ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
EDUCATION COMMITTEE
DATE: March 21, 2022
SUBJECT: Strike everything amendment to H.B. 2284, relating to operation; improvements; schools
Purpose
Establishes the Arizona Achievement District (AZA District) and the Expanding Access to
Excellent Schools Program (Excellent Schools Program) for establishing district partnership schools
and fresh start schools. Requires, beginning January 1, 2029, a school district school that is assigned
a D or F letter grade for three years to initiate either a district partnership school or a fresh start
school. Establishes, through January 1, 2029, the Operation Excellence School Improvement
Program (Operation Excellence), requiring certain district schools and charter schools to engage in
improvement plans, participate in district partnerships or fresh start schools or close or consolidate.
Establishes related funds, transfers $1 million and seven full-time equivalent positions to the State
Board of Education (SBE) in FYs 2023 through 2025 and outlines program requirements.
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 Joint Legislative Budget Committee (JLBC) fiscal note on H.B. 2808, as introduced,
which contains similar provisions estimates that Operation Excellence would result in at least $41
million in annual state General Fund distributions to schools between FY 2023 and FY 2025. If
the additional eligibility category included in the strike-everything amendment results in a higher
LAURA BENITEZ
LEGISLATIVE RESEARCH ANALYST
EDUCATION COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
H.B. 2284
Page 3
participation rate, the annual distribution may be higher. JLBC estimates a maximum annual cost
of $212.2 million beginning in FY 2028 generated by the district partnership school and fresh start
school requirements in H.B. 2808 but expects actual costs to be lower and materialize
incrementally over several years. To the extent that applying the requirements, beginning January
1, 2029, to schools with a D or F letter grade for three, rather than two, consecutive years reduces
participation, the maximum annual costs generated by requirements in the strike-everything
amendment may be lower (JLBC fiscal note).
Provisions
AZA District Establishment
1. Establishes the AZA District within the Arizona Department of Administration to support the
expansion of high-quality public schools for Arizona students
2. Specifies that the AZA District consists of the existing Credit Enhancement Program and the
Excellent Schools Program.
3. Establishes, to govern the AZA District, the AZA District Board consisting of:
a) one member representing a district school that has been assigned an A letter grade,
appointed by the Governor;
b) one member representing a charter school that has been assigned an A letter grade,
appointed by the Governor; and
c) three public members.
4. Requires the Governor, the President of the Senate and the Speaker of the House of
Representatives to each appoint one of the public members.
5. Transfers, to the AZA District Board, the Credit Enhancement Board's responsibilities for
achievement district school approval and requires the AZA District Board to govern the
achievement district schools application process and eligibility criteria for both the Credit
Enhancement Program and Excellent Schools Program.
6. Requires the AZA District Board to:
a) regularly meet to evaluate and approve or deny achievement district school applications; and
b) report its decision on each application to the applying school within 10 business days after
the Board's decision.
7. Allows the AZA District Board to request data from the School Facilities Oversight Board
regarding the list, published by the School Facilities Division, of vacant buildings and partially-
used buildings that are owned by the state or by school districts and that may be suitable for
the operation of a school (vacant and partially-used buildings).
Achievement District Schools
8. Deems a school that is approved through the AZA District Board's application process to:
a) qualify as an achievement district school; and
b) be eligible for participation in the Credit Enhancement Program and Excellent Schools
Program. STRIKER MEMO
H.B. 2284
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9. Modifies achievement district school criteria to:
a) require a school to have been assigned the required A letter grade, or equivalent successor
classification, for at least two consecutive years; and
b) prohibits an achievement district school that is assigned a B, C, D or F letter grade for two
consecutive years from remaining an AZA District member.
10. Deems an out-of-state charter school operator eligible to qualify as an achievement district
school if the operator meets:
a) the eligibility criteria prescribed for an in-state achievement district school, except for the
A letter grade classification requirement; and
b) any other criteria the AZA District Board establishes.
11. Requires the AZA District Board to establish, for out-of-state charter school operators who
seek to expand in Arizona, an application process, application forms and selection criteria to
qualify as an achievement district school.
12. Specifies that a school approved as an achievement district school before the general effective
date is an achievement district school under the AZA District Board and is not required to
reapply to maintain achievement district school status.
13. Authorizes a charter school that is an AZA District member 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.
14. 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 Executive Director of the AZSBCS, 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.
15. Specifies that a charter school applying under the achievement district school expedited
process is not required to submit:
a) more than a one full-page narrative explaining the rationale for the growth; or
b) an enrollment matrix and staffing chart.
