school districts; property; housing developments

SB1080 - 572R - I Ver

PREFILED��� DEC 29 2025

REFERENCE TITLE:
school districts; property; housing developments

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1080

Introduced by

Senator
Kavanagh

AN
ACT

amending section 15-342, Arizona
Revised Statutes; relating to school district governing boards.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 15-342, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-342.

Discretionary powers

The governing board
of a school district
may:

1. Expel pupils for misconduct.

2. Exclude from grades one through eight children
who are
under six years of age.

3. Make such separation of groups of pupils as
it
the governing board
deems advisable.

4. Maintain such special schools during vacation as
deemed necessary for the benefit of the pupils of the school district.

5. Allow a superintendent or principal or
representatives of the superintendent or principal to travel for a school
purpose, as determined by a majority vote of the board. The board
may allow members and members-elect of the board to travel within or
without the school district for a school purpose and receive
reimbursement. Any expenditure for travel and subsistence pursuant
to this paragraph shall be as provided in title 38, chapter 4, article 2. The
designated post of duty referred to in section 38-621 shall be construed,
for school district governing board members, to be the member's actual place of
residence, as opposed to the school district office or the school district
boundaries. Such expenditures shall be a charge against the budgeted
school district funds. The governing board of a school district shall prescribe
procedures and amounts for reimbursement of lodging and subsistence expenses.
Reimbursement amounts shall not exceed the maximum amounts established pursuant
to section 38-624, subsection C.

6. Construct or provide in rural districts housing
facilities for teachers and other school employees that the board determines
are necessary to operate the school.

7. Sell or lease to the state, a county, a city,
another school district or a tribal government agency any school property
required for a public purpose if the sale or lease of the property will not
affect the normal operations of a school within the school district.

8. Annually budget and spend monies for membership
in an association of school districts within this state.

9. Enter into leases or lease-purchase
agreements for school buildings or grounds, or both, as lessor or as lessee,
for periods of less than twenty years subject to voter approval for
construction of school buildings as prescribed in section 15-341,
subsection A, paragraph 7.

10. Subject to title 41, chapter 56, sell school
sites or enter into leases or lease-purchase agreements for school
buildings and grounds, as lessor or as lessee, for a period of twenty years or
more, but not to exceed ninety-nine years, if authorized by a vote of the
school district electors in an election called by the governing board as
provided in section 15-491, except that authorization by the school
district electors in an election is not required if one of the following
requirements is met:

(a) The market value of the school property is less
than $50,000 or the property is procured through a renewable energy development
agreement, an energy performance contract, which among other items includes a
renewable energy power service agreement, or a simplified energy performance
contract pursuant to section 15-213.01.

(b) The buildings and sites are completely funded
with monies distributed by the
school facilities
division
of school facilities
within the department of administration
or at the direction of the school facilities oversight board, or its
predecessor.

(c) The transaction involves the sale of improved or
unimproved property pursuant to an agreement with the school facilities
oversight board in which the school district agrees to sell the improved or
unimproved property and transfer the proceeds of the sale to the school
facilities oversight board in exchange for monies from the school facilities
oversight board for the acquisition of a more suitable school
site. For a sale of property acquired by a school district before
July 9, 1998, a school district shall transfer to the school facilities
oversight board that portion of the proceeds that equals the cost of the
acquisition of a more suitable school site.� If there are any remaining
proceeds after the transfer of monies to the school facilities oversight board,
a school district shall only use those remaining proceeds for future land
purchases approved by the school facilities oversight board, or for capital
improvements not funded by the school facilities oversight board for any
existing or future facility.

(d) The transaction involves the sale of improved or
unimproved property pursuant to a formally adopted plan and the school district
uses the proceeds of this sale to purchase other property that will be used for
similar purposes as the property that was originally sold if the sale proceeds
of the improved or unimproved property are used within two years after the date
of the original sale to purchase the replacement property. If the
sale proceeds of the improved or unimproved property are not used within two
years after the date of the original sale to purchase replacement property, the
sale proceeds shall be used toward paying any outstanding bonded
indebtedness. If any sale proceeds remain after paying for
outstanding bonded indebtedness, or if the district has no outstanding bonded
indebtedness, sale proceeds shall be used to reduce the district's primary tax
levy. A school district shall not use this subdivision unless all of
the following conditions exist:

(i) The school district is the sole owner of the
improved or unimproved property that the school district intends to sell.

