PROVIDE FOR A PREMIUM FOR EARLY
REDEMPTION.
C. THE BONDS ISSUED PURSUANT TO THIS ARTICLE SHALL BE KNOWN AS STATE
SCHOOL FACILITIES REVENUE BONDS.
B. THE SCHOOL FACILITIES BOARD SHALL PUBLISH A NOTICE OF ITS INTENTION
TO ISSUE BONDS UNDER THIS ARTICLE FOR AT LEAST FIVE CONSECUTIVE DAYS IN A
NEWSPAPER OF GENERAL CIRCULATION PUBLISHED IN THIS STATE. THE LAST DAY OF
PUBLICATION SHALL BE AT LEAST TEN DAYS BEFORE THE BONDS ARE ISSUED. THE
NOTICE SHALL STATE THE AMOUNT OF THE BONDS TO BE SOLD AND THE INTENDED DATE
OF ISSUANCE. A COPY OF THE NOTICE SHALL BE HAND DELIVERED OR SENT BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE DIRECTOR OF THE DEPARTMENT
OF ADMINISTRATION ON OR BEFORE THE LAST DAY OF PUBLICATION.
C. THE BONDS SHALL BE SOLD AT PUBLIC OR PRIVATE SALE AT THE PRICE AND
ON THE TERMS PRESCRIBED IN THE RESOLUTION AT, ABOVE OR BELOW PAR.
D. THE PROCEEDS OF THE SALE OF THE BONDS SHALL BE DEPOSITED IN THE
REVENUE BOND PROCEEDS FUND ESTABLISHED PURSUANT TO SECTION 15-2053.
B. THE SCHOOL FACILITIES BOARD MAY USE MONIES IN THE REVENUE BOND
PROCEEDS FUND ONLY FOR NEW SCHOOL FACILITIES IN THE MANNER PRESCRIBED BY
ARTICLE 5 OF THIS CHAPTER. MONIES IN THE REVENUE BOND PROCEEDS FUND ARE
EXEMPT FROM LAPSING UNDER SECTION 35-190.
C. THE STATE TREASURER OR BOND TRUSTEE SHALL ADMINISTER AND ACCOUNT
FOR THE REVENUE BOND PROCEEDS FUND.
B. MONIES IN THE REVENUE BOND DEBT SERVICE FUND MAY BE USED ONLY FOR
THE PURPOSES AUTHORIZED BY THIS ARTICLE.
C. THE STATE TREASURER OR BOND TRUSTEE SHALL ADMINISTER AND ACCOUNT
FOR THE REVENUE BOND DEBT SERVICE FUND.
1. SEGREGATE THE REVENUE BOND DEBT SERVICE FUND INTO ONE OR MORE
ACCOUNTS AND SUBACCOUNTS AND PROVIDE THAT BONDS ISSUED UNDER THIS ARTICLE MAY
BE SECURED BY A LIEN ON ALL OR PART OF THE MONIES PAID INTO THE REVENUE BOND
DEBT SERVICE FUND OR INTO ANY ACCOUNT OR SUBACCOUNT IN THE FUND.
2. PROVIDE THAT THE BONDS ISSUED UNDER THIS ARTICLE ARE SECURED BY A
FIRST LIEN ON THE MONIES PAID INTO THE REVENUE BOND DEBT SERVICE FUND AS PROVIDED BY SECTION 37-521, SUBSECTION B, PARAGRAPH 1 AND SECTION 42-5030.01,
SUBSECTION A, AND PLEDGE AND ASSIGN TO OR IN TRUST FOR THE BENEFIT OF THE
HOLDER OR HOLDERS OF THE BONDS ALL OR PART OF THE MONIES IN THE REVENUE BOND
DEBT SERVICE FUND OR AN ACCOUNT OR SUBACCOUNT AS IS NECESSARY TO SECURE AND
PAY THE PRINCIPAL, THE INTEREST AND ANY PREMIUM ON THE BONDS AS THEY COME
DUE.
3. ESTABLISH PRIORITIES AMONG BONDHOLDERS BASED ON CRITERIA ADOPTED
BY THE BOARD.
4. SET ASIDE, REGULATE AND DISPOSE OF RESERVES AND SINKING ACCOUNTS.
5. PRESCRIBE THE PROCEDURE, IF ANY, BY WHICH THE TERMS OF ANY CONTRACT
WITH BONDHOLDERS MAY BE AMENDED OR ABROGATED, THE AMOUNT OF BONDS THE HOLDERS
OF WHICH MUST CONSENT TO AND THE MANNER IN WHICH THE CONSENT MAY BE GIVEN.
6. PROVIDE FOR PAYMENT OF BOND RELATED EXPENSES FROM THE PROCEEDS OF
THE SALE OF THE BONDS OR OTHER REVENUES AUTHORIZED BY THIS ARTICLE AND
AVAILABLE TO THE BOARD.
7. PROVIDE FOR THE SERVICES OF TRUSTEES, COTRUSTEES, AGENTS AND
CONSULTANTS AND OTHER SPECIALIZED SERVICES WITH RESPECT TO THE BONDS.
8. TAKE ANY OTHER ACTION THAT IN ANY WAY MAY AFFECT THE SECURITY AND
PROTECTION OF THE BONDS OR INTEREST ON THE BONDS.
9. REFUND ANY BONDS ISSUED BY THE BOARD, IF THESE BONDS ARE SECURED
FROM THE SAME SOURCE OF REVENUES AS THE BONDS AUTHORIZED BY THIS ARTICLE, BY
ISSUING NEW BONDS.
10. ISSUE BONDS PARTLY TO REFUND OUTSTANDING BONDS AND PARTLY FOR ANY
OTHER PURPOSE CONSISTENT WITH THIS ARTICLE.
