schools; real estate transactions; prohibitions

HB2376 - 572R - H Ver

House Engrossed

schools; real estate
transactions; prohibitions

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2376

AN
ACT

amending sections 15-341, 15-342,
15-491 and 15-789, Arizona Revised Statutes; relating to school
districts.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

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

START_STATUTE
15-341.

General powers and duties; immunity; delegation

A. Each school district governing board shall:

1. Prescribe and enforce policies and procedures to
govern the schools that are not inconsistent with the laws or rules prescribed
by the state board of education.

2. Exclude from schools all books, publications,
papers or audiovisual materials of a sectarian, partisan or denominational
character.� This paragraph does not prohibit the elective course allowed by
section 15-717.01.

3. Manage and control the school property within its
district, except that a district may enter into a partnership with an entity,
including a charter school, another school district or a military base, to
operate a school or offer educational services in a district building,
including at a vacant or partially used building, or in any building on the
entity's property pursuant to a written agreement between the parties.

4. Acquire school furniture, apparatus, equipment,
library books and supplies for the schools to use.

5. Prescribe the curricula and criteria for the
promotion and graduation of pupils as provided in sections 15-701 and 15-701.01.

6. Furnish, repair and insure, at full insurable
value, the school property of the district.

7. Construct school buildings on approval by a vote
of the district electors.

8. In the name of the district, convey property
belonging to the district and sold by the board.

9. Purchase school sites when authorized by a vote
of the district at an election conducted as nearly as practicable in the same
manner as the election provided in section 15-481 and held on a date
prescribed in section 15-491, subsection E, but such authorization shall
not necessarily specify the site to be purchased and such authorization shall
not be necessary to exchange unimproved property as provided in section 15-342,
paragraph 23.
A school district governing board may
not purchase any school site pursuant to this paragraph if a charter school or
private school is operating at the school site.

10. Construct, improve and furnish buildings used
for school purposes when such buildings or premises are leased from the
national park service.

11. Purchase school sites or construct, improve and
furnish school buildings from the proceeds of the sale of school property only
on approval by a vote of the district electors.�
A school
district governing board may not purchase any school site pursuant to this
paragraph if a charter school or private school is operating at the school
site.

12. Hold pupils to strict account for disorderly
conduct on school property.

13. Discipline students for disorderly conduct on
the way to and from school.

14. Except as provided in section 15-1224,
deposit all monies received by the district as gifts, grants and devises with
the county treasurer who shall credit the deposits as designated in the uniform
system of financial records.� If not inconsistent with the terms of the gifts,
grants and devises given, any balance remaining after expenditures for the
intended purpose of the monies have been made shall be used to reduce school
district taxes for the budget year, except that in the case of accommodation schools
the county treasurer shall carry the balance forward for use by the county
school superintendent for accommodation schools for the budget year.

15. Provide that, if a parent or legal guardian
chooses not to accept a decision of the teacher as provided in paragraph 42 of
this subsection, the parent or legal guardian may request in writing that the
governing board review the teacher's decision. This paragraph does
not release school districts from any liability relating to a child's promotion
or retention.

16. Provide for adequate supervision over pupils in
instructional and noninstructional activities by certificated or
noncertificated personnel.

17. Use school monies received from the state and
county school apportionment exclusively to pay salaries of teachers and other
employees and contingent expenses of the district.

18. Annually report to the county school
superintendent on or before October 1 in the manner and form and on the blanks
prescribed by the superintendent of public instruction or county school
superintendent.� The board shall also report directly to the county school
superintendent or the superintendent of public instruction whenever required.

19. Deposit all monies received by school districts
other than student activities monies or monies from auxiliary operations as
provided in sections 15-1125 and 15-1126 with the county treasurer
to the credit of the school district except as provided in paragraph 20 of this
subsection and sections 15-1223 and 15-1224, and the board shall
spend the monies as provided by law for other school funds.

20. Establish bank accounts in which the board
during a month may deposit miscellaneous monies received directly by the
district.� The board shall remit monies deposited in the bank accounts at least
monthly to the county treasurer for deposit as provided in paragraph 19 of this
subsection and in accordance with the uniform system of financial records.

21. Prescribe and enforce policies and procedures
for disciplinary action against a teacher who engages in conduct that is a
violation of the policies of the governing board but that is not cause for
dismissal of the teacher or for revocation of the certificate of the
teacher. Disciplinary action may include suspension without pay for
a period of time not to exceed ten school days.� Disciplinary action shall not
include suspension with pay or suspension without pay for a period of time
longer than ten school days. The procedures shall include notice,
hearing and appeal provisions for violations that are cause for disciplinary
action.� The governing board may designate a person or persons to act on behalf
of the board on these matters.

