SB1213 - 501R

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

Section 1. Section 15-1401, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1401. Definitions

In this chapter, unless the context otherwise requires:

1. "Accredited" means accredited by a regional accrediting agency recognized by the United States department of education or by the council on postsecondary accreditation.

2. "Additional short‑term classes" means those classes which that are not in session on the forty‑fifth day of the fall or spring semester, which that commence at various times during the fiscal year and which that are offered over a period of less than sixteen weeks.

3. "Budget year" means the fiscal year for which the community college district is budgeting and which that immediately follows the current year.

4. "Community college" means an educational institution that is operated by a district board and that provides a program not exceeding two years' training in the arts, sciences and humanities beyond the twelfth grade of the public or private high school course of study or vocational education, including terminal courses of a technical and vocational nature and basic adult education courses.

5. "Current year" means the fiscal year in which the community college district is operating.

6. "District" means a community college district that is established pursuant to sections 15‑1402 and 15‑1403 or section 15-1402.01 and that is a political subdivision of this state and, unless otherwise specified, includes provisional community college districts established pursuant to section 15‑1409.

7. "District board" means the community college district governing board.

8. "Full‑time equivalent student" means student enrollment for fifteen community college semester credit units per semester.

9. "Open entry, open exit classes" means those classes in which students enter or exit based on mastery of specified competencies and which that commence at various times during the fiscal year.

10. "Operational expense budget" means the budget as adopted by the district board pursuant to section 15‑1461.

11. "Operational expenses" means the administration, instruction, operation of community college plant, maintenance of community college plant, fixed charges and contingencies incurred in the operation of a district exclusive of all capital outlay items, special levies, auxiliary enterprise funds, restricted funds and bond service items.

12. "Provisional community college district" means a community college district organized pursuant to section 15‑1409. END_STATUTE

Sec. 2. Section 15-1402, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1402. Community college districts; requirements; exception

A. Community college districts may be organized under the provisions of this chapter for a single county, two or more contiguous counties or an existing community college district and contiguous counties not part of any community college district if the proposed district has a primary assessed valuation, based on the valuation for the preceding year, of at least four hundred forty‑eight million, seventeen thousand, two hundred dollars and a minimum population of forty thousand persons who are fifteen or more years of age, as determined by the most recent federal census.

B. Beginning with fiscal year 1993‑1994, the minimum primary assessed valuation required to organize a community college district as provided in subsection A of this section increases each year by the percentage change in total primary assessed valuation for all of the districts with a population of less than five hundred thousand persons according to the most recent United States decennial census using actual primary assessed valuation numbers from the prior two years.

C. The requirements of this section do not apply to community college districts organized pursuant to section 15-1402.01. END_STATUTE

Sec. 3. Title 15, chapter 12, article 1, Arizona Revised Statutes, is amended by adding section 15-1402.01, to read:

START_STATUTE15-1402.01. Alternative requirements for community college districts

A county that does not meet the requirements prescribed in section 15‑1402 may organize a community college district under this chapter if all of the following requirements have been met:

1. A provisional community college district has been in operation in that county for at least five years immediately before the formation of the proposed community college district pursuant to this section.

2. The most recent number of full-time equivalent student enrollment calculated pursuant to section 15-1466.01 for the provisional community college district is at least nine hundred.

3. The proposed community college district is actively seeking accreditation from a regional accrediting agency recognized by the United States department of education or by the council on postsecondary accreditation.

4. A member of the public requests, or the governing board schedules, public meetings to discuss and hear testimony on the conversion of the provisional community college district to an independent community college district.

5. At the next regularly scheduled meeting after the meeting prescribed in paragraph 4 of this section, the governing board of the provisional college district adopts a resolution to form a community college district pursuant to this section. Notwithstanding section 42-17056, after the provisional community college district is converted to a community college district formed pursuant to this section the governing board may call an election on a general election date of the board's choice to seek voter approval to increase the property tax rate for the provisional community college district. Once a property tax rate is approved by the voters the property tax rate shall not be increased.

