AZ HB2032

Repeals existing article 9 of Title 15, Chapter 1, Arizona Revised Statutes and creates a new "Schools of Innovation" article establishing a framework for public schools to implement innovative instructional and administrative practices.

Requires schools seeking innovation designation to submit an innovation plan by April 15 each year to the superintendent of public instruction, with the state board of education approving or rejecting plans within 60 days; approved plans are valid for an initial five-year period with potential five-year extensions.

Allows schools to request exemptions from instructional hour requirements and other rules or policies that hinder innovation implementation, but prohibits exemptions from statewide assessment participation, state or federal accountability requirements, or reductions in total instructional hours.

Mandates the Department of Education develop an evaluation plan measuring school performance on student engagement, state assessments, high school and postsecondary success, and submit annual reports to the governor, legislature, and state board by September 1 documenting findings, outcomes, and recommended statutory changes.

Protects students transferring from schools of innovation by prohibiting other schools from penalizing them through grade changes or requiring repetition of mastered coursework, and requires Arizona Board of Regents and community college districts to establish equitable admission and financial aid policies for nontraditional diploma holders.