A.R.S. tit. 15 ch. 10 — Arizona Revised Statutes Title 15 Chapter 10 — School District Funds And Related Operations

15-1101. Revolving funds; purpose and manner of procuring A. If the activities of a school district require immediate cash outlays for items including postage, freight, express, fuel taxes, parcel post, travel or other minor disbursements but not including salaries or wages, which are proper as ultimate claims for payment from school district school funds, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply to the county school superintendent to establish and maintain a revolving fund. The allowable amount of the fund shall be fifty cents per student count, except that for a common school district or high school district, at the request of the governing board, or the superintendent or chief administrative officer with the approval of the governing board, the fund may be increased to an amount of five thousand dollars, but in no event shall the amount of the fund be more than ten thousand dollars, and for a unified school district, at the request of the governing board, or the superintendent or chief administrative officer with the approval of the governing board, the fund may be increased to an amount of ten thousand dollars, but in no event shall the amount of the fund be more than twenty thousand dollars. The application shall state the purposes for which the fund is required and the amount deemed necessary and shall designate the particular official of the school district who shall be the custodian of and be charged with the handling and accounting for the fund. B. The county school superintendent may allow such application, draw a warrant to the order of the designated custodian and charge the amount against the school district fund, but no revolving fund shall be established unless the designated custodian is bonded for an amount equal to twice the amount of the fund. The cost of the bond shall be a proper charge against the school district. C. The designated custodian shall periodically submit a voucher with supporting papers covering disbursements from the revolving fund to the county school superintendent who shall issue a warrant for the voucher to reimburse the fund. If the school district is dissolved, consolidated, unified or subdivided, or if the governing board, or the superintendent or chief administrative officer with the approval of the governing board, decides to terminate the revolving fund, the designated employee shall return the original amount of the revolving fund to the county treasurer by the date that the dissolution, consolidation, unification or subdivision of the district becomes effective or within thirty days after the date that the governing board decides to terminate the revolving fund, whichever is appropriate. 15-1102. Disposition of proceeds from sale or lease of school property; school plant monies; payment of bonded indebtedness; definition A. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may expend the proceeds from the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes. B. A common school district or a high school district that has an outstanding bonded indebtedness of seven percent of the current year's assessed valuation or less or a unified school district that has an outstanding bonded indebtedness of fourteen percent of the current year's assessed valuation or less may expend the proceeds from the sale or lease of school property as follows: 1. The total sum of the proceeds from the sale of school property executed before July 1, 2016, for the total sum of the proceeds from the sale of property to a school or the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year: (a) May be expended for maintenance and operation in an amount that does not exceed fifteen percent of the revenue control limit for that year as provided in section 15-947, subsection A in any year. (b) May be expended for capital outlay in any amount. 2. From and after June 30, 2016, proceeds from the sale of school property that exceed one hundred thousand dollars per sales transaction to persons or entities other than schools may not be expended for maintenance and operation and may be expended for capital outlay in any amount. C. A common school district or a high school district that has an outstanding bonded indebtedness of greater than seven percent of the current year's assessed valuation or a unified school district that has an outstanding bonded indebtedness of greater than fourteen percent of the current year's assessed valuation may expend the proceeds from the lease or sale of school property as follows: 1. For the total sum of the proceeds from the sale of school property executed before July 1, 2016, for the total sum of the proceeds from the sale of property to a school or for the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year: (a) Up to twenty-five percent of the sales proceeds may be expended for maintenance and operation in an amount that does not exceed fifteen percent of the revenue control limit for that year as provided in section 15-947, subsection A in any year. (b) The sales or lease proceeds may be expended for capital outlay in any amount. 2. From and after June 30, 2016, for proceeds from the sale of school property that exceed one hundred thousand dollars per sales transaction to persons or entities other than schools: (a) The sales proceeds may not be expended for maintenance and operation. (b) At least thirty-eight percent of the sales proceeds shall be used for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes. (c) The remainder of the sales proceeds that are not obligated pursuant to subdivision (b) of this paragraph may be expended for capital outlay in any amount. D. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall promptly deposit monies received for and derived from the sale or lease of school property with the county treasurer who shall establish a school plant fund. Monies placed to the credit of the school plant fund may be expended as provided in this section. The school plant fund is a continuing fund that is not subject to reversion. E. Proceeds from sales by condemnation or sales under threat of condemnation may be deposited with the county treasurer for deposit in the condemnation fund or the school plant fund of the school district. The condemnation fund is a continuing fund that is not subject to reversion, except that after ten years any unspent monies shall be placed in the school plant fund to be used as prescribed in this section. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds in the condemnation fund to: 1. The payment of any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district. 2. Construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing. F. Proceeds from a right-of-way settlement shall be deposited with the county treasurer for deposit in the condemnation fund of the school district. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall apply those proceeds in the condemnation fund to construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing. G. The restrictions prescribed in subsections B and C of this section do not apply to the proceeds from: 1. Leases of school property to other schools. 