Bill Text: AZ SB1339 | 2013 | Fifty-first Legislature 1st Regular | Introduced
Bill Title: Schools; overrides; ballot language
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-02-05 - Referred to Senate ED Committee [SB1339 Detail]
Download: Arizona-2013-SB1339-Introduced.html
|
REFERENCE TITLE: schools; overrides; ballot language |
|
State of Arizona Senate Fifty-first Legislature First Regular Session 2013
|
|
SB 1339 |
|
|
|
Introduced by Senators Bradley, Lopez
|
AN ACT
amending sections 15‑302, 15‑342, 15‑448, 15‑450, 15‑458, 15‑459, 15‑481, 15‑482, 15‑491, 15‑503, 15‑511, 15‑903, 15-905.01, 15‑947, 15‑949, 15‑996, 15‑1102, 15‑1461.01, 15‑2011 and 15‑2104, Arizona Revised Statutes; relating to school district elections.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-302, Arizona Revised Statutes, is amended to read:
15-302. Powers and duties
A. The county school superintendent shall:
1. Distribute all laws, reports, circulars, instructions and forms that he may receive for the use of school officers.
2. Record all official acts.
3. Appoint governing board members of school districts to fill all vacancies, but the term of the appointment shall be until the next regular election for governing board members, at which time a successor shall be elected to serve the unexpired portion of the term. Within thirty days after notification of a vacancy, the school district governing board may submit up to three names to the county school superintendent for consideration of an appointment to fill the vacancy. The county school superintendent is not required to appoint a governing board member from the list of names submitted by the governing board. The county school superintendent, if he deems it in the best interest of the community, may call a special election to fill the vacancies. If an election is called, the newly elected member shall serve for the remainder of the unexpired portion of the term.
4. Make reports, when directed by the superintendent of public instruction, showing matters relating to schools in his county as may be required on the forms furnished by the superintendent of public instruction.
5. Have such powers and perform such duties as otherwise prescribed by law.
6. On or before October 1 of each year, make a report to the superintendent of public instruction showing the amount of monies received from state school funds, special school district taxes and other sources, the total expenditures for school purposes and the balance on hand to the credit of each school district at the close of the school year.
7. Contract with the board of supervisors for the board of supervisors to conduct all regular school district elections.
8. Be responsible, in cooperation with the governing boards and the board of supervisors, for all special school district elections.
9. Maintain teacher and administrator certification records of effective dates and expiration dates of teachers' and administrators' certificates in compliance with guidelines prescribed in the uniform system of financial records for those school districts for which the county school superintendent is the fiscal agent. The county school superintendent shall not draw a warrant in payment of a teacher's, substitute teacher's or administrator's salary unless the teacher, substitute teacher or administrator is legally certified during the fiscal year in which the term for payment is demanded.
10. Notify a school district three years before the expiration of a revenue control limit override budget request that the school district's budget must be adjusted in the final two years of the override budget request pursuant to section 15‑481, subsections P and Q, if the voters do not approve another override budget request.
11. In collaboration with the department of education and other state agencies, provide assistance to school districts and charter schools on the use of student data, staff development, curriculum alignment and technology to improve student performance.
12. Assist schools in meeting yearly adequate progress goals as defined by criteria established by the state board of education and implemented by the department of education.
B. At the request of school districts and charter schools, the county school superintendent may provide discretionary programs in addition to the programs prescribed in subsection A of this section.
C. The county school superintendent may provide the services prescribed in subsections A and B of this section in the county or jointly with two or more counties pursuant to title 11, chapter 7, article 3.
D. Each county school superintendent may establish an advisory committee to the office of the county school superintendent.
Sec. 2. Section 15-342, Arizona Revised Statutes, is amended to read:
15-342. Discretionary powers
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 representatives of the superintendent or principal 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 that the board determines are necessary for the operation of the school.
7. Sell or lease to the state, a county, a city, another school district or a tribal government agency 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 7.
10. Subject to chapter 16 of this title, 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 a vote of the school district electors in an election called by the governing board as provided in section 15‑491, except that authorization by the school district electors in an election is not required if one of the following requirements is met:
(a) The market value of the school property is less than fifty thousand dollars or the property is procured through a renewable energy development agreement, an energy performance contract, which among other items includes a renewable energy power service agreement, or a simplified energy performance contract pursuant to section 15‑213.01.
(b) The buildings and sites are completely funded with monies distributed by the school facilities board.
(c) The transaction involves the sale of improved or unimproved property pursuant to an agreement with the school facilities board in which the school district agrees to sell the improved or unimproved property and transfer the proceeds of the sale to the school facilities board in exchange for monies from the school facilities board for the acquisition of a more suitable school site. For a sale of property acquired by a school district prior to July 9, 1998, a school district shall transfer to the school facilities board that portion of the proceeds that equals the cost of the acquisition of a more suitable school site. If there are any remaining proceeds after the transfer of monies to the school facilities board, a school district shall only use those remaining proceeds for future land purchases approved by the school facilities board, or for capital improvements not funded by the school facilities board for any existing or future facility.
(d) The transaction involves the sale of improved or unimproved property pursuant to a formally adopted plan and the school district uses the proceeds of this sale to purchase other property that will be used for similar purposes as the property that was originally sold, provided that the sale proceeds of the improved or unimproved property are used within two years after the date of the original sale to purchase the replacement property. If the sale proceeds of the improved or unimproved property are not used within two years after the date of the original sale to purchase replacement property, the sale proceeds shall be used towards payment of any outstanding bonded indebtedness. If any sale proceeds remain after paying for outstanding bonded indebtedness, or if the district has no outstanding bonded indebtedness, sale proceeds shall be used to reduce the district's primary tax levy. A school district shall not use this subdivision unless all of the following conditions exist:
(i) The school district is the sole owner of the improved or unimproved property that the school district intends to sell.
(ii) The school district did not purchase the improved or unimproved property that the school district intends to sell with monies that were distributed pursuant to chapter 16 of this title.
(iii) The transaction does not violate section 15‑341, subsection G.
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. The pupil has the burden of proof to overturn the decision of a teacher to promote, retain, pass or fail the pupil. In order to sustain the burden of proof, the pupil shall demonstrate to the governing board that the pupil has mastered the academic standards adopted by the state board of education pursuant to sections 15‑701 and 15‑701.01. If the governing board overturns the decision of a teacher pursuant to this paragraph, the governing board shall adopt a written finding that the pupil has mastered the academic standards. 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. Intergovernmental agreements and contracts between school districts or between a school district and other governing bodies as provided in section 11‑952 are exempt from competitive bidding under the procurement rules adopted by the state board of education pursuant to section 15‑213.
14. Include in the curricula it prescribes for high schools in the school district career and technical education, vocational education and technology education programs and career and technical, vocational and technology 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 career and technical, vocational and technology education as provided in section 15‑789.
15. Suspend a teacher or administrator from the teacher's or administrator's 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 21 and 22.
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 that 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, educational equipment and furnishings to nonprofit community organizations where the governing board determines that the anticipated cost of selling the learning materials, educational equipment or furnishings 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 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, safety or welfare of pupils or when the governing board determines that the exchange is based on sound business principles for either:
(a) Unimproved or improved property of equal or greater value.
(b) Unimproved property that the owner contracts to improve if the value of the property ultimately received by the school district is of equal or greater value.
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 that supplements the education program of the school, whether offered before, during or after regular school hours.
25. Notwithstanding section 15‑341, subsection A, paragraphs 7 and 9, construct school buildings and purchase or lease 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) Monies in the unrestricted capital outlay fund, except that the estimated cost shall not exceed two hundred fifty thousand dollars for a district that utilizes section 15‑949.
(b) Monies distributed from the school facilities board established by section 15‑2001.
(c) Monies specifically donated for the purpose of constructing school buildings.
This paragraph shall not be construed to eliminate the requirement for an election to raise revenues for a capital outlay override budget request 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. Unless otherwise prohibited by law, sell advertising as follows:
(a) Advertisements shall be age appropriate and not contain promotion of any substance that is illegal for minors such as alcohol, tobacco and drugs or gambling. Advertisements shall comply with the state sex education policy of abstinence.
(b) Advertising approved by the governing board for the exterior of school buses 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) The school district shall establish an advertisement fund that is composed of revenues from the sale of advertising. The monies in an advertisement fund are not subject to reversion.
28. Assess reasonable damage deposits to pupils in grades seven through twelve for the use of textbooks, musical instruments, band uniforms or other equipment required for academic courses. The governing board shall adopt policies on any damage deposits assessed pursuant to this paragraph at a public meeting called for this purpose after providing notice to all parents of pupils in grades seven through twelve in the school district. Principals of individual schools within the district may waive the damage deposit requirement for any textbook or other item if the payment of the damage deposit would create an economic hardship for the pupil. The school district shall return the full amount of the damage deposit for any textbook or other item if the pupil returns the textbook or other item in reasonably good condition within the time period prescribed by the governing board. For the purposes of this paragraph, "in reasonably good condition" means the textbook or other item is in the same or a similar condition as it was when the pupil received it, plus ordinary wear and tear.
29. Notwithstanding section 15‑1105, expend surplus monies in the civic center school fund for maintenance and operations or unrestricted capital outlay, if sufficient monies are available in the fund after meeting the needs of programs established pursuant to section 15‑1105.
30. Notwithstanding section 15‑1143, expend surplus monies in the community school program fund for maintenance and operations or unrestricted capital outlay, if sufficient monies are available in the fund after meeting the needs of programs established pursuant to section 15‑1142.
31. Adopt guidelines for standardization of the format of the school report cards required by section 15‑746 for schools within the district.
32. Adopt policies that require parental notification when a law enforcement officer interviews a pupil on school grounds. Policies adopted pursuant to this paragraph shall not impede a peace officer from the performance of the peace officer's duties. If the school district governing board adopts a policy that requires parental notification:
(a) The policy may provide reasonable exceptions to the parental notification requirement.
(b) The policy shall set forth whether and under what circumstances a parent may be present when a law enforcement officer interviews the pupil, including reasonable exceptions to the circumstances under which a parent may be present when a law enforcement officer interviews the pupil, and shall specify a reasonable maximum time after a parent is notified that an interview of a pupil by a law enforcement officer may be delayed to allow the parent to be present.
33. Enter into voluntary partnerships with any party to finance with funds other than school district funds and cooperatively design school facilities that comply with the adequacy standards prescribed in section 15‑2011 and the square footage per pupil requirements pursuant to section 15‑2041, subsection D, paragraph 3, subdivision (b). The design plans and location of any such school facility shall be submitted to the school facilities board for approval pursuant to section 15‑2041, subsection 0. If the school facilities board approves the design plans and location of any such school facility, the party in partnership with the school district may cause to be constructed and the district may begin operating the school facility before monies are distributed from the school facilities board pursuant to section 15‑2041. Monies distributed from the new school facilities fund to a school district in a partnership with another party to finance and design the school facility shall be paid to the school district pursuant to section 15‑2041. The school district shall reimburse the party in partnership with the school district from the monies paid to the school district pursuant to section 15‑2041, in accordance with the voluntary partnership agreement. Before the school facilities board distributes any monies pursuant to this subsection, the school district shall demonstrate to the school facilities board that the facilities to be funded pursuant to section 15‑2041, subsection O meet the minimum adequacy standards prescribed in section 15‑2011. If the cost to construct the school facility exceeds the amount that the school district receives from the new school facilities fund, the partnership agreement between the school district and the other party shall specify that, except as otherwise provided by the other party, any such excess costs shall be the responsibility of the school district. The school district governing board shall adopt a resolution in a public meeting that an analysis has been conducted on the prospective effects of the decision to operate a new school with existing monies from the school district's maintenance and operations budget and how this decision may affect other schools in the school district. If a school district acquires land by donation at an appropriate school site approved by the school facilities board and a school facility is financed and built on the land pursuant to this paragraph, the school facilities board shall distribute an amount equal to twenty per cent of the fair market value of the land 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 budget limit by the amount of the monies placed in the fund. Monies distributed under this paragraph shall be distributed from the new school facilities fund pursuant to section 15-2041. If a school district acquires land by donation at an appropriate school site approved by the school facilities board and a school facility is financed and built on the land pursuant to this paragraph, the school district shall not receive monies from the school facilities board for the donation of real property pursuant to section 15-2041, subsection F. It is unlawful for:
(a) A county, city or town to require as a condition of any land use approval that a landowner or landowners that entered into a partnership pursuant to this paragraph provide any contribution, donation or gift, other than a site donation, to a school district. This subdivision only applies to the property in the voluntary partnership agreement pursuant to this paragraph.
