auditor general; charter schools

SB1411 - 572R - I Ver

REFERENCE TITLE:
auditor general; charter schools

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1411

Introduced by

Senators
Epstein: Gonzales, Ortiz;� Representative Sandoval

AN
ACT

amending
sections 15-120, 15-914.02, 41-1279.03 and 41-1279.04, Arizona
Revised Statutes; relating to the auditor general.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 15-120, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-120.

Suicide prevention training; approved materials; posting;
immunity; spending classification

A.
Beginning in the 2020-2021
school year,
School districts and charter schools shall provide training
in suicide awareness and prevention for school guidance counselors, teachers,
principals and other school personnel who work with pupils in grades six
through twelve. Each person who is required to obtain training
pursuant to this section shall complete that training at least once every three
years. The training must include:

1. Training in suicide prevention.

2. Training to identify the warning signs of
suicidal behavior in adolescents and teens.

3. Appropriate intervention and referral techniques.

B. The training prescribed in subsection A of this
section:

1. Must use evidence-based training materials.

2. May be provided within the framework of existing
in-service training programs offered by the school district or charter school
or as part of professional development activities.

C. The Arizona health care cost containment system
administration shall make available suicide prevention training that complies
with the requirements of this section and post this training information on the
administration's website.
On or before July 1, 2020,

The administration shall identify or develop and post on the administration's
website a list of approved materials that schools may use to provide the
training prescribed in subsection A of this section. The
administration shall annually update these approved materials.

D. School personnel, entities or any other persons
are not civilly liable for any actions taken in good faith pursuant to this
section except in cases of gross negligence, wilful misconduct or intentional
wrongdoing.

E. The auditor general shall classify any costs
incurred by school districts
or charter schools
in
implementing this section as classroom spending for the purposes of the
annual
report prepared pursuant to section 41-1279.03,
subsection A, paragraph 9.
END_STATUTE

Sec. 2. Section 15-914.02, Arizona Revised
Statutes, is amended to read:

START_STATUTE
15-914.02.

School districts; charter schools; audit

A school district
or charter school
that
is subject to audit pursuant to section 41-1279.03 shall comply with the
reporting, follow-up and hearing participation requirements of that
section.
END_STATUTE

Sec. 3. Section 41-1279.03, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-1279.03.

Powers and duties

A. The auditor
general shall:

1. Prepare an audit
plan for approval by the committee and report to the committee the results of
each audit and investigation and other reviews conducted by the auditor
general.

2. Conduct or cause to be conducted annual financial
and compliance audits of financial transactions and accounts kept by or for all
state agencies subject to the federal single audit requirements.� The audits
shall be conducted in accordance with generally accepted governmental auditing
standards and accordingly shall include tests of the accounting records and
other auditing procedures as may be considered necessary in the circumstances.�
The audits shall include the issuance of suitable reports as required by the
federal single audit requirements so that the legislature, the federal
government and others will be informed as to the adequacy of financial
statements of this state in compliance with generally accepted accounting
principles and to determine whether this state has complied with laws and
regulations that may have a material effect on the financial statements and on
major federal assistance programs.

3. Perform procedural reviews for all state agencies
at times determined by the auditor general. These reviews may
include evaluation of administrative and accounting internal controls and
reports on these reviews.

4. Perform special research requests, special audits
and related assignments as designated by the committee and conduct performance
audits, special audits, special research requests and investigations of any
state agency, whether created by the constitution or otherwise, as may be
requested by the committee.

5. Annually on or before the fourth Monday of
December, prepare a written report to the governor and to the committee that
contains a summary of activities for the previous fiscal year.

6. In the fifth year and in each fifth year
thereafter in which a transportation excise tax is in effect in a county as
provided in section 42-6106 or 42-6107, conduct a performance audit
that:

(a) Reviews past expenditures and future planned
expenditures of the transportation excise revenues and determines the impact of
the expenditures in solving transportation problems within the county and, for
a transportation excise tax in effect in a county as provided in section 42-6107,
determines whether the expenditures of the transportation excise revenues
comply with section 28-6392, subsection B.

(b) Reviews projects completed to date and projects
to be completed during the remaining years in which a transportation excise tax
is in effect.� Within six months after each review period, the auditor general
shall present a report to the speaker of the house of representatives and the
president of the senate detailing findings and making recommendations.

(c) Reviews, determines, reports and makes
recommendations to the speaker of the house of representatives and the
president of the senate whether the distribution of Arizona highway user
revenues complies with title 28, chapter 18, article 2.

7. If requested by the committee, conduct
performance audits of counties and incorporated cities and towns receiving
Arizona highway user revenue fund monies pursuant to title 28, chapter 18,
article 2 to determine whether the monies are being spent as provided in
section 28-6533, subsection B.

8. Perform special audits designated pursuant to law
if the auditor general determines that there are adequate monies appropriated
for the auditor general to complete the audit. If the auditor
general determines the appropriated monies are inadequate, the auditor general
shall notify the
joint legislative audit
committee.�
Based on information provided by the auditor general, for any legislative
measure that requires the auditor general to perform a special audit, the joint
legislative budget committee staff shall notify all the members of the
legislature as soon as practicable of the cost to conduct the special audit.