2. Leases of school property for less than one year. 3. Sales of school property of less than one hundred thousand dollars per transaction. H. A lease of school property for less than one year that includes an automatic lease renewal resulting in a total lease duration that exceeds one year is considered a lease for more than one year for the purposes of this section. I. For the purposes of this section, "capital outlay" means unrestricted capital outlay as prescribed in section 15-903, subsection C. 15-1103. Insurance proceeds fund; disposition of proceeds A. Monies received for and derived from insurance losses shall be deposited with the county treasurer who shall credit the deposits to the insurance proceeds fund of the respective school district. The insurance proceeds fund of a school district is a continuing fund that is not subject to reversion. B. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds from insurance recoveries to the payment of any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district. C. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds of insurance recoveries to construct, acquire, improve, repair or furnish school property after notice. If the proceeds are applied to a project that costs more than two hundred fifty thousand dollars, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds after notice and a hearing. 15-1104. Unemployment compensation fund Unemployment compensation monies shall be deposited with the county treasurer who shall credit the deposits to the unemployment compensation fund of the respective school district. The unemployment compensation fund of a school district is a continuing fund not subject to reversion, except that any monies in the fund determined by the governing board, or the superintendent or chief administrative officer with the approval of the governing board, to be in excess of insurance needs shall be used for reduction of school district taxes for the budget year. 15-1105. Lease of school property; immunity; civic center school fund; reversion to school plant fund; definitions A. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may lease school property, including school buildings, grounds, buses and equipment, to any person, group or organization for any lawful purpose, including recreational, educational, political, economic, artistic, moral, scientific, social, religious or other civic or governmental purpose in the interest of the community, including extended day resource programs. The governing board, superintendent or chief administrative officer shall charge a reasonable use fee for the lease of the school property, which may include goods contributed or services rendered by the person, group or organization to the school district. B. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may permit the uncompensated use of school buildings, grounds, buses, equipment and other school property by any school related group, including student political organizations, or by any organization whose membership is open to the public and whose activities promote the educational function of the school district as determined in good faith by the school district's governing board, or the superintendent or chief administrative officer with the approval of the governing board, including extended day resource programs, except as provided in section 15-511. C. A school district and its employees, including the governing board, superintendent or chief administrative officer, are immune from civil liability with respect to all decisions made and actions taken to allow the lease or use of school property, unless the school district 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. D. A person, group or organization that is otherwise eligible to lease school property shall not be denied use of or charged differentiated fees for school property on the basis of the person's, group's or organization's beliefs, expression of beliefs or exercise of the rights of association that are protected under the laws of this state, the Constitution of Arizona, the laws of the United States or the United States Constitution. E. The governing board shall annually approve a fee schedule for the lease of school property. The fee schedule shall include a designation of the persons, groups or organizations that shall have uncompensated use of the school property, and a procedure for determining the value of goods and services being provided as compensation for the use of school property. The governing board, superintendent or chief administrative officer shall require proof of liability insurance for such use or lease of school property. F. Except as provided in section 15-1102, monies received for and derived from the use or lease of school property under this section shall be promptly deposited with the county treasurer who shall credit the deposits to the civic center school fund of the respective school district. Monies placed to the credit of a civic center school fund may be expended for civic center school purposes by warrants drawn upon order of the school district governing board, or the superintendent or chief administrative officer with the approval of the governing board. The civic center school fund of a school district or multiple school district civic center school program is a continuing fund not subject to reversion, except upon termination of a civic center school program. Upon termination of a civic center school program, any remaining funds shall revert to the school plant fund of the school district or districts. G. For the purposes of this section: 1. "Educational function" means uses that are directly related to the educational mission of the school district as adopted by the school district governing board and includes parent-teacher organizations, youth organizations and school employee organizations. 2. "Extended day resource programs" means activities offered on school property before or after school or at times when school is not customarily in session for children who are of the age required for kindergarten programs and grades one through eight. The program may be offered for children who are of the age required for a kindergarten program or for one grade or for any combination of kindergarten programs and grades. Activities may include physical conditioning, tutoring, supervised homework or arts activities. 3. "Reasonable use fee" means an amount that is at least equal to the school district's cost for utilities, services, supplies or personnel that the school provides to the lessee pursuant to the terms of the lease. 15-1106. Permanent teacherage fund; uses; definition A. A school district governing board, or the superintendent or chief administrative officer with the approval of the governing board, may establish a permanent teacherage fund. Such fund shall be comprised of proceeds obtained from the lease of teacherages within the school district. Monies in such fund may be used for any of the following purposes: 1. Maintenance and operation of teacherages. 