(b) A county, city or town to require as a condition of any land use approval that the landowner or landowners located within the geographic boundaries of the school subject to the voluntary partnership pursuant to this paragraph provide any donation or gift to the school district except as provided in the voluntary partnership agreement pursuant to this paragraph.
(c) A community facilities district established pursuant to title 48, chapter 4, article 6 to be used for reimbursement of financing the construction of a school pursuant to this paragraph.
(d) A school district to enter into an agreement pursuant to this paragraph with any party other than a master planned community party. Any land area consisting of at least three hundred twenty acres that is the subject of a development agreement with a county, city or town entered into pursuant to section 9‑500.05 or 11‑1101 shall be deemed to be a master planned community. For the purposes of this subdivision, "master planned community" means a land area consisting of at least three hundred twenty acres, which may be noncontiguous, that is the subject of a zoning ordinance approved by the governing body of the county, city or town in which the land is located that establishes the use of the land area as a planned area development or district, planned community development or district, planned unit development or district or other land use category or district that is recognized in the local ordinance of such county, city or town and that specifies the use of such land is for a master planned development.
34. Enter into an intergovernmental agreement with a presiding judge of the juvenile court to implement a law related education program as defined in section 15‑154. The presiding judge of the juvenile court may assign juvenile probation officers to participate in a law related education program in any school district in the county. The cost of juvenile probation officers who participate in the program implemented pursuant to this paragraph shall be funded by the school district.
35. Offer to sell outdated learning materials, educational equipment or furnishings at a posted price commensurate with the value of the items to pupils who are currently enrolled in that school district before those materials are offered for public sale.
36. If the school district is a small school district as defined in section 15‑901, and if permitted by federal law, opt out of federal grant opportunities if the governing board determines that the federal requirements impose unduly burdensome reporting requirements.
Sec. 3. Section 15-448, Arizona Revised Statutes, is amended to read:
15-448. Formation of unified school district; board membership; budget
A. One or more common school districts and a high school district with coterminous or overlapping boundaries may establish a unified school district pursuant to this section. Unification of a common school district and a high school district is not authorized by this section if any of the high school facilities owned by the new unified school district would not be located within its boundaries.
B. Formation of a unified school district shall be by resolutions approved by the governing boards of the unifying school districts and certification of approval by such governing boards to the county school superintendent of the county or counties in which such individual school districts are located. A common school district and high school district that unify pursuant to this section shall not exclude from the same unification a common school district that has overlapping boundaries with the high school district and that wishes to unify. The formation of a unified school district shall become effective on July 1 of the next fiscal year following the certification of the county school superintendent. An election shall not be required to form a unified school district pursuant to this section. At least ninety days before the governing boards vote on the resolutions prescribed in this subsection, the governing boards shall mail a pamphlet to each household with one or more qualified electors that shall list the full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed unification for each of the following:
1. An owner occupied residence whose assessed valuation is the average assessed valuation of property classified as class three, as prescribed by section 42‑12003 for the current year in the school district.
2. An owner occupied residence whose assessed valuation is one-half of the assessed valuation of the residence in paragraph 1 of this subsection.
3. An owner occupied residence whose assessed valuation is twice the assessed valuation of the residence in paragraph 1 of this subsection.
4. A business whose assessed valuation is the average of the assessed valuation of property classified as class one, as prescribed by section 42‑12001, paragraphs 12 and 13 for the current year in the school district.
C. The boundaries of the unified school district shall be the boundaries of the former common school district or districts that unify. The boundaries of the common school district or districts that are not unifying remain unchanged. The county school superintendent, immediately upon receipt of the approved resolutions prescribed by subsection B of this section, shall file with the board of supervisors, the county assessor and the superintendent of public instruction a transcript of the boundaries of the unified school district. The boundaries shown in the transcript shall become the legal boundaries of the school districts on July 1 of the next fiscal year.
D. On formation of the unified school district, the governing board consists of the members of the former school district governing boards and the members shall hold office until January 1 following the first general election after formation of the district.
E. Beginning on January 1 following the first general election after formation of the unified school district, the governing board shall have five members. At the first general election after the formation of the district, members shall be elected in the following manner:
1. The three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.
2. The two candidates receiving the fourth and fifth highest number of votes shall be elected to two year terms. Thereafter all offices shall have four year terms.
F. The new unified school district may appoint a resident of the remaining common school district to serve as a nonvoting member of the governing board to represent the interests of the high school pupils who reside in the remaining common school district and who attend school in the unified school district.
G. For the first year of operation, the unified school district governing board shall prepare a consolidated budget based on the student counts from the school districts comprising the unified school district, except that for purposes of determining budget amounts and equalization assistance, the student count for the former high school district shall not include the prior year average daily membership attributable to high school pupils from a common school district that was part of the former high school district but is not part of the unified school district. The unified school district shall charge the remaining common school district tuition for these pupils as provided in subsection J of this section. The unified school district may budget for unification assistance pursuant to section 15‑912.01.
H. The governing board of the unified school district shall prepare policies, curricula and budgets for the district. These policies shall require that:
1. The base compensation of each certificated teacher for the first year of operation of the new unified school district shall not be lower than the certificated teacher's base compensation for the prior year in the previously existing school districts.
2. The certificated teacher's years of employment in the previously existing school districts shall be included in determining the teacher's certificated years of employment in the new unified school district.
I. Upon formation of a unified school district, any existing override budget request authorization of the former high school district and the former common school district or districts shall continue until expiration based on the revenue control limit of the school district or districts that had override budget request authorization prior to unification. The unified school district may request new override budget request authorization for the budget year as provided in section 15‑481 based on the combined revenue control limit of the new district after unification. If the unified school district's request for override budget request authorization is approved, it will replace any existing override budget request for the budget year.
J. The unified school district shall admit high school pupils who reside in a common school district that was located within the boundaries of the former high school district. Tuition shall be paid to the unified school district by the common school district in which such pupils reside. Such tuition amount shall be calculated in accordance with section 15‑824, subject to the following modifications:
1. If the former high school district had outstanding bonded indebtedness at the time of unification, the combined tuition for the group of high school pupils who reside in each common school district shall include a debt service amount for the former high school district's outstanding bonded indebtedness that is determined as follows:
(a) Divide the total secondary assessed valuation of the common school district in which the group of pupils resides by the total secondary assessed valuation of the former high school district. For the purposes of this subdivision, "secondary assessed valuation" means secondary assessed valuation for the tax year prior to the year when the unification occurs and includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.
(b) Multiply the quotient obtained in subdivision (a) of this paragraph by the unified school district's annual debt service expenditure.
2. The debt service portion of such tuition payments calculated pursuant to paragraph 1 of this subsection shall be used exclusively for debt service of the outstanding bonded indebtedness of the former high school district. When such indebtedness is fully extinguished, the debt service portion of a pupil's tuition shall be determined in accordance with paragraph 3 of this subsection.
3. If the former high school district had no outstanding bonded indebtedness at the time of unification, the tuition calculation shall include the actual school district expenditures for the portion of any debt service of the unified school district that pertains to any construction or renovation of high school facilities divided by the school district's student count for the high school portion of the school district.
4. The unified school district shall not include in the tuition calculation any debt service that pertains to any construction or renovation of school facilities for preschool through grade eight.
5. Notwithstanding section 15‑951, subsection G, the revenue control limit of the common school district shall include the full amount of the debt service portion of the tuition calculated pursuant to this subsection.
K. All assets and liabilities of the unifying school districts shall be transferred and assumed by the new unified school district. Any existing bonded indebtedness of a common school district or a high school district unifying pursuant to this section shall be assumed by the new unified school district and shall be regarded as an indebtedness of the new unified school district for the purpose of determining the debt incurring authority of the district. Taxes for the payment of such bonded indebtedness shall be levied on all taxable property in the new unified school district, but nothing in this subsection shall be construed to relieve from liability to taxation for the payment of all taxable property of the former high school district if necessary to prevent a default in the payment of any bonded indebtedness of the former high school district. The residents of a common school district that does not unify shall not vote in bond or override budget request elections of the unified school district and shall not be assessed taxes as a result of a bond or override budget request election of the unified school district.
L. If the remaining common school district had authorization for an override operating a budget request as provided in section 15‑481 or 15‑482, the override budget request authorization continues for the remaining common school district or districts in the same manner as before the formation of the unified school district.
M. The bonding authorization and bonding limitations continue for the remaining common school district or districts in the same manner as before the formation of the unified school district.
N. Nothing in this section shall be construed to relieve a school district formed pursuant to section 15‑457 or 15‑458 of its liability for any outstanding bonded indebtedness.
0. For school districts that become unified after July 1, 2004 and where all of the common schools were eligible for the small school district weight pursuant to section 15‑943, paragraph 1, subdivision (a) when computing their base support level and base revenue control limit before unification, the unified school district may continue to use the small school district weight as follows:
1. Annually determine the common school student count and the weighted student count pursuant to section 15‑943, paragraph 1, subdivision (a) for each common school district before unification.
2. Calculate the sum of the common school districts' student counts and weighted student counts determined in paragraph 1 of this subsection.
3. Divide the sum of the weighted student counts by the sum of the student counts determined in paragraph 2 of this subsection.
4. The amount determined in paragraph 3 of this subsection shall be the weight for the common schools in the unified school district.
P. A unified school district may calculate its revenue control limit and district support level by using subsection O of this section as follows:
1. Determine the number of individual school districts that existed before unification into a single school district.
2. Multiply the amount determined in paragraph 1 of this subsection by six hundred.
3. Multiply the amount determined in paragraph 2 of this subsection by 0.80.
4. If the amount determined in paragraph 3 of this subsection exceeds the student count of the unified school district, the unified school district is eligible to use subsection O of this section.
Q. Subsections O and P of this section shall remain in effect until the aggregate student count of the common school districts before unification exceeds the aggregate number of students of the common school districts before unification authorized to utilize section 15‑943, paragraph 1, subdivision (a).
Sec. 4. Section 15-450, Arizona Revised Statutes, is amended to read:
15-450. Formation of a new joint unified school district; petition; report; election; notice; ballots; canvass of votes; appointment of governing board
A. Notwithstanding any other statute, a new joint unified school district may be formed if the formation is approved by the state board of education and if the following requirements are met:
1. The boundaries of the proposed new joint unified school district include an incorporated city that is divided by two counties.
2. The proposed new joint unified school district includes territory within the boundaries of two or more existing school districts.
3. The proposed new joint unified school district would have a student count of not less than six hundred.
4. A high school is not located within the boundaries of the proposed new joint unified school district.
5. The assessed valuation of the proposed school district is at least two million dollars.
6. The governing boards of the districts affected have been given notice of the proposed change and an opportunity to be heard pursuant to section 15‑442, subsection B.
B. If it is desired that a new joint unified school district be formed pursuant to the provisions of this section, ten per cent or more of the qualified electors residing within the boundaries of the proposed joint unified school district shall file petitions with the county school superintendents of the counties in which the territory of the proposed district is situated. The petitions shall describe the territory to be included in the proposed joint unified school district and shall request that the formation of the proposed district be submitted to the qualified electors who reside within the proposed district.
C. Each county school superintendent with whom petitions for the formation of a joint unified school district are filed shall examine the petitions within fifteen days of the date of receipt to determine their sufficiency, including the adequacy of the signatures from the portion of the proposed district within his county. If the petitions are found sufficient, the county school superintendent shall transmit the petitions to the state board of education.
