Assigned to APPROP AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2233
dropout recovery programs; special audit
(NOW: improvements; schools; operation)
Purpose
Requires, beginning January 1, 2029, a school district school that is assigned an F letter
grade for three years to initiate a collaborative operational and instructional partnership
(collaborative partnership) or be assigned a solutions team as outlined. Establishes, through
December 31, 2027, the Operation Excellence School Improvement Program (Operation
Excellence), requiring certain district and charter schools to engage in improvement plans as
prescribed. Appropriates $58,000,000 and seven full-time equivalent positions from the state
General Fund in FYs 2023 through 2025 for Operation Excellence funding and administration.
Background
The Arizona Department of Education (ADE) must annually compile an achievement
profile for each school, school district and charter holder, subject to specified exemptions, that
includes at least outlined academic and educational performance indicators. The A through F letter
grade system adopted by the State Board of Education (SBE) must be applied to each performance
indicator and the SBE must assign each school or local education agency an overall letter grade
(A.R.S. § 15-241).
Corrective actions for a school that is assigned a D or F letter grade include: 1) development
of an improvement plan; 2) assigning a solutions team to a school operated by a school district
(district school); 2) replacing the management of a district school with a governmental or private
organization; and 3) revoking a charter. The SBE may also approve, for certain school districts, an
alternative operation plan allowing a governmental or private organization to manage the school
district's affairs (A.R.S. §§ 15-241.01 and 15-241.02).
The Arizona Public School Credit Enhancement Program (Credit Enhancement Program)
assists achievement district schools approved by the Credit Enhancement Eligibility Board (Credit
Enhancement Board) in obtaining favorable financing for capital facilities by guaranteeing the
payment of principal and interest on debt obligations issued by or on behalf of the school (A.R.S.
41, Chapter 56, Article 11). To qualify as an achievement district school, a school must have: 1)
an A letter grade; 2) at least three years of proven instructional strategies and curricula
demonstrating high academic outcomes; 3) a verifiable enrollment demand; 4) a sound financial
plan that contemplates operational costs and future enrollment growth; 5) shown a commitment to
provide technical assistance to an underperforming school in Arizona; and 6) any other criteria
established by the Credit Enhancement Board (A.R.S. § 41-5841).
The strike-everything amendment appropriates $58,000,000 and seven full-time equivalent
positions from the state General Fund in FYs 2023 through 2025 for Operation Excellence funding
and administration. FACT SHEET – Amended
H.B. 2233
Page 2
Provisions
School Accountability for District Schools
1. Directs, beginning January 1, 2029, the SBE to require a district school assigned an F letter
grade for three consecutive years that has not demonstrated student growth at a rate higher than
Arizona to select to either:
a) be assigned a solutions team and an alternative operation plan; or
b) initiate a collaborative partnership as outlined.
2. Directs the SBE to require a district school that selects a collaborative partnership to initiate
the partnership with:
a) a school that is assigned an A letter grade; or
b) an organization that has demonstrated increasing academic achievement with students
similar to the student demographic population of the school.
3. Requires the SBE, for a school that selects to be assigned a solutions team, to direct the SPI
and the county educational service agency to collaboratively assign a solutions team and hold
a public hearing to provide an alternative operation plan for the school as statutorily-outlined.
4. Requires a collaborative partnership to address:
a) a school improvement framework that has demonstrated success in like populations;
b) identified focus on guaranteed and viable curriculum;
c) professional development for improvement in pedagogy and content;
d) evidence of a focus on data-driven decisions; and
e) identified focus on development of site leaders.
5. Requires the SBE to allow for a variety of options in collaborative partnership selection and
development and prohibits the SBE from prescribing the scope of the partnership.
6. Directs the SBE to review and approve a collaborative partnership plan.
7. Authorizes the SBE to establish a subcommittee to make recommendations to the SBE
regarding the collaborative partnership that includes:
a) SBE members;
b) members of the local school community,
c) representatives of ADE;
d) the county school superintendent of the county in which the school is located; or
e) other members as determined by the SBE.
Operation Excellence Schools
8. Establishes Operation Excellence, beginning FY 2023, to improve academic outcomes and
opportunities for all students in eligible schools and repeals Operation Excellence on
January 1, 2028.
FACT SHEET – Amended
H.B. 2233
Page 3
9. Directs the SBE, beginning January 1, 2023, to designate, as an Operation Excellence school
(designated OE school), a district school or charter school that:
a) received a D or F letter grade during both FY 2019 and FY 2022; or
b) is not eligible to receive or has not been assigned a letter grade and that ADE has identified,
in the prior or most recent fiscal year, as requiring comprehensive support and
improvement for low achievement in accordance with the Every Student Succeeds Act
(ESSA).
