USA Statutes : arizona
Title : Education
Chapter : COMMUNITY COLLEGES
15-1401 Definitions
In this chapter, unless the context otherwise requires:
1. "Accredited" means accredited by a regional accrediting agency recognized by the
United States department of education or by the council on postsecondary accreditation.
2. "Additional short-term classes" means those classes which are not in session on
the forty-fifth day of the fall or spring semester, which commence at various times
during the fiscal year and which are offered over a period of less than sixteen weeks.
3. "Budget year" means the fiscal year for which the community college district is
budgeting and which immediately follows the current year.
4. "Community college" means an educational institution that is operated by a
district board and that provides a program not exceeding two years' training in the arts,
sciences and humanities beyond the twelfth grade of the public or private high school
course of study or vocational education, including terminal courses of a technical and
vocational nature and basic adult education courses.
5. "Current year" means the fiscal year in which the community college district is
operating.
6. "District" means a community college district that is established pursuant to
sections 15-1402 and 15-1403 and that is a political subdivision of this state and,
unless otherwise specified, includes provisional community college districts established
pursuant to section 15-1409.
7. "District board" means the community college district governing board.
8. "Full-time equivalent student" means student enrollment for fifteen community
college semester credit units per semester.
9. "Open entry, open exit classes" means those classes in which students enter or
exit based on mastery of specified competencies and which commence at various times
during the fiscal year.
10. "Operational expense budget" means the budget as adopted by the district board
pursuant to section 15-1461.
11. "Operational expenses" means the administration, instruction, operation of
community college plant, maintenance of community college plant, fixed charges and
contingencies incurred in the operation of a district exclusive of all capital outlay
items, special levies, auxiliary enterprise funds, restricted funds and bond service
items.
12. "Provisional community college district" means a community college district
organized pursuant to section 15-1409.


15-1402 Community college districts; requirements
A. Community college districts may be organized under the provisions of this
chapter for a single county, two or more contiguous counties or an existing community
college district and contiguous counties not part of any community college district if
the proposed district has a primary assessed valuation, based on the valuation for the
preceding year, of at least four hundred forty-eight million, seventeen thousand, two
hundred dollars and a minimum population of forty thousand persons who are fifteen or
more years of age, as determined by the most recent federal census.
B. Beginning with fiscal year 1993-1994, the minimum primary assessed valuation
required to organize a community college district as provided in subsection A increases
each year by the percentage change in total primary assessed valuation for all of the
districts with a population of less than five hundred thousand persons according to the
most recent United States decennial census using actual primary assessed valuation
numbers from the prior two years.

15-1403 Procedure to form a district
A. For the purpose of forming a district, not less than ten per cent of the
qualified electors in the territory included in the proposed district, or where a
district consists of more than one county not less than ten per cent of the qualified
electors in each county, shall petition the county school superintendent for the
establishment of the district. Where a district consists of more than one county, the
signatures of the qualified electors on the petition shall be submitted to the county
school superintendent of the county of which the qualified electors are residents,
provided that the county school superintendent of the county with the larger population,
as determined by the most recent federal census, shall be the custodian of the completed
petition. The petition shall set forth the name of the proposed district and its
boundaries. The county school superintendent shall verify the signatures thereon,
provided that whenever a proposed district consists of more than one county the county
school superintendent of the county with the least population shall verify the signatures
on the petition from his county prior to submitting the petition to the county school
superintendent of the county with the larger population.
B. The county school superintendent who is the custodian of the completed petition
shall transmit the petition to the county board of supervisors, or if the district
consists of more than one county, to the county board of supervisors of the county with
the largest population, which shall determine whether the proposed district meets the
minimum standards of assessed valuation and population as provided in section 15-1402.
C. If the county board of supervisors determines that the proposed district meets
the minimum standards of assessed valuation and population prescribed in subsection B of
this section, the county, or counties, shall call and conduct an election, as prescribed
in this article. If the majority of the votes cast in the proposed district, consisting
of one county, favors the formation of the district, such a district is deemed to be
formed, as provided in section 15-1404. Where the proposed district consists of more than
one county there shall be a majority of the votes cast in each county favoring the
formation of the district before the district is deemed to be formed, as provided in
section 15-1404. 15-1404 Election to determine formation of district; notice; canvass
A. Upon approval of the proposed district, the county board of supervisors shall
return the petition with its approval to the county school superintendent, or if the
proposed district consists of more than one county, to the county school superintendent
of the county with the larger population, as determined by the most recent federal
census. The county school superintendent shall transmit notification of approval for
formation of the proposed district to the board of supervisors which shall submit the
question to the qualified electors of the county at the next general election or at a
special election called for that purpose. If a special election is called, notice
thereof shall be given by publication for at least two weeks in a newspaper of general
circulation published in the county or counties of the proposed district. The election
shall be conducted and returns shall be made in the manner provided by law for special
elections.
B. A special election conducted pursuant to this section shall be held on a date
prescribed by section 16-204.
15-1405 Presentation of plan to legislature by county board of supervisors
The county board of supervisors shall present a plan to the legislature for
formation and establishment of a community college district no later than January 15
subsequent to the election held as provided in section 15-1404. 15-1406 District board members and employees; compensation; payment of expenses for employment candidates
A. Sections 38-608, 38-609, 38-610 and 38-613 relating to all public officers and
employees apply to district board members and district officers and employees. Except as
otherwise provided in subsection B, the other provisions of title 38, chapter 4 relating
to public officers and employees of this state do not apply to district board members or
district officers or employees.
B. The district board may permit a member, member-elect, officer or employee to
travel within or without the state for a community college district purpose and receive
reimbursement for lodging and subsistence and transportation expenses according to the
procedures and amounts established by the district board as long as the reimbursement
rates do not exceed the maximum amounts established pursuant to section 38-623 and
section 38-624, subsection C.
C. The district board may pay for the traveling, lodging and other travel related
expenses of candidates for employment with the district according to the policies and
procedures established by the district board.

15-1407 Formation of new district by subdivision of existing district; division of assets
A. If two or more contiguous counties have formed a community college district, a
new district may be formed in one or more of the counties by dissolution of the existing
district if each county in which a new district is formed meets the requirements
prescribed in section 15-1402. Except as provided in this section, the procedures for
dissolution of the district shall be as prescribed in section 15-1403 for the formation
of a district in more than one county.
B. The election shall be held as provided in section 15-1404, except that a
majority of the qualified electors in each of the counties in the existing district must
approve the dissolution of the existing district and the formation of the new district.
C. If a county is within a community college district which is dissolved pursuant
to this section and the county does not meet the requirements of section 15-1402, the
county is no longer part of an established community college district.
D. The district board of the existing district shall prepare a projected list of
assets for the existing district before the end of the fiscal year in which the election
is held. The district boards of the existing and new district shall prepare a final
statement of assets for the existing district as of the end of the fiscal year in which
the election was held. The district boards of the existing district and the new district
shall set aside sufficient assets or provide other means to satisfy the liabilities of
the existing district and approve the final division of all assets by September 15 of the
year in which the new district becomes operative.

