CTEDs; ADM; apportionment; responsibilities

HB4034 - 572R - H Ver

House Engrossed

CTEDs; ADM;
apportionment; responsibilities

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 4034

AN
ACT

amending section 15-393, Arizona Revised
Statutes; relating to career technical education districts.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 15-393, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-393.

Career technical education boards; report; definitions

A. The management and
control of a career technical education district are vested in the career
technical education
district governing
board, including
the content and quality of the courses offered by the district, the quality of
teachers who provide instruction on behalf of the district, the salaries of
teachers who provide instruction on behalf of the district
, the
funding for the district's average daily membership
and the
reimbursement of other entities for the facilities used by the
district. This section does not restrict a school district from
offering any career and technical education course that does not qualify for
funding as a career technical education course or career technical education
district program. Unless the governing boards of the school
districts participating in the formation of the career technical education
district vote to implement an alternative election system as provided in
subsection B of this section, the career technical education board consists of
five members elected from five single member districts formed within the career
technical education district. The single member district election
system shall be submitted as part of the plan for the career technical
education district pursuant to section 15-392 and shall be established in
the plan as follows:

1. The governing boards of
the school districts participating in the formation of the career technical
education district shall define the boundaries of the single member districts
so that the single member districts are as nearly equal in population as is
practicable, except that if the career technical education district lies in
part in each of two or more counties, at least one single member district may
be entirely within each of the counties comprising the career technical
education district if this district design is consistent with the obligation to
equalize the population among single member districts.

2. The boundaries of each
single member district shall follow election precinct boundary lines, as far as
practicable, in order to avoid further segmentation of the precincts.

3. A person who is a
registered voter of this state and who has been a resident of the single member
district for at least one year immediately preceding the date of the election
is eligible for election to the office of career technical education board
member from the single member district. The terms of office of the
members of the career technical education board shall be as prescribed in
section 15-427, subsection B. �An employee of a career technical
education district or the spouse of an employee shall not hold membership on a
governing board of a career technical education district by which the employee
is employed.� A member of one school district governing board or career
technical education
district governing
board is ineligible
to be a candidate for nomination or election to or serve simultaneously as a
member of any other governing board, except that a member of a governing board
may be a candidate for nomination or election for any other governing board if
the member is serving in the last year of a term of office. A member
of a governing board shall resign the member's seat on the governing board
before becoming a candidate for nomination or election to the governing board
of any other school district or career technical education district, unless the
member of the governing board is serving in the last year of a term of
office. Members of a career technical education
district
governing
board are subject to the conflict of interest requirements
prescribed in section 38-503.

4. Nominating petitions
shall be signed by the number of qualified electors of the single member
district as provided in section 16-322.

B. The governing boards of
the school districts participating in the formation of the career technical
education district may vote to implement any other alternative election system
for the election of career technical education
district

board members. If an alternative election system is selected, it
shall be submitted as part of the plan for the career technical education
district pursuant to section 15-392, and the implementation of the system
shall be as approved by the United States justice department.

C. Career technical
education districts are subject to the following provisions of this title:

1. Chapter 1, articles 1,
2, 3, 4, 5 and 6.

2. Sections 15-208,
15-210, 15-213 and 15-234.

3. Articles 2, 3 and 5 of
this chapter.

4. Section 15-361.

5. Chapter 4, articles 1,
2 and 5.

6. Chapter 5, articles 1
and 3.

7. Sections 15-701.01,
15-722, 15-723, 15-724, 15-727, 15-728, 15-729
and 15-730.

8. Chapter 7, article 5.

9. Chapter 8, articles 1,
3 and 4.

10. Sections 15-828
and 15-829.

11. Chapter 9, article 1,
article 6, except for section 15-995, and article 7.

12. Sections 15-941,
15-943.01, 15-953 and 15-973.

13. Sections 15-1101
and 15-1104.

14. Chapter 10, articles
2, 3, 4 and 8.

D. Notwithstanding
subsection C of this section, the following apply to a career technical
education district:

1. A career technical education district may issue
bonds for the purposes specified in section 15-1021 and in chapter 4,
article 5 of this title to an amount in the aggregate, including the existing
indebtedness, not exceeding one percent of the net assessed value of the full
cash value of the property within the career technical education district. For
the purposes of this paragraph, "full cash value" and "net
assessed value" have the same meanings prescribed in section 42-11001.

2. The number of governing
board members for a career technical education district shall be as prescribed
in subsection A of this section.