B. THE MONIES SO PLEDGED AND RECEIVED BY THE BOARD TO BE PLACED IN THE
REVENUE BOND DEBT SERVICE FUND ARE IMMEDIATELY SUBJECT TO THE LIEN OF THE
PLEDGE WITHOUT ANY FUTURE PHYSICAL DELIVERY OR FURTHER ACT. ANY LIEN OF ANY
PLEDGE IS VALID AND BINDING AGAINST ALL PARTIES THAT HAVE CLAIMS OF ANY KIND
AGAINST THE BOARD, REGARDLESS OF WHETHER THE PARTIES HAVE NOTICE OF THE LIEN.
THE OFFICIAL RESOLUTION OR TRUST INDENTURE OR ANY INSTRUMENT BY WHICH THIS
PLEDGE IS CREATED, WHEN ADOPTED BY THE BOARD, IS NOTICE TO ALL CONCERNED OF
THE CREATION OF THE PLEDGE, AND THOSE INSTRUMENTS NEED NOT BE RECORDED IN ANY
OTHER PLACE TO PERFECT THE PLEDGE.
1. IF THE BONDS ARE REDEEMABLE AT THE TIME OF THE PURCHASE, THE
APPLICABLE REDEMPTION PRICE PLUS ACCRUED INTEREST TO THE NEXT INTEREST
PAYMENT DATE ON THE BONDS.
2. IF THE BONDS ARE NOT REDEEMABLE AT THE TIME OF THE PURCHASE, THE
APPLICABLE REDEMPTION PRICE ON THE FIRST DATE AFTER THE PURCHASE ON WHICH THE
BONDS BECOME SUBJECT TO REDEMPTION PLUS ACCRUED INTEREST TO THAT DATE.
B. THE SCHOOL FACILITIES BOARD SHALL FIX A TIME FOR A HEARING ON THE
PROPOSED CANCELLATION OF THE UNSOLD BONDS. THE SCHOOL FACILITIES BOARD SHALL
GIVE NOTICE OF THE TIME, PLACE AND SUBJECT OF THE HEARING. THE NOTICE SHALL
BE PUBLISHED FOR TEN DAYS BEFORE THE HEARING IN A NEWSPAPER OF GENERAL
CIRCULATION.
C. AT THE TIME AND PLACE DESIGNATED IN THE NOTICE THE SCHOOL
FACILITIES BOARD SHALL HEAR REASONS FOR OR AGAINST THE PROPOSED CANCELLATION
OF THE UNSOLD BONDS. IF THE SCHOOL FACILITIES BOARD CONSIDERS IT TO BE IN
THIS STATE'S BEST INTERESTS, IT SHALL ORDER THE UNSOLD BONDS TO BE CANCELED,
AND THE BONDS AND THE VOTE BY WHICH THEY WERE AUTHORIZED TO BE ISSUED ARE
THEN VOID.
B. THE STATE TREASURER OR THE PAYING AGENT FOR THE REVENUE BONDS SHALL
CANCEL ALL REVENUE BONDS WHEN PAID.
B. THE ORDER DIRECTING AN INVESTMENT SHALL STATE A SPECIFIED TIME WHEN
THE PROCEEDS FROM THE SALE OF THE BONDS WILL BE USED. THE STATE TREASURER
SHALL MAKE THE INVESTMENT IN SUCH A WAY AS TO MATURE AT THE SPECIFIED DATE.
C. ALL MONIES EARNED AS INTEREST OR OTHERWISE DERIVED FROM THE
INVESTMENT OF THE MONIES IN THE REVENUE BOND PROCEEDS FUND SHALL BE CREDITED
TO THE REVENUE BOND DEBT SERVICE FUND ESTABLISHED BY SECTION 15-2054.
B. ALL MONIES EARNED AS INTEREST OR OTHERWISE DERIVED FROM THE
INVESTMENT OF THE MONIES IN THE REVENUE BOND DEBT SERVICE FUND SHALL BE
CREDITED TO THAT FUND.
1. UNITED STATES TREASURY OBLIGATIONS.
2. CONSOLIDATED FARM LOAN BONDS.
3. OBLIGATIONS ISSUED BY THE FEDERAL INTERMEDIATE CREDIT BANKS OR BY
BANKS FOR COOPERATIVES ON THE AUTHORITY OF THE FARM CREDIT ACT OF 1933.
4. ANY OTHER OBLIGATIONS GUARANTEED BY THE UNITED STATES GOVERNMENT.
5. ANY INVESTMENTS AUTHORIZED BY ANY OTHER AGENCIES OF THE UNITED
STATES GOVERNMENT THAT ARE AUTHORIZED FOR USE TO SECURE PUBLIC DEPOSITS.
6. STATE, COUNTY OR MUNICIPAL BONDS ISSUED IN THIS STATE ON WHICH THE
PAYMENTS OF INTEREST HAVE NOT BEEN DEFERRED.
B. THE PURCHASE OF THE SECURITIES SHALL BE MADE BY THE STATE TREASURER
OR BOND TRUSTEE ON AUTHORITY OF A RESOLUTION OF THE BOARD. THE TREASURER OR
BOND TRUSTEE SHALL ACT AS CUSTODIAN OF ALL SECURITIES PURCHASED. THE
SECURITIES MAY BE SOLD ON AN ORDER OF THE BOARD.
B. THE SCHOOL FACILITIES BOARD SHALL IMMEDIATELY FILE A CERTIFIED COPY
OF THE AUDIT WITH THE AUDITOR GENERAL. THE AUDITOR GENERAL MAY MAKE ANY
FURTHER AUDITS AND EXAMINATIONS THAT ARE NECESSARY AND TAKE APPROPRIATE
ACTION RELATING TO THE AUDIT OR EXAMINATION PURSUANT TO TITLE 41, CHAPTER 7,
ARTICLE 10.1. IF THE AUDITOR GENERAL TAKES NO OFFICIAL ACTION WITHIN THIRTY
DAYS AFTER THE AUDIT IS FILED, THE AUDIT IS CONSIDERED TO BE SUFFICIENT.