22. Prescribe and enforce policies and procedures
for disciplinary action against an administrator who engages in conduct that is
a violation of the policies of the governing board regarding duties of
administrators but that is not cause for dismissal of the administrator or for
revocation of the certificate of the administrator.� Disciplinary action may
include suspension without pay for a period of time not to exceed ten school
days.� Disciplinary action shall not include suspension with pay or suspension
without pay for a period of time longer than ten school days. The
procedures shall include notice, hearing and appeal provisions for violations
that are cause for disciplinary action.� The governing board may designate a
person or persons to act on behalf of the board on these
matters. For violations that are cause for dismissal, the provisions
of notice, hearing and appeal in chapter 5, article 3 of this title apply.� The
filing of a timely request for a hearing suspends the imposition of a
suspension without pay or a dismissal pending completion of the hearing.

23. Notwithstanding sections 13-3108 and 13-3120,
prescribe and enforce policies and procedures that prohibit a person from
carrying or possessing a weapon on school grounds unless the person is a peace
officer or has obtained specific authorization from the school administrator.

24. Prescribe and enforce policies and procedures
relating to the health and safety of all pupils participating in district-sponsored
practice sessions or games or other interscholastic athletic activities,
including:

(a) The provision of water.

(b) Guidelines, information and forms, developed in
consultation with a statewide private entity that supervises interscholastic
activities, to inform and educate coaches, pupils and parents of the dangers of
concussions and head injuries and the risks of continued participation in
athletic activity after a concussion. The policies and procedures
shall require that, before a pupil participates in an athletic activity, the
pupil and the pupil's parent sign an information form at least once each school
year that states that the parent is aware of the nature and risk of
concussion.� The policies and procedures shall require that a pupil who is
suspected of sustaining a concussion in a practice session, game or other
interscholastic athletic activity be immediately removed from the athletic
activity and that the pupil's parent or guardian be notified.� A coach from the
pupil's team or an official or a licensed health care provider may remove a
pupil from play.� A team parent may also remove the parent's own child from
play.� A pupil may return to play on the same day if a health care provider
rules out a suspected concussion at the time the pupil is removed from play.�
On a subsequent day, the pupil may return to play if the pupil has been
evaluated by and received written clearance to resume participation in athletic
activity from a health care provider who has been trained in evaluating and
managing concussions and head injuries. A health care provider who
is a volunteer and who provides clearance to participate in athletic activity
on the day of the suspected injury or on a subsequent day is immune from civil
liability with respect to all decisions made and actions taken that are based
on good faith implementation of the requirements of this subdivision, except in
cases of gross negligence or wanton or wilful neglect. A school
district, school district employee, team coach, official or team volunteer or a
parent or guardian of a team member is not subject to civil liability for any
act, omission or policy undertaken in good faith to comply with the
requirements of this subdivision or for a decision made or an action taken by a
health care provider. A group or organization that uses property or
facilities owned or operated by a school district for athletic activities shall
comply with the requirements of this subdivision.� A school district and its
employees and volunteers are not subject to civil liability for any other
person or organization's failure or alleged failure to comply with the requirements
of this subdivision. This subdivision does not apply to teams that
are based in another state and that participate in an athletic activity in this
state.� For the purposes of this subdivision, athletic activity does not
include dance, rhythmic gymnastics, competitions or exhibitions of academic
skills or knowledge or other similar forms of physical noncontact activities,
civic activities or academic activities, whether engaged in for the purposes of
competition or recreation. For the purposes of this subdivision,
"health care provider" means a physician who is licensed pursuant to
title 32, chapter 13, 14 or 17, an athletic trainer who is licensed pursuant to
title 32, chapter 41, a nurse practitioner who is licensed pursuant to title
32, chapter 15, and a physician assistant who is licensed pursuant to title 32,
chapter 25.

(c) Guidelines, information and forms that are
developed in consultation with a statewide private entity that supervises
interscholastic activities to inform and educate coaches, pupils and parents of
the dangers of heat-related illnesses, sudden cardiac death and
prescription opioid use. Before a pupil participates in any district-sponsored
practice session or game or other interscholastic athletic activity, the pupil
and the pupil's parent must be provided with information at least once each
school year on the risks of heat-related illnesses, sudden cardiac death
and prescription opioid addiction.

25. Establish an assessment, data gathering and
reporting system as prescribed in chapter 7, article 3 of this title.

26. Provide special education programs and related
services pursuant to section 15-764, subsection A to all children with
disabilities as defined in section 15-761.

