HB2317 - 481R

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

Section 1. Section 5-222, Arizona Revised Statutes, is amended to read:

START_STATUTE5-222. Application of this chapter; definition

This chapter does not apply to any amateur boxing contest conducted by or participated in by the following institutions or organizations:

1. Any school, community college, college or university or an association or organization composed exclusively of schools, community colleges, colleges or universities when each contestant is a student enrolled in a school, community college, college or university. As used in this section, "school, community college, college or university" means every school, community college, college or university and every other school, community college, college or university determined by the state board of education, community college districts as defined in section 15‑1401 the state board of directors for community colleges or the Arizona board of regents to be maintained primarily for the giving of general academic education.

2. A government unit or agency of the United States or this state and its subdivisions.

3. A nonprofit interstate association or intrastate association in this state which has standards and regulations for the physical safety of the participants at least equal to the requirements of this chapter, including such bona fide amateur associations or organizations.

4. A fraternal benefit society as defined in section 20‑861.

5. Any bona fide private school whose primary purpose is instruction in the martial arts, provided that the contests held in conjunction with such instruction are amateur. END_STATUTE

Sec. 2. Section 11-600, Arizona Revised Statutes, is amended to read:

START_STATUTE11-600. Burial of indigent deceased; disposal of property

A. When an examination has been completed by the county medical examiner or the person performing the duties of a county medical examiner and no other person takes charge of the body of the deceased, the medical examiner shall cause the body to be delivered to the funeral establishment, licensed pursuant to title 32, chapter 12, article 4, closest geographically to the place where the body is pronounced dead, for preservation, disinfection and final disposition. The medical examiner or person performing the duties of a county medical examiner may establish geographical areas within the county and a rotation system whereby the bodies are delivered equally in sequence to all licensed funeral establishments in each geographical area. All licensed funeral establishments in any incorporated city or town shall be in the same geographical area. Area boundaries in unincorporated areas shall be drawn so as to approximate equal distances between incorporated cities or towns in which a licensed funeral establishment or establishments exist. Upon request of any licensed funeral establishment, in writing, they shall be removed from participation in the receipt of medical examiner cases until they rescind their request. If there is not sufficient property in the estate of the deceased to pay the necessary expenses of the burial, the expenses shall be a legal charge against the county. Upon determination of indigency the funeral establishment shall perform the normal county indigent burial, in the manner and for the fee then being paid by the county, or release the body, upon county request, without fee, to the funeral establishment designated by the county for other indigent burials.

B. Notwithstanding subsection A of this section, the county medical examiner may cause the body to be delivered to a community college under the jurisdiction of a community college district as defined in section 15‑1401 the state board of directors for community colleges, if the community college has an accredited mortuary science program. On acceptance of the body and with proper authorization, the community college mortuary science program shall preserve and disinfect the body, prepare it for final disposition and deliver the body to a licensed funeral establishment pursuant to subsection A of this section for final disposition. For the purposes of this subsection, proper authorization may be provided by the next of kin pursuant to section 36‑831, subsection A or the public fiduciary of the county.

C. Within thirty days after the examination, the medical examiner or person performing the duties of the county medical examiner shall deliver to the public fiduciary of the county or the legal representative of the deceased any money or property found upon the body. END_STATUTE

Sec. 3. Section 11-704, Arizona Revised Statutes, is amended to read:

START_STATUTE11-704. County sports authority fund

A. The authority treasurer shall maintain a county sports authority fund consisting of all monies received by the authority, including:

1. Payments received from leasing, subleasing or renting facilities.

2. Revenues received by the authority from admissions and concessions and other proceeds from events held at facilities leased by the authority.

3. Monies received from issuing and selling bonds under article 2 of this chapter.

4. Interest and other income received from investing monies in the fund.

5. Gifts, grants and donations received for that purpose from any private source.

B. Monies in the fund may be used only for the following purposes:

1. Ordinary and necessary administration and operation expenses of the authority, including:

(a) Reasonable salaries and employee related expenses of employees of the authority.

(b) Reasonable reimbursement of expenses of members of the board of directors.

2. Making all payments required under any lease or sublease of facilities by the authority.

3. Repaying and redeeming bonds issued by the authority, including interest and redemption charges.

4. Academic scholarships, established by the board of directors at the end of the fiscal year, to any college or university under the jurisdiction of the Arizona community college board state board of directors for community colleges or the Arizona board of regents. These scholarships shall be funded from unexpended and unencumbered monies remaining in the fund at the end of the fiscal year which are not otherwise required as reserves.

C. The treasurer of the authority may invest any unexpended monies in the fund as provided in title 35, chapter 2, including in the local government investment pool, if authorized by the state treasurer. Interest and other income from investments shall be credited to the fund. The treasurer of the authority shall invest the monies so as to mature at the times when the fund assets will be required for the purposes of this article. If the liquid assets in the fund become insufficient to meet the authority's obligations, the board of directors shall direct the treasurer of the authority to liquidate sufficient securities to meet all of the current obligations and immediately notify the board of supervisors, the attorney general and the auditor general of the insufficiency, and the attorney general and auditor general shall investigate and audit the circumstances surrounding the depletion of the fund and report their findings to the board of supervisors.

D. The board of directors shall cause an annual audit to be conducted of the fund by an independent certified public accountant within thirty days after the end of the fiscal year. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as he deems necessary, but if he takes no official action within thirty days after the audit is filed, the audit is deemed sufficient. The board of directors shall pay all fees and costs of the certified public accountant and auditor general under this subsection from the fund. END_STATUTE

Sec. 4. Section 13-3990, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3990. Notice of conviction of teachers

On the conviction of a person of an offense in this title or of any felony, if the person is certified to teach by the state board of education or the state board of directors for community colleges, or is teaching in a community college district or charter school, a copy of the judgment and sentence, and of the opinion of the court or magistrate, if any opinion is filed, shall be sent by the clerk of the court, or by the magistrate, to the state certifying board of education, to the community college district or to the charter school. END_STATUTE

Sec. 5. Section 15-701.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-701.01. High school; graduation; requirements; community college or university courses; transfer from private schools; academic credit

A. The state board of education shall:

1. Prescribe a minimum course of study, as defined in section 15‑101 and incorporating the academic standards adopted by the state board of education, for the graduation of pupils from high school.

2. Prescribe competency requirements for the graduation of pupils from high school incorporating the academic standards in at least the areas of reading, writing, mathematics, science and social studies.

3. Develop and adopt competency tests pursuant to section 15‑741 for the graduation of pupils from high school in at least the areas of reading, writing and mathematics and shall establish passing scores for each such test. A pupil not successfully passing the required competency test shall graduate from high school with a recognized diploma if the pupil meets the alternative graduation requirements established by section 15‑701.02. A pupil shall not be required to pass the competency test required in this paragraph to graduate from high school if the pupil transfers into the district from out‑of‑state and has successfully passed a statewide assessment test on state adopted standards that are substantially equivalent to the state board adopted academic standards.

B. If the state board of education adopts a competency test as a graduation requirement for a child with a disability as defined in section 15‑761 or a child who receives special education pursuant to section 15‑763, pupils with individualized education programs shall not be required to achieve passing scores on competency tests in order to graduate from high school unless the pupil is learning at a level appropriate for the pupil's grade level in a specific academic area and unless passing scores on a competency test is are specifically required in a specific academic area by the pupil's individualized education program as mutually agreed on by the pupil's parents and the pupil's individualized education program team or the pupil, if the pupil is at least eighteen years of age. These competency tests shall be administered to pupils in a manner prescribed in the pupil's individualized education program and school districts and charter schools shall make specific and appropriate accommodations for pupils with individualized education programs. Pupils with section 504 plans as defined in section 15‑731 shall not be required to achieve passing scores on competency tests in order to graduate from high school unless the pupil is learning at a level appropriate for the pupil's grade level in a specific academic area and unless passing scores on a competency test is are specifically required in a specific academic area by the pupil's section 504 plan that is developed in consultation with the pupil's parents. These competency tests shall be administered to pupils in a manner prescribed in the pupil's section 504 plan and school districts and charter schools shall make specific and appropriate accommodations for pupils with a section 504 plan. A pupil with an individualized education program or a section 504 plan who graduates from high school but who is not required to achieve a passing score on a competency test in order to graduate from high school shall receive the standard diploma issued by the school district or charter school.

B. C. The governing board of a school district shall:

1. Prescribe curricula that include the academic standards in the required subject areas pursuant to subsection A, paragraph 1 of this section.

2. Prescribe criteria for the graduation of pupils from the high schools in the school district. These criteria shall include accomplishment of the academic standards in at least reading, writing, mathematics, science and social studies, as determined by district assessment. Other criteria may include additional measures of academic achievement and attendance.

C. D. The governing board may prescribe the course of study and competency requirements for the graduation of pupils from high school which are in addition to or higher than the course of study and competency requirements which the state board prescribes.

D. E. The governing board may prescribe competency requirements for the passage of pupils in courses which are required for graduation from high school.

E. F. A teacher shall determine whether to pass or fail a pupil in a course in high school as provided in section 15‑521, paragraph 3 on the basis of the competency requirements, if any have been prescribed. The governing board, if it reviews the decision of a teacher to pass or fail a pupil in a course in high school as provided in section 15‑342, paragraph 11, shall base its decision on the competency requirements, if any have been prescribed.

F. G. Graduation requirements established by the governing board may be met by a pupil who passes courses in the required or elective subjects at a community college or university, if the course is at a higher level than the course taught in the high school attended by the pupil or, if the course is not taught in the high school, the level of the course is equal to or higher than the level of a high school course. The governing board shall determine if the subject matter of the community college or university course is appropriate to the specific requirement the pupil intends it to fulfill and if the level of the community college or university course is less than, equal to or higher than a high school course, and the governing board shall award one‑half of a carnegie unit for each three semester hours of credit the pupil earns in an appropriate community college or university course. If a pupil is not satisfied with the decision of the governing board regarding the amount of credit granted or the subjects for which credit is granted, the pupil may request that the state board of education review the decision of the governing board, and the state board shall make the final determination of the amount of credit to be given the pupil and for which subjects. The governing board shall not limit the number of credits that is required for high school graduation and that may be met by taking community college or university courses. For the purposes of this subsection:

1. "Community college" means an educational institution that is operated by a community college district as defined in section 15‑1401 under the JURISDICTION of the state board of directors for community colleges or a postsecondary educational institution under the jurisdiction of an Indian tribe recognized by the United States department of the interior.

2. "University" means a university under the jurisdiction of the Arizona board of regents.

G. H. A pupil who transfers from a private school shall be provided with a list that indicates those credits that have been accepted and denied by the school district. A pupil may request to take an examination in each particular course in which credit has been denied. The school district shall accept the credit for each particular course in which the pupil takes an examination and receives a passing score on a test designed and evaluated by a teacher in the school district who teaches the subject matter on which the examination is based. In addition to the above requirements, the governing board of a school district may prescribe requirements for the acceptance of the credits of pupils who transfer from a private school.

H. I. The state board of education shall adopt rules to allow high school pupils who can demonstrate competency in a particular academic course or subject to obtain academic credit for the course or subject without enrolling in the course or subject.END_STATUTE

Sec. 6. Section 15-702, Arizona Revised Statutes, is amended to read:

START_STATUTE15-702. High school equivalency diploma; fees; rules

A. Any person who is sixteen years of age or older and who passes a general educational development test shall be awarded an Arizona high school equivalency diploma by the state board of education and the state superintendent of public instruction. The state board of education may establish eligibility requirements for persons wishing to take a general educational development test, except that the minimum age required to take the test may not be older than sixteen nor shall the board require the completion of any high school credits.

B. A person who meets the minimum course of study and competency requirements prescribed by the state board of education for graduation from high school through a combination of high school credits and community college and university credits, which are converted to high school credits in the same manner as provided in section 15‑701.01, subsection F G by the governing board or the state board of education, shall be awarded an Arizona high school equivalency diploma.

C. The state board of education may establish and collect fees for the issuance and reissuance of the following:

1. A general equivalency diploma.

2. A general equivalency transcript.

D. The state board of education shall develop adopt rules for fee waivers for the general equivalency diploma and general equivalency transcripts.END_STATUTE

Sec. 7. Section 15-784, Arizona Revised Statutes, is amended to read:

START_STATUTE15-784. Vocational education; acceptance of congressional acts; appropriation; distribution of federal monies

A. The state assents to the provisions and accepts the benefits of the vocational education act of 1917, as amended, and the Carl D. Perkins vocational education act of 1984, as amended by the Carl D. Perkins vocational and applied technological education act amendments of 1990, as amended by the Carl D. Perkins vocational and applied technology act of 1998.

B. The state board of education is the state board of vocational education for the purposes of the acts. The state treasurer is designated custodian for vocational education for the purposes of the acts. The state treasurer shall receive and provide for the custody and disbursement of all monies paid to the state for the purposes of vocational education.

C. There is appropriated from the general fund of the state sufficient monies to meet the requirements of the acts of Congress.

D. The state board of education may distribute the monies it receives as provided in subsection A of this section to any eligible recipient of the monies under the federal law.

E. The state board of education shall distribute to the community college districts in this state state board of directors for community colleges at least fifteen per cent of the monies received as provided in subsection A of this section. Provisional community college districts are not eligible to receive monies pursuant to this section. The state board of directors for community colleges has sole responsibility for the administration and supervision of the community college vocational and technological programs that the districts offer for purposes of the acts and use of the monies received as provided in this section. The state board of directors for community colleges may enter into intergovernmental agreements as provided in section 11-952 for the purposes of this subsection. END_STATUTE

Sec. 8. Section 15-789, Arizona Revised Statutes, is amended to read:

START_STATUTE15-789. Contracting and cooperative arrangements for career and technical education and vocational education; advisory committee

A. The governing board of a school district may contract with any public body or with any private person for the purpose of providing career and technical education and vocational education. For the purposes of this subsection, school districts are exempt from section 15‑213.

B. School districts or community college districts may independently or jointly make application for career and technical education and vocational education monies.

C. School districts and community college districts may provide for joint cooperation among themselves and with each other and with any educational institution eligible to receive career and technical education and vocational education monies as provided in section 15‑784 for the purposes of providing career and technical education and vocational education and for the use of each other's facilities and personnel.

D. School districts, among themselves or with community college districts, may jointly purchase, sell, lease or lease‑purchase land, buildings or other real or personal property for the purposes of providing career and technical education and vocational education, including establishing a jointly owned and operated vocational and technical center, if:

1. The districts enter into an intergovernmental agreement or other written contract pursuant to section 11‑952.

2. The state board of education and, if a community college district is a party to the agreement, the governing board of the community college district the state board of directors for community colleges approve the intergovernmental agreement or other written contract.

E. If one or more school districts, among themselves or with a community college district, enter into an intergovernmental agreement or other written contract to establish a jointly owned and operated vocational and technical center, the governing boards of the districts shall establish a joint advisory committee for the vocational and technical center consisting of:

1. At least one member of each school district governing board or a designated district staff representative appointed by the respective school district governing board.

