AZ HB2114

Amends sections 15-103 and 15-107 of Arizona Revised Statutes to establish state board of education authority to intervene in school districts for gross mismanagement or insolvency.

Defines "gross mismanagement" as gross incompetence or systemic and egregious mismanagement of school district finances, including four or more material weaknesses or twenty or more unfavorable audit findings over three consecutive years.

Empowers the state board to appoint a receiver who can override governing board decisions, reassign personnel, terminate the superintendent or chief financial officer, reorganize financial systems, and cancel or renegotiate contracts.

Requires school districts in receivership to submit financial improvement plans within 120 days and quarterly progress reports; school district pays receiver's salary and benefits.

Removal from receivership requires auditor general certification of one year of financial solvency, compliance with accounting principles, receiver certification of no gross mismanagement, and state board determination that the district can pay debts as due.