15-249.15. Arizona industry credentials incentive program; distributions; report; fund; program termination

A. The Arizona industry credentials incentive program is established within the department of education to provide incentive awards to school districts, charter schools and career technical education districts for high school graduates who obtain a certification, credential or license that is accepted by a vocation or industry through a career technical education course or program.

B. On or before September 1 of each year, the office of economic opportunity shall provide an in-demand education list to the department of education that includes information related to wages, business growth and job openings and that identifies and ranks the top occupations in each industry that address a critical statewide, regional or local economic need. The office of economic opportunity shall incorporate industry feedback as part of the development of the in-demand education list.

C. On or before October 1 of each year, the department of education shall align the office of economic opportunity in-demand education list to the career technical education industry credentials list of approved career technical education programs.

D. On or before February 1 of each year, the department of education shall convene a quality skills commission to be composed of individuals from the office of economic opportunity, the department of education, the Arizona commerce authority, school districts, charter schools, career technical education districts, industry partners and business organizations to review a separate career technical education industry credential list that includes only those certificates, credentials and licenses that would qualify for the Arizona industry credential incentive program.

E. On or before March 1 of each year, the department of education shall publish and post on its website and submit to the joint legislative budget committee for review the career technical education industry credentials list that includes only those certificates, credentials and licenses that would qualify for the Arizona industry credentials incentive program in the subsequent school year.

F. Beginning in fiscal year 2020-2021, the department of education shall pay an incentive award of $1, 000 to school districts, charter schools and career technical education districts for each student who meets both of the following conditions:

1. Demonstrates completion of high school graduation requirements pursuant to section 15-701.01 in the second school year preceding the budget year.

2. Completes a program resulting in a qualifying certificate, credential or license that is included on the career technical education industry credentials list pursuant to subsection E of this section or that was included on the list at the time the student began the program.

G. If the statewide sum of the incentive awards pursuant to subsection F of this section exceeds the amount of available monies appropriated for incentive awards, the monies shall be reduced proportionally to cover all eligible incentive awardees. A student at the public school may generate only one $1, 000 award even if the student earns more than one qualified certificate, credential or license. The department of education shall disburse the award amount for a student to the school district, charter school or career technical education district that the student attended for coursework related to the industry credential award being paid on that student's behalf. If the student received that coursework at more than one school district, charter school or career technical education district, the award amount shall be allocated on a pro rata basis in a manner determined by the department of education.

H. A school district, charter school or career technical education district that receives an incentive award pursuant to this section shall spend these monies on any of the following:

1. For instructional costs and professional development for a career technical education program teacher to become a certifying professional for an approved certificate, credential or license.

2. To offset the students' cost of certification, credentialing or licensure.

3. For developmental costs related to creating, expanding or improving an approved site of a certificate, credential or license career technical program or course.

4. For instructional hardware, software or supplies required for the certification, credentialing or licensure.

5. For career exploration in any school grade and awareness activities for parents, students and the community for the approved sectors.

I. Any incentive award monies received by a school district, charter school or career technical education district pursuant to this subsection shall be separately accounted for in the school district's, charter school's or career technical education district's annual financial report within the career technical education line item with the intent that school districts, charter schools and career technical education districts report on the expenditures as specified in subsection H of this section.

J. Subject to review and approval of the state board of education, the department of education shall establish the format of the online application, the submission of data, the reporting requirements, including submittal of data through a designated online portal, and audit procedures for the Arizona industry credentials incentive program.

K. Subject to the review and approval of the state board of education, on or before February 1 of each year, the department of education shall submit to the president of the senate, the speaker of the house of representatives, the governor and the secretary of state a report that summarizes all of the following for the prior fiscal year:

1. The number of students at each school, by grade level, who were enrolled in a career technical education program or course with a qualifying certificate, credential or license.

2. The number of high school graduates at each school who completed a career technical education program and obtained a qualifying certificate, credential or license.

3. The incentive awards distributed to each school.

4. The number and types of certificates, credentials and licenses obtained by students who received incentive awards.

L. The Arizona industry credentials incentive fund is established consisting of monies appropriated for this purpose. The department of education shall administer the fund. Monies in the fund are continuously appropriated. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

M. The program established by this section ends on July 1, 2029 pursuant to section 41-3102.