2. If a community college is a party to the agreement, members of the community college district board or designated district staff representatives appointed by the community college district board equal in number to the total number of persons appointed pursuant to paragraph 1 of this subsection.

3. Members engaged in commerce or industry in this state equal in number to the total number of persons appointed pursuant to paragraph 1 of this subsection, jointly appointed by the district governing boards.

F. A school district and a community college district may jointly accept gifts or grants of monies, land or other real or personal property for the purpose of providing career and technical education and vocational education and may administer or dispose of the property in accordance with the purpose of the gift or grant. END_STATUTE

Sec. 9. 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 are not in session on the forty‑fifth day of the fall or spring semester, which commence at various times during the fiscal year and which 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 immediately follows the current year.

4. "Community college" means an educational institution that is operated by a district board under the jurisdiction of the state 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 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 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.

13. "State board" means the state board of directors for community colleges. END_STATUTE

Sec. 10. Section 15-1403, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1403. Procedure to form a district

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 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 state board, 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 conduct a survey of the proposed district to 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 state board approves the petition, 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. END_STATUTE

Sec. 11. Section 15-1404, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1404. Election to determine formation of district; notice; canvass

A. Upon approval of the proposed district, the county board of supervisors state board shall return the petition with its approval to the county school superintendent, or if the proposed district consists of more than one county, to the county school superintendent of the county with the larger population, as determined by the most recent federal census. The county school superintendent shall transmit notification of approval for formation of the proposed district to the board of supervisors, which shall submit the question to the qualified electors of the county at the next general election or at a special election called for that purpose. If a special election is called, notice thereof shall be given by publication for at least two weeks in a newspaper of general circulation published in the county or counties of the proposed district. The election shall be conducted and returns shall be made in the manner provided by law for special elections.

B. A special election conducted pursuant to this section shall be held on a date prescribed by section 16‑204. END_STATUTE

Sec. 12. Section 15-1405, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1405. Presentation of plan to legislature

The county board of supervisors state board shall present a plan to the legislature for formation and establishment of a community college district no later than January 15 subsequent to the election held as provided in section 15‑1404. END_STATUTE

Sec. 13. Section 15-1409, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1409. Provisional community college districts; formation; provisional community college district governing board; powers and duties; program termination

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 in accordance WITH rules adopted by the state board.

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 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, 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, 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 may enter, by majority vote, 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. The provisional community college district program established by this section ends on July 1, 2009 pursuant to section 41‑3102.END_STATUTE

Sec. 14. Repeal

Section 15-1427, Arizona Revised Statutes, is repealed.

Sec. 15. Title 15, chapter 12, article 2, Arizona Revised Statutes, is amended by adding sections 15-1421, 15-1422, 15-1423, 15-1424, 15-1425 and 15-1426, a new section 15-1427 and sections 15-1428 and 15-1429, to read:

START_STATUTE15-1421. Members; appointment; terms; vacancy; oath

A. The state board of directors for community colleges is established consisting of fifteen members, one from each county, who are appointed by the governor pursuant to section 38‑211, and a representative of the Arizona board of regents and the superintendent of public instruction or the superintendent's designee. The designee shall have the same powers on the board, including voting powers, as the superintendent of public instruction. The designee shall serve at the discretion of the superintendent of public instruction.

B. The term of each member appointed by the governor shall be seven years, to begin and end on the third Monday in January.

C. Notwithstanding section 38‑291, the office of a member of the state board of directors for community colleges is deemed vacant if the person holding the office ceases to be a resident of the county for which the person was appointed.

D. Each appointive member of the state board, before entering on the duties of office, shall take the oath of office. END_STATUTE

START_STATUTE15-1422. Officers; organization; meetings; immunity

A. The state board shall appoint an executive director who is not a member of the state board and shall select from its membership a chairperson, a treasurer and any other officers it deems necessary. The state board shall hold at least eight meetings annually and may hold such special meetings, at the call of the chairperson, as may be deemed necessary or advisable.

B. A majority of the membership of the state board constitutes a quorum for the transaction of business at any meeting regularly called, but a number less than a quorum may adjourn from time to time.

C. Members of the state board are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings. END_STATUTE

START_STATUTE15-1423. Compensation of executive director and board members

A. The executive director of the state board shall receive compensation as determined pursuant to section 38-611.

B. All members of the state board except the superintendent of public instruction or the superintendent's designee shall receive compensation as determined pursuant to section 38-611 for each day of attendance at board meetings. END_STATUTE

START_STATUTE15-1424. General powers of state board as body corporate; definitions

A. The state board is a body corporate with perpetual succession and shall have the name "state board of directors for community colleges of Arizona".

B. The state board may:

1. Adopt a corporate seal.

2. Contract with any person.

3. Sue and be sued.

4. Adopt rules concerning and prescribe limitations on contracting by the community college district governing boards.

5. Conduct pilot projects for implementing cooperative agreements between community college districts and high school districts and other vocational and technological education and employment training providers.

6. Adopt rules regarding the construction, remodeling and repair of buildings that permit district boards to accomplish minor construction, remodeling and repair projects without prior approval of the state board.

7. On the request of a district board, waive tuitions and fees and graduate the tuition and fee waivers for a student in any of the institutions under the district board's jurisdiction if the student is one of the following:

(a) An employee or the spouse or dependent child of an employee of the community college district.

(b) A nonresident student enrolled in the community college district, if the state board and district board determine the waiver is in the best interests of this state and the student.

C. The state board shall determine the location within the district of a community college and purchase, receive, hold, make and take leases of and sell real property for the benefit of this state and for the use of the community colleges under its jurisdiction. Notwithstanding this subsection, the state board may delegate to community college district governing boards the power to lease or lease‑purchase real property, including buildings and improvements to the property, as lessor or as lessee.

D. The state board may enter into lease or lease‑purchase agreements for real property, including buildings and improvements to the property.

E. Lease or lease‑purchase agreements authorized by subsection C or D of this section shall not create an obligation of payment by the district under the terms of the lease or lease‑purchase agreement for periods longer than fifteen years.

F. The amount of outstanding indebtedness due to acquisition of real property by lease‑purchase per community college district shall not exceed two million five hundred thousand dollars in any one year and fifteen million dollars in the aggregate. At the request of a district board, the state board may pledge tuitions, fees, rentals and other charges to any payments due under lease‑purchase agreements.

G. Notwithstanding subsection F of this section, periodic payments and any option payments for acquisition of real property by lease‑purchase are restricted to payment from capital outlay funds.

H. Districts that acquire real property by lease‑purchase are not entitled to receive funds pursuant to section 15‑1463 pertaining to the specific real property acquired by lease‑purchase.

I. Notwithstanding any other provision of law, payments on lease or lease‑purchase agreements entered into pursuant to subsection C or D of this section are an obligation of the district within the meaning of the constitutional limit against indebtedness set out in article IX, section 8, Constitution of Arizona.

J. If the state board or, under authority of the state board, a district acquires real or personal property, whether by purchase, exchange, condemnation, gift or otherwise, the state board or district shall pay to the county treasurer any taxes on the property that were unpaid as of the date of acquisition, including penalties and interest. The lien for unpaid delinquent taxes, penalties and interest on property acquired by the state board or a district:

1. Is not abated, extinguished, discharged or merged in the title to the property.

2. Is enforceable in the same manner as other delinquent tax liens.

K. The state board may accept grants or donations of monies from the United States, or from any of its agencies, departments or officers, or from any persons, corporations, foundations or associations. The state board shall deposit, pursuant to sections 35‑146 and 35‑147, the monies in a specific fund or account, and the state board shall administer the monies in accordance with the purpose of the grant or donation with specific rules or restrictions as described or stipulated in the grant or donation. If personal property is granted or donated to or for the benefit of a community college district, the state board shall immediately transfer possession and ownership of the property to the designated district.

L. The state board may establish a program for the exchange of students between the community colleges under the state board's jurisdiction and colleges and universities located in Sonora, Mexico. Notwithstanding section 15‑1425, paragraph 4, the program may provide for in‑state tuition for up to fifty Sonora students at the community colleges under the state board's jurisdiction in exchange for similar tuition provisions for up to fifty Arizona students enrolled or seeking enrollment in Sonora colleges and universities. The state board and the community colleges may work in conjunction with the Arizona‑Mexico commission in the governor's office to coordinate recruitment and admissions activities.

M. For the purposes of this section:

1. "Minor construction, remodeling and repair projects" means those projects that cost no more than the amount for the previous fiscal year adjusted by the growth rate prescribed by law, subject to appropriation.

2. "Person" includes an association, a company, a corporation, a firm, a governmental body, an organization, a partnership or a society, as well as a natural person. END_STATUTE

START_STATUTE15-1425. General administrative duties of the state board

The state board shall:

1. Enact ordinances for the government of the institutions under its jurisdiction.

2. Set standards for the establishment, development, administration, operation and accreditation of community colleges.

3. Establish qualifications of the instructional staff and establish standards of vocational and technological competence required to instruct in occupational as well as academic subjects.

4. Fix tuitions and fees the community college districts shall charge and graduate the tuitions and fees between institutions and between residents, nonresidents and students from foreign countries.

5. Establish curricula and designate courses at the several institutions that in its judgment will best serve the interests of this state.

6. Prescribe qualifications for admission to community colleges for veterans who were honorably discharged, who served on active duty in the armed forces for a minimum of one year and who were previously enrolled at a community college or university in this state. For the purpose of determining the qualifications, the state board may not consider prior failing grades received by the veteran at a community college or university in this state.

7. In conjunction with the state board for vocational and technological education, review and adopt, within the scope of the statutory definitions of vocational and technological education, program and staff standards with modifications as necessary for courses taught in community colleges. The state board of directors for community colleges shall base the standards on vocational and technological competence.

8. In conjunction with the state board for vocational and technological education, prepare, publish and distribute an annual state plan and a comprehensive five year state plan.

9. Prescribe the manner in which the self‑evaluation of vocational and technological education programs as provided in section 15‑1447 is conducted.

10. Prescribe guidelines providing for the transferability between community college district vocational and technological education programs and, in conjunction with the state board for vocational and technological education, prescribe guidelines for the interrelationship of secondary programs and postsecondary programs.

11. In conjunction with the state board for vocational and technological education, develop a process to determine program funding priorities for state aid purposes. The state board of directors for community colleges shall submit state aid recommendations to the legislature. The recommendations shall be based on the process and on existing cost studies of vocational and technological education in this state.

12. Before January 10 of each year, submit to the economic estimates commission the estimated number of full‑time equivalent students for each community college district as prescribed in section 15‑1466.01.

13. Determine academic classes that qualify as open entry, open exit classes as defined in section 15‑1401 and prescribe rules for the operation of open entry, open exit classes.

14. Require the publisher of each literary and nonliterary textbook used in the community colleges of this state to furnish to the state board computer software in a standardized format when software becomes available for nonliterary textbooks, from which braille versions of the textbook may be produced. END_STATUTE

START_STATUTE15-1426. Employment of legal counsel to procure federal loans

The state board may employ legal assistance in procuring loans for community colleges from the United States government. Fees or compensation paid for such legal assistance shall not be a claim on the state general fund, but shall be paid from monies appropriated to the state community college system. END_STATUTE

START_STATUTE15-1427. Annual report

On or before November 1 of each year, the state board shall make a report for the preceding fiscal year to the governor. The report shall set forth the state of progress of the community colleges operated under this chapter, the courses of study included in the curricula, the number of professors and other instructional staff members employed, the number of students registered and attending classes, the amount of receipts and expenditures and such other information as the state board deems proper.END_STATUTE

START_STATUTE15-1428. Uniform system of accounting for community college districts; duties of state board and auditor general

A. The auditor general shall determine the accounting systems, accounting methods and accounting procedures for use by community college districts.

B. The auditor general in conjunction with the state board shall prescribe a uniform system of accounting as provided in section 41‑1279.21 for use by all community college districts. END_STATUTE

START_STATUTE15-1429. Services outside district boundaries; rules

Except as provided in section 15‑1470, a district may offer credit and noncredit courses and services outside of the district. District courses and services may be offered through the use of provisional community college districts. The state board shall adopt rules concerning the offering of credit courses outside a district, including distance learning courses. A community college district is not entitled to state aid payments for students who are provided courses and services outside of this state. END_STATUTE

Sec. 16. Section 15-1444, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1444. General powers and duties of district governing boards

A. Except as otherwise provided, the district board shall:

1. Maintain each community college for a period of not less than eight months in each year and, if the funds of the district are sufficient, maintain each community college for a longer period.

2. Adopt policies in a public forum to offer programs that meet the educational needs of the population served by the community college.

3. 2. Enforce the courses of study prescribed by the district state board.

4. 3. Visit each community college under its jurisdiction and examine carefully into its management, conditions and needs.

5. 4. Exclude from each community college all books, publications or papers of a sectarian, partisan or denominational character intended for use as textbooks.

6. 5. Appoint and employ a chancellor or chancellors, vice‑chancellors, a president or presidents, vice‑presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees it deems necessary. Notwithstanding subsection B, paragraph 3 of this section and section 15-1424, subsection B, paragraph 4, the district board may enter into employment contracts with chancellors, vice‑chancellors and presidents for a duration of more than one year but not more than five years.

7. 6. Determine the salaries of persons it appoints and employs.

8. 7. Remove any officer or employee if in its judgment the interests of education in this state require the removal.

9. 8. Award degrees, certificates and diplomas upon the completion of courses and curriculum as it deems appropriate.

10. 9. Appoint or employ, if it deems necessary, police officers who shall have the authority and power of peace officers. The police officers who have received a certificate from the Arizona peace officer standards and training board are eligible for membership in and benefits under either title 38, chapter 5, article 2 or the public safety personnel retirement system under title 38, chapter 5, article 4.

11. 10. Determine the location within the district of a community college and purchase, Receive, hold, make and take leases of, and sell and convey real or personal property for the benefit of the community colleges under its jurisdiction.

12. 11. Obtain insurance or be self‑insured, or a combination of insurance and self‑insurance, against loss, to the extent it is determined necessary on community college buildings of the district, whether financed in whole or in part by state monies. The local district shall have an insurable interest in the buildings.

12. Identify students simultaneously enrolled in a course for both high school and college credit by using the same student level data element required by section 15-1042, subsection A. The auditor general shall have access to this information when certifying the full-time student enrollment pursuant to section 15-1466.01, paragraph 4.

13. Acquire united states flags that are manufactured in the United States and that are at least two feet by three feet and hardware to appropriately display the United states flags, acquire a legible copy of the constitution of the United States and the bill of rights that is manufactured in the United States, display the flags in each classroom in accordance with title 4 of the United States code and display a legible copy of the constitution of the United States and the bill of rights adjacent to the flag.

