HB 2233 — dropout recovery programs; special audit

- 1 - H.B.

2233 (e) The applicant is reconstituting an existing school site population at the same or new site.

(f) The applicant is reconstituting an existing grade configuration from a prior charter holder with at least one grade remaining on the original site with the other grade or grades moving to a new site.

The state board of education or the state board for charter schools may approve any charter schools transferring charters.

If the state board of education or the state board for charter schools rejects the preliminary application, the state board of education or the state board for charter schools shall notify the applicant in writing of the reasons for the rejection and of suggestions for improving the application.

An applicant may submit a revised application for reconsideration by the state board of education or the state board for charter schools.

The applicant may request, and the state board of education or the state board for charter schools may provide, technical assistance to improve the application.

TheMake applicantavailable mayappropriate submitand thesufficient applicationsupports tofor apupils, universityincluding undertutoring, thecareer jurisdictioncounseling ofand the Arizona board of regents, a community college districtcounseling. or a group of community college districts.

A university, a community college district or a group of community college districts shall not grant a charter to a school district governing board for a new charter school or for the conversion of an existing district public school to a charter school.

A university, a community college district or a group of community college districts may approve the application if it meets the requirements of this article and if the proposed sponsor determines, in its sole discretion, that the applicant is sufficiently qualified to operate a charter school.

EachComply applicantwith seekingfederal toand establish a charter school shall submit a full set of fingerprints to the approving agency for the purpose of obtaining a state andlaws federalgoverning criminalpupils recordswith checkdisabilities. pursuant to section 41-1750 and Public Law 92-544.

If an applicant will have direct contact with students, the applicant shall possess a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1.

The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

The criminal records check shall be completed before the issuance of a charter.

AllMeet personsstate engagedrequirements infor instructionalhigh workschool directlygraduation. as a classroom, laboratory or other teacher or indirectly as a supervisory teacher, speech therapist or principal shall have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1, unless the person is a volunteer or guest speaker who is accompanied in the classroom by a person with a valid fingerprint clearance card.

AC. charter school shall not employ in any position that requires a valid fingerprint clearance card a person against whom the state board of education has taken disciplinary action as prescribed in section 15-505 or whose certificate has been suspended, surrendered or - 2 - H.B.

2233Each revoked,eligible unlesspupil thewho person'sis certificateenrolled hasin beena subsequentlydropout reinstatedrecovery program shall have a written learning plan developed by the statepupil's boardassigned ofmentor. education.

AllThe otherwritten personnellearning plan shall beinclude fingerprint checked pursuant to section 15-512, or the charterfollowing schoolelements: may require those personnel to obtain a fingerprint clearance card issued pursuant to title 41, chapter 12, article 3.1.

Before employment, the charter school shall make documented, good faith efforts to contact previous employers of a person to obtain information and recommendations that may be relevant to the person's fitness for employment as prescribed in section 15-512, subsection F, including checking the educator information system that is maintained by the department of education pursuant to section 15-505.

The charter school shall notify the department of public safety if the charter school or sponsor receives credible evidence that a person who possesses a valid fingerprint clearance card is arrested for or is charged with an offense listed in section 41-1758.03, subsection B.

A person who is employed at a charter school that has met the requirements of this paragraph is not required to meet any additional requirements that are established by the department of education or that may be established by rule by the state board of education.

The state board of education may not adopt rules that exceed the requirements for persons who are qualified to teach in charter schools prescribed in title I of the every student succeeds act (P.L.

114-95) or the individuals with disabilities education improvement act of 2004 (P.L.

108-446).

Charter schools may hire personnel who have not yet received a fingerprint clearance card if proof is provided of the submission of an application to the department of public safety for a fingerprint clearance card and if the charter school that is seeking to hire the applicant does all of the following:

(a) Documents in the applicant's file the necessity for hiring and placing the applicant before the applicant receives a fingerprint clearance card.

(b) Ensures that the department of public safety completes a statewide criminal records check on the applicant.

A statewide criminal records check shall be completed by the department of public safety every one hundred twenty days until the date that the fingerprint check is completed or the fingerprint clearance card is issued or denied.

(c) Obtains references from the applicant's current employer and the two most recent previous employers except for applicants who have been employed for at least five years by the applicant's most recent employer.

(d) Provides general supervision of the applicant until the date that the fingerprint card is obtained.

(e) Completes a search of criminal records in all local jurisdictions outside of this state in which the applicant has lived in the previous five years.

(f) Verifies the fingerprint status of the applicant with the department of public safety.

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2233 6.

A charter school that complies with the fingerprinting requirements of this section shall be deemed to have complied with section 15-512 and is entitled to the same rights and protections provided to school districts by section 15-512.

7.

If a charter school operator is not already subject to a public meeting or hearing by the municipality in which the charter school is located, the operator of a charter school shall conduct a public meeting at least thirty days before the charter school operator opens a site or sites for the charter school.

The charter school operator shall post notices of the public meeting in at least three different locations that are within three hundred feet of the proposed charter school site.

8.

A person who is employed by a charter school or who is an applicant for employment with a charter school, who is arrested for or charged with a nonappealable offense listed in section 41-1758.03, subsection B and who does not immediately report the arrest or charge to the person's supervisor or potential employer is guilty of unprofessional conduct and the person shall be immediately dismissed from employment with the charter school or immediately excluded from potential employment with the charter school.

9.

A person who is employed by a charter school and who is convicted of any nonappealable offense listed in section 41-1758.03, subsection B or is convicted of any nonappealable offense that amounts to unprofessional conduct under section 15-550 shall immediately do all of the following:

(a) Surrender any certificates issued by the department of education.

(b) Notify the person's employer or potential employer of the conviction.

(c) Notify the department of public safety of the conviction.

(d) Surrender the person's fingerprint clearance card.

D.

An entity that is authorized to sponsor charter schools pursuant to this article has no legal authority over or responsibility for a charter school sponsored by a different entity.

This subsection does not apply to the state board of education's duty to exercise general supervision over the public school system pursuant to section 15-203, subsection A, paragraph 1.

E.

