HB2381 - 572R - Senate Fact Sheet

Purpose

Modifies requirements relating to career technical education district (CTED) governance, including the information that must be included in a CTED intergovernmental agreement (IGA) or written contract and the apportionment of average daily membership (ADM) for a satellite campus career technical education (CTE) course or program. Outlines requirements on a CTE board relating to the monitoring of CTED expenditures. Prohibits a school district from carrying forward more than 25 percent of any CTED monies received for CTE purposes, except as outlined.

Background

CTEDs are responsible for providing CTE preparation programs designed to prepare students for advanced CTE or entry into the workforce. The management and control of a CTED are vested in the CTE board, including the content and quality of the courses offered, teachers who provide instruction, and reimbursement of other entities for facilities used by the CTED.

A school district that is part of a CTED must use any CTED monies received to supplement and not supplant base year CTE courses and for directly related equipment and facilities, except as prescribed. Each participating school district must provide a report to the CTE board and Arizona Department of Education (ADE) that outlines the 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, school district, charter school, community college district (CCD) or public university must be in the form of an IGA or other written contract, which must completely and accurately specify: 1) the financial provisions of the agreement and the format for billing of all services; 2) the accountability provisions of the agreement; 3) the responsibilities of parties included in the agreement; 4) the type and quality of the instruction that will be provided; 5) the transportation services that will be provided and the manner in which transportation costs will be paid; 6) the amount that the CTED will contribute to a course and amount of support required from the other entity; 7) that the services provided be proportionally calculated in the cost of delivering the service; 8) that the payment for services will not exceed the cost of services provided; and 9) an itemized listing of other goods and services provided to the CTED and that are paid for from CTED funding.

A student who is enrolled in a satellite campus CTE course or program generates a maximum ADM of 1.25. A school district or charter school and the CTED must determine the apportionment of a student's 1.25 ADM between the school district or charter school and the CTED. A school district or charter school must submit requests to approve or add satellite campus CTE courses or programs to the CTE board for approval. If the CTE board approves the request, the CTE board must submit the request to the CTE Division of ADE for final approval. If the CTE Division determines that a CTE course does not meet the criteria for approval, the CTE board may appeal the CTE Division's decision to the State Board of Education (SBE) acting as the State Board of Vocational Education (A.R.S. § 15-393).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

CTED IGA and Written Contract Modifications

1. Replaces the requirement for a CTED IGA or written contract to specify the quality of the CTE instruction that will be provided under the IGA or written contract with a requirement to specify the quality of each CTE instructor, including the minimum qualifications, relevant industry experience and industry-relevant professional development, that will be provided under the IGA or written contract.

2. Requires the school district, charter school, public university or CCD to oversee CTE instructor evaluation, unless the IGA or written contract provides otherwise.

3. Adds, to the information that a CTED IGA or written contract must specify:

a) 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 trained and impartial mediator; and

b) that if a CTED and school district do not agree to a specified apportionment by July 1, the SBE acting as the State Board of Vocational Education must mediate the dispute and determine the apportionment for the school year by August 1.

4. Removes the requirement for a CTED IGA or written contract to specify that the services provided by the CTED, school district, charter school, public university or CCD be proportionally calculated in the cost of delivering the service.

5. Specifies that any CTED IGA or other written contract must be executed by July 1 of the first year in which a CTE course or program will be offered at a satellite campus pursuant to the IGA or written contract.

Satellite Campus CTE Course and Program Approval and Funding

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

7. Requires a CTE board and the CTE Division to accept and consider requests to add satellite campus CTE courses and programs from July 1 to June 30 of each year and determine whether to approve each request within an undetermined number of days after receiving the request.

8. Requires, if a CTE board does not approve a request to add a satellite campus CTE course or program, the CTE board to provide the member school district or charter school a written determination that includes the reasons for the CTE board's determination.

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

10. Requires a CTE board to consider an amended request to add a satellite campus CTE course or program in the same manner as an initial request.

11. Removes the requirement for a school district or charter school and CTED to determine the apportionment of the 1.25 ADM for a student who is enrolled in a satellite campus CTE course or program.

12. Determines that, of the 1.25 ADM for a student enrolled in a satellite campus CTE course or program, a maximum of 1.0 ADM must be attributed to the school district or charter school and a maximum of 0.25 ADM must be attributed to the CTED, unless otherwise apportioned pursuant to an IGA.

13. Requires a school district or charter school and CTED to determine the apportionment of the 0.25 ADM for a student who is enrolled in a satellite campus CTE course or program pursuant to a fully executed IGA.

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

15. Specifies that, if the ADM that a satellite CTE course or program generates is insufficient to pay for the costs of delivering the CTE course or program at a school district or charter school, the participating school district or charter school may use funding that is generated by other CTE courses or programs and exceeds the cost of delivering the other CTE courses or programs to pay for the shortfall.

CTED Expenditure Reporting and Requirements

16. Specifies that the management and control of a CTED vested in the CTE board includes the funding for the CTED's ADM.

17. Requires a CTE board to:

a) monitor how monies that are distributed by the CTED are used;

b) maintain any financial records, documentation or information that is reasonably necessary to monitor CTED expenditures;

c) submit an annual report to each participating school district that includes the aggregate CTED expenditures that directly support CTE courses or programs that are provided at each participating school district; and

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

18. Prohibits a school district that is part of a CTED from carrying forward more than 25 percent of any CTED monies received for any purpose related to CTE, as determined by the school district.

19. Allows a school district to apply to the CTE board to use more than 25 percent of any CTED monies received by submitting a capital plan to the CTE board with an application.

20. Authorizes a school district to spend more than 25 percent of the CTED monies received in any fiscal year only if:

a) the CTE Board approves the school district's capital plan before the excess expenditures occur; and

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

21. Specifies that the CTE board is responsible for any funding relating to the CTED's ADM.

Miscellaneous

22. Makes technical and conforming changes.

23. Becomes effective on the general effective date.