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SB1856 • 2026

K-12 education; 2026-2027.

SB1856 - K-12 education; 2026-2027.

Budget Children Education Technology
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
David C. Farnsworth
Last action
2026-06-11
Official status
Senate committee of the whole
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

K-12 education; 2026-2027.

SB1856 - 572R - Senate Fact Sheet Assigned to ATT�������������������������������������������������������������������������������������������������������������� AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.B.

What This Bill Does

  • SB1856 - 572R - Senate Fact Sheet Assigned to ATT�������������������������������������������������������������������������������������������������������������� AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.B.
  • 1856 K-12 education; 2026-2027.
  • Purpose Makes statutory and session law changes relating to K-12 education necessary to implement the FY 2027 state budget.
  • Background The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: Amendment explanation prepared by Mason Holler 06/11/2026 Bill Number: S.B.

  • Amendment explanation prepared by Mason Holler 06/11/2026 Bill Number: S.B.
  • 1856 Epstein Floor Amendment Reference to: printed bill Amendment drafted by: Leg.
  • Council FLOOR AMENDMENT EXPLANATION 1.
  • Requires, if a school that provides instruction to students in any of grades 6 through 12 provides feminine hygiene products at no cost to students or the families of students, the school to primarily provide the feminine hygiene products through distribution in all women's and gender-neutral school restrooms beginning in the 2026-2027 school year.

Plain English: Amendment explanation prepared by Mason Holler 06/11/2026 Bill Number: S.B.

  • Amendment explanation prepared by Mason Holler 06/11/2026 Bill Number: S.B.
  • 1856 Farnsworth Floor Amendment Reference to: printed bill Amendment drafted by: Leg.
  • Council FLOOR AMENDMENT EXPLANATION Child Sexual Abuse and Assault Awareness and Prevention Pilot Program 1.
  • Adds, to the procedures that the uniform child sexual abuse and assault response policy and reporting procedure may include, uniform procedures for notifying the parents of any student who is a victim of an incident that involves child sexual abuse, child sexual assault, grooming, exploitation, grooming with the intent to exploit or technology- facilitated abuse within 24 hours after any school personnel became aware of the incident.

Bill History

  1. 2026-06-11 Senate

    Senate committee of the whole

  2. 2026-06-10 Senate

    Senate minority caucus

  3. 2026-06-10 Senate

    Senate majority caucus

  4. 2026-06-10 Senate

    Senate second read

  5. 2026-06-09 Senate

    Senate Rules: PFC

  6. 2026-06-09 Senate

    Senate Appropriations, Transportation and Technology: DP

  7. 2026-06-09 Senate

    Senate first read

Official Summary Text

SB1856 - 572R - Senate Fact Sheet

Assigned to
ATT�������������������������������������������������������������������������������������������������������������� AS
PASSED BY COW

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1856

K-12
education; 2026-2027.

Purpose

Makes statutory and session law changes relating to K-12 education
necessary to implement the FY 2027 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in
the general appropriations, capital outlay appropriations and supplemental
appropriations bills. However, it is often necessary to make statutory and
session law changes to effectuate the budget. Thus, separate bills called
budget reconciliation bills (BRBs) are introduced to enact these provisions.
Because BRBs contain substantive law changes, the Arizona Constitution provides
that they become effective on the general effective date, unless an emergency
clause is enacted.

�����������������
S.B. 1856

contains the budget reconciliation provisions for
changes relating to K-12 education.

Provisions

Basic
State Aid

1.

Increases
the base level for FY 2027 from $5,113.26 to $5,215.53.

2.

Increases
the charter additional assistance amount per student for FY 2027:

a)

from $2,131.90 to $2,174.54, for students in preschool programs for
children with disabilities, kindergarten programs and grades 1 through 8; and

b)

from $2,484.69 to $2,534.38, for students in grades 9 through 12.

3.

Increases the transportation
support level formula per-route-mile amount for FY 2027 as follows:

Approved Daily Route
Mileage per Transported Student

FY 2026

FY 2027

0.5 or less

3.01

3.07

Between
0.5 and 1.0

2.47

2.52

Over
1.0

3.01

3.07

Alhambra
Elementary School District Basic State Aid Recalculation

(Repeals on January 1, 2028)

4.

Requires
the Arizona Department of Education (ADE) to:

a)

recalculate the basic state aid amount for the Alhambra Elementary
School District in FY 2025 as the result of a change in the assessed valuation
of property within the school district; and

b)

increase
the basic state aid amount for the Alhambra Elementary School District in FY
2027 by $852,000.

Arizona
State Schools for the Deaf and the Blind Property Proceeds Fund

5.

Establishes
the Property Proceeds Fund (Property Fund), consisting of the proceeds from the
sale or lease of Arizona State School for the Deaf and the Blind (ASDB) school
buildings and grounds.

6.

Requires
ASDB to administer the Property Fund and deposit all monies that ASDB receives
for the sale or lease of school buildings and grounds on or after July 1, 2026,
in the Property Fund, except as specified.

7.

Specifies
that Property Fund monies are subject to legislative appropriation and exempt
from lapsing.

8.

Requires
the State Treasurer, on notice from ASDB, to invest and divest Property Fund
monies and credit monies earned from investment to the Property Fund.

9.

Requires
ASDB, in any fiscal year in which the Legislature appropriates monies from the
Property Fund to ASDB, to prepare an expenditure plan for the monies and submit
the plan to the Joint Legislative Budget Committee (JLBC) for review.

10.

Stipulates that, before ASDB
may sell school buildings or grounds, ASDB must:

a)

determine the appraised value of the school buildings or grounds by
ordering independent appraisals from at least two different firms;

b)

submit a proposal to sell school buildings or grounds to the Joint
Committee on Capital Review for review; and

c)

sell the school buildings or grounds pursuant to the statutory
procedures for the disposition of real property by a state agency.

11.

