Arizona Public Education Funding and Student Nutrition Act

AN ACT

AMENDING TITLE 15, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 7, ARTICLE 8; AMENDING CHAPTER 19; APPROPRIATING MONIES; RELATING TO EDUCATION FUNDING AND STUDENT NUTRITION.

Be it enacted by the Legislature of the State of Arizona:

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SECTION 1. SHORT TITLE

This Act shall be known and may be cited as the "Arizona Public Education Funding and Student Nutrition Act."

SECTION 2. LEGISLATIVE FINDINGS AND DECLARATIONS

The Legislature finds and declares that:

1. Arizona has a constitutional obligation pursuant to Article 11, Section 1 to provide for the "establishment and maintenance of a general and uniform public school system" and to make "such appropriations, to be met by taxation, as shall insure the proper maintenance of all state educational institutions."

2. The state's commitment to a general and uniform public school system requires adequate funding regardless of local property tax revenues to ensure all students receive substantially equal educational opportunities.

3. The state's constitutional obligations to public education must be fully funded before any funds may be allocated to Empowerment Scholarship Account (ESA) vouchers.

4. Arizona compulsory education laws (ARS §15-802) require children to attend school for approximately six hours per day, 180 days per year, constituting state-mandated activity for minor children. When the state compels attendance at educational institutions, it creates a special relationship with those children and assumes responsibility for their basic welfare during compelled attendance hours.

5. Proper nutrition is not merely beneficial but essential for children to meaningfully participate in and benefit from state-mandated educational activities. Scientific research demonstrates that students who receive regular meals at school have improved academic performance, better attendance, fewer behavioral problems, and enhanced cognitive function. Hungry children cannot learn effectively, rendering compulsory attendance without nutritional support an unfunded mandate that places undue burden on families and fails to serve the state's interest in an educated citizenry.

6. Food insecurity among Arizona children negatively impacts educational outcomes and imposes long-term costs on the state through reduced workforce productivity, increased healthcare costs, and higher rates of poverty.

7. Universal school meal programs eliminate stigma, reduce administrative burden on schools, and ensure all students have access to nutritious food necessary for learning during state-compelled school hours.

8. Providing meals during school hours constitutes a necessary condition for the state's exercise of its compulsory education power, not a discretionary gift of public funds. The consideration for this provision is the child's compelled attendance and participation in state-mandated education, which represents valuable consideration equivalent to the benefit provided.

9. All children in Arizona possess inherent dignity and potential as human beings and future citizens. The state's compulsory education laws and corresponding responsibility to provide educational opportunities serve the compelling state interest of developing each child's capabilities, including the ability to:
a. Participate meaningfully in civic life and democratic processes;
b. Manage personal and household affairs with competence;
c. Pursue higher education by meeting minimum standards for admission to institutions of higher learning;
d. Maintain their physical health and well-being through knowledge of nutrition, hygiene, and basic healthcare;
e. Acquire sufficient skills for gainful adult employment;
f. Form and maintain healthy, appropriate relationships with others;
g. Think critically, conduct personal research, evaluate information, and communicate effectively;
h. Develop their unique talents, interests, and capacity for lifelong learning.

This educational development occurs within a framework that respects the primary role of parents in directing their children's education while ensuring all children have access to educational opportunities that develop these fundamental capabilities necessary for full participation in society.

SECTION 3. UNIVERSAL SCHOOL NUTRITION PROGRAM

Title 15, Chapter 7, Arizona Revised Statutes, is amended by adding Article 8, to read:

ARTICLE 8. UNIVERSAL SCHOOL NUTRITION PROGRAM

§15-781. Definitions

In this article, unless the context otherwise requires:

1. "BREAKFAST" means the first meal service of the school day.

2. "COMPELLED SCHOOL HOURS" means the period during which students are required by law to be present at school pursuant to ARS §15-802 and related compulsory attendance laws.

3. "DEPARTMENT" means the Arizona Department of Education.

4. "ELIGIBLE SCHOOL" means a public school that participates in the national school lunch program or the school breakfast program.

5. "LUNCH" means the midday meal service during the school day.

