SB1744 - 571R

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

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

START_STATUTE15-185. Charter schools; financing; civil penalties; transportation; definition

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

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

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

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

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

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

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

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

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

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

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

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

4. Equalization assistance for the charter school shall be determined by adding the amount of the base support level and charter additional assistance. The amount of the charter additional assistance is $2,090.10 $2,131.90 per student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and $2,435.97 $2,484.69 per student count in grades nine through twelve.

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

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

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

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

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

1. Equalization assistance shall not be less than zero.

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 2. Title 15, chapter 2, article 1, Arizona Revised Statutes, is amended by adding new sections 15-217, 15-217.01 and 15-217.02, to read:

START_STATUTE15-217. Performance measures; adult education and workforce development programs

A. The state board of education, in cooperation with the office of economic opportunity, shall adopt performance measures to evaluate the performance of adult education and workforce development programs established by sections 15-217.01, 15-217.02 and 41-5421. The performance measures must include:

1. Measurements of adult learner progress toward earning a high school diploma or high school equivalency diploma.

2. The number of high school diplomas or high school equivalency diplomas earned.

3. The number of industry-recognized credentials earned.

4. The number of adult learners or graduates who have matriculated at an institution of higher learning or postsecondary educational institution.

5. The number of adult learners or graduates who have newly acquired employment, who are now earning higher wages or who have obtained a better job or a promotion.

6. Other relevant measures as adopted by the state board of education, in cooperation with the office of economic opportunity.

B. The performance measures adopted by the state board of education pursuant to this section must both:

1. Allow for a comparable evaluation across adult education and workforce development programs.

2. Consider the variety of learning levels of adult learners who are entering the programs. END_STATUTE

START_STATUTE15-217.01. Community college adult education workforce development program; fund; program schools; annual reports

A. The community college adult education workforce development program is established within the department of education to provide adult learners with preparation for and access to integrated education and training as defined in the workforce innovation and opportunity act (P.L. 113-128; 128 Stat. 1425; 29 United States Code section 3272) and additional study and support services.

B. The department shall accept applications from program applicants beginning on July 1 and not later than June 30 of each year. The department shall determine whether each program applicant is eligible to participate in the program not later than six weeks after the department receives the program applicant's completed application. To be eligible to participate in the program, the program applicant must be a community college district that is established pursuant to section 15-1402, that provides high school diplomas or high school equivalency diplomas and that provides adult education and literacy activities that prepare adult learners for, or provide adult learners with access to, integrated education and training models, including workforce training, industry-recognized credentials, degree programs or workforce programs that are accredited by a regional accrediting body that is recognized by the United States department of education. If a program applicant is eligible pursuant to this subsection, the department shall distribute monies to the program applicant as prescribed in subsection D of this section.

C. A program school may receive monies pursuant to subsection D of this section for each adult learner who is a student in the program if the adult learner meets both of the following requirements:

1. Enrolls in a community college adult education program.

2. Pursues academic skills development related to adult education and literacy activities as defined in the workforce innovation and opportunity act.

D. The community college adult education workforce development program fund is established consisting of legislative appropriations and any other monies. The department shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department may use not more than five percent of the monies that are appropriated to the fund each year for the costs of administering the community college adult education workforce development program. Notwithstanding any other law, a program school shall be funded as follows:

1. The program school may receive up to $5,000 per full-time student in the program each fiscal year. Part-time students shall be funded in proportion to the number of enrolled courses or hours of instruction.

2. Each quarter, the department shall distribute fund monies to all program schools that meet the criteria prescribed in subsection B of this section in a proportional manner based on the number of adult learners each program school serves. The total amount distributed pursuant to this paragraph in any quarter may not exceed the sum of:

(a) One-fourth of the total amount that is allocated for program schools in the fiscal year.

(b) The amount of unspent monies, if any, that were allocated for program schools in a previous quarter.

E. A program school shall use monies received under this section to increase the program school's capacity to provide adult education and literacy activities that prepare adult learners for, or provide adult learners with access to, integrated education and training models that lead to industry-recognized training, industry-recognized credentials, a community college certificate or a community college degree. In addition to any monies received from the fund, a program school may accept and spend federal monies and private grants, gifts, contributions and devises to assist the program school in carrying out the purposes of this section. A portion of monies may be used for additional support services to ensure the success of adult learners in the program, including the following:

1. Transportation assistance for adult learners with a demonstrated need.

2. Child care services for dependents of adult learners while the adult learners are on-site.

3. College and career counseling.

4. Job placement assistance.

F. For each year that monies are appropriated by the legislature to the fund established by this section, on or before October 30, each participating community college shall submit a report regarding the community college adult education workforce development program to the department. The department shall compile the reports received from each participating community college and, on or before December 15 of each year, shall provide an annual report to the governor, the president of the senate, the speaker of the house of representatives and the state board of education and shall provide a copy of the report to the secretary of state. Each report must include, at a minimum, all of the following information for each participating community college for the preceding school year:

1. The number of adult learners enrolled in the program.

2. The completion rate of high school diplomas and high school equivalency diplomas earned by adult learners enrolled in the program.

3. The average progress of adult learners toward meeting completion criteria.

4. The number and type of industry-recognized credentials, community college certificates, community college degree credits and community college degrees earned by adult learners enrolled in the program.

5. A descriptive summary of the community college adult education workforce development program offered.

6. The number of adult learners who have newly acquired proficiency in the English language.

7. Information required for the performance measures adopted by the state board of education pursuant to section 15-217.

G. The department may request information from any program applicant or program school for the purposes of determining program eligibility and funding distributions pursuant to this section.

H. The department may develop a process to bring a program school into compliance or revoke the program school's authorization to participate in the program.END_STATUTE

START_STATUTE15-217.02. Continuing high school and workforce training program; service providers; program schools; requirements; exemptions; reporting; enrollment limits; rules

A. The state board of education shall establish a continuing high school and workforce training program that provides adult learners with alternative study services and that leads to the issuance of a high school diploma and industry-recognized credentials. The department of education shall administer the program. The state board of education shall authorize eligible service providers to participate in the continuing high school and workforce training program and to establish a program school in partnership with a school district or nonprofit charter school.