2. Debt service related to teacherages. 3. Purchase of houses, including mobile or modular housing, to be used exclusively as teacherages for school districts located on Indian and federal lands. 4. Reduction of the local tax levy if accumulation in such fund warrants such use. B. Monies in a permanent teacherage fund are not subject to reversion. C. For the purposes of this section, "teacherage" means any housing facilities for teachers and other school employees provided by a school district pursuant to section 15-342, paragraph 6. 15-1107. Litigation recovery fund; disposition of proceeds A. Monies received for and derived from settlement of legal controversies or from recovery of costs, attorney fees or damages by a school district in litigation by or against the school district shall be deposited with the county treasurer who shall credit the deposits to the litigation recovery fund of the school district. The litigation recovery fund is a continuing fund that is not subject to reversion. B. If a school district receives monies as provided in subsection A of this section for the purpose of replacing or repairing school buildings or other school property, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds to: 1. Reimburse the building renewal grant fund established by section 41-5731 or the emergency deficiencies correction fund established by section 41-5721 to the extent that monies were received from those funds for replacing or repairing school buildings or other school property that was the subject of the dispute and the monies recovered by the school district pursuant to subsection A of this section are designated for the replacement or repair. The school district shall prioritize the reimbursement as described in this paragraph, if applicable. 2. Pay any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district. 3. Construct, acquire, improve, repair or furnish school buildings after notice. If the proceeds are applied to a project that costs more than $250,000, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds after notice and a hearing. 4. Replace or repair the school property other than school buildings. C. If a school district receives monies as provided in subsection A of this section for purposes other than those provided in subsection B of this section, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds of litigation recoveries: 1. To procure legal services or for the costs of litigation. 2. For remedial measures reasonably related to a legal controversy or litigation by or against the school district. D. After all other expenditures authorized under this section, a school district may use monies remaining in the school district's litigation recovery fund for maintenance and operation or unrestricted capital outlay. 15-1108. District services fund A. A school district governing board may establish district services programs to provide goods or services, excluding services provided pursuant to section 15-213, to district schools or departments or other school districts and may charge users on a cost reimbursement basis. Revenues from the operation of a district services program shall be transmitted to the county treasurer for deposit in a district services fund. The governing board may employ personnel, purchase supplies and equipment and incur other necessary expenses related to the operation of a district services program. Examples of district services programs include printing and duplicating, data processing and motor pool services. B. A district services fund shall be accounted for as prescribed in the uniform system of financial records pursuant to chapter 2, article 4 of this title. A school district governing board may advance monies from the maintenance and operation fund into the district services fund to cover start-up costs. Monies in the district services fund are not subject to reversion at the end of the fiscal year. The governing board may direct the county treasurer to establish a separate fund pursuant to this section for each district services program. C. A school or department may choose not to purchase services from a district services program if the school or department determines that it is more advantageous for the school or department to procure the services from another source. D. The provisions of this section shall not be utilized to replace services provided to a school district by a private enterprise as defined in section 41-2751. 15-1121. Student activities monies defined All monies raised with the approval of the governing board of a school district by the efforts of students in pursuance of or in connection with all activities of student organizations, clubs, school plays or other student entertainment other than funds specified in sections 15-1125 and 15-1126 are student activities monies. 15-1122. Student activities treasurer; assistant student activities treasurer; administration of student activities monies A. The governing board of any school district having student activities monies shall establish a student activities fund and appoint a student activities treasurer. The student activities treasurer shall deposit the student activities monies in a bank account designated the student activities account or in an account with the county treasurer pursuant to section 15-996 that is designated as other monies. In school districts that have multiple schools the governing board may designate an assistant student activities treasurer for each school. Each assistant student activities treasurer shall deposit student activities monies in the school district's student activities bank account, in the account with the county treasurer or in student activities bank accounts established separately for each school. Disbursements from the student activities accounts shall be by check, signed by two persons, one of whom shall be either the student activities treasurer or an assistant student activities treasurer and one of whom shall be any other person authorized to sign by the governing board. For school districts that do not assume accounting responsibility pursuant to section 15-914.01, disbursements may be made by county warrants issued pursuant to section 15-304 and designated as other monies. The governing board may appoint more than one person to act as cosigner with the student activities treasurer or assistant student activities treasurer. Any disbursement shall be authorized by or on behalf of the student members of the particular club or organization as provided in the uniform system of financial records. The student activities treasurer and assistant student activities treasurers shall give bonds in an amount determined by the governing board, and the cost of bond premiums shall be a charge against the school district. B. Accounts showing the balances due the respective student organizations as provided in section 15-1121 shall be kept by the student activities treasurer and assistant student activities treasurers and shall be open to inspection by officers of the student bodies concerned. 