(ii) The school district did not purchase the
improved or unimproved property that the school district intends to sell with
monies that were distributed pursuant to title 41, chapter 56.

(iii) The transaction does not violate section 15-341,
subsection G.

(
e
) The
transaction involves the sale or lease of school buildings or land, or both,
pursuant to a public-private partnership agreement that the school
district governing board enters pursuant to paragraph 40 of this section.

11. Review the decision of a teacher to promote a
pupil to a grade or retain a pupil in a grade in a common school or to pass or
fail a pupil in a course in high school. The pupil has the burden of
proof to overturn the decision of a teacher to promote, retain, pass or fail
the pupil.� In order to sustain the burden of proof, the pupil shall
demonstrate to the governing board that the pupil has mastered the academic
standards adopted by the state board of education pursuant to sections 15-701
and 15-701.01.� If the governing board overturns the decision of a
teacher pursuant to this paragraph, the governing board shall adopt a written
finding that the pupil has mastered the academic
standards. Notwithstanding title 38, chapter 3, article 3.1, the
governing board shall review the decision of a teacher to promote a pupil to a
grade or retain a pupil in a grade in a common school or to pass or fail a
pupil in a course in high school in executive session unless a parent or legal
guardian of the pupil or the pupil, if emancipated, disagrees that the review
should be conducted in executive session and then the review shall be conducted
in an open meeting.� If the review is conducted in executive session, the board
shall notify the teacher of the date, time and place of the review and shall
allow the teacher to be present at the review. If the teacher is not
present at the review, the board shall consult with the teacher before making
its decision. Any request, including the written request as provided
in section 15-341, the written evidence presented at the review and the
written record of the review, including the decision of the governing board to
accept or reject the teacher's decision, shall be retained by the governing
board as part of its permanent records.

12. Provide transportation or site transportation
loading and unloading areas for any child or children if deemed
for
in
the best interest of the district, whether within or
without the district, county or state.

13. Enter into intergovernmental agreements and
contracts with school districts or other governing bodies as provided in
section 11-952.� Intergovernmental agreements and contracts between
school districts or between a school district and other governing bodies as
provided in section 11-952 are exempt from competitive bidding under the
procurement rules adopted by the state board of education pursuant to section
15-213.

14. Include in the curricula
it
the governing board
prescribes for high schools in the school
district career and technical education, vocational education and technology
education programs and career and technical, vocational and technology program
improvement services for the high schools, subject to approval by the state
board of education. The governing board may contract for the
provision of career and technical, vocational and technology education as
provided in section 15-789.

15. Suspend a teacher or administrator from the
teacher's or administrator's duties without pay for a period of time of not
to exceed
more than
ten school days
,
if the board determines that suspension is warranted
pursuant to section 15-341, subsection A, paragraph 21 or 22.

16. Dedicate school property within an incorporated
city or town to that city or town or within a county to that county for use as
a public right-of-way if both of the following apply:

(a) Pursuant to an ordinance adopted by the city,
town or county, there will be conferred on the school district privileges and
benefits that may include benefits related to zoning.

(b) The dedication will not affect the normal
operation of any school within the district.

17. Enter into option agreements for the purchase of
school sites.

18. Donate surplus or outdated learning materials,
educational equipment and furnishings to nonprofit community organizations if
the governing board determines that the anticipated cost of selling the
learning materials, educational equipment or furnishings equals or exceeds the
estimated market value of the materials.

19. Prescribe policies to assess reasonable fees for
students to use district-provided parking facilities. The fees
are to be applied by the district solely against costs incurred in operating or
securing the parking facilities.� Any policy adopted by the governing board
pursuant to this paragraph shall include a fee waiver provision in appropriate
cases of need or economic hardship.

20. Establish alternative education programs that
are consistent with the laws of this state to educate pupils, including pupils
who have been reassigned pursuant to section 15-841, subsection E or F.

