Bill Text: AZ SB1126 | 2015 | Fifty-second Legislature 1st Regular | Engrossed
Bill Title: Schools; daily organized physical activity
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Engrossed - Dead) 2015-04-03 - Transmit to Senate [SB1126 Detail]
Download: Arizona-2015-SB1126-Engrossed.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-second Legislature First Regular Session 2015
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SENATE BILL 1126 |
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AN ACT
amending Title 15, chapter 1, article 1, Arizona Revised Statutes, by adding section 15-117; amending sections 15-304, 15-823, 15-905, 15-1103, 15-1122 and 15-1126, Arizona Revised Statutes; relating to education.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 15-117, to read:
15-117. Daily organized physical activity; policies
A. Each school district governing board and charter school governing body of a school that provides instruction to pupils in kindergarten programs and grades one through five may adopt policies to require pupils in kindergarten programs and grades one through five to engage in daily organized physical activity outside or inside the classroom.
B. Physical education classes may be used to satisfy policies adopted pursuant to subsection A of this section.
C. Unstructured recess time that occurs immediately before or after lunch periods does not satisfy policies adopted pursuant to subsection A of this section.
D. This section does not apply to pupils who are enrolled in Arizona online instruction pursuant to section 15-808.
E. Any costs incurred from policies adopted pursuant to subsection A of this section may not be offset by disbursements of student activities monies or auxiliary operations fund monies deposited in an account pursuant to section 15-1122 or 15-1126.
F. The policies adopted pursuant to subsection A of this section may not disrupt K‑3 reading programs.
G. Instruction obtained at an academy pursuant to section 15‑823 may not be used to satisfy the policies adopted pursuant to subsection A of this section.
Sec. 2. Section 15-304, Arizona Revised Statutes, is amended to read:
15-304. Warrants; limitations; definition
A. The county school superintendent, on the voucher of the governing board of a school district, shall draw the county school superintendent's warrant on the county treasurer for all necessary expenses against the school fund of the district. The warrants shall be drawn in the order in which the vouchers are filed in the county school superintendent's office. In lieu of drawing warrants, the county school superintendent may issue an electronic transfer pursuant to section 11‑493 for expenditures authorized by this section. Unless notified by the department of education pursuant to section 15‑107, a warrant shall not be drawn for an expenditure from the maintenance and operation, capital outlay, adjacent ways and federal and state grant funds for a purpose not included in the budget of the school district or for an expenditure in excess of the amount budgeted and not previously expended, except for expenditures authorized by the board of supervisors as provided in section 15‑907. The county school superintendent shall not draw a warrant for an expenditure from any school district fund except the maintenance and operation, capital outlay or adjacent ways fund or federal and state grant funds unless sufficient cash is available in the fund according to the records of the county school superintendent. The county school superintendent may only draw a warrant for an expenditure from a federal or state grant fund when sufficient cash is not available in the grant fund if the county treasurer maintains the two accounts as provided in section 15‑996, paragraph 1 and if the county school superintendent determines that the expenditures are included in the budget section of the approved grant application. Warrants may be processed through an electronic payment system.
B. A county school superintendent, within two business days, shall provide written notice to the department of education, if, in the county school superintendent's judgment, a school district has committed an overexpenditure as defined in section 15‑107.
C. The state board of education shall require a county school superintendent who fails to comply with the notification requirements of subsection B of this section to complete professional development training. The state board of education may also require the employees of a county school superintendent who are involved in school district finances and budgeting to complete professional development training. The professional development training shall be selected from a list approved by the state board of education, and the cost of the professional development training shall be paid by the county school superintendent. County school superintendents and employees of the county school superintendent who are involved in district finances and budgeting shall complete at least twelve hours of professional development training within one hundred twenty days after the decision of the state board of education to require professional development training of the county school superintendent and the employees of the county school superintendent who are involved in district finances and budgeting.
D. A county school superintendent who fails to complete the professional development training within the time prescribed in subsection C of this section is guilty of nonfeasance in office, and the state board of education shall forward a complaint to the attorney general. The attorney general may bring an action in superior court against a county school superintendent for failure to comply with the professional development training requirements prescribed in subsection C of this section. If a court determines that a county school superintendent failed to comply with the professional development training requirements prescribed in subsection C of this section, the court shall issue an order removing the county school superintendent from office.
