| 1 | 1 | | REFERENCE TITLE: community colleges; out-of-county reimbursement. State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session 2022 HB 2558 Introduced by Representative Griffin AN ACT amending sections 15-1469 and 42-17203, Arizona Revised Statutes; relating to community college district finance. (TEXT OF BILL BEGINS ON NEXT PAGE) |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | |
|---|
| 8 | 8 | | |
|---|
| 9 | 9 | | REFERENCE TITLE: community colleges; out-of-county reimbursement. |
|---|
| 10 | 10 | | State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session 2022 |
|---|
| 11 | 11 | | HB 2558 |
|---|
| 12 | 12 | | Introduced by Representative Griffin |
|---|
| 13 | 13 | | |
|---|
| 14 | 14 | | REFERENCE TITLE: community colleges; out-of-county reimbursement. |
|---|
| 15 | 15 | | |
|---|
| 16 | 16 | | |
|---|
| 17 | 17 | | |
|---|
| 18 | 18 | | |
|---|
| 19 | 19 | | |
|---|
| 20 | 20 | | |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | |
|---|
| 23 | 23 | | |
|---|
| 24 | 24 | | State of Arizona |
|---|
| 25 | 25 | | |
|---|
| 26 | 26 | | House of Representatives |
|---|
| 27 | 27 | | |
|---|
| 28 | 28 | | Fifty-fifth Legislature |
|---|
| 29 | 29 | | |
|---|
| 30 | 30 | | Second Regular Session |
|---|
| 31 | 31 | | |
|---|
| 32 | 32 | | 2022 |
|---|
| 33 | 33 | | |
|---|
| 34 | 34 | | |
|---|
| 35 | 35 | | |
|---|
| 36 | 36 | | |
|---|
| 37 | 37 | | |
|---|
| 38 | 38 | | HB 2558 |
|---|
| 39 | 39 | | |
|---|
| 40 | 40 | | |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | Introduced by |
|---|
| 43 | 43 | | |
|---|
| 44 | 44 | | Representative Griffin |
|---|
| 45 | 45 | | |
|---|
| 46 | 46 | | |
|---|
| 47 | 47 | | |
|---|
| 48 | 48 | | |
|---|
| 49 | 49 | | |
|---|
| 50 | 50 | | AN ACT |
|---|
| 51 | 51 | | |
|---|
| 52 | 52 | | |
|---|
| 53 | 53 | | |
|---|
| 54 | 54 | | amending sections 15-1469 and 42-17203, Arizona Revised Statutes; relating to community college district finance. |
|---|
| 55 | 55 | | |
|---|
| 56 | 56 | | |
|---|
| 57 | 57 | | |
|---|
| 58 | 58 | | |
|---|
| 59 | 59 | | |
|---|
| 60 | 60 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
|---|
| 61 | 61 | | |
|---|
| 62 | 62 | | |
|---|
| 63 | 63 | | |
|---|
| 64 | 64 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 15-1469, Arizona Revised Statutes, is amended to read: START_STATUTE15-1469. Attendance of nonresident state students; payment of cost by county of residence and state A. The district may admit students from any part of this state that is not a part of an established community college district on the same conditions as residents. B. The county of the student's residence and this state shall reimburse the district as provided in this subsection and subsection C of this section. The total amount of reimbursement to each community college district from each county that is not a part of an organized community college district and from this state shall be determined as follows: 1. For students attending classes within the established community college district: (a) Determine the number of full-time equivalent students attending classes within the district from the county for the year preceding the current year. (b) Determine the operational expenses of the district for the current year, excluding direct and indirect costs of noncredit courses and direct and indirect costs of 300 300-level and 400 level 400-level community college baccalaureate degree courses. (c) Determine the amount of state aid the district received for the current year as provided in section 15-1466. (d) Subtract the amount of state aid received for the current year determined in subdivision (c) of this paragraph from the amount of operational expenses for the current year determined in subdivision (b) of this paragraph. (e) Determine the number of full-time equivalent students enrolled in the district for the current year. (f) Divide the amount determined in subdivision (d) of this paragraph by the number of full-time equivalent students determined in subdivision (e) of this paragraph. (g) Multiply the amount determined in subdivision (f) of this paragraph by the average number of full-time equivalent students for the county determined as provided in subdivision (a) of this paragraph. The resulting amount is the total amount of reimbursement to the district from this state and from the county for the budget year for students attending classes within the established community college district. This amount shall be paid to the district as prescribed in subsection C of this section. 