C. THE SCHOOL FACILITIES BOARD SHALL PAY NEGOTIATED AND APPROVED FEES
AND COSTS OF THE CERTIFIED PUBLIC ACCOUNTANT AND AUDITOR GENERAL UNDER THIS
SECTION FROM THE REVENUE BOND DEBT SERVICE FUND ESTABLISHED BY SECTION
15-2054.
B. THE BONDS, THEIR TRANSFER AND THE INCOME FROM THE BONDS ARE AT ALL
TIMES FREE FROM TAXATION IN THIS STATE.
C. BONDS ISSUED UNDER THIS ARTICLE:
1. ARE OBLIGATIONS OF THE BOARD. THE MEMBERS OF THE BOARD AND PERSONS
EXECUTING THE BONDS ARE NOT PERSONALLY LIABLE FOR PAYMENT OF THE BONDS.
2. ARE PAYABLE ONLY ACCORDING TO THEIR TERMS.
3. ARE NOT GENERAL, SPECIAL OR OTHER OBLIGATIONS OF THIS STATE.
4. DO NOT CONSTITUTE A DEBT OF THIS STATE.
5. ARE NOT ENFORCEABLE AGAINST THIS STATE NOR IS PAYMENT OF THE BONDS
ENFORCEABLE OUT OF ANY MONIES OTHER THAN THE REVENUE PLEDGED AND ASSIGNED TO,
OR IN TRUST FOR THE BENEFIT OF, THE HOLDER OR HOLDERS OF THE BONDS.
6. ARE SECURITIES IN WHICH PUBLIC OFFICERS AND BODIES OF THIS STATE
AND OF MUNICIPALITIES AND POLITICAL SUBDIVISIONS OF THIS STATE, ALL
COMPANIES, ASSOCIATIONS AND OTHER PERSONS CARRYING ON AN INSURANCE BUSINESS,
ALL FINANCIAL INSTITUTIONS, INVESTMENT COMPANIES AND OTHER PERSONS CARRYING
ON A BANKING BUSINESS, ALL FIDUCIARIES AND ALL OTHER PERSONS WHO ARE
AUTHORIZED TO INVEST IN GOVERNMENT OBLIGATIONS MAY PROPERLY AND LEGALLY
INVEST.
7. ARE SECURITIES THAT MAY BE DEPOSITED WITH PUBLIC OFFICERS OR BODIES
OF THIS STATE AND MUNICIPALITIES AND POLITICAL SUBDIVISIONS OF THIS STATE FOR
PURPOSES THAT REQUIRE THE DEPOSIT OF GOVERNMENT BONDS OR OBLIGATIONS.
B. AN AMENDMENT OF ANY PROVISION OF THIS ARTICLE DOES NOT DIMINISH OR
IMPAIR THE VALIDITY OF BONDS ISSUED UNDER THIS ARTICLE OR THE REMEDIES AND
RIGHTS OF BONDHOLDERS.
C. THIS STATE PLEDGES TO AND AGREES WITH THE HOLDERS OF THE BONDS
AUTHORIZED BY THIS ARTICLE THAT THIS STATE WILL NOT LIMIT, ALTER OR IMPAIR
THE RIGHTS AND REMEDIES OF THE BONDHOLDERS, UNTIL ALL BONDS ISSUED UNDER THIS
ARTICLE, TOGETHER WITH INTEREST ON THE BONDS, INTEREST ON ANY UNPAID
INSTALLMENTS OF PRINCIPAL OR INTEREST AND ALL COSTS AND EXPENSES IN
CONNECTION WITH ANY ACTION OR PROCEEDINGS BY OR ON BEHALF OF THE BONDHOLDERS,
ARE FULLY MET AND DISCHARGED. THE BOARD, AS AGENT FOR THIS STATE, MAY
INCLUDE THIS PLEDGE AND UNDERTAKING IN ITS RESOLUTIONS AND INDENTURES
AUTHORIZING AND SECURING THE BONDS.
B. THE VALIDITY OF BONDS ISSUED UNDER THIS ARTICLE DOES NOT DEPEND ON
AND IS NOT AFFECTED BY THE LEGALITY OF ANY PROCEEDING RELATING TO ANY ACTION
BY THE SCHOOL FACILITIES BOARD IN GRANTING OR LENDING MONIES OR THE ACQUISITION, CONSTRUCTION OR IMPROVEMENT OF ANY FACILITY PAID WITH MONIES
PROVIDED BY THE BOARD.
C. THE SCHOOL FACILITIES BOARD MAY SUBMIT TO THE ATTORNEY GENERAL
REVENUE BONDS TO BE ISSUED UNDER THIS ARTICLE AFTER ALL PROCEEDINGS FOR
AUTHORIZING THE BONDS HAVE BEEN COMPLETED. WITHIN FIFTEEN DAYS AFTER
SUBMISSION, THE ATTORNEY GENERAL SHALL EXAMINE THE BONDS AND PASS ON THE
VALIDITY OF THE BONDS AND THE REGULARITY OF THE PROCEEDINGS. IF THE BONDS
AND PROCEEDINGS COMPLY WITH THE CONSTITUTION OF ARIZONA AND THIS ARTICLE, AND
IF THE BONDS WHEN DELIVERED AND PAID FOR WILL CONSTITUTE BINDING AND LEGAL
OBLIGATIONS OF THE BOARD, THE ATTORNEY GENERAL SHALL CERTIFY IN SUBSTANCE
THAT THE BONDS ARE ISSUED ACCORDING TO THE CONSTITUTION AND LAWS OF THIS
STATE. THE CERTIFICATE SHALL ALSO STATE THAT THE BONDS ARE ALSO VALIDLY
SECURED BY THE OBLIGATION TO TRANSFER MONIES FROM DESIGNATED SOURCES OF
REVENUE, INCLUDING INCOME ON THE PERMANENT STATE SCHOOL FUND ESTABLISHED BY
SECTION 37-521, TO COVER ANY INSUFFICIENCIES.
