AZ HB2706

Requires state board of education to prescribe competency requirements for third grade promotion incorporating academic standards in reading, writing, mathematics, science, and social studies.

Prohibits promotion from third grade if a pupil scores "far below third grade level" on the reading portion of the Arizona Instrument to Measure Standards test or successor test.

Establishes good cause exemptions allowing promotion despite low reading scores, including: children with disabilities, English learners with fewer than two years of instruction, pupils retained twice previously, and pupils demonstrating reading proficiency through alternate approved assessments.

Replaces parental exemption provision with requirement that pupils demonstrate reading proficiency through a student portfolio showing mastery of state standards beyond the retention level.

Requires schools to offer intervention and remedial strategies including assignment to different teacher, summer school, intensive reading instruction, or online instruction for pupils not promoted from third grade.