2. For students attending classes offered by the district within the county pursuant to section 15-1470, the amount specified in the intergovernmental agreement is the amount of reimbursement to the district from the county for the budget year for students attending classes within the county. C. The amount calculated pursuant to subsection B, paragraph 1 of this section shall be paid to the district as follows: 1. The county that is not a part of an organized community college district shall reimburse the district for the budget year for students attending classes within the established community college district in an amount that is calculated as follows: (a) Divide the amount of the primary property tax levy of the district from the current fiscal year by the number of full-time equivalent students enrolled in the district for the current year as determined in subsection B, paragraph 1, subdivision (e) of this section. (b) Multiply the amount calculated pursuant to subdivision (a) of this paragraph by the number of full-time equivalent students attending classes within the DISTRICT from the county for the year preceding the current year as determined in subsection B, paragraph 1, subdivision (a) of this section. 2. An amount that is equal to the amount calculated pursuant to subsection B, paragraph 1 of this section minus the amount that is calculated pursuant to paragraph 1 of this subsection shall be paid to the district from the state general fund. C. D. On or before May 15 of each year, the staff of the joint legislative budget committee shall: 1. Determine the total amount of reimbursement to each district from each county and this state pursuant to subsection B, paragraph 1 of this section and the amounts that each county and this state must pay to each district under subsection C of this section. 2. Notify the board of supervisors of each county of the amount it shall must reimburse to each district pursuant to subsection B C, paragraph 1 of this section for the budget year. 3. Notify each community college district that is eligible to receive reimbursement of the amount of reimbursement from each county and this state pursuant to subsection B, paragraph 1 and subsection C of this section for the budget year. D. E. On or before November 15 and May 15 of each year, the board of supervisors shall draw warrants on the county treasurer in favor of the community college district for half of the amount due pursuant to subsection B, paragraph 2 or subsection C, paragraph 1 of this section. The board of supervisors shall: 1. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to an intergovernmental agreement for extension courses as provided in section 15-1470. 2. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to subsection B C, paragraph 1 of this section. E. F. Notwithstanding subsection D E of this section, a county and a community college district may specify by intergovernmental agreement that the amount of reimbursement due from the county be reduced by the value of in-kind contributions made by the county to the district. F. G. For the purposes of subsection B, paragraph 1 of this section, full-time equivalent students are determined in the same manner prescribed by section 15-1466.01. END_STATUTE Sec. 2. Section 42-17203, Arizona Revised Statutes, is amended to read: START_STATUTE42-17203. County levy for community college; election A. A county that is not in an organized community college district may conduct an election to authorize a property tax levy for community college purposes that is not within the limitation on primary property taxes that is otherwise prescribed by section 42-17051. B. In order to levy taxes for community college purposes in excess of the limitations otherwise prescribed on primary property tax, the board of supervisors of a county that is not in an organized community college district shall adopt a resolution by an affirmative vote of at least two-thirds of its membership requesting the voters to approve a community college reimbursement levy and setting the time and place for the election. C. The board shall submit the questions to the qualified electors at an election held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d) F. Except as otherwise provided in this section, the election shall be held according to the provisions applying to bond issuance elections in title 35, chapter 3, article 3. D. In the resolution requesting the voters to approve the levy and setting the time and place for the election, the board shall state: 1. The estimated maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection B C, paragraph 1. 