HB2954 - 571R

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

Section 1. Section 15-1626, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1626. General administrative powers and duties of board; definition

A. The Arizona board of regents shall:

1. Have and exercise the powers necessary for the effective governance and administration of the institutions under its the board's control. To that end, the board may adopt, and authorize each university to adopt, such regulations, policies, rules or measures as are deemed necessary and may delegate in writing to its the board's committees, to its university presidents, or their or the presidents' designees, or to other entities under its the board's control any part of its the board's authority for the administration and governance of such those institutions, including those powers enumerated in section 15-1625, subsection B, paragraphs 2 and 4, paragraphs 3, 4, 8, 9, 11 and 12 of this subsection and subsection B of this section. Any delegation of authority may be rescinded by the board at any time in whole or in part.

2. Appoint and employ and determine the compensation of presidents with such the power and authority and for such the purposes in connection with the operation of the institutions as the board deems necessary.

3. Appoint and employ and determine the compensation of vice-presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees with such the power and authority and for such the purposes in connection with the operation of the institutions as the board deems necessary, or delegate its the board's authority pursuant to paragraph 1 of this subsection.

4. Remove any officer or employee when the interests of education in this state so require in accordance with its the board's personnel rules and policies.

5. Fix tuitions and fees to be charged and differentiate the tuitions and fees between institutions and between residents, nonresidents, undergraduate students, graduate students, students from foreign countries and students who have earned credit hours in excess of the credit hour threshold. For the purposes of this paragraph, the undergraduate credit hour threshold is one hundred forty-five hours for students who attend a university under the jurisdiction of the board. The undergraduate credit hour threshold shall be based on the actual full-time equivalent student enrollment counted on the forty-fifth day of every fall and spring semester, divided by two, and any budget adjustment based on student enrollment shall occur in the fiscal year following the actual full-time equivalent student enrollment count. The undergraduate credit hour threshold shall not apply to degree programs that require credit hours above the credit hour threshold, credits earned in the pursuit of up to two baccalaureate degrees, credits earned in the pursuit of up to two state regulated licensures or certificates, credits earned in the pursuit of teaching certification, credits transferred from a private institution of higher education, credits transferred from an institution of higher education in another state, credits earned at another institution of higher education but that are not accepted as transfer credits at the university where the student is currently enrolled and credits earned by students who enroll at a university under the jurisdiction of the board more than twenty-four months after the end of that student's previous enrollment at a public institution of higher education in this state. On or before October 15 of each year, the board shall report to the joint legislative budget committee the number of in-state students and out-of-state students who were enrolled at universities under the jurisdiction of the board during the previous fiscal year and who met or exceeded the undergraduate credit hour threshold prescribed in this paragraph. The amount of tuition and fees included in the operating budget for the university adopted by the board as prescribed in paragraph 13 of this subsection shall be is subject to legislative appropriation and shall be deposited in a separate tuition and fees subaccount for each university. All other tuition and fee revenue shall be retained by each university for expenditure as approved by the board in a separate local tuition and fees subaccount for each university. This subaccount shall consist of only tuition and fees. The universities shall not use any tuition or fee revenue to fund or support an alumni association.

6. Adopt rules to govern its the board's tuition and academic fee setting process that provide for the following:

(a) At least one public hearing at each university as an opportunity for students and members of the public to comment on any proposed increase in tuition or fees.

(b) Publication of the notice of public hearing at least ten days before the hearing in a newspaper of general circulation in Maricopa county, Coconino county and Pima county. The notice shall include the date, time and location of the public hearing.

(c) Public disclosure by each university of any proposed increases in tuition or fees at least ten days before the public hearing.

(d) A roll call vote of any final board action on changes in tuition, including tuition rate changes for online programs, or academic fees.

(e) Public disclosure by the board and each university of any final board action on changes in tuition or academic fees.

7. Pursuant to section 35-115, submit a budget request for each institution under its the board's jurisdiction that includes the estimated tuition and fee revenue available to support the programs of the institution as described in the budget request. The estimated available tuition and fee revenue shall be based on the tuition and registration fee rates in effect at the time the budget request is submitted with adjustments for projected changes in enrollment as provided by the board.

8. Establish curricula and designate courses at the several institutions that in its the board's judgment will best serve the interests of this state.

9. Award such degrees and diplomas on the completion of such the courses and curriculum requirements as it that the board deems appropriate.