15-1123. Record of revenues and expenditures A. The student activities treasurer or assistant student activities treasurer shall maintain an accurate detailed record of all revenues and expenditures of the student activities fund. The record shall be made in such form as the governing board of the school district prescribes. Copies of the record shall be presented to the governing board of the school district not less than once during each calendar month. B. Student activities fund monies may be invested and reinvested by the governing board of a school district. All monies earned by investment shall be credited to the student activities fund of the school district. 15-1124. Student activities revolving fund for expenses The governing board of a school district may, by resolution entered upon its minutes, establish a revolving fund for the purpose of meeting necessary current expenses connected with student activities as defined by this article. The amount of the revolving fund shall be determined by the governing board which establishes the fund and provision for its establishment shall be included in the budget. The amount of monies provided in the revolving fund shall, at the end of each fiscal school year, be returned to the credit of the school district and the fund reestablished as provided in this section. 15-1125. Auxiliary operations fund defined The auxiliary operations fund shall consist of all monies raised with the approval of the school district governing board in pursuance of and in connection with all activities of school bookstores and athletic activities. 15-1126. Accounting; deposit; disposition of monies A. Auxiliary operations fund monies shall be accounted for in accordance with the requirements of the uniform system of financial records. B. Auxiliary operations fund monies shall be deposited after authorization by the governing board in a bank account designated as the auxiliary operations fund or in an account with the county treasurer pursuant to section 15-996 that is designated as other monies. Disbursements from the fund shall be authorized by the governing board. Disbursements shall be made by check signed by two employees of the school district designated by the governing board. For school districts that do not assume accounting responsibility pursuant to section 15-914.01, disbursements may be made by county warrants issued pursuant to section 15-304 and designated as other monies. Persons authorized by the governing board to sign checks shall give a bond in an amount determined by the governing board, and the cost of bond premiums may be a charge against the fund. C. Auxiliary operations fund monies may be invested and reinvested by the governing board of a school district. All monies earned by investment shall be credited to the auxiliary operations fund of the school district. D. The governing board may establish an imprest petty cash fund at each school within the school district for activities that require immediate cash outlays for postage, freight, express, parcel post, travel or other minor disbursements, but not including salaries or wages, and that are proper as ultimate expenditures from the school district auxiliary operations fund. Imprest petty cash funds established by the governing board shall be funded from the school district auxiliary operations fund in an amount to be determined by the governing board. E. The governing board may establish a revolving fund bank account for each school within the school district for necessary current expenditures in connection with school bookstore and athletic activities. The revolving funds shall be funded from the auxiliary operations fund in an amount to be determined by the governing board. The school shall return the monies in the revolving fund bank account at the end of each fiscal year to the credit of the school district auxiliary operations fund. 15-1141. Definitions In this article, unless the context otherwise requires: 1. "Community school" means any school engaged in a community school program. 2. "Community school monies" means monies received as fees, tuitions, grants or donations from any person or agency for a community school program. 3. "Community school program" means the involvement of people in the development of an educationally oriented community. The community school serves the purposes of academic and skill development for all citizens, furnishes supervised recreational and avocational instruction, supplies remedial and supplemental education, furnishes meeting places for community groups and provides facilities for the dissemination of a variety of community related services, including extended day resource programs as defined in section 15-1105. 15-1142. Powers of the governing board The governing board of any school district may: 1. Establish and operate a community school program in any school in its school district. 2. Budget and expend from the maintenance and operation section of the budget, as defined in section 15-903, to employ a qualified director necessary for each school or combination of schools engaged in community school programs. 3. Expend community school monies for operation of a community school program. 4. Establish tuition and fee charges for community school programs. 15-1143. Community school program fund Monies deposited in a community school fund of a school district may be used for community school programs only and are not subject to reversion, except upon termination of a community school program. Upon termination of a community school program any remaining funds shall revert to the operating budget of the school district. 15-1151. Definition of school meal programs In this article, unless the context otherwise requires, "school meal programs" means programs under which meals are served by a public or private school on a nonprofit basis to children in attendance, including a program under which federal assistance is received. 15-1152. School meal programs; nonschool meal programs; powers of state board of education The state board of education may enter into agreements with an agency of the federal government, a governing board or another agency or person, direct the disbursement of federal and state monies in accordance with federal and state law, direct the distribution of commodities as provided by federal and state law, prescribe regulations, employ personnel, give technical advice and assistance to governing boards in connection with establishment and operation of school meal programs, assist in training personnel engaged in operation of school meal programs and take other action it deems necessary to provide for the establishment and maintenance of school meal programs. The state board of education and the governing boards may also accept gifts for use in connection with a school meal program. Agreements entered into pursuant to this section are exempt from section 11-952, subsection D. The form to be used in the agreements shall be approved annually by the attorney general before its use in such agreements. The department of education shall file with the secretary of state by January 1 one blank copy of the agreement form and a list