2. The estimated secondary property tax rate that will be levied if the voters approve the levy. 3. The estimated decrease of the primary property tax rate if the voters approve the levy for the payment of tuition under section 15-1469, subsection B C, paragraph 1. 4. That the amount of community college reimbursement levy will vary from year to year to pay tuition under section 15-1469, subsection B C, paragraph 1. 5. The maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section. 6. The maximum growth rate that will be allowed for secondary property taxes collected in each subsequent year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section. E. The board may use monies it collects under this section to either: 1. Reimburse the costs of students pursuant to section 15-1469, subsection B, paragraphs 1 and 2 as approved by the voters. 2. Establish a campus in the county that is affiliated with a community college district. F. If the levy is approved by the voters for purposes of reimbursement pursuant to section 15-1469, the maximum amount of taxes that the board may levy for any year in which the authority is in effect is the amount of reimbursement pursuant to section 15-1469, subsection B C, paragraph 1 and any portion of the reimbursement as specified in the resolution pursuant to subsection D, paragraphs 5 and 6 of this section as approved by the board of supervisors. G. The board of supervisors shall levy the tax in the same manner as county property taxes as provided in section 42-17151. If an unexpended balance of the monies collected pursuant to this section remains after satisfying the requirements of subsection E of this section, the board shall use the balance to reduce the community college levy under this section in the following year. If the balance exceeds the requirements for the following year, the board shall use the balance to reduce any other property tax authorized by law to be collected by the county. H. The amounts collected pursuant to this section: 1. Shall not be included in the levy limitation pursuant to section 42-17051 for any subsequent year. 2. Shall be collected from a levy of secondary property taxes. 3. Except as provided in this section, are exempt pursuant to article IX, section 19, subsection (5), Constitution of Arizona, from levy limitations. END_STATUTE |
|---|
| 65 | 65 | | |
|---|
| 66 | 66 | | Be it enacted by the Legislature of the State of Arizona: |
|---|
| 67 | 67 | | |
|---|
| 68 | 68 | | Section 1. Section 15-1469, Arizona Revised Statutes, is amended to read: |
|---|
| 69 | 69 | | |
|---|
| 70 | 70 | | START_STATUTE15-1469. Attendance of nonresident state students; payment of cost by county of residence and state |
|---|
| 71 | 71 | | |
|---|
| 72 | 72 | | A. The district may admit students from any part of this state that is not a part of an established community college district on the same conditions as residents. |
|---|
| 73 | 73 | | |
|---|
| 74 | 74 | | B. The county of the student's residence and this state shall reimburse the district as provided in this subsection and subsection C of this section. The total amount of reimbursement to each community college district from each county that is not a part of an organized community college district and from this state shall be determined as follows: |
|---|
| 75 | 75 | | |
|---|
| 76 | 76 | | 1. For students attending classes within the established community college district: |
|---|
| 77 | 77 | | |
|---|
| 78 | 78 | | (a) Determine the number of full-time equivalent students attending classes within the district from the county for the year preceding the current year. |
|---|
| 79 | 79 | | |
|---|
| 80 | 80 | | (b) Determine the operational expenses of the district for the current year, excluding direct and indirect costs of noncredit courses and direct and indirect costs of 300 300-level and 400 level 400-level community college baccalaureate degree courses. |
|---|
| 81 | 81 | | |
|---|
| 82 | 82 | | (c) Determine the amount of state aid the district received for the current year as provided in section 15-1466. |
|---|
| 83 | 83 | | |
|---|
| 84 | 84 | | (d) Subtract the amount of state aid received for the current year determined in subdivision (c) of this paragraph from the amount of operational expenses for the current year determined in subdivision (b) of this paragraph. |
|---|
| 85 | 85 | | |
|---|
| 86 | 86 | | (e) Determine the number of full-time equivalent students enrolled in the district for the current year. |
|---|
| 87 | 87 | | |
|---|
| 88 | 88 | | (f) Divide the amount determined in subdivision (d) of this paragraph by the number of full-time equivalent students determined in subdivision (e) of this paragraph. |