D. THE BONDS SHALL RECITE THAT THEY ARE REGULARLY ISSUED PURSUANT TO
THIS ARTICLE. THAT RECITAL, TOGETHER WITH THE CERTIFICATION BY THE ATTORNEY
GENERAL UNDER SUBSECTION C OF THIS SECTION, CONSTITUTES PRIMA FACIE EVIDENCE
OF THE LEGALITY AND VALIDITY OF THE BONDS. FROM AND AFTER THE SALE AND
DELIVERY OF THE BONDS, THEY ARE INCONTESTABLE BY THE SCHOOL FACILITIES BOARD
OR THIS STATE.
Sec. 40. Section 37-521, Arizona Revised Statutes, as amended by Laws
1996, fifth special session, chapter 8, section 14, is amended to read:
A. The permanent state school fund shall consist of:
1. The proceeds of all lands granted to the state by the United States
for the support of common schools.
2. All property which accrues to the state by escheat or forfeiture.
3. All property donated for the benefit of the common schools, unless
the terms of the donation otherwise provide.
4. All unclaimed shares and dividends of any corporation incorporated
under the laws of this state.
5. The proceeds of sale of timber, mineral, gravel or other natural
products or property from school lands and state lands other than those
granted for specific purposes.
6. The residue of the lands granted for payment of the bonds and
accrued interest issued by Maricopa, Pima, Yavapai and Coconino counties,
after the purpose of the grant has been satisfied, and the five per cent of
the proceeds of sales of public lands lying within this state sold by the
United States subsequent to admission of this state into the union, as
granted by the enabling act.
B. The fund shall be and remain a perpetual fund, the interest of
which only, together with the monies derived from the rental of the lands and property, including interest and accrued rent for that year credited pursuant
to section 37-295, shall be used
2. FROM AND AFTER JUNE 30, 1999, IF THERE ARE NO OUTSTANDING STATE
SCHOOL FACILITIES REVENUE BONDS PURSUANT TO TITLE 15, CHAPTER 16, ARTICLE 6
OR IF THE AMOUNT OF MONIES AVAILABLE UNDER THIS SUBSECTION EXCEEDS THE AMOUNT
REQUIRED UNDER PARAGRAPH 1 OF THIS SUBSECTION, THE MONIES ARE SUBJECT TO
LEGISLATIVE APPROPRIATION TO THE NEW SCHOOL FACILITIES FUND ESTABLISHED BY
SECTION 15-2041.
3. FROM AND AFTER JUNE 30, 1999, IF THE AMOUNT OF MONIES AVAILABLE
UNDER THIS SUBSECTION EXCEEDS THE AMOUNT REQUIRED UNDER PARAGRAPHS 1 AND 2
OF THIS SUBSECTION, THE REMAINING AMOUNT SHALL BE USED AS PROVIDED IN SECTION
15-971, SUBSECTION H.
Sec. 41.
Section
Sec. 42. Section 41-1231, Arizona Revised Statutes, is amended to
read:
In this article, unless the context otherwise requires:
1. "Authorized lobbyist" means any person, other than a designated
lobbyist or lobbyist for compensation, who is employed by, retained by or
representing a principal with or without compensation for the purpose of
lobbying and who is listed as an authorized lobbyist by the principal in its
registration pursuant to section 41-1232.
2. "Authorized public lobbyist" means a person, other than a
designated public lobbyist, who is employed by, retained by or representing
a public body, with or without compensation, for the purpose of lobbying and
who is listed as an authorized public lobbyist by the public body in its
registration pursuant to section 41-1232.01.
3. "Designated lobbyist" means the person who is designated by a
principal as the single point of contact for the principal and who is listed as the designated lobbyist by the principal in its registration pursuant to
section 41-1232.
4. "Designated public lobbyist" means the person who is designated by
a public body as the single point of contact for the public body and who is
listed as the designated public lobbyist by the public body in its
registration pursuant to section 41-1232.01.
5. "Entertainment" means the amount of any expenditure paid or
incurred for admission to any event or for participation in any activity that
is attended by a state officer or employee who believed that the principal,
public body, lobbyist, designated public lobbyist or authorized public
lobbyist who made the expenditure would be present at the event or activity.
6. "Expenditure" means a payment, distribution, loan, advance, deposit
or gift of money or anything of value and includes a contract, promise or
agreement, whether or not legally enforceable, to make an expenditure that
provides a benefit to an individual state officer or state employee and that
is incurred by or on behalf of one or more principals, public bodies,
lobbyists, designated public lobbyists or authorized public lobbyists.
7. "Family gift" means a gift to a state officer or employee or a
member of the officer's or employee's household from a principal, lobbyist,
designated public lobbyist or authorized public lobbyist who is a relative
of the state officer or employee or a member of the household of the state
officer or employee if the donor is not acting as the agent or intermediary
for someone other than a person covered by this paragraph.
8. "Food or beverage" means the amount of any expenditure paid or
incurred for food or beverages for a state officer or employee provided at
a location at which the principal, public body, lobbyist, designated public
lobbyist or authorized public lobbyist who made the expenditure is present.
9. "Gift" means a payment, distribution, advance, deposit or donation
of money, any intangible personal property or any kind of tangible personal
or real property. For purposes of this article gift does not include:
(a) A gift, devise or inheritance from an individual's spouse, child,
parent, grandparent, grandchild, brother, sister, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, aunt, uncle or first cousin or
the spouse of any such individual if the donor is not acting as the agent or
intermediary for someone other than a person covered by this subdivision.
(b) Expenditures which are either properly reported or exempt from
reporting under this chapter for:
(i) Entertainment.
(ii) Food or beverages.
(iii) Travel and lodging.
(iv) Flowers.
(c) Salary, compensation or employer reimbursed expenses lawfully paid
to a public official.
(d) The value, cost or price of professional or consulting services
that are not rendered to obtain a benefit for any registered principal,
public body, lobbyist, designated public lobbyist or authorized public
lobbyist or the clients of a principal or lobbyist.