E. A county school superintendent who fails to comply with the notification requirements of subsection B of this section more than once is guilty of unprofessional conduct. The attorney general may commence an action in superior court to enforce this subsection against any county school superintendent who violates the notification requirements of subsection B of this section more than once. If the court determines that a county school superintendent is guilty of unprofessional conduct, the court shall issue an order directing the removal of the county school superintendent from office.
F. Any vacancy in the office of county school superintendent shall be filled in the manner prescribed by section 11‑251.
G. For the purposes of this section, "voucher" means a summary cover sheet and either copies of the invoices of the expenditure or a listing of the invoice detail.
Sec. 3. Section 15-823, Arizona Revised Statutes, is amended to read:
15-823. Admission; residents of other school districts; nonresidents of this state; tuition
A. Except as provided in subsections B, C, D, E, and F and G of this section, children
of nonresidents of this state may be admitted upon payment of a reasonable
tuition fixed by the governing board.
B. The governing board shall admit children of nonresident teaching and research faculty of community college districts and state universities and children of nonresident graduate or undergraduate students of community college districts and state universities whose parent's presence at the district or university is of international, national, state or local benefit without payment of tuition.
C. The governing board shall admit children who are residents of the United States but who are nonresidents of this state without payment of tuition if evidence indicates that the child's physical, mental, moral or emotional health is best served by placement with a grandparent, brother, sister, stepbrother, stepsister, aunt or uncle who is a resident within the school district, unless the governing board determines that the placement is solely for the purpose of obtaining an education in this state without payment of tuition.
D. The governing board may admit nonresident foreign students who are in exchange programs without payment of tuition or as it may otherwise prescribe.
E. The governing board may admit children who are residents of the United States without payment of tuition if evidence indicates that because the parents are homeless or the child is abandoned, as defined in section 8‑201, the child's physical, mental, moral or emotional health is best served by placement with a person who does not have legal custody of the child and who is a resident within the school district, unless the governing board determines that the placement is solely for the purpose of obtaining an education in this state without payment of tuition.
F. The governing board may admit children who are residents of the United States, but who are nonresidents of this state, without payment of tuition if all of the following conditions exist:
1. The child is a member of a federally recognized Indian tribe.
2. The child resides on Indian lands that are under the jurisdiction of the tribe of which the child is a member.
3. The area in the boundaries of the reservation where the child resides is located both in this state and in another state of the United States.
4. The governing board enters into an intergovernmental agreement with the governing board of the school district in another state in which the nonresident child resides. The intergovernmental agreement shall specify the number of nonresident children admitted in this state and the number of resident children that are admitted by the governing board in another state.
G. The governing board may admit children who are residents of the United States, but who are nonresidents of this state, without payment of tuition if all of the following conditions exist:
1. The child is enrolled in a year-round residential boarding academy located in this state specializing in intensive instruction and skill development in sports, music or acting.
2. The child's parents have executed a current notarized guardianship agreement covering the child while enrolled at the academy, which is a condition of enrollment at the academy and authorizes academy representatives to act on the child's parent's or legal guardian's behalf in making all decisions on a daily basis as to the child's activities and needs for medical, educational and other personal issues.
G. H. The governing board shall charge
reasonable tuition for the number of nonresident pupils who reside in another
state and who are admitted by a governing board in this state pursuant to
subsection F of this section that exceed EXCEEDS the number of resident pupils from this state
who are admitted into a school district by the other state.
H. I. The governing board of a school
district shall pay reasonable tuition for the number of resident pupils who
reside in that school district and who are admitted by a school district in
another state pursuant to subsection F of this section that exceed EXCEEDS the
number of nonresident pupils from that other state who are admitted by the
governing board into that school district in this state.
I. J. Children admitted under this section
shall be counted or not counted as resident pupils as prescribed in section
15-824, subsection D.
J. K. Except as provided in subsection I of
this section, a school district or a charter school shall not include pupils
who are not residents of this state in the district's or charter school's
student count and shall not obtain state funding for those pupils.
