The proposed bill would significantly update current statutes regarding school districts placed in receivership by the State Board of Education (SBE). It introduces new provisions requiring the termination of the superintendent for cause and declaring all governing board seats vacant by operation of law. The bill also establishes procedures for appointing new governing board members and prohibits individuals whose seats were vacated due to receivership from holding appointed office in Arizona. Additionally, it mandates that governing boards cannot engage in multiple real estate transactions involving the same parties and property within a 12-month period. Moreover, the bill sets specific requirements for the financial improvement plan, including the prohibition of severance packages for terminated superintendents and a process for appealing terminations. It requires school district administrators to provide relevant information before budget or expenditure approvals and modifies the criteria for a school district to be considered in a deficit. The bill also introduces a new section requiring the immediate resignation of all governing board members upon receivership, with exceptions for those who reported financial misconduct or were recently elected. Overall, these updates aim to enhance accountability and transparency in the management of school districts under receivership.

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