27. Administer competency tests prescribed by the
state board of education for the graduation of pupils from high school.

28. Ensure that insurance coverage is secured for
all construction projects for purposes of general liability, property damage
and workers' compensation and secure performance and payment bonds for all construction
projects.

29. Collect and maintain information about each
current and former teacher's educational and teaching background and experience
in a particular academic content subject area. A school district
shall either post the information on the school district's website or make the
information available for inspection on request of parents and guardians of
pupils enrolled at a school. This paragraph does not require any
school to release personally identifiable information in relation to any
teacher, including the teacher's address, salary, social security number or
telephone number.

30. Report to local law enforcement agencies any
suspected crime against a person or property that is a serious offense as
defined in section 13-706 or that involves a deadly weapon or dangerous
instrument or serious physical injury and any conduct that poses a threat of
death or serious physical injury to employees, students or anyone on the
property of the school.� This paragraph does not limit or preclude the
reporting by a school district or an employee of a school district of suspected
crimes other than those required to be reported by this
paragraph. For the purposes of this paragraph, "dangerous
instrument", "deadly weapon" and "serious physical
injury" have the same meanings prescribed in section 13-105.

31. In conjunction with local law enforcement
agencies and emergency response agencies, develop an emergency response plan
for each school in the school district in accordance with minimum standards
developed jointly by the department of education and the division of emergency
management within the department of emergency and military affairs.� Any
emergency response plan developed pursuant to this paragraph must address how
the school and emergency responders will communicate with and provide
assistance to students with disabilities.

32. Provide written notice to the parents or
guardians of all students enrolled in the school district at least ten days
before a public meeting to discuss closing a school within the school
district. The notice shall include the reasons for the proposed
closure and the time and place of the meeting. The governing board
shall fix a time for a public meeting on the proposed closure not less than ten
days before voting in a public meeting to close the school.� The school district
governing board shall give notice of the time and place of the
meeting. At the time and place designated in the notice, the school
district governing board shall hear reasons for or against closing the
school. The school district governing board is exempt from this
paragraph if the governing board determines that the school shall be closed
because it poses a danger to the health or safety of the pupils or employees of
the school. A governing board may consult with the division of
school facilities within the department of administration for technical
assistance and for information on the impact of closing a
school. The information provided from the division of school
facilities within the department of administration shall not require the
governing board to take or not take any action.

33. Incorporate instruction on Native American
history into appropriate existing curricula.

34. Prescribe and enforce policies and procedures:

(a) Allowing pupils who have been diagnosed with
anaphylaxis by a health care provider licensed pursuant to title 32, chapter
13, 14, 17 or 25 or by a registered nurse practitioner licensed and certified
pursuant to title 32, chapter 15 to carry and self-administer emergency
medications, including epinephrine delivery systems, while at school and at
school-sponsored activities. The pupil's name on the
prescription label on the medication container or on the medication device and
annual written documentation from the pupil's parent or guardian to the school
that authorizes possession and self-administration is sufficient proof
that the pupil is entitled to possess and self-administer the
medication. The policies shall require a pupil who uses an
epinephrine delivery system while at school and at school-sponsored
activities to notify the nurse or the designated school staff person of the use
of the medication as soon as practicable.� A school district and its employees
are immune from civil liability with respect to all decisions made and actions
taken that are based on good faith implementation of the requirements of this
subdivision, except in cases of wanton or wilful neglect.

(b) For the emergency administration of epinephrine
delivery systems by a trained employee of a school district pursuant to section
15-157.

35. Allow the possession and self-administration
of prescription medication for breathing disorders in handheld inhaler devices
by pupils who have been prescribed that medication by a health care
professional licensed pursuant to title 32. The pupil's name on the
prescription label on the medication container or on the handheld inhaler
device and annual written documentation from the pupil's parent or guardian to
the school that authorizes possession and self-administration is
sufficient proof that the pupil is entitled to possess and self-administer
the medication. A school district and its employees are immune from civil
liability with respect to all decisions made and actions taken that are based
on a good faith implementation of the requirements of this paragraph.

36. Prescribe and enforce policies and procedures to
prohibit pupils from harassing, intimidating and bullying other pupils on
school grounds, on school property, on school buses, at school bus stops, at
school-sponsored events and activities and through the use of electronic
technology or electronic communication on school computers, networks, forums
and mailing lists that include the following components:

(a) A procedure for pupils, parents and school
district employees to confidentially report to school officials incidents of
harassment, intimidation or bullying. The school shall make
available written forms designed to provide a full and detailed description of
the incident and any other relevant information about the incident.