B. To be eligible to participate in the continuing high school and workforce training program, a service provider must meet both of the following:

1. Be a nonprofit corporation that is qualified as tax-exempt pursuant to section 501(c)(3) of the internal revenue code or be an adult education provider that is approved by the division of adult education within the department of education.

2. Demonstrate at least a ten-year history of providing workforce training and career services in this state to persons who are at least eighteen years of age and whose educational and training opportunities have been limited by educational disadvantages, disabilities or other barriers to education, such as lack of reliable and affordable transportation, lack of child care or food insecurity.

C. A high school diploma may be issued pursuant to this section only to an adult learner who meets all the graduation requirements of section 15-701.01 and the state board of education.

D. A program school shall meet all applicable legal requirements prescribed in this title for a public school, including requirements for student assessments and special education services and prohibitions against admission limits based on ethnicity, national origin, gender, income level, disabling condition, English language proficiency or athletic ability unless one of the following applies:

1. Program schools established under this section are expressly exempt from the legal requirement.

2. The state board of education determines that the legal requirement is not feasible.

3. The state board of education determines that the legal requirement is not applicable to the education of adult learners.

E. The following provisions of this title do not apply to program schools established under this section:

1. The English language proficiency assessment requirements under sections 15-756 and 15-756.05.

2. The residency record requirement under section 15-802.

3. The withdrawal form requirements under section 15-827 for any adult learner who has not attended another school in this state during the two years immediately preceding the adult learner's enrollment in the program school.

4. The school records requirements under section 15-828.

5. The letter grades assigned under section 15-241.

F. Each program school shall:

1. Exercise the program school's best effort to obtain confirmation of each adult learner's withdrawal from another school in this state, including requesting a student transcript or receiving verbal confirmation from an official of the school from which the adult learner withdrew.

2. Require an adult learner who enrolls in the program school to provide both:

(a) Verifiable documentation of the adult learner's residency in this state.

(b) Reliable proof of the adult learner's age, which may include an identification record issued by a state, federal or tribal government or a military identification card.

3. Administer an English language proficiency assessment that is accepted by universities or community colleges in this state.

G. Notwithstanding any other law, the department of education shall distribute monies to an approved program school as follows:

1. The program school shall receive $7,700 per full-time student enrolled in the program school. Part-time students shall be funded in proportion to the number of enrolled courses or hours of instruction.

2. The program school is eligible to receive funding for any adult learner regardless of age.

3. The program school is not eligible for any other school finance formula funding for adult learners enrolled in the program school, including any of the following:

(a) Transportation funding pursuant to section 15-945.

(b) Arizona online instruction funding pursuant to section 15-808.

(d) Additional assistance.

H. The department of education shall develop application procedures for the continuing high school and workforce training program. The service provider shall submit the application on behalf of the program school. An application submitted pursuant to this section must include all of the following:

1. A description of the service provider's partnership with a school district or nonprofit charter school.

2. A description of the program school's administrative structure, program activities, program staff, budget and specific curriculum that is aligned with the state academic standards.

3. The program school's academic calendar and a schedule describing the program school's length of school day, program sequence, multidisciplinary courses, pace and instructional activities, or any combination of these items.

4. Confirmation of the program school's location and a description of the program school's facility, including all of the following:

(a) Accessibility.

(b) Available classroom space.

(d) Health and safety requirements.

5. A description of specific academic, behavioral and emotional support services the service provider will offer to adult learners who enroll in the program school.

6. A description of the adult learner and family supports that the program school will provide at no cost to adult learners, including all of the following:

(a) On-site child care for dependents of enrolled adult learners while the adult learner is on-site.

(b) Local transportation assistance for adult learners with a verifiable need.

(d) Job placement assistance.

7. A description of the available counseling services that assist adult learners in overcoming barriers to educational success, including any of the following:

(a) Educational disadvantages.

(b) Homelessness.

(d) Disabling conditions.

8. A description of the career technical education instruction the program school will provide. Career technical education instruction and courses must lead to industry-recognized credentials or result in an adult learner earning course credits from a university or community college. A service provider may partner with a community college district or career technical education district to provide career technical education instruction.

9. A description of specific program outcomes, goals and metrics the program school will use to determine adult learner success.

10. The projected number of adult learners the program school will enroll.

I. The state board of education, in consultation with the department of education, shall evaluate applications submitted for the continuing high school and workforce training program and approve program schools that demonstrate, through evidence or other documentation, the ability to provide adult learners with the instruction and support that lead to a high school diploma and one or more industry-recognized credentials. The following apply to approval of a program school's participation in the continuing high school and workforce training program:

1. Initial approval shall be for a period of not more than two school years.

2. Renewal of approval shall be for a period of not more than four school years and is contingent on specific performance expectations, including student progression, graduation rates and earning of industry-recognized credentials.

3. If an approved service provider fails to meet any requirements of this section or any rules adopted by the state board, the state board shall immediately initiate a process to bring the program school into compliance or to revoke the program school's authorization to participate in the continuing high school and workforce training program.

J. An approved program school participating in the continuing high school and workforce training program shall annually report the following information to the department of education:

1. The number of adult learners enrolled in the program school.

2. The graduation rate of adult learners enrolled in the program school.

3. The average progress of adult learners toward meeting graduation requirements, including the average of each of the following:

(a) The amount of time that an adult learner participates in the program.

(b) the number of course credits earned by an adult learner.

4. The number and type of industry-recognized credentials earned by adult learners enrolled in the program school.

5. The number of adult learners who have newly acquired proficiency in the English language, as demonstrated by an assessment administered pursuant to subsection F, paragraph 3 of this section.

6. A descriptive summary of the academic, behavioral and emotional support services the service provider offers to adult learners in the program school.

7. The information required by the performance measures adopted by the state board of education pursuant to section 15-217.