15-1408 Use of community college district resources or employees to influence elections; prohibition; civil penalty; definition
A. A person acting on behalf of a community college district or a person who aids
another person acting on behalf of a community college district shall not use community
college district personnel, equipment, materials, buildings or other resources for the
purpose of influencing the outcomes of elections. Notwithstanding this section, a
community college district may distribute informational pamphlets on a proposed bond
election as provided in section 35-454. Nothing in this section precludes a community
college district from reporting on official actions of the governing board.
B. Employees of a community college district may not use the authority of their
positions to influence the vote or political activities of any subordinate employee.
C. This section does not prohibit community college districts from permitting
student political organizations of political parties, including those that are recognized
pursuant to sections 16-801, 16-802 and 16-803, to conduct lawful meetings in community
college buildings or on community college grounds, except as prescribed in subsection A
of this section. Each student political organization that is allowed to conduct lawful
meetings on community college property shall have equal access as any other student
political organization that is allowed to conduct lawful meetings on community college
property.
D. Nothing contained in this section shall be construed as denying the civil and
political liberties of any person as guaranteed by the United States and ARIZONA
Constitutions.
E. By January 1, 2006, the attorney general shall publish and distribute to
community colleges a detailed guideline regarding activities prohibited under this
section. The attorney general may distribute these guidelines through a web site or
electronically.
F. The attorney general or the county attorney for the county in which an alleged
violation of this section occurred may serve on the person an order requiring compliance
with this section and may assess a civil penalty of not more than five hundred dollars
per violation, plus any amount of misused funds subtracted from the community college
district budget against a person who violates or a person who aids another person in
violating this section. The person determined to be out of compliance with this section
shall be responsible for the payment of all penalties and misused funds. Community
college funds or insurance payments shall not be used to pay these penalties or misused
funds. All misused funds collected pursuant to this section shall be returned to the
community college district whose funds were misused.
G. An attorney acting on behalf of a community college district may request a legal
opinion of the county attorney or attorney general as to whether a proposed use of
community college resources would violate this section.
H. All penalties collected by the court for a suit initiated in superior court by
the attorney general shall be paid to the office of the attorney general for the use and
reimbursement of costs of prosecution pursuant to this section. All penalties collected
by the court for a suit initiated in superior court by a county attorney shall be paid to
the county treasurer of the county in which the court is held for the use and
reimbursement of costs of prosecution pursuant to this section.
I. For the purposes of this section, "misused funds" means community college
district monies or resources used pursuant to subsection A of this section. 15-1409 Provisional community college districts; formation; provisional community college district governing board; powers and duties; program termination
A. A provisional community college district shall contract with an existing
community college district to provide instructional and student services within the
provisional community college district.
B. The minimum assessed valuation and population requirements prescribed in section
15-1402 do not apply to provisional community college districts.
C. A provisional community college district shall be formed and a provisional
community college district board shall be elected in the same manner prescribed in
sections 15-1403, 15-1404 and 15-1441, except that the county board of supervisors by
majority vote may adopt a resolution to submit the question of the formation of a
provisional community college district and the approval of a proposed tax rate to fund
the provisional community college district directly to the qualified electors of the
county at a special or general election called for that purpose as prescribed in section
16-204 and title 35, chapter 3, article 3. The resolution adopted by the county board of
supervisors shall include a statement that the primary property tax levy limit for the
provisional community college district shall be no less than the levy limit of the most
recently formed community college district in this state.
D. Except as provided in this section, a provisional community college district
governing board has the same powers and duties specified in section 15-1444 for community
college districts.
E. A provisional community college district shall not award degrees, certificates
or diplomas.
F. A provisional community college district is not eligible to receive equalization
aid pursuant to section 15-1468 or state contribution for capital outlay for initial or
additional campuses pursuant to section 15-1463.
G. The state aid eligibility requirements prescribed in section 15-1466, subsection
G, paragraphs 1 and 2 do not apply to provisional community college districts.
H. Notwithstanding any other law, the same student shall not be counted twice as a
full-time equivalent student in both a provisional community college district and a
community college district. Notwithstanding any other law, beginning with the fiscal year
after the year in which the provisional community college district is formed and has
established its primary tax rate, a district that provides services in a provisional
district pursuant to section 15-1470 shall no longer count these students in the
district's full-time equivalent student count.
I. If a provisional community college district is converted into a community
college district by the formation of a community college district pursuant to section
15-1402, the provisional community college district is dissolved and any equipment,
property, personnel, liabilities and assets are transferred to the community college
district.
J. If a provisional community college district is formed in a county that provides
reimbursement for the attendance of nonresident state students pursuant to section
15-1469, that county shall continue to provide reimbursement payments to community
college districts for the remainder of the fiscal year in which the provisional community
college district is formed, provided that the county board of supervisors adopts a levy
that is at least equal to the sum of the reimbursement payments and the amount of the
community college services provided in the fiscal year immediately before the formation
of the provisional community college district.
K. The board of supervisors of a county that has formed a provisional community
college district may by majority vote enter into an intergovernmental agreement to loan
monies to the governing board of the provisional community college district in an amount
that does not exceed two hundred thousand dollars. Any loan pursuant to this subsection
shall be repaid from the next scheduled collection of property taxes to fund the
provisional community college district. The annual interest charges on any loan pursuant
to this subsection shall not exceed five per cent.
L. The provisional community college district program established by this section
ends on July 1, 2009 pursuant to section 41-3102.
15-1410 Credit and noncredit courses A. Courses offered for credit shall satisfy at least one of the following purposes and requirements: 1. Credit courses shall satisfy one or more of the following purposes: (a) Qualify students for a community college certificate or degree. (b) Be acceptable for transfer to a regionally accredited public or private college or university. (c) Prepare students with skills to seek entry level jobs in the field of specialization. (d) Improve the student's job skills or prepare the student for promotion in fields of employment. (e) Provide skills necessary for success in other college courses. (f) Provide continuing education and lifelong learning. 2. A credit course shall satisfy all of the following requirements: (a) A formal course outline that defines the objectives and content of the course shall be on file and available for audit. (b) Students shall be evaluated and given a grade based on their mastery of the objectives and content of the course. (c) Faculty teaching the course shall meet the standards set by the district to teach in the subject area of the course. (d) The credits awarded for completion of the course shall be based on the effort required of, and the competencies gained by, the students in accordance with policies adopted by the district governing board. (e) Before enrollment in the course, students shall have achieved prerequisite competencies as defined in the syllabus or approved course guidelines. (f) The course shall have been developed using the district's formal curriculum review procedure. (g) The course shall have an evaluation component. The results of this evaluation shall be used for the purposes of formative and summative evaluation by the institution. (h) A district board may adopt policies that allow students to receive credit through a variety of other means, including national standardized examinations and credit by evaluation or examination. B. Noncredit courses are courses that do not meet the criteria established in subsection A. Noncredit courses shall be the financial responsibility of the district. 15-1427 Annual report
By November 1 of each year, each community college district shall make a report for
the preceding fiscal year to the governor and the joint legislative budget committee and
shall provide a copy of this report to the secretary of state and the director of the
ARIZONA state library, archives and public records. The report shall set forth the state
of progress of the community colleges operated under this chapter, the courses of study
included in the curriculums, the number of professors and other instructional staff
members employed, the number of students registered and attending classes, the number of
full-time equivalent students enrolled during the year, the total number of students not
residing in the district, the amount of receipts and expenditures and such other
information as the governor and the joint legislative budget committee deem proper. 15-1441 Selection of precincts; district board members; terms; qualifications; vacancies
A. The board of supervisors shall establish in the same manner as provided in
section 16-411 five precincts in a community college district for the election of a
district board member from each precinct. A precinct in a community college district
shall be composed of the number of election precincts as determined by the board of
supervisors and shall have the same boundaries as are defined for the election precincts
under section 16-411. If the board of supervisors redefines the boundaries of election
precincts under section 16-411 which are included within a precinct in a community
college district, the board of supervisors shall redefine the boundaries of the precinct
in the community college district to conform with the election precinct changes. The
precincts shall be established in a newly organized district subsequent to the
organizational vote and the county school superintendent shall appoint five members, one
from each precinct, who are qualified electors.
B. Where two or more counties constitute a district, as many precincts shall be set
up by the board of supervisors in each county as the county is entitled to
membership. In no case shall a county which is part of a district have more than four
precincts, and where a district consists of two or more counties at least one member
shall reside in each county.
C. At the first general election held for a district, the candidate having the most
votes in each precinct shall be declared elected, provided the candidate meets the
requirements provided in subsection A of this section. The two elected members having
the highest number of votes receive six year terms, the two elected members receiving the
next highest number of votes receive four year terms and the one elected member receiving
the lowest number of votes receives a two year term. Thereafter each member's term is
six years.
D. The next general election of district board members following the first general
election shall be for the precinct where the elected candidate received the lowest number
of votes and the second general election for the two precincts where the elected
candidates received the next highest number of votes and the third general election for
the two precincts where the elected candidates received the highest number of votes. The
order of elections as established through this procedure shall thereafter be the order of
precinct elections.
E. Vacancies shall be filled by appointment by the county school superintendent for
the unexpired term for the precinct where the vacancy occurs, except that if the
unexpired term is two years or longer, the county school superintendent may do one of the
following:
1. Make an appointment for a term which shall be until the next regular election
for district board members, at which time a successor shall be elected to serve the
unexpired portion of the term.
2. With the approval of the district board, leave the vacancy until the next
regular election for governing board members, at which time a successor shall be elected
to serve the unexpired portion of the term.
F. When a vacancy occurs in a district with more than one county, the county school
superintendent of the county where the previous incumbent resided shall fill the
appointment for the unexpired term.
G. A county officer as provided in section 11-401 is not eligible to serve as a
member of a community college district governing board during his term of office.
H. Employees of a community college district or their spouses are not eligible to
hold membership on the community college district governing board in the district in
which the employee is employed.

15-1442 Nominating petitions; election; returns; results; certificate of election; statement of contributions and expenditures
A. Candidates for the district board must file nominating petitions, conforming to
the provisions set forth in section 16-314, with the appropriate county officer.
B. Members of the district board shall be elected at the time and place, and in the
manner, of general elections as provided in title 16.
C. The county school superintendent and the chairman of the board of supervisors
shall meet on the seventh day following the election to canvass the returns in accordance
with procedures for the canvass of returns in a general election. The county school
superintendent shall declare the results of the election, declare elected the person
receiving the highest number of votes for each office to be filled and issue to him a
certificate of election.
D. All candidates for the office of community college district governing board
member shall file with the clerk of the board of supervisors a statement of contributions
and expenditures as provided in section 16-913.

15-1443 Meetings; officers; immunity
A. Within twenty days after appointment of the first district board, the county
school superintendent, or county school superintendents by joint action where the
district consists of more than one county, shall call a meeting of the district board by
giving at least ten days' notice by registered or certified mail to each board
member. At the meeting the district board shall organize by electing a president and a
secretary from among its members and may transact any other business relating to the
affairs of the district.
B. Following the first election of members, the district board shall meet and
organize in January each year and shall hold regular meetings at such time and place as
the policies of the board provide. Special meetings may be held at the call of the
president or upon a call issued in writing signed by a majority of the members of the
district board.
C. Members of the district board are immune from personal liability with respect to
all acts done and actions taken in good faith within the scope of their authority during
duly constituted regular and special meetings. 15-1444 General powers of district governing boards
A. Except as otherwise provided, the district board shall:
1. Maintain each community college for a period of not less than eight months in
each year and, if the funds of the district are sufficient, maintain each community
college for a longer period.
2. Adopt policies in a public forum to offer programs that meet the educational
needs of the population served by the community college.
3. Enforce the courses of study prescribed by the district board.
4. Visit each community college under its jurisdiction and examine carefully into
its management, conditions and needs.
5. Exclude from each community college all books, publications or papers of a
sectarian, partisan or denominational character intended for use as textbooks.
6. Appoint and employ a chancellor or chancellors, vice-chancellors, a president or
presidents, vice-presidents, deans, professors, instructors, lecturers, fellows and such
other officers and employees it deems necessary. The district board may enter into
employment contracts with chancellors, vice-chancellors and presidents for a duration of
more than one year but not more than five years.
7. Determine the salaries of persons it appoints and employs.
8. Remove any officer or employee if in its judgment the interests of education in
this state require the removal.
9. Award degrees, certificates and diplomas upon the completion of courses and
curriculum as it deems appropriate.
10. Appoint or employ, if it deems necessary, police officers who shall have the
authority and power of peace officers. The police officers who have received a
certificate from the ARIZONA peace officer standards and training board are eligible for
membership in and benefits under either title 38, chapter 5, article 2 or the public
safety personnel retirement system under title 38, chapter 5, article 4.
11. Determine the location within the district of a community college and purchase,
receive, hold, make and take leases of, sell and convey real or personal property for the
benefit of the community colleges under its jurisdiction.
12. Obtain insurance or be self-insured, or a combination of insurance and
self-insurance, against loss, to the extent it is determined necessary on community
college buildings of the district. The local district shall have an insurable interest in
the buildings.
B. The district board may:
1. Administer trusts declared or created for the district and receive by gift or
devise and hold in trust or otherwise property wheresoever located, and if not otherwise
provided, dispose of the property for the benefit of the district.
2. Lease real property, as lessor or as lessee. If a district is the lessee, the
lease may contain an option to purchase the property. The district board may adopt
policies as are deemed necessary and may delegate in writing to the chancellor or
president of the district, or their designees, all or any part of its authority to lease
property under this paragraph. A district board shall not delegate the authority to
execute a lease that exceeds one hundred thousand dollars per year. Any delegation by
the district board pursuant to this paragraph may be rescinded in whole or in part at any
time by the district board.
3. Sue and be sued.
4. Contract. The district board may adopt such policies as are deemed necessary and
may delegate in writing to the chancellor or president of the district, or their
designees, all or any part of its authority to contract under this paragraph. Any
delegation of authority under this paragraph may be rescinded by the district board at
any time in whole or in part.
5. Construct, remodel and repair buildings.
6. In conjunction with other districts, establish policies for procurement of goods
and services.
7. Provide a plan or plans for employee benefits which may include optional
retirement programs pursuant to section 15-1451, subsection A, which allow for
participation in a cafeteria plan that meets the requirements of the United States
internal revenue code of 1986.
8. Accept grants or donations of monies from the United States, or from any of its
agencies, departments or officers, or from persons, corporations, foundations or
associations. A district board shall deposit the monies into a specific fund or account
and a district board shall administer the monies in accordance with the purpose of the
grant or donation with specific policies or restrictions as described or stipulated in
the grant or donation. In the case of personal property granted or donated to or for the
benefit of a community college district, a district board shall immediately transfer
possession and ownership of the property to the designated district.
9. Enter into intergovernmental agreements or contracts pursuant to section
11-952.01 for participation in programs offered by public agency pools or separately
contract with a trustee or board of trustees that provides a common self-insurance
program with pooled funds and risks pursuant to section 15-382, subsection B, paragraph
2. The district board is not required to engage in competitive procurement in order to
make the decision to participate in these programs.
C. If a district acquires real or personal property, whether by purchase, exchange,
condemnation, gift or otherwise, the district shall pay to the county treasurer any taxes
on the property that were unpaid as of the date of acquisition, including penalties and
interest. The lien for unpaid delinquent taxes, penalties and interest on property
acquired by the district:
1. Is not abated, extinguished, discharged or merged in the title to the property.
2. Is enforceable in the same manner as other delinquent tax liens.
D. From and after December 31, 1988, in a district whose boundaries encompass a
vehicle emissions control area as defined in section 49-541 the district board shall
require all out of county and out of state students to sign an affidavit at the time of
course registration that the student's vehicle meets the requirements of section
49-542. From and after December 31, 1988, the district board on property under its
jurisdiction within a vehicle emissions control area shall prohibit the parking of those
vehicles which fail to comply with section 49-542.
E. A community college district and a joint technological education district
governing board may enter into agreements for the provision of administrative,
operational and educational services and facilities.
F. Each district may establish a program for the exchange of students between the
community colleges under its jurisdiction and colleges and universities located in
Sonora, Mexico. The program may provide for in-state tuition for Sonora students at the
community colleges under its jurisdiction in exchange for similar tuition provisions for
ARIZONA students enrolled or seeking enrollment in Sonora colleges and universities. The
community colleges may work in conjunction with the ARIZONA-Mexico commission in the
governor's office to coordinate recruitment and admissions activities to provide for
in-state tuition for up to fifty Sonora students at the community colleges under its
jurisdiction in exchange for similar tuition provisions for up to fifty total ARIZONA
students enrolled or seeking enrollment in Sonora colleges and universities.
G. Each district shall facilitate transfer articulation coordination pursuant to
section 15-1824.