Sec. 4. Section 15-905, Arizona Revised Statutes, is amended to read:
15-905. School district budgets; notice; adoption; aggregate budget limit; summary; adjustments; impact aid fund; definition
A. Not later than July 5 of each year or no later than the publication of notice of the public hearing and board meeting as required by this section, the governing board of each school district shall prepare and furnish to the superintendent of public instruction and the county school superintendent, unless waived by the county school superintendent, a proposed budget in electronic format for the budget year, which shall contain the information and be in the form as provided by the department of education. The proposed budget shall include the following:
1. The total amount of revenues from all sources that was necessary to meet the school district's budget for the current year.
2. The total amount of revenues by source that will be necessary to meet the proposed budget of the school district, excluding property taxes. The governing board shall prepare the proposed budget and a summary of the proposed budget. Both documents shall be kept on file at the school district office and shall be made available to the public on request. Not later than July 5 of each year or not later than the publication of notice of the public hearing and board meeting required by this subsection, the governing board shall submit the proposed budget to the department of education, which shall prominently display this information about that school district on the website maintained by the department. If the school district maintains a website, the school district shall post a link to the website of the department of education where this information about the school district is posted. The auditor general in conjunction with the department of education shall prescribe the form of the summary of the proposed budget for use by governing boards. School district governing boards may include in the proposed budget any items or amounts that are authorized by legislation filed with the secretary of state and that will become effective during the budget year. If subsequent events prevent the legislation from becoming effective, school district governing boards must reduce their budgets by the amounts budgeted pursuant to the legislation that did not become effective.
B. The governing board of each school district shall prepare a notice fixing a time not later than July 15 and designating a public place within each school district at which a public hearing and board meeting shall be held. The governing board shall present the proposed budget for consideration of the residents and the taxpayers of the school district at that hearing and meeting.
C. The governing board of each school district shall publish or mail, before the hearing and meeting, a copy of the proposed budget or the summary of the proposed budget and a notice of the public hearing and board meeting no later than ten days before the meeting. The proposed budget and the summary of the proposed budget shall contain the percentage of increase or decrease in each budget category of the proposed budget as compared to each category of the budget for the current year. Notification shall be either by publication in a newspaper of general circulation within the school district in which the size of the newspaper print shall be at least eight‑point type, by electronic transmission of the information to the department of education for posting on the department's website or by mailing the information to each household in the school district. The cost of publication, website posting or mailing shall be a charge against the school district. The publisher's affidavit of publication shall be filed by the governing board with the superintendent of public instruction within thirty days after publication. If the budget or proposed budget and notice are posted on a website maintained by the department of education or mailed, the board shall file an affidavit with the superintendent of public instruction within thirty days after the mailing or the date that the information is posted on the website. If a truth in taxation notice and hearing is required under section 15‑905.01, the governing board may combine the notice and hearing under this section with the truth in taxation notice and hearing.
D. At the time and place fixed in the notice, the governing board shall hold the public hearing and present the proposed budget to the persons attending the hearing. On request of any person, the governing board shall explain the budget, and any resident or taxpayer of the school district may protest the inclusion of any item. A governing board member who has a substantial interest, as defined in section 38‑502, in a specific item in the school district budget shall refrain from voting on the specific item. A governing board member may participate without creating a conflict of interest in adoption of a final budget even though the member may have substantial interest in specific items included in the budget.
