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HB2386 • 2026

school district superintendents; performance-based pay

HB2386 - school district superintendents; performance-based pay

Education Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Matt Gress, Neal Carter, John Gillette, Hildy Angius, Carine Werner
Last action
2026-03-10
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official summary provides more details on enforcement mechanisms such as investigations and civil penalties that were not included in the candidate explanation.

School District Superintendents; Performance-Based Pay

This bill sets rules for school district governing boards to award performance-based pay to superintendents based on specific criteria and requires reporting and penalties if the requirements are not met.

What This Bill Does

  • Requires a school district's governing board to classify up to 20% of a superintendent's total annual salary as performance pay, unless an alternative procedure is adopted by a unanimous vote at a public meeting.
  • Establishes four criteria for determining performance-based pay: academic gain compared to other districts, parental satisfaction survey results, teacher satisfaction survey results, and additional criteria chosen by the governing board.
  • Requires school districts to submit information about superintendent performance-based pay to county school superintendents annually.
  • Directs county school superintendents to determine if the district complied with performance-based pay requirements and report this information to the Arizona Department of Education (ADE).
  • Allows ADE to compile reports on compliance and post them online.

Who It Names or Affects

  • School district governing boards in Arizona.
  • Superintendents of school districts in Arizona.
  • Parents and teachers whose opinions are used for performance-based pay determinations.

Terms To Know

Performance-Based Pay
A system where a portion of an employee's salary is based on meeting specific goals or criteria.
Governing Board
The group that manages and makes decisions for a school district.

Limits and Unknowns

  • Does not specify the exact penalties if performance-based pay requirements are violated.
  • Does not provide details on how alternative procedures will be implemented beyond requiring a unanimous vote at a public meeting.

Bill History

  1. 2026-03-10 Senate

    Senate second read

  2. 2026-03-09 Senate

    Senate Rules: None

  3. 2026-03-09 Senate

    Senate Education: None

  4. 2026-03-09 Senate

    Senate first read

  5. 2026-02-26 Senate

    Transmitted to Senate

  6. 2026-02-25 House

    House third read passed

  7. 2026-02-24 House

    House committee of the whole

  8. 2026-02-17 House

    House minority caucus

  9. 2026-02-17 House

    House majority caucus

  10. 2026-02-16 House

    House consent calendar

  11. 2026-01-21 House

    House second read

  12. 2026-01-20 House

    House Rules: C&P

  13. 2026-01-20 House

    House Education: DP

  14. 2026-01-20 House

    House first read

Official Summary Text

HB2386 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
ED DP 7-4-1-0

HB
2386
: school district superintendents; performance-based pay

Sponsor:
Representative Gress, LD 4

House
Engrossed

Overview

Establishes
requirements a school district governing board (governing board) must follow in
order to award a superintendent performance-based pay. Prescribes civil penalties
if performance-based pay requirements are not met.

History

A governing board must classify up to 20% of a
superintendent's total annual salary as performance pay. Unless the governing
board votes to implement an alternative procedure at a public meeting, the
superintendent's performance pay must be determined based on the following four
statutory criteria, each of which determines 25% of the superintendent's
performance pay: 1) the percentage of academic gain determined by the Arizona
Department of Education (ADE) of the students enrolled in the school district compared
to the academic gain by the highest ranking of the 50 largest school districts
in Arizona; 2) the percentage of parents of enrolled students who assign an A
letter grade to the school on a survey of parental satisfaction; 3) the
percentage of teachers who are employed at the school district and who assign
an A letter grade to the school on a survey of teacher satisfaction; and 4) other
criteria selected by the governing board (
A.R.S. � 15-341
).

Provisions

Superintendent
Performance-Based Pay Requirements

1.

Allows a
school district to award performance-based pay to a superintendent only if:

a.

the superintendent
has met the performance pay goals established by statute or by an alternative
procedure adopted by the governing board;

b.

the school
district's average statewide assessment scores are not lower than the state's
average statewide assessment scores; and

c.

the governing
board approves the superintendent's performance-based pay in a public meeting
with at least a two-thirds vote. (Sec. 2)

2.

Requires, by
August 1 annually, each school district to submit to the county school
superintendent, in a form and manner determined by the county school
superintendent, information relating to all performance-based pay the school
district awarded to a superintendent during the immediately preceding fiscal
year. (Sec. 2)

3.