15-1445 Administrative powers of district governing boards
A district board shall:
1. Adopt policies for the government of the community colleges under its
jurisdiction.
2. In conjunction with other district boards, set standards for the establishment,
development, administration, operation and accreditation of community colleges in the
district.
3. Fix tuitions and graduate the tuitions and fees between institutions and between
residents, nonresidents and students from foreign countries. The district board may waive
tuitions and fees and graduate tuitions and waivers for an employee or the spouse or
dependent child of an employee of the district, or for a nonresident student enrolled in
the district if the district board determines the waiver is in the best interest of this
state and the student.
4. In conjunction with other district boards, submit to the economic estimates
commission before January 10 of each year the estimated number of full-time equivalent
students for the district as prescribed in section 15-1466.01.
5. Establish curriculums and designate courses that in its judgment will best serve
the interests of this state.
6. Determine academic classes that qualify as open entry, open exit classes and
prescribe policies for the operation of open entry, open exit classes.
7. In conjunction with other district boards and the state board for vocational and
technological education, review and adopt, within the scope of the statutory definitions
of vocational and technological education, program and staff standards with modifications
as necessary for courses taught in community colleges. The district board shall base the
standards on vocational and technological competence.
8. In conjunction with other district boards, establish qualifications of the
instructional staff that, at a minimum, shall be equal to those required to meet
accreditation guidelines and establish standards of vocational and technological
competence required to instruct in occupational as well as academic subjects.
9. In conjunction with other district boards, prescribe guidelines providing for
the transferability between community college district vocational and technological
education programs and in conjunction with the state board for vocational and
technological education prescribe guidelines for the interrelationship of secondary
programs and postsecondary programs.
10. In conjunction with other district boards, prescribe the manner in which the
self-evaluation of vocational and technological education programs is conducted as
provided in section 15-1452.
11. If requested by the state board for vocational and technological education,
assist in the preparation, publication and distribution of an annual state plan and a
comprehensive five year state plan.
12. In conjunction with other district boards and the state board for vocational and
technological education, develop a process to determine program funding priorities for
state aid purposes. Each district board shall submit state aid recommendations to the
legislature. The recommendations shall be based on the process and on existing cost
studies of vocational and technological education in this state.
13. In conjunction with other district boards, prescribe qualifications for
admission to community colleges for honorably discharged veterans who served on active
duty in the armed forces for a minimum of one year and who were previously enrolled at a
community college or university in this state. For the purpose of determining the
qualifications, the district board may not consider prior failing grades received by the
veteran at a community college or university in this state.
14. Require the publisher of each literary and nonliterary textbook used in the
community colleges of the district to furnish computer software in a standardized format,
when software becomes available for nonliterary textbooks, to the district board from
which braille versions of the textbook may be produced.
15. Identify students simultaneously enrolled in a course for both high school and
college credit by using the same student level data element required by section 15-1042,
subsection A. The auditor general shall have access to this information when certifying
the full-time equivalent student enrollment pursuant to section 15-1466.01, paragraph 4. 15-1446 Lease-purchase agreements
A. A district board may enter into lease or lease-purchase agreements for real
property, including buildings and improvements to the property.
B. Lease or lease-purchase agreements authorized by subsection A of this section or
section 15-1444, subsection A, paragraph 11 shall not create an obligation of payment by
the district under the terms of the lease or lease-purchase agreement for periods longer
than fifteen years.
C. Notwithstanding subsection B of this section, a district board may enter into
lease agreements for real property, including buildings and improvements to the property,
that obligate the district for more than fifteen years if such agreements are with an
Indian tribe, involve land owned or controlled by the federal government or by a joint
powers airport authority organized under title 28, chapter 25, article 8 or involve real
property that is owned by a nongovernmental nonprofit corporation and that is offered for
lease in an amount not to exceed one thousand dollars per year to a community college
district for purposes of expanding health care education programs.
D. The amount of outstanding indebtedness due to acquisition of real property by
lease-purchase for each district shall not exceed two million five hundred thousand
dollars in any one year and fifteen million dollars in the aggregate. A district board
may pledge tuitions, fees, rentals and other charges to any payments due under
lease-purchase agreements.
E. Notwithstanding subsection D of this section, periodic payments and any option
payments for acquisition of real property by lease-purchase are restricted to payment
from capital outlay funds.
F. Districts that acquire real property by lease-purchase are not entitled to
receive monies pursuant to section 15-1463 pertaining to the specific real property
acquired by lease-purchase.
G. Notwithstanding any other law, payments on lease or lease-purchase agreements
entered into pursuant to subsection A of this section or section 15-1444, subsection A,
paragraph 11 are obligations of the district within the meaning of the constitutional
limit against indebtedness set out in article IX, section 8, Constitution of ARIZONA.

