ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: ED DP 6-4-0-0


HB 2808: schools; operation; improvements

Sponsor: Representative Udall, LD 25

House Engrossed

Overview

Establishes the Arizona Achievement District, Expanding Access to Excellent Schools Program, Operation Excellence School Improvement Program and related funds to support the expansion of high quality schools and to improve academic outcomes and opportunities for Arizona students.  

History

The Arizona Department of Education (ADE) is required to annually compile an annual achievement profile that reflects the achievement for each public school and local educational agency (LEA) according to prescribed academic and educational performance indicators. The State Board of Education (SBE) is then required to use the annual achievement profile to assign an A-F letter grade for the public school or LEA (A.R.S. § 15-241).

Currently, if a school is assigned a D letter grade, the school district governing board or charter holder must develop an improvement plan for the school. If a school receives a D letter grade for three consecutive years, the school is assigned an F letter grade. The Superintendent of Public Instruction (SPI) and the county educational service must collaborate to assign a solutions team to a school assigned a D or F letter grade based on academic need and available resources (A.R.S. § 15-241.02).

The Arizona Public School Credit Enhancement Program assists achievement district schools (A letter grade schools meeting prescribed criteria that qualify to participate in the program) in obtaining more favorable financing by guaranteeing the payment of principal and interest on guaranteed financings issued by or on behalf of achievement district schools. Currently, this program is overseen by its own board and has its own respective fund (A.R.S. Title 41, Chapter 56, Articles 10 and 11).

Provisions

Arizona Achievement District (Achievement District)

1.   Establishes the Achievement District within the Arizona Department of Administration (ADOA) to support the expansion of high quality public schools for Arizona students. (Sec. 8)

2.   Details the Achievement District consists of the Arizona Public School Credit Enhancement Program and the Expanding Access to Excellent Schools Program. (Sec. 8)

3.   Creates the Achievement District Board (Achievement Board) to govern the Achievement District and outlines its membership. (Sec. 8)

4.   Instructs the Achievement Board to establish an application process, application forms and selection criteria for an Arizona charter school or district school and out-of-state charter school operators to qualify as an Achievement District school. (Sec. 8)

5.   Details the requirements a district school, charter school or out-of-state charter school operator must meet to qualify as an Achievement District school. (Sec. 8):

6.   Maintains a public school that was approved as an Achievement District school before this act's effective date is still an Achievement District school. (Sec. 11)

7.   Prohibits an Achievement District school that is assigned a B, C, D or F letter grade in any combination for two consecutive years from remaining a member of the Achievement District. (Sec. 8)

8.   Details evaluation timeframe requirements for the Achievement Board regarding Achievement District school applications. (Sec. 8)

9.   Enables an Achievement District school to apply to participate in the Arizona Public School Credit Enhancement Program and Expanding Access to Excellent Schools Program. (Sec. 8)

10.  Instructs the Division of School Facilities to:

a)   Certify and audit the data regarding vacant and partially used buildings provided by school districts regarding schools that are assigned a D or F letter grade; and

b)   Provide any data or assistance regarding potentially available space at the request of the Achievement Board. (Sec. 5, 8)

11.  Permits a charter school that is a member of the Achievement District to expand pursuant to an expedited process established by the charter sponsor. (Sec. 1)

12.  Exempts the Achievement Board from rulemaking requirements for one year after this act's effective date. (Sec. 12)

13.  Defines Achievement District school. (Sec. 9)

14.  Repeals existing statute relating to achievement district schools. (Sec. 7)

Expanding Access to Excellent Schools

Expanding Access to Excellent Schools Program (Excellent Schools Program)

15.  Establishes the Excellent Schools Program to support the expansion of high quality schools for Arizona students. (Sec. 9)

16.  Directs the Achievement District Board to establish procedures to administer the Excellent Schools Program. (Sec. 9)

17.  Establishes the Arizona Expanding Excellence Fund (Excellence Fund) to seed high quality schools in Arizona and that is administered by the Achievement Board. (Sec. 9)

18.  States the Excellence Fund:

a)   Consists of legislative appropriations, gifts, grants, donations and any other monies; and

b)   Monies are continuously appropriated and are exempt from lapsing. (Sec. 9)

19.  Permits the Achievement Board to use up to 3% of Excellence Fund monies. (Sec. 9)

20.  Allows an Achievement District school or a school district that is required to partner with an Achievement District school or to change operations of a failing school to apply to the Excellent Schools Program to request funding from the Excellence Fund on a onetime basis to seed the operations of a new district partnership school or fresh start school. (Sec. 9)

21.  States that:

a)   An Achievement District school or a school district that is partnering with an Achievement District school may apply to the Achievement Board for up to $2,000 per student to seed the operations of a district partnership school or fresh start school; and

b)   ADOA, after approval by the Achievement Board, is to distribute Excellence Fund monies to eligible schools. (Sec. 9)

22.  Prohibits an Achievement District school or a school district that is partnering with an Achievement District school from receiving allocations from the Excellence Fund more than once for any one district partnership school or fresh start school. (Sec. 9)

