HB2626 - 472R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 15, Arizona Revised Statutes, is amended by adding chapter 19, to read:

CHAPTER 19

ARIZONA WORK-STUDY PROGRAM

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE15-2401. Definitions

In this chapter, unless the context otherwise requires:

1. "Eligible institution" means any public university under the jurisdiction of the Arizona board of regents, any public community college under the jurisdiction of a community college district in this state or a regionally or nationally accredited private postsecondary institution that is eligible for federal student financial aid assistance and that has operated as a nonprofit college or university delivering on-site classroom instruction for a minimum of fifteen consecutive years in this state.

2. "Qualified student" means a student who is enrolled or accepted for enrollment at an eligible institution, who qualifies for in‑state tuition status pursuant to section 15-1802 and who demonstrates a financial need based on the difference between the cost of attendance at the university or community college and the student's expected family contribution to the cost of attendance. END_STATUTE

START_STATUTE15-2402. Development and administration of program; agreements; work-study advisory committee

A. The commission for postsecondary education shall develop and be the state governmental entity that is responsible for the Arizona work-study program. The commission for postsecondary education shall solicit bids from private organizations to conduct the Arizona work-study program and shall give preference to private organizations that demonstrate the ability to raise and deposit matching monies from nonappropriated sources in the Arizona work-study fund established by section 15-2403. Any private organizations selected by the commission for postsecondary education shall make all documents related to the program available to legislative council. The commission for postsecondary education may enter into agreements with employers and eligible institutions for participation in the program. with the exception of off-campus community service placements, the percentage of monies disbursed under the Arizona work-study program for the compensation of a student employed under the Arizona work-study program in accordance with these agreements shall be fifty per cent of the total compensation paid to that student. The commission for postsecondary education shall ensure, to the greatest extent possible, an equal number of public and private employers who participate in the program. These agreements shall include any other provisions that the commission for postsecondary education deems necessary or appropriate to carry out the purposes of this chapter. The commission for postsecondary education shall ensure that no single employer that participates in the program shall:

1. Be awarded more than ten per cent of the total amount of monies appropriated for the work-study program in any fiscal year.

2. Employ more than fifteen per cent of the students who participate in the work-study program in any fiscal year.

B. Each student in the Arizona work-study program:

1. Shall not be compensated for classroom work.

2. Shall be employed in a new position that is created by the employer specifically for the Arizona work-study program. The student's employment shall be in a skilled, intellectually challenging position that is directly related to the student's career goals, shall be limited to not more than twenty hours per week and shall not result in the displacement of existing employees or the impairment of existing contracts for services.

3. Shall receive compensation equal to at least seventy-five per cent but no more than one hundred per cent of the compensation received by a person in an equivalent or comparable position with that employer.

4. Shall be a legal citizen of the United States.

C. The commission for postsecondary education shall establish a work‑study advisory committee to assist the commission for postsecondary education in the development and administration of the work-study program prescribed in this chapter. The work-study advisory committee shall make periodic adjustments to the number of students allowed to participate in the work study program and to the maximum amount of each individual amount awarded to program participants. when selecting members of the advisory committee, the commission for postsecondary education shall consult with institutions of higher education and appropriate associations and organizations. The work-study advisory committee shall include at least the following persons:

1. Employees of public and private postsecondary institutions, including community colleges, technical colleges, universities and vocational schools, at least some of whom shall be employed in the financial aid office of those particular institutions.

2. Students enrolled in public postsecondary institutions.

3. Representatives of community service organizations.

4. Employees of school districts that provide instruction in kindergarten programs and any of grades one through twelve.

5. Representatives of the business industry.

6. Representatives of the labor industry.

D. The commission for postsecondary education may adopt rules to define community service placements and to determine any salary matching requirements for community service employers. END_STATUTE

START_STATUTE15-2403. Arizona work-study fund; disbursal; criteria

A. The Arizona work-study fund is established consisting of monies appropriated for this purpose. The commission for postsecondary education shall administer the fund. The commission for postsecondary education may accept and spend federal monies and private grants, gifts, contributions and devises to assist in carrying out the purposes of this chapter. These monies do not revert to the state general fund at the end of a fiscal year. Monies in the fund are continuously appropriated. The commission for postsecondary education shall not spend more than five per cent of the monies appropriated in any fiscal year for deposit in the fund on administrative costs.