6. The provisional community college district has maintained a regional accreditation and oversight relationship with another community college district until the conversion of the provisional community college district to an independent community college district.END_STATUTE

Sec. 4. Section 15-1403, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1403. Procedure to form a district; exception

A. For the purpose of forming a district, not less than ten per cent of the qualified electors in the territory included in the proposed district, or where a district consists of more than one county not less than ten per cent of the qualified electors in each county, shall petition the county school superintendent for the establishment of the district. Where a district consists of more than one county, the signatures of the qualified electors on the petition shall be submitted to the county school superintendent of the county of which the qualified electors are residents, provided that the county school superintendent of the county with the larger population, as determined by the most recent federal census, shall be the custodian of the completed petition. The petition shall set forth the name of the proposed district and its boundaries. The county school superintendent shall verify the signatures thereon, provided that whenever a proposed district consists of more than one county the county school superintendent of the county with the least population shall verify the signatures on the petition from his that county prior to submitting the petition to the county school superintendent of the county with the larger population.

B. The county school superintendent who is the custodian of the completed petition shall transmit the petition to the county board of supervisors, or if the district consists of more than one county, to the county board of supervisors of the county with the largest population, which shall determine whether the proposed district meets the minimum standards of assessed valuation and population as provided in section 15‑1402.

C. If the county board of supervisors determines that the proposed district meets the minimum standards of assessed valuation and population prescribed in subsection B of this section, the county, or counties, shall call and conduct an election, as prescribed in this article. If the majority of the votes cast in the proposed district, consisting of one county, favors favor the formation of the district, such a district is deemed to be formed, as provided in section 15‑1404. Where the proposed district consists of more than one county, there shall be a majority of the votes cast in each county favoring the formation of the district before the district is deemed to be formed, as provided in section 15‑1404.

D. This section does not apply to community college districts organized pursuant to section 15-1402.01. END_STATUTE

Sec. 5. Section 15-1407, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1407. Formation of new district by subdivision of existing district; division of assets

A. If two or more contiguous counties have formed a community college district, a new district may be formed in one or more of the counties by dissolution of the existing district if each county in which a new district is formed meets the requirements prescribed in section 15‑1402. Except as provided in this section, the procedures for dissolution of the district shall be as prescribed in section 15‑1403 for the formation of a district in more than one county.

B. The election shall be held as provided in section 15‑1404, except that a majority of the qualified electors in each of the counties in the existing district must approve the dissolution of the existing district and the formation of the new district.

C. If a county is within a community college district which that is dissolved pursuant to this section and the county does not meet the requirements of section 15‑1402 or 15‑1402.01, the county is no longer part of an established community college district.

D. The district board of the existing district shall prepare a projected list of assets for the existing district before the end of the fiscal year in which the election is held. The district boards of the existing district and the new district shall prepare a final statement of assets for the existing district as of the end of the fiscal year in which the election was held. The district boards of the existing district and the new district shall set aside sufficient assets or provide other means to satisfy the liabilities of the existing district and approve the final division of all assets by September 15 of the year in which the new district becomes operative. END_STATUTE

Sec. 6. Section 15-1409, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1409. Provisional community college districts; formation; governing board; powers and duties; issuance and sale of bonds for capital outlay

A. A provisional community college district shall contract with an existing community college district to provide instructional and student services within the provisional community college district.

B. The minimum assessed valuation and population requirements prescribed in section 15‑1402 do not apply to provisional community college districts.

C. A provisional community college district shall be formed and a provisional community college district governing board shall be elected in the same manner prescribed in sections 15‑1403, 15‑1404 and 15‑1441, except that the county board of supervisors by majority vote may adopt a resolution to submit the question of the formation of a provisional community college district and the approval of a proposed tax rate to fund the provisional community college district directly to the qualified electors of the county at a special or general election called for that purpose as prescribed in section 16‑204 and title 35, chapter 3, article 3. The resolution adopted by the county board of supervisors shall include a statement that the primary property tax levy limit for the provisional community college district shall be no less than the levy limit of the most recently formed community college district in this state.

D. Except as provided in this section, a provisional community college district governing board has the same powers and duties specified in section 15‑1444 for community college districts.

E. A provisional community college district shall not award degrees, certificates or diplomas.

F. A provisional community college district is not eligible to receive equalization aid pursuant to section 15‑1468 or state contribution for capital outlay for initial or additional campuses pursuant to section 15‑1463.

G. The state aid eligibility requirements prescribed in section 15‑1466, subsection G E, paragraphs 1 and 2 do not apply to provisional community college districts.

H. Notwithstanding any other law, the same student shall not be counted twice as a full‑time equivalent student in both a provisional community college district and a community college district. Notwithstanding any other law, beginning with the fiscal year after the year in which the provisional community college district is formed and has established its primary tax rate, a district that provides services in a provisional district pursuant to section 15‑1470 shall no longer count these students in the district's full‑time equivalent student count.

