AZ SB1406

Amends Arizona Revised Statutes section 15-239 regarding school district and charter school compliance and audits.

Removes the fiscal year 2011-2012 sunset date for average daily membership audits, making the requirement to include at least 10 percent sample of daily attendance records permanent and ongoing each fiscal year.

Adds new authority for the state board of education or superintendent of public instruction to withhold up to 10 percent of monthly state aid apportionment from school districts or charter schools that fail to take corrective action within 60 days of audit finding notifications.

Requires the Department of Education to notify affected school districts or charter school sponsors of withholdings and restore full state aid payments once compliance with audit findings is achieved.