House of Representatives

HB 2700

JTEDs; omnibus

Sponsors: Representatives Anderson, Knaperek, Weiers J, et al.

dp	Committee on K-12 Education
DPA	Committee on Appropriations (B)
X	Caucus and COW
	As Engrossed and As Passed the House

HB 2700 establishes joint technological education district (JTED) governing board responsibilities, requires written agreements between JTEDs and other education entities, lists the requirements of the written agreements, subjects JTEDs to current statutory provisions regarding open enrollment and transportation, repeals a JTED session law basic state aid cap for FY 2005-06 and makes numerous other changes to the statutes related to JTEDs.

History

Laws 1990, Chapter 248, Section 1 allowed school districts to form JTEDs to improve vocational education offerings and serve students more cost-efficiently.  In order to form a JTED, interested school districts are required to study the need to establish a joint district and initiate a plan for the establishment and operation of the district, including a proposed budget.   The governing boards must submit the study and plan to the State Board for Vocational and Technological Education (now the State Board of Education, SBE).  If the SBE determines that the plan submitted for the JTED has met the statutory requirements, the proposal is submitted to the qualified electors of the school district seeking to become a part of the joint district at an election.  If approved by the voters, the school district becomes operational as part of the JTED on the following July 1.  Statute establishes the size of a JTED board as it is developed, depending on the number of participating school districts.

JTEDs are allowed to levy taxes per statute, including county equalization assistance, but any additional tax levies must be on the secondary tax.  Additionally, JTEDs receive state financial assistance in a similar manner as school districts and have limited bonding capabilities.   

JTEDs are available to all school age children within the participating school districts, but limitations exist on the funding of those students.  The joint district board may collect tuition for adult students and students who are not residents of school districts participating in the JTED.

Currently, ten JTEDs exist across Arizona serving a student attendance that exceeds 10,000 average daily membership (ADM).  Statewide Basic State Aid costs for JTEDs for FY 2003-04 equaled approximately $35,000,000.

In December 2004, the Office of the Auditor General Division of School Audits completed a special study on JTEDs, which was an analysis of an urban and rural JTED as requested legislatively through the Joint Legislative Audit Committee.  The special study of JTEDs found that JTED ADM statewide increased by approximately 5,000 pupils, which was nearly double the previous amount, under the moratorium and cap.  The special study contains numerous other findings and recommendations based on the items requested to be studied.

Provisions

· Defines the terms joint technological education course and joint technological education district.

· Places the content and quality of the courses offered by the JTED, the quality and salaries of teachers who provide instruction on behalf of the JTED and the reimbursement of other entities for the facilities used by the JTED under the management and control of the JTED governing board.

· Prohibits a person who is employed by a school district in Arizona or who is a member of a school district governing board from serving on the JTED board.

· Subjects JTEDs to current statutory provisions regarding open enrollment transportation policies.

· Expands the prohibition of JTEDs including K-8 pupils in their average daily membership to prohibit the inclusion of pupils in grade 9.

· Caps the primary and secondary tax levy for JTED funding at $.05/$100 assessed valuation.

· Requires agreements between JTEDs and a school district, another JTED, a charter school or a community college district to be written contracts.  Currently, statute requires intergovernmental agreements for JTED agreements.  Additionally, the Auditor General must modify the Uniform System of Financial Records and budget forms to reflect the written agreements.

· Lists the items that each written contract must completely and accurately include.

· Repeals a JTED session law basic state aid cap for FY 2005-06.

· Makes technical and conforming changes.

Amendments

Committee on Appropriations B

• Includes charter schools average daily membership count into JTEDs, but caps the joint membership not exceeding 1.5.
• Apportions pupil enrollment according to the percentage of time the student is enrolled or in attendance at either the charter school or JTED.
• Eliminates the class time requirements. 
• Requires JTEDs implement an examination, accepted by that vocation or industry, illustrating the student’s skill level which the student must pass.
• Precludes employees of a JTED or his/her spouse from holding a membership on a governing board of his/her district or any other district, except that a member may be a candidate for any other governing board if the member is serving in the last year of his/her membership.
• Removes JTEDs from current statutory provisions regarding open enrollment transportation policies.
• Removes the expansion of the prohibition of JTEDs including K-8 pupils in their average daily membership to prohibit the inclusion of pupils in grade 9.
• Precludes ninth grade students as part of the average daily attendance or membership count if they are enrolled in a career exploration course or vocational education course offered by the JTED.
• Allows JTED’s to assess taxes, greater than $.05 per $100 of assessed value, if it is for the purposes of excess utilities, levies for adjacent ways, and bonding expenditures.
• Stipulates that transportation services along with the amount JTEDs will contribute and the amount of support required by the school district or the community college will be included in the written contract between JTEDs, schools districts, other JTEDs, charter schools, or community college.
• Allows the JTED to appeal decisions made by the Career and Technical Education division of ADE concerning course offerings to the State Board of Vocational Education.
• Establishes the average daily membership of a pupil enrolled in a course that meets at least 150 minutes per class at a centralized campus owned by a JTED prior to December 31, 1995 must be equal to .75.
• Requires JTEDs governing boards adopt policies maximizing safety, which prescribe circumstances when pupils 22 years of age and pupils 22 and younger are allowed in the same classes. Requires security personnel on campus.
• Requires JTEDs to begin the contract implementation by July 1, 2006 and conclude by June 30, 2007.
• Ensures that courses are automatically approved if not approved within ninety days after submission to the ADE.
• Adds a general retroactive date of July 21, 2005 and a specific retroactive relating to contract implementation to June 26, 2006.
• Allows JTEDs to assess taxes greater than $.05 per $100 of assessed value if it is for the purposes of obtaining uncollected taxes from the previous year.
• Makes technical and conforming changes.

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Forty-seventh Legislature     3

Second Regular Session                    February 21, 2006

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