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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
violations of state law; schools
Purpose
Requires the Attorney General (AG), at the request of a legislator, to investigate a school district governing board official action or a county or municipality written policy, rule or regulation that the legislator alleges violates state law or the Arizona Constitution. Requires the Arizona Department of Education (ADE) to withhold 10 percent of a school district's monthly Classroom Site Fund (CSF) monies if the school district fails to resolve a violation identified by the AG within 30 days.
Background
At the request of a legislator, the AG must investigate any ordinance, regulation, order or other official action adopted or taken by a county, city or town governing body the legislator alleges violates state law or the Arizona Constitution. Within 30 days of receiving a complaint, the AG must report its findings and conclusions to outlined individuals. If the AG concludes that a violation has been committed, the AG must provide notice of the violation to the governing body and indicate that the governing body has 30 days to resolve the violation. If the governing body fails to resolve the violation within 30 days of receiving the AG's notification, the AG must notify the State Treasurer to withhold and redistribute state shared revenues from the county, city or town. Following the resolution of a violation, the AG must notify the State Treasurer to restore state shared revenues distributions (A.R.S. § 41-194.01).
The CSF provides funding to public schools from the Permanent State School Fund and the additional 0.6 percent transaction privilege tax (TPT) and excise tax for education. A public school may spend CSF monies on: 1) class size reduction; 2) teacher compensation, development and liability insurance premiums; 3) assessment intervention programs; 4) dropout prevention programs; and 5) student support services. Public schools receive CSF monies monthly in an amount not to exceed one-twelfth of the school's annual CSF appropriation. Each public school must establish a local-level CSF to receive allocations from the state-level CSF (A.R.S. § 15-977).
Laws 2021, Chapter 403 expands the official actions that a legislator may request the AG to investigate for a violation of state law to include a written policy, rule or regulation adopted by an agency, department or other entity of an Arizona county or municipality. The Arizona Superior Court (unreported): City of Phoenix v. State of Arizona, CV 2021-012955 (Ariz. Super. Ct. Nov. 2, 2021) deemed the portion of Laws 2021, Chapter 403 relating to AG investigations of a written policy, rule or regulation unconstitutional.
There is no anticipated fiscal impact to the state General Fund associated with this Legislation.
Provisions
1. Adds, to the official actions that the AG must investigate for a violation of state law or the Arizona Constitution, on the request of a legislator:
a) an ordinance, regulation, order or other official action adopted or taken by a school district governing board; or
b) a written policy, written rule or written regulation adopted by an agency, department or other entity of an Arizona county, city or town.
2. Requires the AG, if a school district fails to resolve a violation identified by the AG within 30 days, to notify ADE and requires ADE to withhold 10 percent of the school district's monthly CSF monies until the school district resolves the violation.
3. Prohibits ADE from withholding any CSF monies that are transferred to the CSF from the Permanent State School Fund or the 0.6 percent additional TPT and excise tax.
4. Prohibits a school district, during the same fiscal year in which the school district has CSF monies withheld for a violation, from reducing the pay or benefits of an employee who is a teacher, instructional staff or classified staff.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 13, 2023
LB/MH/slp