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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
school district governing boards; training
Purpose
Requires each school district governing board (governing board) member who has not previously served as a governing board member in Arizona to complete a training program relating to school finance within 30 days after taking office. Outlines requirements for the training program, including instructional requirements and reporting requirements to ensure governing board member compliance. Deems a governing board member who fails to complete the prescribed training program ineligible for election or appointment to the office of governing board member if outlined conditions are met.
Background
A person is eligible for election to the office of governing board member if: 1) the person is a registered voter in Arizona; 2) the person has been a resident of the school district for at least one year immediately preceding the day of election; and 3) the person is not subject to registration as a sex offender in Arizona or in any other jurisdiction (A.R.S. § 15-421).
The Office of the Auditor General (OAG) conducts an annual financial risk analysis to monitor each school district's overall financial risk of not being able to operate within the school district's budget constraints and available cash resources. The OAG uses 10 financial risk measures to analyze and identify a school district's financial risk, including: 1) the change in a school district's weighted student count; 2) the school district's operating budget; 3) the school district's general fund operating margin ratio; 4) the school district's general fund change in fund balance; and 5) capital monies redirected to operations (OAG).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires each governing board member of each school district who has not previously served as a governing board member in Arizona, to complete a training program not later than 30 days after taking office that includes a total of at least eight hours of instruction on school finance, including how the following topics relate to school finance:
a) school district governance;
b) the fiduciary duties of governing board members;
c) how to develop, adopt and implement governing board policies;
d) community engagement and collaboration with stakeholders;
e) student outcome-focused school district governance;
f) the legal and ethical responsibilities of governing board members; and
g) any other professional development topics that are relevant to service as a governing board member.
2. Requires the county school superintendent of the county in which a school district is located to provide a training program that is approved by the OAG and that meets the outlined training program instructional requirements.
3. Specifies that, if a school district is located in more than one county, the county school superintendent of the county in which a governing board member resides must provide the prescribed training program.
4. Allows a county school superintendent to enter into an intergovernmental agreement or contract with another county school superintendent to provide the training program through the other county school superintendent's office.
5. Requires each governing board member, by October 1, 2027, and each year thereafter, to notify the county school superintendent of the county in which the school district is located the date on which each governing board member who was elected or appointed in the immediately preceding year and has not previously served as a governing board member completed the training program.
6. Specifies that, if the school district is located in more than one county, the governing board member may notify the county school superintendent of the county in which the governing board member resides.
7. Requires each county school superintendent, by November 1, 2027, and each year thereafter, to compile the notifications received from governing board members and submit a report to the State Board of Education (SBE) that indicates whether each newly elected or appointed governing board member completed the training program.
8. Requires the SBE, by December 1, 2027, and each year thereafter, to compile the county school superintendent reports and submit a report to the Governor, the Senate President, the Speaker of the House of Representatives, the OAG and the Superintendent of Public Instruction that indicates whether each newly elected or appointed governing board member completed the training program.
9. Requires ADE to provide a training program that is approved by the OAG and meets the outlined training program instructional requirements for each governing board member who has not completed a training program that is provided by a county school superintendent.
10. Allows ADE to charge each school district of the cost of providing the training program to the school district's governing board members.
11. Requires a school district to pay for any costs incurred by ADE to provide the training program to the school district's governing board members.
12. Deems a governing board member who fails to complete the prescribed training program and notify the county school superintendent of the completion ineligible to be a candidate for nomination, election or appointment to the office of governing board member in any school district, if the governing board member:
a) was not appointed to the office of governing board member during the current term; and
b) is a governing board member of a school district that is identified by the OAG as one of the highest risk school districts in Arizona.
13. Requires ADE and each county school superintendent who provides a training program to submit the training program to the OAG, in a form and manner prescribed by the OAG, for approval before providing the training program to any governing board member.
14. Stipulates that if the OAG disapproves a submitted training program, ADE may submit the training program to the Joint Legislative Audit Committee (JLAC) for review and approval.
15. Requires JLAC to hear and approve or disapprove a submitted training program at the first regular meeting after the training program is submitted.
16. Stipulates that, if JLAC approves the training program by a majority vote, ADE may provide the training program to any governing board member without approval from the OAG.
17. Makes conforming changes.
18. Becomes effective on the general effective date.
Amendments Adopted by the Committee
1. Replaces the requirement for each governing board member in Arizona to complete the prescribed training program every two years with a requirement for only newly elected or appointed governing board members to complete the training program within 30 days after taking office.
2. Adjusts the outlined reporting requirements on governing board members, county school superintendents and the SBE to occur annually, rather than every two years.
3. Makes technical and conforming changes.
House Action Senate Action
ED 2/3/26 DPA 7-5-0-0 ED 3/18/26 DPA 4-2-1
3rd Read 3/3/26 33-22-4-0-1
Prepared by Senate Research
March 19, 2026
MH/KP/hk