Bill Text: AZ HB2707 | 2012 | Fiftieth Legislature 2nd Regular | Chaptered
Bill Title: Schools; ADM overstatement; repayment
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2012-05-11 - Governor Signed [HB2707 Detail]
Download: Arizona-2012-HB2707-Chaptered.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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CHAPTER 340
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HOUSE BILL 2707 |
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AN ACT
Allowing school districts to correct overstatements of average daily membership and budget overexpenditures.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. School district overstatements of average daily membership; correction; interest
A. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that overstated its average daily membership during fiscal years 2006‑2007, 2007‑2008 and 2008‑2009 shall be required to correct the overstatement over a three‑year period beginning in fiscal year 2013-2014 and ending in fiscal year 2015‑2016. The repayment amount shall be paid in equal installments in each of the three fiscal years. This subsection applies to a school district if all of the following conditions exist:
1. The school district is a unified school district that is located in a county that shares a border with Mexico.
2. The school district's average daily membership for the 2010-2011 school year was less than four hundred fifty pupils.
3. The overstatement was the result of the school district counting students in its average daily membership that were not eligible to be included in the school district's average daily membership, as reflected by an audit published by the department of education in May 2010.
4. The total amount of the overstatement, as reflected in a settlement agreement executed between the school district and the department of education, is more than five hundred thousand dollars but less than seven hundred thousand dollars.
B. In addition to monies required to be repaid pursuant to subsection A of this section, accrued interest must be paid at a rate determined by the superintendent of public instruction.
C. The governing board of a school district to which this section applies shall adopt a formal resolution to comply with this section and, if requested by the department of education, submit to annual average daily membership audits.
Sec. 2. School district budget overexpenditures; correction; interest
A. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that overexpended its budget during fiscal years 2009‑2010 and 2010‑2011 shall be required to correct the overexpenditure over a five‑year period beginning in fiscal year 2011-2012 and ending in fiscal year 2015‑2016. The repayment amount shall be paid in equal installments in each of the five fiscal years. This subsection applies to a school district if all of the following conditions exist:
1. The school district is a unified school district that had a total net assessed value of more than $13,531,600 but less than $13,531,700 on a full cash value basis for tax year 2011 according to the state and county 2011 abstract of the assessment roll published by the department of revenue.
2. The school district's average daily membership for the 2010-2011 school year was less than one hundred pupils.
3. The total amount of the correction that would otherwise be required for fiscal year 2011‑2012 under section 15‑915, Arizona Revised Statutes, is more than one hundred ninety thousand dollars but less than two hundred fifty thousand dollars.
B. In addition to monies required to be repaid pursuant to subsection A of this section, accrued interest must be paid at a rate determined by the superintendent of public instruction.
Sec. 3. School district budget overexpenditures; interest; correction
A. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that overexpended its budget during fiscal year 2003-2004 shall be required to correct this overexpenditure plus any overexpenditures for fiscal years 2004-2005 through 2011-2012 by reducing its budget capacity over a nine‑year period beginning in fiscal year 2011-2012 and ending in fiscal year 2019‑2020. The annual installments shall be one hundred thousand dollars for fiscal year 2011‑2012 and twelve and one‑half per cent of the remaining total required reduction for fiscal years 2012‑2013 through 2019‑2020. This subsection applies to a school district if all of the following conditions exist:
1. The school district is a unified school district that is located on an Indian reservation.
2. The school district is currently in receivership pursuant to section 15‑103, Arizona Revised Statutes.
3. The school district's average daily membership for the 2010-2011 school year was more than two hundred seventy pupils but less than two hundred eighty pupils.
4. The total amount of the correction that would otherwise be required under section 15-915, Arizona Revised Statutes, excluding interest, is more than five hundred thousand dollars but less than one million one hundred thousand dollars.
B. Notwithstanding any other law, the department of education shall also reduce the state aid that would otherwise be due a school district that meets the criteria specified in subsection A of this section by one hundred thousand dollars for fiscal year 2011-2012 and twenty‑five per cent of the remaining total each fiscal year over a four‑year period beginning in fiscal year 2012‑2013 and ending in fiscal year 2015‑2016.
C. In addition to monies required to be repaid pursuant to subsection B of this section, accrued interest must be paid at a rate determined by the superintendent of public instruction.
Sec. 4. Emergency
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 MAY 11, 2012.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 14, 2012.