(b) A requirement that school district employees
report in writing suspected incidents of harassment, intimidation or bullying
to the appropriate school official and a description of appropriate
disciplinary procedures for employees who fail to report suspected incidents
that are known to the employee.

(c) A requirement that, at the beginning of each
school year, school officials provide all pupils with a written copy of the
rights, protections and support services available to a pupil who is an alleged
victim of an incident reported pursuant to this paragraph.

(d) If an incident is reported pursuant to this
paragraph, a requirement that school officials provide a pupil who is an
alleged victim of the incident with a written copy of the rights, protections
and support services available to that pupil.

(e) A formal process for documenting reported
incidents of harassment, intimidation or bullying and providing for the
confidentiality, maintenance and disposition of this documentation.� School
districts shall maintain documentation of all incidents reported pursuant to
this paragraph for at least six years. The school shall not use that
documentation to impose disciplinary action unless the appropriate school
official has investigated and determined that the reported incidents of harassment,
intimidation or bullying occurred. If a school provides
documentation of reported incidents to persons other than school officials or
law enforcement, all individually identifiable information shall be redacted.

(f) A formal process for the appropriate school
officials to investigate suspected incidents of harassment, intimidation or
bullying, including procedures for notifying the alleged victim and the alleged
victim's parent or guardian when a school official or employee becomes aware of
the suspected incident of harassment, intimidation or bullying.

(g) Disciplinary procedures for pupils who have
admitted or been found to have committed incidents of harassment, intimidation
or bullying.

(h) A procedure that sets forth consequences for
submitting false reports of incidents of harassment, intimidation or bullying.

(i) Procedures designed to protect the health and
safety of pupils who are physically harmed as the result of incidents of
harassment, intimidation and bullying, including, if appropriate, procedures to
contact emergency medical services or law enforcement agencies, or both.

(j) Definitions of harassment, intimidation and
bullying.

37. Prescribe and enforce policies and procedures
regarding changing or adopting attendance boundaries that include the following
components:

(a) A procedure for holding public meetings to
discuss attendance boundary changes or adoptions that allows public comments.

(b) A procedure to notify the parents or guardians
of the students affected, including assurance that, if that school remains open
as part of the boundary change and capacity is available, students assigned to
a new attendance area may stay enrolled in their current school.

(c) A procedure to notify the residents of the
households affected by the attendance boundary changes.

(d) A process for placing public meeting notices and
proposed maps on the school district's website for public review, if the school
district maintains a website.

(e) A formal process for presenting the attendance
boundaries of the affected area in public meetings that allows public comments.

(f) A formal process for notifying the residents and
parents or guardians of the affected area as to the decision of the governing
board on the school district's website, if the school district maintains a
website.

(g) A formal process for updating attendance
boundaries on the school district's website within ninety days after an adopted
boundary change. The school district shall send a direct link to the
school district's attendance boundaries website to the department of real
estate.

38. If the state board of education determines that
the school district has committed an overexpenditure as defined in section 15-107,
provide a copy of the fiscal management report submitted pursuant to section 15-107,
subsection H on its website and make copies available to the public on
request. The school district shall comply with a request within five
business days after receipt.

39. Ensure that the contract for the superintendent
is structured in a manner in which up to twenty percent of the total annual
salary included for the superintendent in the contract is classified as
performance pay. This paragraph does not require school districts to increase
total compensation for superintendents. Unless the school district
governing board votes to implement an alternative procedure at a public meeting
called for this purpose, the performance pay portion of the superintendent's
total annual compensation shall be determined as follows:

(a) Twenty-five percent of the performance pay
shall be determined based on the percentage of academic gain determined by the
department of education of pupils who are enrolled in the school district
compared to the academic gain achieved by the highest ranking of the fifty
largest school districts in this state. For the purposes of this
subdivision, the department of education shall determine academic gain by the
academic growth achieved by each pupil who has been enrolled at the same school
in a school district for at least five consecutive months measured against that
pupil's academic results in the 2008-2009 school year. For the
purposes of this subdivision, of the fifty largest school districts in this
state, the school district with pupils who demonstrate the highest statewide
percentage of overall academic gain measured against academic results for the
2008-2009 school year shall be assigned a score of 100 and the school
district with pupils who demonstrate the lowest statewide percentage of overall
academic gain measured against academic results for the 2008-2009 school
year shall be assigned a score of 0.

