instructional time models; repeal

HB2659 - 572R - I Ver

REFERENCE TITLE:
instructional time models; repeal

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2659

Introduced by

Representative
Way

AN
ACT

amending sections 15-796 and 15-901,
Arizona Revised Statutes; repealing section 15-901.08, Arizona Revised
Statutes; amending section 15-1021, Arizona Revised Statutes; relating to
school district budgets.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 15-796, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-796.

Alternative education programs; alternative schools;
requirements; funding; definitions

A. The governing board of a school district may
contract with any public body or private person for the purpose of providing
alternative education programs or alternative schools.

B. On the approval of the parent or guardian of a
student or of a student who is an emancipated person, the superintendent of a
school district may recommend to the governing board the placement of the
student in an alternative education program or alternative school as provided
in this article.

C. An alternative education program or alternative
school may deliver the annual required instructional time or instructional
hours prescribed in section 15-797, subsection D or any other section to
students on any day of the week.

D. An alternative education program or alternative
school may enroll and begin to receive funding for a student without a
withdrawal form from the student's previous school if the withdrawal has been
verified in the student accountability information system and the alternative
education program or alternative school retains electronic documentation
validating the withdrawal.

E. Notwithstanding any other law, if the previous
school of a student who is enrolled in an alternative education program or
alternative school incorrectly codes the student as a graduate in the student
accountability information system, the alternative education program or
alternative school in which the student is currently enrolled may continue to
enroll the student.� On notification that a student who has been incorrectly
coded as a graduate is enrolled in an alternative education program or
alternative school, the department of education shall allocate funding for the
student beginning on the date of the student's enrollment in the alternative
education program or alternative school.

F. For the purposes of this section:

1. "Alternative education" means the
modification of the school course of study and adoption of teaching methods,
materials and techniques
, including using any instructional time
models pursuant to section 15-901.08,
to provide educationally for
students in grades six through twelve who are unable to profit from the regular
school course of study and environment.

2. "Student accountability information
system" means the student accountability information system established by
section 15-1041.
END_STATUTE

Sec. 2. Section 15-901, Arizona Revised Statutes, is amended to read:

START_STATUTE
15-901.

Definitions

A. In this title,
unless the context otherwise requires:

1. "Average daily membership" means the
total enrollment of fractional students and full-time students, minus
withdrawals, of each school day through the first one hundred days or two
hundred days in session, as applicable, for the current year. For
the purposes of this paragraph, "withdrawals" means students who are
formally withdrawn from schools or students who are absent for ten consecutive
school days, except for excused absences identified by the department of
education. For computation purposes, a student who is absent for
nine or fewer consecutive school days, including the last day of the school
year, is not a withdrawal and may not be subtracted from the total enrollment
of fractional students and full-time students. For the
purposes of this section, school districts and charter schools shall report
student absence data to the department of education at least once every sixty
days in session.� For computation purposes, the effective date of withdrawal
shall be retroactive to the last day of actual attendance of the student or
excused absence.
A school district or charter school
may satisfy any of the time and hours requirements prescribed in this
subsection in any manner prescribed in the school district's or charter
school's instructional time model adopted under section 15-901.08.

(a) "Fractional student" means:

(i) For common schools, a preschool child who is
enrolled in a program for preschool children with disabilities of at least
three hundred sixty minutes each week that meets at least two hundred sixteen
hours over the minimum number of days or a kindergarten student who is at least
five years of age before January 1 of the school year and enrolled in a school
kindergarten program that meets at least three hundred fifty-six hours
for a one hundred eighty-day school year, or the instructional hours
prescribed in this section. In computing the average daily
membership, preschool children with disabilities and kindergarten students
shall be counted as one-half of a full-time student. For
common schools, a part-time student is a student enrolled for less than
the total time for a full-time student as defined in this
section. A part-time common school student shall be counted as
one-fourth, one-half or three-fourths of a full-time
student if the student is enrolled in an instructional program that is at least
one-fourth, one-half or three-fourths of the time a full-time
student is enrolled as defined in subdivision (b) of this paragraph.� The hours
in which a student is scheduled to attend a common school during the regular
school day shall be included in the calculation of the average daily membership
for that student.