The charter of a charter school shall do all of the following:

EnsureThe compliancestart withdate federal, state and localanticipated rules,end regulationsdate andof statutesthe relatingplan. to health, safety, civil rights and insurance.

The department of education shall publish a list of relevant rules, regulations and statutes to notify charter schools of their responsibilities under this paragraph.

EnsureCourses thatto itbe iscompleted nonsectarianby inthe itspupil programs,during admissionthe policiesacademic andyear. employment practices and all other operations.

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2233 3.

Ensure that it provides a comprehensive program of instruction for at least a kindergarten program or any grade between grades one and twelve, except that a school may offer this curriculum with an emphasis on a specific learning philosophy or style or certain subject areas such as mathematics, science, fine arts, performance arts or foreign language.

4.

Ensure that it designs a method to measure pupil progress toward the pupil outcomes adopted by the state board of education pursuant to section 15-741.01, including participation in the statewide assessment and the nationally standardized norm-referenced achievement test as designated by the state board and the completion and distribution of an annual report card as prescribed in chapter 7, article 3 of this title.

5.

Ensure that, except as provided in this article and in its charter, it is exempt from all statutes and rules relating to schools, governing boards and school districts.

6.

Ensure that, except as provided in this article, it is subject to the same financial and electronic data submission requirements as a school district, including the uniform system of financial records as prescribed in chapter 2, article 4 of this title, procurement rules as prescribed in section 15-213 and audit requirements.

The auditor general shall conduct a comprehensive review and revision of the uniform system of financial records to ensure that the provisions of the uniform system of financial records that relate to charter schools are in accordance with commonly accepted accounting principles used by private business.

A school's charter may include exceptions to the requirements of this paragraph that are necessary as determined by the university, the community college district, the group of community college districts, the state board of education or the state board for charter schools.

The department of education or the office of the auditor general may conduct financial, program or compliance audits.

7.

Ensure compliance with all federal and state laws relating to the education of children with disabilities in the same manner as a school district.

8.

Ensure that it provides for a governing body for the charter school that is responsible for the policy decisions of the charter school.

Notwithstanding section 1-216, if there is a vacancy or vacancies on the governing body, a majority of the remaining members of the governing body constitute a quorum for the transaction of business, unless that quorum is prohibited by the charter school's operating agreement.

9.

Ensure that it provides a minimum of one hundred eighty instructional days before June 30 of each fiscal year unless it is operating on an alternative calendar approved by its sponsor.

The superintendent of public instruction shall adjust the apportionment schedule accordingly to accommodate a charter school utilizing an alternative calendar.

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2233 F.

A charter school shall keep in the personnel file of each current employee who provides instruction to pupils at the charter school information about the employee's educational and teaching background and experience in a particular academic content subject area.

A charter school shall inform parents and guardians of the availability of the information and shall make the information available for inspection on request of parents and guardians of pupils enrolled at the charter school.

This subsection does not require any charter school to release personally identifiable information in relation to any teacher or employee, including the teacher's or employee's address, salary, social security number or telephone number.

G.

The charter of a charter school may be amended at the request of the governing body of the charter school and on the approval of the sponsor.

H.

Charter schools may contract, sue and be sued.

I.

The charter is effective for fifteen years from the first day of the fiscal year as specified in the charter, subject to the following:

1.

At least eighteen months before the the charter expires, the sponsor shall notify the charter school that the charter school may apply for renewal and shall make the renewal application available to the charter school.

A charter school that elects to apply for renewal shall file a complete renewal application at least fifteen months before the charter expires.

A sponsor shall give written notice of its intent not to renew the charter school's request for renewal to the charter school at least twelve months before the expiration of the charter.

The sponsor shall make data used in making renewal decisions available to the school and the public and shall provide a public report summarizing the evidence basis for each decision.

The sponsor may deny the request for renewal if, in its judgment, the charter holder has failed to do any of the following:

(a) Meet or make sufficient progress toward the academic performance expectations set forth in the performance framework.

(b) Meet the operational performance expectations set forth in the performance framework or any improvement plans.

(c) Meet the financial performance expectations set forth in the performance framework or any improvement plans.

(d) Complete the obligations of the contract.

(e) Comply with this article or any provision of law from which the charter school is not exempt.

2.

A charter operator may apply for early renewal.

At least nine months before the charter school's intended renewal consideration, the operator of the charter school shall submit a letter of intent to the sponsor to apply for early renewal.

The sponsor shall review fiscal audits and academic performance data for the charter school that are annually collected by the sponsor, review the current contract between the sponsor and the charter school and provide the qualifying charter school - 6 - H.B.

2233 with a renewal application.

On submission of a complete application, the sponsor shall give written notice of its consideration of the renewal application.

The sponsor may deny the request for early renewal if, in the sponsor's judgment, the charter holder has failed to do any of the following:

(a) Meet or make sufficient progress toward the academic performance expectations set forth in the performance framework.

(b) Meet the operational performance expectations set forth in the performance framework or any improvement plans.

(c) Meet the financial performance expectations set forth in the performance framework or any improvement plans.

(d) Complete the obligations of the contract.

(e) Comply with this article or any provision of law from which the charter school is not exempt.

AWhether sponsorcourses shallwill reviewbe ataken chartersequentially at five-year intervals using a performance framework adopted by the sponsor and may revoke a charter at any time if the charter school breaches one or moreconcurrently. provisions of its charter or if the sponsor determines that the charter holder has failed to do any of the following:

(a) Meet or make sufficient progress toward the academic performance expectations set forth in the performance framework.

(b) Meet the operational performance expectations set forth in the performance framework or any improvement plans.

(c) Meet the financial performance expectations set forth in the performance framework or any improvement plans.

(d) Comply with this article or any provision of law from which the charter school is not exempt.

InState determiningcompetency whetherexams to renewbe ortaken, revoke a charter holder, the sponsor must consider making sufficient progress toward the academic performance expectations set forth in the sponsor's performance framework as onenecessary. of the most important factors.

AtExpectations leastfor sixtysatisfactory daysmonthly beforeprogress. the effective date of the proposed revocation, the sponsor shall give written notice to the operator of the charter school of its intent to revoke the charter.