10. Prescribe qualifications for admission of all students to the universities. The board shall establish policies for guaranteed admission that ensure fair and equitable access to students in this state from public, private and charter schools and homeschools. For the purpose of determining the qualifications of honorably discharged veterans, veterans are those persons who served in the armed forces for a minimum of at least two years and who were previously enrolled at a university or community college in this state. No prior failing grades received by the a veteran at the university or community college in this state may be considered.

11. Adopt any energy conservation standards adopted by the department of administration for the construction of new buildings.

12. Employ for such the time and purposes as that the board requires attorneys whose compensation shall be fixed and paid by the board. Litigation to which the board is a party and for which self-insurance is not provided may be compromised or settled at the direction of the board.

13. Adopt annually an operating budget for each university equal to the sum of appropriated general fund monies and the amount of tuition and fees approved by the board and allocated to each university operating budget.

14. In consultation with the state board of education and other education groups, develop and implement a program to award honors endorsements to be affixed to the high school diplomas of qualifying high school pupils and to be included in the transcripts of pupils who are awarded endorsements. The Arizona board of regents shall develop application procedures and testing criteria and adopt testing instruments and procedures to administer the program. In order to receive an honors endorsement, a pupil must demonstrate an extraordinary level of knowledge, skill and competency as measured by the testing instruments adopted by the Arizona board of regents in mathematics, English, science and social studies. Additional subjects may be added at the determination of the Arizona board of regents. The program is voluntary for pupils.

15. Require the publisher of each literary and nonliterary textbook used in the universities of this state to furnish to the Arizona board of regents computer software in a standardized format when software becomes available for nonliterary textbooks from which braille versions of the textbooks may be produced.

16. Require universities that provide a degree in education to require courses that are necessary to obtain a provisional structured English immersion endorsement as prescribed by the state board of education.

17. Acquire for each classroom United States flags for each classroom that are manufactured in the United States and that are at least two feet by three feet, and hardware to appropriately display the United States flags, acquire and a legible copy of the Constitution of the United States and the Bill of Rights, . The board shall display the flags in each classroom in accordance with title 4 of the United States Code and display a legible copy of the Constitution of the United States and the Bill of Rights adjacent to the flag.

18. To facilitate the transfer of military personnel and their dependents to and from the public schools of this state, pursue, in cooperation with the state board of education, reciprocity agreements with other states concerning the transfer credits for military personnel and their dependents. A reciprocity agreement entered into pursuant to this paragraph shall:

(a) Address procedures for each of the following:

(i) The transfer of student records.

(ii) Awarding credit for completed coursework.

(iii) Permitting a student to satisfy the graduation requirements prescribed in section 15-701.01 through the successful performance on comparable exit-level assessment instruments administered in another state.

(b) Include appropriate criteria developed by the state board of education and the Arizona board of regents.

19. Require a university to publicly post notices of all of its the university's employment openings, including the title and description, instructions for applying and relevant contact information.

20. In consultation with the community college districts in this state, develop and implement common equivalencies for specific levels of achievement on advanced placement examinations and international baccalaureate examinations in order to award commensurate postsecondary academic credits at community colleges and public universities in this state.

21. On or before August 1 of each year, report to the joint legislative budget committee the graduation rate by university campus during the previous fiscal year. The board shall also report the retention rate by university campus and by class, as determined by date of entry during the previous fiscal year.

22. Prohibit each university under the jurisdiction of the board from using public or private monies to subsidize, offset, reduce or mitigate the tuition or fees charged to any student who is not lawfully present in the United States. For the purposes of this paragraph, a student is not lawfully present in the United States if the student is any of the following:

(a) Present in the United States without authorization under federal law.

(b) A foreign national who has been paroled into the United States by the United States department of homeland security.

(c) A foreign national who has applied or intends to apply for asylum in the United States if the application for asylum has not yet been approved.

B. The Arizona board of regents shall adopt personnel policies for all employees of the board and the universities.

C. In conjunction with the auditor general, the Arizona board of regents shall develop a uniform accounting and reporting system, which shall be reviewed by the joint legislative budget committee before final adoption by the board. The board shall require each university to comply with the uniform accounting and reporting system.

D. The Arizona board of regents may employ legal assistance in procuring loans for the institutions from the United States government. Fees or compensation paid for such legal assistance pursuant to this subsection shall not be a claim on the general fund of this state but shall be paid from funds of the institutions.

E. The Arizona board of regents shall approve or disapprove any contract or agreement entered into by the university of Arizona hospital with the Arizona industrial development authority.

