AZ SB1396

Requires qualified schools accepting Arizona empowerment scholarship account payments to establish and enforce policies prohibiting harassment, intimidation, and bullying on school grounds, buses, at school events, and through electronic communications.

Mandates qualified schools implement specific components including confidential reporting procedures, employee reporting requirements, written notice of student rights and protections, incident documentation for at least six years, formal investigation processes, and disciplinary procedures.

Directs the auditor general to annually audit qualified schools for compliance with the new harassment and bullying policy requirements under section 15-2407.

Allows qualified schools 60 days to cure any violation found by the auditor general; if not cured within that period, the state board of education must require the school to reimburse the department for all Arizona empowerment scholarship account monies received in the previous school year.