(ii) For high schools, a part-time student who
is enrolled in less than four subjects that count toward graduation as defined
by the state board of education, each of which, if taught each school day for
the minimum number of days required in a school year, would meet a minimum of
one hundred twenty-three hours a year, or the equivalent, in a recognized
high school. The average daily membership of a part-time high
school student shall be 0.75 if the student is enrolled in an instructional
program of three subjects that meet at least five hundred forty hours for a one
hundred eighty-day school year, or the instructional hours prescribed in
this section. The average daily membership of a part-time high
school student shall be 0.5 if the student is enrolled in an instructional
program of two subjects that meet at least three hundred sixty hours for a one
hundred eighty-day school year, or the instructional hours prescribed in
this section. The average daily membership of a part-time high
school student shall be 0.25 if the student is enrolled in an instructional
program of one subject that meets at least one hundred eighty hours for a one
hundred eighty-day school year, or the instructional hours prescribed in
this section. The hours in which a student is scheduled to attend a
high school during the regular school day shall be included in the calculation
of the average daily membership for that student.

(b) "Full-time student" means:

(i) For common schools, a student who is at least
six years of age before January 1 of a school year, who has not graduated from
the highest grade taught in the school district and who is regularly enrolled
in a course of study required by the state board of
education. First, second and third grade students or ungraded group
B children with disabilities who are at least five, but under six, years of age
by September 1 must be enrolled in an instructional program that meets for a total
of at least seven hundred twelve hours for a one hundred eighty-day
school year, or the instructional hours prescribed in this
section. Fourth, fifth, sixth, seventh and eighth grade students
must be enrolled in an instructional program that meets for a total of at least
eight hundred ninety hours for a one hundred eighty-day school year, or
the instructional hours prescribed in this section, including the equivalent
number of instructional hours for schools that operate on a one hundred forty-four-day
school year. The hours in which a student is scheduled to attend a
common school during the regular school day shall be included in the
calculation of the average daily membership for that student.

(ii) For high schools, a student who has not
graduated from the highest grade taught in the school district and who is
enrolled in at least an instructional program of four or more subjects that
count toward graduation as defined by the state board of education, each of
which, if taught each school day for the minimum number of days required in a
school year, would meet a minimum of one hundred twenty-three hours a
year, or the equivalent, that meets for a total of at least seven hundred
twenty hours for a one hundred eighty-day school year, or the
instructional hours prescribed in this section in a recognized high
school. A full-time student shall not be counted more than
once for computation of average daily membership. The average daily
membership of a full-time high school student shall be 1.0 if the student
is enrolled in at least four subjects that meet at least seven hundred twenty
hours for a one hundred eighty-day school year, or the equivalent
instructional hours prescribed in this section. The hours in which a
student is scheduled to attend a high school during the regular school day
shall be included in the calculation of the average daily membership for that
student.

(iii) If a child who has not reached five years of
age before September 1 of the current school year is admitted to kindergarten
and repeats kindergarten in the following school year, a school district or
charter school is not eligible to receive basic state aid on behalf of that
child during the child's second year of kindergarten. If a child who
has not reached five years of age before September 1 of the current school year
is admitted to kindergarten but does not remain enrolled, a school district or
charter school may receive a portion of basic state aid on behalf of that child
in the subsequent year. A school district or charter school may
charge tuition for any child who is ineligible for basic state aid pursuant to
this item.

(iv) Except as otherwise provided by law, for a full-time
high school student who is concurrently enrolled in two school districts or two
charter schools, the average daily membership shall not exceed 1.0.

(v) Except as otherwise provided by law, for any
student who is concurrently enrolled in a school district and a charter school,
the average daily membership shall be apportioned between the school district
and the charter school and shall not exceed 1.0. The apportionment
shall be based on the percentage of total time that the student is enrolled in
or in attendance at the school district and the charter school.

(vi) Except as otherwise provided by law, for any
student who is concurrently enrolled, pursuant to section 15-808, in a
school district and Arizona online instruction or a charter school and Arizona
online instruction, the average daily membership shall be apportioned between
the school district and Arizona online instruction or the charter school and
Arizona online instruction and shall not exceed 1.0. The
apportionment shall be based on the percentage of total time that the student
is enrolled in or in attendance at the school district and Arizona online
instruction or the charter school and Arizona online instruction.