Specifies that ASDB must
procure appraisal services pursuant to the Arizona Procurement Code and award
an appraisal services contract to a firm only if the appraiser is well
qualified and a designated team member of a nationally recognized real estate
appraisal association, institute or society.

12.

Allows ASDB to use any
appraisal that is ordered as prescribed as the appraised value of the school
buildings or grounds.

13.

Determines that ASDB is not
required to deposit monies in the Property Fund if ASDB receives the monies
for:

a)

fees, rentals and other charges for the use of school facilities for
nonschool events;

b)

proceeds from the lease of school buildings or grounds to a school; or

c)

proceeds from the lease of school buildings or ground for a period of
less than one year.

14.

Specifies that a lease of
school buildings or grounds for less than one year that includes an automatic
lease renewal resulting in a total lease duration that exceeds one year is
considered a lease for more than one year.

Child
Sexual Abuse and Assault Awareness and Prevention Pilot Program

(Repeals on January 1, 2029)

15.

Establishes the Child Sexual
Abuse and Assault Awareness and Prevention Pilot Program (Awareness and
Prevention Pilot Program) within ADE.

16.

Requires ADE, by July 1,
2027, to allow public schools to apply to participate and select six public
schools from the applicants to participate in the Awareness and Prevention
Pilot Program during the 2027-2028 school year.

17.

Requires ADE to consult with
the Department of Child Safety (DCS) and organizations that are operated by
survivors of grooming or human trafficking in developing the Awareness and
Prevention Pilot Program and the associated curriculum.

18.

Requires the Awareness and
Prevention Pilot Program to include, for teachers, at least four hours of
in-person, evidence-based instructional modules provided by a selected
organization, which may include:

a)

training on the prevention and identification of, and responses to,
child sexual abuse and assault, including exploitation, grooming, grooming with
the intent to exploit and technology-facilitated abuse; and

b)

resources to further student, teacher and parental awareness and
prevention of child sexual abuse and assault, including exploitation, grooming,
grooming with the intent to exploit and technology-facilitated abuse.

19.

Requires the Awareness and
Prevention Pilot Program to include, for the parents of students who are
enrolled in a participating school:

a)

at least three hours of in-person, evidence-based instruction provided by
a selected organization; and

b)

age-appropriate educational materials that are designed for K-12
children relating to child sexual abuse and assault awareness and prevention,
including exploitation, grooming behaviors and grooming with the intent to
exploit.

20.

Allows the evidence-based instruction
the selected organization provides to parents to include instruction in:

a)

skills to recognize:

i.

child sexual abuse and assault;

ii.

boundary
violations and unwanted forms of contact;

iii.

grooming
behaviors, including manipulation, trust building, secrecy, desensitization and
isolation;

iv.

exploitation and
grooming with the intent to exploit, including online grooming, sextortion and
technology-facilitated exploitation; and

v.

patterns,
tactics and warning signs associated with grooming and exploitation; and

b)

strategies that:

i.

promote disclosure;

ii.

reduce
self-blame; and

iii.

mobilize bystanders.

21.

Requires the Awareness and
Prevention Pilot Program to include a uniform child sexual abuse and assault
response policy and reporting procedure that is based on best practices, which
may include:

a)

actions that victims of child sexual abuse and assault may take to
obtain assistance;

b)

intervention and counseling options for victims of child sexual abuse
and assault;

c)

access to educational resources to enable victims of child sexual abuse
and assault to succeed in school;

d)

uniform procedures for reporting instances of child sexual abuse and
assault to school staff members; and

e)

uniform
procedures for notifying the parents of any student who is a victim of an
incident that involves child sexual abuse, child sexual assault, grooming,
exploitation, grooming with the intent to exploit or technology-facilitated
abuse within 24 hours after any school personnel became aware of the incident.

22.

Allows
ADE to contract with a provider to implement the Awareness and Prevention Pilot
Program if the provider is able to demonstrate it can meet the prescribed
requirements.

23.

Requires
ADE to select one or more organizations to provide the instructional modules
for teachers, instruction for parents, or both.

24.

Specifies that ADE, in
selecting organizations to provide the instructional modules or instruction,
must only select organizations that:

a)

are organized and operated for the purpose of preventing child sexual
abuse, promoting grooming awareness or preventing human trafficking; and

b)

ensure
that the individuals who will provide instruction to teachers and parents are
either qualified survivors of grooming or human trafficking or advocates who
have direct expertise in child sexual abuse, grooming and human trafficking
prevention.

25.

Requires
ADE, beginning on the general effective date, to gather stakeholder input to
develop an Awareness and Prevention Pilot Program curriculum, including
scheduling stakeholder meetings.

26.

Specifies that ADE must
solicit input on the Awareness and Prevention Pilot Program curriculum from
representatives of:

a)

DCS;

b)

organizations that are organized and operated for the purpose of
preventing child sexual abuse, grooming or human trafficking; and

c)

survivors
of child sexual abuse, grooming and human trafficking.

27.

Requires
ADE to select an organization to develop the Awareness and Prevention Pilot
Program curriculum, coordinate stakeholder input and ensure that the curriculum
is survivor-informed and prevention-focused.

28.

Specifies that ADE must
select an organization to develop the Awareness and Prevention Pilot Program
curriculum that:

a)

is organized and operated for the purpose of preventing child sexual
abuse, grooming or human trafficking; and

b)

demonstrates
that the organization has experience providing survivor-informed prevention
education.

29.

Subjects
the Awareness and Prevention Pilot Program curriculum to approval by the State
Board of Education and ADE.

30.

Requires ADE to make the
age-appropriate educational materials available to the public on ADE's website
and provide the webpage address for the educational materials to each
participating public school and the Department of Health Services (DHS)
Director.

31.

Prohibits
a participating public school from requiring any parent to participate in the
Awareness and Prevention Pilot Program.

32.

Requires, on the enrollment
of a student, a participating public school to provide to the student's parent
:

a)

the ADE webpage address that contains the age-appropriate educational
materials; and

b)

an
opportunity to request a printed copy of the age-appropriate educational
materials.