|---|
| 89 | 89 | | |
|---|
| 90 | 90 | | (g) Multiply the amount determined in subdivision (f) of this paragraph by the average number of full-time equivalent students for the county determined as provided in subdivision (a) of this paragraph. |
|---|
| 91 | 91 | | |
|---|
| 92 | 92 | | The resulting amount is the total amount of reimbursement to the district from this state and from the county for the budget year for students attending classes within the established community college district. This amount shall be paid to the district as prescribed in subsection C of this section. |
|---|
| 93 | 93 | | |
|---|
| 94 | 94 | | 2. For students attending classes offered by the district within the county pursuant to section 15-1470, the amount specified in the intergovernmental agreement is the amount of reimbursement to the district from the county for the budget year for students attending classes within the county. |
|---|
| 95 | 95 | | |
|---|
| 96 | 96 | | C. The amount calculated pursuant to subsection B, paragraph 1 of this section shall be paid to the district as follows: |
|---|
| 97 | 97 | | |
|---|
| 98 | 98 | | 1. The county that is not a part of an organized community college district shall reimburse the district for the budget year for students attending classes within the established community college district in an amount that is calculated as follows: |
|---|
| 99 | 99 | | |
|---|
| 100 | 100 | | (a) Divide the amount of the primary property tax levy of the district from the current fiscal year by the number of full-time equivalent students enrolled in the district for the current year as determined in subsection B, paragraph 1, subdivision (e) of this section. |
|---|
| 101 | 101 | | |
|---|
| 102 | 102 | | (b) Multiply the amount calculated pursuant to subdivision (a) of this paragraph by the number of full-time equivalent students attending classes within the DISTRICT from the county for the year preceding the current year as determined in subsection B, paragraph 1, subdivision (a) of this section. |
|---|
| 103 | 103 | | |
|---|
| 104 | 104 | | 2. An amount that is equal to the amount calculated pursuant to subsection B, paragraph 1 of this section minus the amount that is calculated pursuant to paragraph 1 of this subsection shall be paid to the district from the state general fund. |
|---|
| 105 | 105 | | |
|---|
| 106 | 106 | | C. D. On or before May 15 of each year, the staff of the joint legislative budget committee shall: |
|---|
| 107 | 107 | | |
|---|
| 108 | 108 | | 1. Determine the total amount of reimbursement to each district from each county and this state pursuant to subsection B, paragraph 1 of this section and the amounts that each county and this state must pay to each district under subsection C of this section. |
|---|
| 109 | 109 | | |
|---|
| 110 | 110 | | 2. Notify the board of supervisors of each county of the amount it shall must reimburse to each district pursuant to subsection B C, paragraph 1 of this section for the budget year. |
|---|
| 111 | 111 | | |
|---|
| 112 | 112 | | 3. Notify each community college district that is eligible to receive reimbursement of the amount of reimbursement from each county and this state pursuant to subsection B, paragraph 1 and subsection C of this section for the budget year. |
|---|
| 113 | 113 | | |
|---|
| 114 | 114 | | D. E. On or before November 15 and May 15 of each year, the board of supervisors shall draw warrants on the county treasurer in favor of the community college district for half of the amount due pursuant to subsection B, paragraph 2 or subsection C, paragraph 1 of this section. The board of supervisors shall: |
|---|
| 115 | 115 | | |
|---|
| 116 | 116 | | 1. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to an intergovernmental agreement for extension courses as provided in section 15-1470. |
|---|
| 117 | 117 | | |
|---|
| 118 | 118 | | 2. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to subsection B C, paragraph 1 of this section. |
|---|
| 119 | 119 | | |
|---|
| 120 | 120 | | E. F. Notwithstanding subsection D E of this section, a county and a community college district may specify by intergovernmental agreement that the amount of reimbursement due from the county be reduced by the value of in-kind contributions made by the county to the district. |
|---|
| 121 | 121 | | |
|---|
| 122 | 122 | | F. G. For the purposes of subsection B, paragraph 1 of this section, full-time equivalent students are determined in the same manner prescribed by section 15-1466.01. END_STATUTE |
|---|
| 123 | 123 | | |
|---|
| 124 | 124 | | Sec. 2. Section 42-17203, Arizona Revised Statutes, is amended to read: |
