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Did Not Advance

Arizona Bill Requires Notice of Waived Rights for Empowerment Scholarship Account Applicants

Original title: ESAs; parental notification; waived rights

Last action · February 9, 2026: Senate Second ReadingSponsors: Eva Diaz and 7 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

The bill requires the Arizona Department of Education to post and include in application packets a notice outlining each legal right that a parent and waive by enrolling in the Empowerment Scholarship Accounts program. It also details provisions regarding account administration, audit procedures, third-party eligibility evaluations, and repayment credits.

Background
  • Arizona's Empowerment Scholarship Account (ESA) program allows families to use state public funds for private school tuition, tutoring, and other customized educational expenses. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Parents and qualified students

Applicants and participants must be provided written notice of waived rights upon enrollment, face revised audit and suspension timeframes, and gain explicit repayment crediting rules.

Directly affected

Arizona Department of Education

The department is mandated to include waiver notices in applications, maintain expense databases, conduct audits, and manage application timelines.

Directly affected

County school superintendents

Superintendents are authorized to approve lists of independent third-party evaluators if the state department fails to maintain a statewide contract.

Directly affected

School districts

School districts may be required to pay for independent educational evaluations if the department and county superintendent fail to maintain third-party evaluation contracts.

Key Facts

  • The Arizona Department of Education must post on its website and include in each application packet a notice outlining each legal right that a qualified student and parent waive by enrolling in the Empowerment Scholarship Accounts program.
  • The department must conduct or contract for annual, random, and quarterly audits of accounts and develop risk-based auditing procedures in consultation with the office of the auditor general.
  • An account holder in good standing may be randomly selected for an annual compliance review only once during any five-year period.
  • If an account is suspended, the parent or qualified student has 15 days, not including weekends, to respond and take corrective action before removal.
Show all 13 facts
  • Parents may appeal administrative decisions made by the department to the state board of education and may represent themselves or designate a non-attorney representative who cannot charge fees.
  • The state board of education may refer cases of substantial misuse of monies to the attorney general for collection or criminal investigation.
  • The department must accept applications between July 1 and June 30 of each year and issue award letters to eligible applicants within 30 days after receipt of a completed application and documentation.
  • Qualified students cannot receive ESA monies while simultaneously enrolled in a school district or charter school.
  • On or before September 1 and November 1 of each year, the department must furnish an account funding estimate for the following fiscal year to the joint legislative budget committee and the governor's office of strategic planning and budgeting.
  • If the department fails to maintain a contract with an independent third party to determine eligibility for educational therapies on or after January 1, 2023, county school superintendents may approve an alternate list of independent third parties.
  • If a county superintendent does not provide a list of approved third parties within 90 days of a department contract lapse, the parent may obtain an independent evaluation from a qualified examiner paid for by the resident school district.
  • Repayments made by parents for purchases determined not to be allowable expenses must be credited back to the account balance within 30 days after receipt of payment, except in fraud cases.
  • If the state board of education issues a stay of an account suspension during an appeal, the department may not withhold funding or contract renewal because of the appealed decision during the stay.

Frequently Asked Questions

What new requirement does the bill place on Empowerment Scholarship Account applications?
The bill requires the department of education to post on its website and include in each application packet a notice detailing every legal right that parents and students waive by enrolling in the program.
How long does an account holder have to respond to a notice of account suspension?
A parent or has 15 days, not including weekends, to respond and take corrective action after receiving notice of an account suspension.
Who pays for an independent educational evaluation if the department fails to contract with a third-party evaluator?
If the county school superintendent fails to provide an approved list of independent evaluators within 90 days after a department contract lapse, the expense shall be provided by the school district within which the resides and that serves their grade level.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · on the Senate floor.

Procedural history

2 actions
  1. Feb 9, 2026SenateFloor
    Senate Second Reading
  2. Feb 5, 2026SenateIntroduced
    Senate First Reading

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

State Board of Education, Office of the Auditor General, Brian Fernandez and 12 more
OrganizationState Board of Education“Hears appeals from administrative decisions and may adopt rules to administer th”Map →
OrganizationOffice of the Auditor General“Consults with the department on risk-based auditing procedures.”Map →
PersonBrian Fernandez“Cosponsor of SB 1703.”Map →
PersonSally Gonzales“Cosponsor of SB 1703.”Map →
PersonCatherine Miranda“Cosponsor of SB 1703.”Map →
PersonKiana Sears“Cosponsor of SB 1703.”Map →
PersonLauren Kuby“Cosponsor of SB 1703.”Map →
OrganizationArizona Department of Education“Administers empowerment scholarship accounts, conducts audits, and reviews appli”Map →
OrganizationGovernor's Office of Strategic Planning and Budgeting“Receives annual funding estimates from the department.”Map →
OrganizationAttorney General“Receives referrals for cases of substantial misuse of monies or criminal investi”Map →
PersonAnalise Ortiz“Cosponsor of SB 1703.”Map →
OrganizationTreasurer“Contracts with private financial management firms and holds account funds.”Map →
PersonTheresa Hatathlie“Cosponsor of SB 1703.”Map →
PersonEva Diaz“Introduced Senate Bill 1703.”Map →
OrganizationJoint Legislative Budget Committee“Receives annual funding estimates from the department.”Map →

Sources

Open source document

apps.azleg.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 65)
  • Controversy75
    Intensity of disagreement among stakeholders
  • Entertainment15
    Compellingness for a non-policy-wonk reader
  • Buzz50
    Current news / social attention level

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