33.

Requires
ADE to select an organization to provide by mail a printed copy of the
age-appropriate educational materials on receipt of any request that is
submitted.

34.

Stipulates that, if a
student's parent requests a printed copy of the age-appropriate educational
materials and authorizes the school to disclose the parent's address:

a)

the school must submit the request and address to the selected
organization; and

b)

the
selected organization must mail a printed copy of the educational materials to
the parent.

35.

Allows
ADE, if sufficient monies are available, to reimburse the organization selected
to mail printed copies for the actual costs of providing the printed copies of
the educational materials to parents.

36.

Requires each participating
public school, by October 1, 2028, to submit a report to ADE and provide a copy
to DCS that includes:

a)

the number of parents who received the evidence-based instruction
through the Awareness and Prevention Pilot Program and the number of hours of
instruction that the selected organizations provided;

b)

the number of teachers who completed the evidence-based instructional
modules provided through the Awareness and Prevention Pilot Program;

c)

any testimony or comments from teachers or the parents of students
relating to the Awareness and Prevention Pilot Program; and

d)

whether
the school intends to continue providing instructional modules to teachers, instruction
to parents, or both, through the selected organizations in subsequent school
years.

37.

Requires
DHS to include the ADE webpage address that contains the age-appropriate
educational materials in the maternal mental health condition educational
materials and information that is compiled and provided to parents.

38.

Defines

grooming
and
exploitation
.

Miscellaneous

39.

Conforms
the tax year 2026 qualifying tax rates to reflect the required
truth-in-taxation rate adjustment.

40.

Authorizes the Arizona
Department of Education (ADE) to use Failing Schools Tutoring Fund monies in FY
2027 for the following school improvements:

a)

providing assistance to school districts and charter schools for
professional development and coaching for teachers and principals;

b)

monitoring the progress of school districts and charter schools towards
improved academic outcomes; and

c)

outreach to ensure that schools and parents have access to tutoring
opportunities.

41.

Requires, by September 1,
2026, ADE to report the proposed expenditures for FY 2027 Failing Schools
Tutoring Fund monies to the Governor, the Senate President, the Speaker of the
House of Representatives, the JLBC Director and the Governor's Office of Strategic
Planning and Budgeting Director.

42.

Continues to state as the
intent of the Legislature and the Governor that school districts increase the
total percentage of classroom spending over the previous year�s percentages in
the combined categories of instruction, student support and instructional
support as prescribed by the Auditor General.

43.

Makes technical and
conforming changes.

44.

Becomes effective on the
general effective date.

Amendments
Adopted by Committee of the Whole

1.

Removes
the School Safety and Threat Identification Pilot Program and the associated
administrative and reporting requirements on ADE and the participating school
district.

2.

Adds,
to the procedures that the Awareness and Prevention Pilot Program's uniform
child sexual abuse and assault response policy and reporting procedure may
include, uniform procedures for notifying the parents of students who are
victims of specified incidents within 24 hours of school personnel becoming
aware of the incident.

3.

Requires
a public school participating in the Awareness and Prevention Pilot Program to
provide parents an opportunity to request a printed copy of the educational
materials upon enrollment of the parent's student.

4.

Requires
ADE to select an organization to provide by mail a printed copy of the
educational materials to parents on receipt of a request.

5.

Requires,
on request by a parent for a printed copy of the educational materials, the
school to submit the request to the organization as prescribed and the
organization to mail a printed copy of the materials to the parent.

6.

Allows
ADE to reimburse the selected organization for the actual costs of providing
the printed copies of the education materials to parents if sufficient monies
are available.

7.

Makes
technical and conforming changes.

Senate Action

ATT���������������� 6/10/26����� DP������ 8-2-0

Prepared by Senate Research

June 11, 2026

MH/ci

Current Bill Text

Read the full stored bill text
SB1856 - 572R - S Ver

Senate Engrossed

K-12 education;
2026-2027.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1856

AN
ACT

amending sections 15-185, 15-901
and 15-945, Arizona Revised Statutes; amending title 15, chapter 11,
article 1, Arizona Revised Statutes, by adding section 15-1307; amending
section 41-1276, Arizona Revised Statutes; appropriating monies; relating
to kindergarten through grade twelve.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 15-185, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-185.

Charter schools; financing; civil penalties; transportation;
definition

A. A school district is not financially responsible
for any charter school that is sponsored by the state board of education, the
state board for charter schools, a university under the jurisdiction of the
Arizona board of regents, a community college district or a group of community
college districts.

B. Financial provisions for a charter school that is
sponsored by the state board of education, the state board for charter schools,
a university, a community college district or a group of community college
districts are as follows:

1. The charter school shall calculate a base support
level as prescribed in section 15-943, except that:

(a) Section 15-941 does not apply to these
charter schools.

(b) The small school weights prescribed in section
15-943, paragraph 1 apply if a charter holder holds one charter for one
or more school sites and the average daily membership for the school sites are
combined for the calculation of the small school weight. The small
school weight shall not be applied individually to a charter holder if one or
more of the following conditions exist and the combined average daily
membership derived from the following conditions is greater than six hundred:

(i) The organizational structure or management
agreement of the charter holder requires the charter holder or charter school
to contract with a specific management company.

(ii) The governing body of the charter holder has
identical membership to another charter holder in this state.

(iii) The charter holder is a subsidiary of a
corporation that has other subsidiaries that are charter holders in this state.

(iv) The charter holder holds more than one charter
in this state.

(c) Notwithstanding subdivision (b) of this
paragraph, for fiscal years 2015-2016 and 2016-2017, the department
of education shall reduce by thirty-three percent the amount provided by
the small school weight for charter schools prescribed in subdivision (b) of
this paragraph.