3. The student count for
the first year of operation of a career technical education district as
provided in this article shall be determined as follows:

(a) Determine the
estimated student count for career technical education district classes that
will operate in the first year of operation. �This estimate shall be based on
actual registration of pupils as of March 30 scheduled to attend classes that
will be operated by the career technical education district. The
student count for the school district of residence of the pupils registered at
the career technical education district shall be adjusted. The
adjustment shall cause the school district of residence to reduce the student
count for the pupil to reflect the courses to be taken at the career technical
education district. �The school district of residence shall review and approve
the adjustment of its own student count as provided in this subdivision before
the pupils from the school district can be added to the student count of the
career technical education district.

(b) The student count for
the new career technical education district shall be the student count as
determined in subdivision (a) of this paragraph.

(c) For the first year of
operation, the career technical education district shall revise the student
count to the actual average daily membership as prescribed in section 15-901,
subsection A, paragraph 1 for students attending classes in the career
technical education district. A career technical education district
shall revise its student count, the base support level as provided in section
15-943.02, the revenue control limit as provided in section 15-944.01
and the district additional assistance as provided in section 15-962.01
before May 15. A career technical education district that
overestimated its student count shall revise its budget before May
15. A career technical education district that underestimated its
student count may revise its budget before May 15.

(d) After March 15 of the
first year of operation, the school district of residence shall adjust its
student count by reducing it to reflect the courses actually taken at the
career technical education district. The school district of
residence shall revise its student count, the base support level as provided in
section 15-943, the revenue control limit as provided in section 15-944
and the district additional assistance as provided in section 15-962.01
prior to May 15. A district that underestimated the student count
for students attending the career technical education district shall revise its
budget before May 15. A district that overestimated the student
count for students attending the career technical education district may revise
its budget before May 15.

(e) The procedures for implementing this paragraph
shall be as prescribed in the uniform system of financial records.

For the purposes of this paragraph,
"school district of residence" means the school district that
included the pupil in its average daily membership for the year before the
first year of operation of the career technical education district and that
would have included the pupil in its student count for the purposes of
computing its base support level for the fiscal year of the first year of
operation of the career technical education district if the pupil had not
enrolled in the career technical education district.

4. A student includes any person enrolled in the
career technical education district without regard to the person's age or high
school graduation status, except that:

(a) A student in a kindergarten program or in any of
grades one through eight who enrolls in courses offered by the career technical
education district shall not be included in the career technical education
district's student count or average daily membership.

(b) A student in a kindergarten program or in any of
grades one through eight who is enrolled in career and technical education
courses shall not be funded in whole or in part with monies provided by a
career technical education district, except that a pupil in grade eight may be
funded with monies generated by the $.05 qualifying tax rate authorized in
subsection F of this section.

(c) A student who has graduated from high school or
received a general equivalency diploma or who is over twenty-one years of
age shall not be included in the student count of the career technical
education district for the purposes of chapter 9, articles 3, 4 and 5 of this
title.

5. A career technical education district may operate
for more than one hundred eighty days per year, or less, with the equivalent
number of hours of instruction.

6. A career technical education district may use the
carryforward provisions of section 15-943.01.

7. A school district that is part of a career
technical education district shall use any monies received pursuant to this
article to supplement and not supplant base year career and technical education
courses, and directly related equipment and facilities, except that a school
district that is part of a career technical education district and that has
used monies received pursuant to this article to supplant career and technical
education courses that were offered before the first year that the school district
participated in the career technical education district or the first year that
the school district used monies received pursuant to this article or that used
the monies for purposes other than for career and technical education courses
shall use one hundred percent of the monies received pursuant to this article
to supplement and not supplant base year career and technical education
courses. Each applicable school district shall provide a report to
the career technical education board and the department of education outlining
the required maintenance of effort and how monies were used to supplement and
not supplant base year career and technical education courses and directly
related equipment and facilities.
The career
technical education board shall monitor how monies that are distributed by the
career technical education district pursuant to this article are used. The
career technical EDUCATION BOARD shall maintain any financial records,
documentation or information that is reasonably necessary for the purposes of
this paragraph.
The career technical education
board shall submit to each participating
school district an
annual
report that includes the aggregate career
technical education district expenditures and the career technical education
district expenditures that directly support career technical education courses
or programs that are provided at
each participating
school district. On request from a participating school district,
the career technical education board shall provide additional information and
details about the expenditures.