of the agencies with which the department entered agreements during the preceding year. 15-1153. Federal funds; acceptance; disbursement A. The state board of education may accept and direct the disbursement of funds appropriated by act of Congress and apportioned to the state for use in connection with school meal programs. The state board shall deposit, pursuant to sections 35-146 and 35-147, such funds in the school meal program fund. Disbursements from the fund shall be made in accordance with the provisions of section 35-185. B. Notwithstanding any provision of title 35, chapter 1 limiting the drawing of warrants after the expiration of the fiscal year in which an obligation is incurred, the state board of education may accept and direct the allocation of federal funds apportioned to the state for use in connection with school meal programs, which are received and the allocation effected not later than six months after expiration of the fiscal year for which the allocation is made. 15-1154. Operation of school meal programs by governing boards; school meal program fund; revolving fund A. A governing board may operate school meal programs, and for that purpose may employ personnel, purchase equipment and food and incur other necessary expenses, making payment therefor through the use of gifts or donations, proceeds of sales of school meals, contributions made available by the federal government or monies obtained by school district levy, but no monies acquired by the levy of state, county or school district taxes shall be expended for food. B. Any monies received in the operation of a school district school meal program shall be deposited with the county treasurer who shall credit the deposits to the school meal program fund of the respective school district. Monies deposited to the credit of a school meal program fund may be withdrawn by voucher as approved by the governing board for operation of the school district school meal program, except that a revolving fund of five hundred dollars may be established in the manner and for the purposes prescribed in subsection C of this section. The school meal program fund of a school district is a continuing fund not subject to reversion. C. The governing board of any school district with the consent of the county school superintendent may establish for the operation of school meal programs a revolving fund of five hundred dollars which may be used for payment of freight on commodities, purchase of food required in emergencies, employment of temporary personnel for employment which does not exceed eight hours for any person or other minor disbursements. The revolving fund monies shall be deposited in a federal reserve bank in a designated account and shall be withdrawn by check signed by two bonded employees appointed by the governing board of the school district. D. Upon approval of a revolving fund as prescribed by subsection C of this section, the county school superintendent shall draw a warrant to the order of the designated employees and charge the amount thereof against the school district school meal program fund, but no revolving fund shall be established unless the designated employees are bonded for an amount equal to twice the amount of the fund. The cost of the bond shall be a proper charge against the school district school meal program fund. E. The designated employees shall periodically submit a voucher with supporting papers covering disbursements from the school meal revolving fund prescribed by subsection C of this section to the county school superintendent who shall issue a warrant for the voucher to reimburse the fund. If the school district is dissolved, consolidated, unified or subdivided, or if the governing board decides to terminate the revolving fund, the designated employees shall return the original amount of the revolving fund to the county treasurer by the date that the dissolution, consolidation, unification or subdivision becomes effective or within thirty days after the date that the governing board decides to terminate the revolving fund, whichever is appropriate, for deposit in the school meal program fund of the respective school district. 15-1155. Records, reports, regulations, audits and inspections by state board of education The state board of education shall prescribe regulations for keeping accounts and records and making reports, under the supervision of governing boards. The accounts and records shall be available at all times for inspection and audit by authorized officials and shall be preserved for a period, not exceeding five years, as prescribed by the state board. The state board shall conduct or cause to be conducted audits, inspections and administrative reviews of accounts, records and operations as are necessary to determine whether the school meal programs are being administered according to the provisions of this article and the regulations made by the state board. 15-1157. Inclusion of expenses in budget of superintendent of public instruction There shall be included in the budget of the superintendent of public instruction, for presentation to the legislature, such amounts as required by the state board of education for and limited to the administration of this article, including the establishment, maintenance, operation and expansion of school meal programs. 15-1158. Agreements for meals for persons sixty years of age or older A. The governing board of any school district may enter into an agreement with any individual, firm, partnership, corporation, association or public agency whereby the school district agrees to prepare meals for persons sixty years of age or older and their spouses, or any group of such persons, by utilizing the systems and procedures already developed for use in the school meal programs of such school district. B. An agreement entered into by a governing board of a school district, pursuant to the provisions of this section, shall not: 1. Involve the expenditure by the school district of any federal or state school meal monies or other school monies or the use of any school meal commodities or school district personnel, equipment or facilities unless the agreement includes a provision requiring full reimbursement for such expenditure. 2. Provide for payment to the school district of any amount in excess of the estimated cost of food, personnel, equipment, facilities and other necessary expenditures involved in the performance of the agreement. 3. Permit any program of meals for persons sixty years of age or older and their spouses to interfere in any way with the use of school meal facilities for school purposes. C. The department of education may cooperate with any individual, firm, partnership, corporation, association or public agency in the planning of programs whereby school districts may prepare meals for persons sixty years of age or older and their spouses, or any group of such persons, by utilizing the systems and procedures already developed for use in the operation of school meal programs. D. The department of education shall adopt regulations containing guidelines for governing boards of school districts entering into such agreements. 