(b) Twenty-five percent of the performance pay
shall be determined by the percentage of parents of pupils who are enrolled at
the school district who assign a letter grade of "A" to the school on
a survey of parental satisfaction with the school district. The
parental satisfaction survey shall be administered and scored by an independent
entity that is selected by the governing board and that demonstrates sufficient
expertise and experience to accurately measure the results of the survey. The
parental satisfaction survey shall use standard random sampling procedures and
provide anonymity and confidentiality to each parent who participates in the
survey. The letter grade scale used on the parental satisfaction
survey shall direct parents to assign one of the following letter grades:

(i) A letter grade of "A" if the school
district is excellent.

(ii) A letter grade of "B" if the school
district is above average.

(iii) A letter grade of "C" if the school
district is average.

(iv) A letter grade of "D" if the school
district is below average.

(v) A letter grade of "F" if the school
district is a failure.

(c) Twenty-five percent of the performance pay
shall be determined by the percentage of teachers who are employed at the
school district and who assign a letter grade of "A" to the school on
a survey of teacher satisfaction with the school. The teacher
satisfaction survey shall be administered and scored by an independent entity
that is selected by the governing board and that demonstrates sufficient
expertise and experience to accurately measure the results of the
survey. The teacher satisfaction survey shall use standard random
sampling procedures and provide anonymity and confidentiality to each teacher
who participates in the survey.� The letter grade scale used on the teacher
satisfaction survey shall direct teachers to assign one of the following letter
grades:

(i) A letter grade of "A" if the school
district is excellent.

(ii) A letter grade of "B" if the school
district is above average.

(iii) A letter grade of "C" if the school
district is average.

(iv) A letter grade of "D" if the school
district is below average.

(v) A letter grade of "F" if the school
district is a failure.

(d) Twenty-five percent of the performance pay
shall be determined by other criteria selected by the governing board.

40. Maintain and store permanent public records of
the school district as required by law. Notwithstanding section 39-101,
the standards adopted by the Arizona state library, archives and public records
for the maintenance and storage of school district public records shall allow
school districts to elect to satisfy the requirements of this paragraph by
maintaining and storing these records either on paper or in an electronic
format, or a combination of a paper and electronic format.

41. Adopt in a public meeting and implement policies
for principal evaluations. Before adopting principal evaluation
policies, the school district governing board shall provide opportunities for
public discussion on the proposed policies. The governing board
shall adopt policies that:

(a) Are designed to improve principal performance
and improve student achievement.

(b) Include the use of quantitative data on the
academic progress for all students, which shall account for between twenty
percent and thirty-three percent of the evaluation outcomes.

(c) Include four performance classifications,
designated as highly effective, effective, developing and ineffective.

(d) Describe both of the following:

(i) The methods used to evaluate the performance of
principals, including the data used to measure student performance and job
effectiveness.

(ii) The formula used to determine evaluation
outcomes.

42. Prescribe and enforce policies and procedures
that define the duties of principals and teachers. These policies
and procedures shall authorize teachers to take and maintain daily classroom
attendance, make the decision to promote or retain a pupil in a grade in common
school or to pass or fail a pupil in a course in high school, subject to review
by the governing board in the manner provided in section 15-342,
paragraph 11.

43. Prescribe and enforce policies and procedures
for the emergency administration by an employee of a school district pursuant
to section 36-2267 of naloxone hydrochloride or any other opioid
antagonist approved by the United States food and drug administration.

44. In addition to the notification requirements
prescribed in paragraph 36 of this subsection, prescribe and enforce reasonable
and appropriate policies to notify a pupil's parent or guardian if any person
engages in harassing, threatening or intimidating conduct against that pupil.�
A school district and its officials and employees are immune from civil
liability with respect to all decisions made and actions taken that are based
on good faith implementation of the requirements of this paragraph, except in
cases of gross negligence or wanton or wilful neglect.� A person engages in
threatening or intimidating if the person threatens or intimidates by word or
conduct to cause physical injury to another person or serious damage to the
property of another on school grounds.� A person engages in harassment if, with
intent to harass or with knowledge that the person is harassing another person,
the person anonymously or otherwise contacts, communicates or causes a
communication with another person by verbal, electronic, mechanical, telephonic
or written means in a manner that harasses on school grounds or substantially
disrupts the school environment.

45. Each fiscal year, provide to each school
district employee a total compensation statement that is broken down by
category of benefit or payment and that includes, for that employee, at least
all of the following:

(a) Base salary and any additional pay.

(b) Medical benefits and the value of any employer-paid
portions of insurance plan premiums.

(c) Retirement benefit plans, including social
security.

(d) Legally required benefits.

(e) Any paid leave.

(f) Any other payment made to or on behalf of the
employee.