E. Immediately following the public hearing the president shall call to order the governing board meeting for the purpose of adopting the budget. The governing board shall adopt the budget, which shall not exceed the general budget limit or the unrestricted capital budget limit, making such deductions as it sees fit but making no additions to the proposed budget total for maintenance and operations or capital outlay, and shall enter the budget as adopted in its minutes. Not later than July 18, the budget as finally adopted shall be filed by the governing board with the county school superintendent who shall immediately transmit a copy to the board of supervisors. Not later than July 18, the budget as finally adopted shall be submitted electronically to the superintendent of public instruction. Not later than July 18, the governing board shall submit the budget as finally adopted to the department of education, which shall prominently display this information about that school district on the website maintained by the department. If the school district maintains a website, the school district shall post a link to the website of the department of education where this information about the school district is posted. On or before October 30, the superintendent of public instruction shall review the budget and notify the governing board if the budget is in excess of the general budget limit or the unrestricted capital budget limit. The governing board shall revise the budget as follows:
1. If the governing board receives notification that the budget exceeds the general budget limit or the unrestricted capital budget limit by one per cent percent of the general budget limit or one hundred thousand dollars, whichever is less, it shall adopt on or before December 15, after it gives notice and holds a public meeting in a similar manner as provided in subsections C and D of this section, a revised budget for the current year, which shall not exceed the general budget limit or the unrestricted capital budget limit.
2. If the governing board receives notification that the budget exceeds the general budget limit or the unrestricted capital budget limit by less than the amount prescribed in paragraph 1 of this subsection, the governing board shall adjust the budget and expenditures so as not to exceed the general budget limit or the unrestricted capital budget limit for the current year.
3. On or before December 18, the governing board shall file the revised budget it adopts with the county school superintendent who shall immediately transmit a copy to the board of supervisors. Not later than December 18, the budget as revised shall be submitted electronically to the superintendent of public instruction. School districts that are subject to section 15‑914.01 are not required to send a copy of revised budgets to the county school superintendent. Procedures for adjusting expenditures or revising the budget shall be as prescribed in the uniform system of financial records.
F. The governing board of each school district may budget for expenditures within the school district budget as follows:
1. Amounts within the general budget limit, as provided in section 15‑947, subsection C, may only be budgeted in the following sections of the budget:
(a) The maintenance and operation section.
(b) The capital outlay section.
2. Amounts within the unrestricted capital budget limit, as provided in section 15‑947, subsection D, may only be budgeted in the unrestricted capital outlay subsection of the budget. Monies received pursuant to the unrestricted capital budget limit shall be placed in the unrestricted capital outlay fund. The monies in the fund are not subject to reversion.
G. The governing board may authorize the expenditure of monies budgeted within the maintenance and operation section of the budget for any subsection within the section in excess of amounts specified in the adopted budget only by action taken at a public meeting of the governing board and if the expenditures for all subsections of the section do not exceed the amount budgeted as provided in this section.
H. The aggregate budget limit is the sum of the following:
1. The general budget limit as determined in section 15‑947 for the budget year.
2. The unrestricted capital budget limit as determined in section 15‑947 for the budget year.
3. Federal assistance, excluding title VIII of the elementary and secondary education act of 1965 monies.
I. School districts that overestimated tuition revenues as provided in section 15‑947, subsection C, paragraph 2 shall adjust the general budget limit and expenditures based on tuition revenues for attendance of nonresident pupils during the current fiscal year. School districts that underestimated tuition revenues may adjust their budgets before May 15 based on tuition revenues for attendance of nonresident pupils during the current fiscal year. School districts that overestimated revenues as provided in section 15‑947, subsection C, paragraph 2, subdivision (a), items (iii), (iv) and (v) and subdivision (c) shall adjust the general budget limit and expenditures based on actual revenues during the current fiscal year. School districts that underestimated such revenues may adjust their budgets before May 15 based on actual revenues during the current fiscal year. Procedures for completing adjustments shall be as prescribed in the uniform system of financial records. Not later than May 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction.
J. A common school district not within a high school district whose estimated tuition charge for high school pupils exceeds the actual tuition charge for high school pupils shall adjust the general budget limit and expenditures based on the actual tuition charge. Not later than May 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction. A common school district not within a high school district whose estimated tuition charge for high school pupils is less than the actual tuition charge for high school pupils may adjust its budget before May 15 based on the actual tuition charge. Procedures for completing adjustments shall be as prescribed in the uniform system of financial records. If the adjusted general budget limit requires an adjustment of state aid and if the adjustment to state aid is not made in the current year, the superintendent of public instruction shall adjust by August 15 of the succeeding fiscal year the apportionment of state aid to the school district to correct any overpayment or underpayment of state aid received during the current year.