15-1447 Reports by president or chancellor
The president or chancellor of every district, at the close of each fiscal year,
before and as a prerequisite to receiving the president or chancellor's last month's
salary, shall make and subscribe under oath a complete report of the district and each
college or campus within the district for the entire school year and shall deliver a copy
of the report to the district board. The report shall show the total number of full-time
equivalent students enrolled during the year, the actual total number of students, the
number of teachers regularly employed and the total number of students not residing
within the district. 15-1448 Employment of legal counsel; opinions of counsel
A. If a district lies in two or more counties, the county attorney of the largest
county in which the district lies as determined by the last federal decennial census is
the attorney for the district.
B. A district board may employ an attorney to represent the district if the county
attorney consents. The district board shall state in writing the purpose for which it
employs an attorney.
C. A district board may employ an attorney without the consent of the county
attorney if it deems it advisable.
D. Compensation for an attorney whom the district board employs as provided in
subsections B and C of this section is payable from district monies.
E. If a district board employs an attorney without the consent of the county
attorney, the county attorney has no duty to represent the district with regard to any
matter for which the attorney was employed and is not responsible to the district for any
exercise of, or failure to exercise, professional judgment by the attorney in his
representation of the district.
F. The county attorney is not required to assume the duty to represent the district
on a matter for which the district board employs an attorney without the consent of the
county attorney.
G. An attorney employed pursuant to subsection B or C of this section shall
represent the district with the powers of and the duties otherwise performed by the
county attorney pursuant to section 11-532, subsection A, paragraph 11.
H. Any county attorney who issues a legal opinion to a community college district
shall promptly transmit a copy of the opinion to the attorney general who shall concur,
revise or decline to review the opinion of the county attorney. If the attorney general
does not concur, revise, or decline to review the county attorney's opinion within sixty
days from its receipt, the opinion shall be deemed affirmed. If the attorney general
revises the opinion, the opinion of the attorney general shall prevail. 15-1449 Control of vehicles and nonpedestrian devices on community college property by district board; sanctions; compliance with emissions inspection; definition
A. The district board may adopt policies for the control of vehicles and
nonpedestrian devices on property of the institutions under the district board's
jurisdiction with respect to the following only:
1. Maximum speed of vehicles and nonpedestrian devices.
2. Direction of travel.
3. Authorized hours of travel.
4. Required stops in traffic.
5. Place, method and time of parking.
6. Nonparking areas and restricted areas.
7. Prohibition of parking in vehicle emissions control areas as defined in section
49-541 of those vehicles which fail to comply with section 49-542.
8. Designation of special parking areas for students, faculty, staff and the
general public.
B. The district board may prescribe and collect reasonable fees for specially
designated parking areas. The district board shall cause signs and notices to be posted
on the property for the regulation of vehicles and nonpedestrian devices.
C. The policies adopted by the district board pursuant to subsection A of this
section shall be enforced administratively under procedures approved by the district
board for each institution under its jurisdiction. As to students, faculty and staff,
these procedures may involve both student and faculty adjudicating bodies if all
procedures give the individual notice and an opportunity to be heard concerning the
alleged infractions and any sanction to be imposed on the individual. Administrative and
disciplinary sanctions may be imposed on students, faculty and staff for a violation of
the policies including a reasonable monetary penalty, impoundment, regular institutional
discipline, withdrawal or suspension of campus parking privileges, encumbrances of
records or grades, or both, and oral or written reprimand. Habitual or flagrant disregard
of policies is a ground for suspension or expulsion from the institution for a student
and may be taken into consideration as to faculty and staff in regard to amount of salary
and continuation of employment.
D. Members of the general public who park their vehicles in an unauthorized manner
on the property of an institution under the jurisdiction of the district board shall be
warned concerning their unauthorized parking, and if they continue to or habitually park
in an unauthorized manner, the vehicles parked in an unauthorized manner may be impounded
by the institution and a reasonable fee may be exacted for the cost of impoundment and
storage.
E. Members of the general public who violate a policy adopted by the district board
pursuant to subsection A of this section regarding the use of nonpedestrian devices on
the property of an institution under the jurisdiction of the district board shall be
warned of a violation. A nonpedestrian device may be impounded by the institution, and a
reasonable fee may be exacted for the cost of impoundment and storage.
F. Except as provided in section 41-1092.08, subsection H, a person who has
received a final administrative ruling concerning a sanction imposed on the person as a
result of a violation of a policy adopted pursuant to subsection A of this section has
the right to have that ruling reviewed by the superior court in the county in which the
institution involved is situated pursuant to title 12, chapter 7, article 6.
G. An institution that is under the jurisdiction of the district board and that is
located in a vehicle emissions control area as defined in section 49-541 shall prohibit
the issuance of annual permits to park on property under its jurisdiction until the
applicant submits an affidavit or shows proof that the applicant's vehicle meets the
requirements of section 49-542.
H. In this section, "nonpedestrian devices" includes bicycles, tricycles,
unicycles, skateboards, roller skates and equines. 15-1450 District board members; participation in employee benefit plan
A. A community college district board may allow its members and spouses and
dependents of members to participate in the plan providing health, accident, life and
disability benefits for employees of the district and their dependents. A district board
member is eligible to participate in the plan provided as an employee benefit if the
member pays the full premium and the participation of the member does not result in an
expenditure of district monies.
B. If the community college district board allows its members to participate in the
plan, as provided in subsection A of this section, a district board may also adopt a
policy allowing participation in the plan provided as an employee benefit for board
members after they leave the board and for surviving spouses and dependents of board
members or former board members under the following conditions:
1. The community college district board may allow a board member and spouses and
dependents of members to continue to participate after the board member leaves the board
if all of the following apply:
(a) The board member served at least six consecutive years on the board.
(b) The board member was covered under the plan while serving on the board.
(c) The board member pays the full premium.
(d) The board member's participation does not result in an expenditure of district
monies.
2. The district board may allow the surviving spouse and dependents of a deceased
board member to continue to participate in the plan if all of the following apply:
(a) The surviving spouse or dependents were covered under the board member's or
former board member's participation in the plan.
(b) The surviving spouse or dependents pay the full premium.
(c) The participation of the surviving spouse and dependents does not result in the
expenditure of district monies.

15-1451 Optional retirement plans
A. Pursuant to section 15-1444, subsection B, paragraph 5, a community college
district board may establish an optional retirement program under which contracts
providing retirement and death benefits may be purchased for employees of the
institutions under its jurisdiction as designated by the community college district
board.
B. An optional retirement program established pursuant to this section shall:
1. Be designed to be a qualified governmental plan under section 401(a) of the
internal revenue code.
2. Comply with all requirements of the internal revenue code applicable to
governmental plans.
3. Be a qualified plan under section 401(a) of the internal revenue code.
4. Apply for and maintain a current letter of determination issued by the United
States internal revenue service.
5. Be a qualified pick-up plan as defined by section 414(h)(2) of the internal
revenue code as confirmed by a private letter ruling issued by the United States internal
revenue service.
6. Provide benefits through annuity contracts that are fixed or variable in nature
or that are a combination of fixed and variable.
C. Eligible employees may elect to participate in an optional retirement plan
established by the community college district board. The eligible employee shall make
the election in writing and file the election with the ARIZONA state retirement system
and the disbursing officer of the employing institution. The eligible employee shall
make the election either:
1. Within thirty days of the employee's effective date of employment.
2. If the employee is a member of the ARIZONA state retirement system on the date
the optional retirement program becomes effective, within ninety days of the effective
date of the optional retirement program.
3. Beginning on October 1, 2001 through December 31, 2001.
D. If an employee who is a member of the ARIZONA state retirement system elects to
participate in an optional retirement program pursuant to subsection C of this section,
the ARIZONA state retirement system shall transfer the employee's contributions to the
ARIZONA state retirement system and interest as determined by the board of the ARIZONA
state retirement system to the optional retirement program within the later of ninety
days after the election or ninety days after receipt by the optional retirement program
of a favorable letter of determination issued by the United States internal revenue
service. If an eligible employee fails to make an election as provided in subsection C
of this section, the employee is deemed to have elected to participate in the ARIZONA
state retirement system. The election to participate in an optional retirement program is
irrevocable and constitutes a waiver of all benefits provided by the ARIZONA state
retirement system. All eligible employees who elect to participate in an optional
retirement program shall remain participants in the optional retirement program during
the continuance of employment with the community college district.
E. The community college district board shall make contributions from public monies
appropriated or any other monies available for this purpose on behalf of each participant
in the optional retirement program in an amount that is at least equal to the employer
contribution prescribed in title 38, chapter 5, article 2 but that is not more than the
amount prescribed in section 15-1628, subsection C.
F. Subject to subsection H of this section, each community college district board
that establishes an optional retirement program shall establish program provisions
including:
1. Categories of employees that are eligible to elect to participate in the
optional retirement program.
2. The employee contribution rate. This rate may be greater than the employee
contribution rate prescribed in title 38, chapter 5, article 2.
3. A vesting period for employer contributions, if any. All employee contributions
that are picked up by the employer are fully vested at all times.
4. Restrictions on benefits, except that the optional retirement program shall not
allow a participant to withdraw employer contributions except as retirement income
payable for life or to provide for loans on retirement income.
G. A community college district board may elect to provide health or long-term
disability coverage to optional retirement program participants under separate benefit
plans. The community college district board may allocate a portion of its employer
contribution that would otherwise be made to the optional retirement program under
subsection E of this section to the separate benefit plans to provide health or long-term
disability coverage.
H. Community college district boards that establish an optional retirement program
under this section may enter into intergovernmental agreements appointing a single
administrator or designating a single community college district board to administer the
optional retirement program. A community college district board may satisfy the
requirements of this section by entering into an intergovernmental agreement with another
community college district board to participate in that community college district's
optional retirement program. The administration shall include, without limitation, the
design and implementation of the plan document establishing the optional retirement
program, compliance with the qualification requirements prescribed in subsection B of
this section and such other duties that are not inconsistent with this section as may be
delegated to the administrator pursuant to the intergovernmental agreements entered into
among the community college district boards.
I. Although designated as employee contributions, all employee contributions made
to an optional retirement program shall be picked up and paid by the community college
district in lieu of contributions by the employee. The contributions picked up by a
community college district may be made through a reduction in the employees' salary or an
offset against future salary increases, or a combination of both. The employees
participating in the optional retirement program do not have the option of choosing to
receive the contributed amounts directly instead of the community college district paying
the amounts to the optional retirement program. It is intended that all employee
contributions that are picked up by the community college district as provided in this
subsection shall be treated as employer contributions under section 414(h) of the
internal revenue code and shall be excluded from the employees' gross income for federal
and state income tax purposes and are includable in the gross income of the employees or
their beneficiaries only in the taxable year in which they are distributed.
J. A community college district board shall not be liable to any employee, retiree
or other person for any reason relating to the community college district board's
provision of or failure to provide for an optional retirement program or health or
long-term disability coverage.