10. Allows a school to opt to participate in Operation Excellence (voluntary OE school), and notify
the SBE by January 30, 2023, if the school district or charter holder operating the school has
been either:
a) assigned a C, D or F letter grade during FY 2019 or FY 2022, and at least 60 percent of the
enrolled pupils included in the school's student count are eligible for free or reduced-price
lunches (FRPL) or other school programs dependent on a poverty measure, including the
community eligibility provision; or
b) identified by ADE, in the prior or most recent fiscal year, as a school requiring
comprehensive support and improvement for low achievement in accordance with ESSA.
11. Specifies that a charter school participating in Operation Excellence is not immune from or
otherwise protected against the charter school's sponsor revoking the charter during the
duration of participation.
Operation Excellence Improvement Fund
12. Establishes the School Achievement Improvement Fund (Improvement Fund), administered
by ADE at the direction of the SBE and consisting of legislative appropriations, gifts, grants,
donations and any other transferred monies.
13. Appropriates, from the state General Fund in each of FYs 2023 through 2025:
a) $58,000,000 to the Improvement Fund; and
b) seven full-time equivalent positions to the SBE for Operation Excellence administration.
14. Authorizes the SBE, in each of FYs 2023 through 2025, to use up to $1,000,000 of
appropriations to the Improvement Fund to administer Operation Excellence.
15. Directs ADE, for FYs 2024, 2025 and 2026, to distribute at the SBE's direction, from the
Improvement Fund to school districts and charter schools that engage in school improvement,
$150 per student enrolled in the current year.
16. Sets, at $30,000, the minimum total funding amount for a school that is eligible to receive
small school weight funding.
17. Requires a school district or charter holder to spend Improvement Fund monies at, and for, the
benefit of a qualifying school site and separately account for the monies in the annual financial
report.
18. Requires schools that receive Improvement Fund funding to implement evidence-based,
proven strategies to increase academic proficiency and growth. FACT SHEET – Amended
H.B. 2233
Page 4
19. Directs ADE to disburse funding for that fiscal year only on the SBE's approval of the school's
improvement plan and requires the SBE to annually direct ADE to provide the payments to
schools that are in compliance with Operation Excellence requirements on July 1.
20. Requires ADE, if the appropriated amount is not sufficient to fully pay each school, to first
fund all designated OE schools and then allocate funding for voluntary OE school sites
proportionately, per student.
21. Specifies that Improvement Fund monies are continuously appropriated and exempt from
lapsing, except that monies remaining on December 31, 2029, revert to the state General Fund.
22. Allows ADE to accept and spend federal monies and private grants, gifts, contributions and
devises to assist in implementing Operation Excellence.
Operation Excellence Improvement Plans
23. Requires the governing board or charter holder of a designated OE school to establish an
operation excellence committee (OE Committee) composed of at least:
a) the school district superintendent or the identified charter school's chief administrative officer;
b) the identified school's principal; and
c) at least one parent of a child who attends the school and at least one teacher from the school.
24. Stipulates that the number of parents and teachers on the OE committee must be equal.
25. Requires, by March 1, 2023, a school district or charter holder of a voluntary OE school and
the OE Committee of a designated OE school to submit to the SBE an improvement plan to
improve student outcomes.
26. Requires a voluntary OE school's improvement plan to identify a mentor to assist with
academic achievement who:
a) is a current or former school leader with a demonstrable record of leading a successful
school improvement effort; and
b) commits to providing regular check-ins and advice to the participating school leader whom
the person is mentoring.
27. Specifies that an improvement plan may include targeted academic interventions, professional
development, adaptive technology or other evidence-based, proven strategies to close the
achievement gap.
28. Allows the governing board of a designated OE district school to apply to the SBE for a waiver
of statutes governing school employees and teacher certification for the improvement plan's
duration by identifying the applicable provisions and explaining the reasons for exemption.
29. Requires an Operation Excellence improvement plan for a school district with an existing
improvement plan on file with ADE to attempt to align with or expand on the existing
improvement plan.
FACT SHEET – Amended
H.B. 2233
Page 5
30. Requires the SBE to:
a) review and approve improvement plans within 90 days after submission;
b) annually review each improvement plan and require any modifications; and
c) consult and engage with school improvement experts that have proven to be successful in
Arizona to develop an evidence-based model framework for school improvement.
31. Requires the SBE to assist an Operation Excellence school in:
a) collecting and analyzing student achievement data;
b) recommending changes to improve student achievement;
c) monitoring improvement plan implementation; and
d) providing implementation support for the improvement plan.
