ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: ED DP 7-5-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


HB 2376: schools; real estate transactions; prohibitions

Sponsor: Representative Gress, LD 4

House Engrossed

Overview

Prohibits a school district governing board (governing board) from purchasing any school sites, buildings or grounds where a charter school or private school is operating.

History

A governing board is required to obtain approval from the school district electors before purchasing school sites or constructing, improving and furnishing school buildings from the proceeds of the sale of school property. Statute authorizes a governing board to: 1) enter into a lease-purchase agreement for school buildings or grounds, as lessor or lessee, for less than 20 years, subject voter approval to construct school buildings; 2) enter into lease-purchase agreements for school buildings or grounds, as lessor or lessee, for between 20-99 years if authorized by the school district electors in an election, though authorization is not required under prescribed circumstances; and 3) enter into option agreements for the purchase of school sites. A governing board may purchase or lease school sites without a vote of the school district electors if the buildings and sites are totally funded from specified sources (A.R.S. §§ 15-341 and 15-342).

A governing board may, or on petition of 15% of the school district electors must, call an election to purchase school sites or buildings. The authorization to purchase school sites or buildings does not necessarily have to specify the site to be purchased (A.R.S. § 15-491).

A school district may partner with another school district or a community college to jointly purchase, sell, lease or lease-purchase land, buildings or other real or personal property to provide career and technical education and vocational education (CTE education), subject to prescribed requirements (A.R.S. § 15-789).

Provisions

1.   Prohibits a governing board from purchasing any school site if a charter school or private school is operating at the site. (Sec. 1, 2)

2.   Restricts a governing board from entering into a lease-purchase agreement to purchase any school buildings or grounds if a charter school or private school is operating in the building or on the grounds. (Sec. 2)

3.   Prohibits a governing board from entering into an option agreement to purchase any school site if a charter school or private school is operating at the site. (Sec. 2)

4.   Prohibits a school district from purchasing or entering into a lease-purchase agreement to purchase any lands, buildings or other real property to provide CTE education if a charter school or private school is operating on the land, in the building or on the real property. (Sec. 4)

5.   Specifies an authorization for a governing board to purchase school sites or buildings does not allow the governing board to purchase the site or building if the purchase is prohibited because a charter school or private school operates at the site or in the building. (Sec. 3)

6.   Makes technical and conforming changes. (Sec. 2, 3)

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10.  Initials CH                       HB 2376

11.  2/24/2026  Page 0 House Engrossed

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