B. The district board may:

1. Administer trusts declared or created for the district and receive by gift or devise and hold in trust or otherwise property wheresoever located, and if not otherwise provided, dispose of the property for the benefit of the district, if, with respect to real property, the state board has consented to the disposition of the real property.

2. Lease real property, as lessor or as lessee, if authorized by the state board as provided in section 15-1424. If a district is the lessee, the lease may contain an option to purchase the property. The district board may adopt policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to lease property under this paragraph. A district board shall not delegate the authority to execute a lease that exceeds one hundred thousand dollars per year. Any delegation by the district board pursuant to this paragraph may be rescinded in whole or in part at any time by the district board.

3. Sue and be sued.

4. 3. Contract, subject to the rules and limitations prescribed by the state board as provided in section 15-1424. The district board may adopt such policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to contract under this paragraph. Any delegation of authority under this paragraph may be rescinded by the district board at any time in whole or in part.

5. 4. Construct, remodel and repair buildings subject to the rules prescribed by the state board as provided in section 15-1424.

6. In conjunction with other districts, establish policies for procurement of goods and services.

7. 5. Provide a plan or plans for employee benefits, which may include optional retirement programs pursuant to section 15‑1451, subsection A, which allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.

8. Accept grants or donations of monies from the United States, or from any of its agencies, departments or officers, or from persons, corporations, foundations or associations. A district board shall deposit the monies into a specific fund or account and a district board shall administer the monies in accordance with the purpose of the grant or donation with specific policies or restrictions as described or stipulated in the grant or donation. In the case of personal property granted or donated to or for the benefit of a community college district, a district board shall immediately transfer possession and ownership of the property to the designated district.

9. 6. Enter into intergovernmental agreements or contracts pursuant to section 11‑952.01 for participation in programs offered by public agency pools or separately contract with a trustee or board of trustees that provides a common self‑insurance program with pooled funds and risks pursuant to section 15‑382, subsection B, paragraph 2. The district board is not required to engage in competitive procurement in order to make the decision to participate in these programs.

C. If a district acquires real or personal property, whether by purchase, exchange, condemnation, gift or otherwise, the district shall pay to the county treasurer any taxes on the property that were unpaid as of the date of acquisition, including penalties and interest. The lien for unpaid delinquent taxes, penalties and interest on property acquired by the district:

1. Is not abated, extinguished, discharged or merged in the title to the property.

2. Is enforceable in the same manner as other delinquent tax liens.

D. C. From and after December 31, 1988, in a district whose boundaries encompass a vehicle emissions control area as defined in section 49‑541, the district board shall require all out-of-county and out-of-state students to sign an affidavit at the time of course registration that the student's vehicle meets the requirements of section 49‑542. From and after December 31, 1988, the district board on property under its jurisdiction within a vehicle emissions control area shall prohibit the parking of those vehicles which fail to comply with section 49‑542.

E. D. A community college district and a joint technological education district governing board may enter into agreements for the provision of administrative, operational and educational services and facilities.

F. Each district may establish a program for the exchange of students between the community colleges under its jurisdiction and colleges and universities located in Sonora, Mexico. The program may provide for in‑state tuition for Sonora students at the community colleges under its jurisdiction in exchange for similar tuition provisions for Arizona students enrolled or seeking enrollment in Sonora colleges and universities. The community colleges may work in conjunction with the Arizona‑Mexico commission in the governor's office to coordinate recruitment and admissions activities to provide for in‑state tuition for up to fifty Sonora students at the community colleges under its jurisdiction in exchange for similar tuition provisions for up to fifty total Arizona students enrolled or seeking enrollment in Sonora colleges and universities.

G. Each district shall facilitate transfer articulation coordination pursuant to section 15‑1824. END_STATUTE

Sec. 17. Repeal

Section 15-1445, Arizona Revised Statutes, is repealed.

Sec. 18. Title 15, chapter 12, article 3, Arizona Revised Statutes, is amended by adding a new section 15-1445, to read:

START_STATUTE15-1445. Annual report by president or chancellor

The president or chancellor of every community college district, at the close of each fiscal year, before and as a prerequisite to receiving the president's or chancellor's last month's salary, shall make and subscribe under oath a complete report of the district and each college or campus in the district for the entire school year and shall deliver the report to the state board and a copy of the report to the district board. The report shall show the total number of full-time equivalent students enrolled during the year, the actual total number of students, the number of teachers regularly employed, the total number of students not residing in the district and such other information as may be required by the state board. END_STATUTE

Sec. 19. Section 15-1446, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1446. Lease‑purchase agreements

A. A district board may enter into lease or lease‑purchase agreements for real property, including buildings and improvements to the property.

B. Lease or lease‑purchase agreements authorized by subsection A of this section or section 15‑1444, subsection A, paragraph 11 10 shall not create an obligation of payment by the district under the terms of the lease or lease‑purchase agreement for periods longer than fifteen years.

C. Notwithstanding subsection B of this section, a district board may enter into lease agreements for real property, including buildings and improvements to the property, that obligate the district for more than fifteen years if such agreements are with an Indian tribe, involve land owned or controlled by the federal government or by a joint powers airport authority organized under title 28, chapter 25, article 8 or involve real property that is owned by a nongovernmental nonprofit corporation and that is offered for lease in an amount not to exceed one thousand dollars per year to a community college district for purposes of expanding health care education programs.

D. The amount of outstanding indebtedness due to acquisition of real property by lease‑purchase for each district shall not exceed two million five hundred thousand dollars in any one year and fifteen million dollars in the aggregate. A district board may pledge tuitions, fees, rentals and other charges to any payments due under lease‑purchase agreements.

E. Notwithstanding subsection D of this section, periodic payments and any option payments for acquisition of real property by lease‑purchase are restricted to payment from capital outlay funds.

F. Districts that acquire real property by lease‑purchase are not entitled to receive monies pursuant to section 15‑1463 pertaining to the specific real property acquired by lease‑purchase.

G. Notwithstanding any other law, payments on lease or lease‑purchase agreements entered into pursuant to subsection A of this section or section 15‑1444, subsection A, paragraph 11 10 are obligations of the district within the meaning of the constitutional limit against indebtedness set out in article IX, section 8, Constitution of Arizona. END_STATUTE

Sec. 20. Repeal

Section 15-1447, Arizona Revised Statutes, is repealed.

Sec. 21. Title 15, chapter 12, article 3, Arizona Revised Statutes, is amended by adding a new section 15-1447, to read:

START_STATUTE15-1447. Evaluation of vocational and technical education programs

A district board shall provide for the evaluation of vocational and technical education programs once every five years. The assessment shall be conducted in cooperation with and with assistance from business, industry and labor representatives. The district board may conduct a self-evaluation or use the services of the state board for vocational and technical education. The self-evaluation shall be conducted in the manner prescribed by the state board of directors for community colleges pursuant to section 15-1425, paragraph 9. END_STATUTE

Sec. 22. Section 15-1449, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1449. Control of vehicles and nonpedestrian devices on community college property by district board; sanctions; compliance with emissions inspection; definition

A. The district board may adopt policies, subject to the approval of the state board, for the control of vehicles and nonpedestrian devices on property of the institutions under the district board's jurisdiction with respect to the following only:

1. Maximum speed of vehicles and nonpedestrian devices.

2. Direction of travel.

3. Authorized hours of travel.

4. Required stops in traffic.

5. Place, method and time of parking.

6. Nonparking areas and restricted areas.

7. Prohibition of parking in vehicle emissions control areas as defined in section 49‑541 of those vehicles which fail to comply with section 49‑542.

8. Designation of special parking areas for students, faculty, staff and the general public.

B. The district board may prescribe and collect reasonable fees for specially designated parking areas. The district board shall cause signs and notices to be posted on the property for the regulation of vehicles and nonpedestrian devices.

C. The policies adopted by the district board pursuant to subsection A of this section shall be enforced administratively under procedures approved by the district board for each institution under its jurisdiction. As to students, faculty and staff, these procedures may involve both student and faculty adjudicating bodies if all procedures give the individual notice and an opportunity to be heard concerning the alleged infractions and any sanction to be imposed on the individual. Administrative and disciplinary sanctions may be imposed on students, faculty and staff for a violation of the policies, including a reasonable monetary penalty, impoundment, regular institutional discipline, withdrawal or suspension of campus parking privileges, encumbrances of records or grades, or both, and oral or written reprimand. Habitual or flagrant disregard of policies is a ground for suspension or expulsion from the institution for a student and may be taken into consideration as to faculty and staff in regard to amount of salary and continuation of employment.

D. Members of the general public who park their vehicles in an unauthorized manner on the property of an institution under the jurisdiction of the district board shall be warned concerning their unauthorized parking, and if they continue to or habitually park in an unauthorized manner, the vehicles parked in an unauthorized manner may be impounded by the institution and a reasonable fee may be exacted for the cost of impoundment and storage.

E. Members of the general public who violate a policy adopted by the district board pursuant to subsection A of this section regarding the use of nonpedestrian devices on the property of an institution under the jurisdiction of the district board shall be warned of a violation. A nonpedestrian device may be impounded by the institution, and a reasonable fee may be exacted for the cost of impoundment and storage.

F. Except as provided in section 41‑1092.08, subsection H, a person who has received a final administrative ruling concerning a sanction imposed on the person as a result of a violation of a policy adopted pursuant to subsection A of this section has the right to have that ruling reviewed by the superior court in the county in which the institution involved is situated pursuant to title 12, chapter 7, article 6.

G. An institution that is under the jurisdiction of the district board and that is located in a vehicle emissions control area as defined in section 49‑541 shall prohibit the issuance of annual permits to park on property under its jurisdiction until the applicant submits an affidavit or shows proof that the applicant's vehicle meets the requirements of section 49‑542.

H. In For the purposes of this section, "nonpedestrian devices" includes bicycles, tricycles, unicycles, skateboards, roller skates and equines. END_STATUTE

Sec. 23. Repeal

Section 15-1452, Arizona Revised Statutes, is repealed.

Sec. 24. Section 15-1461, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1461. District budget; annual estimate; computation; notice; hearing; adoption

A. Not later than June 5, each district established pursuant to this chapter, and any other community college established prior to the enactment of this chapter, shall prepare a proposed budget for the budget year on a form which the auditor general prescribes to be transmitted to the state board with a copy to the district board. The proposed budget shall be accompanied by an estimate of the amount of funds needed for the ensuing year as determined by the district based on the proposed budget prepared by it.

B. The district shall establish and set forth in the proposed budget the per capita expenditure per full‑time equivalent student, which shall be the total operational expenses.

C. The district shall establish and set forth in the proposed budget the per capita expenditure per full‑time equivalent student, which shall be the total capital outlay expenses.

D. The number of basic full‑time equivalent students shall be computed by dividing the total community college credit units by fifteen per semester and shall be based on regular day enrollment. The number of additional short‑term full‑time equivalent students shall be computed by dividing the total community college credit units from additional short‑term classes by thirty. The number of skill center full‑time equivalent students shall be computed by dividing the total number of clock hours in approved vocational training programs by six hundred forty.

E. The governing board of each district shall prepare a notice fixing a time not later than June 20 and designating a public place within each district at which a public hearing and special board meeting shall be held. The governing board shall present the proposed budget for consideration of the residents and the taxpayers of the district at such meeting.

F. The governing board of each district shall publish a copy of the proposed budget prior to the meeting and, in addition, a notice of the public hearing and special board meeting not later than fifteen days prior to the meeting. The proposed budget shall contain but need not be limited to the following information:

1. The estimated cost of all operational, capital outlay and debt service expenses.

2. The percentage of increase or decrease in each budget category as compared to each category of the budget for the current year.

3. The total amount of revenues by source that was necessary to meet the district's budget for the current year.

4. The total amount of revenues by source that will be necessary to meet the proposed district budget.

5. The total property tax levy of the district for the current year.

6. The levy for primary property taxes and the levy for secondary property taxes for the current year.

7. The primary property tax rate and secondary property tax rate for the current year.

8. The estimated amount of total property tax levies for the district and the primary property tax and secondary property tax components thereof necessary for the budget year.

9. The maximum amount of primary property tax dollars which the district is permitted to levy pursuant to title 42, chapter 17, article 2 for the budget year.

10. The amount of secondary property tax dollars which the district will levy for the budget year.

11. The amount of monies received from primary property taxation in the previous fiscal year in excess of the maximum allowable amount as calculated pursuant to title 42, chapter 17, article 2.

G. The governing board shall publish the proposed budget and the notice of the public hearing and special board meeting a second time not later than five days prior to the meeting. Publication shall be made in a newspaper of general circulation within the district. The cost of publication shall be a charge against the district. The publisher's affidavit of publication shall be filed by the governing board with the state board within thirty days after publication. If a truth in taxation notice and hearing is required under section 15‑1461.01, the district may combine the notice and hearing under this section with the truth in taxation notice and hearing.

H. If the district fails to publish the proposed budget, notice and statements required by subsection F of this section, the board of supervisors shall levy on the property in the district the lesser of the amount of primary property taxes which were levied for the district in the current year or the amount which would be produced by the primary property tax rate which was levied for the district in the current year.

I. At the time and place fixed in the notice, the members of the governing board shall hold the public hearing and present the proposed budget to the persons attending the hearing. Upon request of any person, the governing board shall explain the budget and any resident or taxpayer of the district may protest the inclusion of any item in the proposed budget.

J. Immediately following the public hearing the chairman shall call to order the special board meeting for the purpose of adopting the budget. The governing board shall adopt the budget making deductions from the budget as it sees fit but making no additions to the budget and shall enter the budget as adopted in its minutes. The governing board shall not adopt the budget if the property tax requirements of the budget, excluding amounts budgeted and levied for secondary property taxes, exceed the amounts authorized pursuant to title 42, chapter 17, article 2. END_STATUTE

Sec. 25. Section 15-1463, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1463. State contribution for capital outlay for initial or additional campus

A. This state, by legislative appropriation, shall pay to the district a sum equal to fifty per cent of the total cost for capital outlay for an initial campus in a newly formed district or in a county entering into an intergovernmental agreement for providing courses pursuant to section 15‑1470, not to exceed one million dollars.

B. If a district board in an existing district determines the need for an additional campus or campuses, it shall submit a request to the joint legislative budget committee for review certify the need to the state board. If the state board approves the increase in the number of campuses, this state, by legislative appropriation, shall pay a sum equal to fifty per cent of the total cost for capital outlay for each approved campus within the district, but not to exceed one million dollars at any one campus, including the purchase, erection, remodeling or completion of buildings and the purchase of equipment and facilities for educational or auxiliary purposes of the community college, excluding the cost of any land granted to the district and dormitories erected for the use of students or faculty members. END_STATUTE

Sec. 26. Section 15-1464, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1464. State aid per capita distribution for capital outlay; capital outlay fund; appropriation

A. In addition to the appropriation prescribed in section 15‑1463, subsection A, this state shall pay to each community college district state aid for capital outlay in the following manner:

1. For fiscal year 1992‑1993 for a community college district which had less than five thousand actual full‑time equivalent students according to the most recent fiscal year actual full‑time equivalent student count, the amount determined by multiplying the number of actual full‑time equivalent students according to the most recent fiscal year actual full‑time equivalent student count by two hundred seven dollars.