Directs each
county school superintendent that receives superintendent performance-based pay
information to:

a.

determine
whether the school district complied with the performance-based pay
requirements; and

b.

submit to
ADE, in a form and manner prescribed by ADE, a copy of all information received
from the school district, together with the county school superintendent's
determination. (Sec. 2)

4.

Instructs
ADE, by September 1 annually, to compile the information and determinations
submitted by the county school superintendents into a report, post the report
on its website and submit the report to specified individuals. (Sec. 2)

Civil
Penalties for Violations of Superintendent Performance-Based Pay Requirements

5.

Requires the
Attorney General (AG) or county attorney to investigate allegations by a county
school superintendent that a school district is violating superintendent performance-based
pay requirements. (Sec. 2)

6.

Authorizes
the AG or county attorney to bring an action in a court of competent
jurisdiction to enjoin a violation of performance-based pay requirements. (Sec.
2)

7.

Permits the
court to impose a civil penalty of not more than $1,000 against each governing
board member that approved performance-based pay in violation of the
performance-based pay requirements. (Sec. 2)

8.

Makes each
governing board member personally liable for paying all civil penalties imposed
against that governing board member by the court. (Sec. 2)

9.

Prohibits a
school district from paying a civil penalty that is imposed on behalf of, or
otherwise reimbursing, any governing board member for a civil penalty. (Sec. 2)

10.

Stipulates a
governing board member who is found by a court of competent jurisdiction to be
responsible for a violation of performance-based pay requirements is eligible
for reelection only if they:

a.

pay any
civil penalty imposed by the court; and

b.

seek to
recoup all performance-based pay that was awarded to the superintendent in
violation of the performance-based pay requirements. (Sec. 2)

Miscellaneous

11.

Requires a
governing board to adopt an alternative procedure to determine the
superintendent's performance-based pay
by a unanimous vote
. (Sec. 1)

12.

Makes
technical changes. (Sec. 1)

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2386

2/24/2026������� Page
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Current Bill Text

Read the full stored bill text
HB2386 - 572R - H Ver

House Engrossed

school district
superintendents; performance-based pay

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2386

AN
ACT

amending section 15-341, Arizona
Revised Statutes; amending title 15, chapter 5, article 1, Arizona Revised
Statutes, by adding section 15-503.01; relating to school employees.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 15-341, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-341.

General powers and duties; immunity; delegation

A. Each school district governing board shall:

1. Prescribe and enforce policies and procedures to
govern the schools that are not inconsistent with the laws or rules prescribed
by the state board of education.

2. Exclude from schools all books, publications,
papers or audiovisual materials of a sectarian, partisan or denominational
character.� This paragraph does not prohibit the elective course allowed by
section 15-717.01.

3. Manage and control the school property within its
district, except that a district may enter into a partnership with an entity,
including a charter school, another school district or a military base, to
operate a school or offer educational services in a district building,
including at a vacant or partially used building, or in any building on the
entity's property pursuant to a written agreement between the parties.

4. Acquire school furniture, apparatus, equipment,
library books and supplies for the schools to use.

5. Prescribe the curricula and criteria for the
promotion and graduation of pupils as provided in sections 15-701 and 15-701.01.

6. Furnish, repair and insure, at full insurable
value, the school property of the district.

7. Construct school buildings on approval by a vote
of the district electors.

8. In the name of the district, convey property
belonging to the district and sold by the board.

9. Purchase school sites when authorized by a vote
of the district at an election conducted as nearly as practicable in the same
manner as the election provided in section 15-481 and held on a date
prescribed in section 15-491, subsection E, but such authorization shall
not necessarily specify the site to be purchased and such authorization shall
not be necessary to exchange unimproved property as provided in section 15-342,
paragraph 23.

10. Construct, improve and furnish buildings used
for school purposes when such buildings or premises are leased from the
national park service.

11. Purchase school sites or construct, improve and
furnish school buildings from the proceeds of the sale of school property only
on approval by a vote of the district electors.

12. Hold pupils to strict account for disorderly
conduct on school property.

13. Discipline students for disorderly conduct on
the way to and from school.

14. Except as provided in section 15-1224,
deposit all monies received by the district as gifts, grants and devises with
the county treasurer who shall credit the deposits as designated in the uniform
system of financial records.� If not inconsistent with the terms of the gifts,
grants and devises given, any balance remaining after expenditures for the
intended purpose of the monies have been made shall be used to reduce school
district taxes for the budget year, except that in the case of accommodation schools
the county treasurer shall carry the balance forward for use by the county
school superintendent for accommodation schools for the budget year.

