ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: ED DPA 9-2-0-1

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


HB4034: CTEDs; ADM; apportionment; responsibilities

Sponsor: Representative Gress, LD 4

House Engrossed

Overview

Modifies statute relating to career technical education districts (CTEDs), including capital plan, intergovernmental agreement (IGA) or written contract, average daily membership (ADM) apportionment and satellite campus program or course approval requirements.

History

A school district that is part of a CTED must use monies received from a CTED to supplement and not supplant base year career and technical education (CTE) courses and directly related equipment and facilities, except as otherwise authorized. Each member school district must submit a report to the CTE board and the Arizona Department of Education (ADE) that outlines the required maintenance of effort and how monies were used to supplement and not supplant base year CTE courses and directly related equipment and facilities.

Any agreement between a CTE board and another CTED or a school district, charter school, university or community college district (CCD) must be in the form of an IGA or other written contract. Statute requires the IGA or contract to specify outlined provisions, including: 1) the financial provisions and the format for the billing of all services; 2) the quality of the instruction that will be provided; 3) the amount the CTED will contribute to a CTE course and the amount of support required by the school district, charter school, university or CCD; and 4) that the services provided by the CTED, school district, university or CCD be proportionally calculated in the cost of delivering the service.

A member school district or charter school must submit requests to approve or add satellite campus programs or courses to the CTED. On approval from the CTE board, the CTED must then submit the request to the ADE Division of CTE (CTE Division). If the CTE Division determines a course does not meet the criteria for approval, the CTE board may appeal the CTE Division's determination to the State Board of Education acting as the State Board for Vocational Education (SBE acting as SBVE).

The ADM of a student who attends a satellite course or program is capped at 1.25. The school district and charter school must determine the apportionment of ADM (A.R.S. § 15-393).

Provisions

Expenditure Reporting

1.   Requires a CTE board to monitor how monies distributed by the CTED are used.

2.   Directs each CTE board to maintain any financial records, documentation or information that is reasonably necessary for purposes relating to the supplementing and not supplanting of base year CTE courses.

3.   Instructs each CTE board to:

a.   submit to each participating school district an annual report that includes the:

i. aggregate CTED expenditures; and

ii.   CTED expenditures that directly support CTE courses or programs provided at each participating school district; and

b.   provide additional information and details about the expenditures on request from a participating school district.

Capital Plan Requirements

4.   Stipulates a school district that is part of a CTED may carry forward not more than 25% of any monies received from a CTED for any CTE-related purpose, as determined by the school district.

5.   Authorizes a school district to apply to the CTE board to use more than 25% of any monies received from a CTED by submitting a capital plan to the CTE board with the application.

6.   Allows a school district to spend more than 25% of the monies that the school district receives from a CTED in any fiscal year only if:

a.   the CTE board approves the capital plan before the excess expenditures occur; and

b.   all excess expenditures are pursuant to the capital plan.

IGA or Other Written Contract Modifications

7.   Mandates an IGA or other written contract between a CTE board and another CTE board, a school district, a charter school, a university or a CCD be executed by July 1 of the first year in which a satellite campus CTE course or program will be offered.

8.   Adds that the IGA or other written contract must specify the quality of each instructor, rather than the instruction, including the minimum qualifications, relevant industry experience and industry-relevant professional development.

9.   Tasks the school district, charter school, university or CCD with overseeing the evaluation of the instructor unless otherwise provided in the IGA or written contract.

10.  Deletes the requirement that the IGA or written contract specify that the services provided by the CTED, school district, charter school, university or CCD be proportionally calculated in the cost of delivering the service.  

11.  Allows a participating school district or charter school, if ADM generated by a satellite program or course is insufficient to pay for the costs of delivering the program or course, to use funding generated by other CTE programs or courses that exceeds the costs of delivering the other CTE programs or courses to pay for the shortfall.

12.  Requires the IGA or written contract to specify that any party to the IGA or written contract may bring an action against another party under the IGA or written contract only after participating in good faith mediation that is administered by a training and impartial mediator.

13.  Makes each party responsible for paying any costs incurred by the party for the mediation, including legal representation costs and the party's pro rata share of the mediation fees.

14.  Requires the IGA or written contract to specify that if a CTED and school district do not agree to a specified apportionment by July 1, SBE acting as SBVE must mediate the dispute and determine the apportionment for the school year by August 1.

 

 

Approval or Addition of Satellite Campus CTED Programs or Courses

15.  Requires, if the CTE Division determines a satellite campus course does not meet the criteria for approval as a CTE course, the CTE Division to provide to the CTE board a written determination that includes the reasons for the CTE Division's determination.

16.  Mandates a CTE board and the CTE Division:

a.   accept and consider requests to approve or add satellite campus CTED programs or courses from July 1 through June 30 of each year; and

b.   determine whether to approve each request within ____ days after receiving the request.

17.  Stipulates that if the CTE board does not approve a request, the CTE board must provide to the member school district or charter school a written determination that includes the reasons for the CTE board's determination.

18.  Allows a participating school district or charter school to amend a request that is not approved to address the reasons for disapproval.

19.  Requires the CTE board to consider an amended request that is submitted by a participating school district or charter school in the same manner as an initial request. 

ADM Apportionment

20.  Specifies the management and control of a CTED that are vested in the CTE board include the funding for the CTED's ADM.

21.  Allocates a maximum of 1.0 of the ADM for a student attending a satellite campus CTE course or program to the school district or charter school and a maximum of 0.25 to the CTED, unless otherwise apportioned pursuant to an IGA. 

22.  Instructs the school district or charter school and the CTED to determine the apportionment of the 0.25 ADM pursuant to a fully executed IGA.

23.  Stipulates that in the absence of a fully executed IGA, a school district or charter school may not report an ADM for a satellite campus course or program and ADM may not be generated for the course or program.

24.  Makes a CTE board responsible for any funding related to the CTED's ADM.

Miscellaneous

25.  Makes technical and conforming changes.

 

 

 

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Initials CH                 HB 4034

3/24/2026        Page 0 House Engrossed

 

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