21. Require a period of silence to be observed at
the commencement of the first class of the day in the schools. If a
governing board chooses to require a period of silence to be observed, the
teacher in charge of the room in which the first class is held shall announce
that a period of silence not to exceed one minute in duration will be observed
for meditation, and during that time no activities shall take place and silence
shall be maintained.

22. Require students to wear uniforms.

23. Exchange unimproved property or improved
property, including school sites, if the governing board determines that the
improved property is unnecessary for the continued operation of the school
district without requesting authorization by a vote of the school district
electors and if the governing board determines that the exchange is necessary
to protect the health, safety or welfare of pupils or if the governing board
determines that the exchange is based on sound business principles for either:

(a) Unimproved or improved property of equal or
greater value.

(b) Unimproved property that the owner contracts to
improve if the value of the property ultimately received by the school district
is of equal or greater value.

24. For common and high school pupils, assess
reasonable fees for optional extracurricular activities and programs conducted
when the common or high school is not in session, except that fees shall not be
charged for pupils' access to or use of computers or related materials.� For
high school pupils, the governing board may assess reasonable fees for fine
arts and vocational education courses and for optional services, equipment and
materials offered to the pupils beyond those required to successfully complete the
basic requirements of any other course, except that fees shall not be charged
for pupils' access to or use of computers or related materials. Fees
assessed pursuant to this paragraph shall be adopted at a public meeting after
notice has been given to all parents of pupils enrolled at schools in the
district and shall not exceed the actual costs of the activities, programs,
services, equipment or materials. The governing board shall
authorize principals to waive the assessment of all or part of a fee assessed
pursuant to this paragraph if it creates an economic hardship for a
pupil. For the purposes of this paragraph, "extracurricular
activity" means any optional, noncredit, educational or recreational
activity that supplements the education program of the school, whether offered
before, during or after regular school hours.

25. Notwithstanding section 15-341, subsection
A, paragraphs 7 and 9, construct school buildings and purchase or lease school
sites, without a vote of the school district electors, if the buildings and
sites are totally funded from one or more of the following:

(a) Monies in the unrestricted capital outlay fund,
except that the estimated cost shall not exceed $250,000 for a district that
uses section 15-949.

(b) Monies distributed at the direction of the
school facilities oversight board established by section 41-5701.02 or by
the
school facilities
division
of school
facilities
within the department of administration pursuant to title 41,
chapter 56.

(c) Monies specifically donated for the purpose of
constructing school buildings.

This paragraph does not eliminate the
requirement for an election to raise revenues for a capital outlay override
pursuant to section 15-481 or a bond election pursuant to section 15-491.

26. Conduct a background investigation that includes
a fingerprint check conducted pursuant to section 41-1750, subsection G
for certificated personnel and personnel who are not paid employees of the
school district, as a condition of employment. A school district may
release the results of a background check to another school district for
employment purposes.� The school district may charge the costs of fingerprint
checks to its fingerprinted employee, except that the school district may not
charge the costs of fingerprint checks for personnel who are not paid employees
of the school district.

27. Unless otherwise prohibited by law, sell
advertising as follows:

(a) Advertisements shall be age appropriate and not
promote any substance that is illegal for minors such as alcohol, tobacco and
drugs or gambling.� Advertisements shall comply with the state sex education
policy of abstinence.

(b) Advertising approved by the governing board for
the exterior of school buses may appear only on the sides of the bus in the
following areas:

(i) The signs shall be below the seat level rub rail
and not extend above the bottom of the side windows.

(ii) The signs shall be at least three inches from
any required lettering, lamp, wheel well or reflector behind the service door
or stop signal arm.

(iii) The signs shall not extend from the body of
the bus so as to allow a handhold or present a danger to pedestrians.

(iv) The signs shall not interfere with the
operation of any door or window.

(v) The signs shall not be placed on any emergency
doors.

(c) The school district shall establish an
advertisement fund that is composed of revenues from the sale of
advertising. The monies in an advertisement fund are not subject to
reversion.