(e) Expenses relating to a special event or function to which all
members of the legislature, either house of the legislature or any committee
of the legislature are invited.
(f) A plaque or other form of recognition similar to a plaque to a
state officer or state employee to signify the honorary recognition of a
service or other notable accomplishment.
(g) Informational material such as books, reports, pamphlets,
calendars or periodicals.
(h) An item that is not used and that is returned within fifteen days
of receipt to the donor or that is delivered within fifteen days of receipt
to a charitable organization and that is not claimed as a charitable
contribution for state or federal income tax purposes.
(i) A campaign contribution that is properly received and reported as
required by law.
(j) An item that is given to a state officer or employee if the state
officer or employee gives an item of approximately the same value to the
giver of the item at the same time that the item is given or on a similar
occasion as the one that prompted the original item to be given.
(k) Gifts of a personal nature that were customarily received by an
individual from the donor before the individual became a state officer or
employee.
(l) An item that is given to the general public at an event.
10. "Legislation" means bills, resolutions, memorials, amendments,
nominations and other matters pending or proposed in either house of the
legislature of this state
11. "Lobbying" means attempting to influence the passage or defeat of
any legislation by directly communicating with any legislator
(a) Interagency communications between state agency employees.
(b) Communications between a public official or employee of a public
body, designated public lobbyist or authorized public lobbyist and any state
officer, except for a member of the legislature, or employee.
(c) Oral questions or comments made by a person to a state officer or
employee regarding a proposed rule made in public at a meeting or workshop that is open to the public and is sponsored by a state agency, board,
commission, council or office.
12. "Lobbyist" means any person, other than a designated public
lobbyist or authorized public lobbyist, who is employed by, retained by or
representing a person other than himself, with or without compensation, for
the purpose of lobbying and who is listed as a lobbyist by the principal in
its registration pursuant to section 41-1232. Lobbyist includes a lobbyist
for compensation, designated lobbyist and authorized lobbyist.
13. "Lobbyist for compensation" means a lobbyist who is compensated for
the primary purpose of lobbying on behalf of a principal and who is listed
by the principal in its registration pursuant to section 41-1232.
14. "Person" means an individual, partnership, committee, association
or corporation and any other organization or group of persons, except
legislators and political parties qualified for representation on the ballot
pursuant to section 16-801 or 16-804.
15. "Personal hospitality" means hospitality, meals, beverages,
transportation or lodging furnished but not commercially provided by a person
on property or facilities owned or possessed by the person or his family.
16. "Principal" means any person, other than a public body, that
employs, retains, engages or uses, with or without compensation, a lobbyist.
Principal includes any subsidiary of a corporation.
17. "Public body" means the Arizona board of regents, a university
under the jurisdiction of the Arizona board of regents, the judicial
department, any state agency, board, commission or council, any county, any
county elected officer who elects to appoint a designated public lobbyist or
any city, town, district or other political subdivision of this state which
receives and utilizes tax revenues and that employs, retains, engages or
uses, with or without compensation, a designated public lobbyist or
authorized public lobbyist.
18. "Public official" means a person duly elected, appointed or
retained through election to a state, county or local office.
19. "Single expenditure" means an expenditure that provides a benefit
of more than twenty dollars to an individual state officer or state employee
and that is incurred by or on behalf of one or more principals, public
bodies, lobbyists, designated public lobbyists or authorized public
lobbyists.
20. "State employee" means an employee of the legislature, a university
under the jurisdiction of the Arizona board of regents, the judicial
department or a state office, agency, board, commission or council.
21. "State officer" means a person duly elected, appointed or retained
through election to any state office, or a member of any state board,
commission or council, and includes a member of the legislature.
Sec. 43. Title 41, chapter 27, article 2, Arizona Revised Statutes,
is amended by adding section 41-3008.18, to read:
B. TITLE 15, CHAPTER 16 IS REPEALED ON JANUARY 1, 2009 ONLY IF EITHER:
1. THE BOARD HAS NO OUTSTANDING STATE SCHOOL FACILITIES REVENUE BONDS
ISSUED PURSUANT TO TITLE 15, CHAPTER 16, ARTICLE 6.
2. THE LEGISLATURE HAS OTHERWISE PROVIDED FOR PAYING OR RETIRING ANY
OUTSTANDING STATE SCHOOL FACILITIES REVENUE BONDS.
C. IF NEITHER OF THE CONDITIONS IN SUBSECTION B HAVE OCCURRED BY
JANUARY 1, 2009, TITLE 15, CHAPTER 16 IS REPEALED THIRTY DAYS AFTER THE
RETIREMENT OF ALL REVENUE BONDS ISSUED PURSUANT TO TITLE 15, CHAPTER 16,
ARTICLE 6.
Sec. 44. Title 42, chapter 8, article 1, Arizona Revised Statutes, is amended by adding section 42-1342, to read:
B. FROM AND AFTER JUNE 30, 1999, EACH FISCAL YEAR AFTER ANY PAYMENTS UNDER SUBSECTION A OF THIS SECTION THE STATE TREASURER SHALL CREDIT:
1. TO THE DEFICIENCIES CORRECTION FUND STATE GENERAL FUND REVENUES
COLLECTED PURSUANT TO THIS CHAPTER IN AN AMOUNT SUFFICIENT TO MEET THE
REQUIREMENTS OF SECTION 15-2021.
2. TO THE BUILDING RENEWAL FUND STATE GENERAL FUND REVENUES COLLECTED
PURSUANT TO THIS CHAPTER IN AN AMOUNT SUFFICIENT TO MEET THE REQUIREMENTS OF
SECTION 15-2031.
3. TO THE NEW SCHOOL FACILITIES FUND STATE GENERAL FUND REVENUES
COLLECTED PURSUANT TO THIS CHAPTER IN AN AMOUNT SUFFICIENT TO MEET THE
REQUIREMENTS OF SECTION 15-2041.