15-1171. Trust assets of Arizona rural rehabilitation corporation; transfer to state board of education The state board of education is designated as the state agency empowered to make application to the secretary of agriculture of the United States, or any other proper federal official, pursuant and subject to the provisions of act of May 3, 1950 (P.L. 81-499; 40 U.S.C. sec. 440 et seq.) for the trust assets, either funds or property, held by the United States as trustee on behalf of the Arizona rural rehabilitation corporation. 15-1172. Arizona youth farm loan fund Notwithstanding any other law, funds and the proceeds of the trust assets shall be received by the state board of education and shall be deposited, pursuant to sections 35-146 and 35-147, in a special fund to be known as the Arizona youth farm loan fund that is maintained as a revolving fund and that is appropriated for continuing expenditure or obligation as provided by this article. 15-1173. Use of funds A. Except as provided in subsection C of this section, monies in the Arizona youth farm loan fund may be used only for such of the rural rehabilitation purposes as are permissible under the Arizona rural rehabilitation corporation's charter as it appeared during the calendar year 1960 and as may from time to time be agreed upon by the state board of education and the secretary of agriculture of the United States or his delegate, including but not limited to furnishing financial assistance to deserving young persons under twenty-five years of age who are students or former students of vocational agriculture or young farmers in organized vocational agriculture classes in becoming satisfactorily established in farming through guaranteed loans, if they cannot obtain needed financing elsewhere on reasonable rates and terms. B. Administrative expenses of carrying out the provisions of this article, including but not limited to salaries, capital outlay, professional services, travel and current expenditures, shall be paid from annual appropriations made by the legislature to the state board of education, and no part of the trust funds as provided by subsection A of this section may be used for any purpose not expressly listed in subsection A or C of this section. C. On notice from the state board of vocational education, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. 15-1174. Powers and duties The state board of education on behalf of the state of Arizona is authorized and empowered to: 1. Collect, compromise, adjust or cancel claims and obligations arising out of or administered under this article or under any mortgage, lease, contract or other agreement entered into or administered pursuant to this article and, if in its judgment necessary and advisable, pursue the same to final collection in any court having jurisdiction. 2. Bid for and purchase at any execution, foreclosure or other sale, or otherwise to acquire, property upon which the state board has a lien by reason of a judgment or execution, or which is pledged, mortgaged or conveyed or which otherwise secures any loan or other indebtedness owing to or acquired by the state board under this article. 3. Accept title to any property so purchased or acquired, to operate or lease such property for such period as may be deemed necessary to protect the investment therein and to sell or otherwise dispose of such property in a manner consistent with the provisions of this article. 15-1175. Liability The United States, and the secretary of agriculture thereof, shall be held free from liability by virtue of the transfer of the assets to the state board of education pursuant to this article. 15-1181. Definitions In this article, unless the context otherwise requires: 1. "Child" means a person who is at least three years of age by September 1 of the current year but who is under twenty-two years of age. 2. "Foster parent" means a person who may serve as the parent of a child with disabilities if that person has an ongoing, long-term parental relationship with the child, is willing to make educational decisions for the child and has no personal interest that would conflict with the interests of the child. 3. "Fund" means the special education fund. 4. "Home school district" has the same meaning prescribed in section 15-761. 5. "Individualized education program" has the same meaning prescribed in section 15-761. 6. "Parent" means the natural or adoptive parent of a child, the legal guardian of a child, a relative with whom a child resides and who is acting as the parent of that child or a surrogate parent who has been appointed for a child pursuant to section 15-763.01. Parent does not mean this state if the child is a ward of the state. 7. "Place" or "placement" means placement of a child in a private residential facility for residential special education placement as defined in section 15-761 or by a state placing agency for care, safety or treatment reasons. 8. "Private residential facility" means a private facility that is licensed by the department of economic security or department of health services and to which one of the following also applies: (a) For special education placements, the facility has been approved by the division of special education pursuant to section 15-765 for the purpose of providing special education and related services. (b) For other than special education placements, the facility has been accredited by the north central association of colleges and secondary schools, except that private facilities applying for initial approval as a private school are not required to receive accreditation until three years after the date of initial approval as long as continual progress toward accreditation is maintained. 9. "Related services" means related services as defined in section 15-761. 10. "Residential special education placement" has the same meaning prescribed in section 15-761. 11. "Special education" has the same meaning prescribed in section 15-761. 12. "State placing agency" means the department of juvenile corrections, the department of economic security, the department of child safety, the Arizona health care cost containment system or the administrative office of the court. 15-1182. Special education fund; administration A. There is established a special education fund, which shall consist of legislative appropriations made to the fund for purposes of this section and section 15-1202. B. The fund shall be administered by the superintendent of public instruction for the purposes provided in this article and article 7 of this chapter. C. Each fiscal year the state board of education shall include in its budget request for assistance to schools a separate line item for the fund. D. The fund shall provide monies for the education of a child who has been placed in a residential facility by a state placing agency or who requires a residential special education placement as defined in section 15-761. E. If a child has been placed in a residential facility by a state placing agency, the fund shall provide monies for the following types of vouchers: 1. Initial residential education vouchers to fund the educational costs for any child, whether or not eligible for special education. This paragraph applies to a child who has been placed in a residential facility and who has either not received a comprehensive education evaluation as provided in section 15-766, who has previously received such an evaluation and was determined to be ineligible for special education services or who is eligible for special education and for whom necessary procedures for changing the child's educational placement must be completed. This voucher expires on the expiration of sixty calendar days or completion of the educational evaluation or review of special education placement, whichever occurs first. 