Notice of the sponsor's intent to revoke the charter shall be delivered personally to the operator of the charter school or sent by certified mail, return receipt requested, to the address of the charter school.

The notice shall incorporate a statement of reasons for the proposed revocation of the charter.

The sponsor shall allow the charter school at least sixty days to correct the problems associated with the reasons for the proposed revocation of the charter.

The final determination of whether to revoke the charter shall be made at a public hearing called for that purpose.

J.

The charter may be renewed for successive periods of twenty years.

- 7 - H.B.

2233 K.

EXCEPT AS OTHERWISE ALLOWED AND REQUIRED UNDER LAW, A charter school that is sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts may not be located on the property of a school district unless the district governing board grants this authority.

L.

A governing board or a school district employee who has control over personnel actions shall not take unlawful reprisal against another employee of the school district because the employee is directly or indirectly involved in an application to establish a charter school.

A governing board or a school district employee shall not take unlawful reprisal against an educational program of the school or the school district because an application to establish a charter school proposes to convert all or a portion of the educational program to a charter school.

For the purposes of this subsection, "unlawful reprisal" means an action that is taken by a governing board or a school district employee as a direct result of a lawful application to establish a charter school and that is adverse to another employee or an education program and:

1.

With respect to a school district employee, results in one or more of the following:

(a) Disciplinary or corrective action.

(b) Detail, transfer or reassignment.

(c) Suspension, demotion or dismissal.

(d) An unfavorable performance evaluation.

(e) A reduction in pay, benefits or awards.

(f) Elimination of the employee's position without a reduction in force by reason of lack of monies or work.

(g) Other significant changes in duties or responsibilities that are inconsistent with the employee's salary or employment classification.

2.

With respect to an educational program, results in one or more of the following:

(a) Suspension or termination of the program.

(b) Transfer or reassignment of the program to a less favorable department.

(c) Relocation of the program to a less favorable site within the school or school district.

(d) Significant reduction or termination of funding for the program.

M.

Charter schools shall secure insurance for liability and property loss.

The governing body of a charter school that is sponsored by the state board of education or the state board for charter schools may enter into an intergovernmental agreement or otherwise contract to participate in an insurance program offered by a risk retention pool established pursuant to section 11-952.01 or 41-621.01 or the charter school may secure its own insurance coverage.

The pool may charge the - 8 - H.B.

2233 requesting charter school reasonable fees for any services it performs in connection with the insurance program.

N.

Charter schools do not have the authority to acquire property by eminent domain.

O.

A sponsor, including members, officers and employees of the sponsor, is immune from personal liability for all acts done and actions taken in good faith within the scope of its authority.

P.

Charter school sponsors and this state are not liable for the debts or financial obligations of a charter school or persons who operate charter schools.

Q.

The sponsor of a charter school shall establish procedures to conduct administrative hearings on determination by the sponsor that grounds exist to revoke a charter.

Procedures for administrative hearings shall be similar to procedures prescribed for adjudicative proceedings in title 41, chapter 6, article 10.

Except as provided in section 41-1092.08, subsection H, final decisions of the state board of education and the state board for charter schools from hearings conducted pursuant to this subsection are subject to judicial review pursuant to title 12, chapter 7, article 6.

R.

The sponsoring entity of a charter school shall have oversight and administrative responsibility for the charter schools that it sponsors.

In implementing its oversight and administrative responsibilities, the sponsor shall ground its actions in evidence of the charter holder's performance in accordance with the performance framework adopted by the sponsor.

The performance framework shall be publicly available, shall be placed on the sponsoring entity's website and shall include:

1.

The academic performance expectations of the charter school and the measurement of sufficient progress toward the academic performance expectations.

2.

The operational expectations of the charter school, including adherence to all applicable laws and obligations of the charter contract.

3.

The financial expectations of the charter school.

4.

Intervention and improvement policies.

S.

Charter schools may pledge, assign or encumber their assets to be used as collateral for loans or extensions of credit.

T.

All property accumulated by a charter school shall remain the property of the charter school.

U.

Charter schools may not locate a school on property that is less than one-fourth mile from agricultural land regulated pursuant to section 3-365, except that the owner of the agricultural land may agree to comply with the buffer zone requirements of section 3-365.

If the owner agrees in writing to comply with the buffer zone requirements and records the agreement in the office of the county recorder as a restrictive covenant running with the title to the land, the charter school may locate a school - 9 - H.B.

2233 within the affected buffer zone.

The agreement may include any stipulations regarding the charter school, including conditions for future expansion of the school and changes in the operational status of the school that will result in a breach of the agreement.

V.

A transfer of a charter to another sponsor, a transfer of a charter school site to another sponsor or a transfer of a charter school site to a different charter shall be completed before the beginning of the fiscal year that the transfer is scheduled to become effective.

An entity that sponsors charter schools may accept a transferring school after the beginning of the fiscal year if the transfer is approved by the superintendent of public instruction.

The superintendent of public instruction shall have the discretion to consider each transfer during the fiscal year on a case-by-case basis.

A charter holder seeking to transfer sponsors shall comply with the current charter terms regarding assignment of the charter.

A charter holder transferring sponsors shall notify the current sponsor that the transfer has been approved by the new sponsor.

W.

Notwithstanding subsection V of this section, a charter holder on an improvement plan must notify parents or guardians of registered students of the intent to transfer the charter and the timing of the proposed transfer.

On the approved transfer, the new sponsor shall enforce the improvement plan but may modify the plan based on performance.

X.

Notwithstanding subsection Y of this section, the state board for charter schools shall charge a processing fee to any charter school that amends its contract to participate in Arizona online instruction pursuant to section 15-808.

The charter Arizona online instruction processing fund is established consisting of fees collected and administered by the state board for charter schools.

The state board for charter schools shall use monies in the fund only for processing contract amendments for charter schools participating in Arizona online instruction.

Monies in the fund are continuously appropriated.

Y.

The sponsoring entity may not charge any fees to a charter school that it sponsors unless the sponsor has provided services to the charter school and the fees represent the full value of those services provided by the sponsor.

On request, the value of the services provided by the sponsor to the charter school shall be demonstrated to the department of education.