28. Assess reasonable damage deposits to pupils in
grades seven through twelve for using textbooks, musical instruments, band
uniforms or other equipment required for academic courses. The
governing board shall adopt policies on any damage deposits assessed pursuant
to this paragraph at a public meeting called for this purpose after providing
notice to all parents of pupils in grades seven through twelve in the school
district.� Principals of individual schools within the district may waive the
damage deposit requirement for any textbook or other item if the payment of the
damage deposit would create an economic hardship for the pupil. The
school district shall return the full amount of the damage deposit for any
textbook or other item if the pupil returns the textbook or other item in
reasonably good condition within the time period prescribed by the governing
board. For the purposes of this paragraph, "in reasonably good
condition" means the textbook or other item is in the same or a similar
condition as it was when the pupil received it, plus ordinary wear and tear.

29. Notwithstanding section 15-1105,
expend
spend
surplus monies in the civic
center school fund for maintenance and operations or unrestricted capital
outlay if sufficient monies are available in the fund after meeting the needs
of programs established pursuant to section 15-1105.

30. Notwithstanding section 15-1143, spend
surplus monies in the community school program fund for maintenance and
operations or unrestricted capital outlay if sufficient monies are available in
the fund after meeting the needs of programs established pursuant to section 15-1142.

31. Adopt guidelines to standardize the format of
the school report cards required by section 15-746 for schools within the
district.

32. Adopt policies that require parental notification
when a law enforcement officer interviews a pupil on school
grounds. Policies adopted pursuant to this paragraph shall not
impede a peace officer from performing the peace officer's
duties. If the school district governing board adopts a policy that
requires parental notification:

(a) The policy may provide reasonable exceptions to
the parental notification requirement.

(b) The policy shall set forth whether and under
what circumstances a parent may be present when a law enforcement officer
interviews the pupil, including reasonable exceptions to the circumstances
under which a parent may be present when a law enforcement officer interviews
the pupil, and shall specify a reasonable maximum time after a parent is
notified that an interview of a pupil by a law enforcement officer may be
delayed to allow the parent to be present.

33. Enter into voluntary partnerships with any party
to finance with monies other than school district monies and cooperatively
design school facilities that comply with the adequacy standards prescribed in
section 41-5711 and the square footage per pupil requirements pursuant to
section 41-5741, subsection D, paragraph 3, subdivision
(b). The design plans and location of any such school facility shall
be submitted to the school facilities oversight board for approval pursuant to
section 41-5741, subsection 0. If the school facilities
oversight board approves the design plans and location of any such school
facility, the party in partnership with the school district may cause to be
constructed and the district may begin operating the school facility before
monies are distributed at the direction of the school facilities oversight
board pursuant to section 41-5741. Monies distributed from the
new school facilities fund to a school district in a partnership with another
party to finance and design the school facility shall be paid to the school
district pursuant to section 41-5741. The school district
shall reimburse the party in partnership with the school district from the
monies paid to the school district pursuant to section 41-5741, in
accordance with the voluntary partnership agreement. Before the
school facilities oversight board directs the distribution of any monies
pursuant to this subsection, the school district shall demonstrate to the
school facilities oversight board that the facilities to be funded pursuant to
section 41-5741, subsection O meet the minimum adequacy standards
prescribed in section 41-5711. If the cost to construct the
school facility exceeds the amount that the school district receives from the
new school facilities fund, the partnership agreement between the school
district and the other party shall specify that, except as otherwise provided
by the other party, any such excess costs shall be the responsibility of the
school district. The school district governing board shall adopt a
resolution in a public meeting that an analysis has been conducted on the
prospective effects of the decision to operate a new school with existing
monies from the school district's maintenance and operations budget and how
this decision may affect other schools in the school district. If a
school district acquires land by donation at an appropriate school site
approved by the school facilities oversight board and a school facility is
financed and built on the land pursuant to this paragraph, the school
facilities oversight board shall direct the distribution of an amount equal to
twenty percent of the fair market value of the land that can be used for
academic purposes. The school district shall place the monies in the
unrestricted capital outlay fund and increase the unrestricted capital budget
limit by the amount of the monies placed in the fund. Monies
distributed under this paragraph shall be distributed from the new school
facilities fund pursuant to section 41-5741. If a school
district acquires land by donation at an appropriate school site approved by
the school facilities oversight board and a school facility is financed and
built on the land pursuant to this paragraph, the school district shall not
receive monies for the donation of real property pursuant to section 41-5741,
subsection F. It is unlawful for:

(a) A county, city or town to require as a condition
of any land use approval that a landowner or landowners that entered into a
partnership pursuant to this paragraph provide any contribution, donation or
gift, other than a site donation, to a school district. This
subdivision only applies to the property in the voluntary partnership agreement
pursuant to this paragraph.