F. The Arizona board of regents may adopt policies that authorize the institutions under its jurisdiction to enter into employment contracts with nontenured employees for periods of more than one year but not more than five years. The policies shall must prescribe limitations on the authority of the institutions to enter into employment contracts for periods of more than one year but not more than five years, including the requirement that the board approve the contracts.

G. The Arizona board of regents may adopt a plan or plans for employee benefits that allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.

H. The arizona board of regents may establish a program for the exchange of students between the universities under the jurisdiction of the board and colleges and universities located in the state of Sonora, Mexico. Notwithstanding subsection A, paragraph 5 of this section, the program may provide for in-state tuition at the universities under the jurisdiction of the board for fifty Sonoran students in exchange for similar tuition provisions for up to fifty Arizona students enrolled or seeking enrollment in Sonoran colleges or universities. The board may direct the universities to work in conjunction with the Arizona-Mexico commission to coordinate recruitment and admissions activities.

I. The Arizona board of regents, in collaboration with the universities under its the board's jurisdiction, shall adopt a performance funding model. The performance funding model shall use using performance metrics that include the increase in degrees awarded, the increase in completed student credit hours and the increase in externally generated research and public service funding. The funding formula may give added weight to degrees related to science, technology, engineering and mathematics and other high-value degrees that are in short supply or that are essential to this state's long-term economic development strategy.

J. The Arizona board of regents shall use the performance funding model adopted pursuant to subsection I of this section in developing and submitting budget requests for the universities under its the board's jurisdiction.

K. On or before November 1 of each year, the Arizona board of regents shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report on university debt and obligations, including:

1. Long-term notes and obligations.

2. Certificates of participation and other obligations pursuant to any lease-purchase agreements.

3. Revenue bonds.

4. Bonds issued pursuant to section 15-1682.03.

5. Commercial paper issued pursuant to section 15-1696.

L. The report issued submitted pursuant to subsection K of this section shall must contain, for the most recent fiscal year:

1. The aggregate level of outstanding principal and the principal and interest payments, by type of debt or obligation.

2. An itemization, by campus and project, of the amount of yearly principal and interest to be paid in the most recent and the next five fiscal years.

M. The Arizona board of regents may enter into an intergovernmental agreement pursuant to section 15-1747 to manage universities under its the board's jurisdiction subject to the terms of the reciprocity agreement.

N. For the purposes of this section, "university debt and obligations" means debt and obligations, the principal and interest of which are paid in whole or in part with university monies. END_STATUTE

Sec. 2. Section 15-1650.06, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1650.06. Arizona veterinary loan assistance program; fund; annual report; rules; definitions

A. The Arizona veterinary loan assistance program is established within the Arizona board of regents.

B. The Arizona veterinary loan assistance fund is established consisting of legislative appropriations. The board 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. On notice from the Arizona board of regents, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. The board shall use monies in the fund for the purposes prescribed in this section and may retain up to three percent of the monies deposited in the fund for costs associated with administering the program.

C. A person who obtains a doctor of veterinary medicine degree from a veterinary college after January 1, 2023 and who signs an agreement pursuant to subsection D of this section may apply to the board to participate in the program.

D. To participate in the program, the board shall require an applicant to sign an agreement to both:

1. Remain and work as a full-time veterinarian in this state for the following four years.

2. Work in one of the following practice areas for at least two of the four years:

(a) An agricultural practice in an area designated by the United States department of agriculture as having a shortage.

(b) A nonprofit, county or municipal shelter.

E. At the conclusion of the four-year commitment described in subsection D of this section, the board shall determine whether the veterinarian satisfied the terms of the agreement described in subsection D of this section. If the board determines that the veterinarian satisfied the terms of the agreement described in subsection D of this section, the board shall distribute to the veterinarian from the Arizona veterinary loan assistance fund an amount that is equal to the amount of the veterinarian's outstanding veterinary college educational loan balance or $100,000, whichever is less. The board shall distribute monies from the fund subject to the availability of monies and legislative appropriation and on a first-come, first-served basis. For the purposes of this subsection, "educational loan balance" means the balance of the principal, interest and related expenses of the educational loan.

F. On or before October 1 of each year, the board shall compile a report that details how the Arizona veterinary loan assistance fund monies are being spent and shall submit this report to the governor, the president of the senate and the speaker of the house of representatives. The board shall submit a copy of this report to the secretary of state.

G. The board may adopt rules for the purposes of carrying out this section.

H. For the purposes of this section:

1. "Board" means the Arizona board of regents.

2. "Veterinarian" has the same meaning prescribed in section 32-2201.