D. The state board of education shall promptly schedule a review of the issue of the formation of the proposed joint unified school district after receiving the petitions from the county school superintendents pursuant to subsection C of this section. The board shall approve or reject the formation of the proposed joint unified school district within sixty days of the date of receipt of the petitions. The board shall consider:
1. Operational costs of the existing and proposed districts.
2. Travel times and distances.
3. Climatic conditions.
4. Local terrain.
5. The number of pupils.
6. The fairness and appropriateness of any redistribution of taxable wealth from an existing school district to a proposed joint unified school district.
7. Whether the assessed valuation of the proposed joint unified school district is sufficient to support the district in a manner comparable to other districts of similar size.
If the state board after considering all such factors determines that the proposed new district will not cause an undue adverse effect on the operations of any existing school district, jeopardize the operation of the proposed joint common school district or cause a disproportionate amount of taxable wealth to be redistributed, it shall approve the petitions and return them to the respective county school superintendents.
E. On approval from the state board of education, the county school superintendent of each county whose territory or a portion of whose territory will be included in the proposed joint unified school district shall submit the question of the formation of the proposed joint unified school district to the voters at a general election or at a special election to be held for that purpose. If no general election is scheduled to be held within sixty days after the date the county school superintendent receives the approved petitions from the state board of education, he shall promptly call a special election to be held within sixty days after receipt of the approved petitions. Notice of the election shall be given by the county school superintendent to the boards of supervisors. At least ten days before the election, the county school superintendent shall cause notice of the proposed election to be posted in not less than three public places in the proposed district and to be published at least once in a newspaper of general circulation in the proposed district. The notice shall state the following:
1. The question to be voted on and the boundaries of the proposed joint unified school district with sufficient definiteness to make them readily ascertainable.
2. A description of voter qualifications, including requirements that the voters shall be residents of the proposed district.
3. The location of voting places within the proposed district, at least one of which shall be in each county.
F. Within ten days after the election, the county school superintendent and the chairman of the board of supervisors of each county shall canvass the vote. If a majority of the votes cast in each county of persons who reside within the proposed district favors favor formation of the proposed joint unified school district, the boards of supervisors shall jointly declare the election and the joint unified school district shall become operative from and after June 30 next following the election.
G. If the joint unified school district includes territory located in two or more counties, the county of jurisdiction is the county in which the largest number of qualified electors of the joint unified school district resides, except that if all of the existing school buildings are located in one county, that county is the county of jurisdiction. The county school superintendent of the jurisdictional county shall perform all duties for and with respect to the joint unified school district required to be performed by county school superintendents. The board of supervisors of the jurisdictional county shall perform all duties for and with respect to the joint unified school district required to be performed by boards of supervisors, except that school district taxes to be levied on property in the portion of the joint unified school district lying in another county shall be levied by the board of supervisors of the other county or counties and on receipt shall be transferred to the county of jurisdiction.
H. If a new joint unified school district is authorized, the governing boards of the existing school districts shall prepare a projected list of assets for the existing districts prior to the end of the fiscal year in which the election is held. The governing boards of the original school districts and the new joint unified school district shall prepare a final statement of assets for the formerly existing school districts as of the end of the fiscal year in which the election was held and shall have the statement of cash and bonded indebtedness certified by the county treasurers by August 30 of the year in which the new school district becomes operative. The governing boards of the original school districts and the new joint unified school district shall set aside sufficient assets or provide other means to satisfy the liabilities of the former existing districts except for bonded indebtedness and approve the final division of all assets by September 15 of the year in which the new school district becomes operative. If one or more of the governing boards fail to provide for satisfying the liabilities and fail to approve the division of assets by September 15, the county attorney or attorneys shall determine the means to satisfy the liabilities and final division of assets by October 1 of the fiscal year in which the new school district becomes operative.
I. The division of bonded indebtedness of the original school districts shall be in accordance with the provisions of section 15‑457, subsection B. In addition, any debt due to lease-purchase agreements shall be handled in a similar manner as outlined for bonded indebtedness in section 15‑457, subsection B.
J. Sections 15‑457, 15‑975 and 15‑997 apply to joint unified school districts formed under this section.
K. A joint unified school district shall not be formed if any of the resulting school districts would have a student count for the current year of less than six hundred.
L. The governing board of the joint unified school district shall prepare policies, curricula and budgets for the new school district. These policies shall require that:
1. The base salary of each teacher for the first year of operation of the new school district shall not be lower than the teacher's base salary for the prior year in the previously existing school district.
2. The teacher's years of employment in the previously existing school district shall be included in determining the teacher's years of employment in the new joint unified school district.
M. If a new joint unified school district is authorized, the governing board of a district that will have its boundaries reduced by creation of the new joint unified district may hold an override a budget request election for the year beginning July 1 after the election that authorized the formation of the new joint unified district. The governing board of a school district that will have its boundaries reduced by creation of the new joint unified district may hold a bond election for bonds applicable to and paid solely by the school district as it will exist after the formation of the new joint unified school district. Override budget request elections and bond elections under this subsection shall be held on the first Tuesday following the first Monday in November as prescribed by section 16-204. The electors who reside in an area that where property will not be subject to taxation for operation or payment of the bonds of the school district calling the override budget request or bond election after creation of the new joint unified school district are not eligible to vote in such an override a budget request or bond election.
Sec. 5. Section 15-458, Arizona Revised Statutes, is amended to read:
15-458. Formation of new district or districts by subdivision of existing district; division of assets
A. In a school district containing a student count of more than six hundred, a new school district or districts may be formed by a subdivision of the existing school district.
B. On the request of the governing board or on receipt of petitions bearing the signatures of at least ten per cent of the qualified electors in the area proposed to be a new school district or the signatures of at least fifty of the qualified electors in the area proposed to be a new school district, whichever is more, and at least ten per cent of the qualified electors in the area proposed to continue as the existing school district or at least fifty signatures of the qualified electors in the area proposed to continue as the existing school district, whichever is more, the county school superintendent shall within ten days call an election to determine if the existing school district should be divided and a new school district or districts formed, except that if the existing school district is a union high school district, the county school superintendent shall call the election only on the request of the governing boards of the union high school district and each of the common school districts comprising the union high school district or on receipt of petitions bearing the signatures of at least ten per cent of the qualified electors in each of the common school districts or at least fifty signatures of the qualified electors in each of the common school districts, whichever is more. This subsection does not require the submission of the signatures of more than fifty per cent of the qualified electors of the existing school district to the county school superintendent in order to call an election for the purposes of this section. The petition shall state the proposed boundaries of the school district or districts to be formed together with the student count, specific reasons why it is in the best interest of the current district residents to have a new district or districts formed and the amount of real property valuation within the school district or districts to be formed. No new school district may be formed unless the state board of education determines that the real property valuation per student count is sufficient to support the school district in a manner comparable to other school districts of similar size and that a sufficient number of pupils will exist in each of the new districts to ensure that educational programs and services will be of similar or better quality after the subdivision.
C. The election shall be held concurrently and as provided in section 15‑459, except that a majority of the votes cast by the qualified electors in each of the areas proposed as a school district must approve the division of the existing school district and the formation of the new school district.
D. The governing board of the existing school district shall prepare a projected list of assets for the existing district prior to the end of the fiscal year in which the election is held. The governing boards of the original and new school district or districts shall prepare a final statement of assets for the formerly existing school district as of the end of the fiscal year in which the election was held and shall have the statement of cash and bonded indebtedness certified by the county treasurer by August 30 of the year in which the new school district or districts become operative. The governing boards of the original school district and the new school district or districts shall set aside sufficient assets or provide other means to satisfy the liabilities of the former existing district except for bonded indebtedness and approve the final division of all assets by September 15 of the year in which the new school district or districts become operative. If one or more of the governing boards fail to provide for satisfying the liabilities and fail to approve the division of assets by September 15, the county attorney shall determine the means to satisfy the liabilities and final division of assets by October 1 of the fiscal year in which the new school district or districts become operative.
E. The division of the bonded indebtedness of the original school district shall be in accordance with the provisions of section 15‑457, subsection B.
F. An original or new school district formed by a subdivision of an existing school district or districts after June 30, 1992 is not eligible to determine its budget using the provisions of section 15‑949 or the support level weights prescribed in section 15‑943, paragraph 1. These districts are also not eligible to participate in a small district service program as prescribed in section 15‑365 or to apply to the state board of education for a capital levy adjustment as prescribed in section 15‑963.
G. If two or more common school districts are within the boundaries of a union high school district, two or more unified school districts may be formed by a subdivision of the existing union high school district and by unification with the common school districts as provided in this section, subject to the following provisions:
1. Formation of a unified school district pursuant to this subsection shall be initiated if a majority of the governing board members of each of the districts affected unites unite in a petition to the county school superintendent for the establishment of a unified school district or if ten per cent of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of the areas proposed to be the new unified school districts unite in a petition to the county school superintendent for the establishment of a unified school district. The petition shall include a statement of the proposed boundaries of the new unified school districts and shall request that the subdivision of the union high school district and formation of the unified districts be submitted to the qualified electors who reside within the proposed districts. The petition shall also include a detailed description of desegregation funding and expenses for the resulting school district as set forth in paragraph 7 of this subsection and may include the new school district name and other information as desirable. On receipt of the petitions, the county school superintendent shall examine the petitions within fifteen days of receipt to determine their sufficiency including the adequacy of the signatures of electors. If the petitions are found sufficient, the county school superintendent shall call an election to be held to determine the question. The county school superintendent shall prepare and the governing board shall distribute a subdivision and unification plan that includes:
(a) The proposed boundary changes.
(b) The impact of the proposed boundary changes, including where pupils will attend school, changes in pupil transportation services, changes in availability of special education services, changes in pupil‑teacher ratio and operational costs.
(c) If paragraph 7 of this subsection applies to one or more of the existing school districts, a detailed description of desegregation funding and expenses for the resulting school districts as set forth in paragraph 7 of this subsection.
(d) Any other information the county school superintendent deems appropriate to include.
2. If the governing boards or the petitioners wish the new districts to receive unification assistance as provided in section 15‑912.01, they shall notify the department of education and the joint legislative budget committee by August 1 of the fiscal year before the new districts would begin operation and provide the department and the joint legislative budget committee with information required to project the costs of unification assistance to the new districts for the first year of operation. The department shall include sufficient monies to cover these unification costs in its budget request for state aid for the following fiscal year.
3. The election shall be held as provided in section 15‑459, except that the ballot shall contain the words "subdivision and unification, yes" and "subdivision and unification, no", and there shall be one of the following two ballot questions, whichever is applicable, stated as follows:
(a) Should (insert the name of the district) union high school district be subdivided with boundaries identical to the boundaries of (insert the name of the districts) common school districts and simultaneously creating (insert the number of the districts) unified school districts with the respective common school districts as specified in the subdivision and unification plan?
(b) Should (insert the name of the district) union high school district be subdivided simultaneously with the subdivision of (insert the name of the districts) common school districts and simultaneously creating (insert the number of the districts) unified school districts with the subdivided common school districts as specified in the subdivision and unification plan?
4. If the formation of the new unified school districts is authorized, the terms of the governing board members of the common and union high school districts do not expire on the effective date of unification but continue until January 1 following the next general election, during which time the members of the governing boards of the previously existing school districts shall serve as the governing board of the new school district in which they reside. At the next general election held after the formation and thereafter, members shall be elected as prescribed in section 15‑448, subsection E. The governing boards of the new unified school districts shall prepare policies, curricula and budgets for the new unified school districts. The policies prepared by the governing boards shall include the provisions of section 15‑459, subsection M.
5. If the common school district is not subdivided, the new unified school district that includes the boundaries of the previously existing common school district shall assume the bonded indebtedness of that previously existing common school district. If the common school district is subdivided, the provisions of subsection E of this section shall apply.
6. If the common school district is not subdivided, existing bond authorization of the common school districts automatically continues for the original purpose authorized. If the common school district is subdivided, the existing bond authorization of the common school district will expire unless it is divided between the new unified school districts as specified in the subdivision and unification plan.