2. Notwithstanding paragraph 1 of this subsection,
the student count shall be determined initially using an estimated student
count based on actual registration of pupils before the beginning of the school
year. Notwithstanding section 15-1042, subsection F, student level data
submitted to the department may be used to determine estimated student counts.
After the first forty days, one hundred days or two hundred days in session, as
applicable, the charter school shall revise the student count to be equal to
the actual average daily membership, as defined in section 15-901, of the
charter school. Before the fortieth day, one hundredth day or two
hundredth day in session, as applicable, the state board of education, the
state board for charter schools, the sponsoring university, the sponsoring
community college district or the sponsoring group of community college
districts may require a charter school to report periodically regarding pupil
enrollment and attendance, and the department of education may revise its
computation of equalization assistance based on the report. A
charter school shall revise its student count, base support level and charter
additional assistance before May 15. A charter school that overestimated its
student count shall revise its budget before May 15. A charter
school that underestimated its student count may revise its budget before May
15.

3. A charter school may use section 15-855 for
the purposes of this section. The charter school and the department
of education shall prescribe procedures for determining average daily
membership.

4. Equalization assistance for the charter school
shall be determined by adding the amount of the base support level and charter
additional assistance. The amount of the charter additional
assistance is
$2,131.90

$2,174.54
per
student count in preschool programs for children with disabilities,
kindergarten programs and grades one through eight and
$2,484.69

$2,534.38
per student count in grades nine through
twelve.

5. The state board of education shall apportion
state aid from the appropriations made for such purposes to the state treasurer
for disbursement to the charter schools in each county in an amount as
determined by this paragraph. The apportionments shall be made as
prescribed in section 15-973, subsection B.

6. The charter school shall not charge tuition for
pupils who reside in this state, levy taxes or issue bonds. A
charter school may admit pupils who are not residents of this state and shall
charge tuition for those pupils in the same manner prescribed in section 15-823.

7. Not later than noon on the day preceding each
apportionment date established pursuant to paragraph 5 of this subsection, the
superintendent of public instruction shall furnish to the state treasurer an
abstract of the apportionment and shall certify the apportionment to the
department of administration, which shall draw its warrant in favor of the
charter schools for the amount apportioned.

C. If a pupil is enrolled in both a charter school
and a public school that is not a charter school, the sum of the daily
membership, which includes enrollment as prescribed in section 15-901,
subsection A, paragraph 1, subdivisions (a) and (b) and daily attendance as
prescribed in section 15-901, subsection A, paragraph 5, for that pupil
in the school district and the charter school shall not exceed
1.0. If a pupil is enrolled in both a charter school and a public
school that is not a charter school, the department of education shall direct
the average daily membership to the school with the most recent enrollment
date. On validation of actual enrollment in both a charter school
and a public school that is not a charter school and if the sum of the daily
membership or daily attendance for that pupil is greater than 1.0, the sum
shall be reduced to 1.0 and shall be apportioned between the public school and
the charter school based on the percentage of total time that the pupil is
enrolled or in attendance in the public school and the charter school. The
uniform system of financial records shall include guidelines to apportion the
pupil enrollment and attendance as provided in this section.

D. Charter schools are allowed to accept grants and
gifts to supplement their state funding, but it is not the intent of the
charter school law to require taxpayers to pay twice to educate the same
pupils. The base support level for a charter school or for a school district
sponsoring a charter school shall be reduced by an amount equal to the total
amount of monies received by a charter school from a federal or state agency if
the federal or state monies are intended for the basic maintenance and operations
of the school. The superintendent of public instruction shall
estimate the amount of the reduction for the budget year and shall revise the
reduction to reflect the actual amount before May 15 of the current
year. If the reduction results in a negative amount, the negative
amount shall be used in computing all budget limits and equalization
assistance, except that:

1. Equalization assistance shall not be less than
zero.

2. For a charter school sponsored by the state board
of education, the state board for charter schools, a university, a community
college district or a group of community college districts, the total of the
base support level and the charter additional assistance shall not be less than
zero.

E. If a charter school was a district public school
in the prior year and sponsored by the state board of education, the state
board for charter schools, a university, a community college district or a
group of community college districts, the reduction in subsection D of this
section applies. The reduction to the base support level of the
charter school shall equal the sum of the base support level and the charter
additional assistance received in the current year for those pupils who were
enrolled in the traditional public school in the prior year and are now
enrolled in the charter school in the current year.

F. Equalization assistance for charter schools shall
be provided as a single amount based on average daily membership without
categorical distinctions between maintenance and operations or capital.

G. At the request of a charter school, the county
school superintendent of the county where the charter school is located may
provide the same educational services to the charter school as prescribed in
section 15-308, subsection A. The county school superintendent
may charge a fee to recover costs for providing educational services to charter
schools.

H. If the sponsor of the charter school determines
at a public meeting that the charter school is not in compliance with federal
law, with the laws of this state or with its charter, the sponsor of a charter
school may submit a request to the department of education to withhold up to
ten percent of the monthly apportionment of state aid that would otherwise be
due the charter school. The department shall adjust the charter
school's apportionment accordingly. The sponsor shall provide
written notice to the charter school at least seventy-two hours before
the meeting and shall allow the charter school to respond to the allegations of
noncompliance at the meeting before the sponsor makes a final determination to
notify the department of education of noncompliance. The charter
school shall submit a corrective action plan to the sponsor on a date specified
by the sponsor at the meeting. The corrective action plan shall be
designed to correct deficiencies at the charter school and to ensure that the
charter school promptly returns to compliance. When the sponsor
determines that the charter school is in compliance, the department shall
restore the full amount of state aid payments to the charter school.