3. "Veterinary college" has the same meaning prescribed in section 32-2201. END_STATUTE

Sec. 3. Section 15-1655, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1655. Arizona teachers academy; tuition and fees scholarships; fund; annual report; definitions

A. Eligible postsecondary institutions shall implement an Arizona teachers academy to incentivize students to enter the teaching profession and to commit to teach in Arizona public schools or for or in schools that serve primarily public school students with disabilities, which are considered public schools for the purposes of this section. The Arizona board of regents, in consultation with eligible postsecondary institutions, shall develop and implement centralized administrative processes for the academy, including:

1. A marketing and promotion plan to recruit students for the academy.

2. Data collection and reporting.

3. Tracking postgraduation service requirements.

4. Coordinating induction services.

5. Distributing monies in the Arizona teachers academy fund between eligible postsecondary institutions.

6. Collecting reimbursement from individuals who fail to meet service obligations.

B. The Arizona teachers academy may include new or existing teacher preparation program pathways that are student-focused and that employ proven, research-based models of best practices already being implemented. Each eligible postsecondary institution may develop a portfolio of teacher preparation programs to offer as part of the academy. Each eligible postsecondary institution that admits students to the Arizona teachers academy may give priority to senior and junior students but may not exclude sophomore and freshmen freshman students. Programs offered as part of the academy shall include accelerated models for:

1. High-demand teacher specializations, including special education, science, technology, engineering and mathematics.

2. Critical need areas, including low-income public schools, public schools located on Indian reservations, rural public schools and schools that serve primarily public school students with disabilities.

3. Individuals seeking postbaccalaureate coursework that results in professional certification.

4. Teachers who are currently teaching a dual enrollment course to satisfy the requirements for teaching a dual enrollment course adopted by a higher learning commission that accredits degree-granting postsecondary educational institutions in the north central region, including this state.

5. Students in noneducation programs to complete one or more teacher preparation courses to prepare the student to receive a teaching certification following graduation.

C. Each eligible postsecondary institution shall develop formalized partnerships with public schools in this state to build commitments for teacher employment on completion of the Arizona teachers academy. The targeted deployment of teachers who have completed the academy shall be based on the needs of each school system and the community that is being served as well as the individual skills of each teacher.

D. Each eligible postsecondary institution shall provide to each student who is enrolled in the Arizona teachers academy an annual scholarship up to the actual cost of tuition and fees for a maximum of two academic years or four semesters for graduate university students, up to the actual cost of tuition and fees for a maximum of four academic years or eight semesters for undergraduate university students, up to the actual cost of tuition and fees for a maximum of two academic years or four semesters for community college students for tuition and fees associated with the student's program of study, up to the actual cost of obtaining national board certification and renewal, and up to the actual cost of obtaining a teaching certificate including the actual cost of the exam, after all other financial gifts, aid or grants received by that student or teacher. Scholarships under this subsection are subject to all of the following:

1. If the student does not successfully complete the academic year in good academic standing, the student shall reimburse the Arizona board of regents for the total amount of the scholarship for tuition and fees the student received for that year.

2. For each academic year that the student successfully completes and for which the student receives a scholarship for all tuition and fees, the student must agree to teach for one full school year in a public school in this state. For students who are teaching and receiving the scholarship concurrently, the commitment period begins after graduation from the Arizona teachers academy. For teachers who are seeking a national board certification, the teaching commitment is one additional year after completing the requirements of the national board certification program.

3. If a student enrolls in a summer term, that term may not be included in the calculation of the student's postgraduation public service commitment.

4. If the scholarship does not cover remaining tuition and fee costs after other aid received, the eligible postsecondary institution may not charge students the remaining difference. If the scholarship amount exceeds tuition and fee costs at an eligible postsecondary institution, the eligible postsecondary institution may use the remaining amount to support Arizona teachers academy costs.

5. If the student does not fulfill the student's obligation to teach in a public school, the student must reimburse the Arizona board of regents for the proportional amount of the scholarship for tuition and fees that the student received that corresponds to the number of school years the student agreed to teach but did not teach in a public school in this state.

6. If the student is physically or mentally unable to fulfill the requirements of the Arizona teachers academy, the Arizona board of regents shall establish a process for assessing the student's ability to repay the financial assistance received and shall determine any terms of repayment.

7. The Arizona board of regents shall establish a process for deferring service or repayment based on factors adopted by the board.