(b) A county, city or town to require as a condition
of any land use approval that the landowner or landowners located within the
geographic boundaries of the school subject to the voluntary partnership
pursuant to this paragraph provide any donation or gift to the school district
except as provided in the voluntary partnership agreement pursuant to this
paragraph.

(c) A community facilities district established
pursuant to title 48, chapter 4, article 6 to be used for reimbursement of
financing the construction of a school pursuant to this paragraph.

(d) A school district to enter into an agreement
pursuant to this paragraph with any party other than a master planned community
party.� Any land area consisting of at least three hundred twenty acres that is
the subject of a development agreement with a county, city or town entered into
pursuant to section 9-500.05 or 11-1101 shall be deemed to be a
master planned community. For the purposes of this subdivision,
"master planned community" means a land area consisting of at least
three hundred twenty acres, which may be noncontiguous, that is the subject of
a zoning ordinance approved by the governing body of the county, city or town
in which the land is located that establishes the use of the land area as a
planned area development or district, planned community development or
district, planned unit development or district or other land use category or
district that is recognized in the local ordinance of such county, city or town
and that specifies the use of such land is for a master planned development.

34. Enter into an intergovernmental agreement with a
presiding judge of the juvenile court to implement a law-related education
program as defined in section 15-154. The presiding judge of
the juvenile court may assign juvenile probation officers to participate in a
law-related education program in any school district in the
county. The cost of juvenile probation officers who participate in
the program implemented pursuant to this paragraph shall be funded by the
school district.

35. Offer to sell outdated learning materials,
educational equipment or furnishings at a posted price commensurate with the
value of the items to pupils who are currently enrolled in that school district
before those materials are offered for public sale.

36. If the school district is a small school
district as defined in section 15-901, and if allowed by federal law, opt
out of federal grant opportunities if the governing board determines that the
federal requirements impose unduly burdensome reporting requirements.

37. Prescribe and enforce policies and procedures
for the emergency administration of inhalers by trained employees of the school
district and nurses who are under contract with the school district pursuant to
section 15-158.

38. Develop policies and procedures to allow
principals to budget for or assist with budgeting federal, state and local
monies.

39. Subject to article IX, section 7, Constitution
of Arizona, the laws pertaining to travel and subsistence, gifts, grants,
including federal grants, or devises and policies adopted by the department of
education, provide food and beverages at school district events, including
official school functions and trainings.

40. Enter into a public-private
partnership agreement for the sale or lease of school buildings or land that is
owned by the school district to provide for the private development of
affordable housing for critical public workforce sectors, including
firefighters, peace officers, emergency medical services personnel, hospital
employees, health care employees, childcare workers, direct care workers,
teachers, school employees and school district employees.� An agreement entered
pursuant to this paragraph may include the reconstruction or demolition of
vacant school buildings. Before entering into an agreement pursuant
to this paragraph, the governing board shall do all of the following:

(
a
) Adopt a
resolution in a public meeting that references and attaches an independent
analysis of the fair-market valuation of the property and the economic and
community impact of the proposed development project.

(
b
) Hold at
least one special public meeting to consider community input on the proposed
agreement.� The board shall:

(
i
) Allow
members of the public to engage in the meeting in-person and through at
least one form of electronic communication.

(
ii
) Accept
public comments relating to the proposed agreement for at least forty-five
days after the final special public meeting that the governing board holds
pursuant to this subdivision.

(
c
) Approve the
agreement by at least a two-thirds vote of the governing board.

(
d
) Notwithstanding
section 15-1102, use monies received pursuant to the public-private
partnership agreement only for maintaining or upgrading school district
facilities.

END_STATUTE