Sec. 45. Section 42-5029, Arizona Revised Statutes, as amended by Laws
1998, chapter 1, section 162, is amended from and after December 31, 1998,
to read:
A. The department shall transmit all revenues collected under this
article and articles 5, 8 and 9 of this chapter to the state treasurer
pursuant to section 42-1116, separately accounting for payments of estimated
tax under section 42-5014, subsection D and revenues collected pursuant to
section 42-5070. The state treasurer shall credit payments of estimated tax
to an estimated tax clearing account and each month shall transfer all monies
in the estimated tax clearing account to a fund designated as the transaction
privilege and severance tax clearing account on notification by the
department of the allocation of monies. The state treasurer shall credit all
other payments to the transaction privilege and severance tax clearing
account, separately accounting for the monies designated as distribution base
under sections 42-5010, 42-5205, 42-5353 and 42-5409. Each month the
department shall report to the state treasurer the amount of monies collected
pursuant to this article and articles 5, 8 and 9 of this chapter.
B. Each month the state treasurer shall distribute the monies
deposited in the transaction privilege and severance tax clearing account in
the manner prescribed by this section and by sections 42-5205, 42-5353 and
42-5409, after deducting warrants drawn against the account pursuant to
sections 42-1118 and 42-1254.
C. Of the monies designated as distribution base the state treasurer
shall:
1. Pay twenty-five per cent to the various incorporated municipalities
in this state in proportion to their population as shown by the last United
States decennial or special census, or revisions to the decennial or special
census certified by the United States bureau of the census, to be used by the
municipalities for any municipal purpose.
2. Pay 38.08 per cent to the counties in this state by averaging the
following proportions:
(a) The proportion that the population of each county bears to the
total state population, as shown by the most recent United States decennial
or special census, or revisions to the decennial or special census certified
by the United States bureau of the census.
(b) The proportion that the distribution base monies collected during
the calendar month in each county under this article, section 42-5205,
subsection B
3. Pay an additional 2.43 per cent to the counties in this state as
follows:
(a) Average the following proportions:
(i) The proportion that the assessed valuation used to determine
secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month
for which the amount is to be paid, bears to the total assessed valuations
used to determine secondary property taxes of all the counties after
deducting that portion of the assessed valuations that is exempt from
taxation at the beginning of the month for which the amount is to be paid.
Property of a city or town that is not within or contiguous to the municipal
corporate boundaries and from which water is or may be withdrawn or diverted
and transported for use on other property is considered to be taxable
property in the county for purposes of determining assessed valuation in the
county under this item.
(ii) The proportion that the distribution base monies collected
during the calendar month in each county under this article, section 42-5205,
subsection B
(b) If the proportion computed under subdivision (a) of this paragraph
for any county is greater than the proportion computed under paragraph 2
4. After any distributions required by sections 42-5030,
(a) The department of revenue sufficient monies to administer and
enforce this article and articles 5, 8 and 9 of this chapter.
(b) The department of economic security monies to be used for the
purposes stated in title 46, chapter 1.
(c) The tourism fund an amount equal to the sum of the following:
(i) Two million dollars.
(ii) Seventy-five per cent of the amount by which revenues derived
from a one-half percentage rate portion of the total tax rate imposed on the
transient lodging classification for the current fiscal year exceed the
revenues derived from a one-half percentage rate portion of that tax in the
previous fiscal year.
(d) The Arizona arts endowment fund established by section 41-986, the
full amount by which revenues derived from the amusement classification
pursuant to section 42-5073 for the current fiscal year exceed the revenues
that were derived from that classification in fiscal year 1993-1994, except
that this amount shall not exceed two million dollars in any fiscal year.
This subdivision applies for fiscal years through June 30, 2007.
D. The state treasurer shall credit the remainder of the monies in the
transaction privilege and severance tax clearing account to the state general
fund
E. Notwithstanding subsection C of this section, if a court of
competent jurisdiction finally determines that tax monies distributed under
this section were illegally collected under this article or articles 5, 8 and
9 of this chapter and orders the monies to be refunded to the taxpayer, the
department shall compute the amount of such monies that was distributed to
each city, town and county under this section. The department shall notify
the state treasurer of that amount plus the proportionate share of additional
allocated costs required to be paid to the taxpayer. Each city's, town's and
county's proportionate share of the costs shall be based on the amount of the
original tax payment each municipality and county received. Each month the
state treasurer shall reduce the amount otherwise distributable to the city,
town and county under this section by one thirty-sixth of the total amount
to be recovered from the city, town or county until the total amount has been
recovered, but the monthly reduction for any city, town or county shall not
exceed ten per cent of the full monthly distribution to that entity. The
reduction shall begin for the first calendar month after the final
disposition of the case and shall continue until the total amount, including
interest and costs, has been recovered.
F. On receiving a certificate of default from the greater Arizona
development authority pursuant to section 41-1554.06 or 41-1554.07 and to the
extent not otherwise expressly prohibited by law, the state treasurer shall
withhold from the next succeeding distribution of monies pursuant to this
section due to the defaulting political subdivision the amount specified in
the certificate of default and immediately deposit the amount withheld in the
greater Arizona development authority revolving fund. The state treasurer
shall continue to withhold and deposit the monies until the greater Arizona
development authority certifies to the state treasurer that the default has
been cured. In no event may the state treasurer withhold any amount that the
defaulting political subdivision certifies to the state treasurer and the
authority as being necessary to make any required deposits then due for the
payment of principal and interest on bonds of the political subdivision that
were issued before the date of the loan repayment agreement or bonds and that
have been secured by a pledge of distributions made pursuant to this section.
Sec. 46.
Section 42-1342, Arizona Revised Statutes, as added by this act, is
transferred and renumbered from and after December 31, 1998, for placement
in title 42, chapter 5, article 1, Arizona Revised Statutes, as section 42-5030.01.