K. On or before October 30, 2025 and each year thereafter, each program school shall submit a report regarding the continuing high school and workforce training program to the department of education.

L. On or before December 15, 2025 and each year thereafter, the department of education shall submit an annual report evaluating the effectiveness of the continuing high school and workforce training program to the governor, the president of the senate, the speaker of the house of representatives and the state board of education. The department shall provide a copy of the report to the secretary of state.

M. The state board of education may approve program schools with a total projected full-time enrollment of:

1. In fiscal year 2025-2026, not more than one hundred thirty.

2. Beginning in fiscal year 2026-2027, zero.

N. If the total full-time enrollment requested by approved program schools is greater than the amounts prescribed in subsection M of this section, the state board of education may direct the department of education to prioritize funding distribution to program schools demonstrating the highest performance. New program schools shall be prioritized based on the services and supports for adult learners as outlined in their applications.

O. A program school may not either:

1. Conduct advertising or marketing campaigns directed at students who are currently enrolled in a school district or charter school, or undertake any other activity that encourages students who are currently enrolled in a school district or charter school to stop attending school in order to enroll in a program school.

2. Enroll a student who was enrolled in a school district or charter school within the preceding thirty days.

P. The state board of education may adopt rules to carry out the purposes of this section.

Q. The department of education shall provide adequate staff support for the state board of education to comply with this section.END_STATUTE

Sec. 3. Title 15, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 15-249.08, to read:

START_STATUTE15-249.08. Ninth grade on-track grant program; school requirements; fund; exemption

A. The ninth grade on-track grant program is established in the department of education. The department shall administer the grant program and may adopt rules, policies and procedures to carry out the purposes of this section. The department shall:

1. Establish procedures for each of the following:

(a) A school district or charter school to apply for a grant.

(b) The department to evaluate the grant applications.

(c) The department to award grants to eligible school districts and charter schools for a term of more than one year and not more than five years.

2. The department shall ensure that the grant application and reporting requirements do not impose an undue burden on the school districts and charter schools.

3. Require each grant application to be approved by a majority vote of the school district governing board or charter school governing body, whichever applies, before the school district or charter school may submit the application to the department.

4. Award grants on a first-come, first-served basis to each eligible school district or charter school in an amount that is equal to at least $150 for each ninth grade student who is enrolled or projected to be enrolled in the school district or charter school during the term of the grant, except that the total number of ninth grade students who may be funded pursuant to this paragraph may not exceed:

(a) For grants that are awarded in fiscal year 2025-2026, twenty-two thousand six hundred fifty.

(b) For grants that are awarded beginning in fiscal year 2026-2027, zero.

5. Provide administrative support to grant recipients for implementing ninth grade on-track programs and services pursuant to this section.

B. Each school district or charter school that receives a grant award pursuant to subsection A of this section shall:

1. Use the monies to establish and expand programs, opportunities and strategies that help ninth grade students complete sufficient credits to be on track to graduate in four years, including all of the following:

(a) Providing real-time, accessibly formatted data regarding student grades, attendance and behavior to grade nine teachers and support staff.

(b) Allocating time for grade nine teachers and support staff to meet during the school day to review data and develop intervention strategies for at-risk students in grade nine. The school district or charter school shall maintain records of meetings held pursuant to this subdivision and provide those records to the department on request.

(c) Providing timely, actionable data for grade nine teachers, including providing access to data and developing teachers' data literacy.

(d) Creating highly effective grade nine success teams.

(e) Establishing foundational structures and conditions for grade nine on-track work.

(f) Establishing systems and processes to optimize operations of the grade nine success team.

(g) Systematizing grade nine success by recruiting and engaging all stakeholders.

(h) Creating and executing proactive and data-driven intervention and referral systems and processes.

(i) Implementing proactive and high-leverage intervention strategies.

(j) Creating and executing a comprehensive system of grade nine transition supports.

(k) Creating a personalized and supportive environment for students in grade nine.

(l) Providing early preparation for high school entry.

(m) Providing proactive supports to grade nine teachers and support staff.

(n) Implementing high quality instructional strategies and fair grading practices.

(o) Developing learning-centered professional communities and student-centered learning communities.

(p) Establishing a partnership with an organization that has at least five years of experience providing ninth grade on-track programs and services to school districts and charter schools to increase grade nine on-track rates.

2. On request from the department, provide any information necessary to demonstrate compliance with this section.

C. A school district or charter school that receives monies pursuant to this section shall supplement and not supplant programs, opportunities and strategies that help ninth grade students complete sufficient credits to be on track to graduate in four years.

D. For the purposes of this section, a student is deemed on track to graduate in four years if the student does both of the following:

1. Completes at least twenty-five percent of the credits required for the student to graduate from high school by the end of ninth grade.

2. Does not earn more than one letter grade of F, or the equivalent, in ninth grade.

E. The ninth grade on-track grant program fund is established consisting of legislative appropriations, gifts, grants and donations. The department shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall use monies in the fund to provide grants pursuant to subsection A of this section. END_STATUTE

Sec. 4. Title 15, chapter 3, article 1, Arizona Revised Statutes, is amended by adding section 15-305, to read:

START_STATUTE15-305. Accommodation schools; optional high school equivalency preparation instruction; requirements; definition

A. A county school superintendent may offer high school equivalency preparation instruction through an accommodation school to students who are enrolled in the accommodation school in grade twelve, subject to the following requirements:

1. Before providing high school equivalency preparation instruction pursuant to this section, the county school superintendent shall obtain written consent from the student's parent or, if emancipated, the student.

2. Each student who participates in high school equivalency preparation instruction pursuant to this section must also be enrolled in a career and technical education course or program that leads to a certification, license or credential.