I. In addition to the withholding of state aid
payments pursuant to subsection H of this section, the sponsor of a charter
school may impose a civil penalty of $1,000 per occurrence if a charter school
fails to comply with the fingerprinting requirements prescribed in section 15-183,
subsection C or section 15-512. The sponsor of a charter
school shall not impose a civil penalty if it is the first time the charter
school is out of compliance with the fingerprinting requirements and if the
charter school provides proof within forty-eight hours after written
notification that an application for the appropriate fingerprint check has been
received by the department of public safety. The sponsor of the
charter school shall obtain proof that the charter school has been notified,
and the notification shall identify the date of the deadline and shall be
signed by both parties. The sponsor of a charter school shall
automatically impose a civil penalty of $1,000 per occurrence if the sponsor
determines that the charter school subsequently violates the fingerprinting
requirements. Civil penalties pursuant to this subsection shall be
assessed by requesting the department of education to reduce the amount of
state aid that the charter school would otherwise receive by an amount equal to
the civil penalty. The amount of state aid withheld shall revert to
the state general fund at the end of the fiscal year.

J. A charter school may receive and spend monies
distributed by the department of education pursuant to section 42-5029,
subsection E, section 42-5029.02, subsection A and section 37-521,
subsection B.

K. If a school district transports or contracts to
transport pupils to the Arizona state schools for the deaf and the blind during
any fiscal year, the school district may transport or contract with a charter
school to transport sensory impaired pupils during that same fiscal year to a
charter school if requested by the parent of the pupil and if the distance from
the pupil's place of actual residence within the school district to the charter
school is less than the distance from the pupil's place of actual residence
within the school district to the campus of the Arizona state schools for the
deaf and the blind.

L. Notwithstanding any other law, a university under
the jurisdiction of the Arizona board of regents, a community college district
or a group of community college districts shall not include any student in the
student count of the university, community college district or group of
community college districts for state funding purposes if that student is
enrolled in and attending a charter school sponsored by the university,
community college district or group of community college districts.

M. The governing body of a charter school shall
transmit a copy of its proposed budget or the summary of the proposed budget
and a notice of the public hearing to the department of education for posting
on the department of education's website not later than ten days before the
hearing and meeting. If the charter school maintains a website, the
charter school governing body shall post on its website a copy of its proposed
budget or the summary of the proposed budget and a notice of the public
hearing.

N. The governing body of a charter school shall
collaborate with the private organization that is approved by the state board
of education pursuant to section 15-792.02 to provide approved board
examination systems for the charter school.

O. If allowed by federal law, a charter school may
opt out of federal grant opportunities if the charter holder or the appropriate
governing body of the charter school determines that the federal requirements
impose unduly burdensome reporting requirements.

P. For the purposes of this section, "monies
intended for the basic maintenance and operations of the school" means
monies intended to provide support for the educational program of the school,
except that it does not include supplemental assistance for a specific purpose
or title VIII of the elementary and secondary education act of 1965
monies. The auditor general shall determine which federal or state
monies meet this definition.
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. "Revenue control limit" means the base
revenue control limit plus the transportation revenue control limit.

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

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

17. "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. "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)

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

(c)

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

(
c
) For fiscal
year 2026-2027, $5,215.53.

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

full-time
as defined in section 15-501, 1.00.

(b) If employed less than
full time

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

at least
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. Section 15-945, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-945.

Transportation support level

A. The support level for to and from school for each
school district for the current year shall be computed as follows:

1. Determine the approved daily route mileage of the
school district for the fiscal year prior to the current year.

2. Multiply the figure obtained in paragraph 1 of
this subsection by one hundred eighty, or for a school district that elects to
provide
at least
two hundred days of instruction pursuant
to section 15-902.04, multiply the figure obtained in paragraph 1 of this
subsection by two hundred.

3. Determine the number of eligible students
transported in the fiscal year prior to the current year.

4. Divide the amount determined in paragraph 1 of
this subsection by the amount determined in paragraph 3 of this subsection to
determine the approved daily route mileage per eligible student transported.

5. Determine the classification in column 1 of this
paragraph for the quotient determined in paragraph 4 of this subsection.
Multiply the product obtained in paragraph 2 of this subsection by the
corresponding state support level for each route mile as provided in column 2
of this paragraph.

�����
Column 1
���������������������������������
Column
2

Approved Daily Route��������������������� State Support Level
per

Mileage per Eligible�������������������������� Route Mile for

Student Transported
����������������������
Fiscal Year

2025-2026

2026-2027

0.5 or less��������������������������������������
3.01
3.07

More than 0.5 through 1.0������������������������
2.47
2.52

More than 1.0������������������������������������
3.01
3.07

6. Add the amount spent during the prior fiscal year
for bus tokens and bus passes for students who qualify as eligible students as
defined in section 15-901.

B. The support level for academic education, career
and technical education, vocational education and athletic trips for each
school district for the current year is computed as follows:

1. Determine the classification in column 1 of
paragraph 2 of this subsection for the quotient determined in subsection A,
paragraph 4 of this section.

2. Multiply the product obtained in subsection A,
paragraph 5 of this section by the corresponding state support level for
academic education, career and technical education, vocational education and
athletic trips as provided in column 2, 3 or 4 of this paragraph, whichever is
appropriate for the type of district.

�����
Column
1
�����������������
Column 2
��������
Column 3
��������
Column
4

Approved Daily
Route

Mileage per Eligible������� District Type�� District Type��� District
Type

Student Transported

��������
02 or
03
���
04
�
05

0.5 or less���������������������
0.15����������� 0.10������������ 0.25

More than 0.5
through 1.0������� 0.15����������� 0.10������������ 0.25�

More than 1.0�������������������
0.18����������� 0.12������������ 0.30�

For the purposes of this paragraph,
"district type 02" means a unified school district or an
accommodation school that offers instruction in grades nine through twelve,
"district type 03" means a common school district not within a high
school district, "district type 04" means a common school district
within a high school district or an accommodation school that does not offer
instruction in grades nine through twelve and "district type 05"
means a high school district.

C. The support level for extended school year
services for pupils with disabilities is computed as follows:

1. Determine the sum of the following:

(a) The total number of miles driven by all buses of
a school district while transporting eligible pupils with disabilities on
scheduled routes from their residence to the school of attendance and from the
school of attendance to their residence on routes for extended school year
services in accordance with section 15-881.