|---|
| 125 | 125 | | |
|---|
| 126 | 126 | | START_STATUTE42-17203. County levy for community college; election |
|---|
| 127 | 127 | | |
|---|
| 128 | 128 | | A. A county that is not in an organized community college district may conduct an election to authorize a property tax levy for community college purposes that is not within the limitation on primary property taxes that is otherwise prescribed by section 42-17051. |
|---|
| 129 | 129 | | |
|---|
| 130 | 130 | | B. In order to levy taxes for community college purposes in excess of the limitations otherwise prescribed on primary property tax, the board of supervisors of a county that is not in an organized community college district shall adopt a resolution by an affirmative vote of at least two-thirds of its membership requesting the voters to approve a community college reimbursement levy and setting the time and place for the election. |
|---|
| 131 | 131 | | |
|---|
| 132 | 132 | | C. The board shall submit the questions to the qualified electors at an election held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d) F. Except as otherwise provided in this section, the election shall be held according to the provisions applying to bond issuance elections in title 35, chapter 3, article 3. |
|---|
| 133 | 133 | | |
|---|
| 134 | 134 | | D. In the resolution requesting the voters to approve the levy and setting the time and place for the election, the board shall state: |
|---|
| 135 | 135 | | |
|---|
| 136 | 136 | | 1. The estimated maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection B C, paragraph 1. |
|---|
| 137 | 137 | | |
|---|
| 138 | 138 | | 2. The estimated secondary property tax rate that will be levied if the voters approve the levy. |
|---|
| 139 | 139 | | |
|---|
| 140 | 140 | | 3. The estimated decrease of the primary property tax rate if the voters approve the levy for the payment of tuition under section 15-1469, subsection B C, paragraph 1. |
|---|
| 141 | 141 | | |
|---|
| 142 | 142 | | 4. That the amount of community college reimbursement levy will vary from year to year to pay tuition under section 15-1469, subsection B C, paragraph 1. |
|---|
| 143 | 143 | | |
|---|
| 144 | 144 | | 5. The maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section. |
|---|
| 145 | 145 | | |
|---|
| 146 | 146 | | 6. The maximum growth rate that will be allowed for secondary property taxes collected in each subsequent year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section. |
|---|
| 147 | 147 | | |
|---|
| 148 | 148 | | E. The board may use monies it collects under this section to either: |
|---|
| 149 | 149 | | |
|---|
| 150 | 150 | | 1. Reimburse the costs of students pursuant to section 15-1469, subsection B, paragraphs 1 and 2 as approved by the voters. |
|---|
| 151 | 151 | | |
|---|
| 152 | 152 | | 2. Establish a campus in the county that is affiliated with a community college district. |
|---|
| 153 | 153 | | |
|---|
| 154 | 154 | | F. If the levy is approved by the voters for purposes of reimbursement pursuant to section 15-1469, the maximum amount of taxes that the board may levy for any year in which the authority is in effect is the amount of reimbursement pursuant to section 15-1469, subsection B C, paragraph 1 and any portion of the reimbursement as specified in the resolution pursuant to subsection D, paragraphs 5 and 6 of this section as approved by the board of supervisors. |
|---|
| 155 | 155 | | |
|---|
| 156 | 156 | | G. The board of supervisors shall levy the tax in the same manner as county property taxes as provided in section 42-17151. If an unexpended balance of the monies collected pursuant to this section remains after satisfying the requirements of subsection E of this section, the board shall use the balance to reduce the community college levy under this section in the following year. If the balance exceeds the requirements for the following year, the board shall use the balance to reduce any other property tax authorized by law to be collected by the county. |
|---|
| 157 | 157 | | |
|---|
| 158 | 158 | | H. The amounts collected pursuant to this section: |
|---|
| 159 | 159 | | |
|---|
| 160 | 160 | | 1. Shall not be included in the levy limitation pursuant to section 42-17051 for any subsequent year. |
|---|
| 161 | 161 | | |
|---|
| 162 | 162 | | 2. Shall be collected from a levy of secondary property taxes. |
|---|
| 163 | 163 | | |
|---|
| 164 | 164 | | 3. Except as provided in this section, are exempt pursuant to article IX, section 19, subsection (5), Constitution of Arizona, from levy limitations. END_STATUTE |
|---|