8. A career technical education district shall use
any monies received pursuant to this article to enhance and not supplant career
and technical education courses and directly related equipment and facilities.

9. A career technical education district or a school
district that is part of a career technical education district or a charter
school shall only include pupils in grades nine through twelve and pupils in
the school year immediately following graduation in the calculation of student
count or average daily membership if the pupils are enrolled in courses that
are approved jointly by the governing board of the career technical education
district and each participating school district or charter school for satellite
courses taught within the participating school district or charter school, or
approved solely by the career technical education district for centrally
located courses. Funding may be provided for not more than four
years for the same student. Student count and average daily
membership from courses that are not part of an approved program for career and
technical education shall not be included in student count and average daily
membership of a career technical education district.

10. A career technical education district may build,
maintain and provide housing facilities and support services for students who
are in foster care or who meet the definition of unaccompanied youth as defined
in the McKinney-Vento homeless assistance act (P.L. 100-77; 101
Stat. 482; 42 United States Code section 11434a).

11. Notwithstanding paragraph 7 of
this subsection, a school district that is part of a career technical education
district may carry forward not more than twenty-five percent of any
monies received pursuant to this article for any purpose related to career
technical education, as determined by the school district. A school
district may apply to the career technical education board to use more than
twenty-five percent of any monies received pursuant to this article by
submitting a capital plan to the career technical education board with the
application. The school district may spend more than twenty-five
percent of the monies that the school district receives pursuant to this
article in any fiscal year only if both of the following requirements are met:

(
a
) The career
technical education board approves the school district's capital plan before
the excess expenditures occur.

(
b
) All excess
expenditures are pursuant to the capital plan.

E. The career technical education board shall
appoint a superintendent as the executive officer of the career technical
education district.

F. Taxes may be levied for the support of the career
technical education district as prescribed in chapter 9, article 6 of this
title, except that a career technical education district shall not levy a
property tax pursuant to law that exceeds $.05 per $100 assessed valuation
except for bond monies pursuant to subsection D, paragraph 1 of this section. �Such
taxes shall be obtained from a levy of taxes on the taxable property used for
secondary tax purposes.

G. The schools in the career technical education
district are available to all persons who reside in the career technical
education district and to pupils whose school district of residence within this
state is paying tuition on behalf of the pupils to a district of attendance
that is a member of the career technical education district, subject to the
rules for admission prescribed by the career technical education board.

H. The career technical education board may collect
tuition for adult students and the attendance of pupils who are residents of
school districts that are not participating in the career technical education
district pursuant to arrangements made between the governing board of the
school district and the career technical education board.

I. The career technical education board may accept
gifts, grants, federal monies, tuition and other allocations of monies to
erect, repair and equip buildings and for the cost of operating the schools of
the career technical education district.

J. One member of the career technical education
board shall be selected chairperson. The chairperson shall be
selected annually on a rotation basis from among the participating school
districts. The chairperson of the career technical education board
shall be a voting member.

K. A career technical
education board may enter into agreements to provide for administrative,
operational and educational services and facilities with either:

1. A community
college district.

2. A university under the jurisdiction of the
Arizona board of regents only if the community college district, if any, for
each county in which the career technical education district is located is not
able to offer the course or program in the next school year. �For the purposes
of this paragraph, a community college district is not able to offer a course
or program if both of the following apply:

(a) On or before November 1 of each year, the career
technical education board notifies the president or chancellor of the community
college district in writing that the career technical education district seeks
to offer one or more courses or programs, or both, that are
both
:

(i) Not offered through an existing agreement
between the career technical education board and the community college
district.

(ii)
Are
Available through a
university under the jurisdiction of the Arizona board of regents.

(b) The president or chancellor of the community
college district either:

(i) Not later than thirty days after the president
or chancellor receives the notice pursuant to subdivision (a) of this
paragraph, notifies the superintendent of the career technical education
district in writing that no community college district is able to offer the
course or program in the next school year.

(ii) Fails to respond to the superintendent of the
career technical education district within thirty days after the president or
chancellor of the community college district receives the notice pursuant to
subdivision (a) of this paragraph.

L. Any agreement between
the governing
board of
a career technical education
district

board
and another career technical education
district

board
, a school district, a charter
school, a university or a community college district shall be in the form of an
intergovernmental agreement or other written contract
that is
executed on or before July 1 of the first year in which a career technical
education course or program will be offered at a satellite campus pursuant to
the agreement or contract
. The auditor general shall
modify the uniform system of financial records and budget forms in accordance
with this subsection. The intergovernmental agreement or other
written contract shall completely and accurately specify each of the following:

1. The financial provisions of the intergovernmental
agreement or other written contract and the format for the billing of all
services.

