Bill Text: AZ SB1572 | 2020 | Fifty-fourth Legislature 2nd Regular | Engrossed


Bill Title: Arizona promise scholarship program; appropriation

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2020-05-20 - Assigned to House RULES Committee [SB1572 Detail]

Download: Arizona-2020-SB1572-Engrossed.html

 

 

 

Senate Engrossed

 

 

 

 

State of Arizona

Senate

Fifty-fourth Legislature

Second Regular Session

2020

 

 

 

SENATE BILL 1572

 

 

 

AN ACT

 

amending section 15-1642, Arizona Revised Statutes; amending Title 15, chapter 13, article 2, Arizona Revised Statutes, by adding section 15‑1647; appropriating monies; relating to the Arizona board of regents.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1.  Section 15-1642, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1642.  Financial aid trust fund; endowment

A.  The Arizona board of regents may establish a financial aid trust fund for the purposes of providing immediate aid to students with verifiable financial need, including students who are underrepresented in the population of university students or who by virtue of their special circumstances present unique needs for financial aid, through the Arizona promise scholarship program established pursuant to section 15‑1647 and creating an endowment for future financial aid through the Arizona promise scholarship program established pursuant to section 15‑1647Subject to the limits provided in subsection B, paragraph 3 of this section, the board may assess a surcharge on registration fees paid by students for deposit in the fund.  The fund shall also consist consists of monies deposited pursuant to section 15‑1670, subsection F.  The interest income derived from monies in the fund shall be deposited in the Arizona promise scholarship fund established by section 15‑1647.

B.  The board shall adopt rules to govern the financial aid trust fund. , including the following:

1.  Twenty‑five percent of the monies received each year shall be placed in the trust fund as a permanent endowment.  The remaining monies received shall be used for immediate aid for students with verifiable financial need.  At least fifty percent of the immediate aid monies shall be used for grant aid.

2.  The immediate aid monies shall be distributed to the universities on a pro rata basis based on relative student contributions to the fund.

3.  The surcharge on student registration shall not exceed one percent of the registration fee for students taking more than six credit surcharge hours.  The surcharge hours for students taking fewer than seven credit hours shall equal one‑half the surcharge assessed students taking more than six credit hours.

C.  Each dollar raised pursuant to the surcharge on student registration shall be matched by $2 appropriated by the legislature.

D.  b.  The board shall report every three years to the legislature on the status of the financial aid trust fund.  The report shall include the use to which the monies have been put and the impact of such use.

E.  Fund monies shall only be used in university assistance programs approved by the board and such monies shall be in addition to, and not in replacement of, existing state or institutional financial aid monies.  Assistance may be provided to full‑time or part‑time students.  Monies appropriated by this state shall not be used to provide assistance to students who are not residents of this state. END_STATUTE

Sec. 2.  Title 15, chapter 13, article 2, Arizona Revised Statutes, is amended by adding section 15-1647, to read:

START_STATUTE15-1647.  Arizona promise scholarship program; eligibility; fund; annual reports; program termination; definitions

A.  Each eligible postsecondary institution shall implement an Arizona promise scholarship program to increase college access and affordability for Arizona high school graduates.  The Arizona board of regents, in collaboration with eligible postsecondary institutions, shall develop and implement centralized administrative processes for the Arizona promise scholarship program, including:

1.  Application policies and procedures.

2.  A marketing and promotion plan to build public awareness for the Arizona promise scholarship program that is aimed at Arizona high school teachers, school counselors, students and parents.

3.  Data collection and reporting.

4.  Distributing scholarship monies between eligible postsecondary institutions.

B.  To be eligible for a scholarship under this section, a student applicant must do all of the following:

1.  Prove that the student meets all of the following criteria:

(a)  Is a United States citizen or permanent resident.

(b)  Is a resident of this state.

(c)  Has been a resident of this state for at least the past twelve months.

(d)  Has completed an education and career action plan. 

2.  Submit a high school transcript that proves the student graduated from a public or private high school in this state.  If high school records no longer exist for the student or every reasonable effort has been made to obtain official records and the records are unable to be located, the student may submit either of the following for the purposes of this paragraph:

(a)  A letter certified by the high school from which the student graduated that states the student graduated from that high school.