6. "SCHOOL FOOD AUTHORITY" has the same meaning prescribed in 7 Code of Federal Regulations section 210.2.

7. "STATE-MANDATED EDUCATIONAL ACTIVITY" means attendance and participation in educational programs as required by Arizona's compulsory education laws.

8. "SUPERINTENDENT" means the Superintendent of Public Instruction.

9. "UNIVERSAL SCHOOL MEALS" means breakfast and lunch provided at no charge to all students enrolled at eligible schools during compelled school hours.

§15-782. Universal School Nutrition Program; Establishment; Requirements

A. LEGAL BASIS AND ESTABLISHMENT: Pursuant to the state's constitutional obligation to maintain a uniform public school system and its concomitant responsibility to provide the basic necessities for children to comply with compulsory education laws, the Universal School Nutrition Program is established within the department to provide universal school meals to all students in eligible schools. Meals provided under this article constitute a necessary condition for meaningful participation in state-mandated education, not a discretionary public benefit.

B. PROGRAM REQUIREMENTS: The program shall:

1. Provide breakfast and lunch at no charge to all students enrolled at participating schools during compelled school hours.

2. Meet or exceed United States Department of Agriculture nutrition standards for school meals.

3. Prioritize procurement of Arizona-grown and Arizona-produced food products when available and cost-effective.

4. Incorporate culturally appropriate and religiously accommodating meal options.

5. Include vegetarian and allergy-friendly meal options.

6. Prohibit overt identification or stigmatization of students based on family income.

C. MEAL QUALITY STANDARDS: In addition to federal nutrition standards, meals shall:

1. Include fresh fruits and vegetables daily.

2. Limit processed foods and added sugars.

3. Provide whole grain options.

4. Ensure adequate portion sizes for different age groups.

5. Provide sufficient caloric and nutritional content to support cognitive function and learning during compelled school hours.

§15-783. Funding; Reimbursement

A. STATE REIMBURSEMENT: The department shall reimburse eligible schools for the full cost of providing universal school meals, including:

1. Food and beverage costs.

2. Labor and preparation costs.

3. Equipment and infrastructure costs.

4. Administrative costs.

B. REIMBURSEMENT RATES: The superintendent shall establish reimbursement rates that cover the full cost of meal provision, with adjustments for:

1. Regional cost variations.

2. School size and grade levels served.

3. Special dietary requirements.

4. Transportation costs for rural schools.

C. FEDERAL FUND MAXIMIZATION: The department and school food authorities shall maximize federal funding through the national school lunch program, school breakfast program, and other federal nutrition programs.

D. DIRECT CERTIFICATION: The department shall implement direct certification for all students eligible for free meals without application to maximize federal reimbursement.

§15-784. Implementation Timeline

A. PHASE 1 (SCHOOL YEAR 2029-2030): Universal school meals shall be provided in:

1. Schools where at least 70% of students qualify for free or reduced-price meals.

2. Schools in federally designated opportunity zones.

3. Rural schools with demonstrated need.

B. PHASE 2 (SCHOOL YEAR 2030-2031): Universal school meals shall be expanded to:

1. All schools with at least 50% of students qualifying for free or reduced-price meals.

2. All middle schools and high schools in phase 1 districts.

C. FULL IMPLEMENTATION (SCHOOL YEAR 2031-2032): Universal school meals shall be available in all eligible schools statewide.

§15-785. Local Food Procurement

A. PREFERENCE FOR LOCAL FOODS: School food authorities shall give preference to Arizona-grown and Arizona-produced food products when such products are:

1. Available in sufficient quantity.

2. Of acceptable quality.

3. Competitively priced.

B. FARM-TO-SCHOOL PROGRAM: The department shall establish a farm-to-school program to:

1. Connect schools with local farmers and food producers.

2. Provide technical assistance for local food procurement.

3. Develop seasonal menus featuring Arizona products.

4. Support agricultural education and school gardens.

C. SMALL PRODUCER SUPPORT: The department shall develop programs to support small and emerging Arizona food producers in accessing school meal markets.