(b) The total number of miles driven 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 pupil with a disability from the place of the pupil's
residence to a school transportation pickup point or to the school facility of
attendance and from the school transportation scheduled return point or from
the school facility to the pupil's residence for extended school year services
in accordance with section 15-881.

2. Multiply the sum determined in paragraph 1 of
this subsection by the state support level for the district determined as
provided in subsection A, paragraph 5 of this section.

D. The transportation support level for each school
district for the current year is the sum of the support level for to and from
school as determined in subsection A of this section, the support level for
academic education, career and technical education, vocational education and
athletic trips as determined in subsection B of this section and the support
level for extended school year services for pupils with disabilities as
determined in subsection C of this section.

E.
The
state support level for each approved route mile, as provided in subsection A,
paragraph 5 of this section, shall be adjusted by the growth rate prescribed by
law, subject to appropriation.

F. School districts must provide the odometer
reading for each bus as of the end of the current year and the total bus
mileage during the current year.

G. A school district may include route mileage and
the number of riders to calculate funding pursuant to this section for
transporting eligible students using motor vehicles described in section 15-925.

END_STATUTE

Sec. 4. Title 15, chapter 11, article 1,
Arizona Revised Statutes, is amended by adding section 15-1307, to read:

START_STATUTE
15-1307.

Property proceeds fund; expenditure plan; review; requirements
for disposition of school buildings and grounds

A. The property proceeds fund is
established consisting of the proceeds from the sale or lease of school
buildings and grounds. The schools shall administer the fund and, except as
provided in subsection D of this section, shall deposit in the fund all monies
that the schools receive for the sale or lease of school buildings and grounds
on or after July 1, 2026. Monies in the fund are subject to legislative
appropriation and are exempt from the provisions of section 35-190
relating to lapsing of appropriations. On notice from the schools, the state
treasurer shall invest and divest monies in the fund as provided by section 35-313,
and monies earned from investment shall be credited to the fund.

B. In any fiscal year in which the
legislature appropriates monies from the property proceeds fund to the schools,
the schools shall prepare an expenditure plan for the monies and shall submit
the plan to the joint legislative budget committee for review.

C. Before the schools may sell school
buildings or grounds, the schools shall do all of the following:

1. Determine
the appraised value of the school buildings or grounds by ordering independent
appraisals from at least two different firms. The schools shall
procure appraisal services pursuant to title 41, chapter 23 and shall award a
contract for appraisal services to a firm only if the appraiser is well
qualified and a designated member of a nationally recognized real estate
appraisal association, institute or society. The schools may use any appraisal
that is ordered pursuant to this paragraph as the appraised value of the school
buildings or grounds.

2. Submit a proposal to sell school
buildings or grounds to the joint committee on capital review for review.

3. Sell the school buildings or
grounds pursuant to section 37-803.

D. The schools are not required to
deposit monies in the property proceeds fund if the schools receive the monies
for any of the following:

1. Fees, rentals and other charges
for the use of school facilities for nonschool events as described in section
15-1323.

2. Proceeds from the lease of school
buildings or grounds to a school.

3. Proceeds from the lease of school
buildings or grounds for a period of less than one year. A lease of school
buildings or grounds for less than one year that includes an automatic lease
renewal resulting in a total lease duration that exceeds one year is considered
a lease for more than one year for the purposes of this paragraph.
END_STATUTE

Sec. 5. Section 41-1276, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1276.

Truth in taxation levy for equalization assistance to school
districts

A. On or before February 15 of each year, the joint
legislative budget committee shall compute and transmit the truth in taxation
rates for equalization assistance for school districts for the following fiscal
year to:

1. The chairpersons of the house of representatives
ways and means committee and the senate finance committee, or their successor
committees.

2. The chairpersons of the appropriations committees
of the senate and the house of representatives, or their successor committees.

B. The truth in taxation rates consist of the
qualifying tax rate for a high school district or a common school district
within a high school district that does not offer instruction in high school
subjects pursuant to section 15-971, subsection B, paragraph 1 and a
qualifying tax rate for a unified district, a common school district not within
a high school district or a common school district within a high school
district that offers instruction in high school subjects pursuant to section 15-971,
subsection B, paragraph 2 that will offset the change in net assessed valuation
of property that was subject to tax in the prior year.

C. The joint legislative budget committee shall
compute the truth in taxation rates as follows:

1. Determine the statewide net assessed value for
the preceding tax year as provided in section 42-17151, subsection A,
paragraph 3.

2. Determine the statewide net assessed value for
the current tax year, excluding the net assessed value of property that was not
subject to tax in the preceding year.

3. Divide the amount determined in paragraph 1 of
this subsection by the amount determined in paragraph 2 of this subsection.

4. Adjust the qualifying tax rates for the current
fiscal year by the percentage determined in paragraph 3 of this subsection in
order to offset the change in net assessed value.

D. Except as provided in subsections E and G of this
section, the qualifying tax rate for a high school district or a common school
district within a high school district that does not offer instruction in high
school subjects and the qualifying tax rate for a unified school district, a
common school district not within a high school district or a common school
district within a high school district that offers instruction in high school
subjects for the following fiscal year shall be the rate determined by the
joint legislative budget committee pursuant to subsection C of this
section. The committee shall transmit the rates to the
superintendent of public instruction and the county boards of supervisors by
March 15 of each year.

E. If the legislature proposes qualifying tax rates
that exceed the truth in taxation rate:

1. The house of representatives ways and means
committee and the senate finance committee, or their successor committees,
shall hold a joint hearing on or before February 28 and publish a notice of a
truth in taxation hearing subject to the following requirements:

(a) The notice shall be published twice in a
newspaper of general circulation in this state that is published at the state
capital. The first publication shall be at least fourteen but not
more than twenty days before the date of the hearing. The second publication
shall be at least seven but not more than ten days before the date of the
hearing.

(b) The notice shall be published in a location
other than the classified or legal advertising section of the newspaper.