2. Continuing residential education vouchers that fund the educational costs for any child, whether or not eligible for special education, who requires placement in a residential facility after the expiration of the initial education voucher and who is not eligible for a residential special education voucher. F. When a school district makes a residential special education placement, the fund shall provide monies to fund the residential special education placement. G. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Any monies left unexpended may be distributed to school districts by the department of education for the following purposes: 1. To provide educational counseling, training and support services to a child with a disability in order to maintain the child's educational placement in the least restrictive environment. 2. To provide educational transition assistance to children who return to their home after placement in a residential facility. 3. To train personnel for and develop and implement model programs for use by school districts to serve children with emotional disabilities. H. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for the purposes of this article shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This article shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose. 15-1183. Placement; voucher application requirements A. A voucher may not be issued pursuant to this article and a residential special education placement may not be made in a private residential placement facility unless the requirements of section 15-765, subsection G have been met. B. If a state placing agency places a child in a private residential facility for care, safety or treatment reasons, the state placing agency is responsible for requesting an initial residential education voucher and notifying the home school district of the placement. The home school district is responsible for completing screening or other identification procedures for determining if the child is a child with a disability as defined in section 15-761 and for reviewing the placement of a child with a disability to determine whether a residential special education placement is necessary. Responsibility for monitoring the educational services during the time a child is placed in the residential facility and for planning for transition from the private residential facility to a public school remains with the home school district. C. An initial residential education voucher may be extended for good cause, as determined by the director of the division of special education, on application by the home school district. If an extension is denied or a home district fails to complete the requirements for a continuing residential education voucher, the home school district is responsible for payment of educational costs until the requirements of subsection B of this section have been met. D. In order to receive a continuing residential education voucher, an evaluation pursuant to section 15-766 must be conducted and the following must occur: 1. The home school district shall provide prior written notice to the parent indicating that the child is or is not eligible for special education and shall submit to the department of education a copy of the prior written notice, the evaluation from which the eligibility decision is made and, if the child is eligible for special education but does not require residential special education placement, a copy of the individualized education program indicating the special education to be provided while the child is placed in the residential facility. If the child requires a residential special education placement, section 15-765, subsection G applies. 2. On receipt from the home school district of the documentation specified in paragraph 1, the department of education shall convert the initial residential education voucher to a continuing residential education voucher that is valid for no longer than the remainder of the school year during which it is issued. 15-1184. Vouchers; requirements; budgets; prohibited uses A. The director of the division of special education shall develop requirements for the approval of vouchers, as provided in this section, including the following: 1. For a special education residential placement voucher, documentation that the requirements of section 15-765 have been met. 2. For an initial residential education voucher, documentation that the requirements of section 15-1183, subsection B have been met. 3. For a continuing residential education voucher, documentation that the requirements of section 15-1183, subsection C have been met. B. The home school district shall consider recommendations from the state placing agency when determining whether the child should be placed solely in the private residential facility or should be placed for part of the school day in a school operated by a school district as provided in section 15-1185. C. The private residential facility must demonstrate that previously received voucher monies were spent appropriately. D. If approved, the appropriate voucher shall be issued in an amount not exceeding the sum of the following and shall be paid directly to the private residential facility in a manner prescribed by the superintendent of public instruction: 1. For group A and for placements not requiring special education services, the base level multiplied by two. 2. For group B, the sum of the support level weight as provided in section 15-943, paragraph 2, subdivision (a) for kindergarten programs through grade eight or for grades nine through twelve, whichever is appropriate, and the support level weight for the category, multiplied by the base level. 