Sec. 47.
The purpose of the school facilities board is to evaluate the school
capital needs of school districts and to distribute monies to school
districts in order to cure existing deficiencies, for building renewal and
for the construction of new facilities.
A. Notwithstanding section 15-2001, Arizona Revised Statutes, as added
by this act, of the initial members appointed by the governor to the school
facilities board, the governor shall appoint three members of the board to
two-year terms in office, three members to three-year terms in office and
three members to four-year terms in office. The governor shall appoint all
subsequent members as prescribed by section 15-2001, Arizona Revised Statutes.
B. Notwithstanding Laws 1997, chapter 4, section 16, as amended by
Laws 1997, first special session, chapter 9, section 1, the school facilities
board succeeds to the functions of the state board for school capital
facilities established pursuant to Laws 1996, fifth special session, chapter
8. All administrative and financial matters, contracts, proceedings and
authorizations, whether completed, pending or in process, of the state board
for school capital facilities are transferred to and retain the same status
with the school facilities board. This act does not alter the effect of any
actions that were taken or impair the valid obligations of the state board
for school capital facilities that were in existence on the effective date
of this act.
C. The school facilities board shall assume responsibility for the
operation of the school capital equity fund.
Notwithstanding any unfulfilled condition prescribed by Laws 1997,
chapter 4, section 16, as amended by Laws 1997, first special session,
chapter 9, section 1, the state board for school capital facilities is
terminated for all purposes.
Notwithstanding any unfulfilled condition prescribed by Laws 1997,
chapter 4, section 16, as amended by Laws 1997, first special session,
chapter 9, section 1, all unexpended monies remaining in the assistance to
build classrooms fund revert to the state general fund.
Notwithstanding section 15-2031, Arizona Revised Statutes, as added by
this act, the school facilities board shall submit its initial report on the
proposed distribution of building renewal monies to the president of the
senate, the speaker of the house of representatives, the department of library, archives and public records and the governor as soon as practical
but no later than May 1, 1999.
A. As a result of the state assuming financial responsibility for the
costs associated with the construction of capital facilities for pupils in
this state who are attending public school in preschool programs for children
with disabilities, kindergarten programs and grades one through twelve
pursuant to this act, school districts are prohibited from levying secondary
property taxes for the purpose of financing capital facilities financed by
the state. As a result, secondary property taxes in local school districts
are required to be reduced from what the rates otherwise would have been.
B. In accordance with the provisions of article IX, section 17,
subsection 4, paragraph (c), Constitution of Arizona, authorizing an increase
in the state appropriation limitation for the transference of costs of
providing a governmental function to the state if the political subdivision
from which the function is transferred is required to commensurately reduce
its tax rate, beginning with fiscal year 1998-1999, the economic estimates
commission shall increase the state appropriation limitation by the
percentage equivalent of the amount appropriated by this act for new
construction of school capital facilities divided by the final estimate of
total personal income for fiscal year 1998-1999.
Notwithstanding section 15-2031, subsection E, Arizona Revised Statutes, as added by this act, the school facilities board shall distribute
monies for fiscal year 1998-1999 from the building renewal fund to school
districts in a single lump sum payment on June 15, 1999.
Sec. 54.
Notwithstanding section 15-902, 15-903, 15-904 and 15-905, Arizona Revised Statutes, as amended by this act, schools and school districts shall
not be required to submit electronic data to the department of education
until fiscal year 2000-2001
Notwithstanding any other law, the school facilities board is exempt
from the provisions of title 41, chapter 6, Arizona Revised Statutes, until
April 30, 1999 with respect to the enactment of the rules establishing
minimum school facility adequacy guidelines pursuant to section 15-2011,
Arizona Revised Statutes, as added by this act. By March 31, 1999, the
school facilities board shall provide a final draft of proposed minimum
school facility adequacy guidelines to the governor, the speaker of the house
of representatives and the president of the senate and the school facilities board shall make copies of the final draft available to the public. The
school facilities board shall provide the public with an opportunity to
comment on the proposed rules and shall hold at least one public hearing on
the proposed rules. The rules adopted pursuant to this section do not become
effective until April 30, 1999.
Sec. 56.
A. For fiscal year 1998-1999, the capital levy revenue limit per
student count for fiscal year 1998-1999 is increased by $42.82 before the
weights are applied pursuant to section 15-962, subsection A, Arizona Revised Statutes, as amended by Laws 1996, chapter 62, section 4. School districts
may revise their budgets within sixty days of the effective date of this act
to include the increase, but may only expend the additional monies for items
included in section 15-962, subsection F, Arizona Revised Statutes, as
amended by this act.
B. For fiscal year 1998-1999, the charter school capital allocation
pursuant to section 15-185.01, Arizona Revised Statutes, is increased by
three hundred fifty dollars.
C. For fiscal year 1998-1999, all restrictions on general obligation
bonding as provided in this act apply to joint technological education
districts.
Notwithstanding section 15-947, subsection D, Arizona Revised Statutes,
as amended by this act, for fiscal year 2000 school districts may budget any
monies accumulated in the reserve of the capital outlay fund as of June 30,
1999 as if the monies were the ending unexpended budget balance in the
unrestricted capital outlay fund.
Sec. 58.
For fiscal year 1999-2000, notwithstanding section 15-185, Arizona
Revised Statutes, as amended by this act, a charter school that is sponsored
by a school district governing board may elect to receive transportation
funding as provided in section 15-945, Arizona Revised Statutes, as follows:
1. If a charter school that is sponsored by a school district
governing board elects to receive transportation funding as provided in
section 15-945, Arizona Revised Statutes, the school district shall increase
its transportation support level to include the increases caused by the
transportation of eligible pupils enrolled in the charter school. The
transportation support level shall be determined using an estimated
transportation support level as prescribed in section 15-945, Arizona Revised Statutes, before the beginning of the school year. After the first one
hundred days in session, the charter school shall revise the transportation
support level to be equal to the actual transportation support level of the
charter school. Before the one hundredth day in session, the state board of
education may require a charter school to report periodically regarding the daily route mileage and the number of eligible pupils transported. A charter
school that overestimated its transportation support level shall revise its
budget before May 15. A charter school that underestimated its
transportation support level may revise its budget before May 15.
