Assigned to ED FOR COMMITTEE
*pending assignment
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR S.B. 1289
employee housing; long-term leases; construction
Purpose
Authorizes any school district governing board (governing board), rather than only a rural
governing board, to construct or provide housing facilities for teachers and other school employees
and exempts governing board construction or provision of housing facilities from outlined voter
approval requirements.
Background
The governing board of a rural school district may construct or provide housing facilities for
teachers or other school employees that the governing board determines are necessary to operate the
school. A school district may pledge school district revenues to a municipal property corporation or
special taxing district to construct teacher housing facilities (A.R.S. §§ 15-342 and 15-1023.01).
Subject to outlined exemptions, a governing board must receive voter approval to: 1) construct
school buildings; 2) purchase school sites; 3) enter into lease or lease-purchase agreements for
periods of less than 20 years for the construction of school buildings; and 4) enter into lease or
lease-purchase agreements for school buildings or grounds for a period between 20 and 99 years.
A governing board may, and on petition of 15 percent of the qualified electors must, hold an
election for the outlined purposes on the second Tuesday in March, the third Tuesday in May or
the first Tuesday after the first Monday in November. 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. At least 35 days before the election, the county school
superintendent and governing board must prepare and distribute informational pamphlets to each
household that contains a qualified elector (A.R.S. §§ 15-341; 15-481; and 15-491).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Expands, to apply to any governing board, the authorization for a governing board in a rural
school district to construct or provide housing facilities for teachers or other school employees
that the governing board determines are necessary to operate a school.
2. Exempts a governing board from the requirement to receive voter approval to enter into a lease
or lease-purchase agreement for a period between 20 and 99 years for school buildings or
grounds, if the lease or lease-purchase agreement is executed for constructing or providing
housing facilities for teachers and other school employees.
FACT SHEET
S.B. 1289
Page 2
3. Exempts, the construction of housing facilities for teachers or other school employees from the
requirements for a governing board to receive voter approval to:
a) construct school buildings;
b) purchase school sites; or
c) enter into a lease or lease-purchase agreement for a period of less than 20 years for school
buildings or grounds.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2023
LB/MH/slp