(vii) For homebound or hospitalized, a student
receiving at least four hours of instruction per week.

(c) "Regular school day" means the
regularly scheduled class periods intended for instructional
purposes. Instructional purposes may include core subjects, elective
subjects, lunch, study halls, music instruction and other classes that advance
the academic instruction of pupils. Instructional purposes do not
include athletic practices or extracurricular clubs and activities.

2. "Budget year" means the fiscal year for
which the school district is budgeting and that immediately follows the current
year.

3. "Common school district" means a
political subdivision of this state offering instruction to students in
programs for preschool children with disabilities and kindergarten programs and
either:

(a) Grades one through eight.

(b) Grades one through nine pursuant to section 15-447.01.

4. "Current year" means the fiscal year in
which a school district is operating.

5. "Daily attendance" means:

(a) For common schools, days in which a pupil:

(i) Of a kindergarten program or ungraded, but not
group B children with disabilities, who is at least five, but under six, years
of age by September 1 attends at least three-quarters of the
instructional time scheduled for the day. If the total instruction
time scheduled for the year is at least three hundred fifty-six hours but
is less than seven hundred twelve hours, such attendance shall be counted as
one-half day of attendance. If the instructional time
scheduled for the year is at least six hundred ninety-two hours,
"daily attendance" means days in which a pupil attends at least one-half
of the instructional time scheduled for the day. Such attendance
shall be counted as one-half day of attendance.�
A school
district or charter school may satisfy any of the time and hours requirements
prescribed in this item in any manner prescribed in the school district's or
charter school's instructional time model adopted under section 15-901.08.

(ii) Of the first, second or third grades attends
more than three-quarters of the instructional time scheduled for the
day.
A school district or charter school may satisfy
any of the time and hours requirements prescribed in this item in any manner
prescribed in the school district's or charter school's instructional time
model adopted under section 15-901.08.

(iii) Of the fourth, fifth or sixth grades attends
more than three-quarters of the instructional time scheduled for the day,
except as provided in section 15-797.
A school
district or charter school may satisfy any of the time and hours requirements
prescribed in this item in any manner prescribed in the school district's or
charter school's instructional time model adopted under section 15-901.08.

(iv) Of the seventh or eighth grades attends more
than three-quarters of the instructional time scheduled for the day,
except as provided in section 15-797.
A school
district or charter school may satisfy any of the time and hours requirements
prescribed in this item in any manner prescribed in the school district's or
charter school's instructional time model adopted under section 15-901.08.

(b) For common schools, the attendance of a pupil at
three-quarters or less of the instructional time scheduled for the day
shall be counted as follows, except as provided in section 15-797 and
except that attendance for a fractional student shall not exceed the pupil's
fractional membership:

(i) If attendance for all pupils in the school is
based on quarter days, the attendance of a pupil shall be counted as one-fourth
of a day's attendance for each one-fourth of full-time
instructional time attended.�
A school district or charter school
may satisfy any of the time and hours requirements prescribed in this item in
any manner prescribed in the school district's or charter school's
instructional time model adopted under section 15-901.08.

(ii) If attendance for all pupils in the school is
based on half days, the attendance of at least three-quarters of the
instructional time scheduled for the day shall be counted as a full day's
attendance and attendance at a minimum of one-half but less than three-quarters
of the instructional time scheduled for the day equals one-half day of
attendance.
A school district or charter school may
satisfy any of the time and hours requirements prescribed in this item in any
manner prescribed in the school district's or charter school's instructional
time model adopted under section 15-901.08.

(c) For common schools, the attendance of a
preschool child with disabilities shall be counted as one-fourth day's
attendance for each thirty-six minutes of attendance, except as provided
in paragraph 1, subdivision (a), item (i) of this subsection for children with
disabilities up to a maximum of three hundred sixty minutes each
week.
A school district or charter school may
satisfy any of the time and hours requirements prescribed in this subdivision
in any manner prescribed in the school district's or charter school's
instructional time model adopted under section 15-901.08.