(c) The notice shall be at least one-fourth
page in size and shall be surrounded by a solid black border at least one-eighth
inch in width.

(d) The notice shall be in the following form, with
the "truth in taxation hearing � notice of tax increase"
headline in at least eighteen-point type:

Truth
in Taxation Hearing

Notice
of Tax Increase

In compliance with section 41-1276, Arizona Revised
Statutes, the state legislature is notifying property taxpayers in Arizona of
the legislature's intention to raise the property tax levy over last year's
level.

The proposed tax increase will cause the taxes on a $100,000
home to be
$(total proposed taxes including the tax increase)
. Without
the proposed tax increase, the total taxes that would be owed on a $100,000
home would have been $_______.

All interested citizens are invited to attend a public
hearing on the tax increase that is scheduled to be held
(date and
time)
at
(location)
.

(e) For the purposes of computing the tax increase
on a

$100,000 home as required by
the notice, the joint meeting of the house of representatives ways and means
committee and the senate finance committee, or their successor committees,
shall consider the difference between the truth in taxation rate and the proposed
increased rate.

2. The joint meeting of the house of representatives
ways and means committee and the senate finance committee, or their successor
committees, shall consider any motion to recommend the proposed tax rates to
the full legislature by roll call vote.

F. In addition to publishing the truth in taxation
notice under subsection E, paragraph 1 of this section, the joint meeting of
the house of representatives ways and means committee and the senate finance
committee, or their successor committees, shall issue a press release
containing the truth in taxation notice.

G. Notwithstanding any other law, the legislature
shall not adopt a state budget that provides for qualifying tax rates pursuant
to section 15-971 that exceed the truth in taxation rates computed
pursuant to subsection A of this section unless the rates are adopted by a
concurrent resolution approved by an affirmative roll call vote of two-thirds
of the members of each house of the legislature before the legislature enacts
the general appropriations bill. If the resolution is not approved
by two-thirds of the members of each house of the legislature, the rates
for the following fiscal year shall be the truth in taxation rates determined
pursuant to subsection C of this section and shall be transmitted to the
superintendent of public instruction and the county boards of supervisors.

H. Notwithstanding subsection C of this section and
if approved by the qualified electors voting at a statewide general election,
the legislature shall not set a qualifying tax rate that exceeds $2.1265 for a
common or high school district or $4.253 for a unified school district. The
legislature shall not set a county equalization assistance for education rate
that exceeds $0.5123.

I. Pursuant to subsection C of this section, the
qualifying tax rate in tax year
2025

2026
for
a high school district or a common school district within a high school
district that does not offer instruction in high school subjects as provided in
section 15-447 is
$1.5606

$1.5128
and
for a unified school district, a common school district not within a high
school district or a common school district within a high school district that
offers instruction in high school subjects as provided in section 15-447 is

$3.1212
$3.0256
.
END_STATUTE

Sec.
6.

Failing schools tutoring fund; use of monies; fiscal year 2026-2027;
report

A. Notwithstanding
section 15-241, Arizona Revised Statutes, the department of education may
use monies in the failing schools tutoring fund established by section 15-241,
Arizona Revised Statutes, in fiscal year 2026-2027 for the following
school improvements:

1. To
provide assistance to school districts and charter schools for professional
development and coaching for teachers and principals.

2. To
monitor the progress of school districts and charter schools toward improved
academic outcomes.

3. Outreach
to ensure that schools and parents have access to tutoring opportunities.

B. On
or before September 1, 2026, the department of education shall report the
proposed expenditures for fiscal year 2026-2027 pursuant to subsection A
of this section to the governor, the president of the senate, the speaker of
the house of representatives, the director of the joint legislative budget
committee and the director of the governor's office of strategic planning and
budgeting.

Sec. 7.
Child sexual
abuse and assault awareness and prevention pilot program; contract; provider;
curriculum development; posting requirements; distribution of materials to new
parents by the department of health services; reporting requirements; delayed
repeal; definitions

A. The child sexual abuse
and assault awareness and prevention pilot program is established in the
department of education. On or before July 1, 2027, the department
of education shall allow public schools to apply to
participate in the pilot program and shall select six public schools from the
applicants to participate in the pilot program during the 2027-2028
school year. The department of education
shall consult
with the department of child safety and organizations that are operated by
survivors of grooming or human trafficking
in
developing the pilot program established by this subsection
and the curriculum developed pursuant to subsection B,
paragraph 3 of this section. The pilot program must include:

1. For teachers, at least
four hours of in-person, evidence-based instructional modules that
are provided by an organization
that is selected pursuant to subsection B, paragraph 2 of this section and that

may include the following:

(a) Training regarding the
prevention and identification of, and responses to, child sexual abuse and
assault, including
exploitation
,
grooming, grooming with the intent
to exploit and technology-facilitated abuse.

(b) Resources to further
student, teacher and parental awareness and prevention of child sexual abuse
and assault, including
exploitation
,
grooming, grooming with the intent
to exploit and technology-facilitated abuse.

2. For
the parents of students
who
are enrolled in the participating schools, at least three hours of in-person,
evidence-based instruction
provided by an
organization that is selected pursuant to subsection B, paragraph 2 of this
section and age-appropriate educational materials that are designed for
children in
kindergarten programs or any of grades

one through
twelve
regarding child sexual abuse and assault awareness and prevention
,
including exploitation, grooming
behaviors and grooming with the intent to exploit. The evidence-based
instruction
that an organization provides to
the parents of students who are enrolled in the participating school pursuant
to this paragraph may include instruction in:

(a) Skills to recognize the
following:

(i) Child sexual abuse and
assault.

(ii) Boundary violations
and unwanted forms of contact.

(iii) Grooming behaviors,
including manipulation, trust building, secrecy, desensitization and isolation.

(iv) Exploitation and
grooming with the intent to exploit, including online grooming, sextortion and
technology-facilitated exploitation.