I. If a provisional community college district is converted into a community college district by the formation of a community college district pursuant to section 15‑1402 or 15‑1402.01, the provisional community college district is dissolved and any equipment, property, personnel, liabilities and assets are transferred to the community college district.

J. If a provisional community college district is formed in a county that provides reimbursement for the attendance of nonresident state students pursuant to section 15‑1469, that county shall continue to provide reimbursement payments to community college districts for the remainder of the fiscal year in which the provisional community college district is formed, provided that the county board of supervisors adopts a levy that is at least equal to the sum of the reimbursement payments and the amount of the community college services provided in the fiscal year immediately before the formation of the provisional community college district.

K. The board of supervisors of a county that has formed a provisional community college district by majority vote may enter into an intergovernmental agreement to loan monies to the governing board of the provisional community college district in an amount that does not exceed two hundred thousand dollars. Any loan pursuant to this subsection shall be repaid from the next scheduled collection of property taxes to fund the provisional community college district. The annual interest charges on any loan pursuant to this subsection shall not exceed five per cent.

L. A provisional community college district may issue bonds for capital outlay purposes in the same manner prescribed in section 15‑1465 for community college districts. The governing board of the provisional community college district is solely responsible for determining the encumbrance and approval of the expenditure of the proceeds of the bonds issued pursuant to this subsection and shall not delegate or transfer this authority to any other entity. END_STATUTE

Sec. 7. Section 15-1481, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1481. Definitions

In this article, unless the context otherwise requires:

1. "Acquire" includes purchase, erect, build, construct, reconstruct, repair, replace, extend, better, furnish, equip, develop, improve and embellish.

2. "Board" means the governing board of a community college district or its successors, but does not include provisional community college districts as prescribed in section 15‑1409.

3. "Bonds" means any bonds issued pursuant to this article.

4. "Federal agency" means the housing and home finance agency, the United States of America or any of its officers or agencies designated or created to make grants or loans of monies for public construction work.

5. "Institution" means any community college district that is organized in this state pursuant to section 15‑1402 or 15‑1402.01, but does not include provisional community college districts as prescribed in section 15‑1409.

6. "Project" means one or more classrooms, student or faculty residence halls, dormitories, dining halls, student union buildings, field houses, stadia and other revenue producing buildings located at the institution, together with sites for the buildings, and including includes equipment, furnishings, heating, lighting and other service facilities in connection with the buildings. END_STATUTE

Sec. 8. Section 15-1851, Arizona Revised Statutes, as amended by Laws 2010, chapter 332, section 24, is amended to read:

START_STATUTE15-1851. Commission for postsecondary education; purpose; report; members; terms; powers and duties; compensation; quorum; immunity; definition

A. The commission for postsecondary education is established and shall administer the applicable programs identified under section 1203 of the higher education act amendments of 1998 (P.L. 105‑244), including the leveraging educational assistance partnership program, the federal family education loan program and the Paul Douglas teacher scholarships program, and shall supervise the state guarantee agency under the higher education act amendments of 1998.

B. In addition to the responsibilities prescribed in subsection A of this section, the commission shall:

1. Provide a forum to public and private postsecondary education institutions for discussion of issues of mutual interest, including the following:

(a) The postsecondary needs of unserved and underserved individuals in this state.

(b) The resources of public and private institutions, organizations and agencies that are located in this state and that are capable of providing postsecondary education opportunities.

(d) Cooperative comprehensive instructional and capital planning.

2. Provide reports pursuant to this subsection on discussions of issues of mutual interest.

3. Coordinate and promote collaborative studies on issues of mutual interest to public and private postsecondary education institutions.

4. Compile and disseminate information to the public regarding postsecondary education opportunities in this state.

5. Prepare an annual report that summarizes the results of the commission's activities prescribed in this section and section 15‑1852. The annual report shall be submitted to the speaker of the house of representatives, the president of the senate, the governor and the Arizona state library, archives and public records by December 28.

6. Administer the mathematics, science and special education teacher student loan program established by chapter 13, article 11 of this title.

C. The commission consists of the executive director of the Arizona board of regents, the executive director of the state board for private postsecondary education and the following additional members who shall be appointed by the governor pursuant to section 38‑211:

1. Two members who hold senior executive or managerial positions in a university under the jurisdiction of the Arizona board of regents.