2. For fiscal year 1992‑1993 for a community college district which had five thousand or more actual full‑time equivalent students according to the most recent fiscal year actual full‑time equivalent student count, the amount determined by multiplying the number of actual full‑time equivalent students according to the most recent fiscal year actual full‑time equivalent student count by one hundred fifty‑eight dollars.

3. Beginning with fiscal year 1993‑1994 the legislature shall adjust by the growth rate for common and high school districts as provided by law, subject to appropriation, the amount of state aid to community college districts as provided in paragraphs 1 and 2.

B. The basis for computing full‑time equivalent students for the capital outlay per capita distribution shall be on the same basis as the computation prescribed in section 15‑1466.01.

C. In addition to the formula to determine the appropriations prescribed in section 15‑1463, subsection A and subsection A of this section, this state may pay additional amounts for capital outlay to a community college district based on requests from the district.

D. Appropriations for capital outlay made pursuant to subsections A and C of this section and section 15‑1463 shall be made to an account designated as the capital outlay fund. The state board shall include these additional amounts for capital outlay in the budget estimates submission prescribed in section 35-113.

E. At the beginning of each fiscal year, the district state board shall present to the department of administration a claim for the annual amount appropriated by the legislature and assigned to the district for capital outlay purposes. The department of administration shall draw a warrant in payment of the claim and shall transmit the warrant to the state treasurer who shall disburse the funds to the district districts for capital outlay purposes, to be expended as provided by law. If no community college exists, the department shall establish a fund for new future community college districts to be disbursed as needed.

F. Notwithstanding subsection E of this section, a community college district may request the state treasurer to disburse the monies to the local government investment pool for deposit into the district's account as established in section 35‑326.

G. Each district has the option of using up to twenty per cent of its total capital outlay aid appropriation for operating aid purposes or taking this same amount out of the district's total operating state aid appropriation and using it for capital outlay purposes. END_STATUTE

Sec. 27. Section 15-1465, Arizona Revised Statutes, as amended by Laws 2006, chapter 354, section 18, is amended to read:

START_STATUTE15-1465. Election; issuance and sale of bonds for capital outlay; disposition of proceeds; proration of expenditures by counties

A. A district, with the consent of the state board, may conduct an election to determine whether or not bonds shall be issued and sold for the purpose of paying its share of the expenditures incurred for capital outlay. The election shall be originated and conducted, the bonds issued, sold and redeemed and a tax levy imposed for payment of interest on such bonds and redemption of bonds in accordance with the provisions of title 35, chapter 3, article 3 and the limitations imposed on school districts by article IX, section 8, Constitution of Arizona, insofar as those provisions are applicable. The election shall be held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d). Bond counsel fees, financial advisory fees, printing costs and paying agent and registrar fees shall be paid from either the amount authorized by the qualified electors of the community college district or current operating funds. Bond election expenses shall be paid from current operating funds only.

B. The proceeds of all bonds sold as provided in subsection A of this section shall be used only for capital outlay, including the purchase of land, the purchase, erection, remodeling or completion of buildings and the purchase of equipment and facilities for educational or auxiliary purposes of the community college district.

C. Where a district contains more than one county, subsections A and B of this section shall be applicable separately to each of the counties as to its portion of the expenditures to be paid for capital outlay in setting up the physical plant of the district even though the proposed plant is to be established, wholly or partly, in one county of the district.

D. The portion of the expenditures for capital outlay to be prorated by each county of a district shall be determined by the state board in the ratio that the assessed valuation of each county within the district bears to the total assessed valuation of all counties within the district.

E. If a majority of the qualified electors voting at an election held as provided in this chapter disapproves the issuance of bonds for any purpose, the governing board of the community college district shall not authorize the expenditure of funds from any source for such purpose without subsequent approval of a majority of the qualified electors voting at an election held as provided in this chapter, except that a subsequent vote of the district electors shall not be necessary to:

1. Construct buildings and site improvements on existing campuses.

2. Repair and remodel existing facilities and to purchase equipment.

3. Purchase land adjacent to an existing campus. END_STATUTE

Sec. 28. Section 15-1466, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1466. State aid; eligibility; limitations

A. Subject to legislative appropriation, the legislature shall determine and appropriate the amount of state aid each fiscal year to each district possessing the qualifications as prescribed in this chapter.

B. The state shall determine the amount of state aid, as prescribed in subsection F of this section, appropriated to each district for the fiscal year prior to the fiscal year for which the state aid is being calculated.

C. The state shall adjust the amount of state aid appropriated to each district as determined in subsection B of this section by the growth rate referenced by section 15‑901, subsection B, paragraph 2. This amount shall be appropriated to the district except as provided in subsection D of this section.

D. In addition to the state aid appropriated in subsection C of this section, each district qualified under this chapter shall have its state aid adjusted in an amount that reflects the growth in the full‑time equivalent student count of the district calculated as follows:

1. Calculate the growth in the actual, audited full‑time equivalent student count between the second and third most recent fiscal years prior to the fiscal year for which the state aid is being calculated for each district.

2. Calculate the average appropriation per full‑time equivalent student for all districts by dividing the amount determined in subsection B of this section by the actual, audited full‑time equivalent student count for all districts in the most recent fiscal year.

3. Multiply the amount calculated in paragraph 1 of this subsection by the average appropriation calculated in paragraph 2 of this subsection. This amount shall be appropriated to the district for growth.

E. State aid appropriated to each district shall be allocated and paid in accordance with subsection C of this section before any funding is allocated and paid in accordance with subsection D of this section.

F. The total amount appropriated to each district each fiscal year in accordance with subsections C and D of this section shall serve as the amount of state aid to be adjusted in the next fiscal year. A district is not eligible for growth funding pursuant to this section unless the most recent audited full-time student equivalent count exceeds the highest audited full‑time student equivalent count recorded from and after fiscal year 2003‑2004.

G. To be eligible for state aid, a district shall:

1. Be equipped with suitable buildings, equipment and campus approved by the state board.

2. Have at least three hundred twenty full‑time equivalent students attending in the district.

3. Have complied with all of the requirements of the district state board including budgets and curriculum.

H. Notwithstanding subsection E of this section, the legislature may allocate funding for growth in the full‑time equivalent student count prior to or in combination with funding of the growth rate.

I. The total amount of state monies that may be spent in any fiscal year by a district for operating state aid shall not exceed the amount appropriated or authorized by section 35‑173 for that purpose. Notwithstanding section 15‑1444, this section shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose, including any duties prescribed in an employment contract entered into pursuant to section 15‑1444, subsection A, paragraph 6 5.

J. In addition to the formula to determine the state aid appropriations prescribed in this section, the state may pay additional amounts for state aid to a district based on requests included in the district's budget request. The state board shall include these additional amounts for state aid in the budget estimates submission prescribed in section 35-113.

K. This section does not entitle a community college operated by a qualified Indian tribe to state aid for community colleges pursuant to this chapter.END_STATUTE

Sec. 29. Section 15-1467, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1467. State aid appropriations; disbursement procedure; district fund

A. Appropriations for state aid to districts shall be distributed made to the state board for distribution to each community college district in accordance with section 15‑1466.

B. On July 15, October 15, January 15 and April 15 of each year, each district the state board shall present to the department of administration, on behalf of each district for which an appropriation is made, a claim for one‑fourth of the annual amount appropriated to the district. The department of administration shall draw a warrant in payment of the claim and transmit the warrant to the state treasurer who shall disburse the funds to each district for the support and maintenance of the district, to be expended as provided by law. If no community college exists, the department shall establish a fund for new future districts to be disbursed as needed.

C. Notwithstanding subsection B of this section, a district may request the state treasurer to disburse the monies to the local government investment pool for deposit into the district's account as established in section 35‑326. END_STATUTE

Sec. 30. Section 15-1469, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1469. Attendance of nonresident state students; payment of cost by county of residence

A. The district may admit students from any part of this state which is not a part of an established community college district on the same conditions as residents.

B. It shall be the obligation of the county of the student's residence to reimburse the district as provided in this subsection. The amount of reimbursement to each community college district from each county which is not a part of an organized community college district shall be determined as follows:

1. For students attending classes within the established community college district:

(a) Determine the number of full‑time equivalent students attending classes within the district from the county for the year preceding the current year.

(b) Determine the operational expenses of the district for the current year excluding direct and indirect costs of noncredit courses.

(d) Subtract the amount of state aid received for the current year determined in subdivision (c) from the amount of operational expenses for the current year determined in subdivision (b).

(e) Determine the number of full‑time equivalent students enrolled in the district for the current year.

(f) Divide the amount determined in subdivision (d) by the number of full‑time equivalent students determined in subdivision (e).

(g) Multiply the amount determined in subdivision (f) by the average number of full‑time equivalent students for the county determined as provided in subdivision (a).

The resulting amount is the amount of reimbursement to the district from the county for the budget year for students attending classes within the established community college district.

2. For students attending classes offered by the district within the county pursuant to section 15‑1470, the amount specified in the intergovernmental agreement is the amount of reimbursement to the district from the county for the budget year for students attending classes within the county.

C. The county school superintendent of the county of the student's residence shall certify to the community college district state board and the board of supervisors that the student is a resident of the county.

D. On or before May 15 of each year, the staff of the joint legislative budget committee state board shall:

1. Determine the amount of reimbursement to each district from each county pursuant to subsection B, paragraph 1 of this section.

2. Notify the board of supervisors of each county of the amount it shall reimburse to each district pursuant to subsection B, paragraph 1 of this section for the budget year.

3. Notify each community college district eligible to receive reimbursement of the amount of reimbursement from each county pursuant to subsection B, paragraph 1 of this section for the budget year.

E. On or before November 15 and May 15 of each year, the board of supervisors shall draw warrants on the county treasurer in favor of the community college district for half of the amount due pursuant to subsection B of this section. The board of supervisors shall:

1. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42‑17203 for the amount of reimbursement pursuant to an intergovernmental agreement for extension courses as provided in section 15‑1470.

2. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42‑17203 for the amount of reimbursement pursuant to subsection B, paragraph 1 of this section.

F. Notwithstanding subsection E of this section, a county and a community college district may specify by intergovernmental agreement that the amount of reimbursement due from the county be reduced by the value of in‑kind contributions made by the county to the district.

G. For the purposes of subsection B, paragraph 1 of this section, full‑time equivalent students are determined in the same manner prescribed by section 15‑1466.01. END_STATUTE

Sec. 31. Section 15-1470, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1470. Community college courses; intergovernmental agreement

A. A district With the approval of the state board, districts may offer credit and noncredit courses and services outside of the district in other districts within this state.

B. A district may offer credit and noncredit courses and services outside of the district in counties within this state without an organized district.

C. A district may offer credit and noncredit courses and services outside of this state. A district is not entitled to state aid payments for students who are provided courses and services outside of this state.

D. Before a district may offer courses pursuant to subsection A, the district shall enter into an intergovernmental agreement with the district of the county in which the courses will be held.

E. Before a district may offer courses pursuant to subsection B, the district shall enter into an intergovernmental agreement with the board of supervisors of the county in which the courses will be held. The district and the county shall negotiate the amount of reimbursement payable by the county to the district for courses conducted within the county no later than July 1 of each year.

F. The intergovernmental agreement entered into as provided in subsection E must be approved by the state board and may not require or permit the county to reimburse the district for noncredit classes.

G. The intergovernmental agreement entered into as provided in this section must be approved by the state board and shall include provisions for an alternative dispute resolution. END_STATUTE

Sec. 32. Section 15-1472, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1472. Community college district workforce development accounts; reports

A. Each community college district shall establish a separate workforce development account to receive only tax revenues authorized pursuant to section 42‑5029, subsection E, paragraph 3. Each community college district board shall approve the expenditure of these monies in accordance with section 15‑1461 and consistent with subsection B of this section.

B. Monies received pursuant to subsection A of this section shall be expended for workforce development and job training purposes. These expenditures may include:

1. Partnerships with businesses and educational institutions.

2. Additional faculty for improved and expanded classroom instruction and course offerings.

3. Technology, equipment and technology infrastructure for advanced teaching and learning in classrooms or laboratories.

4. Student services such as assessment, advisement and counseling for new and expanded job opportunities.

5. The purchase, lease or lease‑purchase of real property, for new construction, remodeling or repair of buildings or facilities on real property.

C. The state treasurer shall transfer monies under this section into each district’s workforce development account by the fifteenth day of each month. The state treasurer shall also allocate and distribute any pooled interest earnings earned from revenues authorized in section 42‑5029, subsection E, paragraph 3 to each district in accordance with the method prescribed in subsection D, paragraph 2 of this section.

D. Revenues authorized for community college districts in section 42‑5029, subsection E, paragraph 3 shall be distributed by the state in the following manner:

1. For thirteen fiscal years beginning in fiscal year 2001‑2002 the state treasurer shall allocate one million dollars per fiscal year for the purpose of bringing this state into compliance with the matching capital requirements prescribed in section 15‑1463. The state treasurer shall distribute the monies authorized in this subsection to each district in the order in which each campus qualified for funding pursuant to section 15‑1463.

2. After the monies have been paid each year to the eligible district districts pursuant to paragraph 1 of this subsection, the state treasurer shall distribute monies from the workforce development fund to each community college district in the following manner:

(a) Each district shall receive the sum of two hundred thousand dollars.

(b) After each district has received the payments prescribed in subdivision (a), the remainder of monies in the fund shall be distributed to each district according to each district’s full‑time equivalent student enrollment percentage of the total state wide statewide audited full‑time equivalent student enrollment in the preceding fiscal year prescribed in section 15‑1466.01. The percentage distribution under this subdivision shall be adjusted annually on October 1 of each year.

E. Revenues received by community college districts shall not be used by the legislature to supplant or reduce any state aid authorized in this chapter or supplant any proceeds from the sale of bonds authorized in this article and article 5 of this chapter.

F. Monies received under this section shall not be considered to be local revenues for purposes of article IX, section 21, Constitution of Arizona.

G. Each community college district shall submit a workforce development plan by April 1 of each year to the STATE BOARD of directors for community colleges and the department of commerce. The plan shall outline the purpose and goals for which workforce development monies are to be expended by the district.

H. Each community college district shall annually submit a report of its workforce development plan and expenditures authorized by this section for the previous year to the state board of directors for community colleges by December 1. The state board may offer recommendations regarding a district's workforce development plan for future years and shall forward the district reports to the joint legislative budget committee for review.

