The proposed bill would update current statutes regarding school district governance in Arizona, particularly in situations where a school district is placed in receivership by the State Board of Education (SBE). Under the new provisions, each seat of the school district governing board would be deemed vacant 31 days after the SBE places the district in receivership, and the school district superintendent would be required to be terminated for cause. The bill also prohibits the governing board from entering into multiple real estate transactions involving the same parties and property within a 12-month period, enhancing accountability in financial management. Additionally, the bill introduces a waiver process for governing board members who can demonstrate attempts to address fiscal mismanagement or who received false information regarding the district's finances, while defining supporting evidence for waiver applications. It removes the requirement for a county school superintendent to call a special election to replace temporarily appointed governing board members. The bill also mandates that receivers submit a detailed financial improvement plan and budget within 120 days of appointment, which must include a proposed timeline for achieving financial solvency. Overall, these changes aim to strengthen oversight and governance in financially troubled school districts.

Statutes affected:
Introduced Version: 15-103, 15-302.01, 15-421, 15-107, 15-536, 15-302
House Engrossed Version: 15-103, 15-302.01, 15-341, 38-201, 15-107, 15-536, 15-302, 15-717.01, 15-701, 15-701.01, 15-481, 15-491, 15-342, 15-1224, 15-1125, 15-1126, 15-1223, 13-3108, 13-3120, 15-764, 15-761, 13-706, 13-105, 15-157, 2008-2009, 39-101, 36-2267, 3-365, 41-5701.02, 41-5711, 15-1102
Senate Engrossed Version: 15-103, 15-302.01, 15-341, 38-201, 15-107, 15-536, 15-302, 15-717.01, 15-701, 15-701.01, 15-481, 15-491, 15-342, 15-1224, 15-1125, 15-1126, 15-1223, 13-3108, 13-3120, 15-764, 15-761, 13-706, 13-105, 15-157, 2008-2009, 39-101, 36-2267, 15-905, 3-365, 41-5701.02, 41-5711, 15-1102