15. Provide that, if a parent or legal guardian
chooses not to accept a decision of the teacher as provided in paragraph 42 of
this subsection, the parent or legal guardian may request in writing that the
governing board review the teacher's decision. This paragraph does
not release school districts from any liability relating to a child's promotion
or retention.

16. Provide for adequate supervision over pupils in
instructional and noninstructional activities by certificated or
noncertificated personnel.

17. Use school monies received from the state and
county school apportionment exclusively to pay salaries of teachers and other
employees and contingent expenses of the district.

18. Annually report to the county school
superintendent on or before October 1 in the manner and form and on the blanks
prescribed by the superintendent of public instruction or county school
superintendent.� The board shall also report directly to the county school
superintendent or the superintendent of public instruction whenever required.

19. Deposit all monies received by school districts
other than student activities monies or monies from auxiliary operations as
provided in sections 15-1125 and 15-1126 with the county treasurer
to the credit of the school district except as provided in paragraph 20 of this
subsection and sections 15-1223 and 15-1224, and the board shall
spend the monies as provided by law for other school funds.

20. Establish bank accounts in which the board
during a month may deposit miscellaneous monies received directly by the
district.� The board shall remit monies deposited in the bank accounts at least
monthly to the county treasurer for deposit as provided in paragraph 19 of this
subsection and in accordance with the uniform system of financial records.

21. Prescribe and enforce policies and procedures
for disciplinary action against a teacher who engages in conduct that is a
violation of the policies of the governing board but that is not cause for
dismissal of the teacher or for revocation of the certificate of the
teacher. Disciplinary action may include suspension without pay for
a period of time not to exceed ten school days.� Disciplinary action shall not
include suspension with pay or suspension without pay for a period of time
longer than ten school days. The procedures shall include notice,
hearing and appeal provisions for violations that are cause for disciplinary
action.� The governing board may designate a person or persons to act on behalf
of the board on these matters.

22. Prescribe and enforce policies and procedures
for disciplinary action against an administrator who engages in conduct that is
a violation of the policies of the governing board regarding duties of
administrators but that is not cause for dismissal of the administrator or for
revocation of the certificate of the administrator.� Disciplinary action may
include suspension without pay for a period of time not to exceed ten school
days.� Disciplinary action shall not include suspension with pay or suspension
without pay for a period of time longer than ten school days. The
procedures shall include notice, hearing and appeal provisions for violations
that are cause for disciplinary action.� The governing board may designate a
person or persons to act on behalf of the board on these
matters. For violations that are cause for dismissal, the provisions
of notice, hearing and appeal in chapter 5, article 3 of this title apply.� The
filing of a timely request for a hearing suspends the imposition of a
suspension without pay or a dismissal pending completion of the hearing.

23. Notwithstanding sections 13-3108 and 13-3120,
prescribe and enforce policies and procedures that prohibit a person from
carrying or possessing a weapon on school grounds unless the person is a peace
officer or has obtained specific authorization from the school administrator.

24. Prescribe and enforce policies and procedures
relating to the health and safety of all pupils participating in district-sponsored
practice sessions or games or other interscholastic athletic activities,
including:

(a) The provision of water.

(b) Guidelines, information and forms, developed in
consultation with a statewide private entity that supervises interscholastic
activities, to inform and educate coaches, pupils and parents of the dangers of
concussions and head injuries and the risks of continued participation in
athletic activity after a concussion. The policies and procedures
shall require that, before a pupil participates in an athletic activity, the
pupil and the pupil's parent sign an information form at least once each school
year that states that the parent is aware of the nature and risk of
concussion.� The policies and procedures shall require that a pupil who is
suspected of sustaining a concussion in a practice session, game or other
interscholastic athletic activity be immediately removed from the athletic
activity and that the pupil's parent or guardian be notified.� A coach from the
pupil's team or an official or a licensed health care provider may remove a
pupil from play.� A team parent may also remove the parent's own child from
play.� A pupil may return to play on the same day if a health care provider
rules out a suspected concussion at the time the pupil is removed from play.�
On a subsequent day, the pupil may return to play if the pupil has been
evaluated by and received written clearance to resume participation in athletic
activity from a health care provider who has been trained in evaluating and
managing concussions and head injuries. A health care provider who
is a volunteer and who provides clearance to participate in athletic activity
on the day of the suspected injury or on a subsequent day is immune from civil
liability with respect to all decisions made and actions taken that are based
on good faith implementation of the requirements of this subdivision, except in
cases of gross negligence or wanton or wilful neglect. A school
district, school district employee, team coach, official or team volunteer or a
parent or guardian of a team member is not subject to civil liability for any
act, omission or policy undertaken in good faith to comply with the
requirements of this subdivision or for a decision made or an action taken by a
health care provider. A group or organization that uses property or
facilities owned or operated by a school district for athletic activities shall
comply with the requirements of this subdivision.� A school district and its
employees and volunteers are not subject to civil liability for any other
person or organization's failure or alleged failure to comply with the requirements
of this subdivision. This subdivision does not apply to teams that
are based in another state and that participate in an athletic activity in this
state.� For the purposes of this subdivision, athletic activity does not
include dance, rhythmic gymnastics, competitions or exhibitions of academic
skills or knowledge or other similar forms of physical noncontact activities,
civic activities or academic activities, whether engaged in for the purposes of
competition or recreation. For the purposes of this subdivision,
"health care provider" means a physician who is licensed pursuant to
title 32, chapter 13, 14 or 17, an athletic trainer who is licensed pursuant to
title 32, chapter 41, a nurse practitioner who is licensed pursuant to title
32, chapter 15, and a physician assistant who is licensed pursuant to title 32,
chapter 25.

