Official Summary Text
HB2381 - 572R - Senate Fact Sheet
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AS
PASSED BY COMMITTEE
AMENDED
A
RIZONA
S
TATE
S
ENATE
MASON HOLLER
LEGISLATIVE RESEARCH ANALYST
EDUCATION
COMMITTEE
Telephone: (602) 926-3171
RESEARCH
STAFF
TO:����������������� MEMBERS
OF THE SENATE
�����������������������
EDUCATION COMMITTEE
DATE:����������� March
26, 2026
SUBJECT:�����
Strike
everything amendment to
H.B. 2381
, relating to CTEDs
Purpose
Modifies
requirements relating to career technical education district (CTED) governance,
including the information that must be included in a CTED intergovernmental
agreement (IGA) or written contract and the apportionment of average daily
membership (ADM) for a satellite campus career technical education (CTE) course
or program. Outlines requirements on a CTE board relating to the monitoring of
CTED expenditures. Prohibits a school district from carrying forward more than
25 percent of any CTED monies received for CTE purposes, except as outlined.
Background
CTEDs are
responsible for providing CTE preparation programs designed to prepare students
for advanced CTE or entry into the workforce. The management and control of a
CTED are vested in the CTE board, including the content and quality of the
courses offered, teachers who provide instruction, and reimbursement of other
entities for facilities used by the CTED.
A school
district that is part of a CTED must use any CTED monies received to supplement
and not supplant base year CTE courses and for directly related equipment and
facilities, except as prescribed. Each participating school district must
provide a report to the CTE board and Arizona Department of Education (ADE)
that outlines the maintenance of effort and how monies were used to supplement
and not supplant base year CTE courses and directly related equipment and
facilities.
Any agreement
between a CTE board and another CTED, school district, charter school,
community college district (CCD) or public university must be in the form of an
IGA or other written contract, which must completely and accurately specify: 1)
the financial provisions of the agreement and the format for billing of all
services; 2) the accountability provisions of the agreement; 3) the responsibilities
of parties included in the agreement; 4) the type and quality of the
instruction that will be provided; 5) the transportation services that will be
provided and the manner in which transportation costs will be paid; 6) the
amount that the CTED will contribute to a course and amount of support required
from the other entity; 7) that the services provided be proportionally
calculated in the cost of delivering the service; 8) that the payment for
services will not exceed the cost of services provided; and 9) an itemized
listing of other goods and services provided to the CTED and that are paid for
from CTED funding.
A student who is
enrolled in a satellite campus CTE course or program generates a maximum ADM of
1.25. A school district or charter school and the CTED must determine the
apportionment of a student's 1.25 ADM between the school district or charter
school and the CTED. A school district or charter school must submit requests
to approve or add satellite campus CTE courses or programs to the CTE board for
approval. If the CTE board approves the request, the CTE board must submit the
request to the CTE Division of ADE for final approval. If the CTE Division
determines that a CTE course does not meet the criteria for approval, the CTE
board may appeal the CTE Division's decision to the State Board of Education
(SBE) acting as the State Board of Vocational Education (
A.R.S.
� 15-393
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
CTED IGA and
Written Contract Modifications
1.
Replaces the requirement for a CTED IGA or written contract to specify
the quality of the CTE instruction that will be provided under the IGA or
written contract with a requirement to specify the quality of each CTE
instructor, including the minimum qualifications, relevant industry experience
and industry-relevant professional development, that will be provided under the
IGA or written contract.
2.
Requires the school district, charter school, public university or CCD
to oversee CTE instructor evaluation, unless the IGA or written contract
provides otherwise.
3.
Adds,
to the information that a CTED IGA or written contract must specify:
a)
that any party to the IGA or written contract may bring an action
against another party under the IGA or written contract only after
participating in good faith mediation that is administered by a trained and
impartial mediator; and
b)
that
if a CTED and school district do not agree to a specified apportionment by July
1, the SBE acting as the State Board of Vocational Education must mediate the
dispute and determine the apportionment for the school year by August 1.
4.
Specifies that any CTED IGA or other written contract must be executed
by July 1 of the first year in which a CTE course or program will be offered at
a satellite campus pursuant to the IGA or written contract.
Satellite
Campus CTE Course and Program Approval and Funding
5.
Requires, if the CTE Division determines that a satellite campus course
or program does not meet the criteria for approval as a CTE course or program,
the CTE Division to provide the CTE board a written determination that includes
the reasons for the determination.
6.
Requires a CTE board and the CTE Division to accept and consider
requests to add satellite campus CTE courses and programs from July 1 to June
30 of each year and determine whether to approve each request within an
undetermined number of days after receiving the request.
7.
Requires,
if a CTE board does not approve a request to add a satellite campus CTE course
or program, the CTE board to provide the member school district or charter
school a written determination that includes the reasons for the CTE board's
determination.
8.
Allows
a member school district or charter school to amend a request that is not
approved to address the reasons for the disapproval.
9.
Requires
a CTE board to consider an amended request to add a satellite campus CTE course
or program in the same manner as an initial request.
10.
Removes the requirement for
a school district or charter school and CTED to determine the apportionment of
the 1.25 ADM for a student who is enrolled in a satellite campus CTE course or
program.