(d) For high schools, the attendance of a pupil
shall not be counted as a full day unless the pupil is actually and physically
in attendance and enrolled in and carrying four subjects, each of which, if
taught each school day for the minimum number of days required in a school
year, would meet a minimum of one hundred twenty-three hours a year, or
the equivalent, that count toward graduation in a recognized high school except
as provided in section 15-797 and subdivision (e) of this paragraph.�
Attendance of a pupil carrying less than the load prescribed shall be
prorated.
A school district or charter school may
satisfy any of the time and hours requirements prescribed in this subdivision
in any manner prescribed in the school district's or charter school's
instructional time model adopted under section 15-901.08.

(e) For high schools, the attendance of a pupil may
be counted as one-fourth of a day's attendance for each sixty minutes of
instructional time in a subject that counts toward graduation, except that
attendance for a pupil shall not exceed the pupil's full or fractional
membership.
A school district or charter school may
satisfy any of the time and hours requirements prescribed in this subdivision
in any manner prescribed in the school district's or charter school's
instructional time model adopted under section 15-901.08.

(f) For homebound or hospitalized, a full day of
attendance may be counted for each day during a week in which the student
receives at least four hours of instruction.
A school
district or charter school may satisfy any of the time and hours requirements
prescribed in this subdivision in any manner prescribed in the school
district's or charter school's instructional time model adopted under section
15-901.08.

(g) For school districts that maintain school for an
approved year-round school year operation, attendance shall be based on a
computation, as prescribed by the superintendent of public instruction, of the
one hundred eighty days' equivalency or two hundred days' equivalency, as
applicable, of instructional time as approved by the superintendent of public
instruction during which each pupil is enrolled.
A
school district or charter school may satisfy any of the time and hours
requirements prescribed in this subdivision in any manner prescribed in the
school district's or charter school's instructional time model adopted under
section 15-901.08.

6. "Daily route mileage" means the sum of:

(a) The total number of miles driven daily by all
buses of a school district while transporting eligible students from their
residence to the school of attendance and from the school of attendance to
their residence on scheduled routes approved by the superintendent of public
instruction.

(b) The total number of miles driven daily on routes
approved by the superintendent of public instruction for which a private party,
a political subdivision or a common or a contract carrier is reimbursed for
bringing an eligible student from the place of the student's residence to a
school transportation pickup point or to the school of attendance and from the
school transportation scheduled return point or from the school of attendance
to the student's residence. Daily route mileage includes the total number
of miles necessary to drive to transport eligible students from and to their
residence as provided in this paragraph.

7. "District support level" means the base
support level plus the transportation support level.

8. "Eligible students" means:

(a) Students who are transported by or for a school
district and who qualify as full-time students or fractional students,
except students for whom transportation is paid by another school district or a
county school superintendent, and:

(i) For common school students, whose place of
actual residence within the school district is more than one mile from the
school facility of attendance or students who are admitted pursuant to section
15-816.01 and who meet the economic eligibility requirements established
under the national school lunch and child nutrition acts (42 United States Code
sections 1751 through 1793) for free or reduced-price lunches and whose actual
place of residence outside the school district boundaries is more than one mile
from the school facility of attendance.

(ii) For high school students, whose place of actual
residence within the school district is more than one and one-half miles
from the school facility of attendance or students who are admitted pursuant to
section 15-816.01 and who meet the economic eligibility requirements
established under the national school lunch and child nutrition acts
(42 United States Code sections 1751 through 1793) for free or reduced-price
lunches and whose actual place of residence outside the school district
boundaries is more than one and one-half miles from the school facility
of attendance.

(b) Kindergarten students, for purposes of computing
the number of eligible students under subdivision (a), item (i) of this
paragraph, shall be counted as full-time students, notwithstanding any
other provision of law.

(c) Children with disabilities, as defined by
section 15-761, who are transported by or for the school district or who
are admitted pursuant to chapter 8, article 1.1 of this title and who qualify
as full-time students or fractional students regardless of location or
residence within the school district or children with disabilities whose
transportation is required by the pupil's individualized education program.

(d) Students whose residence is outside the school
district and who are transported within the school district on the same basis
as students who reside in the school district.