3. For both group A and group B, two hundred forty dollars for capital outlay costs or related services and fifty dollars for transportation or related services costs. Beginning with fiscal year 1991-1992, the amounts provided in this paragraph for capital outlay and transportation are increased by the growth rate prescribed by law, subject to appropriation. E. When an initial residential education voucher expires the funding for the initial residential education voucher shall be paid directly to the private facility from the date of initial placement until the date on which the voucher expires pursuant to section 15-1183. F. For the purpose of this article, the chief official of each state placing agency and the superintendent of public instruction shall jointly prescribe a uniform budgeting format to be submitted by each private institution and to be used in determining instructional costs and residential costs of persons placed. G. Any residential special education placement or residential education voucher issued pursuant to this article shall not be used in any private residential facility that discriminates on the basis of race, religion, creed, color, national origin or disability. H. Voucher monies shall only be spent to provide education and related services to children placed as provided in this article. The state board of education may withhold funding from an institution for noncompliance with any applicable statute or any applicable rule adopted by the state board. I. The individualized education program for any child requiring a residential special education placement must include exit criteria that indicate when the educational placement of the child shall be reviewed in order to determine whether the child can be moved to a less restrictive placement. 15-1185. School district responsibility; integration into a school A. For a child who is placed in a private residential facility pursuant to this article, the home school district is responsible for reviewing the child's educational progress and planning for integrating the child into a public school when it is educationally appropriate. B. The private residential facility and the state placing agency shall work with the home school district for purposes of integrating the child into a public school when it is educationally appropriate. C. If a child who has been placed in a private residential facility for care, safety or treatment reasons attends a public school in other than the home school district on either a part-time or full-time basis, the residential education voucher terminates. If the child attends school in the residential facility on a part-time basis, the school district of attendance must either provide direct services in the residential facility or contract with the residential facility for that portion of educational services that the private residential facility is to provide. D. If a child who requires residential special education placement is placed outside of the home school district and is able to attend a nonresidential school on a part-time basis, the residential special education placement voucher terminates. The school district of attendance shall pay a prorated tuition amount to the private residential facility. 15-1201. Definitions In this article, unless the context otherwise requires: 1. "Fund" means the special education fund established by section 15-1182. 2. "Institution" means the Arizona state schools for the deaf and the blind, the Arizona training program facilities as provided in section 36-551 and the Arizona state hospital. 3. "Place" or "placement" means placement of a person in an institution, as defined in this section, for special education only or for special education and residential and custodial care. 4. "Special education" means the adjustment of the environmental factors, modification of the course of study and adaptation of teaching methods, materials and techniques to provide educationally for those children who are at least three but not more than twenty-one years of age and who are gifted or have a disability to such an extent that they do not profit from the regular course of study or need special education services in order to profit. Difficulty in writing, speaking or understanding the English language due to an environmental background in which a language other than English is spoken primarily or exclusively shall not be considered a sufficient handicap to require special education. 15-1202. Special education fund account; administration; expenditure limitation A. There is established a separate account within the fund which shall consist of legislative appropriations to the account for special education institutional vouchers. B. The account shall be administered by the superintendent of public instruction for the purposes provided in this article. C. Each fiscal year the state board of education shall include in its budget request for assistance to schools a separate line item for the account. D. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for the purposes of this article shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This article shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose. 15-1203. Placement; requirements A. No child may be placed for the purpose of special education in an institution unless the institution has applied for and had issued a voucher pursuant to this article. Initial approval for placement shall be given when evaluation information, a copy of the individualized education program and placement documentation are provided to the special education section of the department of education. These documents shall be maintained by the school district or charter school and the receiving institution. B. A school district may make an interim placement of an eligible child in an institution pursuant to an interim individualized education program. For purposes of this subsection, "interim placement" means placement of a child in an institution for a period of time not to exceed sixty days for the purpose of completing an educational evaluation as required by section 15-766 and making a specific placement. C. No child who is a resident of an institution may be placed in a school special education program unless the school has applied for and had issued a special education institutional voucher pursuant to this article. 15-1204. Voucher; application; approval; requirements; budgets; prohibited uses; advances A. When an institution decides to place a person in an institutional special education program, the institution, upon application to and approval by the division of special education, shall have a permanent special education institutional voucher issued pursuant to this article to pay the special education instructional costs of the person at the institution. B. When an institution decides to place a person who resides in the institution in a school special education program, the school, upon application to and approval by the division of special education, shall have a permanent special education institutional voucher issued pursuant to this article to pay the special education instructional costs of the person in the school. C. No person residing in an institution and attending a school may have a certificate of educational convenience issued pursuant to section 15-825, subsection A. D. The director of the division of special education shall develop requirements for the approval of vouchers, pursuant to this section, including the requirement that the person be educationally evaluated. E. If approved, the voucher, in an amount not exceeding the sum of the following, shall be paid directly to the institution or deposited with the county treasurer to the credit of the school, with notice to the county school superintendent: 1. For group A, the base leve