Z.

Charter schools may enter into an intergovernmental agreement with a presiding judge of the juvenile court to implement a law-related education program as defined in section 15-154.

The presiding judge of the juvenile court may assign juvenile probation officers to participate in a law-related education program in any charter school in the county.

The cost of juvenile probation officers who participate in the program implemented pursuant to this subsection shall be funded by the charter school.

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2233 AA.

The sponsor of a charter school shall modify previously approved curriculum requirements for a charter school that wishes to participate in the board examination system prescribed in chapter 7, article 6 of this title.

BB.

If a charter school decides not to participate in the board examination system prescribed in chapter 7, article 6 of this title, pupils enrolled at that charter school may earn a Grand Canyon diploma by obtaining a passing score on the same board examinations.

CC.

Notwithstanding subsection Y of this section, a sponsor of charter schools may charge a new charter application processing fee to any applicant.

The application fee shall fully cover the cost of application review and any needed technical assistance.

Authorizers may approve policies that allow a portion of the fee to be returned to the applicant whose charter is approved.

DD.

A charter school may choose to provide a preschool program for children with disabilities pursuant to section 15-771.

EE.

Pursuant to the prescribed graduation requirements adopted by the state board of education, the governing body of a charter school operating a high school may approve a rigorous computer science course that would fulfill a mathematics course required for graduation from high school.

The governing body may approve a rigorous computer science course only if the rigorous computer science course includes significant mathematics content and the governing body determines the high school where the rigorous computer science course is offered has sufficient capacity, infrastructure and qualified staff, including competent teachers of computer science.

FF.

A charter school may permit ALLOW the use of school property, including school buildings, grounds, buses and equipment, by any person, group or organization for any lawful purpose, including a recreational, educational, political, economic, artistic, moral, scientific, social, religious or other civic or governmental purpose.

The charter school may charge a reasonable fee for the use of the school property.

GG.

A charter school and its employees, including the governing body, or chief administrative officer, are immune from civil liability with respect to all decisions made and actions taken to allow the use of school property, unless the charter school or its employees are guilty of gross negligence or intentional misconduct.

This subsection does not limit any other immunity provisions that are prescribed by law.

HH.

Sponsors authorized pursuant to this section shall submit an annual report to the auditor general on or before October 1.

The report shall include:

1.

The current number of charters authorized and the number of schools operated by authorized charter holders.

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2233 2.

The academic, operational and financial performance of the sponsor's charter portfolio as measured by the sponsor's adopted performance framework.

3.

For the prior year, the number of new charters approved, the number of charter schools closed and the reason for the closure.

4.

The sponsor's application, amendment, renewal and revocation processes, charter contract template and current performance framework as required by this section.

II.

The auditor general shall prescribe the format for the annual report required by subsection HH of this section and may require that the annual report be submitted electronically.

The auditor general shall review the submitted annual reports to ensure that the reports include the required items in subsection HH of this section and shall make the annual reports available on request.

If the auditor general finds significant noncompliance or if a sponsor fails to submit the annual report required by subsection HH of this section, on or before December 31 of each year the auditor general shall report to the governor, the president of the senate, the speaker of the house of representatives and the chairs of the senate and house education committees or their successor committees, and the legislature shall consider revoking the sponsor's authority to sponsor charter schools.

JJ.

NOTWITHSTANDING ANY OTHER LAW, A CHARTER SCHOOL THAT HAS BEEN APPROVED AS AN ACHIEVEMENT DISTRICT SCHOOL UNDER SECTION 41-5841 MAY EXPAND TO SERVE MORE STUDENTS THROUGH EITHER OF THE FOLLOWING:

1.

AN ENROLLMENT CAP INCREASE.

THE CHARTER SCHOOL SHALL APPLY TO THE CHARTER SPONSOR FOR APPROVAL OF AN ENROLLMENT CAP INCREASE PURSUANT TO THIS SUBSECTION THROUGH AN EXPEDITED PROCESS THAT IS ESTABLISHED BY THE CHARTER SPONSOR.

2.

THE ESTABLISHMENT OF A NEW SCHOOL.

THE CHARTER SCHOOL SHALL APPLY TO THE CHARTER SPONSOR FOR APPROVAL OF A NEW SCHOOL PURSUANT TO THIS SUBSECTION THROUGH AN EXPEDITED PROCESS THAT IS ESTABLISHED BY THE CHARTER SPONSOR.

KK.

THE EXPEDITED PROCESS PRESCRIBED IN SUBSECTION JJ OF THIS SECTION ESTABLISHED BY THE STATE BOARD FOR CHARTER SCHOOLS SHALL:

1.

REQUIRE THAT AN APPLICATION FOR AN ENROLLMENT CAP INCREASE OR ESTABLISHMENT OF A NEW SCHOOL PURSUANT TO SUBSECTION JJ OF THIS SECTION BE REVIEWED AND ACTED ON WITHIN THIRTY DAYS AFTER SUBMISSION.

2.

REQUIRE THE APPROVAL OF THE EXECUTIVE DIRECTOR OF THE STATE BOARD FOR CHARTER SCHOOLS ONLY, EXCEPT THAT IF THE EXECUTIVE DIRECTOR DENIES THE APPLICATION, THE APPLICATION SHALL BE TRANSMITTED TO THE STATE BOARD FOR CHARTER SCHOOLS FOR A FINAL DETERMINATION.

3.

REDUCE UNNECESSARY AND DUPLICATIVE PAPERWORK REQUIREMENTS.

A CHARTER SCHOOL APPLYING UNDER SUBSECTION JJ OF THIS SECTION TO THE STATE BOARD FOR CHARTER SCHOOLS:

- 12 - H.B.

2233 (a) IS NOT REQUIRED TO SUBMIT MORE THAN A ONE FULL PAGE NARRATIVE EXPLAINING THE RATIONALE FOR GROWTH.

(b) IS NOT REQUIRED TO SUBMIT AN ENROLLMENT MATRIX AND STAFFING CHART.

Sec.

2.

Section 15-241, Arizona Revised Statutes, is amended to read:

15-241.

