SB 1517 Summary

• Charter schools, governing bodies, sponsors, and management organizations must comply with open meeting requirements under title 38, chapter 3, article 3.1 and public records requirements under title 39, chapter 1, with notices, agendas, minutes, and records prominently posted on charter school and state board websites.

• Charter schools are prohibited from contracting with for-profit organizations to establish schools beginning January 1, 2023, and charter holder governing boards must have at least three members with restrictions on immediate family members serving simultaneously.

• Charter schools must comply with procurement policies prescribed in section 15-213, including prohibitions on purchases from governing body members and their immediate family members unless disinterested board members authorize after full disclosure, and purchases exceeding $50,000 must undergo public bidding or demonstrate best value through research or multiple quotes.

• Annual independent audits of charter school financial statements must be conducted with results made publicly available, auditors must be located in Arizona with demonstrated expertise in state law and be on an acceptable auditor list maintained by the state board for charter schools, and audits must follow a standard format with detailed information on assets, liabilities, revenues, expenditures, and related party expenses.

• Charter school sponsors must annually compile and post governance and operational information including governing body member names, financial data, conflict of interest policies, charter management organization details, and spending breakdowns by category on their public websites.