2. The additional assistance as provided in section 15-185, Arizona
Revised Statutes, for a charter school that is sponsored by a school district
governing board that elects to receive transportation funding under section
15-945, Arizona Revised Statutes, shall be reduced by one hundred
seventy-four dollars per student count in kindergarten programs and grades
one through eight and by one hundred seventy-four dollars per student count
in grades nine through twelve.
Sec. 59.
Notwithstanding sections 15-905, subsection R, 15-947, subsection D,
paragraph 4 and 15-947.01, subsection C, Arizona Revised Statutes, as amended
by this act, for fiscal year 1998-1999, the capital outlay revenue limit for
the budget year is included in the general budget limit and not included in
the capital budget limit and a school district is not subject to the
provisions of section 15-905, subsection R, Arizona Revised Statutes.
Sec. 60.
Notwithstanding any other provision of law, the school facilities board
is exempt from the provisions of title 41, chapter 23, Arizona Revised Statutes, until from and after December 31, 1999.
Sec. 61.
Title 15, chapter 16, article 3, Arizona Revised Statutes, as added by
this act, is repealed from and after June 30, 2003.
Sec. 62.
Section 58 of this act is repealed from and after June 30, 2000.
A. The sum of $3,200,000 is appropriated from the state general fund
to the school facilities board for fiscal year 1998-1999 for the purposes
prescribed by law. Of this appropriated amount, up to $2,000,000 may be used
by the board to contract for professional and other outside services, subject
to prior review by the joint legislative budget committee.
B. The appropriation under this section includes authorization for up
to nine full-time equivalent employment positions.
Sec. 64.
A. Notwithstanding sections 15-2002 and 42-1342, Arizona Revised Statutes, as added by this act, the sum of $35,000,000 is appropriated from
the state general fund to the school facilities board for fiscal year 1998-1999 for deposit in the deficiencies correction fund established by section
15-2021, Arizona Revised Statutes, as added by this act.
B. Notwithstanding sections 15-2002 and 42-1342, Arizona Revised Statutes, as added by this act, the sum of $75,000,000 is appropriated from the state general fund to the school facilities board for fiscal year 1998-1999 for deposit in the
building renewal fund established by section 15-2031,
Arizona Revised Statutes, as added by this act.
C. Notwithstanding sections 15-2002 and 42-1342, Arizona Revised Statutes, as added by this act, the sum of $200,000,000 is appropriated from
the state general fund to the school facilities board for fiscal year 1998-1999 for deposit in the new school facilities fund established by section 15-2041, Arizona Revised Statutes, as added by this act.
The sum of $12,460,000 is appropriated from the state general fund to
the department of education for fiscal year 1998-1999 for additional
assistance for charter schools as prescribed in section 15-185, Arizona Revised Statutes.
Sec. 66.
The sum of $36,500,000 is appropriated from the state general fund to
the department of education in fiscal year 1998-1999 for the additional
capital levy revenue limit to school districts pursuant to section 56,
subsection A of this act.
Sec. 67.
A. Any unexpended monies up to $15,000,000 in the capital reserve fund
established by section 15-2003, Arizona Revised Statutes, as of June 30, 1999
are transferred to the deficiencies correction fund and is appropriated for
the purposes of the deficiencies correction fund.
B. For fiscal year 1999-2000, the amount of $15,000,000, minus any
amount transferred pursuant to subsection A of this section, is appropriated
from the state general fund to the deficiencies correction fund for the
purposes of the deficiencies correction fund.
C. Any unexpended monies up to $15,000,000 in the capital reserve fund
established by section 15-2003, Arizona Revised Statutes, as added by this
act, as of June 30, 2000 are transferred to the deficiencies correction fund
and are appropriated for the purposes of the deficiencies correction fund.
D. For fiscal year 2000-2001 the amount of $15,000,000, minus any
amount transferred pursuant to subsection C of this section, is appropriated
from the state general fund to the deficiencies correction fund for the
purposes of the deficiencies correction fund.
Sec. 68.
This act is an emergency measure that is necessary to preserve the
public peace, health or safety and is operative immediately as provided by
law.
APPROVED BY THE GOVERNOR JULY 9, 1998.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 9, 1998.
Small School
Support Level Weight
Phase Down
Count
Student
for Small Isolated
Reduction
Count Limit
School Districts
Base Level
Factor
-
125
x
1.358 + (0.0005 x
x
$
=
$
(500 - Student Count))
Small Isolated
Phase Down
Phase Down
School District
Base
Reduction Factor
Elementary Limit
$150,000
-
$
=
$
Small School
Support Level Weight
Phase Down
Count
Student
for Small
Reduction
Count Limit
School Districts
Base Level
Factor
-
125
x
1.278 + (0.0003 x
x
$
=
$
(500 - Student Count))
Small
Phase Down
Phase Down
School District
Base
Reduction Factor
Elementary Limit
$150,000
-
$
=
$
Small School
Support Level Weight
Phase Down
Count
Student
for Small Isolated
Reduction
Count Limit
School Districts
Base Level
Factor
-
100
x
1.468 + (0.0005 x
x
$
=
$
(500 - Student Count))
Small Isolated
Phase Down
Phase Down
District
Base
Reduction Factor
Secondary Limit
$350,000
-
$
=
$
Small School
Support Level Weight
Phase Down
Count
Student
for Small
Reduction
Count Limit
School Districts
Base Level
Factor
-
100
x
1.398 + (0.0004 x
x
$
=
$
(500 - Student Count))
Small
Phase Down
Phase Down
School District
Base
Reduction Factor
Secondary Limit
$350,000
-
$
=
$
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