H. I. Each community college district or community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation shall submit a report once every two years of its workforce development plan activities and the expenditures authorized in this section to the governor, president of the senate, speaker of the house of representatives, joint legislative budget committee and department of commerce by December 1 of every even‑numbered year. The report shall include the purpose and goals for which the workforce development monies were expended by each district or community college together with a general accounting of the expenditures authorized in subsection B of this section. A copy of the final report shall also be provided to the secretary of state and the director of the Arizona state library, archives and public records. For the purposes of this subsection, "qualifying Indian tribe" has the same meaning prescribed in section 42‑5031.01. END_STATUTE

Sec. 33. Repeal

Section 15-1473, Arizona Revised Statutes, is repealed.

Sec. 34. 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 state board of directors for community colleges or its SUCCESSORS.

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, 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. 35. Section 15-1483, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1483. Issuance of bonds

A. On certification to the board by the governing body of the institution of the necessity for acquiring a project and after approval by the board of the location, preliminary plans, specifications and cost estimates for the project, the board for and on behalf of an the institution is authorized from time to time to issue negotiable bonds for the purpose of acquiring a project or projects. The bonds shall be authorized by resolution of the board. The bonds may be issued in one or more series, bear such date or dates, be in such denomination or denominations, mature at such time or times, not exceeding forty years from the respective dates thereof, mature in such amount or amounts, bear interest at such rate or rates, as determined by the board, payable semiannually, be in such form either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such term of redemption, with or without premium, as such resolution or other resolutions may provide. The bonds may be sold at not less than par at either public or private sale. The bonds shall be fully negotiable within the meaning and for all the purposes of title 47, chapter 3.

B. Before the issuance of bonds, a district shall submit information regarding the planned projects that will be funded with the bond proceeds to the joint committee on capital review for review. If a bond issuance requires voter approval, the district shall submit the information to the joint committee on capital review before seeking voter approval. END_STATUTE

Sec. 36. Section 15-1802, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1802. In‑state student status

A. Except as otherwise provided in this article, no person having a domicile elsewhere than in this state is eligible for classification as an in‑state student for tuition purposes.

B. A person is not entitled to classification as an in‑state student until the person is domiciled in this state for one year, except that a person whose domicile is in this state is entitled to classification as an in‑state student if the person meets one of the following requirements:

1. The person's parent's domicile is in this state and the parent is entitled to claim the person as an exemption for state and federal tax purposes.

2. The person is an employee of an employer that transferred the person to this state for employment purposes or the person is the spouse of such an employee.

3. The person is an employee of a school district in this state and is under contract to teach on a full‑time basis or is employed as a full‑time noncertified classroom aide at a school within that school district. For the purposes of this paragraph, the person is eligible for classification as an in‑state student only for courses necessary to complete the requirements for certification by the state board of education to teach in a school district in this state. No member of the person's family is eligible for classification as an in‑state student if the person is eligible for classification as an in‑state student pursuant to this paragraph, unless the family member is otherwise eligible for classification as an in‑state student pursuant to this section.

4. The person's spouse has established domicile in this state for at least one year and has demonstrated intent and financial independence and is entitled to claim the student as an exemption for state and federal tax purposes or the person's spouse was temporarily out of state for educational purposes, but maintained a domicile in this state. If the person is a noncitizen, the person must be in an eligible visa status pursuant to federal law to classify as an in‑state student for tuition purposes.

C. The domicile of an unemancipated person is that of the person's parent.

D. Any unemancipated person who remains in this state when the person's parent, who had been domiciled in this state, removes from this state is entitled to classification as an in‑state student until attainment of the degree for which currently enrolled, as long as the person maintains continuous attendance.

E. A person who is a member of the armed forces of the United States and who is stationed in this state pursuant to military orders or who is the spouse or a dependent child as defined in section 43‑1001 of a person who is a member of the armed forces of the United States and who is stationed in this state pursuant to military orders is entitled to classification as an in‑state student. A spouse or a dependent child does not lose in-state student classification under this subsection if the spouse or dependent child qualifies for in-state tuition classification at the time the spouse or dependent child is accepted for admission to a community college under the jurisdiction of a community college district governing board or a university under the jurisdiction of the Arizona board of regents. The student, while in continuous attendance toward the degree for which currently enrolled, does not lose in‑state student classification.

F. A person who is a member of the armed forces of the United States or the spouse or a dependent as defined in section 43‑1001 of a member of the armed forces of the United States is entitled to classification as an in‑state student if the member of the armed forces has claimed this state as the person's state of legal residence for at least twelve consecutive months before the member of the armed forces, spouse or dependent enrolls in a university under the jurisdiction of the Arizona board of regents or a community college under the jurisdiction of a community college district governing board the state board of directors for community COLLEGES. For the purposes of this subsection, the requirement that a person be domiciled in this state for one year before enrollment to qualify for in‑state student classification does not apply.

G. A person who is honorably discharged from the armed forces of the United States shall be granted immediate classification as an in‑state student on honorable discharge from the armed forces and, while in continuous attendance toward the degree for which currently enrolled, does not lose in‑state student classification if the person has met all of the following requirements:

1. Declared Arizona as the person's legal residence with the person's branch of service at least one year prior to discharge from the armed forces.

2. Demonstrated objective evidence of intent to be a resident of Arizona which, for the purposes of this section, includes at least one of the following:

(a) An Arizona driver license.

(b) Arizona motor vehicle registration.

(d) Arizona voter registration.

(e) Transfer of major banking services to Arizona.

(f) Change of permanent address on all pertinent records.

(g) Other materials of whatever kind or source relevant to domicile or residency status.

3. Filed an Arizona income tax return with the department of revenue during the previous tax year.

H. A person who is a member of an Indian tribe recognized by the United States department of the interior whose reservation land lies in this state and extends into another state and who is a resident of the reservation is entitled to classification as an in‑state student. END_STATUTE

Sec. 37. Section 15-1802.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1802.01. County residency status; community college districts

A. Each community college district shall adopt policies regarding domicile requirements that include, at a minimum, the following:

1. Each student shall have the question of domicile determined before the time of registration and payment of fees. It is the responsibility of the student to register under the correct domicile determination.

2. Enforcement of domicile requirements shall be the responsibility of the chief executive officer of each community college district.

3. The chief executive officer of each community college district shall designate a representative at each college or campus who is responsible for documents and who is qualified to administer oaths as defined in section 41‑311 in connection with statements and testimony relative to student domicile status for tuition purposes. Affidavits shall be submitted on a form prescribed by the state board of directors for community colleges.

4. In addition to the requirements prescribed in section 15‑1802, subsection G, any of the following may be used in determining a student's domicile:

(a) An income tax return.

(b) The place of graduation from high school.

(d) Dependency as indicated on a federal income tax return.

(e) Ownership of real property.

(f) A notarized statement of a landlord or employer.

(g) Bank accounts.

B. Each community college district shall adopt policies regarding classification procedures for a student for nonresident or resident tuition purposes that include, at a minimum, the following:

1. In determining a student’s classification, the college may consider all evidence, written or oral, presented by the student and any other information received from any source that is relevant to determining classification. The college may request written sworn statements or sworn testimony of the student.

2. The decision as to classification shall be made by the representative designated pursuant to subsection A, paragraph 3 of this section. In making the decision the representative may consult with other college officials. Decisions by the representative shall be made as soon as possible after all relevant information is acquired.

3. If the representative classifies the student as a nonresident for tuition purposes, the decision shall be communicated to the student by mail to the most recent address furnished to the college. If the student is classified as a nonresident for tuition purposes, the student must make satisfactory provision for payment of nonresident tuition and other charges.

C. Each community college district shall adopt a review and appeals process for students contesting a domicile decision by the college.

D. An individual domiciled in this state, but not in a community college district, shall be required to sign a notarized statement as to county residency stating that the individual has resided in the county for at least fifty days before the first day of classes. END_STATUTE

Sec. 38. Section 15-1804, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1804. Presumptions relating to student status; definition

A. Unless the contrary appears to the satisfaction of the registering authority of the community college or university at which a student is registering, it shall be presumed that:

1. No emancipated person has established a domicile in this state while attending any educational institution in this state as a full‑time student, as such status is defined by subsection B for community college students the state board of directors for community colleges or as defined by the Arizona board of regents for university students, in the absence of a clear demonstration to the contrary.

2. Once established, a domicile is not lost by mere absence unaccompanied by intention to establish a new domicile.

3. A person who has been domiciled in this state immediately prior to becoming a member of the armed forces of the United States shall not lose in‑state status by reason of such person's presence in any other state or country while a member of the armed forces of the United States.

B. For the purposes of this section, "full-time student" means a community college student who registers for at least twelve semester hours per semester at a community college in this state. END_STATUTE

Sec. 39. Section 15-1805, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1805. Student status guidelines

A. The Arizona board of regents and the state board of directors for community colleges shall adopt guidelines applicable to all institutions under their jurisdiction respective JURISDICTIONS that will ensure uniform criteria to aid the institutions in determining the tuition status of any student and that will establish uniform procedures for review of that status.

B. Community college districts shall adopt policies applicable to all institutions under their jurisdiction that will ensure uniform criteria to aid the institutions in determining the tuition status of any student and that will establish uniform procedures for review of that status. END_STATUTE

Sec. 40. Section 15-1806, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1806. Testimony concerning student status; designation of persons to administer oaths

The Arizona board of regents and each community college district the state board of directors for community colleges shall designate a person employed at each institution under their respective jurisdictions to administer oaths or affirmations in connection with the taking of testimony relative to student status for tuition purposes. END_STATUTE

Sec. 41. Section 15-1808, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1808. Tuition waiver of child or spouse of peace officer, correctional officer, fire fighter, emergency paramedic or national guard member killed in the line of duty; disabled national guard member; definitions

A. The board of regents, after verification by the Arizona peace officers memorial board, by the Arizona fire fighters and emergency paramedics memorial board or by the adjutant general of the national guard that a person is a child or a spouse of a peace officer, correctional officer, fire fighter, emergency paramedic or national guard member who was a resident of the state of Arizona and who was killed in the line of duty or who died from injuries suffered in the line of duty while traveling to or from duty, shall provide the person who qualifies under subsection B of this section and who otherwise meets the qualifications for admission with a tuition waiver scholarship at any university under the jurisdiction of the board. A district as defined in section 15‑1401 The state board of directors for community colleges, after verification by the Arizona peace officers memorial board, by the Arizona fire fighters and emergency paramedics memorial board or by the adjutant general of the national guard that a person is the child or the spouse of a peace officer, correctional officer, fire fighter, emergency paramedic or national guard member who was a resident of Arizona and who was killed in the line of duty or who died from injuries suffered in the line of duty while traveling to or from duty, shall provide the person who qualifies under subsection B of this section and who otherwise meets the qualifications for admission with a tuition waiver scholarship at any community college under the jurisdiction of the board.

B. The tuition waiver scholarships shall be limited to children who are thirty years of age or younger or a spouse who has not remarried and shall be limited for a spouse or for any one child to no more than sixty‑four credit hours at Arizona community colleges and a total number of credits including any transfer credits from an Arizona community college equal to the number of credits required for a baccalaureate degree at Arizona universities for that student's initially declared course of study.

C. A member of the Arizona national guard who received a purple heart citation on or after September 11, 2001 or a former member of the Arizona national guard who was medically discharged from the Arizona national guard due to an injury or disability suffered during status under title 10, United States Code, in weekend training status, in annual training status or in response to a state of emergency declared by the governor is eligible for a tuition waiver scholarship provided for in this section.

D. For the purposes of this section:

1. "Correctional officer" means a person, other than an elected official, who is employed by this state or a county, city or town and who is responsible for the supervision, protection, care, custody or control of inmates in a state, county or municipal correctional institution, including counselors but excluding secretarial, clerical and professionally trained personnel.

2. "Emergency paramedic" means a person who has been trained in an emergency paramedic training program certified by the director of the department of health services or in an equivalent training program and who is certified by the director of the department of health services to render services pursuant to section 36‑2205.

3. "Fire fighter" means a professional fire fighter who is a member of a state, federal, tribal, city, county, district or private fire department.

4. "Peace officers" means sheriffs of counties, constables, marshals, police officers of cities and towns, commissioned personnel of the department of public safety and police officers appointed by community college district governing boards or the Arizona board of regents, who have received a certificate from the Arizona peace officer standards and training board, and other state, federal, tribal, city or county officers vested by law with a duty to maintain public order and make arrests.END_STATUTE

Sec. 42. Section 15-1821, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1821. Special admission of students under age eighteen; enrollment information; reports

A. Each community college district board The state board of directors for community colleges shall adopt policies rules which require community colleges under its jurisdiction to admit students who are under age eighteen years of age, who have not yet attained a high school diploma or high school certificate of equivalency and who meet the established requirements of the courses for which they enroll. The Arizona board of regents shall adopt rules which require the universities under its jurisdiction to admit students who are under age eighteen years of age, who have not yet attained a high school diploma or high school certificate of equivalency and who meet the established requirements of the courses for which they enroll.

B. The policies and rules as provided in subsection A shall include the following provisions:

1. No student under age eighteen years of age shall be denied admission because of age, lack of a high school diploma or high school certificate of equivalency, grade in school, lack of permission of school officials or lack of concurrent enrollment in a public or private school, if the student has achieved at least a specified score on a college entrance examination.

2. A community college or university which admits a student pursuant to paragraph 1 of this subsection may limit the number of semester credit hours in which the student may enroll to no less than six semester credit hours.

3. A student admitted to a community college or university pursuant to paragraph 1 of this subsection is not guaranteed admission to a specific degree program or to all courses offered by the community college or university.

C. Each community college district The state board of directors for community colleges and the Arizona board of regents shall provide all high schools in this state with information which describes the policies and rules, as appropriate, the types of courses available and other information related to the enrollment of students under the age of eighteen years of age. Each unified or high school district school shall make this information available to all students in at least grades nine through twelve.

D. On or before November 15 of each year, each community college district the state board of directors for community colleges and the Arizona board of regents shall each submit a report to the president of the senate, the speaker of the house of representatives and the state board of education and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records, on students who were under eighteen years of age, who had not yet attained a high school diploma or high school certificate of equivalency and who were enrolled in a university or community college course or a program for community college or university credit during the time period of September of the previous fiscal year through August of the current fiscal year. The annual report shall include at least the following:

1. The number of students who were enrolled.

2. A general narrative of the types of courses or programs in which the students were enrolled.

3. The rules adopted pursuant to subsection A.

E. On or before September 30 of each year, each institution under the jurisdiction of the state board of directors for community colleges or the Arizona board of regents shall submit to the Arizona appropriate board of regents in the form specified by the Arizona board of regents the information that the Arizona board of regents needs to compile the report required in subsection D.END_STATUTE

Sec. 43. Section 15-1822, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1822. Report; academic performance of high school graduates

A. On or before October 31 of each year, each community college district the state board of directors for community colleges and the Arizona board of regents shall each submit a report to the president of the senate, the speaker of the house of representatives, the superintendent of public instruction and the state board of education and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records, on the academic performance of the preceding year's graduates from high schools in this state enrolled in institutions under their jurisdiction during the year ending on June 30 of the current calendar year. The report shall include for each school at least the following:

1. The number of graduates of the school who were enrolled in the institution during the reporting period.

2. Information about the academic performance of graduates of the school in mathematics and English courses.

B. On or before September 1 of each year, each institution under the jurisdiction of the state board of directors for community colleges or the Arizona board of regents shall submit to the Arizona appropriate board of regents in the form specified by the Arizona board of regents the information that the Arizona board of regents needs to compile the report required under this section.