E. The Arizona teachers academy fund is established consisting of monies deposited pursuant to section 15-1281, subsection D, paragraph 5 and section 15-1809, subsection D and legislative appropriations made for the purpose of administering the Arizona teachers academy. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. The Arizona board of regents shall administer the fund and shall establish criteria for distributing monies in the fund to eligible postsecondary institutions each fiscal year to fund the costs of the academy. Monies in the fund may be used only for:

1. Reimbursing Arizona teachers academy scholarships that cover the balance of tuition and fees for undergraduate, graduate and postbaccalaureate students who are enrolled in the Arizona teachers academy after all other gifts and aid received. Reimbursement for an Arizona teachers academy scholarship provided to a student by a degree-granting private postsecondary educational institution may not exceed the remainder of the average in-state tuition and fees charged by universities under the jurisdiction of the Arizona board of regents, minus other gifts and aid awarded to the student.

2. Support for teachers who are currently employed in a public school in this state and who are seeking a national board certification.

3. Induction services for Arizona teachers academy graduates.

4. Implementing a marketing and promotion plan to recruit and retain students in the Arizona teachers academy with particular emphasis on ensuring that participants reflect the diversity of the this state's student population and administering the Arizona teachers academy. Annual expenditures for marketing, promoting and administering the Arizona teachers academy may not exceed three percent of the monies in the fund each fiscal year.

F. Monies remaining in the Arizona teachers academy fund at the end of each fiscal year may be used by eligible postsecondary institutions for Arizona teachers academy costs in the next fiscal year.

G. On or before March 1, 2020 and each year thereafter, the Arizona board of regents shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on all of the following:

1. The total number of students enrolled in the Arizona teachers academy by eligible postsecondary institution in the current academic year.

2. The number of Arizona teachers academy graduates receiving induction services in the current academic year.

3. The estimated amount of monies committed from the Arizona teachers academy fund in the current fiscal year.

H. On or before September 1 each year, the Arizona board of regents shall report to the governor, the president of the senate and the speaker of the house of representatives, and shall submit a copy to the secretary of state, on all of the following:

1. The total number of students enrolled in the Arizona teachers academy at each eligible postsecondary institution by year of college enrollment and the number of teachers receiving a scholarship through the Arizona teachers academy for national board certification.

2. The percentage of students who completed each year of the academy and who plan to continue to the subsequent year, delineated by each teacher preparation program offered by each eligible postsecondary institution as part of the Arizona teachers academy.

3. The number of teachers who completed a program of study through the Arizona teachers academy by each eligible postsecondary institution.

4. The number of teachers currently teaching in a public school in this state as part of an agreement for receiving an Arizona teachers academy scholarship.

5. The number of graduates receiving induction services.

6. The number of students who have defaulted on their obligation and who are in repayment agreements.

7. The number of students who have deferred repayment agreements.

8. The number of students who have completed repayment agreements.

9. The methodology for distributing any monies appropriated for the Arizona teachers academy to each eligible postsecondary institution and the amounts distributed to each.

10. The amount of unused monies in the Arizona teachers academy fund from the prior fiscal year.

I. A college in this state that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation and that offers baccalaureate teacher education programs may participate in the Arizona teachers academy and receive monies from the Arizona teachers academy fund established by this section.

J. A degree-granting private postsecondary educational institution in this state that offers postbaccalaureate teacher preparation programs that lead to teacher certification may participate in the Arizona teachers academy and receive monies from the Arizona teachers academy fund established by this section.

J. K. For the purposes of this section:

1. "Eligible postsecondary institutions institution" means any of the following: universities

(a) A university under the jurisdiction of the Arizona board of regents. ,

(b) A community colleges college in this state that offer offers postbaccalaureate programs that lead to teacher certification and that have entered into an agreement with the Arizona board of regents relative to these postbaccalaureate programs. , and colleges

(c) A college described in subsection I of this section if the college opts to participate in the Arizona teachers academy under subsection I of this section.

(d) A degree-granting private postsecondary educational institution described in subsection J of this section if the institution opts to participate in the Arizona teachers academy under subsection J of this section.

2. "School that serves primarily public school students with disabilities" means a school in which more than seventy-five percent of the students enrolled in the school are public school students who are placed at the school according to an agreement with a school, a charter school or the Arizona state schools for the deaf and the blind.

