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SB 1137

Department of Human Services; requiring certain funds be utilized for certain purpose; appropriating certain federal funds for certain program. Effective date. Emergency.

2025 Regular Session Introduced by Trey Caldwell

Imposes a sunset on Arizona's Empowerment Scholarship Accounts with mandatory program review and audits, requiring legislative action to extend or terminate by a set date.

Becomes law without Governor's signature 05/29/2025
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Bill Summary · SB 1137

SB 1137 — State Government‑Tech (Arizona) — Summary

Status: Introduced Feb 6, 2025; currently Rule 3‑9(a) / Re‑referred to Assignments
Primary sponsors: Senators Miranda, Alston, Gabaldón, Gonzales, Sundareshan; Representative Abeytia

Purpose

SB 1137 adds statutory requirements for a formal legislative program review and a sunset (termination) date for the Arizona Empowerment Scholarship Accounts (ESA) program. The bill is intended to require a systematic evaluation of the ESA program’s need, performance, and management before a scheduled termination date, and to prescribe deadlines and audit/review procedures to inform the Legislature’s decision to continue, modify, or terminate the program.

Key provisions

  • Adds two new sections to Arizona Revised Statutes, Title 15, Chapter 19, Article 1:
    • Section 15‑2407 — Establishes requirements for a legislatively supervised program review and performance audit of the ESA program.
    • Section 15‑2408 — Sets a statutory termination date and delayed repeal for the chapter governing the ESA program.
  • Required reviews and audits:
    • The Joint Legislative Audit Committee (JLAC) must direct the appropriate legislative committees of reference to complete a program review of the ESA program at least 17 months before the program’s statutory termination date.
    • Committees of reference must draft a program review report and finalize a draft no later than 11 months before the termination date.
    • The Department (the assigned state department) is given 40 calendar days to review the draft and submit written comments or a rebuttal, to be included in the preliminary report.
    • The preliminary program review report must be submitted to the Governor, JLAC members, relevant committee members, and the Department on or before October 1 of the year preceding the scheduled termination date.
    • JLAC must direct the Auditor General to perform a program performance audit consistent with state performance‑audit statutes and submit that audit by the same October 1 deadline.
    • Committees of reference must hold at least one public hearing after receipt of the Auditor General’s audit (with authority for additional hearings).
  • Decision criteria and continuation mechanics:
    • Committees must evaluate need, program accomplishments, performance, and whether legislative objectives are being met (and consider factors enumerated in §41‑2954).
    • The program will be continued only if the Legislature passes and the Governor signs legislation to continue the program before the termination date. Continuation legislation need not be effective by the termination date to prevent termination.
    • JLAC may order follow‑up reviews if the program is continued to assess remedial actions or corrective steps.
  • Definitions clarify that "program" means the Arizona ESA program and specify "committee of reference" consistent with §41‑2952.

Timeline / Deadlines set in the bill

  • Program termination date: July 1, 2033 (Section 15‑2408(A)).
  • Chapter repealed: December 31, 2033 (delayed repeal, Section 15‑2408(B)).
  • Review scheduling: program review begins at least 17 months prior to termination; draft report complete by 11 months prior; preliminary report and Auditor General audit due by October 1 of the year before termination; department has 40 days to comment on draft.

Who is affected

  • Arizona Empowerment Scholarship Accounts program participants and administrators.
  • The state department assigned to administer ESAs (department responsibilities for participating in the review).
  • Legislative entities: Joint Legislative Audit Committee, committees of reference, Joint Legislative Budget Committee, Auditor General.
  • Taxpayers and school choice stakeholders (decisions from review may change program availability or scope).

Potential impact

  • Introduces a formal sunset and structured review/audit process designed to increase legislative oversight and program accountability.
  • Could lead to continuation, modification, or termination of the ESA program depending on review findings and subsequent legislative action.
  • Imposes reporting and timing obligations on legislative committees, the Auditor General, and the administering department that aim to produce publicly available analysis and hearings to inform the Legislature’s decision.

(Note: the bill text provided includes only the Arizona provisions described above; other unrelated drafts with the same number from other jurisdictions appeared in the document and are not summarized here.)

Compiled from official sources — confirm details with the bill’s official record.

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