Reference Title: character education; tax credit

AN ACT
AMENDING SECTIONS 15-341, 15-351 AND 15-353, ARIZONA REVISED STATUTES; AMENDING TITLE 43, CHAPTER 10, ARTICLE 5, ARIZONA REVISED STATUTES, BY ADDING SECTION 43-1089.02; AMENDING TITLE 43, CHAPTER 11, ARTICLE 6, ARIZONA REVISED STATUTES, BY ADDING SECTION 43-1179; RELATING TO CHARACTER EDUCATION CURRICULUM.

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

Section 1. Section 15-341, Arizona Revised Statutes, is amended to read:

15-341 . General powers and duties; immunity; delegation

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 two hundred school days, as applicable, 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 42-11104.

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.

31. ADOPT A CHARACTER EDUCATION CURRICULUM FOR EACH SCHOOL IN THE SCHOOL DISTRICT. THE CHARACTER EDUCATION CURRICULUM SHALL BE SIMILAR TO THE "CHARACTER COUNTS" OR THE "CHARACTER FIRST!" EDUCATION SERIES, SHALL BE SECULAR IN NATURE AND SHALL STRESS THE IMPORTANCE OF CHARACTER QUALITIES SUCH AS ATTENTIVENESS, PATIENCE AND INITIATIVE.

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. The governing board may not locate a school on property that is less than one-fourth mile from agricultural land regulated pursuant to section 3-365, except that the owner of the agricultural land may agree to comply with the buffer zone requirements of section 3-365. If the owner agrees in writing to comply with the buffer zone requirements and records the agreement in the office of the county recorder as a restrictive covenant running with the title to the land, the school district may locate a school within the affected buffer zone. The agreement may include any stipulations regarding the school, including conditions for future expansion of the school and changes in the operational status of the school that will result in a breach of the agreement.

D. 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 or its school council members are guilty of gross negligence or intentional misconduct.

E. 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.

F. 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.

G. Subsections C, D and E of this section shall apply to a county board of supervisors and a county school superintendent when operating and administering an accommodation school.

Sec. 2. Section 15-351, Arizona Revised Statutes, is amended to read:

15-351 . School councils; duties; membership

A. The purpose of this section is to ensure that individuals who are affected by the outcome of a decision at the school site have an opportunity to provide input into the decision making process.

B. Each school shall establish a school council. A governing board may delegate to a school council the responsibility to develop a curriculum and may delegate any additional powers that are reasonably necessary to accomplish decentralization. The school council shall reflect the ethnic composition of the local community and, except as provided in section 15-352, shall consist of the following members:

1. Parents of pupils enrolled in the school who are not employed by the school district.

2. Teachers.

3. Noncertified employees.

4. Community members.

5. Pupils, if the school is a high school.

C. Each group specified in subsection B of this section shall select its representatives and shall submit the names of its respective representatives to the principal for appointment to the school council. The initial representatives shall be selected at public meetings held at the school site, and, thereafter, representatives shall be selected by their groups in the manner determined by the school council. Schools shall give notice of the public meeting where the initial representatives of the groups shall be selected, clearly stating its purpose, time and place. The notice shall be posted in at least three different locations at the school site and in the community and shall be given to pupils for delivery to their parents.

D. The governing board shall determine the initial number of school council members. Thereafter, the school council shall determine the number. The number of teachers and parents of pupils enrolled at the school shall be equal. Teachers and parents of pupils enrolled at the school shall constitute a majority of the school council members.

E. IN ADDITION TO THE DUTIES PRESCRIBED IN SUBSECTION B OF THIS SECTION, EACH SCHOOL COUNCIL SHALL:

1. DISCUSS THE ISSUE OF CHARACTER EDUCATION DURING AT LEAST THREE REGULARLY SCHEDULED MEETINGS EACH SCHOOL YEAR. THE PRINCIPAL OF THE SCHOOL SHALL INVITE REPRESENTATIVES OF LOCAL BUSINESSES AND STATE AND LOCAL ELECTED OFFICIALS TO SERVE ON THE SCHOOL COUNCIL AS NONVOTING MEMBERS DURING MEETINGS WHERE CHARACTER EDUCATION IS DISCUSSED. THE SCHOOL COUNCIL SHALL REVIEW THE "CHARACTER COUNTS" AND "CHARACTER FIRST!" EDUCATION SERIES DURING EACH CHARACTER EDUCATION MEETING. THE INITIAL CHARACTER EDUCATION MEETING SHALL BE HELD NO LATER THAN OCTOBER 1. THE NOTICE OF EACH CHARACTER EDUCATION MEETING SHALL CLEARLY STATE ITS PURPOSE, TIME AND PLACE. THE NOTICE SHALL BE POSTED IN AT LEAST THREE DIFFERENT LOCATIONS AT THE SCHOOL SITE AND IN THE COMMUNITY AND SHALL BE GIVEN TO PUPILS FOR DELIVERY TO THEIR PARENTS.

