SB1323 - 472R

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

Section 1. Section 15-1824, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1824. Transfer articulation; annual report

A. The community college districts, and universities under the jurisdiction of the Arizona board of regents, the commission for postsecondary education and private postsecondary education institutions in this state shall cooperate in operating a statewide articulation and transfer system, including the process for transfer of lower division general education credits, general elective credits and curriculum requirements for approved majors, to facilitate the transfer of community college students to Arizona public universities and private postsecondary education institutions without a loss of credit toward a baccalaureate degree and to ensure that the postsecondary education needs of students statewide are met without unnecessary duplication of programs.

B. The Arizona board of regents, and the community college districts, the commission for postsecondary education and the private postsecondary education institutions in this state shall submit an annual report of their progress on both articulation and meeting statewide postsecondary education needs to the joint legislative budget committee on or before December 15 and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records. END_STATUTE

Sec. 2. Section 15-1851, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1851. Commission for postsecondary education; purpose; report; members; terms; powers and duties; compensation; quorum; personal liability; definition

A. The commission for postsecondary education is established as the postsecondary review entity for this state for the conduct, supervision and coordination of the review of postsecondary education institutions in order to determine the eligibility of those institutions for student financial aid monies pursuant to the provisions of part H, subpart one of the higher education amendments of 1992 (P.L. 102‑325; 106 Stat. 638; 20 United States Code section 1099a). The commission shall accomplish the purpose of this subsection through the accumulation of information, the performance of studies and the determination of compliance by the postsecondary education institutions with the provisions of part H, subpart one of the higher education amendments of 1992. The review authority of the commission shall be limited to circumstances where the United States department of education has referred an institution to the commission for review or where the United States department of education has approved the review of an institution in accordance with criteria established by the United States department of education. The commission shall keep records of its activities, and the commission shall provide information when requested to the United States secretary of education for financial and compliance audits and for institution evaluation. The scope of authority of the commission acting as a postsecondary review entity to review any educational institution is limited specifically to compliance by the institution with title IV, part H, subpart one of the higher education amendments of 1992. Any review of any institution conducted by the commission shall be performed in the context of the institution's individual mission and purposes. The commission shall not exercise planning, policy, coordinating, supervisory, budgeting or administrative powers over any postsecondary institution in this state.

B. The commission shall also administer the applicable programs identified under section 1203 of the higher education act amendments of 1998 (P.L. 105‑244), including the leveraging educational assistance partnership program, the federal family education loan program and the Paul Douglas teacher scholarships program, and shall supervise the state guarantee agency under the higher education act amendments of 1998.

C. In addition to the responsibilities prescribed in subsections A and B of this section, the commission shall:

1. Provide a forum to public and private postsecondary education institutions for discussion of issues of mutual interest, including the following:

(a) The postsecondary needs of unserved and underserved individuals in this state.

(b) The resources of public and private institutions, organizations and agencies that are located in this state and that are capable of providing postsecondary education opportunities.

(d) Cooperative comprehensive instructional and capital planning.

2. Provide reports pursuant to this subsection on discussions of issues of mutual interest.

3. Coordinate and promote collaborative studies on issues of mutual interest to public and private postsecondary education institutions.

4. Compile and disseminate information to the public regarding postsecondary education opportunities in this state.

5. Prepare an annual report that summarizes the results of the commission's activities prescribed in this section and section 15‑1852. The annual report shall be submitted to the speaker of the house of representatives, the president of the senate, the governor and the Arizona state library, archives and public records by December 28.

6. Develop, implement and administer a five year university centers pilot program. The commission shall establish one university center in a county with a population of more than eight hundred thousand persons and one university center in a county with a population of eight hundred thousand persons or less. The commission shall select the university center sites based on proposals submitted by a community college, a community college district, a university under the jurisdiction of the Arizona board of regents, a private postsecondary education institution in this state or a partnership comprised of any combination of these entities. Proposals submitted pursuant to this paragraph shall include each of the following components:

(a) Evidence that access to baccalaureate degree programs is limited in that geographic area.

(b) A description of the proposed baccalaureate degree programs to be offered in addition to baccalaureate degrees offered by northern Arizona university.

(d) Evidence of community support for the proposed university center and the proposed baccalaureate degree programs.