15-1452 Evaluation of vocational and technological education programs
A district board shall provide for the evaluation of vocational and technological
education programs once every five years. The assessment shall be conducted in
cooperation with and with assistance from business, industry and labor representatives.
The district board may conduct a self-evaluation. 15-1461.01 Truth in taxation notice and hearing; roll call vote on tax increase; definition
A. On or before February 10 of the tax year, the county assessor shall transmit and
certify to the property tax oversight commission and to the district governing board the
total net primary assessed values that are required to compute the levy limit prescribed
by section 42-17051. If the proposed primary property tax levy, excluding amounts that
are attributable to new construction, is greater than the amount levied in the preceding
tax year by the district:
1. The district governing board shall publish a notice that meets the following
requirements:
(a) The notice shall be published twice in a newspaper of general circulation in
the district. The first publication shall be at least fourteen but not more than twenty
days before the date of the hearing. The second publication shall be at least seven but
not more than ten days before the date of the hearing.
(b) The notice shall be published in a location other than the classified or legal
advertising section of the newspaper in which it is published.
(c) The notice shall be at least one-fourth page in size and shall be surrounded by
a solid black border at least one-eighth inch in width.
(d) The notice shall be in the following form, with the "truth in taxation hearing
- notice of tax increase" headline in at least eighteen point type:
Truth in Taxation Hearing
Notice of Tax Increase
In compliance with section 15-1461.01, ARIZONA Revised Statutes,
__________ community college district is notifying its property taxpayers of
__________ community college district's intention to raise its primary
property taxes over last year's level. The __________ community college
district is proposing an increase in primary property taxes of $__________ or
_____%.
For example, the proposed tax increase will cause __________ community
college district's primary property taxes on a $100,000 home to increase from
$__________ (total taxes that would be owed without the proposed tax increase)
to $__________ (total proposed taxes including the tax increase).
This proposed increase is exclusive of increased primary property taxes
received from new construction. The increase is also exclusive of any changes
that may occur from property tax levies for voter approved bonded indebtedness
or budget and tax overrides.
All interested citizens are invited to attend the public hearing on the
tax increase that is scheduled to be held __________ (date and time) at
__________ (location).
2. In lieu of publishing the truth in taxation notice, the district board may mail
the truth in taxation notice prescribed by paragraph 1, subdivision (d) to all registered
voters in the district at least ten but not more than twenty days before the date of the
hearing.
3. In addition to publishing the truth in taxation notice under paragraph 1 or
mailing the notice under paragraph 2, the district governing board shall issue a press
release containing the truth in taxation notice to all newspapers of general circulation
in the district.
4. The district board shall consider a motion to levy the increased property taxes
by roll call vote.
5. Within three days after the hearing, the district board shall mail a copy of the
truth in taxation notice, a statement of its publication or mailing and the result of the
district board's vote under paragraph 4 to the property tax oversight commission
established by section 42-17002.
6. The district board shall hold the truth in taxation hearing on or before the
adoption of the county, city or town budget under section 42-17105.
B. If the governing board fails to comply with the requirements of this section,
the governing board shall not fix, levy or assess an amount of primary property taxes
that exceeds the preceding year's amount, except for amounts attributable to new
construction.
C. For purposes of this section, "amount attributable to new construction" means
the net assessed valuation of property added to the tax roll since the previous year
multiplied by a property tax rate computed by dividing the district's primary property
tax levy in the preceding year by the estimate of the district's total net assessed
valuation for the current year, excluding the net assessed valuation attributable to new
construction. 15-1461 District budget; annual estimate; computation; notice; hearing; adoption
A. Not later than June 5, each district established pursuant to this chapter, and
any other community college established prior to the enactment of this chapter, shall
prepare a proposed budget for the budget year on a form which the auditor general
prescribes to be transmitted to the district board. The proposed budget shall be
accompanied by an estimate of the amount of funds needed for the ensuing year as
determined by the district based on the proposed budget prepared by it.
B. The district shall establish and set forth in the proposed budget the per capita
expenditure per full-time equivalent student, which shall be the total operational
expenses.
C. The district shall establish and set forth in the proposed budget the per capita
expenditure per full-time equivalent student, which shall be the total capital outlay
expenses.
D. The number of basic full-time equivalent students shall be computed by dividing
the total community college credit units by fifteen per semester and shall be based on
regular day enrollment. The number of additional short-term full-time equivalent
students shall be computed by dividing the total community college credit units from
additional short-term classes by thirty. The number of skill center full-time equivalent
students shall be computed by dividing the total number of clock hours in approved
vocational training programs by six hundred forty.
E. The governing board of each district shall prepare a notice fixing a time not
later than June 20 and designating a public place within each district at which a public
hearing and special board meeting shall be held. The governing board shall present the
proposed budget for consideration of the residents and the taxpayers of the district at
such meeting.
F. The governing board of each district shall publish a copy of the proposed budget
prior to the meeting and, in addition, a notice of the public hearing and special board
meeting not later than fifteen days prior to the meeting. The proposed budget shall
contain but need not be limited to the following information:
1. The estimated cost of all operational, capital outlay and debt service expenses.
2. The percentage of increase or decrease in each budget category as compared to
each category of the budget for the current year.
3. The total amount of revenues by source that was necessary to meet the district's
budget for the current year.
4. The total amount of revenues by source that will be necessary to meet the
proposed district budget.
5. The total property tax levy of the district for the current year.
6. The levy for primary property taxes and the levy for secondary property taxes
for the current year.
7. The primary property tax rate and secondary property tax rate for the current
year.
8. The estimated amount of total property tax levies for the district and the
primary property tax and secondary property tax components thereof necessary for the
budget year.
9. The maximum amount of primary property tax dollars which the district is
permitted to levy pursuant to title 42, chapter 17, article 2 for the budget year.
10. The amount of secondary property tax dollars which the district will levy for
the budget year.
11. The amount of monies received from primary property taxation in the previous
fiscal year in excess of the maximum allowable amount as calculated pursuant to title 42,
chapter 17, article 2.
G. The governing board shall publish the proposed budget and the notice of the
public hearing and special board meeting a second time not later than five days prior to
the meeting. Publication shall be made in a newspaper of general circulation within the
district. The cost of publication shall be a charge against the district. If a truth in
taxation notice and hearing is required under section 15-1461.01, the district may
combine the notice and hearing under this section with the truth in taxation notice and
hearing.
H. If the district fails to publish the proposed budget, notice and statements
required by subsection F of this section, the board of supervisors shall levy on the
property in the district the lesser of the amount of primary property taxes which were
levied for the district in the current year or the amount which would be produced by the
primary property tax rate which was levied for the district in the current year.
I. At the time and place fixed in the notice, the members of the governing board
shall hold the public hearing and present the proposed budget to the persons attending
the hearing. Upon request of any person, the governing board shall explain the budget
and any resident or taxpayer of the district may protest the inclusion of any item in the
proposed budget.
J. Immediately following the public hearing the chairman shall call to order the
special board meeting for the purpose of adopting the budget. The governing board shall
adopt the budget making deductions from the budget as it sees fit but making no additions
to the budget and shall enter the budget as adopted in its minutes. The governing board
shall not adopt the budget if the property tax requirements of the budget, excluding
amounts budgeted and levied for secondary property taxes, exceed the amounts authorized
pursuant to title 42, chapter 17, article 2. 15-1462 Special tax levy for maintenance or capital outlay of district; proration of monies
A. The board of supervisors in each district may supply funds from other designated
sources or, in lieu thereof, shall annually, at the time of levying other taxes, levy a
special community college tax on property to be determined by each county comprising the
district for the purpose of maintaining the district or for capital outlay. For purposes
of this subsection "capital outlay" means the expenditures which result in the
acquisition of fixed properties such as land, temporary, permanent or portable buildings
and development or permanent improvements to land or construction of buildings. The tax
shall be at a rate sufficient to provide the amount proposed in the annual estimate of
funds as needed to maintain the district for the current fiscal year, after deducting
from the total estimate the amount of funds appropriated for the district by the
legislature, but shall not be in excess of the levy limitation prescribed in title 42,
chapter 17, article 2. The tax shall be added to and collected in the same manner as
other county taxes on property. The amount of the special community college tax shall be
paid into the community college fund of the county.
B. For the first year of operation monies shall be prorated to each county within a
district in the ratio that the number of high school graduates of each county within the
district bears to the total number of high school graduates in all counties within the
district. Thereafter, proration of monies shall be to each county within a district in
the ratio that the number of full-time equivalent students of each county within the
district bears to the total number of full-time equivalent students in all counties
within the district.