§15-786. Program Evaluation and Reporting

A. ANNUAL REPORT: By December 31 of each year, beginning in 2030, the superintendent shall submit a report to the governor, the president of the senate, and the speaker of the house of representatives that includes:

1. Number of schools and students participating.

2. Meal participation rates by school and demographic group.

3. Nutritional quality analysis of meals served.

4. Local food procurement data.

5. Program costs and funding sources.

6. Impact on student attendance, behavior, and academic performance.

7. Feedback from students, families, and school staff.

8. Analysis of the program's effectiveness in supporting learning during compelled school hours.

B. INDEPENDENT EVALUATION: Beginning in 2032, and every three years thereafter, the department shall commission an independent evaluation of the program's effectiveness, including cost-benefit analysis and long-term educational and health outcomes.

C. PUBLIC INFORMATION: The department shall maintain a public website with program information, participation data, and school meal menus.

§15-787. Legal Basis and Construction

A. This article shall be construed in light of the state's compulsory education laws and the state's resulting responsibility to provide basic necessities during compelled school attendance.

B. Any challenge to this article under the gift clause (Arizona Constitution Article 9, Section 7) shall consider that:

1. The state compels school attendance through ARS §15-802.

2. Meaningful educational participation requires adequate nutrition.

3. The provision of meals constitutes direct consideration for the child's compelled attendance and participation.

4. The state has a heightened responsibility for children's welfare during hours when it exercises compulsory authority over them.

C. The meals provided under this article represent necessary support for state-mandated educational activity, not a general welfare entitlement. The provision of meals is specifically tied to and justified by the state's exercise of its compulsory education power.

D. Nothing in this article shall be construed to create or imply a general welfare entitlement beyond the specific context of supporting state-mandated educational activities during compelled school hours.

§15-788. Rules

The superintendent shall adopt rules necessary to implement this article by July 1, 2029, including:

1. Reimbursement procedures and rates.

2. Nutritional standards exceeding federal minimums.

3. Procurement standards and local food preferences.

4. Program participation requirements.

5. Data collection and reporting standards.

6. Definitions and standards for "compelled school hours" and related terms.

SECTION 4. PUBLIC EDUCATION FUNDING PRIORITY

Title 15, Chapter 19, Arizona Revised Statutes, is amended by adding §15-1695, to read:

§15-1695. Constitutional Funding Priority for Public Education

A. LEGISLATIVE FINDINGS: The legislature finds that:

1. Article 11, section 1 of the Arizona Constitution establishes the state's paramount duty to provide for the "establishment and maintenance of a general and uniform public school system."

2. This constitutional obligation requires adequate and equitable funding for all public schools.

3. The state's constitutional obligations to public education must be fully met before any funds may be allocated to programs that divert funds from the public school system.

B. CONSTITUTIONAL FUNDING COMMITMENT:

1. The legislature shall annually appropriate sufficient funds to fully meet the state's constitutional obligation to maintain a general and uniform public school system.

2. This appropriation shall be based on the actual costs of providing a constitutionally adequate education to all Arizona students, as determined by the joint legislative budget committee in consultation with education finance experts.

3. The funding shall account for inflation, enrollment growth, and changing educational needs.

C. FULL FUNDING REQUIREMENT: Before appropriating funds for any school choice program that diverts funds from the public school system, including empowerment scholarship accounts, the legislature must first:

1. Fully fund the base level and additional assistance for all public schools.

2. Fully fund all statutory and voter-mandated education programs.

3. Fully fund the actual costs of special education services.

4. Provide adequate funding for teacher and staff compensation to address critical shortages.

5. Fund necessary facility maintenance and construction for public schools.

D. ANNUAL ADEQUACY CERTIFICATION: Beginning January 31, 2029, and each year thereafter, the joint legislative budget committee shall issue a certification stating whether the proposed budget fully meets the constitutional and statutory obligations to public education. This certification shall include:

1. Comparison of proposed funding to actual costs of providing constitutionally adequate education.

2. Analysis of funding equity across districts and student populations.

3. Identification of any funding shortfalls or inadequacies.

E. ESA FUNDING PRIORITIZATION: No funds may be appropriated for empowerment scholarship accounts or similar school choice programs that divert funds from public schools unless:

1. The joint legislative budget committee has certified that public education is fully funded as required by subsection C.