(c) Guidelines, information and forms that are
developed in consultation with a statewide private entity that supervises
interscholastic activities to inform and educate coaches, pupils and parents of
the dangers of heat-related illnesses, sudden cardiac death and
prescription opioid use. Before a pupil participates in any district-sponsored
practice session or game or other interscholastic athletic activity, the pupil
and the pupil's parent must be provided with information at least once each
school year on the risks of heat-related illnesses, sudden cardiac death
and prescription opioid addiction.

25. Establish an assessment, data gathering and
reporting system as prescribed in chapter 7, article 3 of this title.

26. Provide special education programs and related
services pursuant to section 15-764, subsection A to all children with
disabilities as defined in section 15-761.

27. Administer competency tests prescribed by the
state board of education for the graduation of pupils from high school.

28. Ensure that insurance coverage is secured for
all construction projects for purposes of general liability, property damage
and workers' compensation and secure performance and payment bonds for all
construction projects.

29. Collect and maintain information about each
current and former teacher's educational and teaching background and experience
in a particular academic content subject area. A school district
shall either post the information on the school district's website or make the
information available for inspection on request of parents and guardians of
pupils enrolled at a school. This paragraph does not require any
school to release personally identifiable information in relation to any
teacher, including the teacher's address, salary, social security number or
telephone number.

30. Report to local law enforcement agencies any
suspected crime against a person or property that is a serious offense as
defined in section 13-706 or that involves a deadly weapon or dangerous
instrument or serious physical injury and any conduct that poses a threat of
death or serious physical injury to employees, students or anyone on the
property of the school.� This paragraph does not limit or preclude the
reporting by a school district or an employee of a school district of suspected
crimes other than those required to be reported by this
paragraph. For the purposes of this paragraph, "dangerous
instrument", "deadly weapon" and "serious physical
injury" have the same meanings prescribed in section 13-105.

31. In conjunction with local law enforcement
agencies and emergency response agencies, develop an emergency response plan
for each school in the school district in accordance with minimum standards
developed jointly by the department of education and the division of emergency
management within the department of emergency and military affairs.� Any
emergency response plan developed pursuant to this paragraph must address how
the school and emergency responders will communicate with and provide
assistance to students with disabilities.

32. Provide written notice to the parents or
guardians of all students enrolled in the school district at least ten days
before a public meeting to discuss closing a school within the school
district. The notice shall include the reasons for the proposed
closure and the time and place of the meeting. The governing board
shall fix a time for a public meeting on the proposed closure not less than ten
days before voting in a public meeting to close the school.� The school district
governing board shall give notice of the time and place of the
meeting. At the time and place designated in the notice, the school
district governing board shall hear reasons for or against closing the
school. The school district governing board is exempt from this
paragraph if the governing board determines that the school shall be closed
because it poses a danger to the health or safety of the pupils or employees of
the school. A governing board may consult with the division of
school facilities within the department of administration for technical
assistance and for information on the impact of closing a
school. The information provided from the division of school
facilities within the department of administration shall not require the
governing board to take or not take any action.

