AZ HB2386

Requires school district superintendent contracts to structure up to 20% of total annual salary as performance-based pay, with specific criteria including student academic gains, parent satisfaction surveys, and teacher satisfaction surveys each accounting for 25% of performance pay determination

Establishes new eligibility requirements for superintendent performance-based pay: district average statewide assessment scores must meet or exceed the state average, and the governing board must approve the pay with a two-thirds affirmative vote in a public meeting

Mandates annual reporting by school districts to county school superintendents by August 1, detailing all superintendent performance-based pay awarded, followed by Department of Education compilation and publication of a statewide report by September 1

Authorizes the attorney general or county attorney to investigate violations and seek court injunctions, with civil penalties up to $1,000 per violation against individual governing board members who approved non-compliant performance pay

Prohibits school districts from paying or reimbursing civil penalties on behalf of governing board members, and bars members found in violation from reelection unless they pay imposed penalties and seek to recoup improperly awarded performance pay