(g) Any other benefit provided to the employee.

46. Develop and adopt in a public meeting policies
to allow for visits, tours and observations of all classrooms by parents of
enrolled pupils and parents who wish to enroll their children in the school
district unless a visit, tour or observation threatens the health and safety of
pupils and staff.� These policies and procedures must be easily accessible from
the home page on each school's website.

B. Notwithstanding subsection A, paragraphs 7, 9 and
11 of this section, the county school superintendent may construct, improve and
furnish school buildings or purchase or sell school sites in the conduct of an
accommodation school.

C. If any school district acquires real or personal
property, whether by purchase, exchange, condemnation, gift or otherwise, the
governing board shall pay to the county treasurer any taxes on the property
that were unpaid as of the date of acquisition, including penalties and
interest.� The lien for unpaid delinquent taxes, penalties and interest on
property acquired by a school district:

1. Is not abated, extinguished, discharged or merged
in the title to the property.

2. Is enforceable in the same manner as other
delinquent tax liens.

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

E. A school district, its governing board members,
its school council members and its employees are immune from civil liability
for the consequences of adopting and implementing policies and procedures
pursuant to subsection A of this section and section 15-342.� This waiver
does not apply if the school district, its governing board members, its school
council members or its employees are guilty of gross negligence or intentional
misconduct.

F. A governing board may delegate in writing to a
superintendent, principal or head teacher the authority to prescribe procedures
that are consistent with the governing board's policies.

G. Notwithstanding any other provision of this
title, a school district governing board shall not take any action that would
result in a reduction of pupil square footage unless the governing board
notifies the school facilities oversight board established by section 41-5701.02
of the proposed action and receives written approval from the school facilities
oversight board to take the action. A reduction includes an increase
in administrative space that results in a reduction of pupil square footage or
sale of school sites or buildings, or both. A reduction includes a
reconfiguration of grades that results in a reduction of pupil square footage
of any grade level. This subsection does not apply to temporary
reconfiguration of grades to accommodate new school construction if the
temporary reconfiguration does not exceed one year. The sale of
equipment that results in a reduction that falls below the equipment
requirements prescribed in section 41-5711, subsection B is subject to
commensurate withholding of school district district additional assistance
monies pursuant to the direction of the school facilities oversight board.�
Except as provided in section 15-342, paragraph 10, proceeds from the
sale of school sites, buildings or other equipment shall be deposited in the
school plant fund as provided in section 15-1102.

H. Subsections C through G of this section apply to
a county board of supervisors and a county school superintendent when operating
and administering an accommodation school.

I. A school district governing board may delegate
authority in writing to the superintendent of the school district to submit
plans for new school facilities to the school facilities oversight board for
the purpose of certifying that the plans meet the minimum school facility
adequacy guidelines prescribed in section 41-5711.

J. For the purposes of subsection A, paragraph 37 of
this section, attendance boundaries may not be used to require students to
attend certain schools based on the student's place of residence.
END_STATUTE

Sec. 2. Section 15-342, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-342.

Discretionary powers

The governing board
of a school district
may:

1. Expel pupils for misconduct.

2. Exclude from grades one through eight children
who are
under six years of age.

3. Make such separation of groups of pupils as
it

the governing board
deems advisable.

4. Maintain such special schools during vacation as
deemed necessary for the benefit of the pupils of the school district.

5. Allow 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 allow 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 to operate 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 if the sale or lease of the property will not
affect the normal operations of a school within the school district.

8. Annually budget and spend monies 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 twenty years subject to voter approval for
construction of school buildings as prescribed in section 15-341,
subsection A, paragraph 7.
� A school district governing
board may not enter into a lease-purchase agreement to purchase any
school building or grounds pursuant to this paragraph if a charter school or
private school is operating in the school building or on the school grounds.

10. Subject to title 41, chapter 56, 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 twenty 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
.� A school district governing board may not enter into a lease-purchase
agreement to purchase any school building or grounds pursuant to this paragraph
if a charter school or private school is operating in the school building or on
the school grounds.
�Authorization by the school district electors in an
election is not required
for a sale, lease or lease-purchase
agreement pursuant to this paragraph
if one of the following
requirements is met:

(a) The market value of the school property is less
than $50,000 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
division
of school facilities
within the department of administration or
at the direction of the school facilities oversight board, or its predecessor.

(c) The transaction involves the sale of improved or
unimproved property pursuant to an agreement with the school facilities
oversight 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 oversight board in exchange for monies from the school facilities
oversight board for the acquisition of a more suitable school site.� For a sale
of property acquired by a school district before July 9, 1998, a school
district shall transfer to the school facilities oversight 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 oversight board, a school district shall only use
those remaining proceeds for future land purchases approved by the school
facilities oversight board, or for capital improvements not funded by the
school facilities oversight 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 if 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 toward paying 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 title 41, chapter 56.