Operation Excellence Partners
32. Directs the SBE to, by January 1, 2023, identify through a request for proposals approved
independent school improvement partners (independent partners) for inclusion on a partner
network list.
33. Requires the SBE to award contracts to independent partners that have:
a) a credible track record of improving student academic achievement in public schools with
various demographic characteristics as measured by statewide assessments;
b) experience designing, implementing and evaluating data-driven instructional systems in
public schools;
c) experience coaching public school administrators and teachers on designing and
implementing data-driven school improvement plans; and
d) experience delivering high-quality professional development and coaching in instructional
effectiveness to public school administrators and teachers.
34. Requires a school district or charter holder of a designated OE school to select from the partner
network list to implement the improvement plan in partnership with the OE committee.
35. Directs the OE committee of a designated OE district school to inform the SBE which approved
independent partner or partners will implement the improvement plan.
36. Allows an Operation Excellence school that is not demonstrating student academic growth or
is otherwise dissatisfied with a contracted independent partner's services to submit to the SBE
a request to cancel that contract and select a different independent partner on SBE approval.
37. Deems a state agency, or subsidiary of the state agency, that meets independent partner criteria
to be eligible for inclusion on the partner network list.
Operation Excellence Administration and Reporting
38. Allows the SBE to adopt rules, policies and procedures to carry out Operation Excellence,
including rules to establish an appeals process for a school that does not receive approval of
its improvement plan. FACT SHEET – Amended
H.B. 2233
Page 6
39. Requires, by June 1, each school that received Improvement Fund monies in the prior fiscal
year to annually submit a report to the SBE describing how the improvement plan has improved
student academic achievement.
40. Authorizes the SBE to:
a) request additional information or data to be included in the reports; and
b) require additional reports throughout the year to assess a school's progress.
41. Directs the SBE, if an improvement plan or annual report is not submitted, to withhold
Improvement Fund monies until the plan or report is submitted.
42. Requires the SBE, by October 1 of 2024, 2025 and 2026, to compile each school's report and
provide the information to:
a) the Joint Legislative Budget Committee;
b) the Governor's Office of Strategic Planning and Budgeting; and
c) the Chairpersons of the House of Representatives and Senate education committees, or
their successor committees.
43. Requires the SBE, by December 1, 2027, to submit a final report on Operation Excellence, and
provide a copy to the Secretary of State, to the:
a) Governor, President of the Senate and Speaker of the House of Representatives;
b) the Joint Legislative Budget Committee; and
c) the Governor's Office of Strategic Planning and Budgeting.
44. Prescribes the following information for inclusion in the Operation Excellence final report:
a) the participating schools and independent improvement partners;
b) the academic progress of students in participating schools; and
c) any other information necessary to evaluate the effectiveness of Operation Excellence.
Miscellaneous
45. Authorizes a charter school that is approved as an achievement district school to expand to
serve more students by applying to the charter sponsor:
a) for an enrollment cap increase through an expedited process the sponsor establishes; or
b) to establish a new school through an expedited process the sponsor establishes.
46. Requires the expedited process established by the Arizona State Board for Charter Schools
(AZSBCS) to:
a) require an enrollment cap increase application to be reviewed and acted on within 30 days
after submission;
b) require only the approval of the AZSBCS Executive Director, except that if the Executive
Director denies the application, the application must be transmitted to the AZSBCS for
final determination; and
c) reduce unnecessary and duplicative paperwork requirements.
47. Specifies that a charter school applying under an expedited process is not required to submit:
a) more than a one full-page narrative explaining the rationale for growth; or
b) an enrollment matrix and staffing chart. FACT SHEET – Amended
H.B. 2233
Page 7
48. Specifies that a charter school sponsor's action required to restore a charter school assigned an
F letter grade to acceptable performance is according to a process the charter sponsor
establishes.
49. Requires, rather than allows, the School Facilities Division to review or audit, or both, the
prescribed information a school district annually submits as required by the Division and the
School Facilities Oversight Board for administration of the Building Renewal Grant Fund.
50. Makes technical and conforming changes.
51. Becomes effective on the general effective date, retroactive to July 1, 2022.
Amendments Adopted by Committee of the Whole
1. Removes the establishment of the Arizona Expanding Excellence Fund, administered by the
Arizona Department of Administration at the direction of the Credit Enhancement Eligibility
Board, to issue grants for expanding certain schools and the collaboration between certain
schools as outlined.
2. Makes conforming changes.
Senate Action
ED 6/20/22 W/D
APPROP 6/22/22 DPA/SE 6-3-1
Prepared by Senate Research
June 24, 2022
LB/slp