23.  Specifies allocations from the Excellence Fund for district partnership schools and fresh start schools are to be based on enrollment. (Sec. 9)

24.  Requires the Achievement Board to submit an annual report by December 1 to specified entities that contains information regarding the Excellence Fund and the Excellent Schools Program. (Sec. 9)

District Partnership Schools

25.  Instructs the Achievement Board to develop a process for establishing district partnership schools. (Sec. 9)

26.  States the school district governing board of a D or F letter grade school may:

a)   Approach the Achievement Board with a preselected Achievement District school; or

b)   Request the Achievement Board select an Achievement District school. (Sec. 9)

27.  Details the information a contractual agreement to establish a district partnership school must contain, including enrollment, funding, management, transportation, term and building provisions. (Sec. 9)

28.  Defines district partnership school. (Sec. 9)

Fresh Start School

29.  Requires the Achievement Board to develop a process to approve a fresh start school to replace a D or F letter grade school with a high quality school. (Sec. 9)

30.  States an approved fresh start school is the school of record. (Sec. 9)

31.  Allows a fresh start school to be started by an Achievement District school in a vacant or partially used building of a school district that has either voluntarily made the building available for use or has been compelled by law to deploy the building for public use. (Sec. 9)

32.  Prohibits a charter school from operating or generating funding as a fresh start school until the charter sponsor approved the new fresh start school. (Sec. 9)

33.  Mandates an Achievement District school receive a 25-year triple net lease or purchase the building at market rate when using a school district building for a fresh start school. (Sec. 9)

34.  Exempts the selling or leasing of a building to an Achievement District school for a fresh start school from voter authorization. (Sec. 9)

35.  Prevents a fresh start school from leasing or subletting any building in which the fresh start school operates for noneducational purposes. (Sec. 9)

36.  Directs the Achievement Board to complete an initial three-year performance review followed by subsequent five-year performance reviews for applicable lease agreements. (Sec. 9)

37.  Asserts only the Achievement Board may terminate or revoke leases. (Sec. 9)

38.  Mandates a fresh start school reserve space for and admit any student who resides within the previous boundaries of the D or F letter grade school. (Sec. 9)

39.  Defines fresh start school. (Sec. 9)

Operation Excellence School Improvement Program (Operation Excellence Program)

40.  Establishes, beginning FY 2023, the Operation Excellence Program to improve academic outcomes and opportunities for all students in eligible schools. (Sec. 10)

41.  Creates the School Achievement Improvement Fund (Improvement Fund) and states:

a)   It is administered by ADE at the direction of SBE:

b)   It consists of legislative appropriations, gifts, grants, donations and any other monies; and

c)   Monies are continuously appropriated and exempt from lapsing except that all monies remaining on December 31, 2028 revert to the state General Fund (GF). (Sec. 10)

42.  Requires schools that receive funding from the Improvement Fund to prioritize these resources to implement evidence-based, proven strategies to increase academic proficiency and growth. (Sec. 10)

43.  Instructs SBE, beginning January 1, 2023, to designate the following schools as Operation Excellence schools:

a)   Any school operated by a school district or charter holder that received a D or F letter grade during FYs 2019 and 2022; and

b)   Any school operated by a school district or charter holder that has been identified as a school requiring comprehensive support and improvement for low achievement pursuant to federal law in the prior or most recent fiscal year. (Sec. 10)

44.  Allows a school to opt into Operation Excellence if:

a)   The school received a C, D or F letter grade during FYs 2019 and 2022; and

b)   Has at least 60% of enrolled students eligible for free or reduced-price lunches or an equivalent measure. (Sec. 10)

45.  Requires, by January 30, 2023, an Operation Excellence school or school opting to participate in the Operation Excellence Program to notify SBE of its determination or intent to participate. (Sec. 10)

46.  Stipulates a school designated as an Operation Excellence school must:

a)   Engage in targeted school improvement;

b)   Select to participate in either a district partnership school or fresh start school; or

c)   Close or consolidate. (Sec. 10)

47.  Specifies a school may not select to initiate a district partnership school or fresh start school until the Achievement District Board develops approval processes. (Sec. 10)

48.  States a participating charter school is not immune or protected against the charter school's sponsor revoking its charter during its participation. (Sec. 10)

49.  Instructs ADE, for FYs 2024, 2025 and 2026 and at the direction of SBE, to distribute $150 per currently enrolled student from the Improvement Fund to school districts and charter schools that have selected to engage in targeted school improvement. (Sec. 10)

50.  Specifies that a school eligible to receive funding for the small school weight must receive at least $30,000 in total funding. (Sec. 10)

51.  Prohibits schools that have selected to participate in a district partnership school or fresh start school from receiving Improvement Fund monies. (Sec. 10)

52.  Requires Improvement Fund monies to be:

a)   Separately accounted for in a school's annual financial report; and

b)   Spent at and for the benefit of a qualifying school site. (Sec. 10)

53.  Specifies when funding is to be disbursed and qualifications for the disbursement of funding for participating schools. (Sec. 10)

54.  Requires, by March 1, 2023, a school district or charter holder that opts into participating to:

a)   Submit an improvement plan to improve student outcomes to SBE; and

b)   Identify a mentor who can assist with academic achievement. (Sec. 10)