School, charter school and school district accountability;

annual achievement profiles;

classification;

letter grade system;

profiles;

appeals process;

failing schools tutoring fund;

definition A.

On or before November 1 of each year, the department of education shall compile for each public school and local education agency, and shall recommend to the state board of education, an annual achievement profile that consists of an educational dashboard that reflects the achievement for each public school and local education agency on the academic and educational performance indicators prescribed in subsection D of this section, except that a career technical education district may not be assigned a letter grade pursuant to this section.

The department shall provide any technical assistance needed by the state board to make final adoption of the annual achievement profile.

B.

Each school, charter holder and school district shall submit to the department of education any data that is required and requested and that is necessary to compile the achievement profile.

A school or local education agency that fails to submit the information that is necessary is not eligible to receive monies from the classroom site fund established by section 15-977.

C.

The annual achievement profile compiled by the department of education and recommended to the state board of education shall be used to determine a standard measurement of acceptable academic progress for each school and local education agency and a school and local education agency classification pursuant to subsection G of this section.

Any disclosure of educational records compiled by the department pursuant to this section shall comply with the family educational rights and privacy act of 1974 (20 United States Code section 1232g).

D.

The annual achievement profile for schools and local education agencies shall include, at a minimum, the following academic and educational performance indicators:

1.

Multiple measures of STUDENT academic performance or other academically relevant indicators of school quality that are appropriate to assess the educational impact of a school during the academic year as determined by the state board of education.

2.

STUDENT academic progress on assessments adopted pursuant to sections 15-741 and 15-741.02 in English language arts and mathematics.

- 13 - H.B.

2233 3.

STUDENT academic progress on the English language learner assessments administered pursuant to section 15-756, subsection B and section 15-756.05.

4.

STUDENT progress toward college and career readiness for all schools and local education agencies that offer instruction in any of grades nine through twelve.

5.

STUDENT academic progress on assessments administered pursuant to section 15-741.02.

MultipleExpectations measuresfor ofcontact educationalwith performancethe orpupil's otherassigned relevantmentor. indicators of school quality that assess a school's educational impact, such as graduation rates and attendance rates.

E.

If neither the school nor the school district meets the minimum student count as recommended by the department of education and approved by the state board of education for any of the performance indicators prescribed in subsection D of this section, the performance indicator shall not be factored into the letter grade assigned pursuant to this section.

F.

Subject to final adoption by the state board of education, the department of education shall determine the criteria for each school and local education agency classification on each performance indicator of the annual achievement profile prescribed in subsection D of this section using a researched-based RESEARCH-BASED methodology and shall recommend to the state board for final adoption the criteria for each school and local education agency classification.

The department shall develop the methodology in collaboration with a coalition of qualified technical and policy stakeholders appointed by the state board.

The department shall provide technical assistance and, on request, student or statewide performance indicator data needed to determine and calculate the methodology and final letter grades.

At a minimum, the methodology shall include the performance of pupils at all achievement levels, account for pupil mobility, account for the distribution of pupil achievement at each school and local education agency and include longitudinal indicators of academic performance.

For the purposes of this subsection, "researched-based RESEARCH-BASED methodology" means the systematic and objective application of statistical and quantitative research principles to calculate the indicators used to determine A through F letter grades.

G.

The annual achievement profile shall use classifications based on an A through F letter grade system adopted by the state board of education in which a letter grade of A reflects an excellent level of performance and a letter grade of F reflects a failing level of performance.

The A through F letter grade system shall be applied to each performance indicator of the annual achievement profile prescribed in subsection D of this section, and the state board shall assign an overall letter grade for the public school or local education agency.

The A through F letter grade system shall indicate expected standards of - 14 - H.B.

2233 performance for all schools on each performance indicator of the annual achievement profile prescribed in subsection D of this section and the manner in which schools may rise above or fall below those expected standards of performance.

The state board may also assign a school a letter grade of F on each performance indicator of the annual achievement profile prescribed in subsection D of this section if the state board determines that the school is among the persistently lowest-achieving schools in the state on the majority of the performance indicators of the annual achievement profile under the federal school accountability requirements pursuant to section 1003(g) of the elementary and secondary education act (20 United States Code section 6303).

H.

The classification on each performance indicator of the annual achievement profile for each school and the criteria used to determine classification pursuant to subsections F and G of this section shall be included on the school report card prescribed in section 15-746.

I.

Subject to final adoption by the state board of education, the department of education shall use achievement profiles appropriately to assess the educational impact of accommodation schools, alternative schools and extremely small schools, may develop profiles for schools that participate in the board examination system prescribed in chapter 7, article 6 of this title and schools that participate in Arizona online instruction pursuant to section 15-808 and may develop other exceptions as prescribed by the state board for the purposes of this section.

J.

The department of education shall establish a process, including a deadline for when requests must be submitted, for a school or local education agency to correct student data used to determine the school's or local education agency's annual achievement profile.

If a correction to student data is required, the department shall notify the school or local education agency of the data correction process and shall annually process student data correction requests.

The state board of education shall establish an appeals process to allow a school or local education agency to appeal the school's or local education agency's final letter grade, or a letter grade applied to a performance indicator prescribed in subsection D of this section, based on mitigating factors, including achievement profile designations based on incorrect data, identified by the department.

K.

The failing schools tutoring fund is established consisting of monies collected pursuant to section 42-5029, subsection E and section 42-5029.02, subsection A, paragraph 8 as designated for this purpose.

The department of education shall administer the fund.

The department may use monies from the fund to purchase materials designed to assist students to meet the Arizona academic standards and to achieve a passing score on assessments adopted by the state board of education.

L.

For the purposes of this section, "academic progress" means measures of both proficiency and academic gain.

- 15 - H.B.

2233 Sec.

3.

Section 15-241.01, Arizona Revised Statutes, is amended to read:

15-241.01.

School accountability;

alternative operation plans A.

If a school district has six or more schools and at least one-half of the schools in the district are assigned a letter grade of D or F pursuant to this section and at least one school is assigned a letter grade of F, the department of education may submit to the state board of education a recommendation for a public hearing to determine if WHETHER the school district should be subject to an alternative operation plan and the reasons for that recommendation.