7. If any of the school districts were authorized to budget for expenses of complying with or continuing to implement activities that were required or permitted by court order of desegregation or administrative agreement with the United States department of education office for civil rights directed towards remediating alleged or proven racial discrimination pursuant to section 15‑910, this authorization does not expire on the effective date of the subdivision and unification but only applies to schools included in the court order or administrative agreement.
8. If the union high school district and the common school district or districts with which it is unified all have authorization for an override a budget request as provided in section 15‑481 that would have continued after the subdivision and unification, the override budget request authorization continues for the new district and expires at the time that the earliest override budget request would have expired.
9. If one or more of the previously existing school districts were participating in a career ladder program pursuant to chapter 9, article 1.1 of this title before subdivision and unification, notwithstanding any other law the state board shall expedite the processing of and may approve an updated application for program reapproval for the new school district that includes the existing school district that was participating in the program.
10. The employee's years of employment in the previously existing school district shall be included in determining the employee's years of employment in the new school district after a subdivision and unification. An employee who was entitled to continuing contract status in the previously existing school district is entitled to continuing employment contract status in the new school district.
11. The base salary and benefits of each employee for the first year of operation of the new school district after a subdivision and unification shall not be lower than the employee's base salary and benefits for the prior year in the previously existing school district.
12. Notwithstanding paragraphs 10 and 11 of this subsection and pursuant to section 15‑544, nothing in this section shall be construed to restrict the ability of the governing board to implement a reduction in force or to scale back salaries of certified teachers, administrators or noncertificated employees for reasons of economy or to improve the efficient conduct of schools within the district following a subdivision and unification.
Sec. 6. Section 15-459, Arizona Revised Statutes, is amended to read:
15-459. Consolidation of districts; petition; election; notice; report; ballots; canvass of votes; governing board
A. On the request of the governing boards of two or more school districts in the same county or in adjacent counties or on receipt of petitions bearing the signatures of ten per cent or more of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of two or more school districts in the same county or in adjacent counties to consolidate the school districts or parts of the districts, the county school superintendent of each of the counties affected, within ten days, shall call an election to determine the question on consolidation.
B. Consolidations allowed pursuant to subsection A of this section include:
1. To change the boundaries of a school district to include any part of an adjacent school district.
2. If all the common school districts within the boundaries of an existing union high school district desire to consolidate into one common school district.
3. If two or more adjacent school districts of like character, either common, high or unified school districts, desire to consolidate into one common, high or unified school district.
4. If a common school district that is not a part of a union high school district desires to consolidate with an adjacent unified school district.
5. If two or more common school districts desire to consolidate into one school district and unify the consolidated district with a union high school district to form one unified school district.
C. Notice of the election to determine consolidation of school districts shall be posted in not less than three public places in each of the school districts proposed to be consolidated at least twenty‑five days before the election.
D. The county school superintendent shall prepare and the governing board shall distribute a report on the proposed boundary changes in a manner similar to that prescribed in section 15‑481, subsection B. The report shall contain the following information:
1. The date of the election.
2. The polling places and times they are open.
3. The full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed boundary changes for each of the following:
(a) An owner occupied residence whose assessed valuation is the average assessed valuation of property classified as class three, as prescribed by section 42-12003 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 one, as prescribed by section 42‑12001, paragraphs 12 and 13 for the current year in the school district.
4. A consolidation plan to include:
(a) The proposed boundary changes.
(b) The impact of the proposed boundary changes, including where pupils will attend school, changes in pupil transportation services, changes in availability of special education services, changes in pupil‑teacher ratio and operational costs.
(c) If subsection P of this section applies to one or more of the existing school districts, a detailed description of desegregation funding and expenses for the resulting school district as set forth in subsection P of this section.
(d) Any other information the county school superintendent deems appropriate to include.
E. Ballots shall be prepared by the county school superintendent, shall be delivered to the inspector at least forty‑eight hours before the opening of the polls as prescribed in section 16‑509 and shall contain the information prescribed in subsection D, paragraph 3 of this section and the following statement: "Consolidation includes the assumption of liability by the resulting school district for all indebtedness of existing school districts or those parts of school districts proposed for consolidation. Do you support consolidation under the specified provisions of the consolidation plan? Yes ( ) No ( )." If the election is to simultaneously consolidate and unify two or more common school districts, the ballot shall contain: "Do you support the consolidation of the (insert names of common school districts) and the subsequent unification of the consolidated districts with the (insert name of union high school district) to form one unified school district under the consolidation and unification plan? Yes ( ) No ( )."
F. The county school superintendent shall hold the election during the fiscal year preceding the fiscal year consolidation is proposed to be effective on a date prescribed by section 16‑204. The election shall be held in the manner and electors shall possess qualifications as prescribed for the election of governing board members. The results of the election shall be reported to the county school superintendent.
G. The county school superintendent and the chairman of the board of supervisors, on the seventh day after the election, shall canvass the vote. If a majority of the votes cast in each district favors consolidation, the districts are consolidated and become one district from and after June 30 next following the election. If parts of two or more school districts are proposed to be consolidated, a majority of the voters in the part of a school district or districts not affected by the proposed consolidation and a majority of the voters in the part of the school district or districts proposed for consolidation must approve the consolidation.
H. If a school district provides only financing for pupils who are instructed by another school district in the same county or in an adjacent county, the school district or any part of the school district may be consolidated with the school district providing the instructional program as follows:
1. The governing board of the financing school district approves the consolidation or ten per cent of the qualified electors residing in the school district, or that part of the school district proposed for consolidation, petitions the county school superintendent to call an election to approve the proposed consolidation.
2. The governing board of the school district providing instruction approves the consolidation.
3. At an election called by the county school superintendent of each of the counties affected, a majority of the persons voting in the school district, or that part of the school district providing financing, approves the proposed consolidation and a majority of the persons voting in the district providing instruction approves the proposed consolidation.
I. Elections held as provided in subsection H of this section shall be conducted in the same manner as elections prescribed in subsections C through G of this section and shall be held concurrently as prescribed in section 15‑458.
J. If the consolidated district includes territory located in two or more counties, the county of jurisdiction is the county in which the largest number of qualified electors of the consolidated school district resides, except that if all of the existing school buildings are in one county, that county is the county of jurisdiction. The county school superintendent of the jurisdictional county shall perform all duties for and with respect to the consolidated school district as required to be performed by county school superintendents. The board of supervisors of the jurisdictional county shall perform all duties for and with respect to the consolidated school district as required to be performed by boards of supervisors, except that school district taxes to be levied on property in the portion of the consolidated school district lying in another county shall be levied by the board of supervisors of the other county or counties and on receipt shall be transferred to the county of jurisdiction. All school buildings located within the consolidated school district, together with all equipment and furnishings, become the property of the consolidated school district. Any assumed indebtedness is an indebtedness of the consolidated school district for the purpose of determining the debt incurring authority of the consolidated school district.
K. Sections 15‑457, 15‑975 and 15‑997 apply to school districts which are consolidated as provided in subsection H of this section.
L. Consolidation pursuant to this section is not allowed if the resulting school district would have a student count for the current year of more than ten per cent of the total student count of all school districts in this state.
M. The governing board shall prepare policies, curricula and budgets for the new school district. These policies shall require that:
1. The base salary and benefits of each employee for the first year of operation of the new school district shall not be lower than the employee's base salary and benefits for the prior year in the previously existing school district.
2. The employee's years of employment in the previously existing school district shall be included in determining the employee's years of employment in the new school district. An employee who was entitled to continuing employment contract status in the previously existing school district is entitled to continuing employment contract status in the new school district.
3. Notwithstanding paragraphs 1 and 2 of this subsection and pursuant to section 15‑544, nothing in this section shall be construed to restrict the ability of the governing board to implement a reduction in force or to scale back salaries of certified teachers, administrators or noncertificated employees for reasons of economy or to improve the efficient conduct of schools within the district following a school district consolidation.
N. If all of the districts to be consolidated have authorization for an override a budget request as provided in section 15‑481 that would have continued after the consolidation, the override budget request authorization continues for the new district and expires at the time that the earliest override budget request would have expired.
O. If one or more, but not all, of the districts to be consolidated have authorization for an override a budget request as provided in section 15‑481 that would have continued after the consolidation, the override budget request authorization shall only apply to the schools included under the terms of the prior override budget request authorization. Consolidation of school districts does not consolidate or pool the liability to be taxed for the override budget request, and only property that was located within the boundaries of the district that approved the override budget request prior to consolidation is to pay taxes to support the override budget request. This subsection also applies if all of the districts to be consolidated have authorization for overrides budget requests, but the authorizations are pursuant to different subsections of section 15‑481 or the override budget request amounts are not the same percentage of the revenue control limit.
P. Notwithstanding section 15‑457, consolidation of school districts does not consolidate or pool the liability of the former school districts into the resulting school district. Outstanding indebtedness incurred by a school district before consolidation shall be repaid without interruption according to existing debt schedules as determined by the county board of supervisors. If a school district consolidates after July 1, 2004, the new school district may pay tuition to the district of attendance when a pupil is precluded by distance or lack of transportation from attending school in the district of a pupil's residence.
Q. If one or more of the previously existing school districts was were authorized to budget for expenses of complying with or continuing to implement activities that were required or permitted by 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 pursuant to section 15‑910, this authorization does not expire on the effective date of consolidation but only applies to schools included in the court order or administrative agreement.
R. If one or more of the previously existing school districts was were participating in a career ladder program pursuant to chapter 9, article 1.1 of this title before consolidation, notwithstanding any other law the state board shall expedite the processing of and may approve an updated application for program reapproval that incorporates the geographic boundaries of the resulting school district and the inclusion of the additional staff in the career ladder program.
S. If the formation of a new consolidated and unified school district is authorized, the terms of the governing board members of the common and union high school districts do not expire on the effective date of the unification. The governing board members of the previously existing school districts shall serve as provided in section 15‑430, except that the power of the governing board members of the previously existing school districts acting as the governing board of the unified school district is limited to the maintenance and operation of the previously existing school districts and compliance with the consolidation and unification plan.
Sec. 7. Section 15-481, Arizona Revised Statutes, is amended to read:
15-481. Budget request election; budget increases; notice; ballot; effect
A. If a proposed budget of a school district exceeds the aggregate budget limit for the budget year, at least ninety days before the proposed election the governing board shall order an override election to be held on the first Tuesday following the first Monday in November as prescribed by section 16‑204, subsection B, paragraph 1, subdivision (d) for the purpose of presenting the proposed budget to the qualified electors of the school district who by a majority of those voting either shall affirm or reject the budget. At the same time as the order of the election, the governing board shall publicly declare the deadline for submitting arguments, as set by the county school superintendent pursuant to subsection B, paragraph 9 of this section, to be submitted in the informational report and shall immediately post the deadline in a prominent location on the district's website. In addition, the governing board shall prepare an alternate budget which does not include an increase in the budget of more than the amount permitted as provided in section 15‑905. If the qualified electors approve the proposed budget, the governing board of the school district shall follow the procedures prescribed in section 15‑905 for adopting a budget that includes the authorized increase. If the qualified electors disapprove the proposed budget, the governing board shall follow the procedures prescribed in section 15‑905 for adopting a budget that does not include the proposed increase or the portion of the proposed increase that exceeds the amount authorized by a previously approved budget increase as prescribed in subsection P of this section.
B. The county school superintendent shall prepare an informational report on the proposed increase in the budget and a sample ballot and, at least forty days prior to the election, shall transmit the report and the sample ballot to the governing board of the school district. 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‑five 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 voter's polling place and the times it is 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 budget request 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 persons and entities submitting written arguments shall be included in the report. 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 current full cash value and the assessed valuation provided by the department of revenue, the first year tax rate for the proposed override budget request and the estimated amount of the secondary property taxes 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 three, as prescribed by section 42‑12003 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 one, as prescribed by section 42‑12001, paragraphs 12 and 13 for the current year in the school district.
12. If the election is conducted pursuant to subsection L or M of this section, the following information:
(a) An executive summary of the school district's most recent capital improvement plan submitted to the school facilities board.