3. "Tuition and fees" means tuition, mandatory fees and program fees that are associated with a program in the Arizona teachers academy leading to teacher certification and that are charged by an eligible postsecondary institution. END_STATUTE

Sec. 4. Section 15-1682.03, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1682.03. University capital improvement lease-to-own and bond fund; lease-to-own and bond agreements for capital improvements; joint committee on capital review hearing and approval; exemption

A. The university capital improvement lease-to-own and bond fund is established consisting of the monies provided by the Arizona board of regents pursuant to this section, monies deposited pursuant to section 5-572 and monies appropriated by the legislature. The board shall administer the fund. On notice from the board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. Through revenues of the state university system, the board shall annually provide monies to the fund of at least twenty per cent percent of the aggregate annual payments of lease-to-own and bond agreements entered into by the board pursuant to this section.

C. Subject to the requirements prescribed by subsection D of this section, the board shall distribute monies in the fund to make payments pursuant to lease-to-own and bond agreements entered into by the board pursuant to this section. The board may enter into lease-to-own and bond agreements for the purposes of building renewal projects and new facilities. New lease-to-own and bond agreements entered into pursuant to this section shall not exceed one hundred sixty-seven million six hundred seventy-one thousand two hundred dollars in fiscal year 2008-2009 and four hundred million dollars in fiscal year 2009-2010. Beginning in fiscal year 2026-2027, the board may enter into lease-to-own and bond transactions up to a maximum of eight hundred million dollars $1,125,000,000.

D. Notwithstanding section 5-572, subsection G, the amount of state lottery revenues distributed to the university capital improvement lease-to-own and bond fund in fiscal year 2009-2010 and fiscal year 2010-2011 shall not exceed an amount sufficient for up to eighty per cent of the annual payments of the first one hundred sixty-seven million six hundred seventy-one thousand two hundred dollars of new lease-to-own and bond agreements entered into pursuant to this section. The full amount of state lottery revenues distributed to the university capital improvement lease-to-own and bond fund pursuant to section 5-572, subsection G shall be made available to the board for the remaining new lease-to-own and bond agreements up to eight hundred million dollars beginning in fiscal year 2011-2012.

D. Beginning on the effective date of this amendment to this section, the Board shall submit to the joint committee on capital review the scope, purpose and estimated cost of each new project that will be financed pursuant to this section. The Board may not distribute monies for a project that the board is required to submit pursuant to this subsection until the joint committee on capital review approves the project by a majority vote of a quorum of members. For the purposes of this subsection, "financed" means funded, in whole or in part, by either of the following:

1. payments pursuant to lease-to-own agreements entered into by the board pursuant to this section.

2. The proceeds of one or more bond agreements entered into by the Board pursuant to this section.

E. The joint committee on capital review must hear and approve or disapprove a project submitted pursuant to subsection D of this section not later than the committee's second meeting after the project is submitted to the committee.

E. F. In entering into lease-to-own and bond agreements pursuant to this section, the board shall not obligate this state to provide any additional monies from the state lottery fund above the amounts authorized in this section and section 5-572, subsection G F. In entering into lease-to-own and bond agreements pursuant to this section, the board shall not obligate any state general fund monies.END_STATUTE

Sec. 5. Section 15-1809, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1809. Spouses of military veterans tuition scholarship fund; tuition scholarships; eligibility; rules

A. The spouses of military veterans tuition scholarship fund is established consisting of legislative appropriations. The Arizona board of regents 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. On notice from the Arizona board of regents, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Subject to available monies, the Arizona board of regents shall use the monies in the fund to award tuition scholarships to any person who meets all of the following requirements:

1. Enrolls in a university under the jurisdiction of the Arizona board of regents or in a community college as defined in section 15-1401.

2. Is the spouse of an honorably discharged veteran of the armed forces of the United States. For the purposes of proving that the person's spouse is an honorably discharged veteran of the armed forces of the United States as required by this paragraph:

(a) The person shall submit proof of the honorable discharge or general discharge under honorable conditions of the person's spouse.

(b) The Arizona department of veterans' services shall verify that the person is the spouse of an honorably discharged veteran.

3. Is entitled to classification as an in-state student under section 15-1802.

4. Is a resident of this state at the time of applying for a tuition scholarship and continues to be a resident of this state while receiving a tuition scholarship under this section.

5. Completes and submits the free application for federal student aid for each year that the person receives a tuition scholarship under this section.

6. Complies with the standards of satisfactory academic progress as established by the university or community college in which the person enrolls.

7. Completes a family educational rights and privacy act of 1974 (P.L. 93-380; 88 Stat. 57 571) release form for each university or community college in which the person is enrolled to authorize the release of personally identifiable information required to determine continued tuition scholarship eligibility under this section.