2. Two members who hold senior executive or managerial positions in a community college district, one representing a community college district in a county with a population of five hundred thousand persons or more and one representing a community college district in a county with a population of less than five hundred thousand persons.

3. Two members who hold senior executive or managerial positions in private postsecondary institutions of higher education that are licensed under title 32, chapter 30, that are located in this state, that offer bachelor or higher degrees and that are accredited by a regional accreditation agency approved by the United States department of education.

4. Two members who hold senior executive or managerial positions in private postsecondary institutions of higher education that are licensed under title 32, chapter 30, that are located in this state, that offer vocational education programs and that are accredited by a national accreditation agency approved by the United States department of education.

5. One member who holds a senior executive or managerial position in a private cosmetology school that is licensed under title 32, chapter 5, that is located in this state, that offers cosmetology programs approved by the board of cosmetology and that is accredited by a national accreditation agency approved by the United States department of education.

6. One member who holds a senior executive or managerial position in an institution that is licensed under title 32, chapter 23 or under 14 Code of Federal Regulations part 147, that offers vocational education programs at the postsecondary level, that is located in this state and that is not an institution that is qualified under any other category.

7. One member who has held a senior executive or managerial level position in commerce or industry in this state for at least three years before the member's appointment and who is not qualified to serve under any other category.

8. Two members who hold senior executive or managerial positions in the high school education system in this state.

9. One member who is an owner, operator or administrator of a charter school in this state.

D. Members of the commission appointed pursuant to subsection C, paragraphs 1 through 9 of this section shall serve four year terms. Appointed members of the commission shall be residents of this state. Appointed members of the commission at all times during their terms shall continue to be eligible for appointment under the category that they were appointed to represent. Terms of appointed members of the commission begin on the third Monday in January. No appointed member of the commission may serve more than two consecutive terms.

E. The executive director of the Arizona board of regents and the executive director of the state board for private postsecondary education serve as members of the commission during their respective terms of office and are not eligible to vote with respect to the commission's review of any postsecondary institution.

F. Members appointed pursuant to subsection C, paragraphs 1 through 9 of this section are eligible to receive compensation pursuant to section 38‑611 for each day spent in the performance of commission duties and may be reimbursed for expenses properly incurred in connection with the attendance at meetings or hearings of the commission.

G. The governor shall appoint a chairman from among the members of the commission who shall serve a one year term that begins on the third Monday in January.

H. A majority of the members of the commission constitute a quorum for the transaction of commission business. The vote of a majority of the quorum constitutes authority for the commission to act.

I. Members of the commission are immune from personal liability with respect to all actions that are taken in good faith and within the scope of the commission's authority.

J. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15‑1402 and 15‑1403 or section 15‑1402.01 and that is a political subdivision of this state. END_STATUTE

Sec. 9. Section 15-1854, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1854. Private postsecondary education student financial assistance program; fund; definition

A. A private postsecondary education student financial assistance program is established. The commission shall develop, implement and administer the program. A student who obtains an associate degree from a community college district or from a community college under the jurisdiction of an Indian tribe in this state that meets the same accreditation standards as a community college district and who registers for enrollment as a full‑time student in a baccalaureate program at a private, nationally or regionally accredited four year degree granting college or university chartered in this state is eligible to submit an application to the commission for participation in the program. The commission shall establish eligibility criteria for the program, including financial need and academic merit, shall develop application forms, procedures and deadlines and shall select qualifying students each year for participation in the program. Participating students shall receive an award in an amount of up to two thousand dollars annually not to exceed two years or four thousand dollars to be used to pay all or a portion of the tuition and fees charged at the private, accredited four year college or university.

B. A private postsecondary education student financial assistance fund is established consisting of legislative appropriations. The commission shall administer the fund. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. The commission shall make awards for payment of tuition at eligible colleges or universities to students who are selected to participate in the private postsecondary education student financial assistance program pursuant to subsection A of this section.

C. The commission shall develop a program evaluation procedure in order to determine the effectiveness of the private postsecondary education student financial assistance program in shifting students who would have otherwise attended a public four year college or university to private four year degree granting colleges or universities.

D. A student who fails to receive a baccalaureate degree within a three year period of receipt of the program award shall reimburse the private postsecondary education student financial assistance fund for all awards received pursuant to subsection A of this section. On receipt of supporting documentation from the student, for good cause shown the commission may provide for extensions of the three year period to obtain a baccalaureate degree.

E. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15‑1402 and 15‑1403 or section 15‑1402.01 and that is a political subdivision of this state. END_STATUTE