9. "Enrolled" or "enrollment"
means that a pupil is currently registered in the school district.

10. "GDP price deflator" means the average
of the four implicit price deflators for the gross domestic product reported by
the United States department of commerce for the four quarters of the calendar
year.

11. "High school district" means a
political subdivision of this state offering instruction to students for grades
nine through twelve or that portion of the budget of a common school district
that is allocated to teaching high school subjects with permission of the state
board of education.

12. "Instructional hours" or
"instructional time" means hours or time spent pursuant to an
instructional time model adopted under section 15-901.08.

13.

12.
"Revenue
control limit" means the base revenue control limit plus the
transportation revenue control limit.

14.

13.
"Student
count" means average daily membership as prescribed in this subsection for
the fiscal year before the current year, except that for the purpose of budget
preparation student count means average daily membership as prescribed in this
subsection for the current year.

15.

14.
"Submit
electronically" means submitted in a format and in a manner prescribed by
the department of education.

16.

15.
"Total
bus mileage" means the total number of miles driven by all buses of a
school district during the school year.

17.

16.
"Total
students transported" means all eligible students transported from their
place of residence to a school transportation pickup point or to the school of
attendance and from the school of attendance or from the school transportation
scheduled return point to their place of residence.

18.

17.
"Unified
school district" means a political subdivision of this state offering
instruction to students in programs for preschool children with disabilities
and kindergarten programs and grades one through twelve.

B. In this title, unless the context otherwise
requires:

1. "Base" means the revenue level per
student count specified by the legislature.

2. "Base level" means the following
amounts plus the percentage increase to the base level as provided in section
15-902.04:

(a) For fiscal year 2023-2024, $4,914.71.

(b) For fiscal year 2024-2025, $5,013.00.

(c) For fiscal year 2025-2026, $5,113.26.

3. "Base revenue control limit" means the
base revenue control limit computed as provided in section 15-944.

4. "Base support level" means the base
support level as provided in section 15-943.

5. "Certified teacher" means a person who
is certified as a teacher pursuant to the rules adopted by the state board of
education, who renders direct and personal services to schoolchildren in the
form of instruction related to the school district's educational course of
study and who is paid from the maintenance and operation section of the budget.

6. "DD" means programs for children with
developmental delays who are at least three years of age but under ten years of
age.� A preschool child who is categorized under this paragraph is not eligible
to receive funding pursuant to section 15-943, paragraph 2, subdivision
(b).

7. "ED, MIID, SLD, SLI and OHI" means
programs for children with emotional disabilities, mild intellectual
disabilities, a specific learning disability, a speech/language impairment and
other health impairments. A preschool child who is categorized as
SLI under this paragraph is not eligible to receive funding pursuant to section
15-943, paragraph 2, subdivision (b).

8. "ED-P"
means programs for children with emotional disabilities who are enrolled in
private special education programs as prescribed in section 15-765,
subsection D, paragraph 1 or in an intensive school district program as
provided in section 15-765, subsection D, paragraph 2.

9. "ELL" means English learners who do not
speak English or whose native language is not English, who are not currently
able to perform ordinary classroom work in English and who are enrolled in an
English language education program pursuant to sections 15-751, 15-752
and 15-753.

10. "FRPL" means students who meet the
eligibility requirements established under the national school lunch and child
nutrition acts (42 United States Code sections 1751 through 1793) for free
or reduced-price lunches, or an equivalent measure recognized for
participating in the federal free and reduced-price lunch program and other
school programs dependent on a poverty measure, including the community
eligibility provision for which free and reduced-price lunch data is not
available.

11. "Full-time equivalent certified
teacher" or "FTE certified teacher" means for a certified
teacher the following:

(a) If employed full time as defined in section 15-501,
1.00.

(b) If employed less than full time, multiply 1.00
by the percentage of a full school day, or its equivalent, or a full class
load, or its equivalent, for which the teacher is employed as determined by the
governing board.

12. "G" means educational programs for
gifted pupils who score at or above the ninety-seventh percentile, based on
national norms, on a test adopted by the state board of education.