B. A person who meets the requirements prescribed in subsection A of this section may apply to the Arizona board of regents for a tuition scholarship from the fund in a manner prescribed by the Arizona board of regents. Subject to available monies, the Arizona board of regents shall award an eligible person a tuition scholarship that is equal to the amount of tuition and mandatory fees charged by the university or community college in which the person is enrolled, reduced by the amount of any federal aid scholarships or public grants and any other financial gifts, grants or aid received by that person. The Arizona board of regents shall verify that the person satisfies the requirements prescribed in subsection A of this section before awarding a tuition scholarship. If the Arizona board of regents determines that a person no longer satisfies the requirements prescribed in subsection A of this section, the Arizona board of regents may not award a subsequent tuition scholarship from the fund until the person submits documentation showing that the person satisfies all requirements prescribed in subsection A of this section.

C. A tuition scholarship provided pursuant to this section shall be:

1. Limited to not more than four academic years or eight semesters.

2. Used only for a certificate, an associate degree or a baccalaureate degree.

3. Used only to pay tuition and mandatory fees at a university under the jurisdiction of the Arizona board of regents or at a community college as defined in section 15-1401.

D. Tuition scholarships under this section shall be awarded on a first-come, first-served basis. If there are insufficient monies in the fund, the Arizona board of regents may not award a tuition scholarship to an eligible person under this section. If there are unexpended and unencumbered monies remaining in the fund after tuition scholarships are awarded to all eligible applicants pursuant to subsection A of this section, the remaining monies shall be deposited in the Arizona teachers academy fund established by section 15-1655.

E. The Arizona board of regents may adopt rules for the purposes of administering this section. END_STATUTE

Sec. 6. Laws 2023, chapter 140, section 6, as amended by Laws 2024, chapter 216, section 2, is amended to read:

Sec. 6. Spouses and dependents of law enforcement officers tuition scholarship fund; tuition scholarships; eligibility; rules; reporting requirements; delayed repeal; transfer of monies; definition

A. The spouses and dependents of law enforcement officers tuition scholarship fund is established consisting of legislative appropriations. The Arizona board of regents shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. Subject to available monies, the Arizona board of regents shall use the monies in the fund to award tuition scholarships to any individual who meets both all of the following requirements:

1. Enrolls in any of the following:

(a) A university under the jurisdiction of the Arizona board of regents.

(b) A community college as defined in section 15-1401, Arizona Revised Statutes.

(c) A career technical education program that is offered to adults or an associate degree program offered by a career technical education district pursuant to section 15-398, Arizona Revised Statutes.

(d) A private postsecondary educational institution in this state that is licensed pursuant to title 32, chapter 30, article 2, Arizona Revised Statutes.

2. Is either:

(a) The spouse of a law enforcement officer.

(b) Under twenty-seven years of age and a dependent of a law enforcement officer.

3. Is a resident of this state when the individual both:

(a) Applies for a tuition scholarship.

(b) Receives a tuition scholarship pursuant to this section.

4. For an individual who is enrolled in a university under the jurisdiction of the Arizona board of regents, is physically present in this state during each semester for which the individual receives a tuition scholarship pursuant to this section.

B. An individual who meets the requirements prescribed in subsection A of this section may apply to the Arizona board of regents for a tuition scholarship from the fund in a manner prescribed by the Arizona board of regents. Subject to available monies, the Arizona board of regents shall award an eligible individual a tuition scholarship that is equal to the amount of tuition and mandatory fees charged by the university, community college or career technical education district in which the individual is enrolled, reduced by the amount of any federal aid scholarships or public grants and any other financial gifts, grants or aid received by that individual, except that if the individual is enrolled in a private postsecondary educational institution, the tuition scholarship may not exceed the remainder of the average in-state tuition and fees charged by universities under the jurisdiction of the Arizona board of regents minus other gifts and aid awarded to that individual. The Arizona board of regents shall verify that the individual satisfies the requirements prescribed in subsection A of this section before awarding a tuition scholarship. If the Arizona board of regents determines that an individual no longer satisfies the requirements prescribed in subsection A of this section, the Arizona board of regents may not distribute additional monies from the fund to the individual until the individual submits documentation showing that the individual satisfies all requirements prescribed in subsection A of this section.

C. A tuition scholarship provided pursuant to this section shall be:

1. Limited to not more than four academic years or eight semesters.

2. Used only for a career technical education district program certificate or license, a private vocational program as defined in section 32-3001, Arizona Revised Statutes, an associate degree or a baccalaureate degree.