B. For the purposes of this section, "high school equivalency preparation instruction" means instruction that prepares students to pass the equivalency test adopted by the state board of education pursuant to section 15-702. END_STATUTE

Sec. 5. Section 15-901, Arizona Revised Statutes, is amended to read:

START_STATUTE15-901. Definitions

A. In this title, unless the context otherwise requires:

1. "Average daily membership" means the total enrollment of fractional students and full-time students, minus withdrawals, of each school day through the first one hundred days or two hundred days in session, as applicable, for the current year. For the purposes of this paragraph, "withdrawals" means students who are formally withdrawn from schools or students who are absent for ten consecutive school days, except for excused absences identified by the department of education. For computation purposes, a student who is absent for nine or fewer consecutive school days, including the last day of the school year, is not a withdrawal and may not be subtracted from the total enrollment of fractional students and full-time students. For the purposes of this section, school districts and charter schools shall report student absence data to the department of education at least once every sixty days in session. For computation purposes, the effective date of withdrawal shall be retroactive to the last day of actual attendance of the student or excused absence. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subsection in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(a) "Fractional student" means:

(i) For common schools, a preschool child who is enrolled in a program for preschool children with disabilities of at least three hundred sixty minutes each week that meets at least two hundred sixteen hours over the minimum number of days or a kindergarten student who is at least five years of age before January 1 of the school year and enrolled in a school kindergarten program that meets at least three hundred fifty-six hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. In computing the average daily membership, preschool children with disabilities and kindergarten students shall be counted as one-half of a full-time student. For common schools, a part-time student is a student enrolled for less than the total time for a full-time student as defined in this section. A part-time common school student shall be counted as one-fourth, one-half or three-fourths of a full-time student if the student is enrolled in an instructional program that is at least one-fourth, one-half or three-fourths of the time a full-time student is enrolled as defined in subdivision (b) of this paragraph. The hours in which a student is scheduled to attend a common school during the regular school day shall be included in the calculation of the average daily membership for that student.

(ii) For high schools, a part-time student who is enrolled in less than four subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, in a recognized high school. The average daily membership of a part-time high school student shall be 0.75 if the student is enrolled in an instructional program of three subjects that meet at least five hundred forty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The average daily membership of a part-time high school student shall be 0.5 if the student is enrolled in an instructional program of two subjects that meet at least three hundred sixty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The average daily membership of a part-time high school student shall be 0.25 if the student is enrolled in an instructional program of one subject that meets at least one hundred eighty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The hours in which a student is scheduled to attend a high school during the regular school day shall be included in the calculation of the average daily membership for that student.

(b) "Full-time student" means:

(i) For common schools, a student who is at least six years of age before January 1 of a school year, who has not graduated from the highest grade taught in the school district and who is regularly enrolled in a course of study required by the state board of education. First, second and third grade students or ungraded group B children with disabilities who are at least five, but under six, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least seven hundred twelve hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. Fourth, fifth, sixth, seventh and eighth grade students must be enrolled in an instructional program that meets for a total of at least eight hundred ninety hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section, including the equivalent number of instructional hours for schools that operate on a one hundred forty-four-day school year. The hours in which a student is scheduled to attend a common school during the regular school day shall be included in the calculation of the average daily membership for that student.

(ii) For high schools, a student who has not graduated from the highest grade taught in the school district and who is enrolled in at least an instructional program of four or more subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, that meets for a total of at least seven hundred twenty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section in a recognized high school. A full-time student shall not be counted more than once for computation of average daily membership. The average daily membership of a full-time high school student shall be 1.0 if the student is enrolled in at least four subjects that meet at least seven hundred twenty hours for a one hundred eighty-day school year, or the equivalent instructional hours prescribed in this section. The hours in which a student is scheduled to attend a high school during the regular school day shall be included in the calculation of the average daily membership for that student.

(iii) If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten and repeats kindergarten in the following school year, a school district or charter school is not eligible to receive basic state aid on behalf of that child during the child's second year of kindergarten. If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten but does not remain enrolled, a school district or charter school may receive a portion of basic state aid on behalf of that child in the subsequent year. A school district or charter school may charge tuition for any child who is ineligible for basic state aid pursuant to this item.

(iv) Except as otherwise provided by law, for a full-time high school student who is concurrently enrolled in two school districts or two charter schools, the average daily membership shall not exceed 1.0.

(v) Except as otherwise provided by law, for any student who is concurrently enrolled in a school district and a charter school, the average daily membership shall be apportioned between the school district and the charter school and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and the charter school.

(vi) Except as otherwise provided by law, for any student who is concurrently enrolled, pursuant to section 15-808, in a school district and Arizona online instruction or a charter school and Arizona online instruction, the average daily membership shall be apportioned between the school district and Arizona online instruction or the charter school and Arizona online instruction and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and Arizona online instruction or the charter school and Arizona online instruction.

(vii) For homebound or hospitalized, a student receiving at least four hours of instruction per week.

(c) "Regular school day" means the regularly scheduled class periods intended for instructional purposes. Instructional purposes may include core subjects, elective subjects, lunch, study halls, music instruction and other classes that advance the academic instruction of pupils. Instructional purposes do not include athletic practices or extracurricular clubs and activities.

2. "Budget year" means the fiscal year for which the school district is budgeting and that immediately follows the current year.

3. "Common school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and either:

(a) Grades one through eight.

(b) Grades one through nine pursuant to section 15-447.01.

4. "Current year" means the fiscal year in which a school district is operating.