33. Incorporate instruction on Native American
history into appropriate existing curricula.

34. Prescribe and enforce policies and procedures:

(a) Allowing pupils who have been diagnosed with
anaphylaxis by a health care provider licensed pursuant to title 32, chapter
13, 14, 17 or 25 or by a registered nurse practitioner licensed and certified
pursuant to title 32, chapter 15 to carry and self-administer emergency
medications, including epinephrine delivery systems, while at school and at
school-sponsored activities. The pupil's name on the
prescription label on the medication container or on the medication device and
annual written documentation from the pupil's parent or guardian to the school
that authorizes possession and self-administration is sufficient proof
that the pupil is entitled to possess and self-administer the
medication. The policies shall require a pupil who uses an
epinephrine delivery system while at school and at school-sponsored
activities to notify the nurse or the designated school staff person of the use
of the medication as soon as practicable.� A school district and its employees
are immune from civil liability with respect to all decisions made and actions
taken that are based on good faith implementation of the requirements of this
subdivision, except in cases of wanton or wilful neglect.

(b) For the emergency administration of epinephrine
delivery systems by a trained employee of a school district pursuant to section
15-157.

35. Allow the possession and self-administration
of prescription medication for breathing disorders in handheld inhaler devices
by pupils who have been prescribed that medication by a health care
professional licensed pursuant to title 32. The pupil's name on the
prescription label on the medication container or on the handheld inhaler
device and annual written documentation from the pupil's parent or guardian to
the school that authorizes possession and self-administration is
sufficient proof that the pupil is entitled to possess and self-administer
the medication. A school district and its employees are immune from civil
liability with respect to all decisions made and actions taken that are based
on a good faith implementation of the requirements of this paragraph.

36. Prescribe and enforce policies and procedures to
prohibit pupils from harassing, intimidating and bullying other pupils on
school grounds, on school property, on school buses, at school bus stops, at
school-sponsored events and activities and through the use of electronic
technology or electronic communication on school computers, networks, forums
and mailing lists that include the following components:

(a) A procedure for pupils, parents and school
district employees to confidentially report to school officials incidents of
harassment, intimidation or bullying. The school shall make
available written forms designed to provide a full and detailed description of
the incident and any other relevant information about the incident.

(b) A requirement that school district employees
report in writing suspected incidents of harassment, intimidation or bullying
to the appropriate school official and a description of appropriate
disciplinary procedures for employees who fail to report suspected incidents
that are known to the employee.

(c) A requirement that, at the beginning of each
school year, school officials provide all pupils with a written copy of the
rights, protections and support services available to a pupil who is an alleged
victim of an incident reported pursuant to this paragraph.

(d) If an incident is reported pursuant to this
paragraph, a requirement that school officials provide a pupil who is an
alleged victim of the incident with a written copy of the rights, protections
and support services available to that pupil.

(e) A formal process for documenting reported
incidents of harassment, intimidation or bullying and providing for the
confidentiality, maintenance and disposition of this documentation.� School
districts shall maintain documentation of all incidents reported pursuant to
this paragraph for at least six years. The school shall not use that
documentation to impose disciplinary action unless the appropriate school
official has investigated and determined that the reported incidents of harassment,
intimidation or bullying occurred. If a school provides
documentation of reported incidents to persons other than school officials or
law enforcement, all individually identifiable information shall be redacted.

(f) A formal process for the appropriate school
officials to investigate suspected incidents of harassment, intimidation or
bullying, including procedures for notifying the alleged victim and the alleged
victim's parent or guardian when a school official or employee becomes aware of
the suspected incident of harassment, intimidation or bullying.

(g) Disciplinary procedures for pupils who have
admitted or been found to have committed incidents of harassment, intimidation
or bullying.

(h) A procedure that sets forth consequences for
submitting false reports of incidents of harassment, intimidation or bullying.

(i) Procedures designed to protect the health and
safety of pupils who are physically harmed as the result of incidents of
harassment, intimidation and bullying, including, if appropriate, procedures to
contact emergency medical services or law enforcement agencies, or both.

(j) Definitions of harassment, intimidation and
bullying.

37. Prescribe and enforce policies and procedures
regarding changing or adopting attendance boundaries that include the following
components:

(a) A procedure for holding public meetings to
discuss attendance boundary changes or adoptions that allows public comments.

(b) A procedure to notify the parents or guardians
of the students affected, including assurance that, if that school remains open
as part of the boundary change and capacity is available, students assigned to
a new attendance area may stay enrolled in their current school.

(c) A procedure to notify the residents of the
households affected by the attendance boundary changes.