Excellent Schools Program
16. Establishes the Excellent Schools Program to support the expansion of high-quality schools in
Arizona.
17. Directs the AZA District Board to develop a process for:
a) establishing a district partnership school; and
b) approving a fresh start school to replace a school that has been assigned a D or F letter
grade with a high-quality school. STRIKER MEMO
H.B. 2284
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18. Directs, beginning January 1, 2029, the SBE to require a district school assigned a D or F letter
grade for three consecutive years to initiate either a district partnership school or a fresh start
school.
19. Directs the SBE, if the SBE determines that a district partnership school or fresh start school
is not practicable in consultation with the school district, to:
a) 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; or
b) require the school district to close or consolidate the school, if the SBE determines there
are nearby public schools higher achieving than the school and that have adequate capacity
to serve the students that would be displaced.
20. Requires the SBE, in determining the practicability of a district partnership school or a fresh
start school, to consider whether:
a) the school is located in a rural or remote area;
b) there are any achievement district schools willing or available to implement a district
partnership school or a fresh start school; and
c) there are other available school options in proximity to the school identified and, if so, their
ability to serve additional students.
21. Directs the AZA District Board to establish rules, policies and procedures to administer the
Excellent Schools Program.
22. Requires the AZA District Board to annually submit a report, by December 1, to the Governor,
President of the Senate and Speaker of the House of Representatives and transmit a copy to the
Secretary of State.
23. Prescribes the following information for inclusion in the Operation Excellence final report:
a) the number of approved fresh start schools and the number of students impacted;
b) the number of approved district partnership schools and the number of students impacted;
c) any academic performance indicators of currently-operating fresh start schools or district
partnership schools;
d) the amount of Expanding Excellence Fund monies distributed and to whom and in what
amounts the monies were distributed; and
e) any other relevant information about the performance of the Excellent Schools Program.
District Partnership Schools
24. Defines a district partnership school as a district school that:
a) has been assigned a D or F letter grade;
b) currently has enrolled students;
c) has entered into a contractual partnership with a proven, high performing operator that is
an AZA District member that will operate the school; and
d) provides the operator with control over the school's staffing, leadership, day-to-day
operations, instructional programming and schedule and budgeting of those operations. STRIKER MEMO
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25. Allows the governing board of a school that has a D or F letter grade to either:
a) approach the AZA District Board with an already-selected achievement district school that
has demonstrated successful student achievement outcomes with serving students with
similar demographics; or
b) request the AZA District Board to select an achievement district school that has
demonstrated successful student achievement outcomes with serving students with similar
demographics to partner with the school district.
26. Requires a contractual agreement to establish a district partnership school to include:
a) that the students remain students of the school district for the purposes of accountability,
including letter grades or other academic accountability and generating funding allocated
to the school district for the purposes of enrollment;
b) that funding allocated to the achievement district school be agreed on and approved by the
AZA District Board and controlled by the achievement district school operator;
c) that the district partnership school may employ and manage its teaching staff and
instructional personnel in accordance with statutes governing charter schools;
d) provisions for the transportation of students to the district partnership school; and
e) that the operational agreement term is for a length of time determined by the AZA District
Board and that the school district may not change or revoke the operational agreement,
except that the AZA District Board may make changes to or revoke an existing agreement
according to three-year performance reviews.
27. Allows a contractual agreement to establish a district partnership school to include a provision
allowing the achievement district school operator to be required to maintain the building or
make building requirements.
28. Deems an operational agreement that includes the building maintenance or improvements
provisions to be a triple net agreement.
29. Authorizes the AZA District Board to make changes to or revoke an existing agreement if:
a) the district partnership school does not achieve an increase of at least two letter grades
within three years; or
b) is assigned a D or F letter grade in any combination for two consecutive years.
30. Requires, if the achievement district school provides transportation, the contractual agreement
to provide that the school district reimburse the achievement district school in an amount equal
to the transportation funding that the school district receives for those students.
31. Assumes for the purposes of calculating transportation funding in future years and for all other
purposes, that the school district, and not the achievement school, provided transportation to
the district partnership school.
Fresh Start Schools
32. Defines a fresh start school as a school that:
a) is autonomously operated by an achievement district school and has no affiliation to a
school district; STRIKER MEMO
H.B. 2284
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b) has been granted a charter contract from a charter sponsor or currently has a charter contract
and has been authorized to expand to serve more students; and
c) replaces a school that has been assigned a D or F letter grade at the same school site, except
that the AZA District Board may authorize operation at a different location in the same
school district upon determining that operation at the same school site is not practicable.
33. Allows an achievement district school to start a fresh start school in a vacant or partially-used
building of a school district that has either:
a) voluntarily determined to make the building available for use; or
b) has been compelled by law to deploy the building for public use.
34. Directs a fresh start school to enroll students in the manner prescribed for charter school
admissions except that the school must reserve space for and admit any student who resides
within the previous attendance boundary of the school that was assigned a D or F letter grade.
35. Deems an approved fresh start school approved by the AZA District Board to be the school of
record for the purposes of letter grades, generating funding through applicable funding
formulas and governance.
36. Prohibits a fresh start school from operating or generating funding as a fresh start school until
the charter sponsor approves the fresh start school as a new charter school through the
expedited process established by the charter school sponsor.
37. Requires an achievement district school when using a school district building, to either:
a) be granted a 25-year triple net lease; or
b) purchase the building at market rate.
38. Determines, notwithstanding statutory requirements that the sale or lease of school sites be
authorized by a vote of the school district electors, that selling or leasing a building to an
achievement district school does not require authorization by a vote of the school district
electors.
39. Prohibits a fresh start school from leasing or subletting any building in which the school
operates for noneducational purposes.
40. Requires the AZA District Board to complete an initial three-year performance review
followed by subsequent five-year performance reviews for applicable lease agreements.
41. Allows a lease to be terminated or revoked only by the AZA District Board.
Expanding Excellence Fund
42. Establishes the Arizona Expanding Excellence Fund, administered by the AZA District Board
and consisting of legislating appropriations, gifts, grants, donations and any other monies
transferred, to seed high-quality schools in Arizona through the Excellent Schools Program. STRIKER MEMO
H.B. 2284
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43. Allows the following to apply to request up to $2,000 per student in Fund monies, on a onetime
basis, to seed the operations of a new district partnership school or fresh start school, as
applicable:
a) an achievement district school; and
b) a school district that is being required to partner with an achievement district school or to
change operations of a failing school in accordance with any law.
44. Requires Fund allocations to be calculated based on:
a) for district partnership schools, the current number of enrolled students; and
b) for fresh start schools, on the number of students currently enrolled at the school that the
fresh start school is replacing or, if multiple schools are being consolidated, on the
estimated number of students served.
45. Specifies that funding may only be allocated to a party once the AZA District Board has
approved an agreement for a district partnership or fresh start school.
46. Directs ADOA, on approval by the AZA District Board, to distribute monies from the Fund to
an achievement district school or school district partnering with an achievement district school.
47. Prohibits a school or school district from receiving Expanding Excellence Fund monies more
than once for any one district partnership school or fresh start school.
48. Authorizes the AZA District Board to:
a) accept and spend federal monies and private grants, gifts, contributions and devises to assist
in carrying out the Excellent Schools Program; and
b) use up to three percent of available Fund monies to administer the Excellent Schools
Program.
49. Specifies that Fund monies are continuously appropriated and exempt from lapsing.
50. Defines terms.
Operation Excellence
51. Establishes Operation Excellence to improve academic outcomes and opportunities for all
students in eligible schools and repeals Operation Excellence January 1, 2029.
52. 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 a school requiring comprehensive support and
improvement for low achievement in accordance with the Every Student Succeeds Act
(ESSA).
53. Provides a designated OE school the following options and requires the school to notify the
SBE of its selection by January 30, 2023:
a) engage in targeted school improvement through Operation Excellence;
b) participate in a district partnership school or fresh start school; or STRIKER MEMO
H.B. 2284
Page 9
c) close or consolidate the failing school.
54. 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 during FY 2019 or FY 2022, and at least 60 percent of the enrolled
pupils are eligible for free or reduced-price lunch (FRPL) and other school programs
dependent on a poverty measure, including the community eligibility provision for which
FRPL data is unavailable; 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.
55. Directs the SBE, for any participating district school that does not achieve at least a C letter
grade in FY 2026, to:
a) require the school to initiate a district partnership school or a fresh start school;
b) 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; or
c) require the school district to close or consolidate the school, if the SBE determines there
are nearby public schools higher achieving than the school and that have adequate capacity
to serve the students that would be displaced.
56. Allows the SBE to provide a district school that does not achieve at least a C letter grade in FY
2026 with up to two additional school years to improve the letter grade to at least a C, if the
SBE determines the school has demonstrated significant improvement.
57. Requires the SBE, if the district school does not achieve a C letter grade after the provided
period, to take any of the actions prescribed for a district school that does not achieve a C letter
grade in FY 2026.
58. 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.
59. Precludes a school from selecting to participate in a district partnership school or fresh start
school until the AZA District Board develops processes for establishing district partnership
schools and approving fresh start schools.
60. Specifies that only students eligible to be included in a school's student count are considered
in determining the school's percentage of FRPL students or other poverty indicators.
Operation Excellence Improvement Fund
61. 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. STRIKER MEMO
H.B. 2284
Page 10
62. Directs ADE, at the SBE's direction, to distribute from the Improvement Fund to school
districts and charter schools that selected to engage in school improvement, $150 per student
enrolled in the current year for FYs 2024, 2025 and 2026.
63. Sets a minimum total funding amount of $30,000 for a school that is eligible to receive small
school weight funding.
64. 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.
65. Requires schools that receive Improvement Fund funding to implement evidence-based,
proven strategies to increase academic proficiency and growth.
66. 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
school in compliance with the Operation Excellence requirements on July 1.
67. Requires ADE, if the appropriated amount is not sufficient to fully pay each school, to
proportionately allocate funding per student.
68. Specifies that Fund monies are continuously appropriated and exempt from lapsing, except
that monies remaining on December 31, 2028, revert to the state General Fund.
69. Allows ADE to accept and spend federal monies and private grants, gifts, contributions and
devises to assist in implementing Operation Excellence.
70. Specifies that a school that selected to participate in a district partnership school or fresh start
school is ineligible to receive Improvement Fund monies.
Operation Excellence Improvement Plans
71. 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.
72. Requires the number of parents and teachers on the OE committee to be equal.
73. Requires, by March 1, 2023, a school district or charter holder of a designated or voluntary OE
school to submit an improvement plan to improve student outcomes to the SBE.
74. Requires the 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 efforts; and STRIKER MEMO
H.B. 2284
Page 11
b) commits to providing regular check-ins and advice to the participating school leader whom
the person is mentoring.
75. Allows an improvement plan to include targeted academic interventions, professional
development, adaptive technology or other evidence-based, proven strategies to close the
achievement gap.
76. Directs the SBE to, by January 1, 2023, identify through a request for proposals process
approved independent school improvement partners (independent partners) for inclusion on a
partner network list.
77. 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.
78. Directs a school district OE committee to inform the SBE which approved independent partner
or partners will implement the improvement plan.
79. Allows a school that is not demonstrating student academic growth or is otherwise dissatisfied
with a contracted independent partner to submit to the SBE a request to cancel that contract
and select a different independent partner on SBE approval.
80. 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.
81. Deems a state agency or subsidiary of a state agency that meets independent partner criteria to
be eligible for inclusion on the partner network list.
82. 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.
Operation Excellence Administration
83. Transfers to the SBE in each of FYs 2023 through 2025 for administering the Operation
Excellence:
a) $1 million from unexpended and unencumbered appropriated monies of ADE;
b) seven full-time equivalent positions from ADE.
84. Requires the SBE to:
a) review and approve improvement plans within 90 days after submission; and
b) annually review each improvement plan and require any modifications. STRIKER MEMO
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85. Requires the SBE to assist an Operation Excellece school in:
a) student achievement data collection and analysis;
b) recommending changes to improve student achievement;
c) monitoring improvement plan implementation; and
d) providing improvement plan implementation support.
86. Allows the governing board of a designated OE school to apply to the SBE for a waiver of
statutes governing school employees for the improvement plan's duration by identifying the
applicable provisions and explaining the reasons for exemption.
87. 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.
88. Requires, by June 1, each school that received Improvement Fund monies in the prior fiscal
year to submit a report to the SBE describing how the improvement plan has improved student
academic achievement.
89. Authorizes the SBE to request additional information or data to be included in the reports and
require additional reports throughout the year to assess a school's progress.
90. Directs the SBE to withhold Improvement Fund monies if an improvement plan or annual
report is not submitted until the plan or report is submitted.
91. 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.
92. 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.
93. Prescribes the following information for inclusion in the Operation Excellence final report:
a) the participating schools and independent partners;
b) the academic progress of students in participating schools; and
c) any other information necessary to evaluate the effectiveness of Operation Excellence.
Miscellaneous
94. 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. STRIKER MEMO
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95. 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.
96. Directs the School Facilities Division to:
a) certify and audit data provided by school districts for the vacant and partially-used
buildings list regarding schools that are assigned a D or F letter grade; and
b) at the AZA District Board's request, provide any data or assistance regarding potentially
available space.
97. Exempts the AZA District Board from rulemaking for one year.
98. Makes technical and conforming changes.
99. Becomes effective on the general effective date, retroactive to July 1, 2022.