The proposed bill would update current statutes related to school district governance in Arizona, particularly in instances of receivership by the State Board of Education (SBE). Key changes include the requirement for the termination of the school district superintendent for cause, and the declaration of all governing board seats as vacant 31 days after receivership is established. The bill also specifies procedures for appointing new governing board members, mandating that the county school superintendent appoint replacements without nominations from the former board. Additionally, it introduces eligibility restrictions for individuals who previously held vacated board seats, barring them from holding appointed office in Arizona. Moreover, the bill eliminates the previous requirement for a governing board member to resign upon the school district entering receivership and prohibits multiple real estate transactions involving the same parties and property within a 12-month period by governing boards. Other updates include modifying the deficit criteria from "five percent" to "percent" of the school district's revenue control limit, clarifying the SBE's jurisdiction over receivership petitions, and imposing new requirements on receivers, such as submitting a financial improvement plan within 120 days of their appointment. The bill also includes retroactive applicability clauses and a severability provision to maintain the effectiveness of remaining provisions if any part is invalidated.

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