C. The superintendent of public instruction shall provide each high school in this state with a copy of the portion of the report that is applicable to its graduates. END_STATUTE

Sec. 44. Section 15-1823, Arizona Revised Statutes, as amended by Laws 2006, chapter 100, section 1, is amended to read:

START_STATUTE15-1823. Identification numbers; social security numbers

A. From and after June 30, 2002, if a university under the jurisdiction of the Arizona board of regents assigns an individual identification number to faculty, staff or students at a university, the identification number shall not be identical to the individual's social security number. Notwithstanding subsection B of this section, If a student was assigned an identification number after June 30, 2006, in connection with the student accountability information system established by section 15-1041, the identification number assigned to that student by the university shall correspond to or reference the identification number assigned to that student in connection with the student accountability information system. The student shall provide the student accountability information system number to the university. The school district or charter school shall provide the student with the student accountability information system number upon request. The university shall not allow the display of the individual's social security number, or any four or more consecutive numbers contained in the individual's social security number, on any internet site maintained by the university or other publicly accessible document for any purpose.

B. If a community college or community college district under the JURISDICTION of the state board of directors for community colleges assigns an individual identification number to faculty, staff or students at a community college that is identical to an individual's social security number, the community college or community college district shall not allow the display of an individual's social security number, or any four or more consecutive numbers contained in the individual's social security number, on any internet site maintained by the community college or community college district or other publicly accessible document for any purpose.

C. Notwithstanding subsection B of this section, if a student was assigned an identification number after June 30, 2006, in connection with the student accountability information system established by section 15-1041, the identification number assigned to that student by the community college or community college district shall correspond to or reference the identification number assigned to that student in connection with the student accountability information system. The student shall provide the student accountability information system number to the community college. The school district or charter school shall provide the student with the student accountability information system number upon request. A community college or community college district shall assign any other student an identification number that is not identical to the student's social security number. Beginning January 1, 2004, if a high school student is enrolled in a college course offered by a community college district pursuant to section 15‑1821.01, the identification number assigned to that student pursuant to this subsection shall correspond to the identification number assigned to that student in connection with the student accountability information system established by section 15‑1041. A community college or community college district shall notify students of the option to obtain an individual identification number for no additional fee that is not identical to an individual's social security number in applications for admission, through telecommunications registration procedures, and in college catalogs. Notification in catalogs shall occur no later than June 30, 2000, or in the next printed edition of the catalog after the current one in print, whichever is sooner.

D. On the request of a faculty or staff member, a community college or community college district shall assign the faculty or staff member an identification number that is not identical to the faculty or staff member's social security number. A community college or community college district shall provide notification to faculty and staff members of the option to obtain an individual identification number that is not identical to a faculty or staff member's social security number.

E. This section does not exempt any regulated institution from any duty of compliance it may have with any federal law that may:

1. Regulate that institution's collection or use of social security numbers.

2. Protect the privacy rights of faculty, staff or students.

F. This section does not prohibit the electronic transfer of student transcripts between educational institutions.END_STATUTE

Sec. 45. Section 15-1824, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1824. Transfer articulation; annual report

A. The community college districts colleges and universities shall cooperate in operating a statewide articulation and transfer system, including the process for transfer of lower division general education credits, general elective credits and curriculum requirements for approved majors, to facilitate the transfer of community college students to Arizona public universities without a loss of credit toward a baccalaureate degree and to ensure that the postsecondary education needs of students statewide are met without unnecessary duplication of programs.

B. The Arizona board of regents and the community college districts state board of DIRECTORS for community colleges shall submit an annual report of their progress on both articulation and meeting statewide postsecondary education needs to the joint legislative budget committee on or before December 15 and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records. END_STATUTE

Sec. 46. Section 15-1831, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1831. Information on persons who have completed vocational programs; definitions

A. The center for vocational education shall:

1. By the end of each calendar year publish and distribute a report of the placement rates and average salaries earned by persons completing vocational programs in this state during the prior fiscal year. This report may include information on a program which would be a vocational program except that it was not completed by at least twenty‑five persons during the fiscal year.

2. Establish an advisory committee consisting of representatives of both public and private institutions which offer vocational programs. The advisory committee shall advise the center in the implementation of this section.

3. Prescribe the format in which institutions which offer vocational programs shall provide the information necessary to produce the report prescribed in paragraph 1 of this subsection.

B. The governing board of each community college district shall:

1. Transmit to the center for vocational education the following information within thirty days of the end of the fiscal year:

(a) The social security number of each person who completed a vocational program during the previous fiscal year.

(b) Such information as the center may require in order to conduct a follow‑up survey of a sample of persons who have completed vocational programs.

2. Make available to students prior to or at the time of registration the report distributed by the center for vocational education as prescribed in this section.

C. In this section, unless the context otherwise requires:

1. "Center for vocational education" means the center for vocational education at a university under the jurisdiction of the Arizona board of regents designated by the board.

2. "Vocational program" means a program that is completed by at least twenty‑five persons during the fiscal year and which that is one of the following:

(a) Operated by a community college district organized pursuant to chapter 12 of this title and designated as a vocational program by the state board of directors for community colleges, including vocational programs operated by a skill center.

(b) A private vocational program that is licensed pursuant to section 32‑3021 which and that does not provide a baccalaureate degree. END_STATUTE

Sec. 47. Section 15-1851, Arizona Revised Statutes, is amended to read:

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

A. The commission for postsecondary education is established as the postsecondary review entity for this state for the conduct, supervision and coordination of the review of postsecondary education institutions in order to determine the eligibility of those institutions for student financial aid monies pursuant to the provisions of title IV, part H, subpart one of the higher education amendments of 1992 (P.L. 102‑325; 106 Stat. 638; 20 United States Code section 1099a). The commission shall accomplish the purpose of this subsection through the accumulation of information, the performance of studies and the determination of compliance by the postsecondary education institutions with the provisions of title IV, part H, subpart one of the higher education amendments of 1992. The review authority of the commission shall be limited to circumstances where the United States department of education has referred an institution to the commission for review or where the United States department of education has approved the review of an institution in accordance with criteria established by the United States department of education. The commission shall keep records of its activities, and the commission shall provide information when requested to the United States secretary of education for financial and compliance audits and for institution evaluation. The scope of authority of the commission acting as a postsecondary review entity to review any educational institution is limited specifically to compliance by the institution with title IV, part H, subpart one of the higher education amendments of 1992. Any review of any institution conducted by the commission shall be performed in the context of the institution's individual mission and purposes. The commission shall not exercise planning, policy, coordinating, supervisory, budgeting or administrative powers over any postsecondary institution in this state.

B. The commission shall also 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.

C. In addition to the responsibilities prescribed in subsections A and B 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.

D. The commission consists of the executive director of the Arizona board of regents, the executive director of the state board of directors for community colleges, 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 that is under the JURISDICTION of the state board of directors for community colleges, 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 the provisions of 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.

E. Members of the commission appointed pursuant to subsection D, 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.

F. The executive director of the Arizona board of regents, the executive director of the state board of directors for community colleges 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.

G. Members appointed pursuant to subsection D, 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.

H. 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.

I. Except as provided in subsection J of this section, a majority of the members of the commission constitutes a quorum for the transaction of commission business. The vote of a majority of the quorum constitutes authority for the commission to act.

J. For all purposes relating to title IV, part H, subpart one of the higher education amendments of 1992 the commission membership shall consist only of the members appointed pursuant to subsection D, paragraphs 1 through 7 of this section, and all commission actions taken pursuant to title IV, part H, subpart one of the higher education act amendments of 1992 require the affirmative vote of at least six members.

K. 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.

L. 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 and that is a political subdivision of this state. END_STATUTE

Sec. 48. 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 under the JURISDICTION of the state board of directors for community colleges 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 colleges under the jurisdiction of the state board of directors for community colleges 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 one thousand five hundred dollars annually for not to exceed two years and three 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.

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 and that is a political subdivision of this state. END_STATUTE

Sec. 49. Section 23-391, Arizona Revised Statutes, is amended to read:

START_STATUTE23-391. Overtime pay; work week

A. Subject to availability of appropriated funds, an employee of the state or any political subdivision, serving in a position determined by the law enforcement merit system council, the director of the department of administration, the Arizona board of regents, the state board of directors for community colleges, the board of directors for the Arizona state schools for the deaf and the blind or the governing body of a political subdivision, in the discretion of such board or body, to be eligible for overtime compensation who is required to work in excess of such person's normal work week, shall be compensated for such excess time at the following rates:

1. One and one‑half times the regular rate at which such person is employed or one and one‑half hours of compensatory time off for each hour worked if overtime compensation is mandated by federal law.

2. If federal law does not mandate overtime compensation, the person shall receive the regular rate of pay or compensatory leave on an hour for hour basis at the discretion of the board or governing body.

B. Notwithstanding subsection A, the state or a political subdivision may provide, by action of the law enforcement merit system council, the Arizona board of regents, the state board of directors for community colleges, the board of directors for the Arizona state schools for the deaf and the blind or the director of the department of administration in the case of the state or of the governing body of the political subdivision, for a work week of forty hours in less than five days for certain classes of employees employed by the state or the political subdivision. END_STATUTE

Sec. 50. Section 32-3001, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3001. Definitions

In this chapter, unless the context otherwise requires:

1. "Accredited" means accredited by an accrediting agency recognized by the United States department of education.

2. "Board" means the state board for private postsecondary education.

3. "Degree" means an academic degree or honorary degree or the title of any designation, mark, appellation, series of letters or words including associate, bachelor, master, doctor or fellow which signifies, purports to signify or is generally taken to signify satisfactory completion of the requirements of an educational program of study beyond the secondary school level or which is an honorary title conferred for recognition of some meritorious achievement.

4. "Grant" means award, bestow, confer, convey or sell.

5. "Operate" means to establish, keep, maintain or utilize a physical facility, location or mailing address in this state where, from which or through which students are procured for private vocational or private degree programs, private vocational or private degree programs are offered or private vocational credentials or private degrees are offered or granted and includes contracting for the performance of any of these acts.

6. "Private vocational program" means an instructional program which includes a course or group of courses as defined in section 15‑101 for which a student does not earn a degree and which is designed to provide or is advertised as providing a student with sufficient skills for entry into a paid occupation, and which is not conducted solely by a public school, public community college or public university except as provided in section 15-1424. END_STATUTE

Sec. 51. Section 35-101, Arizona Revised Statutes, is amended to read:

START_STATUTE35-101. Definitions

In this chapter, unless the context otherwise requires:

1. "Allotment" means the allocation of an appropriation or other fund source over a full fiscal year within a budget program or expenditure class.

2. "Annual budget unit" means the following agencies:

(a) The department of education.

(b) The Arizona board of regents.

(d) Arizona state university west campus.

(e) Arizona state university east campus.

(f) The university of Arizona.

(g) Northern Arizona university.

(h) The state board of directors for community colleges.

(h) (i) The school facilities board.

(i) (j) The department of economic security.

(j) (k) The state department of corrections.

(k) (l) The department of juvenile corrections.

(l) (m) The Arizona health care cost containment system.

(m) (n) The department of health services.

(n) (o) The department of administration.

(o) (p) The department of transportation.

(p) (q) The judiciary, including the supreme court, the court of appeals and the superior court.

3. "Authorized agent" means a commercial enterprise contracted to process transactions on behalf of a state agency.

4. "Biennial budget unit" means any department, commission, board, institution or other agency of the state organization receiving, expending or disbursing state funds or incurring obligations against the state that is not an annual budget unit.

5. "Budget estimates" means statements with accompanying explanations, as provided by this chapter, in which a budget unit states its financial requirements and requests appropriations.

6. "Budget program" means functions and activities of a budget unit or within a budget unit that are preplanned to fulfill a distinct mission.

7. "Budget unit" means any department, commission, board, institution or other agency of the state organization receiving, expending or disbursing state funds or incurring obligations against the state. Budget unit includes the annual budget units and biennial budget units.

8. "Cardholder" means any person:

(a) Named on the face of a credit card to whom or for whose benefit the credit card is issued by an issuer.

(b) In possession of a credit card with the consent of the person to whom the credit card was issued.

9. "Claim" means a demand against the state for payment for either:

(a) Goods delivered or, in the case of highway construction, goods or facilities to be delivered, by the federal government.

(b) Services performed.

10. "Convenience fee" means an additional fee that is imposed by an authorized agent on a web‑based portal transaction for the acceptance of a credit card that would not be charged if the same transaction were completed by an alternate method of payment.

11. "Credit card" means:

(a) Any instrument or device, whether known as a credit card, charge card, credit plate, courtesy card or identification card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value, either on credit or in possession or in consideration of an undertaking or guaranty by the issuer of the payment of a check drawn by the cardholder, on a promise to pay in part or in full at a future time, whether or not all or any part of the indebtedness represented by this promise to make deferred payment is secured or unsecured.

(b) Any debit card, electronic benefit transfer card or other access instrument or device, other than a check that is signed by the holder or other authorized signatory on the deposit account, that draws monies from a deposit account in order to obtain money, goods, services or anything else of value.

(c) Any stored value card, smart card or other instrument or device that enables a person to obtain goods, services or anything else of value through the use of value stored on the instrument or device.

(d) The number assigned to an instrument or device described in subdivision (a), (b) or (c) of this paragraph even if the physical instrument or device is not used or presented.

12. "Discount fee" means the fee calculated and charged by the credit card issuer or a financial institution pursuant to an agreement for the processing of any credit card transaction.

13. "Encumbrance" means an obligation in the form of any purchase order, contract or other commitment which is chargeable to an appropriation or any other authorized fund source and for which a part of the fund source is reserved. It ceases to be an encumbrance when paid or canceled.

14. "Expenditure class" means one of the kinds of expenditure denoting a class of services or commodities purchased or properties acquired as specified in the classification of expenditures prescribed by the director of the department of administration for use in expenditure accounting, in making budget estimates and in the budget reports and budgets.

15. "Issuer" means any business organization, state agency or financial institution, or its duly authorized agent, that issues a credit card.

16. "Prepayment" means the payment of a claim before receiving the goods or services.

17. "Processing fee" means a fee charged by an entity other than a credit card issuer or the processing financial institution to process a credit card transaction.