11.
Determines that, of the 1.25
ADM for a student enrolled in a satellite campus CTE course or program, a
maximum of 1.0 ADM must be attributed to the school district or charter school
and a maximum of 0.25 ADM must be attributed to the CTED, unless otherwise
apportioned pursuant to an IGA.
12.
Requires a school district
or charter school and CTED to determine the apportionment of the 0.25 ADM for a
student who is enrolled in a satellite campus CTE course or program pursuant to
a fully executed IGA.
13.
Stipulates that, in the
absence of an IGA, the school district or charter school may not report an ADM
for a satellite campus CTE course or program, and ADM may not be generated for
that satellite campus CTE course or program.
CTED
Expenditure Reporting and Requirements
14.
Specifies that the
management and control of a CTED vested in the CTE board includes
:
a)
the funding for the CTED's ADM; and
b)
the funding for the ADM generated by a satellite campus CTE course or
program.
15.
Requires a CTE board to:
a)
monitor how monies that are distributed by the CTED are used;
b)
maintain any financial records, documentation or information that is
reasonably necessary to monitor CTED expenditures;
c)
submit an annual report to each participating school district that
includes the aggregate CTED expenditures that directly support CTE courses or
programs that are provided at each participating school district; and
d)
on
request from a participating school district, provide additional information
and details about the expenditures.
16.
Prohibits
a school district that is part of a CTED from carrying forward more than 25
percent of any CTED monies received for any purpose related to CTE, as
determined by the school district.
17.
Allows
a school district to apply to the CTE board to use more than 25 percent of any
CTED monies received by submitting a capital plan to the CTE board with an
application.
18.
Authorizes a school district
to spend more than 25 percent of the CTED monies received in any fiscal year
only if:
a)
the CTE board approves the school district's capital plan before the
excess expenditures occur; and
b)
all
excess expenditures are pursuant to the capital plan.
19.
Specifies
that the CTE board is responsible for any funding relating to the CTED's ADM.
Miscellaneous
20.
Makes
technical and conforming changes.
21.
Becomes
effective on the general effective date.
Amendments Adopted by
Committee
1.
Adopted the strike-everything amendment.
2.
Restores the requirement for a CTED IGA to specify that the services
provided by the CTED, school district, charter school, public university or CCD
be proportionally calculated in the cost of delivering the service.
3.
Removes the authorization for a school district or charter school to use
funding that is generated by other CTE courses or programs to pay for the shortfall
of a satellite CTE course or program that generates insufficient ADM to pay for
the costs of delivering the service.
4.
Specifies that the management and control of a CTED vested in the CTE
board includes the funding for the ADM generated by a satellite campus CTE
course or program.
5.
Makes technical and conforming changes.
Senate Action
ED������ 3/25/26����������� DPA/SE��������� 5-2-0
Current Bill Text
Read the full stored bill text
HB2381 - 572R - H Ver
House Engrossed
school districts;
superintendents; benefits; restrictions
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2381
AN
ACT
amending section 15-503, Arizona
Revised Statutes; relating to school employees.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 15-503, Arizona Revised
Statutes, is amended to read:
START_STATUTE
15-503.
Superintendents, principals, head teachers and school
psychologists; terms of employment; evaluation; contract delivery and
acceptance; nonretention notice
A.
The
a school
district
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 no
earlier than fifteen
months before the
expiration of the
contract
expires
.� The term of employment of principals may be for any
period not exceeding three years, 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
charter school
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 and other school administrators
and certificated school psychologists in the school district. In
the development
developing
and
adoption of
adopting
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 governing 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 governing board designee shall provide assistance
and opportunities for the certificated school psychologist to improve
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
the person's contract unless, on or before April 15, the governing board, a
member of the board acting on behalf of the governing board or the
superintendent of the school district gives notice to the administrator or
certificated school psychologist of the governing board's intention not to
offer a new contract.� If the governing board has called for an override
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 the person's contract on or before June 15 unless,
no
not
later than five days after the override election excluding
Saturday, Sunday and legal holidays, the governing board, a member of the
governing board acting on behalf of the governing board or the superintendent
of the school district gives notice to the administrator or the certificated
school psychologist of the governing 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
after 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 governing 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
the person's place of residence as recorded in the school district records.
F. The governing board shall make available the
evaluation and performance classification 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.
G. Notwithstanding any other law, if
a school district employs a superintendent, an associate superintendent or an
assistant superintendent pursuant to this section, the school district may
offer or provide an employment benefit, including life insurance, a motor
vehicle allowance, a cell phone allowance and employer contributions to a
retirement plan, to the superintendent only if the school district offers or
provides the employment benefit on substantially equal terms to all employees
of the school district.� If a school district allows a superintendent described
in this subsection to receive a motor vehicle allowance, the superintendent is
ineligible to receive reimbursement for travel that is attributable to mileage
and the superintendent may use a motor vehicle that is owned or leased by the
school district only to transport students, employees or learning materials to
or from a school or school-related activity.� This subsection does not
prevent a superintendent described in this subsection from being a passenger in
a motor vehicle that is owned or leased by the school district for the purpose
of carpooling.
END_STATUTE