The proposed bill would update current statutes by introducing new requirements for school districts regarding compliance with the Uniform System of Financial Records (USFR). Specifically, it mandates that if a school district does not rectify a USFR deficiency within 18 months of notification from the Auditor General, the State Board of Education must consult with the Arizona Department of Education to provide necessary training and interventions. The bill also imposes a civil penalty of one percent of the school district's most recent general budget limit for each month of continued noncompliance after the 18-month period, with collected penalties directed to a newly established Portal Fund.

Additionally, the bill transfers 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 establishes the Portal Fund to cover costs associated with the Portal and ensures that these funds are continuously appropriated and exempt from lapsing. Furthermore, it restricts school district governing boards from calling for certain elections until they have achieved compliance with USFR for at least 12 months. 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