SB 1763 Arizona Senate · 57th Legislature - Second Regular Session

school districts; funds; financial reports

SB 1763 amends Arizona law (ARS § 15-341) to clarify how school districts must handle surplus funds from gifts, grants, or devises. It requires districts to either use leftover funds to reduce school district taxes for the budget year or transfer them to the Additional Monies Fund (as specified in ARS § 15-1232), unless the gift/grant terms prohibit this. This directly affects all Arizona public school districts managing these specific funds. The bill does not change existing requirements for depositing other school monies or reporting procedures.

Issues: ✓ Budget & Taxes

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

Senate Passage

Mar 2026

House Passage

Apr 2026

Governor

Introduced Feb 5, 2026 Last action Apr 21, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Senate Engrossed Version (03/04/2026) → House Engrossed Version (04/20/2026) · 4 edits · Mar 4, 2026

MODERATE

The House removed the amendment to section 15-1104 that would have allowed school districts to transfer excess unemployment compensation monies to a new additional monies fund or use them to reduce taxes. The House also narrowed the source of the additional monies fund to only gift, grant, and devise balances (removing the unemployment compensation source) and added new governance requirements including cash-controlled fund status and a mandatory majority vote for each expenditure without consent agenda.

Scope change

The bill's scope narrowed: it no longer touches unemployment compensation fund management (section 15-1104), and the additional monies fund is limited to a single source of funds with stricter spending controls.

FISCAL

The entire amendment to section 15-1104 was removed. The Senate version would have allowed school districts to transfer excess unemployment compensation monies either to reduce school district taxes or to the new additional monies fund. The House eliminated this provision entirely.

The additional monies fund (new section 15-1232) now draws only from monies transferred under section 15-341, subsection A, paragraph 14 (balances of gifts, grants, and devises). The Senate version also included monies from section 15-1104 (unemployment compensation excess), which the House removed.

REQUIREMENT

The additional monies fund is now designated as a cash controlled fund under section 15-905, subsection N, and the governing board must authorize each expenditure by majority vote before spending, without the use of a consent agenda. These governance controls were not in the Senate version.

TECHNICAL

The cross-reference to new section 15-1232 was removed from section 15-341, paragraph 19 (the general deposit provision for monies held with the county treasurer). Section numbers were renumbered accordingly after the removal of former Sec. 3.

Introduced Version → Senate Engrossed Version (03/04/2026) · 8 edits · Mar 4, 2026

MODERATE

This bill updates Arizona school finance laws by creating a new 'Additional Monies Fund' to replace the old unused funds account, allowing districts to transfer surplus money there instead of automatically reducing taxes. It also adds significant new requirements for school safety, including concussion protocols, anaphylaxis emergency medication rules, and stricter policies on bullying and weapons. Additionally, the bill introduces performance-based pay components for superintendents based on student academic growth, parent satisfaction, and teacher satisfaction.

Scope change

The bill expands the scope of school district responsibilities to include specific health and safety protocols for athletics and medical emergencies, and it modifies financial reporting requirements to include charter school data.

FISCAL

Created a new 'Additional Monies Fund' (Section 15-1232) where districts can transfer surplus funds instead of automatically reducing taxes, though districts cannot move money from their main operating funds into this new account.

Repealed the previous statute (Section 15-1224) that governed the handling of unused school funds.

REQUIREMENT

Added detailed concussion and head injury protocols for interscholastic athletics, requiring written parental acknowledgment of risks and immediate removal of suspected concussions from play.

Established new policies allowing students to carry and self-administer emergency medications for anaphylaxis (like epinephrine) and breathing disorders (like inhalers) at school.

Mandated comprehensive anti-bullying policies that include confidential reporting procedures, investigation protocols, and documentation retention for at least six years.

Introduced performance-based compensation for superintendents, linking up to 20% of their salary to metrics like student academic gain, parent satisfaction surveys, and teacher satisfaction surveys.

Required school districts to publish annual financial reports online by November 15 and include detailed data on bond funds and capital projects.

ENFORCEMENT

Added new disciplinary procedures for school administrators, including suspension without pay for up to ten days for policy violations that do not warrant dismissal.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 20, 2026

Lower · Passed

PASSED

lower

Apr 14, 2026

Lower · Passed

DPA

lower

Mar 24, 2026

Lower · Passed

DPA

lower

Mar 4, 2026

Upper · Passed

PASSED

upper

Mar 4, 2026

Upper · Passed

DPA

upper

Feb 18, 2026

Upper · Passed

upper

1 primary · 0 co-sponsors