(b) A complete list of each proposed capital improvement that will be funded with the budget increase 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.
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. Any written information provided by the district pertaining to the override budget request election shall include financial information showing the estimated first year tax rate for the proposed budget override request amount.
D. If any amount of the proposed increase will be funded by a levy of taxes in the district, the election prescribed in subsection A of this section shall be held on the first Tuesday following the first Monday in November as prescribed by section 16‑204, subsection B, paragraph 1, subdivision (d). If the proposed increase will be fully funded by revenues from other than a levy of taxes, the elections prescribed in subsection A of this section shall be held on any date prescribed by section 16‑204. The elections 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 request 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 the current assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget would require an estimated 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 the voter's 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 request 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 fifteen per cent of the revenue control limit as provided in section 15‑947, subsection A for the budget year. If a school district requests an override a budget request pursuant to section 15‑482 or to continue with a budget override request pursuant to section 15‑482 for pupils in kindergarten programs and grades one through three that was authorized before December 31, 2008, the maximum budget increase that 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 request 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)
Small School Support Level Weight Phase Down
Student Student for Small Isolated Reduction
Count 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 - $ = $
(ii)
Small School Support Level Weight Phase Down
Student Student for Small Reduction
Count 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 - $ = $
(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:
(i)
Small School Support Level Weight Phase Down
Student Student for Small Isolated Reduction
Count 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 - $ = $
(ii)
Small School Support Level Weight Phase Down
Student Student for Small Reduction
Count 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 - $ = $
(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.
(d) If only subdivision (a) or (b) of this paragraph applies to a unified school district, the district's limit for the purposes of this paragraph is the sum of the limit computed as provided in subdivision (a) or (b) of this paragraph plus ten per cent of the revenue control limit attributable to those grade levels that do not meet the eligibility requirements of this subsection. If a school district budgets monies outside the revenue control limit pursuant to section 15‑949, subsection E, the district's limit for the purposes of this paragraph is only the ten per cent of the revenue control limit attributable to those grade levels that are not included under section 15‑949, subsection E. For the purposes of this subdivision, the revenue control limit is separated into elementary and secondary components based on the weighted student count as provided in section 15‑971, subsection B, paragraph 2, subdivision (a).
2. If a school district utilizes this subsection to request an override a budget request 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 a budget request authorized pursuant to this subsection is five years.
4. Subsection P, paragraphs 1 and 2 of this section do not apply to overrides budget requests 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 the voter's 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 request 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 the current assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget which will be funded by a levy of taxes upon the taxable property within this school district would require an estimated 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 the voter's 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 request 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 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 children with disabilities, kindergarten programs and grades one through eight as provided in section 15‑971, subsection B. For a unified school district, 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 children with disabilities, kindergarten programs and grades one through twelve. For a union high school district, five per cent of the revenue control limit means five per cent of the revenue control limit attributable to the weighted student count in grades nine through twelve.
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 the voter's desired choice. An election held pursuant to this subsection shall be held on the first Tuesday after the first Monday of November. The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget and the following statement:
Any budget increase request 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 the current assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget would require an estimated 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 the voter's desired choice. An election held pursuant to this subsection shall be held on the first Tuesday after the first Monday of November. The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget and the following statement:
Any budget increase request 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 the current secondary assessed valuation of the school district. The governing board and the county school superintendent shall use the current secondary assessed valuation of the school district 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, 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 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 to fund the additional increase. 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 E or F 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, which shall not exceed the maximum amount permitted under subsection G 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 E or F of this section and the additional increase which 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.
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, however, may 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. For overrides budget requests approved by a vote of the qualified electors of the school district at an election held from and after October 31, 1998, the period of the additional increase prescribed in this subsection shall not exceed seven years for any capital override budget request election.
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 and capital outlay fund ending cash balance to fund the additional increase for the period authorized but not to exceed ten years. For overrides budget requests approved by a vote of the qualified electors of the school district at an election held from and after October 31, 1998, the period of the additional increase prescribed in this subsection shall not exceed seven years for any capital override budget request election.
T. In addition to subsections P and S of this section, from the maintenance and operation fund and capital outlay fund ending cash balances, the school district governing board shall first use any available revenues to reduce its primary tax rate to zero and shall use any remaining revenues to fund the additional increase authorized as provided in subsections F and M of this section.
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 scheduled pursuant to this section 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 eighty days prior to the date of the scheduled override election.
W. For any election conducted pursuant to subsection L or M of this section:
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 budget request 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, the 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.
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 budget request 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 budget request proceeds may be used for general capital expenses, including cost overruns of proposed capital improvements.
Y. Each school district that currently increases its budget pursuant to this section is required to hold a public meeting each year between September 1 and October 31 at which an update of the programs or capital improvements financed through the override budget request is discussed and at which the public is permitted an opportunity to comment and:
1. If the increase is pursuant to subsection L or M of this section, at a minimum, the update shall include the progress of capital improvements financed through the override budget request, 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.
2. If the increase is pursuant to subsection E, F, I or J of this section, the update shall include at a minimum the amount expended in the previous fiscal year and the amount included in the current budget for each of the purposes listed in the informational report prescribed by subsection B of this section.
Z. If a budget in excess of the capital outlay revenue limit was previously adopted by the voters in a school district and will be in effect for the budget year or budget year and subsequent years, as provided in subsection L or M of this section, the governing board may request an additional budget in excess of the capital outlay revenue limit. If the voters in a school district authorize the additional budget in excess of the capital outlay revenue limit, the existing capital outlay revenue limit budget increase remains in effect.
AA. Notwithstanding any other law, the maximum budget increase that may be authorized pursuant to subsection L or M of this section is ten per cent of the school district's revenue control limit.
BB. If the election is to continue to exceed the revenue control limit and if the proposed override budget request will be fully funded by a continuation of a levy of taxes on the taxable property in the school district, the ballot shall contain the words "budget override continuation, yes" and "budget override continuation, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed continuation of the budget 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 request continuation authorized by this election shall be entirely funded by a levy of taxes on the taxable property in 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 the current assessed valuation used for secondary property tax purposes, to fund the proposed continuation of the increase in the school district's budget would require an estimated continuation of a 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.
CC. If the election is to continue to exceed the revenue control limit as provided in section 15-482 and if the proposed override budget request will be fully funded by a continuation of a levy of taxes on the taxable property in the school district, the ballot shall contain the words "budget override request continuation, yes" and "budget override request continuation, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed continuation of the budget 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 request continuation authorized by this election shall be entirely funded by a levy of taxes on the taxable property in 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 the current assessed valuation used for secondary property tax purposes, to fund the proposed continuation of the increase in the school district's budget would require an estimated continuation of a 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.
Sec. 8. Section 15-482, Arizona Revised Statutes, is amended to read:
15-482. Special five per cent budget requests for programs of pupils in kindergarten programs and grades one through twelve
A. An additional budget increase request may be requested and authorized as provided in section 15‑481, subsections I and J of up to five per cent of the revenue control limit as provided in subsection B of this section.
B. The maximum amount of the budget increase requested and authorized shall not exceed the budgeted expenditures of the proposed special program for each fiscal year, not to exceed a total of five per cent of the revenue control limit for each fiscal year.
C. The special program may be designed for children with disabilities in preschool programs and any or all of the pupils enrolled in kindergarten programs and grades one through twelve and may involve efforts to remove barriers to academic achievement as well as efforts to improve instruction or increase the amount of instruction.
D. During any fiscal year in which proceeds from the sale or lease of school property are used for the maintenance and operation section of the budget as provided in section 15‑1102, a budget increase request is in effect as provided in section 15‑481, subsection E or F, or a budget increase request is in effect as provided in this section, or any combination of these conditions occurs, the total amount of the proceeds and increases which may be expended is equal to fifteen per cent of the revenue control limit for that year as provided in section 15‑947, subsection A, provided that the following maximum amount is attributable to any one of the conditions:
1. Fifteen per cent of the revenue control limit if using the proceeds from the sale or lease of school property for the maintenance and operation section of the budget as provided in section 15‑1102.
2. Fifteen per cent of the revenue control limit if using a budget increase as provided in section 15‑481, subsection E or F, or both.
3. Five per cent of the revenue control limit if using a budget increase as provided in this section.
Sec. 9. Section 15-491, Arizona Revised Statutes, is amended to read:
15-491. Elections on school property; exceptions
A. The governing board of a school district may, and on 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 or renovating school buildings, for supplying school buildings with furniture, equipment and technology, for improving school grounds, for purchasing pupil transportation vehicles or for liquidating any indebtedness already incurred for such purposes. Bonds issued for furniture, equipment and technology, other than fixtures, shall mature no later than the July 1 that follows the fifth year after the bonds were issued. A school district shall not issue class B bonds until the school district has obligated in contract the entire proceeds of any class A bonds issued by the school district. 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, sections 8 and 8.1, Constitution of Arizona.
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.
5. To change the list of capital projects or the purposes authorized by prior voter approval to issue bonds.
6. To extend from six to ten years the time period to issue class B bonds authorized in 2009 or earlier. Elections pursuant to this paragraph may not be held later than the sixth November after the election approving the issuance of the bonds.
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 that 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 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 on 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 a budget request 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 budget request election. Mailing of the information required for both the override budget request 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, except that elections held pursuant to this section to decide whether class B bonds shall be issued, or any other obligation incurred that will require the assessment of secondary property taxes, shall only be held on the first Tuesday after the first Monday of November.
F. Subsection A, paragraph 2 of this section does not apply to the sale of school property if the market value of the school property is less than fifty thousand dollars.
G. Bond counsel fees, financial advisory fees, printing costs and paying agent and registrar fees for bonds issued pursuant to an election under this section shall be paid from either the amount authorized by the qualified electors of the school district or current operating funds. Bond election expenses shall be paid from current operating funds only.
H. For any election conducted to decide whether class B bonds will be issued pursuant to this section:
1. Except as provided in paragraph 2 of this subsection, 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. For a school district that is a joint technical education district, the ballot shall include the following statement:
___________, a joint technical education district, is proposing to issue class B general obligation bonds totaling $___________ to fund capital improvements at a campus owned or operated and maintained by the joint technical education district.
3. The ballot shall contain the words "bond approval, yes" and "bond approval, no", and the voter shall signify the voter's desired choice.
4. The ballot shall also contain the phrase "the issuance of these bonds will result in an annual levy of property taxes sufficient to pay the debt on the bonds".
5. At least eighty‑five days before the election, the 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.
6. No later than thirty-five days before a class B bond election conducted pursuant to this section, the school district shall mail a publicity pamphlet to each household that contains a qualified elector in the school district. 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 one hundred thousand dollars.
I. For any election conducted to decide whether impact aid revenue bonds shall be issued pursuant to this section:
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 impact aid revenue 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, the school district shall submit proposed ballot language to the director of the legislative council. The director of the legislative council shall review the proposed ballot language to determine whether the proposed ballot language complies with this section. If the director of the 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 thirty-five days before an impact aid revenue bond election conducted pursuant to this section, the school district shall mail a publicity pamphlet to each household that contains a qualified elector in the school district. The publicity pamphlet shall contain, at a minimum, the following information:
(a) The date of the election.
(b) The voter's polling place and the times it is open.
(c) An executive summary of the school district's most recent capital plan submitted to the school facilities board.
(d) 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.
(e) A statement that impact aid revenue bonds will be fully funded by aid that the school district receives from the federal government and do not require a levy of taxes in the district.
(f) A statement that if the bonds are approved, the first priority for the impact aid will be to pay the debt service for the bonds and that other uses of the monies are prohibited until the debt service obligation is met.
(g) A statement that if the impact aid revenue bonds are approved, the school district shall not issue or sell class B bonds while the district has existing indebtedness from impact aid revenue bonds, except for bonds issued to refund any bonds issued by the board.
J. If the voters approve the issuance of school district class B bonds or impact aid revenue 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. The proposed capital improvements may be changed by a subsequent election as provided by this section.
K. Each school district that issues bonds under this section is required to hold a public meeting each year between September 1 and October 31, until the bond proceeds are spent, 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 budget requests in funding capital improvements, if any.