13. "Group A" means educational programs
for career exploration, a specific learning disability, an emotional
disability, a mild intellectual disability, remedial education, a
speech/language impairment, developmental delay, homebound pupils, bilingual
pupils and pupils with other health impairments.

14. "Group B" means educational
improvements for pupils in kindergarten programs and grades one through three,
educational programs for autism, a hearing impairment, a moderate intellectual
disability, multiple disabilities, multiple disabilities with severe sensory
impairment, orthopedic impairments, preschool severe delay, a severe
intellectual disability and emotional disabilities for school age pupils
enrolled in private special education programs or in school district programs for
children with severe disabilities or visual impairment, English learners
enrolled in a program to promote English language proficiency pursuant to
section 15-752 and students who meet the eligibility requirements
established under the national school lunch and child nutrition acts (42 United
States Code sections 1751 through 1793) for free or reduced-price
lunches, or an equivalent measure recognized for participating in the federal
free and reduced-price lunch program and other school programs dependent
on a poverty measure, including the community eligibility provision for which
free and reduced-price lunch data is not available.

15. "HI" means programs for pupils with
hearing impairment.

16. "Homebound" or
"hospitalized" means a pupil who is capable of profiting from
academic instruction but is unable to attend school due to illness, disease,
accident or other health conditions, who has been examined by a competent
medical doctor and who is certified by that doctor as being unable to attend
regular classes for a period of not less than three school months or a pupil
who is capable of profiting from academic instruction but is unable to attend
school regularly due to chronic or acute health problems, who has been examined
by a competent medical doctor and who is certified by that doctor as being
unable to attend regular classes for intermittent periods of time totaling
three school months during a school year. The medical certification
shall state the general medical condition, such as illness, disease or chronic
health condition, that is the reason that the pupil is unable to attend
school. Homebound or hospitalized includes a student who is unable
to attend school for a period of less than three months due to a pregnancy if a
competent medical doctor, after an examination, certifies that the student is
unable to attend regular classes due to risk to the pregnancy or to the
student's health.

17. "K-3" means kindergarten
programs and grades one through three.

18. "K-3 reading" means reading
programs for pupils in kindergarten programs and grades one, two and three.

19. "MD-R, A-R and SID-R"
means resource programs for pupils with multiple disabilities, autism and
severe intellectual disability.

20. "MD-SC, A-SC and SID-SC"
means self-contained programs for pupils with multiple disabilities,
autism and severe intellectual disability.

21. "MD-SSI" means a program for
pupils with multiple disabilities with severe sensory impairment.

22. "MOID" means programs for pupils with
moderate intellectual disability.

23. "OI-R" means a resource program
for pupils with orthopedic impairments.

24. "OI-SC" means a self-contained
program for pupils with orthopedic impairments.

25. "PSD" means preschool programs for
children with disabilities as provided in section 15-771.

26. "P-SD" means programs for
children who meet the definition of preschool severe delay as provided in
section 15-771.

27. "Qualifying tax rate" means the
qualifying tax rate specified in section 15-971 applied to the assessed
valuation used for primary property taxes.

28. "Small isolated school district" means
a school district that meets all of the following:

(a) Has a student count of fewer than six hundred in
kindergarten programs and grades one through eight or grades nine through
twelve.

(b) Contains no school that is fewer than thirty
miles by the most reasonable route from another school, or, if road conditions
and terrain make the driving slow or hazardous, fifteen miles from another
school that teaches one or more of the same grades and is operated by another
school district in this state.

(c) Is designated as a small isolated school
district by the superintendent of public instruction.

29. "Small school district" means a school
district that meets all of the following:

(a) Has a student count of fewer than six hundred in
kindergarten programs and grades one through eight or grades nine through
twelve.

(b) Contains at least one school that is fewer than
thirty miles by the most reasonable route from another school that teaches one
or more of the same grades and is operated by another school district in this
state.

(c) Is designated as a small school district by the
superintendent of public instruction.

30. "Transportation revenue control limit"
means the transportation revenue control limit computed as prescribed in
section 15-946.

31. "Transportation support level" means
the support level for pupil transportation operating expenses as provided in
section 15-945.