(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

in
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

the governing board
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

more than
ten school days
,
if the board determines that suspension is warranted
pursuant to section 15-341, subsection A, paragraph 21 or 22.

16. Dedicate school property within an incorporated
city or town to that 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 the city,
town or county, there will be conferred on 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.
� A school district governing board may not enter
into an option agreement to purchase any school site pursuant to this paragraph
if a charter school or private school is operating at the school site.

18. Donate surplus or outdated learning materials,
educational equipment and furnishings to nonprofit community organizations if
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 to assess 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 education 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, if 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 and if the governing board determines that the exchange is necessary
to protect the health, safety or welfare of pupils or if 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 fees shall not 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 fees shall not 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 $250,000 for a district that
uses section 15-949.

(b) Monies distributed at the direction of the
school facilities oversight board established by section 41-5701.02 or by
the
school facilities
division
of school
facilities
within the department of administration pursuant to title 41,
chapter 56.

(c) Monies specifically donated for the purpose of
constructing school buildings.

This paragraph does not eliminate the
requirement for an election to raise revenues for a capital outlay override
pursuant to section 15-481 or a bond election pursuant to section 15-491.
� A school district governing board may not purchase any school site
pursuant to this paragraph if a charter school or private school is operating
at the school site.

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
promote 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 using 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

spend
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, spend
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 to standardize 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 performing 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 monies other than school district monies and cooperatively
design school facilities that comply with the adequacy standards prescribed in
section 41-5711 and the square footage per pupil requirements pursuant to
section 41-5741, subsection D, paragraph 3, subdivision
(b). The design plans and location of any such school facility shall
be submitted to the school facilities oversight board for approval pursuant to
section 41-5741, subsection 0. If the school facilities
oversight 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 at the direction of the school facilities oversight
board pursuant to section 41-5741. 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 41-5741. The school district
shall reimburse the party in partnership with the school district from the
monies paid to the school district pursuant to section 41-5741, in
accordance with the voluntary partnership agreement. Before the
school facilities oversight board directs the distribution of any monies
pursuant to this subsection, the school district shall demonstrate to the
school facilities oversight board that the facilities to be funded pursuant to
section 41-5741, subsection O meet the minimum adequacy standards
prescribed in section 41-5711.� 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 oversight board and a school facility is
financed and built on the land pursuant to this paragraph, the school
facilities oversight board shall direct the distribution of an amount equal to
twenty percent 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 41-5741. If a school
district acquires land by donation at an appropriate school site approved by
the school facilities oversight board and a school facility is financed and
built on the land pursuant to this paragraph, the school district shall not
receive monies for the donation of real property pursuant to section 41-5741,
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 allowed by federal law, opt
out of federal grant opportunities if the governing board determines that the
federal requirements impose unduly burdensome reporting requirements.

37. Prescribe and enforce policies and procedures
for the emergency administration of inhalers by trained employees of the school
district and nurses who are under contract with the school district pursuant to
section 15-158.

38. Develop policies and procedures to allow
principals to budget for or assist with budgeting federal, state and local
monies.

39. Subject to article IX, section 7, Constitution
of Arizona, the laws pertaining to travel and subsistence, gifts, grants,
including federal grants, or devises and policies adopted by the department of
education, provide food and beverages at school district events, including
official school functions and trainings.
END_STATUTE

Sec. 3. Section 15-491, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-491.

Elections on school property; exceptions

A. The governing board of a school district may, and
on petition of fifteen percent 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.�
an authorization
pursuant to this paragraph does not allow a school district governing board to
purchase a school site or building if the purchase is prohibited because a
charter school or private school is operating at the school site or in the
school building.

3. To decide whether the bonds of the school
district shall be issued and sold for the purpose of raising monies 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 not
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 twenty 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 twenty or more years of the school
buildings or grounds listed on the ballot within twenty years after 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 twenty 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. A petition is not required for holding 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 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 and the election notice and procedures to be conducted 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 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 informational pamphlet and
ballot prepared for the override election. Mailing of the
information required for both the override and bond elections shall constitute
compliance with the notice provisions of this section.

E. The elections to be held pursuant to this section
shall only be held on dates prescribed by section 16-204, 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 $50,000.

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 new
construction and renovation of school buildings in accordance with state law.