L. If an election is held to change the purpose or list of capital projects authorized by prior voter approval to issue bonds pursuant to subsection A, paragraph 5 of this section, the following requirements apply:
1. The election may be held only on the first Tuesday after the first Monday in November.
2. No later than thirty-five days before the election, the school district shall mail a publicity pamphlet to each household in the school district that contains a qualified elector. The publicity pamphlet shall contain, at a minimum, the following information:
(a) The date of the election.
(b) The voter's polling place and the times it is open.
(c) A statement as to why the election was called.
(d) A complete list of each proposed capital improvement that is in addition to the initial capital improvements presented in the publicity pamphlet when the bonds were approved and the proposed cost of each improvement, including a separate aggregation of capital improvements for administrative purposes as defined by the school facilities board.
(e) A complete list of each capital improvement that was presented in the publicity pamphlet when the bonds were initially approved and that is proposed to be eliminated or to have its cost reduced, and the proposed cost of each improvement, including a separate aggregation of capital improvements for administrative purposes as defined by the school facilities board.
(f) Arguments for and against the proposed change, if submitted, as provided by section 15-481, subsection B, paragraph 9.
3. The ballot shall contain the words "change capital improvements, yes" and "change capital improvements, no", and the voter shall signify the voter's desired choice.
4. If the election is to add a purpose that was not on the initial ballot, the ballot shall list the purpose that is proposed to be added.
M. If an election is held to extend the time to issue bonds pursuant to subsection A, paragraph 6 of this section, the following requirements apply:
1. The election may be held only on the first Tuesday after the first Monday in November.
2. No later than thirty-five days before the election, the school district shall mail a publicity pamphlet to each household in the school district that contains a qualified elector. The publicity pamphlet shall contain, at a minimum, the following information:
(a) The date of the election.
(b) The voter's polling place and the times it is open.
(c) A statement as to why the election was called.
(d) Arguments for and against the proposed change, if submitted, as provided in section 15‑481, subsection B, paragraph 9.
3. The ballot shall contain the words "extend time to issue bonds, yes" and "extend time to issue bonds, no", and the voter shall signify the voter's desired choice. END_STATUTE
Sec. 10. Section 15-503, Arizona Revised Statutes, is amended to read:
15-503. Superintendents, principals, head teachers and school psychologists; term of employment; evaluation; contract delivery; nonretention notice
A. The governing board may:
1. Employ a superintendent or principal, or both. If the governing board employs a superintendent, the governing board shall determine the qualifications for the superintendent by action taken at a public meeting. The governing board shall require a superintendent to have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1.
2. Appoint a head teacher.
3. Jointly with another governing board employ a superintendent or a principal, or both. If the governing board jointly employs a superintendent, the governing boards shall jointly determine the qualifications for the superintendent by action taken at a public meeting. The governing boards shall require a superintendent to have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1.
B. The term of employment of superintendents may be for any period not exceeding three years, except that if the superintendent's contract with the school district is for multiple years pursuant to this subsection the school district shall not offer to extend or renegotiate the contract until May of the year preceding the final year of the contract. The term of employment of principals may be for any period not exceeding three years pursuant to section 15‑341, subsection A, paragraph 42, except that if the principal's contract with the school district is for multiple years the school district shall not offer to extend or negotiate the contract until May of the year preceding the final year of the contract. The school district governing board or the governing body of the charter school shall communicate the superintendent's or principal's duties with respect to the classroom site fund established by section 15‑977.
C. The governing board shall establish systems for the evaluation of the performance of principals that meet the requirements prescribed in section 15‑203, subsection A, paragraph 38 and other school administrators and certificated school psychologists in the school district. In the development and adoption of these performance evaluation systems, the governing board shall avail itself of the advice of its administrators and certificated school psychologists. Each evaluation shall include recommendations as to areas of improvement in the performance of the certificated school psychologist if the performance of the certificated school psychologist warrants improvement. After transmittal of an assessment, a board designee shall confer with the certificated school psychologist to make specific recommendations as to areas of improvement in the certificated school psychologist's performance. The board designee shall provide assistance and opportunities for the certificated school psychologist to improve his performance and shall follow up with the certificated school psychologist after a reasonable period of time for the purpose of ascertaining that the certificated school psychologist is demonstrating adequate performance. The evaluation process for certificated school psychologists shall include appeal procedures for certificated school psychologists who disagree with the evaluation of their performance, if the evaluation is for use as criteria for establishing compensation or dismissal.
D. On or before May 15 each year, the governing board shall offer a contract for the next school year to each certified administrator and certificated school psychologist who is in the last year of his contract unless, on or before April 15, the governing board, a member of the board acting on behalf of the board or the superintendent of the school district gives notice to the administrator or certificated school psychologist of the board's intention not to offer a new contract. If the governing board has called for an override a budget request election for the third Tuesday in May as provided in section 15‑481, the governing board shall offer a contract for the next school year to each certified administrator or certificated school psychologist who is in the last year of his contract on or before June 15 unless, no later than five days after the override budget request election excluding Saturday, Sunday and legal holidays, the governing board, a member of the board acting on behalf of the board or the superintendent of the school district gives notice to the administrator or the certificated school psychologist of the board's intention not to offer a new contract. The administrator's or the certificated school psychologist's acceptance of the contract shall be indicated within thirty days from the date of the written contract or the offer is revoked. The administrator or certificated school psychologist accepts the contract by signing the contract and returning it to the governing board or by making a written instrument that accepts the terms of the contract and delivering the written instrument to the governing board.
E. Notice of the board's intention not to reemploy the administrator or certificated school psychologist shall be made by delivering the notice personally to the administrator or the certificated school psychologist or by sending the notice by certified mail, postmarked on or before the applicable deadline prescribed in subsection D of this section, and directed to the administrator or the certificated school psychologist at his place of residence as recorded in the school district records.
F. The school district governing board shall make available the evaluation and performance classification pursuant to section 15‑203, subsection A, paragraph 38 of each principal in the school district to school districts and charter schools that are inquiring about the performance of the principal for hiring purposes.
Sec. 11. Section 15-511, Arizona Revised Statutes, is amended to read:
15-511. Use of school district or charter school resources or employees to influence elections; prohibition; civil penalty; definition
A. A person acting on behalf of a school district or a person who aids another person acting on behalf of a school district shall not use school district or charter school personnel, equipment, materials, buildings or other resources for the purpose of influencing the outcomes of elections. Notwithstanding this section, a school district may distribute informational reports on a proposed budget override budget request election as provided in section 15‑481, subsections B and C or informational reports on a proposed bond election as provided in section 15‑491, subsection D. Nothing in this section precludes a school district from reporting on official actions of the governing board.
B. An employee of a school district or charter school who is acting as an agent of or working in an official capacity for the school district or charter school may not give pupils written materials to influence the outcome of an election or to advocate support for or opposition to pending or proposed legislation.
C. Employees of a school district or charter school may not use the authority of their positions to influence the vote or political activities of any subordinate employee.
D. Notwithstanding section 15‑342, paragraph 8, a school district shall not spend monies for membership in an association that attempts to influence the outcome of an election.
E. Nothing contained in this section shall be construed as denying the civil and political liberties of any person as guaranteed by the United States and Arizona Constitutions.
F. The attorney general shall publish and distribute to school districts and charter schools a detailed guideline regarding activities prohibited under this section. The attorney general may distribute these guidelines through a website or electronically.
G. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may initiate a suit in the superior court in the county in which the school district or charter school is located for the purpose of complying with this section.
H. For each violation of this section, the court may impose a civil penalty not to exceed five hundred dollars plus any amount of misused funds subtracted from the school district budget against a person who knowingly violates or a person who knowingly aids another person in violating this section. The person determined to be out of compliance with this section shall be responsible for the payment of all penalties and misused funds. School district funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the school district or charter school whose funds were misused.
I. An attorney acting on behalf of a public school may request a legal opinion of the county attorney or attorney general as to whether a proposed use of school district resources would violate this section.
J. All penalties collected by the court for a suit initiated in superior court by the attorney general shall be paid to the office of the attorney general for the use and reimbursement of costs of prosecution pursuant to this section. All penalties collected by the court for a suit initiated in superior court by a county attorney shall be paid to the county treasurer of the county in which the court is held for the use and reimbursement of costs of prosecution pursuant to this section.
K. For the purposes of this section, "misused funds" means school district monies or resources used pursuant to subsection A of this section.
Sec. 12. Section 15-903, Arizona Revised Statutes, is amended to read:
15-903. Budget format; prohibited expenditures
A. The superintendent of public instruction in conjunction with the auditor general shall 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 to plan and provide in detail for the use of available funds. The budget format shall contain distinct sections for, but need not be limited to, maintenance and operation, debt service, special projects, capital outlay, adjacent ways and classroom site fund. The maintenance and operation section shall include, but need not be limited to, separate subsections for regular education programs, special education programs and operational expenditures for pupil transportation. Each subsection shall clearly distinguish classroom instruction expenditures. 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 technical education, remedial education and bilingual students. The total expenditures for each of these programs shall be included on the budget form. 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. The capital outlay section of the budget shall include separate subsections for unrestricted capital outlay and soft capital allocation. The soft capital allocation subsection shall include budgeted expenditures as prescribed in section 15‑962. The unrestricted capital outlay subsection shall include budgeted expenditures for acquisitions by purchase, lease‑purchase or lease of capital items as defined in the uniform system of financial records. These sections and subsections shall include:
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. School district administration emergency needs that are directly related to pupils.
D. 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 for maintenance and operation, K‑3 and capital overrides budget requests for the school district for the current year and the budget year.
(c) The secondary tax rates for class A bonds for the school district for the current year and the budget year.
(d) The secondary tax rates for class B bonds for the school district for the current year and the budget year.
5. A description of any corrections or adjustments made to the budget pursuant to section 15‑915.
E. 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.
F. The special projects section shall include budgeted expenditures for state special projects, including special adult projects, career education, deficiencies correction fund projects, building renewal fund projects and new school facilities fund projects, such federal special projects as ESEA title programs, vocational education and title IV Indian education, and other special projects.
G. A school district shall not make expenditures for campaign literature associated with school district or charter school officials. If the superintendent of public instruction determines that a school district has violated this subsection, the superintendent of public instruction may withhold any portion of the school district's apportionment of state aid.
H. The budget format shall include an electronic format that shall be submitted for each proposed, adopted and revised budget.
Sec. 13. Section 15-905.01, Arizona Revised Statutes, is amended to read:
15-905.01. Truth in taxation; calculation; notice and hearing; vote on tax increase
A. Each school district shall determine its truth in taxation base limit for expenditures as follows:
1. Determine the amounts budgeted in fiscal year 1999‑2000 for expenditures in the following categories:
(a) Desegregation pursuant to section 15‑910.
(b) Dropout prevention programs.
(c) Excess utilities pursuant to section 15‑910.
(d) Career and technical education and vocational education center operations pursuant to section 15‑910.01.
(e) Small school adjustments pursuant to section 15‑949.
2. The sum of the expenditures in paragraph 1 of this subsection for fiscal year 1999‑2000 shall become the truth in taxation base limit.
3. For any year after fiscal year 1999‑2000, a school district whose aggregate budgeted expenditures for the expenditures prescribed in paragraph 1 of this subsection exceed the truth in taxation base limit shall publish a truth in taxation hearing notice that meets the requirements of subsection B of this section. If the amount exceeding the previous truth in taxation base limit is approved by the school district governing board following the hearing prescribed in subsection B of this section, the excess amount plus the previous truth in taxation base limit becomes the school district's new truth in taxation base limit.
4. If a school district no longer qualifies for one or more of the expenditures prescribed in paragraph 1 of this subsection, the amount budgeted for the most recent fiscal year in which the school district was eligible for that expenditure shall be deducted from the school district's truth in taxation base limit.