15-1463 State contribution for capital outlay for initial or additional campus
A. This state, by legislative appropriation, shall pay to the district a sum equal
to fifty per cent of the total cost for capital outlay for an initial campus in a newly
formed district or in a county entering into an intergovernmental agreement for providing
courses pursuant to section 15-1470, not to exceed one million dollars.
B. If a district board in an existing district determines the need for an
additional campus or campuses, it shall submit a request to the joint legislative budget
committee for review. This state, by legislative appropriation, shall pay a sum equal to
fifty per cent of the total cost for capital outlay for each approved campus within the
district, but not to exceed one million dollars at any one campus, including the
purchase, erection, remodeling or completion of buildings and the purchase of equipment
and facilities for educational or auxiliary purposes of the community college, excluding
the cost of any land granted to the district and dormitories erected for the use of
students or faculty members. 15-1464 State aid per capita distribution for capital outlay; capital outlay fund; appropriation
A. In addition to the appropriation prescribed in section 15-1463, subsection A,
this state shall pay to each community college district state aid for capital outlay in
the following manner:
1. For fiscal year 1992-1993 for a community college district which had less than
five thousand actual full-time equivalent students according to the most recent fiscal
year actual full-time equivalent student count, the amount determined by multiplying the
number of actual full-time equivalent students according to the most recent fiscal year
actual full-time equivalent student count by two hundred seven dollars.
2. For fiscal year 1992-1993 for a community college district which had five
thousand or more actual full-time equivalent students according to the most recent fiscal
year actual full-time equivalent student count, the amount determined by multiplying the
number of actual full-time equivalent students according to the most recent fiscal year
actual full-time equivalent student count by one hundred fifty-eight dollars.
3. Beginning with fiscal year 1993-1994 the legislature shall adjust by the growth
rate for common and high school districts as provided by law, subject to appropriation,
the amount of state aid to community college districts as provided in paragraphs 1 and 2.
B. The basis for computing full-time equivalent students for the capital outlay per
capita distribution shall be on the same basis as the computation prescribed in section
15-1466.01.
C. In addition to the formula to determine the appropriations prescribed in section
15-1463, subsection A and subsection A of this section, this state may pay additional
amounts for capital outlay to a community college district based on requests from the
district.
D. Appropriations for capital outlay made pursuant to subsections A and C of this
section and section 15-1463 shall be made to an account designated as the capital outlay
fund.
E. At the beginning of each fiscal year, the district board shall present to the
department of administration a claim for the annual amount appropriated by the
legislature and assigned to the district for capital outlay purposes. The department of
administration shall draw a warrant in payment of the claim and shall transmit the
warrant to the state treasurer who shall disburse the funds to the district for capital
outlay purposes, to be expended as provided by law. If no community college exists, the
department shall establish a fund for new future community college districts to be
disbursed as needed.
F. Notwithstanding subsection E of this section, a community college district may
request the state treasurer to disburse the monies to the local government investment
pool for deposit into the district's account as established in section 35-326.
G. Each district has the option of using up to twenty per cent of its total capital
outlay aid appropriation for operating aid purposes or taking this same amount out of the
district's total operating state aid appropriation and using it for capital outlay
purposes.
15-1465 Election; issuance and sale of bonds for capital outlay; disposition of proceeds; proration of expenditures by counties
A. A district may conduct an election to determine whether or not bonds shall be
issued and sold for the purpose of paying its share of the expenditures incurred for
capital outlay. The election shall be originated and conducted, the bonds issued, sold
and redeemed and a tax levy imposed for payment of interest on such bonds and redemption
of bonds in accordance with the provisions of title 35, chapter 3, article 3 and the
limitations imposed on school districts by article IX, section 8, Constitution of
ARIZONA, insofar as those provisions are applicable. Bond counsel fees, financial
advisory fees, printing costs and paying agent and registrar fees shall be paid from
either the amount authorized by the qualified electors of the community college district
or current operating funds. Bond election expenses shall be paid from current operating
funds only.
B. The proceeds of all bonds sold as provided in subsection A shall be used only
for capital outlay, including the purchase of land, the purchase, erection, remodeling or
completion of buildings and the purchase of equipment and facilities for educational or
auxiliary purposes of the community college district.
C. Where a district contains more than one county, subsections A and B shall be
applicable separately to each of the counties as to its portion of the expenditures to be
paid for capital outlay in setting up the physical plant of the district even though the
proposed plant is to be established, wholly or partly, in one county of the district.
D. The portion of the expenditures for capital outlay to be prorated by each county
of a district shall be determined in the ratio that the assessed valuation of each county
within the district bears to the total assessed valuation of all counties within the
district.
E. If a majority of the qualified electors voting at an election held as provided
in this chapter disapproves the issuance of bonds for any purpose, the governing board of
the community college district shall not authorize the expenditure of funds from any
source for such purpose without subsequent approval of a majority of the qualified
electors voting at an election held as provided in this chapter, except that a subsequent
vote of the district electors shall not be necessary to:
1. Construct buildings and site improvements on existing campuses.
2. Repair and remodel existing facilities and to purchase equipment.
3. Purchase land adjacent to an existing campus.
15-1466.01 Calculation of full-time equivalent student enrollment
In determining state aid under sections 15-1464 and 15-1466 the number of full-time
equivalent students shall be calculated in the following manner:
1. For the basic actual full-time equivalent student enrollment, add the number of
full-time equivalent students enrolled as of forty-five days after classes begin in the
fall semester to the number of full-time equivalent students enrolled as of forty-five
days after classes begin in the spring semester, not including additional short-term
classes, and divide the sum by two.
2. For the additional short-term and open entry, open exit full-time equivalent
student enrollments:
(a) Determine the total number of credit units for students enrolled in additional
short-term and open entry, open exit classes for the fiscal year.
(b) Determine the total number of credit units for students who have completed the
additional short-term and open entry, open exit classes for the fiscal year. Any student
who has not completed the class by June 30 of each fiscal year shall not be eligible to
be counted for state aid purposes until the following year.
(c) Add the amounts in subdivisions (a) and (b).
(d) Divide the amount determined in subdivision (c) by two.
(e) Divide the quotient obtained in subdivision (d) by thirty.
(f) The result in subdivision (e) is the additional short-term and open entry, open
exit full-time equivalent student enrollments for the fiscal year.
3. For the skill center and adult basic education courses full-time equivalent
student enrollment, divide by six hundred forty the total class attended clock hours of
persons who complete vocational training. Any student who does not complete vocational
training programs by June 30 of each fiscal year shall not be eligible to be counted for
state aid purposes until the following year.
4. The total of basic actual, additional short-term and open entry, open exit and
skill center full-time equivalent student enrollment shall be the basis of providing
state aid. Beginning with the audit for the year ending June 30, 2003, the auditor
general shall audit separately any full-time equivalent student enrollment where a
student is enrolled in a course for both high school and college credit simultaneously,
except for credit received at a private college or a college owned, operated or chartered
by an Indian tribe, taking into consideration any relevant law, regulation or rule. The
full-time equivalent student enrollment reported by each district for all basic actual,
additional short-term and open entry, open exit classes and skill center and adult basic
education courses shall be audited annually by the auditor general. The auditor general
shall report the results of the audit to the staffs of the joint legislative budget
committee and the governor's office of strategic planning and budgeting by October 15 of
each year. 15-1466.02 Record keeping requirements for full-time equivalent student enrollment
A. On or before July 21 each year, each community college district shall:
1. Provide a certified report to the auditor general of the number of full-time
equivalent students calculated by the district pursuant to section 15-1466.01.
2. Separately calculate and report to the auditor general any full-time equivalent
student enrollment where a student is enrolled in a course for both high school and
college credit simultaneously.
B. Each community college district shall submit to the auditor general a summary of
its full-time equivalent student enrollment accounting policies and procedures,
compilation procedures and source records used for calculating full-time equivalent
student enrollment.
C. Basic actual full-time equivalent student enrollment shall be counted on the
forty-fifth day after the basic actual full-time equivalent student enrollment classes
begin for the fall and spring semesters, as published in the college catalogs. Class
rosters that reflect enrollment as of the forty-fifth day shall be provided by the
registrar's office to each professor or instructor for every class section. The class
roster shall indicate the course number, course title, time, instructor name and students
enrolled. Each professor or instructor is required to review the class roster and make
additions or deletions as necessary. On the forty-fifth day class rosters, each professor
or instructor shall indicate as withdrawn each student who has not been attending class,
even if the student has not formally withdrawn from the course, and that student shall
not be counted for state aid purposes. The official forty-fifth day rosters shall include
a manual signature and date or an electronic authorization and date by the professor or
instructor and shall include the following certification:
I hereby certify that the information contained in this class roster
accurately reflects those students who are enrolled and participating.
Students who have withdrawn or who have been withdrawn from classes as of the forty-fifth
day shall not be counted for state aid purposes. A record shall be maintained that
identifies student withdrawals by date of withdrawal, as of the forty-fifth day and after
the forty-fifth day for the entire semester.
D. Additional short-term and open entry, open exit full-time equivalent student
enrollment must be counted as of June 30 of each year. Registration records shall be
maintained to support the number of credit hours for additional short-term and open
entry, open exit classes in which students are enrolled during the fiscal year. Final
grade rosters shall be prepared that present initial enrollees, those students who
withdrew from the class and those students who completed the class. The final grade
rosters shall include a manual signature or electronic authorization by the professor or
instructor and shall be used to support the number of credit hours claimed for full-time
equivalent student enrollment. For both additional short-term and open entry, open exit
classes, only students who have received a grade by June 30 may be counted as completed
for state aid purposes and students with a grade of incomplete shall not be counted.
E. Skill center and adult basic education full-time equivalent student enrollment
records shall be maintained to support the actual clock hours attended by students in
skill center and adult basic education courses.
F. Those students who are simultaneously enrolled in a course for both high school
and college credit and the courses, including section numbers, that the students attend
shall be specifically identified in the district's full-time equivalent student
enrollment records.
G. The community college district's records used to calculate full-time equivalent
student enrollment counts shall be provided to the auditor general in an electronic
format prescribed by the auditor general. 15-1466 State aid; eligibility; limitations
A. Subject to legislative appropriation, the legislature shall determine and
appropriate the amount of state aid each fiscal year to each district possessing
the qualifications as prescribed in this chapter.
B. The state shall determine the amount of state aid, as prescribed in subsection F
of this section, appropriated to each district for the fiscal year prior to the fiscal
year for which the state aid is being calculated.
C. The state shall adjust the amount of state aid appropriated to each district as
determined in subsection B of this section by the growth rate referenced by section
15-901, subsection B, paragraph 2. This amount shall be appropriated to the district
except as provided in subsection D of this section.
D. In addition to the state aid appropriated in subsection C of this section, each
district qualified under this chapter shall have its state aid adjusted in an amount that
reflects the growth in the full-time equivalent student count of the district calculated
as follows:
1. Calculate the growth in the actual, audited full-time equivalent student count
between the second and third most recent fiscal years prior to the fiscal year for which
the state aid is being calculated for each district.
2. Calculate the average appropriation per full-time equivalent student for all
districts by dividing the amount determined in subsection B of this section by the
actual, audited full-time equivalent student count for all districts in the most recent
fiscal year.
3. Multiply the amount calculated in paragraph 1 of this subsection by the average
appropriation calculated in paragraph 2 of this subsection. This amount shall be
appropriated to the district for growth.
E. State aid appropriated to each district shall be allocated and paid in
accordance with subsection C of this section before any funding is allocated and paid in
accordance with subsection D of this section.
F. The total amount appropriated to each district each fiscal year in accordance
with subsections C and D of this section shall serve as the amount of state aid to be
adjusted in the next fiscal year. A district is not eligible for growth funding pursuant
to this section unless the most recent audited full-time student equivalent count exceeds
the highest audited full-time student equivalent count recorded from and after fiscal
year 2003-2004.
G. To be eligible for state aid, a district shall:
1. Be equipped with suitable buildings, equipment and campus.
2. Have at least three hundred twenty full-time equivalent students attending in
the district.
3. Have complied with all of the requirements of the district board including
budgets and curriculum.
H. Notwithstanding subsection E of this section, the legislature may allocate
funding for growth in the full-time equivalent student count prior to or in combination
with funding of the growth rate.
I. The total amount of state monies that may be spent in any fiscal year by a
district for operating state aid shall not exceed the amount appropriated or authorized
by section 35-173 for that purpose. Notwithstanding section 15-1444, this section 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, including any duties
prescribed in an employment contract entered into pursuant to section 15-1444, subsection
A, paragraph 6.
J. In addition to the formula to determine the state aid appropriations prescribed
in this section, the state may pay additional amounts for state aid to a district based
on requests included in the district's budget request.
K. This section does not entitle a community college operated by a qualified Indian
tribe to state aid for community colleges pursuant to this chapter.


15-1467 State aid appropriations; disbursement procedure; district fund
A. Appropriations for state aid to districts shall be distributed to each community
college district in accordance with section 15-1466.
B. On July 15, October 15, January 15 and April 15, each district shall present to
the department of administration a claim for one-fourth of the annual amount appropriated
to the district. The department of administration shall draw a warrant in payment of the
claim and transmit the warrant to the state treasurer who shall disburse the funds to
each district for the support and maintenance of the district, to be expended as provided
by law. If no community college exists, the department shall establish a fund for new
future districts to be disbursed as needed.
C. Notwithstanding subsection B of this section, a district may request the state
treasurer to disburse the monies to the local government investment pool for deposit into
the district's account as established in section 35-326. 15-1468 Equalization aid for community college districts
A. Subject to legislative appropriation, any district that has less than the amount
of primary assessed valuation prescribed in section 15-1402 shall be paid by this state
an amount equal to the following:
1. The difference between the prior year's actual primary assessed valuation of the
district and the amount of primary assessed valuation prescribed in section 15-1402.
2. The actual prior year's primary property tax rate for the district.
3. The difference determined in paragraph 1 multiplied by the lesser of the tax
rate determined in paragraph 2 or one dollar and thirty-seven cents.
B. The equalization aid provided for in subsection A of this section shall be used
for the same purposes specified in section 15-1462 and shall be apportioned to any
qualifying district pursuant to section 15-1467.
C. This section does not apply to provisional community college districts as
prescribed in section 15-1409. 15-1469.01 Payment of community college nonresident state student cost
A. Any county which is not a part of an established community college district and
whose share of transaction privilege taxes, apportioned pursuant to section 42-5029,
subsection D, totals less than one per cent of the total distribution base apportioned to
all counties shall have any reimbursement to a community college district prescribed by
section 15-1469 paid by the state.
B. The state treasurer shall reduce the apportionment pursuant to section 42-5029
to any county whose community college reimbursement as prescribed in section 15-1469 is
eligible to be paid by the state pursuant to subsection A of this section by the amount
of the reimbursement paid by the state. The state treasurer shall deposit the amount of
the reduction in the state general fund.
C. Community college reimbursement payments made by the state on behalf of a county
pursuant to this section shall be included under the state appropriation limitation
established pursuant to article IX, section 17, Constitution of ARIZONA, and shall not be
included under county expenditure limitations established pursuant to article IX, section
20, Constitution of ARIZONA.