(d) A process for placing public meeting notices and
proposed maps on the school district's website for public review, if the school
district maintains a website.

(e) A formal process for presenting the attendance
boundaries of the affected area in public meetings that allows public comments.

(f) A formal process for notifying the residents and
parents or guardians of the affected area as to the decision of the governing
board on the school district's website, if the school district maintains a
website.

(g) A formal process for updating attendance
boundaries on the school district's website within ninety days after an adopted
boundary change. The school district shall send a direct link to the
school district's attendance boundaries website to the department of real
estate.

38. If the state board of education determines that
the school district has committed an overexpenditure as defined in section 15-107,
provide a copy of the fiscal management report submitted pursuant to section 15-107,
subsection H on its website and make copies available to the public on
request. The school district shall comply with a request within five
business days after receipt.

39.
Subject to the requirements
prescribed in section 15-503.01,
ensure that the contract for the
superintendent is structured in a manner in which up to twenty percent of the
total annual salary included for the superintendent in the contract is
classified as performance pay. This paragraph does not require school districts
to increase total compensation for superintendents.
Unless

The school district governing board
votes to implement

may adopt by an unanimous vote
an alternative procedure at a
public meeting called for this purpose
.� If the governing board
does not adopt an alternative procedure pursuant to this paragraph
, the
performance pay portion of the superintendent's total annual compensation shall
be determined as follows:

(a) Twenty-five percent of the performance pay
shall be determined based on the percentage of academic gain determined by the
department of education of pupils who are enrolled in the school district
compared to the academic gain achieved by the highest ranking of the fifty
largest school districts in this state. For the purposes of this
subdivision, the department of education shall determine academic gain by the
academic growth achieved by each pupil who has been enrolled at the same school
in a school district for at least five consecutive months measured against that
pupil's academic results in the 2008-2009 school year. For the
purposes of this subdivision, of the fifty largest school districts in this
state, the school district with pupils who demonstrate the highest statewide
percentage of overall academic gain measured against academic results for the
2008-2009 school year shall be assigned a score of 100 and the school
district with pupils who demonstrate the lowest statewide percentage of overall
academic gain measured against academic results for the 2008-2009 school
year shall be assigned a score of 0.

(b) Twenty-five percent of the performance pay
shall be determined by the percentage of parents of pupils who are enrolled at
the school district who assign a letter grade of "A" to the school on
a survey of parental satisfaction with the school district. The
parental satisfaction survey shall be administered and scored by an independent
entity that is selected by the governing board and that demonstrates sufficient
expertise and experience to accurately measure the results of the survey. The
parental satisfaction survey shall use standard random sampling procedures and
provide anonymity and confidentiality to each parent who participates in the
survey. The letter grade scale used on the parental satisfaction
survey shall direct parents to assign one of the following letter grades:

(i) A letter grade of "A" if the school
district is excellent.

(ii) A letter grade of "B" if the school
district is above average.

(iii) A letter grade of "C" if the school
district is average.

(iv) A letter grade of "D" if the school
district is below average.

(v) A letter grade of "F" if the school
district is a failure.

(c) Twenty-five percent of the performance pay
shall be determined by the percentage of teachers who are employed at the
school district and who assign a letter grade of "A" to the school on
a survey of teacher satisfaction with the school. The teacher
satisfaction survey shall be administered and scored by an independent entity
that is selected by the governing board and that demonstrates sufficient
expertise and experience to accurately measure the results of the
survey. The teacher satisfaction survey shall use standard random
sampling procedures and provide anonymity and confidentiality to each teacher
who participates in the survey.� The letter grade scale used on the teacher
satisfaction survey shall direct teachers to assign one of the following letter
grades:

(i) A letter grade of "A" if the school
district is excellent.

(ii) A letter grade of "B" if the school
district is above average.

(iii) A letter grade of "C" if the school
district is average.

(iv) A letter grade of "D" if the school
district is below average.

(v) A letter grade of "F" if the school
district is a failure.

(d) Twenty-five percent of the performance pay
shall be determined by other criteria selected by the governing board.

40. Maintain and store permanent public records of
the school district as required by law. Notwithstanding section 39-101,
the standards adopted by the Arizona state library, archives and public records
for the maintenance and storage of school district public records shall allow
school districts to elect to satisfy the requirements of this paragraph by
maintaining and storing these records either on paper or in an electronic
format, or a combination of a paper and electronic format.