32. "VI" means programs for pupils with
visual impairments.
END_STATUTE

Sec. 3.
Repeal

Section 15-901.08, Arizona Revised
Statutes, is repealed.

Sec. 4. Section 15-1021, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-1021
.
Limit on bonded indebtedness; limit on authorization and issuance
of bonds; definitions

A. Until December 31, 1999, a school district may
issue class A bonds for the purposes specified in this section and chapter 4,
article 5 of this title to an amount in the aggregate, including the existing
indebtedness, not exceeding fifteen percent of the taxable property used for
secondary property tax purposes, as determined pursuant to title 42, chapter
15, article 1, within a school district as ascertained by the last property tax
assessment previous to issuing the bonds.

B. From and after December 31, 1998, a school
district may issue class B bonds for the purposes specified in this section and
chapter 4, article 5 of this title to an amount in the aggregate, including the
existing class B indebtedness, not exceeding ten percent of the net assessed
value of the full cash value of the property in that school district, or $1,500
per student count pursuant to section 15-901, subsection A, paragraph
14
13
, whichever amount is
greater. A school district shall not issue class B bonds until the
proceeds of any class A bonds issued by the school district have been obligated
in contract. 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, section 8, Constitution of Arizona.

C. Until December 31, 1999, a unified school
district, as defined under article IX, section 8.1, Constitution of Arizona,
may issue class A bonds for the purposes specified in this section and chapter
4, article 5 of this title to an amount in the aggregate, including the
existing indebtedness, not exceeding thirty percent of the taxable property
used for secondary property tax purposes, as determined pursuant to title 42,
chapter 15, article 1, within a unified school district as ascertained by the
last property tax assessment previous to issuing the bonds.

D. From and after December 31, 1998, a unified
school district, as defined under article IX, section 8.1, Constitution of
Arizona, may issue class B bonds for the purposes specified in this section and
chapter 4, article 5 of this title to an amount in the aggregate, including the
existing class B indebtedness, not exceeding twenty percent of the net assessed
value of the full cash value of the property in that school district, or $1,500
per student count pursuant to section 15-901, subsection A, paragraph
14
13
, whichever amount is greater.� A
unified school district shall not issue class B bonds until the proceeds of any
class A bonds issued by the unified school district have been obligated in
contract. The total amount of class A and class B bonds issued by a
unified school district shall not exceed the debt limitations prescribed in
article IX, section 8.1, Constitution of Arizona.

E. Bonds authorized to be issued by an election held
after July 1, 1980 and before November 24, 2009 may not be issued more
than six years after the date of the election, except that the time period may
be extended to ten years pursuant to an election conducted pursuant to section
15-491, subsection A, paragraph 6 and except that class A bonds shall not
be issued after December 31, 1999. Bonds authorized to be issued by
an election held after November 24, 2009 may not be issued more than ten years
after the date of the election.

F. Except as provided in section 15-491,
subsection A, paragraph 3, bond proceeds shall not be expended for items whose
useful life is less than the average life of the bonds issued, except that bond
proceeds shall not be expended for items whose useful life is less than five
years.

G. A career technical education district shall not
spend class B bond proceeds to construct or renovate a facility located on the
campus of a school in a school district that participates in the career
technical education district unless the facility is only used to provide career
and technical education and is available to all pupils who live within the
career technical education district. If the facility is not owned by
the career technical education district, an intergovernmental agreement or a
written contract shall be executed for ten years or the duration of the bonded
indebtedness, whichever is greater. The intergovernmental agreement
or written contract shall include provisions:

1. That preserve the usage of the facility renovated
or constructed, or both, only for career and technology programs operated by
the career technical education district.

2. That include the process to be used by the
participating district to compensate the career technical education district in
the event that the facility is no longer used only for career and technical
education programs offered by the career technical education district during
the life of the bond.

H. A school district shall not authorize, issue or
sell bonds pursuant to this section if the school district has any existing
indebtedness from impact aid revenue bonds pursuant to title 41, chapter 56,
article 8, except for bonds issued to refund any bonds issued by the governing
board.

I. For the purposes of this section, "full cash
value" and "net assessed value" have the same meanings
prescribed in section 42-11001.
END_STATUTE