B. The commission for postsecondary education shall establish criteria designed to achieve distribution of monies under this chapter among the employers participating in the program in a manner that will most effectively carry out the purposes of this chapter. The commission for postsecondary education shall ensure that at least seventy‑five per cent of the monies distributed under this chapter is based on need. END_STATUTE

START_STATUTE15-2404. Eligibility criteria; priorities; rules

A. The commission for postsecondary education shall:

1. Develop eligibility criteria for qualified students who apply for participation in the Arizona work-study program, including provisions to ensure that employment is furnished only to students who meet each of the following requirements:

(a) The student qualifies for in-state tuition status pursuant to section 15-1802.

(b) The student is capable, in the opinion of the eligible institution where the student is enrolled, of maintaining good standing in the student's courses of study while employed under the work-study program.

(c) The student has been accepted for enrollment as a student who will carry at least twelve undergraduate credit hours or at least six graduate credit hours at an eligible institution or is a student in good standing and in attendance in a course of study that totals at least twelve undergraduate credit hours or at least six graduate credit hours at an eligible institution. The commission for postsecondary education shall give priority to undergraduate students but may allow graduate students to participate in the work-study program if sufficient monies are available.

(d) The student does not use monies received under the work-study program for religious or partisan purposes or activities.

2. Give priority to the following:

(a) Students who were formerly placed in foster care pursuant to title 8, chapter 5.

(b) Job placement in a field that is related to the student's academic or vocational pursuit.

3. Assure that, for state eligible institutions of higher education:

(a) The work-study program shall only be used to supplement and not supplant classified positions under the Arizona personnel administration system pursuant to title 41, chapter 4 or under similar personnel systems established by the Arizona board of regents or community college districts.

(b) All positions established under the Arizona work-study program that are comparable to a position under the Arizona personnel administration system or under similar personnel systems established by the Arizona board of regents or community college districts shall be identified as such and the student shall receive compensation equal to at least seventy-five per cent but no more than one hundred per cent of the compensation received by a person in a comparable position under the Arizona personnel administration system or under similar personnel systems established by the Arizona board of regents or community college districts.

(d) Work-study employment positions shall only be established at entry level positions for classified positions unless the overall scope and responsibilities of the position require establishment at a level above entry level.

(e) All positions established at eligible institutions under the Arizona work‑study program shall be in a field of skill application of the degree of the qualified student.

4. Encourage job placements in occupations that meet this state's economic development goals. The commission for postsecondary education shall not permit job placements pursuant to this chapter in other states and in other countries unless the commission for postsecondary education determines that a suitable job placement for a particular student in a particular area of employment is not available in this state.

B. The commission for postsecondary education may adopt rules to administer this chapter.

C. The legislative council shall conduct an annual financial review of the program and submit a copy of the financial review to the president of the senate and the speaker of the house of representatives by December 15. END_STATUTE

Sec. 2. Intent

The Legislature intends by this act to establish a program of financial aid to students pursuing a postsecondary education in a state university, a community college or a regionally or nationally accredited private postsecondary institution, which shall be known as the Arizona work-study program. The purpose of the Arizona work-study program is to provide financial assistance to qualified students, including qualified students from middle income families, who attend eligible universities, community colleges or regionally or nationally accredited private postsecondary institutions in this state by stimulating and promoting the employment of those students, thereby enabling those students to pursue courses of study at those institutions. An additional purpose of this program is to provide qualified students, wherever possible, with employment related to those students' academic or vocational pursuits.

Sec. 3. Appropriation; Arizona work-study fund; exemption

A. The sum of $5,000,000 is appropriated from the state general fund in fiscal year 2006-2007 to the commission for postsecondary education for deposit in the Arizona work-study fund established by section 15-2403, Arizona Revised Statutes, as added by this act. The commission for postsecondary education and the private organization selected by the commission for postsecondary education to conduct the Arizona work-study program shall not spend more than a total of five per cent of the monies appropriated pursuant to this subsection on administrative costs.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.