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SB1412 • 2026

Arizona online instruction; cost study

SB1412 - Arizona online instruction; cost study

Education Technology
Passed Legislature

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

Sponsor
Denise “Mitzi” Epstein
Last action
2026-01-28
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The bill appropriates $165,000 specifically for this study, which is not mentioned in the candidate explanation but does not contradict it.

Arizona Online Instruction Cost Study

This bill requires the state auditor general to study how much money online schools in Arizona spend and report their findings.

What This Bill Does

  • Requires the auditor general to conduct a cost study of Arizona online instruction programs and schools.
  • Directs the study to include costs for administration, technology, staff, and curriculum from fiscal years 2022 through 2025.
  • Asks the study to recommend better ways for schools to report data on courses, spending, students, and teachers.
  • Compares the money a student receives under the school finance formula with the actual amount spent by their online school.
  • Identifies areas where the state can reduce or remove reporting rules for online instruction.

Who It Names or Affects

  • The office of the auditor general
  • Arizona online instruction programs and schools
  • The state board of education, the state board for charter schools, and the department of education

Terms To Know

Auditor General
A state official who checks how government money is spent.
School Finance Formula
The rule that decides how much funding a student brings to their school from the state.

Limits and Unknowns

  • This law ends on December 31, 2027.
  • The auditor general may choose only some schools and courses for this study instead of all of them.
  • Some cost data in the study might come from reports that online programs write themselves.

Bill History

  1. 2026-01-28 Senate

    Senate second read

  2. 2026-01-27 Senate

    Senate Rules: None

  3. 2026-01-27 Senate

    Senate Appropriations, Transportation and Technology: None

  4. 2026-01-27 Senate

    Senate Education: None

  5. 2026-01-27 Senate

    Senate first read

Official Summary Text

SB1412 - Arizona online instruction; cost study

Current Bill Text

Read the full stored bill text 
SB1412 - 572R - I Ver

REFERENCE TITLE:
Arizona online instruction; cost study

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1412

Introduced by

Senator
Epstein

AN
ACT

providing for a cost study of Arizona
online instruction; appropriating monies.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
Arizona online
instruction; auditor general; cost study; delayed repeal

A. The auditor general
shall conduct and complete a cost study of Arizona online instruction programs
and schools in this state. The auditor general may select a sample
of Arizona online instruction programs, schools and courses for this cost
study. The state board of education, the state board for charter
schools, the department of education and Arizona online instruction programs
and schools shall timely cooperate with and provide to the auditor general
necessary information in the form and format prescribed by the auditor
general. The cost study shall include all of the following:

1. The cost of providing
Arizona online instruction to students pursuant to section 15-808,
Arizona Revised Statutes, including administration, technology, personnel and
curriculum costs for fiscal years 2022-2023, 2023-2024 and
2024-2025. Any costs that are supported by the federal government
shall be considered for the purposes of this cost study. The auditor
general may rely on self-reported costs by Arizona online instruction
programs and schools for the purposes of this paragraph.

2. Recommendations for
reporting options for Arizona online instruction programs and schools related
to courses offered by online delivery method, monies spent on each type of
course delivery method, the number of students served and the number of
teachers by course delivery method.

3. The amount of monies
that the school finance formula generates for a student who receives Arizona
online instruction and the amount of monies spent by the student's school of
attendance.

4. Areas in Arizona online
instruction in which this state can reduce or eliminate administrative and
reporting requirements.

5. Any other information
the auditor general deems necessary.

B. This section is repealed
from and after December 31, 2027.

Sec. 2.
Appropriation;
auditor general; cost study; exemption

A. The sum of $165,000 is appropriated
from the state general fund in fiscal year 2026-2027 to the office of auditor
general for the cost study prescribed by this act.

B. The appropriation made
in subsection A of this section is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations.