Assigned to ED FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR S.B. 1163
bond or override; contracts; prohibition
Purpose
Precludes a person who makes a contribution to an entity promoting the passage of a school
district bond or override from bidding on a contract funded as a result of the bond or override.
Background
A school district governing board (governing board) may, and on petition of 15 percent of
the school district electors must, hold an election on the first Tuesday after the first Monday in
November to decide whether school district bonds will be sold to raise monies for specified
purposes in the number and amount provided and payable from the school district's debt service
fund. Monies to redeem bonds and pay interest are raised by assessing secondary property taxes
in the school district (A.R.S. §§ 15-491 and 15-1023).
If a school district's proposed budget exceeds the statutory aggregate budget limit, the
governing board must order a maintenance and operations override, special programs override or
capital improvements override election for the school district's qualified electors to affirm or reject
the proposed budget increase. An override election may be held to exceed the revenue control limit
or district additional assistance and may be funded by assessing secondary property taxes or from
revenues other than a property tax levy. If the election is to require or authorize the school district to
assess secondary property taxes, the election must be held on the Tuesday after the first Monday in
November. The governing board must prepare a proposed budget increase as well as an alternate
budget without a budget increase, which is adopted if the voters reject the proposal (A.R.S.
§ 15-481).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits, from bidding on a contract that is funded as a result of a bond or override approved
by a vote of the qualified electors of a school district, a person who makes a contribution to an
entity promoting the passage of the bond or override.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 6, 2023
LB/MH/slp