K. The governing board may include title VIII of the elementary and secondary education act of 1965 assistance allocated for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703, which is in addition to basic assistance when determining the general budget limit as prescribed in section 15‑947, subsection C. The increase in the general budget limit for children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local education agency shall equal the dollar amount calculated pursuant to 20 United States Code section 7703(b)(2). The governing board may adjust before May 15 the budget for the current year based on any adjustments that result in increases over the amount estimated by the superintendent of public instruction for title VIII of the elementary and secondary education act of 1965 assistance for such pupils for the fiscal year preceding the current year. The governing board shall adjust before May 15 the budget for the current year based on any adjustments that result in decreases in the amount estimated by the superintendent of public instruction for title VIII of the elementary and secondary education act of 1965 assistance for such pupils for the fiscal year preceding the current year. Not later than May 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction. Procedures for complying with this subsection shall be as prescribed in the uniform system of financial records.
L. The department of education shall notify the state board of education if expenditures by any school district exceed the general budget limit prescribed in section 15‑947, subsection C, the unrestricted capital budget limit, the school plant fund limits prescribed in section 15‑1102, subsection B, the maintenance and operation section of the budget or the capital outlay section of the budget. If the expenditures of any school district exceed these limits or sections of the budget without authorization as provided in section 15‑907, and if the state board of education determines that the equalization assistance for education received by the school district as provided in section 15‑971 does not conform with statutory requirements, the state board of education shall reduce the state aid for equalization assistance for education for the school district computed as provided in section 15‑971 during the fiscal year subsequent to the fiscal year in which the excess equalization assistance for education was received by an amount equal to the excess equalization assistance for education, except that in case of hardship to the school district, the superintendent of public instruction may approve reductions partly in the first subsequent year and partly in the second subsequent year. If the state board of education determines that the equalization assistance for education received by the school district conforms with statutory requirements, the state board of education shall not reduce the district's equalization assistance for education pursuant to this subsection but the district shall reduce the budget limits as required in subsection M of this section. A school district that disagrees with the department of education's determination regarding an excess expenditure under this subsection may request a hearing before the state board of education.
M. The governing board of a school district shall reduce the general budget limit or the unrestricted capital budget limit for the year subsequent to the year in which the expenditures were in excess of the applicable limit or section of the budget by the amount determined in subsection L of this section, except that in case of hardship to the school district, the superintendent of public instruction may approve reductions partly in the first subsequent year and partly in the second subsequent year. The reduction in the limit is applicable to each school district that has exceeded the general budget limit, the unrestricted capital budget limit or a section of the budget even if the reduction exceeds the state aid for equalization assistance for education for the school district.
N. Except as provided in
section 15‑916, no expenditure shall be made by any school district for a
purpose not included in the budget or in excess of the aggregate budget limit
prescribed in this section, except that if no budget has been adopted, from
July 1 to July 15 the governing board may make expenditures if the total of the
expenditures does not exceed ten per cent
percent of the prior
year's aggregate budget limit. Any expenditures made from July 1 to July 15
and before the adoption of the budget shall be included in the total
expenditures for the current year. No expenditure shall be made and
no debt, obligation or liability shall be incurred or created in any year for
any purpose itemized in the budget in excess of the amount specified for the item
irrespective of whether the school district at any time has received or has on
hand funds in excess of those required to meet the expenditures, debts,
obligations and liabilities provided for under the budget except expenditures
from cash controlled funds as defined by the uniform system of financial
records and except as provided in section 15‑907 and subsection G of this
section. This subsection does not prohibit any school district from
prepaying insurance premiums, magazine subscriptions or officiating services,
or from prepaying any item that is normally prepaid in order to procure the
service or to receive a discounted price for the service, as prescribed by the
uniform system of financial records.
O. The governing board of a school district that is classified as a heavily impacted school district having twenty per cent percent or more pupils pursuant to 20 United States Code section 238(d)1(A) may determine its eligibility to increase the amount that may be included in determining the general budget limit as provided in subsection K of this section and may increase the amount as follows:
1. For fiscal year 1988‑1989:
(a) Multiply one thousand ninety‑four dollars by the number of children with disabilities or children with specific learning disabilities, excluding children who also reside on Indian lands, reported to the division of impact aid, United States department of education in the district's application for fiscal year 1987‑1988.
