AZ HB2167

School districts that fail to correct financial record deficiencies within 90 days of auditor general notice must have 10% of state funding withheld until compliance is achieved.

School districts failing to correct deficiencies within 18 months must receive mandatory training and interventions from the department of education (which the district must pay for) and face civil penalties of 1% of the district's general budget limit per month beginning in month 18.

Civil penalties collected from noncompliant school districts are deposited into a newly established school financial transparency portal fund.

School districts that fail to correct financial record deficiencies cannot order override elections for capital improvements or bond elections until they achieve compliance for at least 12 months.

Transfer of K-12 school financial transparency portal operations and any remaining unspent appropriations from the department of administration to the department of education, effective upon passage.