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. Under the new provisions, if a school district does not rectify a USFR deficiency within 18 months of receiving notice from the Auditor General, the State Board of Education must consult with the Arizona Department of Education to provide necessary training and interventions. Additionally, a civil penalty of one percent of the school district's general budget limit would be imposed for each month of continued noncompliance after the 18-month period, with collected penalties deposited into a newly established Portal Fund.

Moreover, the bill would transfer oversight of the School Financial Transparency Portal from the Arizona Department of Administration to the Arizona Department of Education, along with all related contracts and obligations. It would also create a continuously appropriated Portal Fund to cover costs associated with the Portal, including contractor expenses. The bill further restricts school district governing boards from holding certain elections until they have achieved compliance with the USFR for at least 12 months. Overall, these updates aim to enhance financial accountability and transparency within 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