ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

 

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


HB 4106: one Arizona fellowship program

Sponsor: Representative Márquez, LD 5

Committee on Education

Overview

Establishes the One Arizona Service Fellowship Program (Program) to provide service opportunities to young adults in Arizona. Appropriates a blank amount from the state General Fund (GF) in FY 2027 for the Program.

History

The Governor's Office of Youth, Faith and Family (GOYFF) is a cabinet-level agency that administers state and federal grant programs for public and private organizations, as well as executive-level councils and commissions, including the Governor's Commission on Service and Volunteerism (Commission). GOYFF, in coordination with the Commission, administers federal funds for AmeriCorps state and national programming (GOYFF) (GOYFF AmeriCorps Grants).

In order for a state to receive AmeriCorps Program funding, federal law and regulations require a state to develop a three-year state service plan that sets forth the state's goals, priorities and strategies for promoting national and community service and strengthening the state's service infrastructure. In April 2025, Governor Hobbs issued Executive Order (E.O.) 2025-03 to continue the Commission and require the Commission, in alliance with GOYFF, to: 1) prepare the three-year state service plan; 2) integrate AmeriCorps programs into the state service plan; and 3) review and approve applications for federal funding of AmeriCorps programs (45 C.F.R. § 2550.80) (E.O. 2025-03).

According to the Commission, funded programs address community needs such as: 1) preventing opioid misuse; 2) reducing the trauma of domestic violence; 3) increasing access to postsecondary and vocational education opportunities; 4) decreasing homelessness; 5) sustaining national trails and parks; 6) assisting seniors to stay independent; and 7) providing mentoring to Arizona youth in literacy, continuing education and science, technology, engineering and math programs (Commission).

Provisions

Program

1.   Creates the Program to provide meaningful service opportunities to young adults in Arizona to:

a.   prepare young adults for additional educational, training and career opportunities;

b.   address high priority needs within Arizona; and

c. provide stipends to participants and tuition awards to eligible recipients. (Sec. 1)

2.   Tasks GOYFF with administering the Program, subject to legislative appropriation, and providing staff for Program implementation. (Sec. 1)

3.   Appropriates a blank amount from the state GF in FY 2027 to GOYFF to implement the Program. (Sec. 2)

Program Requirements

4.   Allows GOYFF to enter into an agreement with third-party administrators to implement and administer the Program. (Sec. 1)

5.   Requires GOYFF, except as otherwise provided in an agreement with a third-party administrator, to:

a.   maintain a list of high priority policy needs in Arizona for which Program service opportunities can provide the most value to Arizona;

b.   receive applications from potential participants;

c. match participants to qualified partner organizations for Program participation;

d.   approve potential qualified partner organizations to participate in the Program;

e. maintain, or contract with a third party to maintain, a Program online portal as specified;

f. determine the metrics of Program success as specified;

g.   measure Program success according to the determined metrics;

h.   coordinate with institutions of higher education as specified; and

i. ensure Program compliance with federal requirements for the AmeriCorps Program administered by GOYFF. (Sec. 1)

6.   Authorizes GOYFF to solicit private donations to supplement the Program and make rules to implement Program requirements. (Sec. 1)

Participant and Qualified Partner Organization Agreements

7.   Requires GOYFF or the third-party administrator, before a participant provides service through the Program, to enter into an agreement with the participant that outlines mutual expectations of the Program and participant and that details the requirements of the participant, including the:

a.   total service hours required;

b.   exact stipend amount promised to the participant in the consideration of service;

c. exact tuition award amount promised to the participant on successful completion of a fellowship;

d.   qualifications for and acceptable uses of the tuition award; and

e. circumstances under which the agreement may be amended. (Sec. 1)

8.   Allows an agreement between GOYFF or the third-party administrator and the participant to include a provision that the Program is reducing the qualified partner organization's matching monies requirement due to receipt of private donations. (Sec. 1)

9.   Instructs GOYFF or the third-party administrator, before a qualified partner organization accepts service from a participant, to enter into an agreement with the qualified partner organization that outlines the mutual expectations of the Program and the qualified partner organization, including the exact amount of matching monies the qualified partner organization must provide to GOYFF to contribute to a participant's stipend. (Sec. 1)

10.  Mandates a qualified partner organization agree to contribute at least $5 per hour to a participant's stipend. (Sec. 1)

Program Stipends

11.  Allows GOYFF to issue, and a participant to receive, a stipend to a participant for participating in the Program. (Sec. 1)

12.  Directs GOYFF or the third-party administrator to establish the exact stipend for a participant on a case-by-case basis in agreement based on available Program monies and any matching monies provided by the qualified partner organization or private donations to the Program. (Sec. 1)

13.  Requires GOYFF or the third-party administrator to:

a.   contribute $5 per hour of the stipend, up to $8,500 for the term of the agreement, from state monies;

b.   supplement the remaining balance of a participant's exact stipend from nonstate monies;

c. prioritize a participant's placement with a qualified partner organization based on the amount of matching monies the organization proposes to provide to GOYFF, with preference going to organizations that offer to provide a larger stipend; and

d.   disburse the stipend to a participant in at least trimonthly installments. (Sec. 1)

Program Tuition Awards

14.  Mandates GOYFF:

a.   provide a tuition award to each eligible recipient on successful completion of a fellowship; and

b.   establish the exact tuition award for each eligible recipient on a case-by-case basis in an agreement based on federal requirements for the AmeriCorps Program. (Sec. 1)

15.  Specifies that if the Program uses state monies to supplement a tuition award:

a.   GOYFF or the third-party administrator must detail that information in agreement with an applicant or a qualified service organization; and

b.   an eligible recipient may use the state-funded portion of the tuition award only after they exhaust any other financial aid.

16.  Allows an eligible recipient to use a tuition award for any eligible education expense over a seven-year period beginning the day on which they receive the tuition award, subject to the outlined requirements if the Program uses state monies to supplement a tuition award. (Sec. 1)

Miscellaneous

17.  Defines pertinent terms. (Sec. 1)

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