15-1469 Attendance of nonresident state students; payment of cost by county of residence
A. The district may admit students from any part of this state which is not a part
of an established community college district on the same conditions as residents.
B. It shall be the obligation of the county of the student's residence to reimburse
the district as provided in this subsection. The amount of reimbursement to each
community college district from each county which is not a part of an organized community
college district shall be determined as follows:
1. For students attending classes within the established community college
district:
(a) Determine the number of full-time equivalent students attending classes within
the district from the county for the year preceding the current year.
(b) Determine the operational expenses of the district for the current year
excluding direct and indirect costs of noncredit courses.
(c) Determine the amount of state aid the district received for the current year as
provided in section 15-1466.
(d) Subtract the amount of state aid received for the current year determined in
subdivision (c) from the amount of operational expenses for the current year determined
in subdivision (b).
(e) Determine the number of full-time equivalent students enrolled in the district
for the current year.
(f) Divide the amount determined in subdivision (d) by the number of full-time
equivalent students determined in subdivision (e).
(g) Multiply the amount determined in subdivision (f) by the average number of
full-time equivalent students for the county determined as provided in subdivision (a).
The resulting amount is the amount of reimbursement to the district from the county for
the budget year for students attending classes within the established community college
district.
2. For students attending classes offered by the district within the county
pursuant to section 15-1470, the amount specified in the intergovernmental agreement is
the amount of reimbursement to the district from the county for the budget year for
students attending classes within the county.
C. The county school superintendent of the county of the student's residence shall
certify to the community college district board and the board of supervisors that the
student is a resident of the county.
D. On or before May 15, the staff of the joint legislative budget committee shall:
1. Determine the amount of reimbursement to each district from each county pursuant
to subsection B, paragraph 1 of this section.
2. Notify the board of supervisors of each county of the amount it shall reimburse
to each district pursuant to subsection B, paragraph 1 of this section for the budget
year.
3. Notify each community college district eligible to receive reimbursement of the
amount of reimbursement from each county pursuant to subsection B, paragraph 1 of this
section for the budget year.
E. On or before November 15 and May 15, the board of supervisors shall draw
warrants on the county treasurer in favor of the community college district for half of
the amount due pursuant to subsection B of this section. The board of supervisors shall:
1. Pay monies from the county general fund or levy a community college
reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant
to an intergovernmental agreement for extension courses as provided in section 15-1470.
2. Pay monies from the county general fund or levy a community college
reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant
to subsection B, paragraph 1 of this section.
F. Notwithstanding subsection E of this section, a county and a community college
district may specify by intergovernmental agreement that the amount of reimbursement due
from the county be reduced by the value of in-kind contributions made by the county to
the district.
G. For the purposes of subsection B, paragraph 1 of this section full-time
equivalent students are determined in the same manner prescribed by section 15-1466.01.

15-1470 Community college courses; intergovernmental agreement
A. A district may offer credit and noncredit courses and services outside of the
district in other districts within this state.
B. A district may offer credit and noncredit courses and services outside of the
district in counties within this state without an organized district.
C. A district may offer credit and noncredit courses and services outside of this
state. A district is not entitled to state aid payments for students who are provided
courses and services outside of this state.
D. Before a district may offer courses pursuant to subsection A, the district shall
enter into an intergovernmental agreement with the district of the county in which the
courses will be held.
E. Before a district may offer courses pursuant to subsection B, the district shall
enter into an intergovernmental agreement with the board of supervisors of the county in
which the courses will be held. The district and the county shall negotiate the amount
of reimbursement payable by the county to the district for courses conducted within the
county no later than July 1.
F. The intergovernmental agreement entered into as provided in subsection E may not
require or permit the county to reimburse the district for noncredit classes.
G. The intergovernmental agreement entered into as provided in this section shall
include provisions for an alternative dispute resolution. 15-1471 Expenditure limitations; overrides
A. A district board, on the approval of a majority of the qualified electors in the
district voting at a regularly scheduled election on the first Tuesday after the first
Monday in November, may authorize expenditures in excess of the district expenditure
limitation prescribed pursuant to article IX, section 21, Constitution of ARIZONA. The
excess expenditures authorized shall be a specified percentage of the expenditure
limitation. The impact of the authorization shall appear on the ballot and in publicity
pamphlets in the same manner as prescribed in section 41-563.03.
B. In the resolution requesting the voters to approve expenditures in excess of the
district expenditure limitation prescribed pursuant to article IX, section 21,
Constitution of ARIZONA, the district board shall state the number of years in which the
authority to expend in excess of the limitation otherwise prescribed is to be in
effect. The district board shall not request authority from the voters for a period of
less than two years nor more than seven years.
C. Any authorization of expenditures made pursuant to this section shall be used in
determining a modified expenditure limitation which is equal to the expenditure
limitation prescribed pursuant to article IX, section 21, Constitution of ARIZONA,
increased by the specified percentage, beginning with the fiscal year immediately
following the approval of the qualified electors of the district. The district board
shall not authorize expenditures in excess of the modified expenditure limitation in
subsequent fiscal years unless subsequent approval for additional excess expenditures is
received as provided in subsection A of this section. 15-1472 Community college district workforce development accounts; reports A. Each community college district shall establish a separate workforce development account to receive only tax revenues authorized pursuant to section 42-5029, subsection E, paragraph 3. Each community college district board shall approve the expenditure of these monies in accordance with section 15-1461 and consistent with subsection B of this section. B. Monies received pursuant to subsection A of this section shall be expended for workforce development and job training purposes. These expenditures may include: 1. Partnerships with businesses and educational institutions. 2. Additional faculty for improved and expanded classroom instruction and course offerings. 3. Technology, equipment and technology infrastructure for advanced teaching and learning in classrooms or laboratories. 4. Student services such as assessment, advisement and counseling for new and expanded job opportunities. 5. The purchase, lease or lease-purchase of real property, for new construction, remodeling or repair of buildings or facilities on real property. C. The state treasurer shall transfer monies under this section into each district's workforce development account by the fifteenth day of each month. The state treasurer shall also allocate and distribute any pooled interest earnings earned from revenues authorized in section 42-5029, subsection E, paragraph 3 to each district in accordance with the method prescribed in subsection D, paragraph 2 of this section. D. Revenues authorized for community college districts in section 42-5029, subsection E, paragraph 3 shall be distributed by the state in the following manner: 1. For thirteen fiscal years beginning in fiscal year 2001-2002 the state treasurer shall allocate one million dollars per fiscal year for the purpose of bringing this state into compliance with the matching capital requirements prescribed in section 15-1463. The state treasurer shall distribute the monies authorized in this subsection to each district in the order in which each campus qualified for funding pursuant to section 15-1463. 2. After the monies have been paid each year to the eligible district pursuant to paragraph 1 of this subsection, the state treasurer shall distribute monies from the workforce development fund to each community college district in the following manner: (a) Each district shall receive the sum of two hundred thousand dollars. (b) After each district has received the payments prescribed in subdivision (a), the remainder of monies in the fund shall be distributed to each district according to each district's full-time equivalent student enrollment percentage of the total state wide audited full-time equivalent student enrollment in the preceding fiscal year prescribed in section 15-1466.01. The percentage distribution under this subdivision shall be adjusted annually on October 1 of each year. E. Revenues received by community college districts shall not be used by the legislature to supplant or reduce any state aid authorized in this chapter or supplant any proceeds from the sale of bonds authorized in this article and article 5 of this chapter. F. Monies received under this section shall not be considered to be local revenues for purposes of article IX, section 21, Constitution of ARIZONA. G. Each community college district shall submit a workforce development plan by April 1 of each year to the department of commerce. The plan shall outline the purpose and goals for which workforce development monies are to be expended by the district. H. Each community college district or community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation shall submit a report once every two years of its workforce development plan activities and the expenditures authorized in this section to the governor, president of the senate, speaker of the house of representatives, joint legislative budget committee and department of commerce by December 1 of every even-numbered year. The report shall include the purpose and goals for which the workforce development monies were expended by each district or community college together with a general accounting of the expenditures authorized in subsection B of this section. A copy of the final report shall also be provided to the secretary of state and the director of the ARIZONA state library, archives and public records. For the purposes of this subsection, "qualifying Indian tribe" has the same meaning prescribed in section 42-5031.01. 15-1473 Uniform system of accounting for community college districts; duties of auditor general
A. The auditor general shall determine the accounting systems, accounting methods
and accounting procedures for use by the community college districts.
B. The auditor general, in conjunction with the community college districts, shall
prescribe a uniform system of accounting as provided in section 41-1279.21 for use by all
community college districts.

15-1481 Definitions
In this article, unless the context otherwise requires:
1. "Acquire" includes purchase, erect, build, construct, reconstruct, repair,
replace, extend, better, furnish, equip, develop, improve and embellish.
2. "Board" means the governing board of a community college district or its
successors, but does not include provisional community college districts as prescribed in
section 15-1409.
3. "Bonds" means any bonds issued pursuant to this article.
4. "Federal agency" means the housing and home finance agency, the United States of
America or any of its officers or agencies designated or created to make grants or loans
of monies for public construction work.
5. "Institution" means any community college district that is organized in this
state pursuant to section 15-1402, but does not include provisional community college
districts as prescribed in section 15-1409.
6. "Project" means one or more classrooms, student or faculty residence halls,
dormitories, dining halls, student union buildings, field houses, stadia and other
revenue producing buildings located at the institution, together with sites for the
buildings, and including equipment, furnishings, heating, lighting and other service
facilities in connection with the buildings. 15-1482 Powers
The board shall have power, for and in behalf of the institution, to:
1. Acquire any project or projects and own, operate and maintain the same.
2. Accept grants or loans of monies from a federal agency.
3. Borrow monies and issue bonds and provide for the payment of the same and for
the rights of the holders thereof.
4. Perform all acts and do all things necessary or convenient to carry out the
powers granted by this article.