5. "Daily attendance" means:

(a) For common schools, days in which a pupil:

(i) Of a kindergarten program or ungraded, but not group B children with disabilities, who is at least five, but under six, years of age by September 1 attends at least three-quarters of the instructional time scheduled for the day. If the total instruction time scheduled for the year is at least three hundred fifty-six hours but is less than seven hundred twelve hours, such attendance shall be counted as one-half day of attendance. If the instructional time scheduled for the year is at least six hundred ninety-two hours, "daily attendance" means days in which a pupil attends at least one-half of the instructional time scheduled for the day. Such attendance shall be counted as one-half day of attendance. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(ii) Of the first, second or third grades attends more than three-quarters of the instructional time scheduled for the day. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(iii) Of the fourth, fifth or sixth grades attends more than three-quarters of the instructional time scheduled for the day, except as provided in section 15-797. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(iv) Of the seventh or eighth grades attends more than three-quarters of the instructional time scheduled for the day, except as provided in section 15-797. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(b) For common schools, the attendance of a pupil at three-quarters or less of the instructional time scheduled for the day shall be counted as follows, except as provided in section 15-797 and except that attendance for a fractional student shall not exceed the pupil's fractional membership:

(i) If attendance for all pupils in the school is based on quarter days, the attendance of a pupil shall be counted as one-fourth of a day's attendance for each one-fourth of full-time instructional time attended. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(ii) If attendance for all pupils in the school is based on half days, the attendance of at least three-quarters of the instructional time scheduled for the day shall be counted as a full day's attendance and attendance at a minimum of one-half but less than three-quarters of the instructional time scheduled for the day equals one-half day of attendance. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(c) For common schools, the attendance of a preschool child with disabilities shall be counted as one-fourth day's attendance for each thirty-six minutes of attendance, except as provided in paragraph 1, subdivision (a), item (i) of this subsection for children with disabilities up to a maximum of three hundred sixty minutes each week. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(d) For high schools, the attendance of a pupil shall not be counted as a full day unless the pupil is actually and physically in attendance and enrolled in and carrying four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, that count toward graduation in a recognized high school except as provided in section 15-797 and subdivision (e) of this paragraph. Attendance of a pupil carrying less than the load prescribed shall be prorated. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(e) For high schools, the attendance of a pupil may be counted as one-fourth of a day's attendance for each sixty minutes of instructional time in a subject that counts toward graduation, except that attendance for a pupil shall not exceed the pupil's full or fractional membership. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(f) For homebound or hospitalized, a full day of attendance may be counted for each day during a week in which the student receives at least four hours of instruction. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

(g) For school districts that maintain school for an approved year-round school year operation, attendance shall be based on a computation, as prescribed by the superintendent of public instruction, of the one hundred eighty days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each pupil is enrolled. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08.

6. "Daily route mileage" means the sum of:

(a) The total number of miles driven daily by all buses of a school district while transporting eligible students from their residence to the school of attendance and from the school of attendance to their residence on scheduled routes approved by the superintendent of public instruction.

(b) The total number of miles driven daily on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible student from the place of the student's residence to a school transportation pickup point or to the school of attendance and from the school transportation scheduled return point or from the school of attendance to the student's residence. Daily route mileage includes the total number of miles necessary to drive to transport eligible students from and to their residence as provided in this paragraph.

7. "District support level" means the base support level plus the transportation support level.

8. "Eligible students" means:

(a) Students who are transported by or for a school district and who qualify as full-time students or fractional students, except students for whom transportation is paid by another school district or a county school superintendent, and:

(i) For common school students, whose place of actual residence within the school district is more than one mile from the school facility of attendance or students who are admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches and whose actual place of residence outside the school district boundaries is more than one mile from the school facility of attendance.

(ii) For high school students, whose place of actual residence within the school district is more than one and one-half miles from the school facility of attendance or students who are admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches and whose actual place of residence outside the school district boundaries is more than one and one-half miles from the school facility of attendance.

(b) Kindergarten students, for purposes of computing the number of eligible students under subdivision (a), item (i) of this paragraph, shall be counted as full-time students, notwithstanding any other provision of law.

(c) Children with disabilities, as defined by section 15-761, who are transported by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of this title and who qualify as full-time students or fractional students regardless of location or residence within the school district or children with disabilities whose transportation is required by the pupil's individualized education program.

(d) Students whose residence is outside the school district and who are transported within the school district on the same basis as students who reside in the school district.

9. "Enrolled" or "enrollment" means that a pupil is currently registered in the school district.

10. "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.

11. "High school district" means a political subdivision of this state offering instruction to students for grades nine through twelve or that portion of the budget of a common school district that is allocated to teaching high school subjects with permission of the state board of education.

12. "Instructional hours" or "instructional time" means hours or time spent pursuant to an instructional time model adopted under section 15-901.08.

13. "Revenue control limit" means the base revenue control limit plus the transportation revenue control limit.

14. "Student count" means average daily membership as prescribed in this subsection for the fiscal year before the current year, except that for the purpose of budget preparation student count means average daily membership as prescribed in this subsection for the current year.

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

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

17. "Total students transported" means all eligible students transported from their place of residence to a school transportation pickup point or to the school of attendance and from the school of attendance or from the school transportation scheduled return point to their place of residence.

18. "Unified school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through twelve.

B. In this title, unless the context otherwise requires:

1. "Base" means the revenue level per student count specified by the legislature.

2. "Base level" means the following amounts plus the percentage increase to the base level as provided in section 15-902.04:

(a) For fiscal year 2022-2023, $4,775.27.

(b) (a) For fiscal year 2023-2024, $4,914.71.

3. "Base revenue control limit" means the base revenue control limit computed as provided in section 15-944.

4. "Base support level" means the base support level as provided in section 15-943.

5. "Certified teacher" means a person who is certified as a teacher pursuant to the rules adopted by the state board of education, who renders direct and personal services to schoolchildren in the form of instruction related to the school district's educational course of study and who is paid from the maintenance and operation section of the budget.

6. "DD" means programs for children with developmental delays who are at least three years of age but under ten years of age. A preschool child who is categorized under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b).

7. "ED, MIID, SLD, SLI and OHI" means programs for children with emotional disabilities, mild intellectual disabilities, a specific learning disability, a speech/language impairment and other health impairments. A preschool child who is categorized as SLI under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b).

8. "ED-P" means programs for children with emotional disabilities who are enrolled in private special education programs as prescribed in section 15-765, subsection D, paragraph 1 or in an intensive school district program as provided in section 15-765, subsection D, paragraph 2.

9. "ELL" means English learners who do not speak English or whose native language is not English, who are not currently able to perform ordinary classroom work in English and who are enrolled in an English language education program pursuant to sections 15-751, 15-752 and 15-753.

10. "FRPL" means students who meet the eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches, or an equivalent measure recognized for participating in the federal free and reduced-price lunch program and other school programs dependent on a poverty measure, including the community eligibility provision for which free and reduced-price lunch data is not available.