(b)  The student's original high school diploma.

3.  Submit a high school transcript that proves the student graduated with a minimum grade point average of 3.5 on a 4.0 scale.  IF HIGH SCHOOL RECORDS NO LONGER EXIST FOR THE STUDENT OR EVERY REASONABLE EFFORT HAS BEEN MADE TO OBTAIN OFFICIAL RECORDS AND THE RECORDS are UNABLE TO BE LOCATED, THE STUDENT MAY SUBMIT either of the following for the purposes of this paragraph:

(a)  A LETTER CERTIFIED BY THE HIGH SCHOOL FROM WHICH THE STUDENT GRADUATED that states the student's grade point average.

(b)  If the student's grade point average is evidenced by the student's high school diploma, tHE STUDENT'S ORIGINAL HIGH SCHOOL DIPLOMA.

4.  Complete and submit a free application for federal student aid and meet the eligibility criteria for the federal pell grant under 20 United States Code, chapter 28, subchapter IV, part A, subpart 1 and 34 Code of Federal regulations part 690.

C.  Each eligible postsecondary institution shall award to each eligible full‑time undergraduate student applicant for a maximum of four academic years or eight semesters an annual scholarship amount that covers the balance of tuition and fees after all other financial gifts, aid or grants are received by that student.  Graduate students are not eligible for scholarships under this section.

D.  The Arizona promise scholarship fund is established consisting of legislative appropriations and earnings from the financial aid trust fund established by section 15-1642 for the purpose of administering the Arizona promise scholarship program.  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 program.  Monies in the fund may be used only for:

1.  Reimbursing Arizona promise scholarships that cover the balance of tuition and fees for undergraduate students after all other gifts and aid received.

2.  Implementing a marketing and promotion plan to build public awareness for the Arizona promise scholarship program that is aimed at Arizona high school teachers, school counselors, students and parents and administering the Arizona promise scholarship program.  Annual expenditures for marketing, promoting and administering the Arizona promise scholarship program may not exceed three percent of the monies in the Arizona promise scholarship fund each fiscal year.

E.  Monies remaining in the Arizona promise scholarship fund at the end of each fiscal year may be used by eligible postsecondary institutions to award Arizona promise scholarships to eligible students in the next fiscal year.

F.  On or before August 1 of each fiscal year, the state general fund appropriation for the Arizona promise scholarship program for the current fiscal year shall be reduced by the amount of monies remaining in the Arizona promise scholarship fund at the end of the prior fiscal year.

G.  On or before March 1, 2021 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 awarded Arizona promise scholarships by eligible postsecondary institution in the current academic year.

2.  The estimated amount of monies committed from the Arizona promise scholarship fund in the current fiscal year.

H.  On or before September 1, 2021 and each year thereafter, 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 with respect to students who received Arizona promise scholarships:

1.  The total number of students awarded Arizona promise scholarships at each eligible postsecondary institution by year of college enrollment.

2.  The percentage of students who completed each academic year and who plan to continue to the subsequent year, delineated by each eligible postsecondary institution.

3.  The number of students who completed an undergraduate degree by each eligible postsecondary institution.

4.  The methodology for distributing any monies appropriated for the Arizona promise scholarship program to each eligible postsecondary institution and the amounts distributed to each eligible postsecondary institution.

5.  The amount of unused monies in the Arizona promise scholarship fund from the prior fiscal year.

I.  The program established pursuant to this section ends on July 1, 2030 pursuant to section 41-3102.

J.  For the purposes of this section:

1.  "Education and career action plan" means a plan that is required by the state board of education for all students in grades nine through twelve and that allows a student to enter, track and update the student's annual academic, career, postsecondary and extracurricular goals.

2.  "Eligible postsecondary institutions" means universities under the jurisdiction of the Arizona board of regents.

3.  "Tuition and fees" means tuition, mandatory fees and program fees that are charged by an eligible postsecondary institution. END_STATUTE

Sec. 3.  Appropriation; Arizona promise scholarship fund

The sum of $20,000,000 is appropriated from the state general fund in fiscal year 2020-2021 to the Arizona promise scholarship fund established by section 15-1647, Arizona Revised Statutes, as added by this act.

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