SB 1507 — school districts; receivership; mandatory consolidation

Fifty-seventhSenate LegislatureEngrossed Educationschool Seconddistricts; Regular Session S.B.

1507receivership; PROPOSED SENATE AMENDMENTS TO S.B.

mandatory consolidation State of Arizona Senate Fifty-seventh Legislature Second Regular Session SENATE BILL 1507 (ReferenceAN toACT printedAMENDING bill)TITLE Amendment15, instructionCHAPTER key:1, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 15-103.01;

[GREENAMENDING UNDERLININGSECTION IN15-397, BRACKETS]ARIZONA indicatesREVISED textSTATUTES; added to statute or previously enacted session law.

[GreenREPEALING underliningSECTION in15-103.01, brackets]ARIZONA indicatesREVISED textSTATUTES, addedAS toADDED newBY sessionTHIS lawACT; or text restoring existing law.

[GREENRELATING STRIKEOUTTO INPUBLIC BRACKETS]SCHOOLS. indicates new text removed from statute or previously enacted session law.

[Green(TEXT strikeoutOF inBILL brackets]BEGINS indicatesON textNEXT removedPAGE) from- existingi statute,- previouslyS.B. enacted session law or new session law.

<<Green1507 carets>>Be indicateit aenacted sectionby addedthe toLegislature of the bill.State of Arizona:

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The bill as proposed to be amended is reprinted as follows:

division of assets and liabilities for previously existing districts;

NOTWITHSTANDING ANY OTHER LAW, IF THE STATE BOARD OF EDUCATION PLACES A SCHOOL DISTRICT IN RECEIVERSHIP PURSUANT TO SECTION 15-103 ON OR BEFORE DECEMBER 31, 2025 AND THE SCHOOL DISTRICT IS IN RECEIVERSHIP ON THE EFFECTIVE DATE OF THIS SECTION AND IF THE SCHOOL DISTRICT HAS A STUDENT COUNT OF LESS THAN THREE HUNDRED, THE FOLLOWING SCHOOL DISTRICTS ARE CONSOLIDATED INTO ONE SCHOOL DISTRICT AS A MATTER OF LAW:

IF THE SCHOOL DISTRICT IN RECEIVERSHIP IS A HIGH SCHOOL DISTRICT OR A UNION HIGH SCHOOL DISTRICT, THE SCHOOL DISTRICT IN RECEIVERSHIP,RECEIVERSHIP THE CLOSEST SCHOOL DISTRICT AND ANY COMMON SCHOOL DISTRICT THAT IS LOCATED WITHIN THE BOUNDARIESCLOSEST OF THE SCHOOL DISTRICTDISTRICT. IN RECEIVERSHIP.

Senate2. Amendments to S.B.

1507 2.

THE TERMS OF THE GOVERNING BOARD MEMBERS OF THE PREVIOUSLY EXISTING SCHOOL DISTRICTSDISTRICT THAT IS NOT IN RECEIVERSHIP DO NOT EXPIRE ON THE EFFECTIVE DATE OF THE CONSOLIDATION AND CONTINUE UNTIL JANUARY 1 FOLLOWING THE NEXT GENERAL ELECTION, DURINGAND WHICH TIME THE MEMBERSTERMS OF ONLY THE TWO GOVERNING BOARDSBOARD MEMBERS OF THE PREVIOUSLY EXISTING SCHOOL DISTRICTSDISTRICT SHALLIN SERVERECEIVERSHIP ASWHO RECEIVED THE GOVERNINGHIGHEST BOARDNUMBER OF VOTES CASTED DURING THE NEWLAST SCHOOLGENERAL DISTRICT.ELECTION DO NOT EXPIRE AND CONTINUE UNTIL JANUARY 1 FOLLOWING THE NEXT GENERAL ELECTION, DURING WHICH TIME THE MEMBERS OF THE GOVERNING BOARDS OF - 1 - S.B.

1507 THE PREVIOUSLY EXISTING SCHOOL DISTRICTS SHALL SERVE AS THE GOVERNING BOARD OF THE NEW SCHOOL DISTRICT.

THE GOVERNING BOARD OF EACH PREVIOUSLY EXISTING SCHOOL DISTRICT SHALL PREPARE A LIST OF ASSETS FOR THE PREVIOUSLY EXISTING SCHOOL DISTRICT BEFORE THE END OF THE FISCAL YEAR IN WHICH THE CONSOLIDATION OCCURS.

THE GOVERNING BOARD OF EACH PREVIOUSLY EXISTING SCHOOL DISTRICT SHALL SET ASIDE SUFFICIENT ASSETS OR PROVIDE OTHER MEANS TO SATISFY THE LIABILITIES OF THE PREVIOUSLY EXISTING SCHOOL DISTRICT, AND THE NEW GOVERNING BOARD SHALL APPROVE THE FINAL DIVISION OF ALL ASSETS NOT LATER THAN THIRTY DAYS AFTER THE LISTS OF ASSETS ARE PREPARED PURSUANT TO THIS SUBSECTION.

THE AREA WITHIN THE GEOGRAPHIC BOUNDARIES OF EACH PREVIOUSLY EXISTING SCHOOL DISTRICT REMAINS SUBJECT TO PROPERTY TAXES LEVIED FOR BONDS ISSUED BY THE SCHOOL DISTRICT AND ANY OTHER OUTSTANDING DEBT THAT WAS LAWFULLY INCURRED BEFORE THE CONSOLIDATION AND THAT IS NOT OTHERWISE SATISFIED PURSUANT TO THIS SUBSECTION.

E.

E.F.

5.- 2 - S.B.

1507 5.

-2-Sec. Senate Amendments to S.B.

1507 <<Sec.

Effect of unification or consolidation of participating school districts Notwithstanding sections 15-395 and 15-395.01, if a school district [that]that was participating in a career technical education district at the time that the school district was unified or consolidated pursuant to chapter 4, article 3 of this title [OROR CONSOLIDATED PURSUANT TO SECTION 15-103.01],15-103.01, the successor school district that results from that unification or consolidation shall automatically continue to participate in that career technical education district in the same manner as the former school district that was unified or consolidated.>>consolidated. Enroll and engross to conform Amend title to conform TIMOTHY "TIM" DUNN 1507DUNN1.docx 02/16/2026 06:51 PM C:

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3.

Consolidation of districts;

petitions;

election;

delayed repeal A.

Notwithstanding section 15-459, subsection A, Arizona Revised Statutes, on receipt of petitions bearing the signatures of two percent or more of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of two or more school districts in the same county or in adjacent counties to consolidate the school districts or parts of the districts, the county school superintendent of each county affected, within ten days, shall call an election to determine the question on consolidation if both:

1.

The combined student count of the school districts or parts of the districts is at least eight thousand but less than eight thousand four hundred.

2.

The county school superintendent of each county affected received the petition on or before December 31, 2028.

B.

Except as provided in subsection A of this section, an election called pursuant to this section, and a consolidation allowed by this section, are subject to section 15-459, Arizona Revised Statutes.