11. "Full-time equivalent certified teacher" or "FTE certified teacher" means for a certified teacher the following:

(a) If employed full time as defined in section 15-501, 1.00.

(b) If employed less than full time, multiply 1.00 by the percentage of a full school day, or its equivalent, or a full class load, or its equivalent, for which the teacher is employed as determined by the governing board.

12. "G" means educational programs for gifted pupils who score at or above the ninety-seventh percentile, based on national norms, on a test adopted by the state board of education.

13. "Group A" means educational programs for career exploration, a specific learning disability, an emotional disability, a mild intellectual disability, remedial education, a speech/language impairment, developmental delay, homebound pupils, bilingual pupils and pupils with other health impairments.

14. "Group B" means educational improvements for pupils in kindergarten programs and grades one through three, educational programs for autism, a hearing impairment, a moderate intellectual disability, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairments, preschool severe delay, a severe intellectual disability and emotional disabilities for school age pupils enrolled in private special education programs or in school district programs for children with severe disabilities or visual impairment, English learners enrolled in a program to promote English language proficiency pursuant to section 15-752 and students who meet the eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches, or an equivalent measure recognized for participating in the federal free and reduced-price lunch program and other school programs dependent on a poverty measure, including the community eligibility provision for which free and reduced-price lunch data is not available.

15. "HI" means programs for pupils with hearing impairment.

16. "Homebound" or "hospitalized" means a pupil who is capable of profiting from academic instruction but is unable to attend school due to illness, disease, accident or other health conditions, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for a period of not less than three school months or a pupil who is capable of profiting from academic instruction but is unable to attend school regularly due to chronic or acute health problems, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for intermittent periods of time totaling three school months during a school year. The medical certification shall state the general medical condition, such as illness, disease or chronic health condition, that is the reason that the pupil is unable to attend school. Homebound or hospitalized includes a student who is unable to attend school for a period of less than three months due to a pregnancy if a competent medical doctor, after an examination, certifies that the student is unable to attend regular classes due to risk to the pregnancy or to the student's health.

17. "K-3" means kindergarten programs and grades one through three.

18. "K-3 reading" means reading programs for pupils in kindergarten programs and grades one, two and three.

19. "MD-R, A-R and SID-R" means resource programs for pupils with multiple disabilities, autism and severe intellectual disability.

20. "MD-SC, A-SC and SID-SC" means self-contained programs for pupils with multiple disabilities, autism and severe intellectual disability.

21. "MD-SSI" means a program for pupils with multiple disabilities with severe sensory impairment.

22. "MOID" means programs for pupils with moderate intellectual disability.

23. "OI-R" means a resource program for pupils with orthopedic impairments.

24. "OI-SC" means a self-contained program for pupils with orthopedic impairments.

25. "PSD" means preschool programs for children with disabilities as provided in section 15-771.

26. "P-SD" means programs for children who meet the definition of preschool severe delay as provided in section 15-771.

27. "Qualifying tax rate" means the qualifying tax rate specified in section 15-971 applied to the assessed valuation used for primary property taxes.

28. "Small isolated school district" means a school district that meets all of the following:

(a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b) Contains no school that is fewer than thirty miles by the most reasonable route from another school, or, if road conditions and terrain make the driving slow or hazardous, fifteen miles from another school that teaches one or more of the same grades and is operated by another school district in this state.

29. "Small school district" means a school district that meets all of the following:

(a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b) Contains at least one school that is fewer than thirty miles by the most reasonable route from another school that teaches one or more of the same grades and is operated by another school district in this state.

30. "Transportation revenue control limit" means the transportation revenue control limit computed as prescribed in section 15-946.

31. "Transportation support level" means the support level for pupil transportation operating expenses as provided in section 15-945.

32. "VI" means programs for pupils with visual impairments. END_STATUTE

Sec. 6. Section 15-945, Arizona Revised Statutes, is amended to read:

START_STATUTE15-945. Transportation support level

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

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

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

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

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

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

Column 1 Column 2

Approved Daily Route State Support Level per

Mileage per Eligible Route Mile for

Student Transported Fiscal Year 2024-2025 2025-2026

0.5 or less 2.95 3.01

More than 0.5 through 1.0 2.42 2.47

More than 1.0 2.95 3.01

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

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

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

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

Column 1 Column 2 Column 3 Column 4

Approved Daily Route

Mileage per Eligible District Type District Type District Type

Student Transported 02 or 03 04 05

0.5 or less 0.15 0.10 0.25

More than 0.5 through 1.0 0.15 0.10 0.25

More than 1.0 0.18 0.12 0.30

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

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

1. Determine the sum of the following:

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

(b) The total number of miles driven on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible pupil with a disability from the place of the pupil's residence to a school transportation pickup point or to the school facility of attendance and from the school transportation scheduled return point or from the school facility to the pupil's residence for extended school year services in accordance with section 15-881.

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

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

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

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

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

Sec. 7. Section 41-1276, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1276. Truth in taxation levy for equalization assistance to school districts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Truth in Taxation Hearing

Notice of Tax Increase

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

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

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

(e) For the purposes of computing the tax increase on a $100,000 home as required by the notice, the joint meeting of the house of representatives ways and means committee and the senate finance committee, or their successor committees, shall consider the difference between the truth in taxation rate and the proposed increased rate.

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

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

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

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

I. Pursuant to subsection C of this section, the qualifying tax rate in tax year 2024 2025 for a high school district or a common school district within a high school district that does not offer instruction in high school subjects as provided in section 15-447 is $1.5930 $1.5606 and for a unified school district, a common school district not within a high school district or a common school district within a high school district that offers instruction in high school subjects as provided in section 15-447 is $3.1860 $3.1212. END_STATUTE

Sec. 8. Title 41, chapter 53, Arizona Revised Statutes, is amended by adding article 4, to read:

ARTICLE 4. ADULT WORKFORCE DEVELOPMENT

START_STATUTE41-5421. Adult workforce diploma program; fund; program providers; requirements; annual reports; definitions

A. The adult workforce diploma program is established in the office of economic opportunity to assist individuals who are at least twenty-one years of age in earning high school diplomas and developing critical employability and career and technical skills to prepare the individuals for employment. The office shall administer the program. The program may be delivered in a campus-based, online or blended modality.