41. Adopt in a public meeting and implement policies
for principal evaluations. Before adopting principal evaluation
policies, the school district governing board shall provide opportunities for
public discussion on the proposed policies. The governing board
shall adopt policies that:

(a) Are designed to improve principal performance
and improve student achievement.

(b) Include the use of quantitative data on the
academic progress for all students, which shall account for between twenty
percent and thirty-three percent of the evaluation outcomes.

(c) Include four performance classifications,
designated as highly effective, effective, developing and ineffective.

(d) Describe both of the following:

(i) The methods used to evaluate the performance of
principals, including the data used to measure student performance and job
effectiveness.

(ii) The formula used to determine evaluation
outcomes.

42. Prescribe and enforce policies and procedures
that define the duties of principals and teachers. These policies
and procedures shall authorize teachers to take and maintain daily classroom
attendance, make the decision to promote or retain a pupil in a grade in common
school or to pass or fail a pupil in a course in high school, subject to review
by the governing board in the manner provided in section 15-342,
paragraph 11.

43. Prescribe and enforce policies and procedures
for the emergency administration by an employee of a school district pursuant
to section 36-2267 of naloxone hydrochloride or any other opioid
antagonist approved by the United States food and drug administration.

44. In addition to the notification requirements
prescribed in paragraph 36 of this subsection, prescribe and enforce reasonable
and appropriate policies to notify a pupil's parent or guardian if any person
engages in harassing, threatening or intimidating conduct against that pupil.�
A school district and its officials and employees are immune from civil
liability with respect to all decisions made and actions taken that are based
on good faith implementation of the requirements of this paragraph, except in
cases of gross negligence or wanton or wilful neglect.� A person engages in
threatening or intimidating if the person threatens or intimidates by word or
conduct to cause physical injury to another person or serious damage to the
property of another on school grounds.� A person engages in harassment if, with
intent to harass or with knowledge that the person is harassing another person,
the person anonymously or otherwise contacts, communicates or causes a
communication with another person by verbal, electronic, mechanical, telephonic
or written means in a manner that harasses on school grounds or substantially
disrupts the school environment.

45. Each fiscal year, provide to each school
district employee a total compensation statement that is broken down by
category of benefit or payment and that includes, for that employee, at least
all of the following:

(a) Base salary and any additional pay.

(b) Medical benefits and the value of any employer-paid
portions of insurance plan premiums.

(c) Retirement benefit plans, including social
security.

(d) Legally required benefits.

(e) Any paid leave.

(f) Any other payment made to or on behalf of the
employee.

(g) Any other benefit provided to the employee.

46. Develop and adopt in a public meeting policies
to allow for visits, tours and observations of all classrooms by parents of
enrolled pupils and parents who wish to enroll their children in the school
district unless a visit, tour or observation threatens the health and safety of
pupils and staff.� These policies and procedures must be easily accessible from
the home page on each school's website.

B. Notwithstanding subsection A, paragraphs 7, 9 and
11 of this section, the county school superintendent may construct, improve and
furnish school buildings or purchase or sell school sites in the conduct of an
accommodation school.

C. If any school district acquires real or personal
property, whether by purchase, exchange, condemnation, gift or otherwise, the
governing board shall pay to the county treasurer any taxes on the property
that were unpaid as of the date of acquisition, including penalties and
interest.� The lien for unpaid delinquent taxes, penalties and interest on
property acquired by a school district:

1. Is not abated, extinguished, discharged or merged
in the title to the property.

2. Is enforceable in the same manner as other
delinquent tax liens.

D. The governing board may not locate a school on
property that is less than one-fourth mile from agricultural land
regulated pursuant to section 3-365, except that the owner of the
agricultural land may agree to comply with the buffer zone requirements of
section 3-365. If the owner agrees in writing to comply with
the buffer zone requirements and records the agreement in the office of the
county recorder as a restrictive covenant running with the title to the land,
the school district may locate a school within the affected buffer
zone. The agreement may include any stipulations regarding the
school, including conditions for future expansion of the school and changes in
the operational status of the school that will result in a breach of the
agreement.

E. A school district, its governing board members,
its school council members and its employees are immune from civil liability
for the consequences of adopting and implementing policies and procedures
pursuant to subsection A of this section and section 15-342.� This waiver
does not apply if the school district, its governing board members, its school
council members or its employees are guilty of gross negligence or intentional
misconduct.

F. A governing board may delegate in writing to a
superintendent, principal or head teacher the authority to prescribe procedures
that are consistent with the governing board's policies.