When considering whether to recommend a public hearing pursuant to this subsection, the department shall consider at least the following:

1.

The likelihood that continued school-based interventions will be successful.

2.

The extent to which the school district administrators and the school district governing board impacted the assignment of the letter grades of D and F to the district's schools.

3.

Whether those schools assigned a letter grade of D or F have demonstrated reasonable academic growth as determined by the measure of academic progress established pursuant to this section.

B.

If the department of education recommends a public hearing pursuant to subsection A of this section, the state board of education shall meet and may provide by a majority vote of the entire board for the development and implementation of an alternative operation plan as allowed by this section.

When determining whether to place a school district under an alternative operation plan, the state board shall consider at least the following:

1.

The likelihood that continued school-based interventions will be successful.

2.

The extent to which the school district administrators and the school district governing board impacted the assignment of the letter grades D and F to the district's schools.

3.

Whether those schools assigned a letter grade of D or F have demonstrated reasonable academic growth as determined by the measure of academic progress established pursuant to this section.

C.

Before a PUBLIC hearing is held pursuant to subsection B of this section, the department of education shall recommend to the state board of education at least three governmental, nonprofit or private organizations or persons to manage the school district's affairs.

If the state board approves the implementation of an alternative operation plan, it shall make an appointment from the list provided by the department of education.

On making this appointment the state board shall immediately determine which powers enumerated in subsection D of this section shall WILL be temporarily granted to the appointed organization or person.

The authority granted pursuant to this subsection shall be IS effective until - 16 - H.B.

2233 the state board reviews the alternative operation plan as described in subsection E of this section.

AnThe organizationmonthly orparticipation personin appointeda pursuantdropout torecovery subsectionprogram C of this section shall beginbe arecorded fullon reviewor andbefore investigation of the tenth school district'sday educationalof affairseach month and shall submitbe reported to the statedepartment board of education aat detailedthe reportsame listingtime theas findingsother ofdata thatrequired investigation.pursuant to section 15-1042.

ThisMonthly reportparticipation calculations shall includeinclude: an alternative operation plan that details how the school district will raise the level of academic achievement so that all of the schools in the school district are assigned grade letters LETTER GRADES of A, B or C pursuant to this section.

The plan shall include a proposed timeline for improving academic achievement.

The alternative operation plan shall also include a timeline and details concerning how the organization or person will transition the administration of the school district back to the locally elected governing board.

The organization or person shall submit the report within one hundred twenty days from AFTER the date the organization or person was appointed by the state board.

If approved by the state board, the alternative operation plan may authorize the appointed organization or person to do any of the following:

OverrideNewly anyenrolled decisionspupils ofwho thehave schoola districtwritten governinglearning boardplan oron thefile schoolon district superintendent, or both,before concerning the managementfirst and operation of the school district,day and initiate and make decisions concerning the management and operation of the schoolprevious district,month. including reopening the school as a charter school.

HirePupils personnel,who terminatemet personnelthe andexpectations cancelfor existingsatisfactory employmentmonthly contracts,progress includingin the districtprevious superintendent,month. to the extent permitted by law.

The appointed organization or person may refuse to reemploy any certificated teacher who has not been employed by the school district for more than the major portion of three consecutive school years as provided in section 15-536.

AttendPupils anywho meetingsdid ofnot meet the schoolexpectations districtfor governingsatisfactory boardmonthly andprogress administrativein staff.the previous month but did meet the expectations in the month before the previous month.

4.- 1 - H.B.

Supervise2233 the4. activities of the school district's staff, including reassigning the duties and responsibilities of personnel in a manner that, as determined by the appointed organization or person, best suits the needs of the school district.

Pupils who met expectations for program reentry in the revised written learning plan in the previous month.

ToTHE theTOTAL extentNUMBER permittedOF byPUPILS law,ENROLLED. cancel or renegotiate any contract, other than contracts of certificated teachers who have been employed by the school district in the capacity of a certificated teacher for more than one year, to which the governing board or the school district is a party if the cancellation or renegotiation of the contract will produce needed economies in the operation of the district's schools.

6.

THE TOTAL NUMBER OF CREDITS EARNED BY PUPILS.

TheON stateOR boardBEFORE ofJUNE education30 shallOF periodicallyEACH reviewYEAR, theEACH statusDROPOUT ofRECOVERY aPROGRAM schoolPROVIDER districtMUST thatREPORT isTHE operatingFOLLOWING underINFORMATION anTO alternativeTHE operationDEPARTMENT planOF pursuantEDUCATION: to this section to determine whether the - 17 - H.B.

2233 operations of the school district should be returned to the school district governing board.

Before the state board makes a determination to terminate an alternative operation plan, the state board or its designee shall meet with the school district governing board or its designee to establish an appropriate time frame and address any additional operational considerations that are necessary to ensure a smooth transition of authority from the appointed organization or person back to the school district governing board.

When determining whether to terminate an alternative operation plan, the state board shall consider whether the district's schools have made significant academic gains as determined by individual school achievement profiles established pursuant to this section.

F.

If at any time the state board determines that the progress of an organization or person who is appointed pursuant to this subsection or subsection C of this section is insufficient, the state board may remove that organization or person and make an alternative appointment.

All authority granted pursuant to the approved alternative operation plan shall be transferred to the newly appointed organization or person.

The state board may require the newly appointed organization or person to prepare a revised alternative operation plan as described in subsection D of this section.

G.

All expenses and costs of an organization or person appointed by the state board pursuant to subsection C or F of this section shall be paid by the school district.

The state board of education shall review the expenses and costs at least twice each calendar year to ensure that the fees are reasonable and appropriate.

H.

The operation of a school district by an organization or person appointed pursuant to this section shall not interfere with the election of school district governing board members.

I.

The school district shall indemnify the organization or person appointed pursuant to subsection C or F of this section if that organization or person is made or threatened to be made a party to any litigation by reason of the organization's or person's status under this section AND if the organization or person acted in good faith and in a manner the organization or person believed to be lawful and in the best interest of the school district.

J.

