AZ SB1323

Allows school districts to enter into voluntary partnerships with other parties to finance and cooperatively design school facilities that meet state adequacy standards, with design plans subject to school facilities board approval.

Permits partner parties to construct school facilities before state funding is distributed, with the school district reimbursing the partner from monies received from the school facilities board.

Restricts partnerships to master planned communities (at least 320 acres subject to local development agreements) and prohibits counties, cities, or towns from requiring additional contributions or donations beyond the site donation as conditions of land use approval.

Establishes that when a school district acquires land by donation through a partnership and constructs a facility, the school facilities board shall distribute 20 percent of the fair market value of the donated land for use as an unrestricted capital outlay fund, but the district cannot receive additional donations-of-property funds for that same facility.

Adds requirements for the school facilities board to review and approve design plans and locations of partnership-financed school facilities to ensure compliance with state adequacy standards and square footage requirements before distributing construction funding.