SB1233 - 452R - House Bill Summary

House of Representatives

SB 1233

schools; USFR; compliance

Sponsors: Senator Bennett

dp	Committee on Education
dp	Committee on Appropriations
DP	Caucus and COW
DP	Third Read
X	As Passed the House

SB 1233 changes the requirement that the State Board of Education (SBE) notify the Superintendent of Public Instruction (Superintendent) to withhold all state monies from a school district that fails to comply with the uniform system of financial records (USFR) so that any portion of state funds may be withheld until compliance.

History

The Auditor General, in conjunction with the Arizona Department of Education (ADE), is required to prescribe a uniform system of financial records (USFR) to be used by all school districts. Statute provides the parameters of the USFR. The Auditor General is required to report to ADE and SBE regarding a school district’s compliance with the USFR. Any district that fails to comply with the USFR is provided a detailed written letter of the deficiencies of the school district by the Auditor General, and given 90 days to correct such deficiencies, although the Auditor General and ADE may grant an extension. The Superintendent is required to withhold further distribution of state aid until the Auditor General confirms the school district has returned to compliance. Current law allows a school district to request a hearing with the SBE to evaluate the findings of the Auditor General. While under review with the SBE, the Superintendent is prohibited from withholding funds until the school district is deemed to be out of compliance. Additionally, the school district may request a judicial review of the SBE decision, during which time the Superintendent is prohibited from withholding state aid.

Provisions

· Changes the requirement that the SBE notify the Superintendent to withhold all state monies from a school district that fails to comply with the USFR so that any portion of state funds may be withheld until compliance.

· Repeals the ability of a school district to:

· Receive an extension of time to come into compliance with the USFR beyond the 90 day period.

· Request a hearing before the SBE if the school district is not in compliance with the USFR. Currently, the Superintendent is prohibited from withholding state aid until completion of the hearing, if requested, and the SBE finds the school district is not in compliance.

· Seek judicial review of the SBE decision. While under review, the Superintendent is prohibited from withholding state monies.

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· 45th Legislature