2. The legislature has specifically appropriated funds for such programs in addition to, not in place of, full public education funding.

3. The appropriation for such programs does not reduce funding for any public school or district below the level required for constitutional adequacy.

F. SURPLUS FUNDING REQUIREMENT: If in any fiscal year there are surplus state revenues after all constitutional and statutory obligations are met, including full funding of public education, any additional funding for school choice programs shall be limited to no more than twenty percent of the surplus.

G. CAP ON SCHOOL CHOICE ESAs: The total amount of state funds allocated to empowerment scholarship accounts in any fiscal year shall not exceed five percent of the total state funding for K-12 public education.

H. ENFORCEMENT MECHANISM: If the legislature appropriates funds for empowerment scholarship accounts without first fully funding public education as required by this section:

1. Any parent of a child in a public school, or any school district governing board, shall have standing to challenge the appropriation in court.

2. The court shall give priority to any such challenge.

3. If the court finds a violation of this section, it may provide appropriate relief, which may include enjoining the expenditure of funds for empowerment scholarship accounts until public education is fully funded.

I. ANNUAL REPORTING: Beginning in 2029, the auditor general shall annually report on:

1. Compliance with this section.

2. The fiscal impact of empowerment scholarship accounts on public schools.

3. Comparative funding levels for public schools and school choice programs.

J. SEVERABILITY: If any provision of this section is held invalid, the remainder of this section shall remain in full force and effect.

SECTION 5. EMPOWERMENT SCHOLARSHIP ACCOUNT MODIFICATIONS

§15-2402. Empowerment Scholarship Accounts; Nutritional Support Provision

N. NUTRITIONAL SUPPORT FOR ESA STUDENTS:

1. MEAL OPTIONS FOR ESA STUDENTS: Beginning in the 2029-2030 school year, students using Empowerment Scholarship Accounts shall have access to nutritional support through one of the following options:

a. PUBLIC SCHOOL MEAL PARTICIPATION: ESA students may participate in the Universal School Nutrition Program at their local public school or designated meal site at no additional cost. The department shall establish a process for ESA students to access meals at public schools by July 1, 2029, including:

i. Designated meal service times for ESA students.

ii. Transportation arrangements for ESA students to access meal sites when feasible.

iii. Non-discriminatory meal service that does not identify students based on funding source.

b. MEAL STIPEND OPTION: ESA students attending institutions that cannot provide meal services may receive a meal stipend equivalent to the per-meal reimbursement rate for public schools, to be used at approved food service providers. The stipend shall be:

i. Calculated based on the average daily reimbursement rate for school meals.

ii. Distributed through electronic benefit cards usable at approved retailers and restaurants.

iii. Adjusted annually based on actual meal costs.

c. INSTITUTIONAL MEAL SERVICE: ESA-accepting institutions that choose to provide meal services shall receive reimbursement at the same rates as public schools, provided meals meet state nutritional standards. Institutions may:

i. Prepare meals on-site.

ii. Contract with food service providers.

iii. Partner with local public schools for meal provision.

2. NUTRITIONAL STANDARDS COMPLIANCE: Any institution providing meals to ESA students shall meet or exceed the nutritional standards established in §15-782. The department shall establish an alternative compliance process for institutions that cannot meet all standards due to religious or philosophical beliefs by July 1, 2029, provided basic nutritional adequacy is maintained.

3. LEGAL BASIS FOR ESA MEAL SUPPORT: The state's interest in child welfare and educational outcomes does not cease when a student uses an ESA. Students participating in ESA programs remain subject to Arizona's compulsory education laws and are engaged in state-mandated educational activity. Therefore, the state retains an interest in ensuring these students have access to the nutritional support necessary for meaningful participation in education, regardless of the educational setting.

4. NON-DISCRIMINATION: Meal services for ESA students shall be provided without stigma or identification based on family income, disability status, or funding source. All meal access options shall protect student privacy and dignity.