2. The accountability provisions of the
intergovernmental agreement or other written contract.

3. The responsibilities of each career technical
education district, each school district, each charter school, each university
and each community college district that is a party to the intergovernmental
agreement or other written contract.

4. The type of instruction that will be provided
under the intergovernmental agreement or other written contract, including
individualized education programs pursuant to section 15-763.

5. The quality of
the instruction,

each instructor, including the minimum qualifications, relevant
industry experience and industry-relevant professional development,
that
will be provided under the intergovernmental agreement or other written
contract.
The school district, the charter school,
the university or the community college district shall oversee the evaluation
of the instructor unless the intergovernmental agreement or written contract
provides otherwise.

6. The transportation services that will be provided
under the intergovernmental agreement or other written contract and the manner
in which transportation costs will be paid.

7. The amount that the career technical education
district will contribute to a course and the amount of support required by the
school district, the charter school, the university or the community college.

8. That the
services provided by the career technical education district, the school
district, the charter school, the university or the community college district
be proportionally calculated in the cost of delivering the service.

9.

8.
That the
payment for services shall not exceed the cost of the services provided.�
If the average
daily membership that is generated by a

satellite program or course is
insufficient to pay for the costs of delivering the program or course

at the school
district or charter school, the participating school district

or charter school
may use funding that is generated by other

career technical education
programs or courses and that exceeds the costs of delivering the other career
technical education programs or courses to pay for the shortfall.

10.

9.
That
the career technical education district will provide the following minimum
services for all member districts:

(a) Professional development of career and technical
teachers in the career technical education district who are teaching programs
or courses at a satellite campus.

(b) Ongoing evaluation and support of satellite
campus programs and courses to ensure quality and compliance.

11.

10.
An
itemized listing of other goods and services that are provided to the member
district and that are paid for by the retention of satellite campus student
funding.

11.
That any party to the intergovernmental agreement or written contract
may bring an action against another party under the agreement or contract only
after participating in good faith in mediation that is administered by a
trained and impartial mediator. Each party is responsible for paying
any costs incurred by the party for the mediation, including costs incurred for
legal representation, and the party's pro rata share of the mediation fees
.

12.
That if a
career technical education district and a school district do not agree to a
specified apportionment on or before July 1, the state board of education
acting as the state board of vocational education shall mediate the dispute and
determine the apportionment for the school year not later than August 1.

M. A member school district or charter school may
not submit requests to approve or add satellite campus career technical
education district programs or courses directly to the career and technical
education division of the department of education but shall submit all
appropriate application documentation and materials for programs or courses to
the career technical education district. On approval from the career
technical education board, a career technical education district shall only
submit requests to approve or add satellite campus career technical education
district programs or courses directly to the career and technical education
division of the department of education, which shall determine whether the
criteria prescribed in section 15-391, paragraphs 2 and 4 have been met. If
the career and technical education division of the department of education
determines that a course does not meet the criteria for approval as a career
technical education course,
the governing board of

the division shall provide to
the career technical education
district

board a written determination that
includes the reasons for the division's determination, and the career technical
education board
may appeal
this decision

the determination
to the state board of education acting as the
state board of vocational education.
The career
technical education board and the career and technical education division of
the department of education shall accept and consider requests pursuant to this
subsection from July 1 through June 30 of each year and shall determine whether
to approve each request not later than _____ days after receiving the request. �If
the career technical education board does not approve a request, the career
technical education board shall provide to the member school district or
charter school a written determination that includes the reasons for the career
technical education board's determination. �A participating school district or
charter school may amend a request that is not approved pursuant to this
subsection to address the reasons for the disapproval. �The career technical
education board shall consider an amended request that is submitted pursuant to
this subsection in the same manner as an initial request
.

N. Notwithstanding any other law, the average daily
membership for a pupil who is enrolled in a career technical education course
and who does not meet the criteria specified in subsection P, Q or R of this
section shall be 0.25 for each course, except the sum of the average daily
membership shall not exceed the limits prescribed by subsection D, P, Q or R of
this section, as applicable.