3. Used only to pay tuition and mandatory fees at a career technical education district, a private postsecondary educational institution in this state that is licensed pursuant to title 32, chapter 30, article 2, Arizona Revised Statutes, a university under the jurisdiction of the Arizona board of regents or a community college as defined in section 15-1401, Arizona Revised Statutes. If the applicant is not charged to attend a career technical education district program, the Arizona board of regents may not award the applicant a tuition scholarship under this section.

E. The Arizona board of regents may rely on a copy of the law enforcement officer's commission card and a current employment verification letter from the law enforcement officer's employer to establish that an individual is a law enforcement officer for the purposes of this section.

F. The Arizona board of regents may adopt rules for the purposes of administering this section.

G. On or before March 1, 2024 and each year thereafter, the Arizona board of regents shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on all of the following:

1. The total number of students who received a tuition scholarship under this section by eligible postsecondary institution in the current academic year.

2. The total amounts awarded and average amounts awarded under this section by eligible postsecondary institution in the current academic year.

3. The total number of students who received a tuition scholarship under this section and who graduated or completed a program of study by eligible postsecondary institution.

4. Each law enforcement agency that employs a law enforcement officer whose spouse or dependent, or both, receives a tuition scholarship under this section.

H. From and after June 30, 2025 2027, this section is repealed and all unexpended and unencumbered monies remaining in the spouses and dependents of law enforcement officers tuition scholarship fund established by this section are transferred to the state general fund.

I. For the purposes of this section, "law enforcement officer" means an individual who is a resident of this state and who is currently employed in this state as either a peace officer as defined in section 15-1808, Arizona Revised Statutes, or a correctional officer.

Sec. 7. Financial aid trust fund; required state match; reduction

Notwithstanding section 15-1642, subsection C, Arizona Revised Statutes, for fiscal year 2025-2026, each dollar raised pursuant to the surcharge on student registration fees assessed pursuant to section 15-1642, subsection A, Arizona Revised Statutes, may be matched by less than $2 appropriated by the legislature.

Sec. 8. Community college districts; state aid for science, technology, engineering and mathematics and workforce programs

Notwithstanding section 15-1464, subsection A, paragraph 3, Arizona Revised Statutes, state aid for science, technology, engineering and mathematics and workforce programs for community college districts for fiscal year 2025-2026 is as specified in the general appropriations act.

Sec. 9. Community college districts; operating state aid; eligibility; limits

Notwithstanding section 15-1466, Arizona Revised Statutes, operating state aid for community college districts for fiscal year 2025-2026 is as specified in the general appropriations act.

Sec. 10. Arizona board of regents; tuition reduction; prohibited charges; delayed repeal

A. The Arizona board of regents shall fix the tuition to be charged at each university under the jurisdiction of the Arizona board of regents for resident undergraduate students at a tuition rate that is 2.5 percent lower than the tuition rate established in fiscal year 2024-2025 for each university. The tuition rates fixed pursuant to this subsection shall be the tuition rates for each university for fiscal years 2025-2026, 2026-2027 and 2027-2028.

B. The Arizona board of regents and each university under the jurisdiction of the Arizona board of regents may not require students to pay any charge, including a tuition surcharge or fee, as a result of the reduced tuition rates fixed pursuant to subsection A of this section.

C. This section is repealed from and after December 31, 2028.

Sec. 11. Spouses and dependents of law enforcement officers tuition scholarship fund; fiscal years 2025-2026 and 2026-2027 transfers; delayed repeal

A. Notwithstanding section 15-1809, Arizona Revised Statutes, as amended by this act, in each of fiscal years 2025-2026 and 2026-2027, if there are unexpended and unencumbered monies remaining in the spouses of military veterans tuition scholarship fund established by section 15-1809, Arizona Revised Statutes, as amended by this act, after the Arizona board of regents awards tuition scholarships to all eligible applicants pursuant to section 15-1809, subsection A, Arizona Revised Statutes, as amended by this act, the Arizona board of regents shall deposit the remaining monies as follows:

1. $2,000,000 in the spouses and dependents of law enforcement officers tuition scholarship fund established by Laws 2023, chapter 140, section 6, as amended by Laws 2024, chapter 216, section 2 and this act.

2. All monies remaining in the spouses of military veterans tuition scholarship fund after the deposit required by paragraph 1 of this subsection in the Arizona teachers academy fund established by section 15-1655, Arizona Revised Statutes, as amended by this act.

B. This section is repealed from and after June 30, 2027.

Sec. 12. Retroactivity

Sections 15-1650.06 and 15-1809, Arizona Revised Statutes, as amended by this act, apply retroactively to from and after June 30, 2025.