ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

Senate: APPROP DP 6-4-0-0 | 3rd Read 25-5-0-0

House: 3rd Read 44-15-0-0-1

SB 1727: higher education; 2023-2024. (Substituted for HB 2817)

Sponsor: Senator Kavanagh (with permission of Committee on Rules), LD 3

Transmitted to the Governor

Overview

Contains session law provisions relating to higher education needed to implement the FY 2024 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

Arizona Financial Aid Trust Fund (AFAT) (Sec. 1)

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAllows, for FY 2024, each dollar raised by the surcharge on student registration fees assessed pursuant to AFAT to be matched by less than $2 appropriated by the Legislature.

Community College Districts (CCDs) (Sec. 4, 5)

2.   Declares, for FY 2024, science, technology, engineering and mathematics and workforce programs state aid and operating state aid for CCDs is as specified in the General Appropriations Act.

Spouses and Dependents of Law Enforcement Officers Tuition Scholarship Fund (Fund) (Sec. 6)

3.   Establishes the Fund that consists of legislative appropriations and tasks the Arizona Board of Regents (ABOR) with Fund administration.

4.   States Fund monies are continuously appropriated and exempt from lapsing.

5.   Authorizes ABOR to adopt rules to administer the Fund.

6.   Directs ABOR, in FYs 2024-2027 and subject to available monies, to use Fund monies to award tuition scholarships to any person who applies and who:

a)   is either:

i.   the spouse of a law enforcement officer (LEO); or

ii. younger than 27 years old and a dependent of a LEO; and

b)   enrolls in:

i.   an Arizona public university;

ii. a community college;

iii.   a career technical education district (CTED) program; or

iv. a licensed private postsecondary educational institution in Arizona.

7.   Caps, subject to available monies, a tuition scholarship at the:

a)   amount of tuition and mandatory fees, minus other gifts or aid received, if the person is enrolled in an Arizona public university, community college or CTED; or

b)   remainder of the average in-state tuition and fees charged by Arizona public universities, minus other gifts or aid received, if the person is enrolled in a private postsecondary educational institution.

8.   Asserts tuition scholarships are awarded on a first-come, first-served basis and may not be awarded if there are insufficient Fund monies.

9.   Stipulates ABOR must verify a person is eligible before awarding a tuition scholarship and, if the person is determined to no longer be eligible, ABOR may not distribute additional Fund monies until the person submits eligibility documentation.

10.  Limits a tuition scholarship to being used for:

a)   four academic years or eight semesters;

b)   a CTED program certificate or license, a private vocational program, an associate degree or a baccalaureate degree; and

c)   paying tuition and mandatory fees.

11.  Prohibits ABOR from awarding a tuition scholarship to an applicant who is not charged to attend a CTED program.

12.  Details the documentation ABOR may rely on to verify that an individual is a LEO.

13.  Requires ABOR to submit a report, by March 1, 2024 and annually thereafter, to specified entities that contains prescribed tuition scholarship and recipient data.

14.  Defines LEO.

Arizona Area Health Education System (System) (Sec. 7)

15.  Instructs ABOR to distribute monies appropriated for primary care residency programs in FY 2024 to the System to establish a program for qualifying community health centers, rural health clinics and tribal health facilities (qualifying health entities) that:

a)   supports and expands the number of primary care residency positions;

b)   provides support and technical assistance for starting or expanding primary care residency programs in rural areas and health professional shortage areas; and

c)   facilitates information and resource sharing and provides training and technical assistance to support the success of qualifying health entity primary care residency programs.

16.  Allows the System to use up to $500,000 of the monies distributed for the program to support a collaborative of qualifying health entities' primary care residency programs.

17.  Defines primary care and tribal health facility.

State Treasurer (Sec. 2, 3)

18.  Mandates the State Treasurer, in FY 2024 and on notice from ABOR, invest and divest monies in the:

a)   Arizona Veterinary Loan Assistance Fund; and

b)   Spouses of Military Veterans Tuition Scholarship Fund.

19.  Requires monies earned from investment to be credited to the respective fund.

20.  Contains a retroactivity clause of July 1, 2023.

21.  Repeals the requirement that the State Treasurer invest and divest monies from these funds on January 1, 2025.

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25.                    SB 1727

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