2. INVITE PARENTS TO BRING CHILDREN ENROLLED AT THE SCHOOL TO PARTICIPATE IN SCHOOL COUNCIL MEETINGS WHERE CHARACTER EDUCATION IS DISCUSSED.

E. F. The principal shall serve as chairman of the school council unless another person is elected by a majority of the school council members.

Sec. 3. Section 15-353, Arizona Revised Statutes, is amended to read:

15-353 . Responsibilities of principals

The principal of every school offering instruction in preschool programs, kindergarten programs or any combination of grades one through twelve is responsible for:

1. Providing leadership for the school.

2. Implementing the goals and the strategic plan of the school.

3. Serving as the administrator of the school.

4. Distributing a parental satisfaction survey to the parent of every child enrolled at the school. The parental satisfaction survey shall be distributed at least once each year and shall be distributed as part of the regular parent communication correspondence.

5. DEVELOPING A QUESTIONNAIRE TO BE DISTRIBUTED TO THE PARENTS OF PUPILS ENROLLED AT THE SCHOOL THAT CONTAINS AT LEAST THE FOLLOWING QUESTIONS AND THAT ALLOWS PARENTS TO PROVIDE BRIEF WRITTEN EXPLANATIONS FOR THEIR ANSWERS:

( a ) "WOULD CHARACTER EDUCATION BENEFIT YOUR CHILD IN HIS OR HER INSTRUCTIONAL COURSE WORK?"

( b ) "HOW MUCH TIME DO YOU THINK SHOULD BE ALLOCATED TO CHARACTER EDUCATION IN EACH INSTRUCTIONAL DAY?"

( c ) "WHAT DO YOU FEEL IS A REASONABLE COST PER STUDENT IN ORDER TO PROVIDE CHARACTER EDUCATION IN THE SCHOOL'S CURRICULUM?"

( d ) "WOULD YOU BE WILLING TO ENCOURAGE LOCAL BUSINESSES TO CONTRIBUTE TO THE COST OF PROVIDING CHARACTER EDUCATION AT YOUR CHILD'S SCHOOL?"

( e ) IN ADDITION TO FORMAL CLASSROOM INSTRUCTION OF CHARACTER EDUCATION, WOULD YOU BE WILLING TO ASSIST YOUR CHILD WITH CHARACTER EDUCATION AT HOME IF MATERIALS WERE PROVIDED BY THE SCHOOL?"

6. ENCOURAGING PARENTS TO REVIEW THE "CHARACTER COUNTS" AND "CHARACTER FIRST!" EDUCATION SERIES IN MATERIALS DISTRIBUTED WITH THE QUESTIONNAIRE DISTRIBUTED PURSUANT TO PARAGRAPH 5.

7. COMPILING THE RESULTS OF THE DATA COLLECTED FROM THE QUESTIONNAIRES DISTRIBUTED PURSUANT TO PARAGRAPH 5 INTO AN ANNUAL REPORT BY MARCH 1. THE PRINCIPAL SHALL SUBMIT AN ORAL SUMMARY OF THE REPORT TO THE SCHOOL DISTRICT GOVERNING BOARD BY APRIL 1 OF EACH YEAR AND SHALL SUBMIT A WRITTEN REPORT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE BY APRIL 1 OF EACH YEAR.

Sec. 4. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1089.02, to read:

43-1089.02 . Credit for contribution for character education

A. IN THE CASE OF A TAXPAYER WHO IS A SOLE PROPRIETOR, A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER OF AN S CORPORATION, AS DEFINED IN SECTION 1361 OF THE INTERNAL REVENUE CODE, A CREDIT IS ALLOWED AGAINST THE TAXES IMPOSED BY THIS TITLE FOR VOLUNTARY CASH CONTRIBUTIONS MADE BY THE BUSINESS DURING THE TAXABLE YEAR TO SCHOOL DISTRICTS OR TO CHARTER, PRIVATE OR HOME SCHOOLS FOR THE SUPPORT OF CHARACTER EDUCATION IN THE SCHOOL CURRICULUM. IN ORDER TO QUALIFY FOR THE CREDIT PROVIDED IN THIS SECTION, THE CHARACTER EDUCATION CURRICULUM SHALL BE APPROVED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION, SHALL BE SECULAR IN NATURE AND SHALL STRESS THE IMPORTANCE OF CHARACTER QUALITIES SUCH AS ATTENTIVENESS, PATIENCE AND INITIATIVE.