(b) Multiply five hundred forty‑seven dollars by the number of children residing on Indian lands, excluding children who have disabilities or also have specific learning disabilities, reported to the division of impact aid, United States department of education in the district's application for fiscal year 1987‑1988.
(c) Multiply one thousand nine hundred fourteen dollars by the number of children residing on Indian lands who have disabilities or also have specific learning disabilities reported to the division of impact aid, United States department of education in the district's application for fiscal year 1987‑1988.
(d) Add the amounts determined in subdivisions (a) through (c) of this paragraph.
(e) If the amount of title VIII of the elementary and secondary education act of 1965 assistance as provided in subsection K of this section is less than the sum determined in subdivision (d) of this paragraph, the district is eligible to use the provisions of this subsection.
2. For budget years after 1988‑1989, use the provisions of paragraph 1 of this subsection, but increase each dollar amount by the growth rate for that year as prescribed by law, subject to appropriation and use the number of children reported in the appropriate category for the current fiscal year.
3. If the district is eligible to use the provisions of this subsection, subtract the amount of title VIII of the elementary and secondary education act of 1965 assistance determined in subsection K of this section from the sum determined in paragraph 1, subdivision (d) of this subsection. The difference is the increase in the amount that may be included in determining the general budget limit as provided in subsection K of this section, if including this amount does not increase the district's primary tax rate for the budget year. If the amount of title VIII of the elementary and secondary education act of 1965 assistance determined in subsection K of this section is adjusted for the current year, the increase determined in this paragraph shall be recomputed using the adjusted amount and the recomputed increase shall be reported to the department of education by May 15 on a form prescribed by the department of education.
4. If a district uses the provisions of this subsection, the district is not required to adjust its budget for the current year based on adjustments in the estimated amount of title VIII of the elementary and secondary education act of 1965 assistance as provided in subsection K of this section.
P. A school district, except for an accommodation school, that applies for title VIII of the elementary and secondary education act of 1965 assistance during the current year may budget an amount for title VIII of the elementary and secondary education act of 1965 administrative costs for the budget year. The amount budgeted for title VIII of the elementary and secondary education act of 1965 administrative costs is exempt from the revenue control limit and may not exceed an amount determined for the budgeted year as follows:
1. Determine the minimum cost. The minimum cost for fiscal year 1990‑1991 is two thousand three hundred forty‑three dollars. For fiscal year 1991‑1992 and thereafter, the minimum cost is the minimum cost for the prior year increased by the growth rate as prescribed by law, subject to appropriation.
2. Determine the hourly rate. The hourly rate for fiscal year 1990‑1991 is nine dollars thirty‑eight cents. For fiscal year 1991‑1992 and thereafter, the hourly rate is the hourly rate for the prior year increased by the growth rate as prescribed by law, subject to appropriation.
3. Determine the title VIII of the elementary and secondary education act of 1965 revenues available by subtracting the amount of title VIII of the elementary and secondary education act of 1965 assistance used to increase the general budget limit as provided in subsections K and O of this section for the current fiscal year from the total amount of title VIII of the elementary and secondary education act of 1965 revenues received in the current fiscal year.
4. Determine the total number of administrative hours as follows:
(a) Determine the sum of the following:
(i) 1.00 hours for each high impact pupil who is not a person with a disability or does not have specific learning disabilities.
(ii) 1.25 hours for each high impact pupil who is a person with a disability or has specific learning disabilities.
(iii) 0.25 hours for each low impact pupil who is not a person with a disability or does not have specific learning disabilities.
(iv) 0.31 hours for each low impact pupil who is a person with a disability or has specific learning disabilities.
(b) For the purposes of this paragraph:
(i) "High impact pupil" means a pupil who resides on Indian lands or a pupil who resides on federal property or in low rent housing and whose parent is employed on federal property or low rent housing property or is on active duty in uniformed service, as provided in title VIII of the elementary and secondary education act of 1965, section 8003(a) (20 United States Code section 7703) and as reported in the application for title VIII of the elementary and secondary education act of 1965 assistance in the current year.