(v) Patterns, tactics and
warning signs associated with grooming and exploitation.

(b) Strategies that:

(i) Promote disclosure.

(ii) Reduce self-blame.

(iii) Mobilize bystanders.

3. A uniform child sexual
abuse and assault response policy and reporting procedure that is based on best
practices and that may include:

(a) Actions that victims of
child sexual abuse and assault may take to obtain assistance.

(b) Intervention and
counseling options for victims of child sexual abuse and assault.

(c) Access to educational
resources to enable victims of child sexual abuse and assault to succeed in
school.

(d) Uniform procedures for
reporting instances of child sexual abuse and assault to school staff members.

(e) Uniform procedures for
notifying the parents of any student who is a victim of an incident that
involves child sexual abuse, child sexual assault, grooming, exploitation,
grooming with the intent to exploit or technology-facilitated abuse not
later than twenty-four hours after any school personnel become aware of
the incident.

B. The department of
education
:

1. May contract with a
provider to implement the pilot program established by subsection A of this
section if the provider demonstrates that the provider is able to meet all of
the requirements prescribed by subsection A of this section.

2. Shall select one or more
organizations to provide the instructional modules for teachers pursuant to
subsection A, paragraph 1 of this section or the instruction for the parents of
students pursuant to subsection A, paragraph 2 of this section, or both. The
department of education shall select an organization pursuant to this paragraph
only if the organization meets both of the following:

(a) Is organized and
operated for the purpose of preventing child sexual abuse, promoting grooming
awareness or preventing human trafficking.

(b) Ensures that the
individuals who will provide instruction to teachers and parents of students
are either qualified survivors of grooming or human trafficking or advocates
who have direct expertise in child sexual abuse, grooming and human trafficking
prevention.

3. Beginning on the
effective date of this section, shall gather stakeholder input to develop a
curriculum for the pilot program, including scheduling stakeholder meetings,
subject to the following:

(a) The department of
education shall solicit input from representatives of each of the following:

(i) The department of child
safety.

(ii) Organizations that are
organized and operated for the purpose of preventing child sexual abuse,
grooming or human trafficking.

(iii) Survivors of child
sexual abuse, grooming and human trafficking.

(b) The department of
education shall select an organization to develop the curriculum for the pilot
program, coordinate stakeholder input and ensure that the curriculum is
survivor-informed and prevention-focused. The department
of education shall select an organization that both:

(i) Is organized and
operated for the purpose of preventing child sexual abuse, grooming or human
trafficking.

(ii) Demonstrates that the
organization has experience providing survivor-informed prevention
education.

(c) The curriculum
developed pursuant to subdivision (b) of this paragraph is subject to approval
by the state board of education and the department of education.

4. Shall make the
educational materials described in subsection A, paragraph 2 of this section
available to the public on the department of education's website and provide
the webpage address for the educational materials to each participating school
and to the director of the department of health services.

5. Shall select an
organization to provide by mail a printed copy of the educational materials
described in subsection A, paragraph 2 of this section on receipt of any
request that is submitted pursuant to subsection C, paragraph 2, subdivision
(b) of this section. If sufficient monies are available, the department of
education may reimburse the organization that is selected pursuant to this
paragraph for the actual costs of providing printed copies of the educational
materials to the parents of students.

C. A public school that
participates in the pilot program established by subsection A of this section
:

1. May not require any
parent to participate in the pilot program.

2. On enrollment of a
student, shall provide to the student's parent both:

(a) The webpage address described in
subsection B, paragraph 4 of this section.

(b) An opportunity to
request a printed copy of the educational materials described in subsection A,
paragraph 2 of this section. If a student's parent requests a printed copy of
the educational materials pursuant to this subdivision and authorizes the school
to disclose the parent's address, the school shall submit the request and
address to the organization that is selected by the department of education
pursuant to subsection B, paragraph 5 of this section, and the organization
shall mail a printed copy of the educational materials to the student's parent.

D. On or before October 1,
2028, each public school that participates in the pilot program established by
subsection A of this section shall submit a report to the department of
education and a copy of the report to the department of child safety that
includes all of the following:

1. The number of
parents who received evidence-based instruction
through the pilot program, together with the number of hours of instruction
that the
organization that is selected pursuant
to subsection B, paragraph 2 of this section provided.

2. The number of teachers
who completed the evidence-based instructional modules provided through
the pilot program.

3. Any testimony or
comments from teachers or the parents of students relating to the pilot
program.

4. Whether the school
intends to continue providing instructional modules to teachers or instruction
to
the parents of students, or both,
through an organization that is selected pursuant to
subsection B, paragraph 2 of this section in subsequent school years.

E. The department of health
services shall include in the educational materials and information that is
compiled and provided to new parents pursuant to section 36-503.04,
Arizona Revised Statutes, the webpage address described in subsection B,
paragraph 4 of this section.

F. For the purposes of this
section:

1. "Grooming"
means a pattern of conduct used to gain a minor's trust, desensitize the minor
to inappropriate conduct and facilitate exploitation.

2. "Exploitation"
means the manipulation, abuse or use of a minor for sexual purposes, sexual
conduct, sexual trafficking, sexual extortion or other sexual abuse.

F. This section is
repealed from and after December 31, 2028.

Sec. 8.
Department of
education; state aid; fiscal year 2024-2025 recalculation; fiscal year
2026-2027 increase; delayed repeal

A. Notwithstanding section
15-915, subsection B, Arizona Revised Statutes, the department of education
shall recalculate the state aid for the Alhambra elementary school district in
fiscal year 2024-2025 as the result of a change in the assessed valuation of
property within the school district and shall increase the state aid for the
Alhambra elementary school district in fiscal year 2026-2027 by $852,200.

B. This section is repealed
from and after December 31, 2027.

Sec.
9.

Intent

The
governor and the legislature intend that school districts increase the total
percentage of classroom spending over the previous year's percentages in the
combined categories of instruction, student support and instructional support
as prescribed by the auditor general.