B. For any fiscal year in which a school district governing board budgets an amount that is higher than the truth in taxation base limit calculated pursuant to subsection A of this section, any fiscal year in which a school district levies any amount for adjacent ways pursuant to section 15‑995 or any fiscal year in which the school district levies any amount for liabilities in excess of the school district budget pursuant to section 15‑907:
1. The school district shall publish a notice that meets the following requirements:
(a) The notice shall be published once in a newspaper of general circulation in the school district. The publication shall be at least ten but not more than twenty days before the date of the hearing.
(b) The notice shall be published in a location other than the classified or legal advertising section of the newspaper in which it is published.
(c) The notice shall be at least one‑fourth page in size and shall be surrounded by a solid black border at least one‑eighth inch in width.
(d) The notice shall be in the following form, excluding the parenthetical explanations, and with the "truth in taxation hearing ‑ notice of tax increase" headline in at least eighteen-point type:
Truth in Taxation Hearing
Notice of Tax Increase
In compliance with section 15‑905.01, Arizona Revised Statutes, _________ school district is notifying its property taxpayers of _________ school district's intention to raise its primary property taxes over the current level to pay for increased expenditures in those areas where the governing board has the authority to increase property taxes for the fiscal year beginning July 1, ____. The _________ school district is proposing an increase in its primary property tax levy of $_________ (amount of levy increase to pay for truth in taxation base increase, the amount of the total levy for the adjacent ways fund and amounts for liabilities in excess of the school district budget pursuant to section 15-907).
The amount proposed above will cause _________ school district's primary property taxes on a $100,000 home to increase from $_________ (the amount used to pay for the current year's truth in taxation base limit [the amount divided by the current net assessed value available February 10 pursuant to section 42‑17052] applied to $100,000) to $____________ (the amount used to pay for the budget year's proposed truth in taxation base limit and adjacent ways levy, including adjacent ways and liabilities in excess of the school district budget [the amount divided by the current net assessed value available February 10 pursuant to section 42‑17052] applied to $100,000).
These amounts proposed are above the qualifying tax levies as prescribed by state law, if applicable. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides requests.
All interested citizens are invited to attend the public hearing on the proposed tax increase scheduled to be held _________ (date and time) at _________ (location).
2. In lieu of publishing the truth in taxation notice, the governing board may mail the truth in taxation notice prescribed by paragraph 1, subdivision (d) of this subsection to all registered voters in the district at least ten but not more than twenty days before the date of the hearing.
3. In addition to publishing the truth in taxation notice under paragraph 1 of this subsection or mailing the notice under paragraph 2 of this subsection, the governing board shall issue a press release containing the truth in taxation notice to all newspapers of general circulation in the school district.
4. The governing board shall consider a motion to levy the increased property taxes by roll call vote.
5. Within three days after the hearing, the governing board shall mail a copy of the truth in taxation notice, a statement of its publication or mailing and the result of the governing board's vote under paragraph 4 of this subsection to the property tax oversight commission established by section 42‑17002.
6. The governing board shall hold the truth in taxation hearing on or before the adoption of the school district budget under section 15‑905.
7. Expenditures for adjacent ways and liabilities in excess of the school district budget do not become part of the school district's truth in taxation base limit.
C. The department of education shall maintain a listing of each school district's truth in taxation base limit and shall verify the accuracy of the school district's computations. A school district governing board shall notify the department of education of any change in the district's truth in taxation base limit.
D. The department of education shall develop a budget form for school districts to show the primary tax rate associated for each of the expenditure categories mentioned in subsection A, paragraph 1 of this section and for expenditures for adjacent ways pursuant to section 15‑995 or any other expenditure in excess of the school district budget pursuant to section 15‑907. A school district shall make this information available to the general public at truth in taxation hearings and shall submit the information to the department of education.
Sec. 14. Section 15-947, Arizona Revised Statutes, is amended to read:
15-947. Revenue control limit; district support level; general budget limit; unrestricted total capital budget limit; soft capital allocation limit
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 maintenance and operations portion of 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 carryforward 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) Title VIII of the elementary and secondary education act of 1965 assistance determined for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703 as provided in section 15‑905, subsections K and O.
(vi) Title VIII of the elementary and secondary education act of 1965 administrative costs as provided in section 15‑905, subsection P.
(vii) State assistance for excess tuition as provided in section 15‑825.01.
(viii) Amounts received from the state board of education pursuant to section 15‑973.01.
(ix) Transportation revenues for attendance of nonresident pupils.
(b) Amounts approved pursuant to an override a budget request 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 B.
(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 career and technical education and vocational education center as provided in section 15‑910.01.
3. The maintenance and operations portion of the capital outlay revenue limit for the budget year.
4. Any other budget item that is budgeted in the maintenance and operation section of the budget and that is specifically exempt from the revenue control limit or the capital outlay revenue limit.
D. The unrestricted capital budget limit, for each school district for each fiscal year, is the sum of the following:
1. The federal impact adjustment as determined in section 15‑964 for the budget year.
2. Any other budget item that is budgeted in the capital outlay section of the budget and that is specifically exempt from the capital outlay revenue limit.
3. The unrestricted capital portion of the amounts contained in subsection C of this section.
4. The unexpended budget balance in the unrestricted capital outlay fund from the previous fiscal year.
5. The net interest earned in the unrestricted capital outlay fund the previous fiscal year.
6. The budgeted amount as approved and determined pursuant to section 15‑962, subsection F.
E. The soft capital allocation limit for each school district for each fiscal year is the sum of the following:
1. The soft capital allocation for the budget year.
2. The unexpended budget balance in the soft capital allocation fund from the previous fiscal year.
3. The net interest earned in the soft capital allocation fund the previous fiscal year.
Sec. 15. Section 15-949, Arizona Revised Statutes, is amended to read:
15-949. Small school districts; exemption from general budget limit; budget revision
A. The governing board of a common school district with a student count in kindergarten programs and grades one through eight of one hundred twenty‑five or less, the governing board of a high school district with a student count of one hundred or less or the governing board of a unified school district or the county school superintendent for an accommodation school with a student count of one hundred twenty‑five or less in kindergarten programs and grades one through eight or with a student count of one hundred or less in grades nine through twelve shall compute a revenue control limit and a general budget limit, but the governing board or the county school superintendent may:
1. Adopt a budget in excess of the general budget limit without the necessity of an election under section 15‑481, provided that for a unified school district or for an accommodation school the excess amount of expenditures shall be attributable to the student count in kindergarten programs and grades one through eight or to the student count in grades nine through twelve as provided in this subsection.
2. Revise its budget to include the costs for additional pupils who were not anticipated when the budget was adopted, if it receives permission as follows:
(a) If a governing board:
(i) The governing board shall send a petition to the county school superintendent requesting authority to revise its budget. The petition shall include a copy of the proposed budget.
(ii) The county school superintendent shall recommend the action to be taken on the petition and forward the recommendation and the petition to the board of supervisors.
(iii) The board of supervisors shall hold a hearing on the petition within twenty days after receipt of the petition and shall determine whether to allow the petition, allow the petition after revision or deny the petition.
(b) If a county school superintendent, the county school superintendent shall send the revised budget to the board of supervisors, and the board of supervisors shall hold a hearing on the recommendation within twenty days after receipt of the recommendation and shall determine whether to allow the revised budget, allow the revised budget after further revision or deny the revision.
B. If the board of supervisors revises or denies the petition or recommendation presented pursuant to subsection A, paragraph 2, subdivision (a), item (iii) or subdivision (b) of this section the reasons for revision or denial shall be stated in writing.
C. School districts that in any year after fiscal year 1984‑1985 but before fiscal year 1999‑2000 have operated under the provisions of the small school adjustment as provided for in subsection A of this section and that have subsequently exceeded the student count limits expressed in subsection A of this section may continue in successive years to adopt a budget greater than the general budget limit without the necessity of an election under section 15‑481, except that the amount greater than the general budget limit shall not exceed fifty thousand dollars. The amount that is adopted without the use of an election under section 15‑481 and that is greater than the general budget limit is specifically exempt from the revenue control limit.
D. Notwithstanding subsection C of this section, school districts that exceeded the student count limits prescribed in subsection A of this section may adopt, in the first year that these limits are exceeded, a budget that exceeds the general budget limit without an election conducted pursuant to section 15‑481 or pursuant to subsection E of this section, except that the amount that exceeds the general budget limit shall not exceed the amount authorized pursuant to subsection C of this section plus the limit prescribed in subsection E of this section. The amount that is adopted without an election and that exceeds the general budget limit is exempt from the revenue control limit.
E. School districts that in any year after fiscal year 1998‑1999 have operated under the provisions of the small school adjustment as provided in subsection A of this section and that have subsequently exceeded the student count limits prescribed in subsection A of this section may continue in successive years to adopt a budget greater than the general budget limit subject to an election, except that the amount that is greater than the general budget limit shall not exceed the amount that is prescribed in this subsection. The amount that is adopted pursuant to this subsection is specifically exempt from the revenue control limit and shall be funded by a levy on secondary property taxes in the school district. The maximum amount that may be adopted pursuant to this subsection is computed as follows:
1. For a unified school district, separate the revenue control limit into elementary and secondary components based on the weighted student count as provided in section 15‑971, subsection B, paragraph 2, subdivision (a). Use the elementary component of the revenue control limit for the purposes of paragraph 2 of this subsection and the secondary component of the revenue control limit for the purposes of paragraph 3 of this subsection.
2. For a common or unified district that used the provisions of subsection A of this section based on its elementary student count, the amount is determined as follows:
(a) Subtract one hundred twenty‑five from the elementary student count.
(b) Multiply the difference in subdivision (a) of this paragraph by 0.45 per cent.
(c) Subtract the product determined in subdivision (b) of this paragraph from thirty‑five per cent. If the result is zero or less than zero, the district is not eligible to use the provisions of this paragraph.
(d) Multiply the difference determined in subdivision (c) of this paragraph by the elementary revenue control limit.
3. For a high school or unified district that used the provisions of subsection A of this section based on its secondary student count, the amount is determined as follows:
(a) Subtract one hundred from the secondary student count.
(b) Multiply the difference in subdivision (a) of this paragraph by 0.65 per cent.
(c) Subtract the product determined in subdivision (b) of this paragraph from sixty‑five per cent. If the result is zero or less than zero, the district is not eligible to use the provisions of this paragraph.
(d) Multiply the difference determined in subdivision (c) of this paragraph by the secondary revenue control limit.
4. For a unified school district that used the provisions of subsection A of this section for both its elementary and secondary pupils, combine the amounts determined in paragraphs 2 and 3 of this subsection.
F. For the purposes of subsection E of this section:
1. "Elementary" means kindergarten programs and grades one through eight.
2. "Secondary" means grades nine through twelve.
G. The part of the primary tax rate set to fund the small school district adjustment as provided in subsections D and E of this section shall not be included in the computation of additional state aid for education as prescribed in section 15‑972.
H. The election required pursuant to subsection E of this section shall conform to the procedural requirements for calling the election, preparing the informational report and preparing the ballot as prescribed in section 15‑481, subsections A, B, C and D. The maximum number of years that a budget override request approved pursuant to subsection E of this section may be in effect is five years.
I. If the proposed budget override request will be fully funded by a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget override request, yes" and "budget override request, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget override request compared to the amount the school district budgeted in the preceding year and the amount the school district would be allowed to budget for if the measure is not approved by the voters. The statement shall also include the estimated amount of the override budget request for each year the override budget request is sought. The ballot shall also include the following statement:
The budget override request authorized by this election allows the _______________ school district to levy property taxes in excess of the property tax levy allowed by law to fund the school district's revenue control limit. The property tax levy for the year for which adopted and for ____ subsequent years will be annually adjusted based on a formula that authorizes the _______________ school district to exceed the revenue control limit by up to thirty‑five per cent for kindergarten programs and grades one through eight or up to sixty‑five per cent for grades nine through twelve. The levy 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 override budget request in the ________________ school district's budget over that allowed by the revenue control limit would result in an estimated increase in the school district's tax rate of _________________ dollars per one hundred dollars of assessed valuation for the secondary property tax purposes.