O. If a career and technical education course or
program is provided on a satellite campus, the sum of the average daily
membership, as provided in section 15-901, subsection A, paragraph 1, for
that pupil in the school district or charter school and career technical
education district shall not exceed 1.25. �
The school district or
charter school and the career technical education district shall determine the
apportionment
Of the
1.25
average daily membership
, a MAXIMUM of 1.0 SHALL BE ATTRIBUTED TO THE SCHOOL DISTRICT OR
CHARTER SCHOOL AND A maximum of 0.25 SHALL BE ATTRIBUTED TO THE CAREER
TECHNICAL EDUCATION DISTRICT, UNLESS OTHERWISE APPORTIONED PURSUANT TO AN
INTERGOVERNMENTAL AGREEMENT.
for that pupil
between the school district or charter school and the career technical
education district
the school district or charter school
and the career technical education district
shall
determine the apportionment
OF THE 0.25 AVERAGE DAILY
MEMBERSHIP PURSUANT TO A FULLY EXECUTED INTERGOVERNMENTAL AGREEMENT. iN
THE ABSENCE OF A FULLY EXECUTED INTERGOVERNMENTAL AGREEMENT, THE SCHOOL
DISTRICT OR CHARTER SCHOOL SHALL NOT REPORT AN AVERAGE DAILY MEMBERSHIP FOR A
SATELLITE CAMPUS COURSE OR PROGRAM, AND AVERAGE DAILY MEMBERSHIP SHALL NOT BE
GENERATED FOR THAT COURSE OR PROGRAM
. A pupil who attends a
course or program at a satellite campus and who is not enrolled in the school
district or charter school where the satellite campus is located may generate
the average daily membership of up to 0.25 for one hundred fifty instructional
hours of enrollment for instruction received during any hour of the day, during
any day of the week and at any time between July 1 and June 30 of each fiscal
year pursuant to this subsection if the pupil is enrolled in a school district
that is a member district in the same career technical education district.

P. The sum of the average daily membership of a
pupil who is enrolled in both the school district and career technical
education course or career technical education program provided by a community
college or university pursuant to subsection K of this section or at a
centralized campus shall not exceed 1.75. The average daily
membership for a pupil who is enrolled in a career technical education course
or career technical education program provided by a community college or university
shall be 0.25 for the accumulation of every three community college or
university credits for which a student is enrolled in career technical
education courses. The member school district and the career
technical education district shall determine the apportionment of the average
daily membership and student enrollment for that pupil between the member
school district and the career technical education district, except that the
amount apportioned shall not exceed 1.0 for either entity. Notwithstanding any
other law, the average daily membership for a pupil who is in grade nine, ten,
eleven or twelve or in the school year immediately following graduation and who
is enrolled in a course that meets for at least one hundred fifty minutes per
class period at a centralized campus shall be 0.75. To qualify for
funding pursuant to this subsection, a centralized campus shall offer programs
and courses to all eligible students in each member district of the career
technical education district. Students in an approved career
technical education program may generate an average daily membership of up to
1.75 for instruction received during any hour of the day, during any day of the
week and at any time between July 1 and June 30 of each fiscal
year. Average daily membership shall not be calculated on the one
hundredth day of instruction for the purposes of this
section. Average daily membership shall be calculated by dividing
the instructional hours of enrollment by six hundred hours, except that:

1. At least one hundred fifty hours and less than
three hundred hours equals 0.25 average daily membership.

2. At least three hundred hours and less than four
hundred fifty hours equals 0.5 average daily membership.

3. At least four hundred fifty hours and less than
six hundred hours equals 0.75 average daily membership.

4. At least six hundred hours equals 1.0 average
daily membership.

Q. The average daily membership for a pupil who is
in grade nine, ten, eleven or twelve or in the school year immediately
following graduation and who is enrolled in a course that meets for at least
one hundred fifty minutes per class period at a leased centralized campus shall
not exceed 0.75. Students in an approved career technical education
program provided by a leased centralized campus may generate an average daily
membership for instruction received during any hour of the day, during any day
of the week and at any time between July 1 and June 30 of each fiscal
year. Average daily membership shall be calculated by dividing the
instructional hours of enrollment by six hundred hours, except that:

1. At least one hundred fifty hours and less than
three hundred hours equals 0.25 average daily membership.

2. At least three hundred hours and less than four
hundred fifty hours equals 0.5 average daily membership.

3. At least four hundred fifty hours and less than
six hundred hours equals 0.75 average daily membership.

4. At least six hundred hours equals 1.0 average
daily membership.

R. The sum of the average daily membership, as
provided in section 15-901, subsection A, paragraph 1, of a pupil who is
enrolled in both the school district and in career technical education courses
provided at a leased centralized campus shall not exceed 1.75 if all of the
following conditions are met:

1. The course qualifies as a career technical
education course.

2. The course is offered to all eligible students in
each member district of the career technical education district and enrolls
students from multiple high schools.

