HB 2610
Initials CH Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: ED DPA 12-0-0-0 | 3rd Read 37-21-2-0
HB 2610: school districts; board members; superintendent
Sponsor: Representative Gress, LD 4
House Engrossed
Overview
Requires, if a school district is placed in receivership, the school district superintendent to be
terminated for cause and the school district governing board (governing board) members to
immediately resign. Outlines replacement and election procedures for governing board
members who are required to resign. Restricts a governing board from entering into two or
more real estate transactions in a 12-month period if the transactions involve the same
parties and property.
History
The State Board of Education (SBE) has jurisdiction over all petitions requesting that a
school district be placed in receivership or that a fiscal crisis team be appointed due to the
school district's alleged insolvency or gross mismanagement. If, after a public meeting in
which the school district has the opportunity to respond to the allegations, SBE finds that
the school district is insolvent or has engaged in gross mismanagement, SBE may place the
school district in receivership and appoint a receiver.
Once appointed, a receiver must begin an investigation of the school district's financial
affairs. Within 120 days of appointment, the receiver is required to submit a detailed report
that includes a financial improvement plan and budget that details how the school district
will eliminate any continued gross mismanagement and achieve financial solvency. The
financial improvement plan approved by SBE may authorize the receiver to: 1) override any
decisions by the governing board or school district superintendent; 2) attend all governing
board and administrative staff meetings; 3) supervise the day-to-day activities of school
district staff; 4) place on extended leave, suspend or terminate for cause the school district
superintendent or chief financial officer without providing a severance or buyout package; 5)
authorize the transfer of pupils to other school districts; 6) appoint a chief educational officer,
chief fiscal officer and independent public accountant; 7) reorganize the school district's
financial accounts, management and budgetary systems; 8) establish school district fiscal
guidelines and a system of internal controls; and 9) cancel or renegotiate most contracts.
After review and approval by SBE, the receiver must take all necessary steps to implement
the financial improvement plan and budget. Statute details the requirements a school district
must meet to be removed from receivership (A.R.S. § 15-103).
Provisions
School District Superintendent
1. Mandates the financial improvement plan for a school district placed in receivership to
require the receiver to terminate for cause the school district superintendent. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2610
Initials CH Page 2 House Engrossed
2. Prohibits, if SBE places a school district in receivership, the receiver from providing a
severance or buyout package to the school district superintendent. (Sec. 1)
3. Allows a school district superintendent who is terminated to file an appeal with SBE
within 30 days after receiving notice of the termination. (Sec. 1)
4. Requires a school district superintendent who does not prevail in an appeal with SBE to
surrender any certificates issued by the Arizona Department of Education (ADE). (Sec. 1)
Governing Board Members
5. Requires the following to occur if SBE places a school district in receivership:
a) each member of the governing board must immediately resign; and
b) the county school superintendent of the county in which the school district is located
must appoint governing board members to temporarily fill the vacancies, except that:
i. the county school superintendent may not accept names from the governing board
for consideration when filling the vacancies;
ii. the term of an appointment is until a special election is held to elect new governing
board members;
iii. the county school superintendent must, as soon as practicable, call a special
election to replace all governing board members who are temporarily appointed;
and
iv. each vacancy must be filled by the county school superintendent of the county in
which the former governing board member resided at the time of removal if the
school district is located in two or more counties. (Sec. 2)
6. Directs the county school superintendent to assign by lot the new governing board
members who are elected to initial two- and four-year terms. (Sec. 2)
7. Declares an elected governing board member's term, after the initial two- or four-year
term, is four years from January 1 next following their election. (Sec. 2)
8. Excludes a governing board member from the resignation requirement if they:
a) submitted a written complaint relating to the school district's financial practices to
SBE or ADE before ADE recommends that SBE place the school district in
receivership; or
b) were elected or appointed as governing board member not more than six months
before ADE recommends that SBE place the school district in receivership. (Sec. 2)
9. Requires, if SBE placed a school district in receivership in January 2025, each member of
the school district governing board to immediately resign and the vacancies to be filled as
outlined. (Sec. 5)
10. Repeals the resignation of governing board members requirement for a school district
placed in receivership in January 2025 on January 1, 2026. (Sec. 5)
11. Declares a person is ineligible to hold an appointed state, county, city, town or precinct
office established by legislative enactment if the person:
a) is required to resign as a governing board member due to SBE placing the school
district in receivership; or
b) resigned as a governing board member up to one month before the school district was
placed in receivership. (Sec. 4)
HB 2610
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Governing Board Real Estate Transactions
12. Prohibits, retroactive to January 2, 2025, a governing board from entering into two or
more real estate transactions in a 12-month period if the transactions involve the same
parties and property. (Sec. 3, 6)
13. Defines property and transaction. (Sec. 3)
Miscellaneous
14. Contains a severability clause. (Sec. 7)
15. Passed without the emergency clause. (Sec. 8)
16. Makes technical and conforming changes. (Sec. 1, 3, 4)