9. Establish a schoolwide audit team in the office
of the auditor general to conduct performance audits and monitor school
districts
and charter schools
to determine the percentage
of every dollar spent in the classroom by the school district
or
charter school
. Each school district
and
charter school
shall prominently post on its website home page a copy of
its profile pages that displays the percentage of every dollar spent in the
classroom by that school district
or charter school
from
the most recent status report issued by the auditor general pursuant to this
paragraph. The auditor general shall determine, through random
selection, the school districts
and charter schools
to be
audited each year, subject to review by the joint legislative audit
committee. A school district
or charter school
that
is subject to an audit pursuant to this paragraph shall notify the auditor
general in writing whether the school district
or charter school

agrees or disagrees with the findings of the audit and whether the school
district
or charter school
will implement the
recommendations, implement modifications to the recommendations or refuse to
implement the recommendations. The school district
or
charter school
shall submit to the auditor general a written status
report on the implementation of the audit recommendations at the request of the
auditor general, within the two-year period following the issuance of an audit
conducted pursuant to this paragraph. The auditor general shall
review the school district's
or charter school's
progress
toward implementing the recommendations of the audit and provide status reports
of the reviews to the joint legislative audit committee during this two-year
period. The auditor general may review a school district's
or charter school's
progress beyond this two-year period
for recommendations that have not yet been implemented by the school district
or charter school
.� The school district
or
charter school
shall participate in any hearing scheduled during this
review period by the joint legislative audit committee or by any other
legislative committee designated by the joint legislative audit committee.

10. Annually review per diem compensation and
reimbursement of expenses for employees of this state and members of a state
board, commission, council or advisory committee by judgmentally selecting
samples and evaluating the propriety of per diem compensation and expense
reimbursements.

B. The auditor general may:

1. Subject to approval by the committee, adopt rules
necessary to administer the duties of the office.

2. Hire consultants to conduct the studies required
by subsection A, paragraphs 6 and 7 of this section.

C. If approved by the committee, the auditor general
may charge a reasonable fee for the cost of performing audits or providing
accounting services for auditing federal funds, special audits or special
services requested by political subdivisions of this state. Monies
collected pursuant to this subsection shall be deposited in the audit services
revolving fund.

D. The department of transportation, the county
treasurer, the county transportation excise tax recipients
,

and
the board of supervisors of a county that has approved
a county transportation excise tax as provided in section 42-6106 or 42-6107
and the governing bodies of counties, cities and towns receiving Arizona
highway user revenue fund monies shall cooperate with and provide necessary
information to the auditor general or the auditor general's consultant.

E. The department of transportation or the county
transportation excise tax recipients shall reimburse the auditor general as
follows, and the auditor general shall deposit the reimbursed monies in the
audit services revolving fund:

1. For the cost of conducting the studies or hiring
a consultant to conduct the studies required by subsection A, paragraph 6,
subdivisions (a) and (b) of this section, from monies collected pursuant to a
county transportation excise tax levied pursuant to section 42-6106 or 42-6107.

2. For the cost of conducting the studies or hiring
a consultant pursuant to subsection A, paragraph 6, subdivision (c) and
paragraph 7 of this section, from the Arizona highway user revenue fund.
END_STATUTE

Sec. 4. Section 41-1279.04, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-1279.04.

Authority to examine records; violation; classification; attorney
general supervision

A. The auditor
general or the auditor general's authorized representatives, in the performance
of official duties, shall have access to employees and the authority to examine
any and all books, accounts, reports, vouchers, correspondence files and other
records, bank accounts, criminal history record information as defined in
section 41-1701 and in accordance with section 41-1750, monies and
other property of any state agency, board, commission, department, institution,
program, advisory council or committee or political subdivision of this state,
whether created by the constitution or otherwise, or such documents and
property of a contractor relating to a contract with this state pursuant to
section 35-214. Any such agency or political subdivision that
has such records under the officer's or employee's control
,

shall allow access to and examination of the records on the request of the
auditor general or the auditor general's authorized representative.

B. The auditor general or the auditor general's
authorized representatives, in the performance of official duties, shall have
access to financial institutions' or financial enterprises' information,
accounts, books, records, statements, reports, communications, transactions or
any other information relating to any state agency, board, commission,
department, institution, program, advisory council or committee or political
subdivision of this state, whether created by the constitution or otherwise. On
request of the auditor general or the auditor general's
authorized

representatives and in the form and at the time prescribed by the
auditor general, the financial institution or financial enterprise shall
provide all information requested by the auditor general or the auditor
general's authorized
representative

representatives
. An authorized representative of the
financial institution or financial enterprise shall certify all information
provided to the auditor general or auditor general's authorized representatives. Costs
or fees associated with producing the information requested by the auditor
general or auditor general's authorized representatives shall be paid by the
state agency, board, commission, department, institution, program, advisory council
or committee or political subdivision. A financial institution or
financial enterprise is not liable to the state agency, board, commission,
department, institution, program, advisory council or committee or political
subdivision for providing to the auditor general or auditor general's
authorized representatives information requested pursuant to this subsection.

C. For the purpose of
complying with section 41-1279.03, subsection A, paragraphs 4 and 9, the
auditor general or the auditor general's authorized representative, in the
performance of official duties, may attend executive sessions of the governing
body of any state agency
,

or
school
district
or charter school
in this state.

D. For the purpose of auditing the department of
revenue, the auditor general and the auditor general's authorized
representatives have access to state tax returns, except that a report of the
auditor general shall not violate the confidentiality of state tax laws.

E. For the purpose of complying with subsection A of
this section, all officers of any state agency, board, commission, department,
institution, program, advisory council or committee or political subdivision of
this state shall provide reasonable space for auditor general staff and make
records available, in the form and at the time prescribed.

F. Any officer or person who knowingly fails or
refuses to allow access and examination pursuant to this section or who
knowingly obstructs or misleads the auditor general in the execution of the
auditor general's duties is guilty of a class 2 misdemeanor.

G. The attorney general shall supervise the
prosecution of all offenders under this section.
END_STATUTE