ESA program; performance review; termination

SB1264 - 572R - I Ver

REFERENCE TITLE:
ESA program; performance review; termination

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1264

Introduced by

Senators
Miranda: Alston, Bravo, Diaz, Epstein, Gabald�n, Kuby, Ortiz, Sears,
Sundareshan;� Representatives Aguilar, Sandoval

AN
ACT

amending title 15, chapter 19, article 1,
Arizona Revised Statutes, by adding sections 15-2407 and 15-2408;
relating to Arizona empowerment scholarship accounts.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section
1. Title
15, chapter 19, article 1, Arizona Revised Statutes, is amended by adding
sections 15-2407 and 15-2408, to read:

START_STATUTE
15-2407.

Joint legislative audit committee; committees of reference;
program review; reports; auditor general; audit; continuation; definitions

A. The joint legislative audit
committee shall direct the appropriate legislative committees of reference
established pursuant to section 41-2954 to which the department is
assigned to complete a program review of the Arizona empowerment scholarship
accounts program at least seventeen months before the termination date for the
program prescribed by section 15-2408.�

B. The committees of reference shall
undertake the program review in the scope and detail the committees of
reference deem appropriate and shall address whether there is a need for the
program in this state.� If the committees of reference determine there is a
need for the program, the committees of REFERENCE shall assess the degree to
which the original objectives of the program have been achieved, expressed in
terms of the performance, impact or accomplishments of the program and of the
situation the program was intended to address.

C. The committees of reference shall
complete the draft program review report not later than eleven months before
the termination date for the program prescribed by section 15-2408. Before
the draft program review report is submitted, the department shall be given an
OPPORTUNITY to review, within forty calendar days, the draft program review
report and submit written comments or a rebuttal to be included in the preliminary
program review report.

D. The committees of reference shall
submit the preliminary program review report to the governor, to each member of
the joint legislative audit committee, to each member of the committees of
reference to which the department is assigned and to the department on or
before October 1 of the year before the scheduled termination date for the
program prescribed by section 15-2408.

E. The joint legislative audit
committee shall direct the auditor general to conduct a program performance
audit to determine any of the following:

1. Whether the department is managing
the program in an economical and efficient manner.

2. Causes of inefficiencies or
uneconomical practices in the program, including inadequacies in management
information systems, internal and administrative procedures, organizational
structure, use of resources, allocation of personnel, purchasing policies and
equipment.

3. Whether the desired results of the
program are being achieved.

4. Whether the objectives of the
program as established by the legislature are being met.

F. The auditor general shall conduct
the program performance audit in a manner that is consistent with the
performance audit procedures prescribed in title 41, chapter 7, article 10.1
and

shall submit the audit results to the governor, to
each member of the joint legislative audit committee, to each member of the
committees of reference to which the department is assigned and to the
department on or before October 1 of the year before the scheduled termination
date for the program prescribed by section 15-2408.

G. After receipt of the program
performance audit, the committees of reference shall hold at least one public
hearing to receive testimony from the public and from the officials of the
department. The committees of reference may hold additional public
hearings for the purposes provided in section 41-2954, subsection C as
applicable to the program.

H. In determining whether to continue
or terminate the program, each committee of reference shall consider the
information provided in the preliminary program review report and the program
performance audit and the factors provided in section 41-2954, subsection
D as applicable to the program.

i. The program is continued pursuant
to this section if legislation to continue the program is passed by the
legislature and signed by the governor before the termination date for the
program pursuant to section 15-2408, even if the legislation to continue
the program has not become effective on the date of scheduled termination.

j. If the legislature continues the
program, the joint legislative audit committee may direct the auditor general
or the committees of reference to conduct a follow-up review of the
program to determine how the department has performed its statutory functions
or corrected deficiencies relating to the program before program review, or
both.

K. For the purposes of this section:

1. "committee of reference"
hAS THE SAME MEANING PRESCRIBED IN SECTION 41-2952.

2. "Program" means the
Arizona empowerment scholarship accounts program.

3. "Program review" means a
systematic evaluation by the committees of reference under the supervision of
the joint legislative audit committee, with the assistance of the department,
the joint legislative budget committee, the auditor general and support staff,
to determine whether the merits of the program justify its continuation rather
than termination or its continuation at a level less than or greater than the
existing level.
END_STATUTE

START_STATUTE
15-2408.

Arizona empowerment scholarship accounts program; termination
July 1, 2034; delayed repeal

A. The Arizona empowerment
scholarship accounts program terminates on July 1, 2034.

B. This chapter and this section are
repealed from and after December 31, 2034.

END_STATUTE