2. For a school district that is a career technical
education district, the ballot shall include the following statement:

________, a career 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 career
technical education district.

3. The ballot shall conform to the requirements of
title 35, chapter 3, article 3.

4. At least eighty-five days before the
election, the school district shall submit proposed ballot language to the
county school superintendent and 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 after
receiving the proposed ballot language, shall notify the school district and
the county school superintendent of the director's objections, and the school
district shall resubmit revised ballot language to the director for approval.

5. Not later than thirty-five days before a
class B bond election conducted pursuant to this section, the school district
shall mail an informational pamphlet prepared by the county school
superintendent to each household that contains a qualified elector in the
school district. The informational 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 oversight 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 oversight 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 $100,000.

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 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
after receiving
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. Not later than thirty-five days before an
impact aid revenue bond election conducted pursuant to this section, the school
district shall mail an informational pamphlet prepared by the county school
superintendent to each household that contains a qualified elector in the school
district.� The informational 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
oversight
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
oversight
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 informational pamphlet, except that up to ten
percent 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 shall 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 allowed an opportunity to comment. At a minimum, the
update shall include a comparison of the current status and the original
projections on the construction of capital improvements, the costs of capital
improvements and the costs of capital improvements in progress or completed
since the prior meeting and the future capital bonding plans of the school
district. The school district shall include in the public meeting a
discussion of the school district's use of state capital aid and voter-approved
capital overrides in funding capital improvements, if any.

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. Not later than thirty-five days before the
election, the school district shall mail an informational pamphlet prepared by
the county school superintendent to each household in the school district that
contains a qualified elector.� The informational 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 informational 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
oversight board.

(e) A complete list of each capital improvement that
was presented in the informational 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 oversight board.

(f) Arguments for and against the proposed change,
if submitted, as provided by section 15-481, subsection B, paragraph
9. The ballot arguments for the proposed change shall be signed as
the governing board of the school district without listing any member's
individual name for the arguments for the proposed change.

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. Not later than thirty-five days before the
election, the school district shall mail an informational pamphlet prepared by
the county school superintendent to each household in the school district that
contains a qualified elector. The informational 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. The ballot arguments for the proposed change shall be signed as
the governing board of the school district without listing any member's
individual name for the arguments for the proposed change.

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. 4. Section 15-789, Arizona Revised Statutes, is amended to read:

START_STATUTE
15-789.

Contracting and cooperative arrangements for career and technical
education and vocational education; prohibition; joint advisory committee

A. The governing board of a school district may
contract with any public body or with any private person for the purpose of
providing career and technical education and vocational
education. For the purposes of this subsection, school districts are
exempt from section 15-213.

B. School districts or community college districts
may independently or jointly
make application

apply
for career and technical education and vocational
education monies.

C. School districts and community college districts
may provide for joint cooperation among themselves and with each other and with
any educational institution eligible to receive career and technical education
and vocational education monies as provided in section 15-784 for the
purposes of providing career and technical education and vocational education
and
for the use of

using
each
other's facilities and personnel.

D. School districts, among themselves or with
community college districts, may jointly purchase, sell, lease or lease-purchase
land, buildings or other real or personal property for the purposes of
providing career and technical education and vocational education, including
establishing a jointly owned and operated vocational and technical center, if:

1. The districts enter into an intergovernmental
agreement or other written contract pursuant to section 11-952.

2. The state board of education and, if a community
college district is a party to the agreement, the governing board of the
community college district approve the intergovernmental agreement or other
written contract.

E. A school district may not purchase
or enter into a lease-purchase agreement to purchase any land, buildings
or other real property pursuant to subsection D of this section if a charter
school or private school is operating on the land, in the building or on the
real property.

E.

F.
If
one or more school districts, among themselves or with a community college
district, enter into an intergovernmental agreement or other written contract
to establish a jointly owned and operated vocational and technical center, the
governing boards of the districts shall establish a joint advisory committee
for the vocational and technical center consisting of:

1. At least one member of each school district
governing board or a designated district staff representative appointed by the
respective school district governing board.

2. If a community college is a party to the
agreement, members of the community college district board or designated
district staff representatives appointed by the community college district
board equal in number to the total number of persons appointed pursuant to
paragraph 1 of this subsection.

3. Members engaged in commerce or industry in this
state equal in number to the total number of persons appointed pursuant to
paragraph 1 of this subsection, jointly appointed by the district governing
boards.

F.

G.
A
school district and a community college district may jointly accept gifts or
grants of monies, land or other real or personal property for the purpose of
providing career and technical education and vocational education and may
administer or dispose of the property in accordance with the purpose of the
gift or grant.
END_STATUTE