AZ SB1507

School districts with fewer than 300 students that are placed in receivership by the State Board of Education on or before December 31, 2025 must consolidate with the closest adjoining or adjacent school district as a matter of law

The governing board of the new consolidated district consists of all board members from the non-receivership district plus the two board members from the receivership district who received the highest vote totals in the last general election, serving until January 1 following the next general election

The receiver's powers are limited to advisory functions for consolidated districts, including submitting reports to the new governing board and recommending actions, rather than having direct control over district operations

The receiver is dismissed 30 days after the auditor general certifies financial solvency for one fiscal year, confirms compliance with accounting standards, and the new district demonstrates it can pay debts and no longer needs receiver services

A separate provision allows school districts with combined student counts between 8,000 and 8,400 to petition for consolidation elections through December 31, 2028, with this provision and the main receivership consolidation section both set to repeal after specified dates