3. The career technical education district program
in which the course is included addresses a specific industry need and has been
developed in cooperation with that industry, or the leased facility is a state
or federal asset that would otherwise be unused or underutilized.

4. The lease is established at fair market value if
the lease is executed for a facility located on the site of a member district
and was approved by the joint committee on capital review, except that a lease
that was executed or renewed before December 31, 2012 is not subject to
approval by the joint committee on capital review.

S. A student who is enrolled in an accommodation
school may be treated as a student of the school district in which the student
physically resides for the purposes of enrollment in a career technical
education district and shall be included in the calculation of average daily
membership for either the career technical education district or the
accommodation school, or both.

T. Notwithstanding any other law, the student count
for a career technical education district
shall be

is
equivalent to the career technical education district's
average daily membership. Students in an approved career technical
education program provided by a satellite campus, centralized campus or leased
centralized campus may generate an average daily membership subject to the
limits prescribed by subsections D, N, O, P, Q and R of this section, as
applicable, for instruction received during any hour of the day, during any day
of the week and at any time between July 1 and June 30 of each fiscal
year. Average daily membership shall not be calculated on the one
hundredth day of instruction for the purposes of this section. The
department may not restrict the instructional time by limiting the particular
days of the week or time of the fiscal year for instruction to occur.
The career technical education board is responsible for
any funding related to the career technical education district's average daily
membership.

U. A school district or charter school may not
prohibit or discourage students who are enrolled in that school district or
charter school from attending courses offered by a career technical education
district, including requiring students to generate a full 1.0 average daily
membership or to enroll in more courses than are needed to graduate before
enrolling in and attending programs or courses offered by a career technical
education district.

V. The governing
board of the career technical education district may contract with any charter
school that is located within the boundaries of the career technical education
district to allow that charter school to offer career and technical education
courses or programs as a satellite campus.

W. Beginning in 2020 and every five years
thereafter, the career and technical education division of the department of
education shall review career technical education district programs and career
technical education courses to ensure compliance, quality and
eligibility. Any program or course deemed to not meet the
requirements set forth by law shall not be funded for the current school year
and shall be removed from the approved program and course list for the purposes
of funding. The career and technical education division may
establish a staggered schedule for reviewing each career technical education
district.

X. Notwithstanding subsection D, paragraphs 4 and 9
and subsections P, Q and R of this section, for a student in grade nine,
funding shall be provided pursuant to this section only if the student reaches
the fortieth day of grade eleven enrolled in an approved career technical
education program and meets the requirements prescribed in subsection Z of this
section. At that time funding shall be provided for that student for
grade nine and for any subsequent year in which the student is eligible for
funding pursuant to this section.

Y. On or before September 1 of each year, the office
of economic opportunity in collaboration with the department of education shall
compile an in-demand regional education list of the approved career technical
education programs that lead to a career path in high demand with median-to-high-wage
jobs in that region. The office of economic opportunity shall
incorporate industry feedback as part of developing the in-demand regional
educational list. The office of economic opportunity shall submit
the in-demand regional education list to the Arizona career and technical
education quality commission for review and approval.

Z. Notwithstanding subsection D, paragraphs 4 and 9
and subsections P, Q and R of this section, for a student in grade nine or in
the school year immediately following graduation, funding shall be provided
pursuant to this section only if the student is enrolled in a program that was
included on the in-demand regional education list compiled pursuant to
subsection Y of this section for that student's region for the year in which
the student began the program.

AA. For the purposes of this section:

1. "Base year" means the complete school
year in which voters of a school district elected to join a career technical
education district.

2. "Centralized campus" means a facility
that is owned and operated by a career technical education district to offer
career technical education district programs or career technical education
courses.

3. "Lease" means a written agreement in
which the right to occupy or use real property is conveyed from one person or
entity to another person or entity for a specified period of time.

4. "Leased centralized campus" means a
facility that is leased and operated by a career technical education district
to offer career technical education district programs or career technical
education courses.

5. "Satellite campus" means a facility
that is owned or operated by a school district or charter school to offer
career technical education district programs or career technical education
courses.
END_STATUTE