5. FUNDING ADMINISTRATION: Meal funds for ESA students shall be administered separately from educational ESA funds to ensure proper tracking and accountability. The department shall establish the separate administration system by July 1, 2029, including:

a. Establishment of separate accounts for meal funds.

b. Implementation of oversight procedures to prevent fraud or misuse.

c. Quarterly reports on ESA meal program participation and costs, beginning in 2030.

d. Regular audits of meal fund expenditures.

6. PARENTAL CHOICE: Parents of ESA students shall have the right to choose among available meal options based on their child's needs and circumstances. The department shall provide clear information about all available options beginning in the 2029-2030 school year.

SECTION 6. APPROPRIATIONS

A. UNIVERSAL SCHOOL MEALS PROGRAM: The sum of $250,000,000 is appropriated from the state general fund in fiscal year 2028-2029 to the Arizona Department of Education for implementation of the Universal School Nutrition Program established in §15-781 through §15-788. This appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing appropriations.

B. PUBLIC EDUCATION BASE FUNDING: Such sums as are necessary are appropriated from the state general fund beginning in fiscal year 2028-2029 and each subsequent fiscal year to fully meet the constitutional and statutory obligations to public education as required by §15-1695.

C. ESA MEAL SUPPORT: The sum of $30,000,000 is appropriated from the state general fund in fiscal year 2028-2029 to the Arizona Department of Education for meal stipends and reimbursements for ESA students as provided in §15-2402(N).

D. PROGRAM ADMINISTRATION: The sum of $15,000,000 is appropriated from the state general fund in fiscal year 2028-2029 to the Arizona Department of Education for implementation and oversight of the programs established by this Act.

E. PLANNING AND DEVELOPMENT: The sum of $5,000,000 is appropriated from the state general fund in fiscal year 2027-2028 to the Arizona Department of Education for planning, rulemaking, and system development necessary to implement this Act.

F. FUNDING SOURCE: If the appropriations in this section exceed available general fund revenues, the legislature shall identify additional revenue sources to fully fund these programs, including but not limited to:

1. Closing tax loopholes and exemptions.

2. Adjusting corporate tax rates.

3. Implementing new revenue measures targeted at high-income earners.

4. Reallocating funds from lower priority programs.

SECTION 7. SUNSET AND REVIEW PROVISIONS

A. UNIVERSAL MEALS PROGRAM REVIEW: The Universal School Nutrition Program established in §15-781 through §15-788 shall be evaluated after three years of full implementation in 2035. Continued funding shall be contingent upon demonstration of:

1. Improved student academic outcomes, including test scores, attendance, and graduation rates.

2. Increased meal participation rates across all student demographics.

3. Efficient use of funds, with at least 85% of program expenditures going directly to food and meal service.

4. Positive impact on child nutrition and health, as measured by reduced food insecurity and improved health indicators.

5. Effective implementation of local food procurement and farm-to-school programs.

B. ESA MEAL PROVISION SUNSET: The ESA meal support provisions in §15-2402(N) shall sunset in 2038 unless reauthorized by the legislature based on evaluation of:

1. Effectiveness in ensuring ESA students have access to nutritious meals.

2. Cost-efficiency compared to other nutritional support options.

3. Parental satisfaction and utilization rates.

4. Impact on educational outcomes for ESA students.

5. Administrative feasibility and burden on participating institutions.

C. FUNDING PRIORITY REVIEW: The public education funding priority provisions in §15-1695 shall be reviewed by the joint legislative budget committee beginning in 2031, and every two years thereafter, with recommendations for any necessary modifications based on:

1. Changes in educational costs and needs.

2. Impact on public school funding and quality.

3. Fiscal impact on state budget priorities.

4. Legal developments regarding education funding.

SECTION 8. SEVERABILITY

The provisions of this Act are severable. If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application.

SECTION 9. EFFECTIVE DATE

This Act is effective from and after December 31, 2028, except that sections 3 and 5 of this Act are effective from and after July 1, 2029, to allow for program implementation.

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