15-1483 Issuance of bonds
A. The board for and on behalf of an institution is authorized from time to time to
issue negotiable bonds for the purpose of acquiring a project or projects. The bonds
shall be authorized by resolution of the board. The bonds may be issued in one or more
series, bear such date or dates, be in such denomination or denominations, mature at such
time or times, not exceeding forty years from the respective dates thereof, mature in
such amount or amounts, bear interest at such rate or rates, as determined by the board,
payable semiannually, be in such form either coupon or registered, carry such
registration privileges, be executed in such manner, be payable in such medium of
payment, at such place or places, and be subject to such term of redemption, with or
without premium, as such resolution or other resolutions may provide. The bonds may be
sold at not less than par at either public or private sale. The bonds shall be fully
negotiable within the meaning and for all the purposes of title 47, chapter 3.
B. Before the issuance of bonds, a district shall submit information regarding the
planned projects that will be funded with the bond proceeds to the joint committee on
capital review for review. If a bond issuance requires voter approval, the district shall
submit the information to the joint committee on capital review before seeking voter
approval. 15-1484 Powers to secure bonds
A. In connection with the issuance of the bonds authorized by section 15-1483, or
in order to secure the payment of such bonds and interest thereon, the board shall have
power by resolution to:
1. Fix and maintain tuitions, fees, rentals and other charges from students,
faculty members and others using or being served by, or having the right to use or the
right to be served by, any project.
2. Provide that bonds issued under this article may be secured by a first,
exclusive and closed lien on all or any certain part of the income and revenue derived
from, and shall be payable from tuitions, fees, rentals and other charges from students,
faculty members and others using or being served by, or having the right to use or the
right to be served by, any project.
3. Pledge and assign to, or in trust for the benefit of, the holder or holders of
the bonds issued hereunder an amount of the income and revenue derived from tuitions,
fees, rentals and other charges from students, faculty members and others using or being
served by, or having the right to use or the right to be served by, any project.
4. Covenant with or for the benefit of the holder or holders of bonds issued under
this article to acquire any project, that as long as any such bonds remain outstanding
and unpaid the board will fix, maintain and collect in such installments as may be agreed
upon an amount of the tuitions, fees, rentals and other charges from students, faculty
members and others using or being served by, or having the right to use or the right to
be served by, any project, which shall be sufficient to pay when due the bonds issued
hereunder to acquire such project, and interest thereon, and to create and maintain
reasonable reserves therefor and to pay the costs of operation and maintenance of such
project including, but not limited to, reserves for extraordinary repairs, insurance and
maintenance, which costs of operation and maintenance shall be determined by the board in
its absolute discretion.
5. Make and enforce and agree to make and enforce parietal rules that shall insure
the use of any project by all students in attendance at the institution to the maximum
extent to which such project is capable of serving such students, or if any part of the
project is designed for occupancy as living quarters for the faculty members, by as many
faculty members as may be served thereby.
6. Covenant that as long as any of the bonds issued under this article remain
outstanding and unpaid it will not, except upon such terms and conditions as may be
determined:
(a) Voluntarily create or cause to be created any debt, lien, pledge, assignment,
encumbrance or other charge having priority to or being on a parity with the lien of the
bonds issued under this article upon any of the income and revenues derived from
tuitions, fees, rentals and other charges from students, faculty members and others using
or being served by, or having the right to use or the right to be served by, any project.
(b) Convey or otherwise alienate the project to acquire which such bonds shall have
been issued or the real estate upon which such project shall be located, except at a
price sufficient to pay all the bonds then outstanding issued under this article to
acquire such project and interest accrued thereon, and then only in accordance with any
agreements with the holder or holders of such bonds.
(c) Mortgage or otherwise voluntarily create or cause to be created any encumbrance
on the project to acquire which such bonds shall have been issued or the real estate upon
which it shall be located.
7. Covenant as to the procedure by which the terms of any contract with a holder or
holders of such bonds may be amended or abrogated, the amount or percentage of bonds the
holder or holders of which must consent to an amendment or abrogation and the manner in
which such consent may be given.
8. Vest in a trustee or trustees the right to receive all or any part of the income
and revenue pledged and assigned to, or for the benefit of, the holder or holders of
bonds issued hereunder, and to hold, apply and dispose of the same and the right to
enforce any covenant made to secure or pay or in relation to the bonds; execute and
deliver a trust agreement or trust agreements which may set forth the powers and duties
and the remedies available to such trustee or trustees and limiting the liabilities
thereof and describing what occurrences shall constitute events of default and
prescribing the terms and conditions upon which such trustee or trustees or the holder or
holders of bonds of any specified amount or percentage of such bonds may exercise such
rights and enforce any and all such covenants and resort to such remedies as may be
appropriate.
9. Vest in a trustee or trustees or the holder or holders of any specified amount
or percentage of bonds the right to apply to any court of competent jurisdiction for, and
have granted, the appointment of a receiver or receivers of the income and revenue
pledged and assigned to or for the benefit of the holder or holders of such bonds, which
receiver or receivers may have and be granted such powers and duties as such court may
order or decree for the protection of the bondholders.
10. Make covenants with any federal agency, private agency, corporation or
individual to perform any and all acts and to do any and all such things as may be
necessary or convenient or desirable in order to secure such bonds or as may in the
judgment of the board tend to make the bonds more marketable, notwithstanding that such
acts or things may not be enumerated herein, and to lease any project for the best
interests of the institution, and to perform all acts and to do all things not
inconsistent with the constitution of this state as may be necessary or convenient or
desirable for the issuance of such bonds and for their security.
11. Enter into any and all contracts and agreements necessary to accomplish the
acquisition of the project or projects including agreements for construction, engineering
and architectural services and agreements covering disposition and application of the
proceeds received from the sale of the bonds.
B. No bond shall be issued for any institution which causes the total aggregate
face amount of all bonds issued for classrooms to exceed the greater of twenty-five per
cent of all bonds then issued for such institution or one million dollars. For purposes
of this subsection, classroom does not include any building which would have been
included within the definition of project prior to September 30, 1988.
15-1485 Monies of institution
No monies derived from the sale of bonds under the provisions of this article shall
be required to be paid into the state treasury but shall be deposited by the treasurer of
the board in a separate bank account or accounts in such bank or banks or trust company
or trust companies as may be designated by the board, and all deposits of such monies
shall, if required by the board, be secured by obligations of the United States of
America of a market value equal at all times to the amount of the deposit, and all banks
and trust companies are authorized to give such security. Such monies shall be considered
as held for and on behalf of the institution for which the bonds have been issued. Such
monies shall be disbursed as may be directed by the board and in accordance with the
terms of any agreements with the holder or holders of any bonds. This section shall not
be construed as limiting the power of the board to agree in connection with the issuance
of the bonds as to the custody and disposition of the monies received from the sale of
such bonds or the income and revenue pledged and assigned to or in trust for the benefit
of the holder or holders thereof.

15-1486 Validity of bonds
The bonds bearing the signatures of officers in office on the date of the signing
thereof shall be valid and binding obligations, notwithstanding that before the delivery
thereof and payment therefor any or all of the persons whose signatures appear thereon
shall have ceased to be officers of the board. The validity of the bonds shall not be
dependent on nor affected by the validity or regularity of any proceedings to acquire the
project financed by the bonds or taken in connection therewith.

15-1487 Prohibitions against obligating the state of ARIZONA
Nothing in this article shall be construed to authorize the board to contract a debt
on behalf of, or in any way to obligate, the state of ARIZONA, or to pledge, assign or
encumber in any way or to permit the pledging, assigning or encumbering in any way of
appropriations made by the legislature or revenue derived from the investment of the
proceeds of the sale and from the rental of such lands as have been set aside by the
enabling act approved June 20, 1910, or other legislative enactments of the United
States, for the use and benefit of the institution.

15-1488 Bonds obligations issued for and on behalf of institutions
All bonds issued pursuant to this article shall be obligations issued by the board
for and on behalf of the institution payable only in accordance with the terms thereof,
and shall not be obligations general, special or otherwise of the state of ARIZONA. Such
bonds shall not constitute a debt, legal or moral, of the state of ARIZONA, and shall not
be enforceable against this state, nor shall payment thereof be enforceable out of any
funds of the institution issuing said bonds other than the income and revenue pledged and
assigned to, or in trust for the benefit of, the holder or holders of such bonds. No
institution shall be dissolved until all of the bonds issued by the board for and on
behalf of the institution have been paid in full.

15-1489 Certification of bonds by attorney general
The board may submit to the attorney general of the state of ARIZONA any bonds to be
issued under this article after all proceedings for the issuance of such bonds have been
taken. Upon the submission of such proceedings to the attorney general, it shall be his
duty to examine into and pass upon the validity of the bonds and the regularity of all
proceedings in connection therewith. If such proceedings conform to the provisions of
this article, and if the bonds when delivered and paid for will constitute binding and
legal obligations authorized by the board for and on behalf of the institution,
enforceable according to the terms thereof, the attorney general shall certify in
substance upon the back of each of said bonds that it is issued in accordance with the
constitution and laws of the state of ARIZONA.

15-1490 Excision of unconstitutional or ineffective parts of article
It is declared that the sections, clauses, sentences and parts of this article are
severable, are not matters of mutual essential inducement and any of them may be excised
by any court of competent jurisdiction if this article would otherwise be
unconstitutional or ineffective. It is the intention of this article to confer upon the
board, for and on behalf of the institution, all or any part of the powers in this
article provided for, and if any one or more sections, clauses, sentences or parts of
this article shall for any reason be questioned in any court of competent jurisdiction
and shall be adjudged unconstitutional or invalid, such judgment shall not affect, impair
or invalidate the remaining provisions thereof, but shall be confined in its operation to
the specific provision or provisions so held unconstitutional or invalid, and the
inapplicability or invalidity of any section, clause, sentence or part of this article in
any one or more instances shall not be taken to affect or prejudice its applicability or
validity in any other instance.

15-1491 Supplemental nature of article; construction and purpose
The powers conferred by this article shall be in addition to and supplemental to the
powers conferred by any other law, general or special, and bonds may be issued under the
provisions of this article notwithstanding the provisions of and without regard to the
procedure required by any other such law. Insofar as the provisions of this article are
inconsistent with the provisions of any other law, general or special, the provisions of
this article shall be controlling.