55.  Details requirements for a mentor. (Sec. 10)

56.  Instructs SBE, by January 1, 2023, to identify approved independent school improvement partners to be included on a partner network list. (Sec. 10)

57.  Details the requirements an independent school improvement expert must meet to be awarded a contract by SBE. (Sec. 10)

58.  Requires an Operation Excellence school district governing board or charter holder of a charter school that selects to participate in targeted school improvement to establish an Operation Excellence committee composed of outlined members. (Sec. 10)

59.  Requires an Operation Excellence committee to:

a)   Submit an improvement plan to SBE by March 1, 2023 to improve student outcomes; and

b)   Select an approved school improvement partner from the partner network list to implement the improvement plan. (Sec. 10)

60.  Directs SBE to assist an Operation Excellence school in:

a)   Collecting and recommending changes to improve student achievement data; and

b)   Monitoring implementation of and providing support for the improvement plan. (Sec. 10)

61.  Allows, with approval from SBE, a participating school to submit a request to cancel a contract with an independent school improvement partner and select a different independent school improvement partner. (Sec. 10)

62.  Stipulates if a school district has an existing improvement plan, the Operation Excellence improvement plan must align with or expand on the existing improvement plan. (Sec. 10)

63.  Directs SBE to annually review each improvement plan and require modifications. (Sec. 10)

64.  Mandates Operation Excellence monies be withheld until an improvement plan or report is submitted. (Sec. 10)

65.  Authorizes SBE to adopt rules to establish an appeals process for a school that does not receive approval of its improvement plan. (Sec. 10)

66.  Directs, by June 1 annually, each participating school to submit a report to SBE that describes how the improvement plan has improved student academic achievement. (Sec. 10)

67.  Instructs SBE, by October 1 of 2024, 2025 and 2026, to compile each participating school's report and submit a compiled report to specified entities. (Sec. 10)

68.  Requires SBE, by December 1, 2027, to submit a final report on the Operation Excellence Program to specified entities. (Sec. 10)

69.  Instructs SBE, for any district school that participated in the Operation Excellence Program that does not achieve at least a C letter grade in FY 2026, to do one of the following:

a)   Require the school to initiate either a district partnership school or a fresh start school;

b)   Both:

i.   Direct the SPI and the county educational service agency to collaborate to assign a solutions team; and

ii. Hold a public hearing to provide an alternative operation plan for the school; or

c)   Require the school district to close or consolidate the school if SBE determines there are higher achieving public schools nearby that have adequate capacity to serve the students affected by the school closure or consolidation. (Sec. 10)

70.  Allows SBE, if a district school does not achieve at least a C letter grade in FY 2026 but has demonstrated significant improvement, to provide the school, at most, two additional school years to improve the school's letter grade to a C or better. (Sec. 10)

71.  Details requirements for a district school that does not achieve at least a C letter grade after the two additional school years. (Sec. 10)

72.  Instructs SBE to work with school improvement experts that have proven to be successful in Arizona to develop an evidence-based model framework for school improvement. (Sec. 10)

73.  Appropriates $58,000,000 from the state GF in FYs 2023, 2024 and 2025 to the Improvement Fund. (Sec. 13)

74.  Allows SBE to use up to $1,000,000 in each of the amounts appropriated in FYs 2023, 2024 and 2025 to administer the Operation Excellence Program. (Sec. 13)

75.  Appropriates seven full-time equivalent positions from the state GF in each of FYs 2023, 2024 and 2025 to SBE. (Sec. 13)

76.  Repeals the Operation Excellence Program and the Improvement Fund on January 1, 2029. (Sec. 10)

School Accountability

77.  Instructs SBE, beginning January 1, 2029, to require any district school that is assigned a D or F letter grade for three consecutive years to initiate either a district partnership school or a fresh start school. (Sec. 3)

78.  States if SBE, in consultation with the school district, determines that a district partnership school or a fresh start school is not practicable, SBE must do either of the following:

a)   Both:

i.   Direct the SPI and the county educational service agency to collaborate to assign a solutions team; and

ii. Hold a public hearing to provide an alternative operation plan for the school; or

b)   Require the school district to close or consolidate the school if SBE determines there are higher achieving public schools nearby that have adequate capacity to serve the students affected by the school closure or consolidation. (Sec. 3)

79.  Details meeting and determination requirements for SBE if SBE and the school district opt to hold a public hearing to provide an alternative operation plan for the school. (Sec. 4)

80.  Specifies that if a charter school is assigned an F letter grade, the charter school's sponsor must take action to restore the charter school to acceptable performance pursuant to a process established by the charter sponsor or revoke the charter school's charter. (Sec. 4)

Miscellaneous

81.  Contains a retroactivity clause of July 1, 2022. (Sec. 14)

82.  ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☒ Fiscal NoteMakes conforming changes. (Sec. 3, 6)

83.  Makes technical changes. (Sec. 1, 2, 3, 5)

84.   

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87.                    HB 2808

88.  Initials CH Page 0 House Engrossed

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