B. The adult workforce diploma program fund is established consisting of legislative appropriations, gifts, grants and other donations. The office shall administer the fund and use monies in the fund to pay participating program providers as prescribed in subsection E of this section. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The office may use not more than five percent of the monies in the fund for the costs of administering the adult workforce diploma program.

C. On or before August 15 of each year, each program provider that seeks to participate in the program shall submit to the office on a form that is developed by the office information showing that the program provider meets all of the following requirements:

1. Is operating a regionally accredited high school diploma-granting entity.

2. Is able to develop a learning plan for each student that integrates graduation requirements and career goals.

3. Provides a course catalog that includes all courses that are necessary to meet graduation requirements.

4. Is able to provide all of the following:

(a) Remediation opportunities in literacy and numeracy.

(b) Career pathways coursework.

(d) Career placement services.

(e) Academic skills intake assessments and transcript evaluations.

D. On or before October 15 of each year, the office shall place all qualified program providers that submit a form pursuant to subsection C of this section on a program providers list. Participating program providers shall begin enrolling students on or before November 15 of each year. A program provider may be removed from the program providers list only if the program provider's authorization to participate in the program is revoked pursuant to subsection J of this section.

E. The office shall pay participating program providers the following amounts for each student who completes the following milestones:

1. $250 for each completed half unit of high school credit.

2. $250 for each completed employability skills certification.

3. $250 for each earned industry-recognized credential or stackable credential that requires not more than fifty hours of training.

4. $500 for each earned industry-recognized credential or stackable credential that requires more than fifty hours but not more than one hundred hours of training.

5. $750 for each earned industry-recognized credential or stackable credential that requires more than one hundred hours of training.

6. $1,000 for each earned high school diploma.

F. Participating program providers shall submit monthly invoices to the office not later than the tenth calendar day of each month for milestones met in the previous calendar month. Participating program providers shall report the number of currently enrolled students for whom invoices have been submitted and the number of currently enrolled students for whom invoices have not yet been submitted together with the monthly invoices submitted pursuant to this subsection. The office shall pay participating program providers in the order in which invoices are submitted until all available monies are spent. The office shall provide a written update to the program providers on or before the last calendar day of each month that includes all of the following:

1. The aggregate total dollars that have been paid to program providers for the program year.

2. The aggregate number of currently enrolled students in this state for whom one or more invoices have been submitted.

3. The aggregate number of currently enrolled students for whom invoices have not yet been submitted.

4. The estimated number of enrollments still available for the program year.

G. On or before October 30 of each year, each participating program provider shall report the following to the office:

1. The total number of students who were funded through the program.

2. The total number of earned credits.

3. The total number of earned industry-recognized credentials or stackable credentials earned for each tier of funding.

4. The total number of students who graduated through the program.

5. Information required for the performance measures adopted by the state board of education pursuant to section 15-217.

H. The office shall compile the reports received from program providers pursuant to subsection G of this section and, on or before December 15 of each year, shall provide an annual report to the governor, the president of the senate, the speaker of the house of representatives and the state board of education and shall provide a copy of the report to the secretary of state.

I. Beginning fiscal year 2027-2028, the office shall review data from each participating program provider to ensure that the program provider is achieving minimum program performance standards, including:

1. A graduation rate of at least fifty percent.

2. An average cost per graduate of $7,000 or less.

J. The office may develop a process to bring a program provider into compliance. The office shall revoke a program provider's authorization to participate in the program if the program provider does not comply with the requirements of this section within two years.

K. For the purposes of this section:

1. "Academic skills intake assessment" means a criterion-referenced assessment of numeracy and literacy skills with high reliability and validity that is determined by third-party research and that may be administered in person or online.

2. "Accredited provider" means an entity that is currently accredited by one of the seven regional accreditation organizations or any successor entity.

3. "Average cost per graduate" means the total program funding disbursed to a participating program provider divided by the total number of graduates for a cohort calculated twelve months after the close of the cohort.

4. "Career pathways coursework" means one or more courses that align with the skill needs of industries in the economy of this state or region and that assist students to enter or advance within a specific occupation or occupational cluster.

5. "Career placement services" means services that are designed to assist students in obtaining employment, including career interest self-assessments, job search skills, résumé development and mock interviews.

6. "Cohort" means the students who enter the program between July 1 and June 30 of each program year.

7. "Employability skills certification" means a certificate earned by demonstrating professional nontechnical skills through assessment and must include the program standards of the United States department of labor's "skills to pay the bills: mastering soft skills for workplace success".

8. "Graduate" means a student who has successfully completed all state and program provider requirements to earn a high school diploma.

9. "Graduation rate" means the total number of graduates from a cohort divided by the total number of students from the same cohort calculated twelve months after the close of the cohort.

10. "Graduation requirements" means course and credit requirements needed to earn a high school diploma from a program provider.

11. "High school diploma" means a diploma that is issued by an accredited provider and that is recognized as a secondary school diploma by this state.

12. "Industry-recognized credential" means an education-related or work-related credential that verifies an individual's qualification or competence and that is issued by a third party with the relevant authority to issue the credential.

13. "Learning plan" means a documented plan that both:

(a) Is designed to prepare a student to succeed in the program and the student's future endeavors.

(b) Identifies the courses and credits that are needed for a student to complete the program and that are graduation requirements.

14. "Milestones" means objective measures of progress for which payment is made to a program provider under this section, including earned units of high school credit, earned industry-recognized credentials and earned high school diplomas.

15. "Program" means the adult workforce diploma program.

16. "Program provider" means a public, nonprofit or other entity that meets the requirements of this section and that does not receive federal or state funding or private tuition for a student who is funded through the program.