B. THE AMOUNT OF THE CREDIT IS THE LESSER OF:

1. ONE HUNDRED DOLLARS.

2. THE AMOUNT OF THE CONTRIBUTION.

3. THE TAXPAYER'S TAX LIABILITY UNDER THIS TITLE, AFTER SUBTRACTING ALL OTHER ALLOWABLE CREDITS. THE CREDIT UNDER THIS SECTION IS NOT REFUNDABLE AND MAY NOT BE CARRIED FORWARD TO SUBSEQUENT TAXABLE YEARS.

C. THE CREDIT UNDER THIS SECTION IS IN LIEU OF A DEDUCTION PURSUANT TO SECTION 170 OF THE INTERNAL REVENUE CODE AND TAKEN FOR STATE TAX PURPOSES.

D. CO-OWNERS OF THE BUSINESS MAY EACH CLAIM ONLY THE PRO RATA SHARE OF THE CREDIT ALLOWED UNDER THIS SECTION BASED ON THE OWNERSHIP INTEREST. THE TOTAL OF THE CREDITS ALLOWED ALL SUCH OWNERS MAY NOT EXCEED THE AMOUNT THAT WOULD HAVE BEEN ALLOWED A SOLE OWNER.

Sec. 5. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1179, to read:

43-1179 . Credit for contribution for character education

A. A CREDIT IS ALLOWED AGAINST THE TAXES IMPOSED BY THIS TITLE FOR VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO SCHOOL DISTRICTS OR TO CHARTER, PRIVATE OR HOME SCHOOLS FOR THE SUPPORT OF CHARACTER EDUCATION IN THE SCHOOL CURRICULUM. IN ORDER TO QUALIFY FOR THE CREDIT PROVIDED IN THIS SECTION, THE CHARACTER EDUCATION CURRICULUM SHALL BE APPROVED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION, SHALL BE SECULAR IN NATURE AND SHALL STRESS THE IMPORTANCE OF CHARACTER QUALITIES SUCH AS ATTENTIVENESS, PATIENCE AND INITIATIVE.

B. THE AMOUNT OF THE CREDIT IS THE LESSER OF:

1. ONE THOUSAND DOLLARS IF ARIZONA TAXABLE INCOME IS FIVE HUNDRED THOUSAND DOLLARS OR MORE, FIVE HUNDRED DOLLARS IF ARIZONA TAXABLE INCOME IS LESS THAN FIVE HUNDRED THOUSAND DOLLARS BUT MORE THAN ONE HUNDRED THOUSAND DOLLARS OR ONE HUNDRED DOLLARS IF ARIZONA TAXABLE INCOME IS ONE HUNDRED THOUSAND DOLLARS OR LESS.

2. THE AMOUNT OF THE CONTRIBUTION.

3. THE TAXPAYER'S TAX LIABILITY UNDER THIS TITLE, AFTER SUBTRACTING ALL OTHER ALLOWABLE CREDITS. THE CREDIT UNDER THIS SECTION IS NOT REFUNDABLE AND MAY NOT BE CARRIED FORWARD TO SUBSEQUENT TAXABLE YEARS.

C. THE CREDIT UNDER THIS SECTION IS IN LIEU OF A DEDUCTION PURSUANT TO SECTION 170 OF THE INTERNAL REVENUE CODE AND TAKEN FOR STATE TAX PURPOSES.

D. CO-OWNERS OF THE BUSINESS, INCLUDING CORPORATE PARTNERS OF A PARTNERSHIP, MAY EACH CLAIM ONLY THE PRO RATA SHARE OF THE CREDIT ALLOWED UNDER THIS SECTION BASED ON THE OWNERSHIP INTEREST. THE TOTAL OF THE CREDITS ALLOWED ALL SUCH OWNERS MAY NOT EXCEED THE AMOUNT THAT WOULD HAVE BEEN ALLOWED A SOLE OWNER.

Sec. 6. Effective date

Sections 43-1089.02 and 43-1179, Arizona Revised Statutes, as added by this act, are effective and apply to taxable years beginning from and after December 31, 1999.