18. "Purchase order" means a document that is signed by the appropriate agency authorized signatory, that requests a vendor to deliver described goods or services at a specific price and that on delivery and acceptance of the goods or services by this state becomes an obligation of this state.

19. "Transaction amount" means the total amount due to the state for any goods, service or license or anything else of value. END_STATUTE

Sec. 52. Section 41-790.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-790.01. Exemptions; exception

A. The following are exempt from the provisions of this article relating to capital improvement plans:

1. Land acquisition, capital projects or building renewal by any state agency if the total cost of the entire acquisition, project or building renewal will not exceed twenty‑five thousand dollars.

2. Programs, projects or improvements of the state transportation board relating to the construction, reconstruction, improvement or maintenance of state highways or bridges.

B. The state board of directors for community colleges is exempt from this article.

B. C. Land acquisition, capital projects and building renewal relating to buildings which serve as offices for the department of transportation are not exempt. END_STATUTE

Sec. 53. Section 41-1005, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1005. Exemptions

A. This chapter does not apply to any:

1. Rule which relates to the use of public works, including streets and highways, under the jurisdiction of an agency if the effect of the order is indicated to the public by means of signs or signals.

2. Order of the Arizona game and fish commission which opens, closes or alters seasons or establishes bag or possession limits for wildlife.

3. Rule relating to section 28‑641 or to any rule regulating motor vehicle operation which relates to speed, parking, standing, stopping or passing enacted pursuant to title 28, chapter 3.

4. Rule concerning only the internal management of an agency which does not directly and substantially affect the procedural or substantive rights or duties of any segment of the public.

5. Rule that only establishes specific prices to be charged for particular goods or services sold by an agency.

6. Rule concerning only the physical servicing, maintenance or care of agency owned or operated facilities or property.

7. Rule or substantive policy statement concerning inmates or committed youth of a correctional or detention facility in secure custody or patients admitted to a hospital, if made by the state department of corrections, the department of juvenile corrections, the board of executive clemency or the department of health services or a facility or hospital under the jurisdiction of the state department of corrections, the department of juvenile corrections or the department of health services.

8. Form whose contents or substantive requirements are prescribed by rule or statute, and instructions for the execution or use of the form.

9. Capped fee‑for‑service schedule adopted by the Arizona health care cost containment system administration pursuant to title 36, chapter 29.

10. Fees prescribed by section 6‑125.

11. Order of the director of water resources adopting or modifying a management plan pursuant to title 45, chapter 2, article 9.

12. Fees established under section 3‑1086.

13. Fee‑for‑service schedule adopted by the department of economic security pursuant to section 8‑512.

14. Fees established under sections 41‑2144 and 41‑2189.

15. Rule or other matter relating to agency contracts.

16. Fees established under section 32‑2067 or 32‑2132.

17. Rules made pursuant to section 5‑111, subsection A.

18. Rules made by the Arizona state parks board concerning the operation of the Tonto natural bridge state park, the facilities located in the Tonto natural bridge state park and the entrance fees to the Tonto natural bridge state park.

19. Fees or charges established under section 41‑511.05.

20. Emergency medical services protocols, except as provided in section 36‑2205, subsection C.

21. Fee schedules established pursuant to section 36‑3409.

22. Procedures of the state transportation board as prescribed in section 28‑7048.

23. Rules made by the state department of corrections.

24. Fees prescribed pursuant to section 32‑1527.

25. Rules made by the department of economic security pursuant to section 46‑805.

26. Schedule of fees prescribed by section 23‑908.

27. Fees prescribed pursuant to section 15-1425.

B. Notwithstanding subsection A, paragraph 23 22 of this section, at such time as the federal highway administration authorizes the privatization of rest areas, the state transportation board shall make rules governing the lease or license by the department of transportation to a private entity for the purposes of privatization of a rest area.

C. Coincident with the making of a rule pursuant to an exemption under this section, the agency shall file a copy of the rule with the secretary of state for publication pursuant to section 41‑1012.

D. Unless otherwise required by law, articles 2, 3, 4 and 5 of this chapter do not apply to the Arizona board of regents and the institutions under its jurisdiction, except that the Arizona board of regents shall make policies or rules for the board and the institutions under its jurisdiction which provide, as appropriate under the circumstances, for notice of and opportunity for comment on the policies or rules proposed.

E. Unless otherwise required by law, articles 2, 3, 4 and 5 of this chapter do not apply to the Arizona state schools for the deaf and the blind, except that the board of directors of all the state schools for the deaf and the blind shall adopt policies for the board and the schools under its jurisdiction that provide, as appropriate under the circumstances, for notice of and opportunity for comment on the policies proposed for adoption.

F. Unless otherwise required by law, articles 2, 3, 4 and 5 of this chapter do not apply to the state board of education, except that the state board of education shall adopt policies or rules for the board and the institutions under its jurisdiction that provide, as appropriate under the circumstances, for notice of and opportunity for comment on the policies or rules proposed for adoption. In order to implement or change any rule, the state board of education shall provide at least two opportunities for public comment. END_STATUTE

Sec. 54. Section 41-1057, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1057. Exemptions

In addition to the exemptions stated in section 41‑1005, this article does not apply to:

1. An agency which is a unit of state government headed by a single elected official.

2. The corporation commission, which shall adopt substantially similar rule review procedures, including the preparation of an economic impact statement and a statement of the effect of the rule on small business.

3. The state board of directors for community colleges.

3. 4. The industrial commission of Arizona when incorporating by reference the federal occupational safety and health standards as published in 29 Code of Federal Regulations parts 1904, 1910, 1926 and 1928.

4. 5. The Arizona state lottery if making rules that relate only to the design, operation or prize structure of a lottery game. END_STATUTE

Sec. 55. Section 41-1829.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1829.01. Arizona peace officers memorial board; duties

A. The Arizona peace officers memorial board shall:

1. Add to the memorial at least annually the names of all members of the law enforcement community in this state who have lost their lives in the line of duty and provide for a dedication ceremony which commemorates the addition of their names.

2. Plan and provide for the maintenance of the peace officers memorial.

3. Report annually to the president of the senate and the speaker of the house of representatives on the progress of the memorial and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records.

4. Determine those persons who are eligible for the tuition waiver pursuant to section 15‑1808 and report the determination to the Arizona board of regents or to each community college district governing board the state board of directors for community colleges, as applicable.

B. The Arizona peace officers memorial board may:

1. Solicit private monetary donations for deposit in the Arizona peace officers memorial fund.

2. Use the monies deposited in the Arizona peace officers memorial fund established by section 41‑1829.02 for persons who are eligible for the tuition waiver pursuant to section 15‑1808 to pay for tuition, if tuition has not been waived, and other educational expenses incurred at a community college or a publicly or privately funded college or university or technical school.END_STATUTE

Sec. 56. Section 41-1862, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1862. Arizona fire fighters and emergency paramedics memorial board; duties

The Arizona fire fighters and emergency paramedics memorial board shall:

1. Establish a memorial for all fire fighters and emergency paramedics who have lost their lives in the line of duty.

2. Determine those persons who are eligible to be memorialized.

3. Plan and provide for additions to and maintenance of the fire fighters and emergency paramedics memorial.

4. Solicit private monetary donations or public monies from municipalities for deposit in the Arizona fire fighters and emergency paramedics memorial fund.

5. Receive property from any public source for use in establishing or maintaining the memorial.

6. Report annually to the president of the senate and the speaker of the house of representatives on the progress of the memorial and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records.

7. Determine those persons who are eligible for the tuition waiver scholarship pursuant to section 15‑1808 and report the determination to the Arizona board of regents or to each community college district governing board the state BOARD of directors for community colleges, as applicable. END_STATUTE

Sec. 57. Section 41-2751, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2751. Definitions

In this article, unless the context otherwise requires:

1. "Governing board" means the Arizona board of regents for the universities or any community college district governing board.

2. 1. "Invited guests" means persons who enter onto a campus for an educational, research or public service activity and not primarily to purchase or receive goods and services not related to the educational, research or public service activity for which such persons enter onto the campus.

3. 2. "Private enterprise" means an individual, firm, partnership, joint venture, corporation, association or any other legal entity engaging in the manufacturing, processing, sale, offering for sale, rental, leasing, delivery, dispensing, distributing or advertising of goods or services for profit.

4. 3. "Public service" means an activity that is normally and generally associated with community colleges and universities in this state, a purpose or significant result of which is not to engage in competition with private enterprise.

5. 4. "State agency" means a department, office, commission, institution, board or other agency of state organization regardless of whether monies are appropriated to the agency.

5. "State governing board" means the arizona board of regents for the universities and the state board of directors for community colleges for the community colleges. END_STATUTE

Sec. 58. Section 41-2752, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2752. State competition with private enterprise prohibited; exceptions

A. A state agency shall not engage in the manufacturing, processing, sale, offering for sale, rental, leasing, delivery, dispensing, distributing or advertising of goods or services to the public that are also offered by private enterprise unless specifically authorized by law other than administrative law and executive orders.

B. A state agency shall not offer or provide goods or services to the public for or through another state agency or a local agency, including by intergovernmental or interagency agreement, in violation of this section or section 41‑2753.

C. The restrictions on activities that compete with private enterprise contained in this section do not apply to:

1. The development, operation and management of state parks, historical monuments and hiking or equestrian trails.

2. Correctional industries established and operated by the state department of corrections providing the prices charged for products sold by the correctional industries are not less than the actual cost of producing and marketing the product plus a reasonable allowance for overhead and administrative costs.

3. The Arizona office of tourism.

4. The Arizona highways magazine, operated by the department of transportation.

5. Printing and distributing information to the public if the agency is otherwise authorized to do so, and printing or copying public records or other material relating to the public agency's public business and recovering through fees and charges the costs of such printing, copying and distribution.

6. The department of public safety.

7. The construction, maintenance and operation of state transportation facilities.

8. The development, distribution, maintenance, support, licensing, leasing or sale of computer software by the department of transportation.

9. Agreements executed by the Arizona health care cost containment system administration with other states to design, develop, install and operate information technology systems and related services or other administrative services pursuant to section 36‑2925.

10. Agreements executed by the department of economic security with other states to design, develop, install and operate support collection technology systems and related services. The department shall deposit, pursuant to sections 35‑146 and 35‑147, monies received pursuant to this paragraph in the public assistance collections fund established by section 46‑295.

11. Contracts between the department of juvenile corrections and this state, a political subdivision of this state or a private entity in order to provide employment or vocational educational experience.

12. The aflatoxin control technologies of the cotton research and protection council.

13. The lease or sublease of lands or buildings by the department of economic security pursuant to section 41‑1958.

D. The restrictions on activities that compete with private enterprise contained in subsection A of this section do not apply to community colleges and universities under the jurisdiction of a state governing board. END_STATUTE

Sec. 59. Section 41-2753, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2753. Competition with private enterprise by community colleges and universities; limitations; rules; complaints

A. Community colleges and universities under the jurisdiction of a state governing board shall not, unless specifically authorized by statute:

1. Provide to persons other than students, faculty, staff and invited guests goods, services or facilities that are practically available from private enterprise, unless the provision of the goods, service or facility offers a valuable educational or research experience for students as a part of their education or fulfills the public service mission of the community college or university. This paragraph does not apply to sponsoring or providing facilities for recreational, cultural and athletic events or to facilities providing food services and sales.

2. Enter competitive bidding for rendering any goods or services unless a clear educational or research advantage would accrue to this state by the community college or university rendering the goods or services. Any such bid shall fairly and fully allocate all direct and indirect costs unless the funding agency or sources provide for or require all bidders to use a specific procedure or formula for allocating costs.

3. Provide to students, faculty, staff or invited guests goods, services or facilities that are practically available from private enterprise except as authorized by the state governing board.

4. Provide goods, services or facilities for or through another state agency or a local agency, including by intergovernmental or interagency agreement, which, if provided directly by the contractor, would be in violation of this section or section 41‑2752.

B. A The state governing board may adopt and implement rules or policies, as appropriate, to provide for the disposal by sale of products and by‑products which are an integral part of research or instruction conducted by community colleges and universities under its jurisdiction if the products and by‑products are not sold to a retailer or sold at retail to the public by the particular community college or university unless the sale is an integral part of the particular research project or instructional program or there is no other practical way of disposing by sale of the products or by‑products, and if the products or by‑products are sold at their market value.

C. A The state governing board shall adopt and implement rules or policies, as appropriate, to:

1. Regulate community college and university competition with private enterprise and ensure compliance with this section.

2. Regulate use of community college and university facilities by students, faculty, staff, invited guests and the general public.

3. Provide procedures for promptly hearing and resolving complaints lodged under this article relating to community colleges and state universities under the jurisdiction of the a state governing board. Such procedures shall include provisions for an expedited hearing process if it is determined the alleged competition may cause severe financial hardship on the person filing the complaint.

D. Any person aggrieved by a violation of this section may file a complaint with the state governing board. The state governing board shall hear complaints made pursuant to this section within sixty days and shall render its decision within thirty days after the hearing. A person does not have standing to challenge violations of this section in the courts of this state until the person has first made a complaint to the board and has received the board's decision.

E. This section does not apply to:

1. The Arizona health sciences center operated by the university of Arizona, except in those cases in which the health sciences center provides prosthetic or medical devices, or services related to such devices, and a surgical or medical procedure is not involved in the application of the device.

2. The provision of free medical services or equipment to indigents in association with a community service health program.

3. Public service radio and television stations licensed to the state governing boards or to community colleges and universities under their jurisdiction.

4. Skill centers operated by the community college districts. END_STATUTE

Sec. 60. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3017.01, to read:

START_STATUTE41-3017.01. State board of directors for community colleges; termination July 1, 2017

A. The state board of directors for community colleges terminates on July 1, 2017.

B. title 15, chapter 12, article 2 is repealed on January 1, 2018. END_STATUTE

Sec. 61. Section 41-3501, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3501. Definitions

In this chapter, unless the context otherwise requires:

1. "Agency" means the government information technology agency.

2. "Budget unit" means a department, commission, board, institution or other agency of the state receiving, expending or disbursing state funds or incurring obligations of the state, including the Arizona board of regents and the state board of directors for community colleges but excluding the universities under the jurisdiction of the Arizona board of regents, and the community college districts colleges under their respective jurisdictions and the legislative or judicial branches.

3. "Committee" means the information technology authorization committee.

4. "Director" means the director of the agency.

5. "Disaster recovery" means the measures required to mitigate the loss of information technology capability.

6. "Information technology" means all computerized and auxiliary automated information processing, telecommunications and related technology, including hardware, software, vendor support and related services, equipment and projects. END_STATUTE

Sec. 62. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 42-5029, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5029. Remission and distribution of monies; definition

A. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all revenues collected under this article and articles 4, 5 and 8 of this chapter pursuant to section 42‑1116, separately accounting for:

1. Payments of estimated tax under section 42‑5014, subsection D.

2. Revenues collected pursuant to section 42‑5070.

3. Revenues collected under this article and article 5 of this chapter from and after June 30, 2000 from sources located on Indian reservations in this state.