G. Notwithstanding any other provision of this
title, a school district governing board shall not take any action that would
result in a reduction of pupil square footage unless the governing board
notifies the school facilities oversight board established by section 41-5701.02
of the proposed action and receives written approval from the school facilities
oversight board to take the action. A reduction includes an increase
in administrative space that results in a reduction of pupil square footage or
sale of school sites or buildings, or both. A reduction includes a
reconfiguration of grades that results in a reduction of pupil square footage
of any grade level. This subsection does not apply to temporary
reconfiguration of grades to accommodate new school construction if the
temporary reconfiguration does not exceed one year. The sale of
equipment that results in a reduction that falls below the equipment
requirements prescribed in section 41-5711, subsection B is subject to
commensurate withholding of school district district additional assistance
monies pursuant to the direction of the school facilities oversight board.�
Except as provided in section 15-342, paragraph 10, proceeds from the
sale of school sites, buildings or other equipment shall be deposited in the
school plant fund as provided in section 15-1102.

H. Subsections C through G of this section apply to
a county board of supervisors and a county school superintendent when operating
and administering an accommodation school.

I. A school district governing board may delegate
authority in writing to the superintendent of the school district to submit
plans for new school facilities to the school facilities oversight board for
the purpose of certifying that the plans meet the minimum school facility
adequacy guidelines prescribed in section 41-5711.

J. For the purposes of subsection A, paragraph 37 of
this section, attendance boundaries may not be used to require students to
attend certain schools based on the student's place of residence.
END_STATUTE

Sec. 2. Title 15, chapter 5, article 1, Arizona
Revised Statutes, is amended by adding section 15-503.01, to read:

START_STATUTE
15-503.01.

Superintendents; performance-based pay; reporting requirements;
enforcement; civil penalty

A. Notwithstanding any other law, a
school district may award performance-based pay to a superintendent who
is employed pursuant to section 15-503 only if all of the following
requirements are met:

1. The superintendent has met the
performance pay goals established by section 15-341, subsection A,
paragraph 39 or performance pay goals established by an alternative procedure
that is adopted pursuant to section 15-341, subsection A, paragraph 39.

2. The average statewide assessment
scores for the school district are not lower than the average statewide
assessment scores for the state.

3. The governing board approves the
superintendent's performance-based pay in a public meeting with an
affirmative vote of at least two-thirds of the governing board members.

B. On or before August 1 of each
year, each school district shall submit to the county school superintendent of
each county in which the school district is located, in a form and manner
prescribed by the county school superintendent, information relating to all
performance-based pay that the school district awarded to a
superintendent during the immediately preceding fiscal year, including the
amount of performance-based pay that was awarded.� Each county school
superintendent that receives information pursuant to this subsection shall:

1. Determine whether the school
district complied with the requirements prescribed in subsection A of this
section for any performance-based pay that the school district awarded to
a superintendent.

2. Submit to the department, in a
form and manner prescribed by the department of education, a copy of all
information that the county school superintendent received from the school
district pursuant to this subsection, together with the county school
superintendent's determination pursuant to paragraph 1 of this subsection.

C. On or before September 1 of each
year, the department of education shall:

1. Compile the information and
determinations that are submitted to the department pursuant to subsection B of
this section into a report and post the report on the department's website.�

2. Submit the report that is compiled
pursuant to paragraph 1 of this subsection to the speaker of the house of
representatives, the president of the senate, the chairpersons of the education
committees of the senate and the house of representatives, or their successor
committees, and the secretary of state.

D. If the county school
superintendent for a county in which a school district is located notifies the
attorney general or county attorney that the school district is violating the
requirements prescribed in subsection A of this section, the attorney general
or the county attorney shall investigate the allegations and may bring an
action in a court of competent jurisdiction to enjoin a violation of this
section.� For each violation of this section, the court may impose a civil
penalty of not more than $1,000 against each member of the governing board that
approved the performance-based pay in violation of this section.� Each
governing board member is personally responsible for paying all civil penalties
imposed against that member pursuant to this subsection.� the school district
may not pay a civil penalty that is imposed pursuant to this subsection on
behalf of, or otherwise reimburse, any governing board member against whom the
civil penalty is imposed.

E. If a school district governing
board member is found by a court of competent jurisdiction to be responsible
for a violation of this section, the governing board member is eligible for
reelection only if, the governing board member pays any civil penalty imposed
against the governing board member pursuant to subsection D of this section and
seeks to recoup all performance-based pay that was awarded to the
superintendent in violation of this section.
END_STATUTE