HB 2377 — teachers' school supplies; tax credit

HB2377 - 532R - IH Ver       REFERENCEHouse TITLE:Engrossed         State of Arizona House of Representatives Fifty-third Legislature Second Regular Session       HOUSE BILL 2377       AN ACT   amending title 15, chapter 1, article 1, Arizona Revised Statutes, by adding section 15-118;

teachers'Amending schoolsection supplies;43-1021, Arizona Revised Statutes;

tax credit       State of Arizona House of Representatives Fifty-third Legislature Second Regular Session     HB 2377   Introduced by Representatives Clodfelter:

Cook, Hernandez, John, Nutt, Payne, Thorpe, Udall     AN ACT   Amending sections 43-222 and 43-1021, Arizona Revised Statutes;

appropriating monies;

repealing sections 15-118 and 43-1075, Arizona Revised Statutes;

Section 1.  SectionSection 1.  Title 43-222,15, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 15-118, to read:

START_STATUTE43-222.  IncomeSTART_STATUTE15-118.  Classroom taxteacher creditsupply reviewassistance scheduleaccounts; The joint legislative income tax credit review committee shall review the following income tax credits:

1.  Fordefinition yearsA.  Each endingschool district and charter school shall establish a classroom teacher supply assistance account in 0its maintenance and 5,operation sectionsbudget.  Monies 43‑1079.01,in 43‑1087,the 43‑1088,classroom 43-1089.04,teacher 43‑1167.01supply assistance account shall be distributed to classroom teachers for the purchase of classroom supplies and 43‑1175.materials.

2.  ForB.  Each yearsschool endingdistrict and charter school shall distribute Monies in 1its andclassroom 6,teacher sectionssupply 43‑1074.02,assistance 43‑1083,account 43‑1083.02,to 43‑1164.03classroom teachers to purchase, on behalf of the school district or charter school, classroom materials and 43‑1183.supplies to be used in the instruction of students.  Monies distributed from the classroom teacher supply assistance account:

3.  For1.  May yearsnot endingbe inused 2to andpurchase 7,equipment. sections 43‑1073, 43‑1080, 43‑1085, 43‑1086, 43‑1089, 43‑1089.01, 43‑1089.02, 43-1089.03, 43‑1164, 43‑1169 and 43‑1181.

4.  For2.  Shall yearsbe endingused into 3supplement the materials and 8,supplies sectionsotherwise 43‑1074.01,available 43-1075,to 43‑1081,classroom 43‑1168,teachers, 43‑1170including andmonies 43‑1178.distributed from the separate account prescribed in section 15‑354.

5.  ForC.  On yearsor endingbefore inJuly 415 andof 9,each sectionsyear, 43‑1076,the 43‑1081.01,department 43‑1083.04,of 43‑1084,education 43‑1162,shall 43‑1164.05,distribute 43‑1170.01from andthe 43-1184monies and,appropriated beginningfor inthis 2019,purpose sectionsan 43‑1083.03amount to each school district and 43‑1164.04.charter school that is based on the total number of classroom teachers employed by that school district or charter school.

END_STATUTEEach Sec. 2.  Sectionschool 43-1021,district Arizonaor Revisedcharter Statutes,school isshall amendeddeposit tothese read:monies in its classroom teacher supply assistance account.

D.  In addition to monies appropriated to and distributed by the department of education for this purpose, a school district or charter school may accept and deposit in its classroom teacher supply assistance account monies raised by or donated to the school district or charter school for the purchase of classroom supplies and materials.

E.  Each year, each school district and charter school shall distribute an equal amount from its classroom teacher supply assistance account to each classroom teacher who is expected to be employed by the school district or charter school on September 1 of that year.  The school district governing board or charter school governing body may provide a classroom teacher who is determined to be eligible on July 1 with that teacher's total proportionate share on or before August 1 based on the estimate of the total number of teachers who will be employed on September 1.  The school district or charter school shall provide a classroom teacher who is determined to be eligible after July 1 with that teacher's total proportionate share on or before September 30.  The amount distributed from the classroom teacher supply assistance account to each Part‑time classroom teacher shall be prorated.

F.  Monies distributed to classroom teachers pursuant to this section may be provided by any means determined appropriate by the school district governing board or the charter school governing body, including direct deposit, check, debit card or purchasing card.  If a debit card is provided to a teacher for this purpose, an identifier must be placed on the front of the debit card that clearly indicates the card has been issued to allow that teacher to purchase classroom supplies and materials.

G.  Purchases made with monies distributed from classroom teacher supply assistance accounts are not subject to competitive bidding requirements.  H.  Monies received by a classroom teacher pursuant to this section do not affect wages, hours or terms and conditions of employment and are not subject to collective bargaining agreements.  I.  A classroom teacher may decline the receipt of or return the monies distributed under this section without explanation or cause.  J.  Each classroom teacher who accepts monies distributed pursuant to this section shall do all of the following:

1.  sign and date an acknowledgment of the receipt of the monies that includes the following statement:

I, ____________, am employed by the   (school district or charter school)   as a classroom teacher.  I acknowledge that these monies are appropriated by the Legislature for the sole purpose of purchasing classroom supplies and materials to be used in the instruction of students.  In accepting custody of these monies, I agree to keep the receipts for all monies spent for at least three years.  I understand that if I do not keep the receipts, it will be my personal responsibility to pay any state and federal taxes due on these monies.  I also agree to return any unspent monies to the   (school district or charter school)   at the end of the regular school year for deposit in its classroom teacher supply assistance account.

2.  Maintain receipts for monies spent pursuant to this section for at least three years.

3.  Return any unspent monies to the school district or charter school at the end of the regular school year for deposit in its classroom teacher supply assistance account.

K.  The department of education, school districts and charter schools may, and are encouraged to, enter into public-private partnerships in order to increase the amount of monies available to classroom teachers in the classroom teacher supply assistance account.

L.  For the purposes of this section, "classroom teacher" Means a certificated teacher who is employed by a school district or charter school on or before September 1 of each year and who provides classroom instruction to students.

END_STATUTEEND_STATUTE Sec. 2.  Section 43-1021, Arizona Revised Statutes, is amended to read:

22.  Any22.  For taxable years beginning from and after December 31, 2018 through December 31, 2020, any expenses of elementary and secondary schoolteachers deducted pursuant to section 62(a)(2)(D) of the internal revenue code to the extent that a credit is claimed for the same expenses under section 43‑1075.

definition A.  For taxable years beginning from and after December 31, 2017,2018 through December 31, 2020, a credit is allowed against the taxes imposed by this title for expenses incurred by a qualified schoolteacher during the taxable year for educational supplies and materials that are purchased by the qualified schoolteacher and used in the qualified schoolteacher's classroom.classroom.  To qualify for the credit, a schoolteacher must receive and spend the full amount of monies the school makes available to the teacher from its classroom teacher supply assistance account for the school year pursuant to, and only for the purposes prescribed by, section 15-118.

B.  The amount of the credit under this section is the retail price paid by the qualified schoolteacher during the taxable year for the supplies and materialsmaterials, exclusive of the amount received by the taxpayer during the taxable year from the classroom teacher supply assistance account under section 15-118, but not more than fourone hundred fifty dollars.  If both a husband and wife filing a joint return are qualified schoolteachers and separately incur expenses for educational supplies and materials, they may include the expenses incurred by both spouses, exclusive of amounts received by the respective spouses from the classroom teacher supply assistance account, but not more than fourone hundred fifty dollars of separate expenses for each spouse.

Sec. 5.  RetroactivitySec. 5.  Appropriations; Section 43-1075, Arizona Revised Statutes, as added by this act, applies retroactively to taxable years beginning from and after December 31, 2017.

department of education;

teacher classroom supply assistance accounts The sum of $8,700,000 is appropriated from the state general fund in each of fiscal years 2018-2019 and 2019-2020 to the department of education for distribution to school districts and charter schools for deposit in classroom teacher supply assistance accounts as prescribed by this act.

Sec. 6.  Delayed repeal Sections 15-118 and 43-1075, Arizona Revised Statutes, as added by this act, are repealed from and after June 30, 2021, except that the repeal of section 43-1075, Arizona Revised Statutes, as added by this act, does not affect any carryover of any amount of the credit.