4. Revenues collected pursuant to section 42‑5010, subsection G and section 42‑5155, subsection D.

B. The department shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account. The department shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42‑5010, 42‑5164, 42‑5205 and 42‑5353. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and articles 4, 5 and 8 of this chapter.

C. On notification by the department, the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42‑5164, 42‑5205 and 42‑5353, after deducting warrants drawn against the account pursuant to sections 42‑1118 and 42‑1254.

D. Of the monies designated as distribution base the department shall:

1. Pay twenty‑five per cent to the various incorporated municipalities in this state in proportion to their population to be used by the municipalities for any municipal purpose.

2. Pay 38.08 per cent to the counties in this state by averaging the following proportions:

(a) The proportion that the population of each county bears to the total state population.

(b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42‑5164, subsection B, section 42‑5205, subsection B and section 42‑5353 bear to the total distribution base monies collected under this article, section 42‑5164, subsection B, section 42‑5205, subsection B and section 42‑5353 throughout the state for the calendar month.

3. Pay an additional 2.43 per cent to the counties in this state as follows:

(a) Average the following proportions:

(i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid. Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item.

(ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42‑5164, subsection B, section 42‑5205, subsection B and section 42‑5353 bear to the total distribution base monies collected under this article, section 42‑5164, subsection B, section 42‑5205, subsection B and section 42‑5353 throughout the state for the calendar month.

(b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the department shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and shall pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection.

4. After any distributions required by sections 42‑5030, 42‑5030.01, 42‑5031, 42‑5032 and 42‑5032.01, and after making any transfer to the water quality assurance revolving fund as required by section 49‑282, subsection B, credit the remainder of the monies designated as distribution base to the state general fund. From this amount:

(a) The legislature shall annually appropriate to:

(i) The department of revenue sufficient monies to administer and enforce this article and articles 5 and 8 of this chapter.

(ii) The department of economic security monies to be used for the purposes stated in title 46, chapter 1.

(iii) The firearms safety and ranges fund established by section 17‑273, fifty thousand dollars derived from the taxes collected from the retail classification pursuant to section 42‑5061 for the current fiscal year.

(b) The state treasurer shall transfer to the tourism fund an amount equal to the sum of the following:

(i) Three and one‑half per cent of the gross revenues derived from the transient lodging classification pursuant to section 42‑5070 during the preceding fiscal year.

(ii) Three per cent of the gross revenues derived from the amusement classification pursuant to section 42‑5073 during the preceding fiscal year.

(iii) Two per cent of the gross revenues derived from the restaurant classification pursuant to section 42‑5074 during the preceding fiscal year.

E. If approved by the qualified electors voting at a statewide general election, all monies collected pursuant to section 42‑5010, subsection G and section 42‑5155, subsection D shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and shall not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows:

1. If there are outstanding state school facilities revenue bonds pursuant to title 15, chapter 16, article 7, each month one‑twelfth of the amount that is necessary to pay the fiscal year's debt service on outstanding state school improvement revenue bonds for the current fiscal year shall be transferred each month to the school improvement revenue bond debt service fund established by section 15‑2084. The total amount of bonds for which these monies may be allocated for the payment of debt service shall not exceed a principal amount of eight hundred million dollars exclusive of refunding bonds and other refinancing obligations.

2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15‑1648 to be distributed among the universities for the purpose of investment in technology and research‑based initiatives.

3. After the transfer of monies pursuant to paragraph 1 of this subsection, three per cent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15‑1472 for the purpose of investment in workforce development programs.

4. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one‑twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15‑1472, subsection D, paragraph 2 if it were a community college district under the jurisdiction of the state board of directors for community colleges shall be distributed each month to the treasurer or other designated depository of a qualifying Indian tribe. Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15‑1472, subsection B. For the purposes of this paragraph, "qualifying Indian tribe" has the same meaning as defined in section 42‑5031.01, subsection D.

5. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one‑twelfth of the following amounts shall be transferred each month to the department of education for the increased cost of basic state aid under section 15‑971 due to added school days and associated teacher salary increases enacted in 2000:

(a) In fiscal year 2001‑2002, $15,305,900.

(b) In fiscal year 2002‑2003, $31,530,100.

(d) In fiscal year 2004‑2005, $66,957,200.

(e) In fiscal year 2005‑2006 and each fiscal year thereafter, $86,280,500.

6. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15‑154 and two hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments to the department of education to be used for the character education matching grant program as provided in section 15‑154.01.

7. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no more than seven million dollars may be appropriated by the legislature each fiscal year to the department of education to be used for accountability purposes as described in section 15‑241 and title 15, chapter 9, article 8.

8. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15‑241.

9. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty‑five million dollars shall be transferred each fiscal year to the state general fund to reimburse the general fund for the cost of the income tax credit allowed by section 43‑1072.01.

10. After the payment of monies pursuant to paragraphs 1 through 9 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15‑977. The monies shall be allocated as follows in the manner prescribed by section 15‑977:

(a) Forty per cent shall be allocated for teacher compensation based on performance.

(b) Twenty per cent shall be allocated for increases in teacher base compensation and employee related expenses.

F. The department shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund, subject to any distribution required by section 42‑5030.01.

G. Notwithstanding subsection D of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or articles 5 and 8 of this chapter and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. The department shall notify the state treasurer of that amount plus the proportionate share of additional allocated costs required to be paid to the taxpayer. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by one thirty‑sixth of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten per cent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered.

H. On receiving a certificate of default from the greater Arizona development authority pursuant to section 41‑1554.06 or 41‑1554.07 and to the extent not otherwise expressly prohibited by law, the state treasurer shall withhold from the next succeeding distribution of monies pursuant to this section due to the defaulting political subdivision the amount specified in the certificate of default and immediately deposit the amount withheld in the greater Arizona development authority revolving fund. The state treasurer shall continue to withhold and deposit the monies until the greater Arizona development authority certifies to the state treasurer that the default has been cured. In no event may the state treasurer withhold any amount that the defaulting political subdivision certifies to the state treasurer and the authority as being necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision that were issued before the date of the loan repayment agreement or bonds and that have been secured by a pledge of distributions made pursuant to this section.

I. Except as provided by sections 42‑5033 and 42‑5033.01, the population of a county, city or town as determined by the most recent United States decennial census plus any revisions to the decennial census certified by the United States bureau of the census shall be used as the basis for apportioning monies pursuant to subsection D of this section.

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 and that is a political subdivision of this state. END_STATUTE

Sec. 63. Section 42-5029.01, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5029.01. Qualifying Indian tribe; report; accounting procedures; definitions

A. To qualify for funding pursuant to section 42‑5029, subsection E, paragraph 4, a qualifying Indian tribe shall report its full‑time equivalent student enrollment, as calculated under section 15‑1466.01, in the preceding fiscal year to the auditor general state board of directors for community colleges by June 30 each year and shall comply with the same accounting procedures and practices prescribed by the auditor general state board of directors for community colleges for calculating full‑time equivalent student enrollment for community college districts colleges under its jurisdiction. A qualifying Indian tribe may report to the state board of education the number of students simultaneously enrolled in a course for both high school and community college credit.

B. For the purposes of this section:

1. "Community college" includes any college owned, operated or chartered by a qualifying Indian tribe.

2. "Qualifying Indian tribe" has the same meaning prescribed in section 42‑5031.01, subsection D. END_STATUTE

Sec. 64. Section 44-7002, Arizona Revised Statutes, is amended to read:

START_STATUTE44-7002. Definitions

In this chapter, unless the context otherwise requires:

1. "Agreement" means the bargain of the parties in fact, as found in their language or inferred from other circumstances and from rules, regulations and procedures that are given the effect of agreements under laws otherwise applicable to a particular transaction.

2. "Automated transaction" means a transaction that is conducted or performed, in whole or in part, by electronic means or electronic records and in which the acts or records of one or both parties are not reviewed by an individual in the ordinary course in forming a contract, performing under an existing contract or fulfilling an obligation that is required by the transaction.

3. "Computer program" means a set of statements or instructions to be used directly or indirectly in an information processing system in order to bring about a certain result.

4. "Contract" means the total legal obligation resulting from the parties' agreement as affected by this chapter and any other applicable law.

5. "Electronic" means relating to technology that has electrical, digital, magnetic, wireless, optical or electromagnetic capabilities or similar capabilities.

6. "Electronic agent" means a computer program or an electronic or other automated means that is used independently to initiate an action or respond to electronic records or performances, in whole or in part, without review or action by an individual.

7. "Electronic record" means a record that is created, generated, sent, communicated, received or stored by electronic means.

8. "Electronic signature" means an electronic sound, symbol or process that is attached to or logically associated with a record and that is executed or adopted by an individual with the intent to sign the record.

9. "Governmental agency" means an executive, legislative or judicial agency, department, board, commission, authority, institution or instrumentality of the federal government or a state or of a county or municipality or other political subdivision of a state.

10. "Information" means data, text, images, sounds, codes, computer programs, software or databases or similar items.

11. "Information processing system" means an electronic system for creating, generating, sending, receiving, storing, displaying or processing information.

12. "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency or public corporation or any other legal or commercial entity.

13. "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and that is retrievable in perceivable form.

14. "Security procedure" means a procedure that is employed to verify that an electronic signature, record or performance is that of a specific person or to detect changes or errors in the information in an electronic record. Security procedure includes a procedure that requires the use of algorithms or other codes, identifying words or numbers or encryption, callback or other acknowledgment procedures.

15. "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States. State includes an Indian tribe or band or Alaskan native village that is recognized by federal law or formally acknowledged by another state.

16. "State agency" means any department, commission, board, institution or other agency of the state that receives, expends or disburses state funds or incurs obligations of the state, including the Arizona board of regents and the state board of directors for community colleges but excluding the universities under the jurisdiction of the Arizona board of regents, and the community college districts colleges under their respective JURISDICTIONS and the legislative or judicial branches.

17. "Transaction" means an action or set of actions occurring between two or more persons relating to the conduct of business, commercial or governmental affairs. END_STATUTE

Sec. 65. Section 49-550, Arizona Revised Statutes, is amended to read:

START_STATUTE49-550. Violations; classification; civil penalty

A. Except as provided in subsection B of this section, any person who violates any provision of this article or any rule of the director adopted under this article is guilty of a class 2 misdemeanor.

B. Any person who makes or issues any imitation or counterfeit of an official certificate or certificates of inspection or waiver is guilty of a class 5 felony.

C. Any person who knowingly demands or collects a fee for the inspection of a vehicle other than the fee fixed by the director for the inspection of vehicles of the same class is guilty of a class 2 misdemeanor.

D. Any person who makes or provides to the director the written statement required to obtain a certificate of waiver pursuant to section 49‑542, subsection L, knowing the statement to be false, is guilty of a class 2 misdemeanor.

E. In addition to any other criminal penalty provided by law, a person who owns a vehicle and whose residence is located outside of area A or area B but who commutes in that vehicle to the driver's principal place of employment located within area A or area B without complying with this article or who violates section 15‑1444, subsection D C or section 15‑1627 is subject to a civil penalty of one hundred dollars for a first violation of this subsection. For a second violation of this subsection within a one year period, a court shall impose a civil penalty of three hundred dollars. A court shall impose a civil penalty of twenty‑five dollars for a first time violation of this subsection if the owner presents evidence that the vehicle is in compliance with this article.

F. In addition to any other criminal penalty provided by law, any dealer who is licensed to sell motor vehicles pursuant to title 28, chapter 10, whose place of business is located in area A or area B and who delivers a vehicle that does not conform with this section is subject to a civil penalty of one thousand dollars for a first violation of this subsection. For the second violation of this subsection within a one year period, a court shall impose a civil penalty of two thousand dollars and a suspension of the dealer's license for a period of ninety days. END_STATUTE

Sec. 66. Repeal

The following are repealed:

1. Laws 2002, chapter 330, sections 58, 59, 60 and 62.

2. Laws 2003, chapter 264, section 38.

Sec. 67. Transfer of powers; effect

A. This act does not alter the effect of any actions that were taken by or impair the valid obligations of any community college district in this state before the effective date of this act.

B. Administrative rules and policies that were adopted by a community college district governing board before the effective date of this act continue in effect after the effective date of this act, except that if the state board of directors for community colleges adopts any rule that conflicts with a rule or policy adopted by a community college district governing board, the conflicting rule or policy adopted by a community college district governing board is void.

C. On the effective date of this act, all real and personal property, fixtures and records that are located on a community college campus in this state are transferred from the community college district governing board of that community college to the state board of directors for community colleges.

Sec. 68. Assignment of interest in real property

A. The governing board of each community college district shall assign to the state board of directors for community colleges all rights, title and interest in real property situated in each community college district that it has purchased, received, held and taken leases of. The executive director of the state board of directors for community colleges shall take all necessary steps to effect these assignments before July 1, 2008.

B. The governing board of each community college district shall assign to the state board of directors for community colleges all rights, title and interest in real property it has purchased, received, held and taken leases of that is situated in an unorganized community college district and that is served by a community college district. The executive director of the state board of directors for community colleges shall take all necessary steps to effect these assignments before July 1, 2008.

Sec. 69. Covenants on existing general obligation or revenue bonds

Any and all obligations or covenants of community college districts with respect to any general obligation bonds, revenue bonds, leases, lease‑purchase agreements or any related documents or obligations, including any pledges of revenue for those bonds or leases, become the obligations and covenants of the state board of directors for community colleges. The state board of directors for community colleges may take any and all actions under financing arrangements the governing board of the community college district could have taken and shall discharge all obligations and duties of the community college district thereunder.

Sec. 70. Vocational education; community colleges; transition

The state board of education shall minimize administrative costs associated with vocational education and shall ensure that the state board of directors for community colleges receives from this state the maximum amount of federal monies available to this state under the vocational education act of 1917, as amended, and the Carl D. Perkins vocational education act of 1984, as amended by the Carl D. Perkins vocational and applied technological education act amendments of 1990.

Sec. 71. Initial terms of members of the state board of directors for community colleges

A. Notwithstanding section 15-1421, Arizona Revised Statutes, as added by this act, the initial terms of the appointed members of the state board of directors for community colleges are:

1. Three terms ending January 1, 2008.

2. Three terms ending on the third Monday in January, 2009.

3. Three terms ending on the third Monday in January, 2010.

4. Three terms ending on the third Monday in January, 2011.

5. Three terms ending on the third Monday in January, 2012.

B. The governor shall make all subsequent appointments as prescribed by statute.

Sec. 72. Purpose

Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the state board of directors for community colleges to provide for the government, oversight, planning and coordination of the community college system in areas of statewide concern.

Sec. 73. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, section 42-5029, Arizona Revised Statutes, as amended by this act, is effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.