(e) Evidence of the long-term commitment of the initial proponents of the university center.

(f) A description of the delivery methods to be used to maximize student access to courses and programs.

(g) A description of the facilities, equipment and other resources necessary for the university center. The commission shall give priority to proposals that maximize the use of existing infrastructure.

(h) A description of the proposed evaluation system to assess costs, enrollment and performance of baccalaureate students, including retention rates, graduation rates and transfer rates.

(i) A description of the proposed academic and financial aid services.

(j) Evidence of collaboration with public and private providers of baccalaureate degrees.

7. Develop, in consultation with all sectors of the public and private postsecondary education system, a dual enrollment model and a joint admissions model to be used by postsecondary education institutions to improve transfer and graduation rates at the universities under the jurisdiction of the Arizona board of regents.

8. Annually publish an Arizona college and career guide that describes important education and career resources and that is to be distributed to all public and private high school students in this state.

D. The commission consists of the executive director of the Arizona board of regents, the executive director of the state board for private postsecondary education and the following additional members who shall be appointed by the governor pursuant to section 38‑211:

1. Two members who hold senior executive or managerial positions in a university under the jurisdiction of the Arizona board of regents.

2. Two members who hold senior executive or managerial positions in a community college district, one representing a community college district in a county with a population of five hundred thousand persons or more and one representing a community college district in a county with a population of less than five hundred thousand persons.

3. Two members who hold senior executive or managerial positions in private postsecondary institutions of higher education that are licensed under title 32, chapter 30, that are located in this state, that offer bachelor or higher degrees and that are accredited by a regional accreditation agency approved by the United States department of education.

4. Two members who hold senior executive or managerial positions in private postsecondary institutions of higher education that are licensed under title 32, chapter 30, that are located in this state, that offer vocational education programs and that are accredited by a national accreditation agency approved by the United States department of education.

5. One member who holds a senior executive or managerial position in a private cosmetology school that is licensed under title 32, chapter 5, that is located in this state, that offers cosmetology programs approved by the board of cosmetology and that is accredited by a national accreditation agency approved by the United States department of education.

6. One member who holds a senior executive or managerial position in an institution that is licensed under title 32, chapter 23 or under the provisions of 14 Code of Federal Regulations part 147, that offers vocational education programs at the postsecondary level, that is located in this state and that is not an institution that is qualified under any other category.

7. One member who has held a senior executive or managerial level position in commerce or industry in this state for at least three years before the member's appointment and who is not qualified to serve under any other category.

8. Two members who hold senior executive or managerial positions in the high school education system in this state.

9. One member who is an owner, operator or administrator of a charter school in this state.

E. Members of the commission appointed pursuant to subsection D, paragraphs 1 through 9 of this section shall serve four year terms. Appointed members of the commission shall be residents of this state. Appointed members of the commission at all times during their terms shall continue to be eligible for appointment under the category that they were appointed to represent. Terms of appointed members of the commission begin on the third Monday in January. No appointed member of the commission may serve more than two consecutive terms.

F. The executive director of the Arizona board of regents and the executive director of the state board for private postsecondary education serve as members of the commission during their respective terms of office and are not eligible to vote with respect to the commission's review of any postsecondary institution.

G. Members appointed pursuant to subsection D, paragraphs 1 through 9 of this section are eligible to receive compensation pursuant to section 38‑611 for each day spent in the performance of commission duties and may be reimbursed for expenses properly incurred in connection with the attendance at meetings or hearings of the commission.

H. The governor shall appoint a chairman from among the members of the commission who shall serve a one year term that begins on the third Monday in January.

I. Except as provided in subsection J of this section, a majority of the members of the commission constitutes a quorum for the transaction of commission business. The vote of a majority of the quorum constitutes authority for the commission to act.

J. For all purposes relating to title IV, part H, subpart one of the higher education amendments of 1992, the commission membership shall consist only of the members appointed pursuant to subsection D, paragraphs 1 through 7 of this section, and all commission actions taken pursuant to title IV, part H, subpart one of the higher education act of 1992 require the affirmative vote of at least six members.

K. Members of the commission are immune from personal liability with respect to all actions that are taken in good faith and within the scope of the commission's authority.

L. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15‑1402 and 15‑1403 and that is a political subdivision of this state. END_STATUTE

Sec. 3. Section 15-1854, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1854. Postsecondary education student financial assistance program; postsecondary education student financial assistance fund; definition

A. A private postsecondary education student financial assistance program is established. The commission shall develop, implement and administer the program. A student who obtains an associate degree from a community college district or from a community college under the jurisdiction of an Indian tribe in this state that meets the same accreditation standards as a community college district or has obtained at least sixty credit hours of transferable lower division coursework at a community college in this state and who registers for enrollment as a full‑time student in a baccalaureate program at a private, nationally or regionally accredited four year degree granting college or university chartered in this state or at a public university in this state is eligible to submit an application to the commission for participation in the program. The commission shall establish eligibility criteria for the program including financial need and academic merit, shall develop application forms, procedures and deadlines and shall select qualifying students each year for participation in the program. Participating students shall receive an award in an amount of up to one thousand five hundred dollars annually for not to exceed two years and three thousand dollars to be used to pay all or a portion of the tuition and fees charged at the private, accredited four year college or university or at the public university.

B. A private postsecondary education student financial assistance fund is established consisting of legislative appropriations. The commission shall administer the fund. Monies in the fund are exempt from the provisions of section 35‑190, relating to lapsing of appropriations. The commission shall make awards for payment of tuition at eligible colleges or universities to students who are selected to participate in the private postsecondary education student financial assistance program pursuant to subsection A of this section.

C. The commission shall develop a program evaluation procedure in order to determine the effectiveness of the private postsecondary education student financial assistance program in shifting students who would have otherwise attended a public four year college or university to private four year degree granting colleges or universities.

D. C. A student who fails to receive a baccalaureate degree within a three year period of receipt of the program award shall reimburse the private postsecondary education student financial assistance fund for all awards received pursuant to subsection A of this section.

E. D. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15‑1402 and 15‑1403 and that is a political subdivision of this state. END_STATUTE

Sec. 4. Title 15, chapter 14, article 5, Arizona Revised Statutes, is amended by adding section 15-1855, to read:

START_STATUTE15-1855. University access grant pilot program; university access grant program fund; definition

A. The commission on postsecondary education shall develop, implement and administer a five year university access grant pilot program. The commission shall develop application forms, procedures and deadlines and shall select qualifying students each year for participation in the university access grant pilot program. Participating full-time students shall receive a grant in an amount of up to two thousand five hundred dollars annually to be used to pay all or a portion of the tuition, books and fees charged for upper division courses at the public or private postsecondary institution for a maximum of six consecutive semesters. Participating half‑time students shall receive a grant in an amount of up to one thousand two hundred fifty dollars annually to be used to pay all or a portion of the tuition, books and fees charged for upper division courses at the public or private postsecondary institution for a maximum of twelve consecutive semesters. A student who is awarded a grant pursuant to this section may use a portion of the grant to lease computer equipment and obtain internet access if the student does not currently have access to a computer.

B. Students who meet each of the following criteria are eligible to submit an application for consideration by the commission for a grant under the university access grant pilot program:

1. The student has obtained an associate degree from a community college district or from a community college under the jurisdiction of an Indian tribe in this state that meets the same accreditation standards as a community college district or has obtained at least sixty credit hours of transferable lower division coursework.

2. The student registers for enrollment as a student in a baccalaureate program at an accredited public or private postsecondary institution in this state that awards four year degrees.

3. The student demonstrates to the satisfaction of the commission either of the following:

(a) That the student is unable to participate in baccalaureate course offerings at a public postsecondary institution because the student resides more than ten miles from the nearest campus of a public postsecondary institution that offers baccalaureate degrees.

(b) Work obligations, family obligations or other personal obligations or personal situations prevent the student from participating in baccalaureate course offerings.

4. The student has not obtained a baccalaureate or professional degree.

5. The student is a resident of this state.

6. The student demonstrates financial need for the grant to the satisfaction of the commission.

C. In addition to the eligibility criteria prescribed in subsection B of this section, the commission shall consider other potential sources of financial aid for each applicant to ensure that the grants are awarded to students who demonstrate the greatest financial need.

D. The commission shall give priority to grant applicants who are pursuing a degree in employment areas that are underserved in the applicant's community.

E. The university access grant fund is established consisting of legislative appropriations. The commission shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The commission shall make awards for payment of tuition at eligible colleges or universities to students who are selected to participate in the university access grant pilot program pursuant to subsection A of this section.