(ii) "Low impact pupil" means a pupil who resides on nonfederal property and has a parent who is employed on federal property or low rent housing property or is on active duty in a uniformed service or a pupil who resides on federal property or in low rent housing and who does not have a parent who is employed on federal property or low rent housing property or is on active duty in uniformed service, as provided in title VIII of the elementary and secondary education act of 1965, section 8003(a) (20 United States Code section 7703) and as reported in the application for title VIII of the elementary and secondary education act of 1965 assistance in the current year.
5. Multiply the total number of administrative hours determined in paragraph 4 of this subsection by the hourly rate determined in paragraph 2 of this subsection.
6. Determine the greater of the minimum cost determined in paragraph 1 of this subsection or the product determined in paragraph 5 of this subsection.
7. Add to the amount determined in paragraph 6 of this subsection the amount, if any, to be expended by the school district in the budget year through an intergovernmental agreement with other school districts or the department of education to provide title VIII of the elementary and secondary education act of 1965 technical assistance to participating districts.
8. Determine the lesser of the amount determined in paragraph 7 of this subsection or the revenues available as determined in paragraph 3 of this subsection.
9. The amount determined in paragraph 8 of this subsection is the maximum amount that may be budgeted for title VIII of the elementary and secondary education act of 1965 administrative costs for the budget year as provided in this subsection.
10. If the governing board underestimated the amount that may be budgeted for title VIII of the elementary and secondary education act of 1965, section 8007 administrative costs for the current year, the board may adjust the general budget limit and the budget before May 15. If the governing board overestimated the amount that may be budgeted for title VIII of the elementary and secondary education act of 1965 administrative costs for the current year, the board shall adjust the general budget limit and the budget before May 15.
Q. If a school district governing board has adopted a budget for a fiscal year based on forms and instructions provided by the auditor general and the department of education for that fiscal year and if, as a result of the enactment or nonenactment of proposed legislation after May 1 of the previous fiscal year, the budget is based on incorrect limits, does not include items authorized by law or does not otherwise conform with law, the governing board may revise its budget at a public hearing on or before September 15 to conform with the law. Not later than September 18, the budget as adjusted shall be submitted electronically to the superintendent of public instruction. If the governing board does not revise the budget on or before September 15 and if the budget includes any items not authorized by law or if the budget exceeds any limits, the governing board shall adjust or revise the budget as provided in subsection E of this section.
R. Notwithstanding any other law, if a school district receives assistance pursuant to title VIII of the elementary and secondary education act of 1965, the school district shall establish a local level fund designated as the impact aid fund and deposit the impact aid monies received in the fund. The school district shall separately account for monies in the fund and shall not combine monies in the fund with any other source of local, state or federal assistance. Monies in the fund shall be expended pursuant to federal law only for the purposes allowed by this title. The school district shall account for monies in the fund according to the uniform system of financial records as prescribed by the auditor general. The superintendent of public instruction shall separately account for monies in each school district's impact aid fund, if an impact aid fund is established, in the annual report required by section 15‑255. Monies in the fund are considered federal monies and are not subject to legislative appropriation.
S. For the purposes of this section, "title VIII of the elementary and secondary education act of 1965 assistance" means, for the current year, an amount equal to the final determination of title VIII of the elementary and secondary education act of 1965 assistance for the fiscal year preceding the current year as confirmed by the division of impact aid, United States department of education or, if a final determination has not been made, the amount estimated by the superintendent of public instruction as confirmed by the division of impact aid, United States department of education and, for the budget year, an amount equal to the determination of title VIII of the elementary and secondary education act of 1965 assistance for the fiscal year preceding the budget year as estimated by the superintendent of public instruction.
Sec. 5. Section 15-1103, Arizona Revised Statutes, is amended to read:
15-1103. Insurance proceeds fund; disposition of proceeds
A. Monies received for and derived from insurance losses shall be deposited with the county treasurer who shall credit the deposits to the insurance proceeds fund of the respective school district. The insurance proceeds fund of a school district is a continuing fund not subject to reversion.
B. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds from insurance recoveries to the payment of any outstanding bonded indebtedness of the school district which that is payable from the levy of taxes upon on property within the school district.
C. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds of insurance recoveries to construct, acquire, improve, repair or furnish school buildings property after notice and a hearing.
Sec. 6. Section 15-1122, Arizona Revised Statutes, is amended to read:
15-1122. Student activities treasurer; assistant student activities treasurer; administration of student activities monies
A. The governing board of any school district having student activities monies shall establish a student activities fund and appoint a student activities treasurer. The student activities treasurer shall deposit the student activities monies in a bank account designated the student activities account or in an account with the county treasurer pursuant to section 15‑996 that is designated as other monies. In school districts which that have multiple schools the governing board may designate an assistant student activities treasurer for each school. Each assistant student activities treasurer shall deposit student activities monies in the school district's student activities bank account, in the account with the county treasurer or in student activities bank accounts established separately for each school. Disbursements from the student activities accounts shall be by check, signed by two persons, one of whom shall be either the student activities treasurer or an assistant student activities treasurer and one of whom shall be any other person authorized to sign by the governing board. For school districts that do not assume accounting responsibility pursuant to section 15‑914.01, disbursements may be made by county warrants issued pursuant to section 15‑304 and designated as other monies. The governing board may appoint more than one person to act as cosigner with the student activities treasurer or assistant student activities treasurer. Any disbursement shall be authorized by or on behalf of the student members of the particular club or organization as provided in the uniform system of financial records. The student activities treasurer and assistant student activities treasurers shall give bonds in an amount determined by the governing board, and the cost of bond premiums shall be a charge against the school district.
B. Accounts showing the balances due the respective student organizations as provided in section 15‑1121 shall be kept by the student activities treasurer and assistant student activities treasurers and shall be open to inspection by officers of the student bodies concerned.
Sec. 7. Section 15-1126, Arizona Revised Statutes, is amended to read:
15-1126. Accounting; deposit; disposition of monies
A. Auxiliary operations fund monies shall be accounted for in accordance with the requirements of the uniform system of financial records.
B. Auxiliary operations fund monies shall be deposited after authorization by the governing board in a bank account designated as the auxiliary operations fund or in an account with the county treasurer pursuant to section 15‑996 that is designated as other monies. Disbursements from the fund shall be authorized by the governing board. Disbursements shall be made by check signed by two employees of the school district designated by the governing board. For school districts that do not assume accounting responsibility pursuant to section 15‑914.01, disbursements may be made by county warrants issued pursuant to section 15‑304 and designated as other monies. Persons authorized by the governing board to sign checks shall give a bond in an amount determined by the governing board, and the cost of bond premiums may be a charge against the fund.
C. Auxiliary operations fund monies may be invested and reinvested by the governing board of a school district. All monies earned by investment shall be credited to the auxiliary operations fund of the school district.
D. The governing board may establish an imprest petty cash fund at each school within the school district for activities which that require immediate cash outlays for postage, freight, express, parcel post, travel or other minor disbursements, but not including salaries or wages, which and that are proper as ultimate expenditures from the school district auxiliary operations fund. Imprest petty cash funds established by the governing board shall be funded from the school district auxiliary operations fund in an amount to be determined by the governing board.
E. The governing board may establish a revolving fund bank account for each school within the school district for necessary current expenditures in connection with school bookstore and athletic activities. The revolving funds shall be funded from the auxiliary operations fund in an amount to be determined by the governing board. The school shall return the monies in the revolving fund bank account at the end of each fiscal year to the credit of the school district auxiliary operations fund.
Sec. 8. K‑3 reading; administrative costs
Notwithstanding any other law, in fiscal year 2015‑2016 the department of education may use up to $500,000 of the amount appropriated for K‑3 reading by Laws 2015, chapter 8, section 34 for technical assistance and state level administration of the K‑3 reading program. Prior to the expenditure of any monies for technical assistance and state level administration of the K‑3 reading program under this section the department of education shall submit the expenditure plan for those monies to the joint legislative budget committee for review.
Sec. 9. Retroactivity
Section 15-823, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after June 30, 2014.