J. If the proposed budget override request will be fully funded by revenues from other than a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget override request, yes" and "budget override request, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget override request compared to the amount the school district budgeted in the preceding year and the amount the school district would be allowed to budget for if the measure is not approved by the voters. The statement shall also include the estimated amount of the override budget request for each year the override budget request is sought. The ballot shall also include the following statement:
Any budget override request 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. For the purposes of subsections H and I of this section, levy of taxes on the taxable property does not include a levy of the government property lease or park property lease excise taxes assessed pursuant to title 42, chapter 6, article 5.
Sec. 16. Section 15-996, Arizona Revised Statutes, is amended to read:
15-996. Duties of county treasurer relating to school district's monies
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, 15‑1025, 15‑2021, 15‑2031 and 15‑2041. If only two accounts are maintained, the first account shall consist of maintenance and operation, unrestricted capital outlay, soft capital allocation and adjacent ways monies and the classroom site fund prescribed in section 15‑977 and the second account shall consist of federal and state grant monies and all other monies.
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, unrestricted capital outlay, soft capital allocation and adjacent ways accounts and the classroom site fund prescribed in section 15‑977 and only if the total cash balance of all three accounts is insufficient to pay the warrants, except that, during the period of time when a school district is under receivership pursuant to section 15-103, a warrant may be registered on the debt service account for which the cash balance in the debt service account is insufficient to cover the debt service payment if there are not sufficient monies in the debt service account to cover the debt.
(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.
6. On each property tax bill and each property tax statement prepared, separately state and identify by name each school district's primary property tax rate, the secondary property tax rate that is associated with overrides budget requests, the secondary property tax rate that is associated with class A bonds and the secondary property tax rate that is associated with class B bonds. For the purposes of this paragraph, "class A bonds" and "class B bonds" have the same meanings prescribed in section 15‑101.
Sec. 17. Section 15-1102, Arizona Revised Statutes, is amended to read:
15-1102. Disposition of proceeds from sale or lease of school property; school plant monies; payment of bonded indebtedness; definition
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 district 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 a budget request election to exceed the capital outlay revenue limit, except that during the last year of that period the school district may authorize an override a budget request 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 before July 1, 1998 or the lease of school property for more than one year expended for maintenance and operation shall not exceed fifteen per cent of the revenue control limit as provided in section 15‑947, subsection A in any year of which ten per cent may be used without voter approval and an additional five per cent may be used if the additional amount is approved by a majority of the qualified electors voting in an election called for such purposes. The election shall be conducted and notice and ballots shall be prepared as provided in section 15‑481. Proceeds from the sale of school property from and after June 30, 1998 shall not be expended for maintenance and operation.
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 before July 1, 1998 or the lease of school property for more than one year for maintenance and operation or any combination of these provisions, the total amount of these increases which may be expended is equal to fifteen per cent of the revenue control limit for that year as provided in section 15‑947, subsection A, provided that the following maximum amount is attributable to the use of any one provision:
(a) Fifteen per cent of the revenue control limit when using the proceeds from the sale before July 1, 1998 or lease of school property for maintenance and operation as provided in this section.
(b) Fifteen 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 district 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 as follows:
1. For maintenance and operation, the expenditure may not exceed the lesser of the limit in subsection B, paragraph 2 or 3 of this section or the amount of the proceeds from the lease of school property multiplied by .25.
2. For capital outlay, the expenditure of the proceeds:
(a) From the sale of school property may not exceed the amount of the proceeds multiplied by .62.
(b) From the lease of school property is not limited.
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 three school plant funds, one fund for monies received from the sale before July 1, 1998 or lease of school property for more than one year, one fund for monies received from the sale of school property from and after June 30, 1998 and one fund for monies received from the lease of school property for one year or less. The county treasurer shall credit the deposits to the respective school plant fund of the respective school district. Monies placed to the credit of the school plant funds may be expended as provided in this section. The school plant funds are continuing funds not subject to reversion.
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 before July 1, 1998 or lease of school property for the additional maintenance and operations expenses incurred as the result of operating on a year‑round school year operation basis pursuant to section 15‑855. The amount that the governing board, superintendent or chief administrative officer may expend for a year‑round school year operation, as provided in this subsection, is limited to the actual maintenance and operations costs incurred as the result of the year‑round school year operation as documented in the school district's budget as provided in section 15‑855. A governing board, superintendent or chief administrative officer that utilizes this subsection is subject to all other limitations prescribed in this section regarding the expenditure of proceeds from the sale before July 1, 1998 or lease of school property.
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 facilities, 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 facilities or sites after notice and a hearing.
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 facilities or sites after notice and a hearing.
I. For the purposes of this section, "capital outlay" means unrestricted capital outlay as prescribed in section 15‑903, subsection C.
Sec. 18. Section 15-1461.01, Arizona Revised Statutes, is amended to read:
15-1461.01. Truth in taxation notice and hearing; roll call vote on tax increase; definition
A. On or before February 10 of the tax year, the county assessor shall transmit and certify to the property tax oversight commission and to the district governing board the total net primary assessed values that are required to compute the levy limit prescribed by section 42‑17051. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied in the preceding tax year by the district:
1. The district governing board shall publish a notice that meets the following requirements:
(a) The notice shall be published twice in a newspaper of general circulation in the district. The first publication shall be at least fourteen but not more than twenty days before the date of the hearing. The second publication shall be at least seven but not more than ten days before the date of the hearing.
(b) The notice shall be published in a location other than the classified or legal advertising section of the newspaper in which it is published.
(c) The notice shall be at least one‑fourth page in size and shall be surrounded by a solid black border at least one‑eighth inch in width.
(d) The notice shall be in the following form, with the "truth in taxation hearing – notice of tax increase" headline in at least eighteen point type:
Truth in Taxation Hearing
Notice of Tax Increase
In compliance with section 15‑1461.01, Arizona Revised Statutes, __________ community college district is notifying its property taxpayers of __________ community college district's intention to raise its primary property taxes over last year's level. The __________ community college district is proposing an increase in primary property taxes of $__________ or _____%.
For example, the proposed tax increase will cause __________ community college district's primary property taxes on a $100,000 home to increase from $__________ (total taxes that would be owed without the proposed tax increase) to $__________ (total proposed taxes including the tax increase).
This proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides requests.
All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held __________ (date and time) at __________ (location).
2. In lieu of publishing the truth in taxation notice, the district board may mail the truth in taxation notice prescribed by paragraph 1, subdivision (d) to all registered voters in the district at least ten but not more than twenty days before the date of the hearing.
3. In addition to publishing the truth in taxation notice under paragraph 1 or mailing the notice under paragraph 2, the district governing board shall issue a press release containing the truth in taxation notice to all newspapers of general circulation in the district.
4. The district board shall consider a motion to levy the increased property taxes by roll call vote.
5. Within three days after the hearing, the district board shall mail a copy of the truth in taxation notice, a statement of its publication or mailing and the result of the district board's vote under paragraph 4 to the property tax oversight commission established by section 42‑17002.
6. The district board shall hold the truth in taxation hearing on or before the adoption of the county, city or town budget under section 42‑17105.
B. If the governing board fails to comply with the requirements of this section, the governing board shall not fix, levy or assess an amount of primary property taxes that exceeds the preceding year's amount, except for amounts attributable to new construction.
C. For purposes of this section, "amount attributable to new construction" means the net assessed valuation of property added to the tax roll since the previous year multiplied by a property tax rate computed by dividing the district's primary property tax levy in the preceding year by the estimate of the district's total net assessed valuation for the current year, excluding the net assessed valuation attributable to new construction.
Sec. 19. Section 15-2011, Arizona Revised Statutes, is amended to read:
15-2011. Minimum school facility adequacy requirements; definition
A. The school facilities board, as determined and prescribed in this chapter, shall provide funding to school districts for new construction as the projected number of pupils in the district will fill the existing school facilities and require more pupil space.
B. School buildings in a school district are adequate if all of the following requirements are met:
1. The buildings contain sufficient and appropriate space and equipment that comply with the minimum school facility adequacy guidelines established pursuant to subsection F 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 C 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 C of this section.
E. In measuring the square footage per pupil requirements of subsection C 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:
(a) Total gross square footage.
(b) Student capacity multiplied by the appropriate square footage per pupil prescribed by subsection C of this section.
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 to the board's satisfaction unusual or excessive busing of pupils or unusual attendance boundary changes between schools.
4. Compute the gross square footage of all buildings by measuring from exterior wall to exterior wall. Square footage used solely for district administration, storage of vehicles and other nonacademic purposes shall be excluded from the gross square footage.
5. Include all portable and modular buildings.
6. Include in the net 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, the excess square footage shall not be included in the net square footage if any of the following applies:
(a) The excess square footage was constructed before July 1, 2002 or funded by a class B bond, impact aid revenue bond or capital outlay override budget request approved by the voters after August 1, 1998 and before June 30, 2002 or funded from unrestricted capital outlay expended before June 30, 2002.
(b) The excess square footage of new school facilities does not exceed twenty‑five per cent of the minimum square footage requirements pursuant to subsection C of this section.
(c) The excess square footage of expansions to school facilities does not exceed twenty‑five per cent of the minimum square footage requirements pursuant to subsection C of this section.
7. Require that excess square footage that is constructed after July 1, 2002 and that is not excluded pursuant to paragraph 6 of this subsection meets the minimum school facility adequacy guidelines in order to be eligible for building renewal monies as computed in section 15‑2031.
8. Exclude square footage built under a developer agreement according to section 15‑342, paragraph 33 until the school facilities board provides funding for the square footage under section 15-2041, subsection O.
9. Include square footage that a school district has leased to another entity, including square footage leased to a charter school that is sponsored by a school district pursuant to section 15‑183.
F. The school facilities board shall adopt rules establishing minimum school facility adequacy guidelines. The guidelines shall provide the minimum quality and quantity of school buildings and facilities and equipment necessary and appropriate to enable pupils to achieve the academic standards pursuant to section 15‑203, subsection A, paragraphs 12 and 13 and sections 15‑701 and 15‑701.01. At a minimum, the school facilities board shall address all of the following in developing these guidelines:
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 9, subdivision (d), and the highest parent quality ratings in the establishment of the guidelines.
H. The school facilities board may consider appropriate combinations of facilities or uses in making assessments of and curing existing deficiencies pursuant to section 15‑2002, subsection A, paragraph 1 and in certifying plans for new school facilities pursuant to section 15‑2002, subsection A, paragraph 5.
I. For the 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.
Sec. 20. Section 15-2104, Arizona Revised Statutes, is amended to read:
15-2104. Impact aid revenue bond building and debt service funds
A. If a school district issues impact aid revenue bonds under this article, the governing board shall establish:
1. An impact aid revenue bond building fund consisting of the net proceeds received from the sale of the bonds. The fund shall be a continuing fund that is not subject to reversion.
2. An impact aid revenue bond debt service fund consisting of monies received by the school district from impact aid revenues.
B. Monies in the impact aid revenue bond building fund and the impact aid revenue bond debt service fund may be used only for the purposes authorized by this article.
C. The school district shall provide the county treasurer with an impact aid revenue bond debt service schedule. The county treasurer shall keep an account of all school district debt service funds that shows the school district to which each fund belongs. The county treasurer shall credit to the impact aid revenue bond debt service fund an amount from impact aid revenues equal to the principal and interest that will become due on the impact aid revenue bonds during the current year. The treasurer shall receive and credit any interest or income earned by the debt service fund.
D. Notwithstanding any other provision in this article, the annual payment of principal and interest on impact aid revenue bonds each year shall not exceed seventy‑five per cent of the net impact aid revenues of the school district for the current year. For the purposes of this subsection, "net impact aid revenues" mean means impact aid revenues for the year after deducting the sum of the following amounts:
1. The amount of any increase in the school district's general budget limit pursuant to section 15‑905, subsections K, O and P.
2. The amount necessary to fund any budget override request adopted pursuant to section 15‑481, subsection F, J or M.
3. The amount that would be produced by levying the applicable qualifying tax rate as provided in section 15‑971, subsection B, minus the amount levied for primary school district taxes for the year pursuant to section 15‑992, except that if the result is a negative number, use the amount is zero.