F. The commission shall develop a program evaluation procedure in order to determine the effectiveness of the university access grant pilot program and to determine the extent and distribution of students eligible for participation in the university access pilot grant program.

G. A student who fails to receive a baccalaureate degree within a four year period of receipt of the program award shall reimburse the university access grant fund for all grants received pursuant to subsection A of this section.

H. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state. END_STATUTE

Sec. 5. Delayed repeal

Section 15-1855, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2011.

Sec. 6. Section 15-1877, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1877. Scholarships and financial aid provisions

A. Any student loan program, student grant program or other financial assistance program established or administered by this state shall treat the balance in an account of which the student is a designated beneficiary as neither an asset of the parent of the designated beneficiary nor as a scholarship, a grant or an asset of the student for determining a student's or parent's income, assets or financial need.

B. Subsection A applies to any state appropriated financial assistance program administered by a college or university in this state including the financial aid trust fund, established by section 15‑1642, the leveraging educational assistance program established by section 1203 of the higher education act amendments of 1998 (P.L. 105‑244; 112 Stat. 1581; 20 United States Code section 1001) and the private postsecondary education student financial assistance program established by section 15‑1854.

C. Subsections A and B do not apply if any of the following conditions exist:

1. Federal law requires all or a portion of the amount in an account to be taken into consideration in a different manner.

2. Federal benefits could be lost if all or a portion of the amount in an account is not taken into consideration in a different manner.

3. A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be taken into consideration.END_STATUTE

Sec. 7. Appropriation; postsecondary education student financial assistance fund; exemption

A. The sum of $8,000,000 is appropriated from the state general fund in fiscal year 2006-2007 to the commission for postsecondary education for deposit in the postsecondary education student financial assistance fund established by section 15-1854, Arizona Revised Statutes, as amended by this act.

B. Of the monies appropriated pursuant to subsection A of this section, no more than $5,000,000 shall be used for students who attend public postsecondary institutions and no more than $3,000,000 shall be used for students who attend private postsecondary institutions.

C. Of the monies appropriated pursuant to subsection A of this section, no more than $800,000 shall be used by the commission for postsecondary education for administrative costs.

D. 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.

Sec. 8. Appropriation; university access grant program fund; exemption

A. The sum of $2,000,000 is appropriated from the state general fund in fiscal year 2006-2007 to the commission for postsecondary education for deposit in the university access grant program fund established by section 15-1855, Arizona Revised Statutes, as added by this act.

B. Of the monies appropriated pursuant to subsection A of this section, no more than $200,000 shall be used by the commission for postsecondary education for administrative costs.

C. 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.

Sec. 9. Appropriation; university centers pilot program; 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 the costs to implement and maintain the university centers pilot program established by section 15-1851, subsection C, paragraph 6, Arizona Revised Statutes, as amended by this act.

B. Of the monies appropriated pursuant to subsection A of this section, no more than $500,000 shall be used by the commission for postsecondary education for administrative costs.

C. 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.

Sec. 10. Appropriation; dual enrollment and joint admission models; exemption

A. The sum of $50,000 is appropriated from the state general fund in fiscal year 2006-2007 to the commission for postsecondary education for the costs to develop the dual enrollment and joint admission models prescribed by section 15-1851, subsection C, paragraph 7, Arizona Revised Statutes, as amended by this act. The commission for postsecondary education may use the monies appropriated pursuant to this subsection to contract with a third party to develop the models.

B. Of the monies appropriated pursuant to subsection A of this section, no more than $5,000 shall be used by the commission for postsecondary education for administrative costs.

C. 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.

Sec. 11. Appropriation; Arizona college and career guide; exemption

A. The sum of $50,000 is appropriated from the state general fund in fiscal year 2006-2007 to the commission for postsecondary education for the costs to develop and distribute the Arizona college and career guide prescribed by section 15-1851, subsection C, paragraph 8, Arizona Revised Statutes, as amended by this act. The commission for postsecondary education may use the monies appropriated pursuant to this subsection to contract with a third party to develop the models.

B. Of the monies appropriated pursuant to subsection A of this section, no more than $5,000 shall be used by the commission for postsecondary education for administrative costs.

C. 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.