17. "Stackable credential" means a third-party credential that is part of a sequence of credentials that can be accumulated over time to build up an individual's qualifications to advance along a career pathway.

18. "Student" means a participant in the program who is at least twenty-one years of age, who is a resident of this state and who has not earned a high school diploma.

19. "Transcript evaluation" means a documented summary of credits that students earned in previous public or private accredited high schools compared with program and program provider graduation requirements.

20. "Unit of high school credit" means a credit that is awarded based on a student's demonstration that the student has successfully met the content expectations for the credit area as defined by subject area standards, expectations or guidelines. END_STATUTE

Sec. 9. Laws 2023, chapter 142, section 13, as amended by Laws 2024, chapter 218, section 18, is amended to read:

Sec. 13. Education and career action plans; early education and career exploration program; fund; report; exemption; delayed repeal; transfer of monies; definition

A. The state board of education shall require public schools to:

1. Complete an Arizona education and career action plan for each student in grades nine through twelve before the student's graduation.

2. Monitor, review and update each Arizona education and career action plan created pursuant to paragraph 1 of this subsection at least one time per year.

B. The department of education shall establish and administer an early education and career exploration program to provide resources to public schools and to assist public schools in fulfilling the requirements prescribed by the state board of education pursuant to subsection A of this section.

C. Subject to available monies, the department of education shall contract with a nonprofit entity to provide the following to public schools:

1. A career mapping tool that does all of the following:

(a) Matches students with apprenticeships, internships and other work-based learning opportunities.

(b) Provides content modules for industry-recognized career tracks.

(d) Provides customization options for public schools.

(e) Allows students to continue accessing their profiles and using the career mapping tool after graduation from high school.

(f) Provides any other educational or career exploration activities or content developed by the department of education and approved by the state board of education.

2. Training and resources for individuals who are implementing the requirements prescribed by the state board of education pursuant to subsection A of this section.

D. The department of education shall coordinate with the nonprofit entity to provide the training and resources described in subsection C, paragraph 2 of this section. The department of education shall consider the enrollment size of each public school when determining what training to provide pursuant to this section.

E. The department of education may provide access to the career mapping tool and related training and resources described in subsection C of this section to a public school that serves any of grades six through eight. This subsection does not require a public school to complete, monitor, review or update an Arizona education and career action plan for students in any of grades six through eight.

F. The early education and career exploration program fund is established consisting of legislative appropriations. The department of education shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. Monies in the fund may be used for implementing and administering the early education and career exploration program established pursuant to subsection B of this section.

G. On or before June 30, 2024 2026, the department of education shall submit a report to the governor, the president of the senate and the speaker of the house of representatives and provide copies of this report to the secretary of state, the chairperson of the senate committee on education, or its successor committee, and the chairperson of the house of representatives committee on education, or its successor committee. The report shall include the following:

1. An overview of the implementation of the early education and career exploration program established by this act, including:

(a) How monies from the early education and career exploration program fund were allocated.

(b) The number of work-based learning opportunities that were created through the early education and career exploration program.

(c) The number and grade levels of students who used the career mapping tool provided pursuant to subsection C, paragraph 1 of this section.

2. The department of education's recommendations that the early education and career exploration program be continued, revised or repealed.

3. Written comments received from members of the public regarding individuals' experiences with the early education and career exploration program.

H. From and after June 30, 2025 2027, this section is repealed and any unexpended or unencumbered monies in the early education and career exploration program fund established by this section are transferred to the state general fund.

I. For the purposes of this section, "public school" means a school district, a charter school, an individual school that is operated by a school district or the Arizona state schools for the deaf and the blind.

Sec. 10. Small school adjustments; eligibility; fiscal year 2025-2026; retroactivity; delayed repeal

A. Notwithstanding section 15-949, subsection A, Arizona Revised Statutes, a common school district is eligible for the small school adjustments pursuant to section 15-949, Arizona Revised Statutes, when determining the school district's budget in fiscal year 2025-2026 if the school district meets all of the following:

1. Is located in a county with a population of more than two hundred thousand persons but less than two hundred ten thousand persons.

2. Has a student count in kindergarten programs and grades one through eight of more than one hundred twenty-five students but less than one hundred fifty students.

3. Has an average daily membership in the current year in kindergarten programs and grades one through eight of one hundred twenty-five or less.

B. This section applies retroactively to from and after June 30, 2025.

C. This section is repealed from and after December 31, 2026.

Sec. 11. Failing schools tutoring fund; use of monies; fiscal year 2025-2026; report

A. Notwithstanding section 15-241, Arizona Revised Statutes, the department of education may use monies in the failing schools tutoring fund established by section 15-241, Arizona Revised Statutes, in fiscal year 2025-2026 for the following school improvements:

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

2. Monitoring the progress of school districts and charter schools towards improved academic outcomes.

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

B. On or before September 1, 2025, the department of education shall report the proposed expenditures for fiscal year 2025-2026 pursuant to subsection A of this section to the governor, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting.

Sec. 12. Implementation

The office of economic opportunity shall include in the list of approved program providers established pursuant to section 41-5421, Arizona Revised Statutes, as added by this act, any program provider who meets both of the following requirements:

1. Was included in the list of approved program providers established pursuant to section 15-217.02, subsection D, Arizona Revised Statutes, as repealed by Laws 2024, chapter 218, section 2.

2. Was not removed from the list described in paragraph 1 of this section because the approved program provider's authorization was revoked pursuant to section 15-217.02, subsection J, Arizona Revised Statutes, as repealed by Laws 2024, chapter 218, section 2.

Sec. 13. Intent

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

Sec. 14. Retroactivity

A. Sections 15-217, 15-217.01, 15-217.02 and 41-5421, Arizona Revised Statutes, as added by this act, apply retroactively to from and after June 30, 2025.

B. Laws 2023, chapter 142, section 13, as amended by Laws 2024, chapter 218, section 18, applies retroactively to from and after June 29, 2025.

C. Section 12 of this act applies retroactively to from and after June 30, 2025.