The proposed bill would update current statutes related to the Uniform System of Financial Records (USFR) for school districts by introducing new compliance requirements and penalties for noncompliance. Specifically, it would require school districts to correct USFR deficiencies within 18 months of receiving notice from the Auditor General (OAG). If they fail to do so, the State Board of Education (SBE) must consult with the Arizona Department of Education (ADE) to provide necessary training and interventions, with a civil penalty of one percent of the district's most recent general budget limit imposed for each month of continued noncompliance after the 18-month period. Additionally, penalties collected would be deposited into a newly established Portal Fund.

The bill also transfers oversight of the School Financial Transparency Portal from the Arizona Department of Administration (ADOA) to the ADE, including all related contracts and obligations. It establishes a continuous appropriation for the Portal Fund, which will consist of legislative appropriations and civil penalties. Furthermore, school districts would be prohibited from holding certain elections until they have corrected USFR deficiencies and maintained compliance for at least 12 months. Overall, these updates aim to enhance financial accountability and transparency within Arizona's school districts.

Statutes affected:
Introduced Version: 15-272, 15-302, 15-481, 15-491, 15-747, 35-146, 35-147, 16-204, 15-905, 42-12003, 42-12001, 15-422, 15-423, 15-424, 15-426, 15-403, 15-947, 15-482, 15-949, 15-971, 15-447, 15-271, 15-342, 15-493, 15-401, 15-402
House Engrossed Version: 15-272, 15-302, 15-481, 15-491, 15-747, 35-146, 35-147, 16-204, 15-905, 42-12003, 42-12001, 15-422, 15-423, 15-424, 15-426, 15-403, 15-947, 15-482, 15-949, 15-971, 15-447, 15-271, 15-342, 15-493, 15-401, 15-402