AZ HB2781

Requires online course providers to determine total credit hours a pupil is enrolled in across all schools and providers before enrollment, and limits state funding if enrollment exceeds statutory maximums.

Mandates online course providers notify school districts or charter schools of pupil enrollment within 30 days and implement proctored final examinations monitored by school representatives in the same room as the student.

Establishes that online course providers receive no state funding until a pupil successfully completes a course by passing a proctored final examination.

Requires online course providers to submit annual student accountability reports to the superintendent of public instruction by September 30 detailing course registrations, completions, and grades.

Creates a task force on Arizona online instruction with representatives from school districts, charter schools, business officials, and teachers to review best practices and recommend statutory changes regarding financial reporting, instructional standards, and curriculum standards, with a final report due December 31, 2012.