All information received and records or reports kept by the state board of education during an investigation resulting from a complaint against an organization or person appointed pursuant to subsection C or F of this section are confidential and are not public records.

K.

NOTWITHSTANDING ANY OTHER LAW AND BEGINNING JANUARY 1, 2029, THE STATE BOARD OF EDUCATION SHALL REQUIRE ANY SCHOOL THAT IS OPERATED BY A SCHOOL DISTRICT, THAT IS ASSIGNED A LETTER GRADE OF F PURSUANT TO SECTION 15-241 FOR THREE CONSECUTIVE YEARS AND THAT HAS NOT DEMONSTRATED STUDENT - 18 - H.B.

2233 GROWTH AT A RATE HIGHER THAN THIS STATE TO SELECT TO EITHER INITIATE A COLLABORATIVE OPERATIONAL AND INSTRUCTIONAL PARTNERSHIP AS PRESCRIBED IN PARAGRAPH 1 OF THIS SUBSECTION OR BE ASSIGNED A SOLUTIONS TEAM AND AN ALTERNATIVE OPERATION PLAN AS PRESCRIBED IN PARAGRAPH 2 OF THIS SUBSECTION.

DEPENDING ON THE SCHOOL'S SELECTION, THE STATE BOARD OF EDUCATION SHALL EITHER:

REQUIRE THE SCHOOLTOTAL TONUMBER INITIATE A COLLABORATIVE OPERATIONAL AND INSTRUCTIONAL PARTNERSHIP WITH A SCHOOL THAT IS ASSIGNED A LETTER GRADE OF APUPILS PURSUANTENROLLED TOIN SECTION 15-241 OR AN ORGANIZATION THAT HASPROVIDER'S DEMONSTRATEDDROPOUT INCREASINGRECOVERY ACADEMICPROGRAM. ACHIEVEMENT WITH STUDENTS SIMILAR TO THE STUDENT DEMOGRAPHIC POPULATION OF THE SCHOOL.

THE STATE BOARD OF EDUCATION SHALL ALLOW FOR A VARIETY OF OPTIONS IN THE SELECTION AND DEVELOPMENT OF THE COLLABORATIVE OPERATIONAL AND INSTRUCTIONAL PARTNERSHIP AND MAY NOT PRESCRIBE THE SCOPE OF THE PARTNERSHIP.

IF A SCHOOL SELECTS THIS OPTION, THE STATE BOARD OF EDUCATION SHALL REVIEW AND APPROVE THE PARTNERSHIP PLAN.

THE STATE BOARD OF EDUCATION MAY ESTABLISH A SUBCOMMITTEE OF THE BOARD THAT INCLUDES STATE BOARD OF EDUCATION MEMBERS, MEMBERS OF THE LOCAL SCHOOL COMMUNITY, REPRESENTATIVES OF THE DEPARTMENT OF EDUCATION, THE COUNTY SCHOOL SUPERINTENDENT FROM THE COUNTY IN WHICH THE SCHOOL IS LOCATED OR OTHER MEMBERS AS DETERMINED BY THE BOARD TO MAKE RECOMMENDATIONS TO THE STATE BOARD OF EDUCATION REGARDING THE COLLABORATIVE OPERATIONAL AND INSTRUCTIONAL PARTNERSHIP.

A COLLABORATIVE OPERATIONAL AND INSTRUCTIONAL PARTNERSHIP DEVELOPED UNDER THIS SUBSECTION MUST ADDRESS ALL OF THE FOLLOWING:

(a) A SCHOOL IMPROVEMENT FRAMEWORK THAT HAS DEMONSTRATED SUCCESS IN LIKE POPULATIONS.

(b) IDENTIFIED FOCUS ON GUARANTEED AND VIABLE CURRICULUM.

(c) PROFESSIONAL DEVELOPMENT FOR IMPROVEMENT IN PEDAGOGY AND CONTENT.

(d) EVIDENCE OF A FOCUS ON DATA-DRIVEN DECISIONS.

(e) IDENTIFIED FOCUS ON DEVELOPMENT OF SITE LEADERS.

DIRECT THE SUPERINTENDENTNUMBER OF PUBLICCREDITS INSTRUCTIONPUPILS ANDHAD THEBEFORE COUNTYENROLLING EDUCATIONALIN SERVICETHE AGENCYDROPOUT TORECOVERY COLLABORATEPROGRAM, TOCATEGORIZED ASSIGNBY AELECTIVE SOLUTIONSCREDIT TEAMOR UNDERCORE SECTIONCREDIT. 15-241.02, SUBSECTION E AND HOLD A PUBLIC HEARING TO PROVIDE AN ALTERNATIVE OPERATION PLAN FOR THE SCHOOL PURSUANT TO SECTION 15-241.02, SUBSECTION K.

L.

THE STATE BOARD OF EDUCATION MAY WAIVE THE REQUIREMENTS OF SUBSECTION K OF THIS SECTION FOR ONE YEAR IF THE SCHOOL IN THE MOST RECENT SCHOOL YEAR FOR WHICH DATA IS AVAILABLE HAS ACHIEVED SIGNIFICANT ACADEMIC GROWTH WITH STUDENTS, AS DETERMINED BY THE STATE BOARD OF EDUCATION.

- 19 - H.B.

2233 Sec.

4.

Section 15-241.02, Arizona Revised Statutes, is amended to read:

15-241.02.

School improvement plans;

solutions teams;

withholding of state monies A.

If a school is assigned a letter grade of D pursuant to section 15-241, within ninety days after receiving notice of the classification, the school district governing board shall develop an improvement plan for the school, submit a copy of the plan to the superintendent of public instruction and the county educational service agency and supervise the implementation of the plan.

The governing board shall include in the plan necessary components as identified by the state board of education.

Within thirty days after submitting the improvement plan to the superintendent of public instruction and the county educational service agency, the governing board shall hold a public meeting in each school that has been assigned a letter grade of D and shall present the respective improvement plans that have been developed for each school.

The governing board, within thirty days after receiving notice of the classification, shall provide written notification of the classification to each residence within the attendance area of the school.

The notice shall explain the improvement plan process and provide information regarding the public meeting required by this subsection.

B.

A school that has not submitted an improvement plan pursuant to subsection A of this section is not eligible to receive monies from the classroom site fund established by section 15-977 for every day that a plan has not been received by the superintendent of public instruction within the time specified in subsection A of this section plus an additional ninety days.

The state board of education shall require the superintendent of the school district to testify before the board and explain the reasons that an improvement plan for that school has not been submitted.

C.

If a charter school is assigned a letter grade of D pursuant to section 15-241, within thirty days the school shall notify the parents of the students attending the school of the classification.

The notice shall explain the improvement plan process and provide information regarding the public meeting required by this subsection.

Within ninety days after receiving the classification, the charter holder shall present an improvement plan to the charter sponsor at a public meeting and submit a copy of the plan to the sponsor of the charter school.

The charter holder shall include in the improvement plan necessary components as identified by the state board of education.

The school is not eligible to receive monies from the classroom site fund established by section 15-977 for every day that an improvement plan has not been received by the sponsor of the charter school within the time specified in this subsection plus an additional ninety days.

The charter holder shall appear before the - 20 - H.B.

2233 sponsoring board and explain why the improvement plan has not been submitted.

D.

If a school is assigned a letter grade of D pursuant to section 15-241 for a third consecutive year, the department of education shall visit the school site to confirm the classification data and to review the implementation of the school's improvement plan.

The school shall be assigned a letter grade of F unless an alternate letter grade is assigned after an appeal pursuant to section 15-241, subsection J.

A school that is assigned a letter grade of D for fewer than three consecutive years may also be assigned a letter grade of F if the state board of education determines that there is no reasonable likelihood that the school will achieve an average level of performance within the next two years.

E.

The superintendent of public instruction and the county educational service agency shall collaborate to assign a solutions team to a school assigned a letter grade of D pursuant to section 15-241, or a school assigned a letter grade of F pursuant to section 15-241 OR A SCHOOL THAT HAS SELECTED THE OPTION PRESCRIBED IN SECTION 15-241.01, SUBSECTION K, PARAGRAPH 2 based on academic need and available resources.

County educational service agencies may enter into agreements to provide services to schools from other counties.

Any other school, subject to available resources, may be assigned a solutions team pursuant to a mutual agreement between the department of education or the county education service agency, or both, and the school.

The solutions team shall be composed of master teachers, fiscal analysts and curriculum assessment experts who are certified by the state board of education as Arizona academic standards technicians.

The department of education or the county educational service agency may hire or contract with administrators, principals and teachers who have demonstrated experience in improving academic outcomes and may use these personnel as part of the solutions team.

The department of education shall work with staff at the school to assist in curricula alignment and shall instruct teachers on how to increase pupil academic progress, considering the school's annual achievement profile.

The solutions team shall consider the existing improvement plan to assess the need for changes to curricula, professional development and resource allocation and shall present a statement of its findings to the school administrator and district superintendent.

Within forty-five days after the presentation of the solutions team's statement of findings, the school district governing board, in cooperation with each school within the school district that is assigned a letter grade of D and its assigned solutions team representative, shall develop and submit to the department of education and the county educational service agency an action plan that details the manner in which the school district will assist the school as the school incorporates the findings of the solutions team into the improvement plan.

The department of education shall review the action plan and shall either accept the action plan or return the action plan to - 21 - H.B.

2233 the school district for modification.

If the school district does not submit an approved action plan within forty-five days, the state board of education may direct the superintendent of public instruction to withhold up to ten percent of state monies that the school district would otherwise be entitled to receive each month until the plan is submitted to the department of education and the county educational service agency, at which time those monies shall be returned to the school district.

F.

The parent or guardian of a pupil may apply to the department of education, in a manner determined by the department of education, for a certificate of supplemental instruction from the failing schools tutoring fund established by section 15-241.

Pupils attending a school assigned a letter grade of D or F may select an alternative tutoring program in academic standards from a provider that is certified by the state board of education.

To qualify, the provider must state in writing a level of academic improvement for the pupil that includes a timeline for improvement that is agreed to by the parent or guardian of the pupil.

The state board of education shall annually review academic performance levels for certified providers and may remove a provider at a public hearing from an approved list of providers if that provider fails to meet its stated level of academic improvement.

The state board of education shall determine the application guidelines and the maximum value for each certificate of supplemental instruction.

The state board of education shall annually complete a market survey in order to determine the maximum value for each certificate of supplemental instruction.

This subsection does not require this state to provide additional monies beyond the monies provided pursuant to section 42-5029, subsection E, paragraph 7 or section 42-5029.02, subsection A, paragraph 7.

G.

Within sixty days after receiving notification of a school being assigned a letter grade of F pursuant to section 15-241, the school district governing board shall evaluate needed changes to the existing school improvement plan, consider recommendations from the solutions team, submit a copy of the plan to the superintendent of public instruction and the county educational service agency and supervise the implementation of the plan.

Within thirty days after submitting the improvement plan to the superintendent of public instruction and the county educational service agency, the governing board shall hold a public meeting in each school that has been assigned a letter grade of F and shall present the respective improvement plans that have been developed for each school.

The governing board, within thirty days after receiving notice of the classification, shall provide written notification of the classification to each residence in the attendance area of the school.

The notice shall explain the improvement plan process and provide information regarding the public meeting required by this subsection.

H.

A school that has not submitted an improvement plan pursuant to subsection G of this section is not eligible to receive monies from the - 22 - H.B.

2233 classroom site fund established by section 15-977 for every day that a plan has not been received by the superintendent of public instruction within the time specified in subsection G of this section plus an additional ninety days.

The state board of education shall require the superintendent of the school district to testify before the board and explain the reasons that an improvement plan for that school has not been submitted.

I.

If a charter school is assigned a letter grade of F pursuant to section 15-241, the department of education shall immediately notify the charter school's sponsor.

The charter school's sponsor shall either take action to restore the charter school to acceptable performance PURSUANT TO A PROCESS ESTABLISHED BY THE CHARTER SPONSOR or revoke the charter school's charter.

Within thirty days, the charter school shall notify the parents of the students attending the school of the classification and of any pending public meetings to review the issue.

J.