ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2750: higher education; budget reconciliation; 2019-2020. |
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PRIME SPONSOR: Representative Cobb, LD 5 BILL STATUS: House Engrossed
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Contains budget
reconciliation provisions relating to higher education needed for implementing
the FY 2020 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, 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 bills known as Budget Reconciliation Bills (BRBs). These BRBs are prepared according to subject area.
Provisions
Community Colleges
1. Prohibits a community college district governing board from:
a. Compensating an employee for work performed on behalf of an elected employee representative organization; and
b. Providing more favorable terms and conditions of employment to any employee because that individual belongs to an elected employee representative organization. (Sec. 1)
2. Specifies that state aid for the science, technology, engineering and mathematics and workforce programs and operating state aid for community college districts for FY 2020 are established in the general appropriations act. (Sec. 9 and 10)
Arizona Teachers Academy Administration (Sec. 4)
3. Directs eligible postsecondary institutions to implement the Arizona Teachers Academy (Academy) and develop formalized partnerships with Arizona public schools to build commitments for teacher employment for students who complete the Academy.
4. Directs the Arizona Board of Regents (ABOR), in consultation with eligible postsecondary institutions, to develop and implement centralized administrative processes for the Academy and specifies what these processes must include.
5. Adds the following accelerated models which must be offered as part of the Academy teacher preparation programs:
a. High-demand teacher specializations, including special education.
b. Critical need areas, including low-income public schools, public schools located on Indian reservations, and rural public schools.
6. Requires each eligible postsecondary institution to provide each full-time student who is enrolled in the Academy with an annual scholarship for tuition and fees associated with the student's program of study, after certain deductions, in the following amounts below:
a. $10,000 per year for a maximum of two academic years or four semesters for graduate university students.
b. $5,000 per year for a maximum of four academic years or eight semesters for undergraduate university students.
c. $3,000 per year for a maximum of two academic years or four semesters for community college students.
d. $2,500 for teachers seeking national board certification.
7. Clarifies that Academy scholarships will be provided after the student or teacher has received all other financial gifts, aid or grants.
8. Specifies that scholarships received are subject to all the following:
a. If a student does not complete the academic year in good standing, the student must reimburse ABOR for the total amount of the scholarship for tuition and fees that the student received.
b. For each academic year that the student completes and receives a scholarship, the student must agree to teach for one full year in an Arizona public school. For students teaching and receiving the scholarship concurrently, the commitment period begins after graduation from the Academy. For teachers seeking a national board certification, the commitment is one additional year after completing national board certification requirements.
c. 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 the tuition and fee costs at an eligible postsecondary institution, the institution may use the remaining amount to support the Academy's costs.
d. If the student does not fulfill the obligation to teach in a public school, the student must reimburse ABOR for the proportional amount of 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 an Arizona public school.
e. If the student is physically or mentally unable to fulfill the Academy requirements, ABOR must establish a process to assess the student's ability to repay the financial assistance received and determine terms of repayment.
f. Requires ABOR to establish a process for deferring service or repayment based on factors it adopts.
9. Requires students enrolled in an Academy noneducation program to complete one or more teacher preparation courses.
Arizona Teachers Academy Fund (Sec. 4)
10. Establishes the Academy Fund (Fund), which is administered by ABOR and consists of legislative appropriations to administer the Academy.
11. Specifies that Fund monies are continuously appropriated and exempt from statutes relating to lapsing appropriations.
12. Directs ABOR to establish criteria for distributing Fund monies to eligible postsecondary institutions each fiscal year for Academy costs.
13. Prescribes that Fund monies may only be used for:
a. Reimbursing Academy scholarships that cover the balance of tuition and fees for undergraduate and post-baccalaureate students enrolled in the Academy after all other gifts and aid received.
b. Supporting teachers who are currently employed in a public school in this state and who are seeking national board certification.
c. Induction services for Academy graduates.
d. Implementing a marketing and promotion plan to recruit and retain students in the Academy and Academy administration.
14. Caps marketing, promotional, and administrative expenditures at 3% of Fund monies each fiscal year.
15. Allows eligible postsecondary institutions to use monies remaining in the Fund at the end of each fiscal year for Academy costs in the next fiscal year.
16. Mandates that, by August 1st of each fiscal year, the State General Fund appropriation for the Academy for the current fiscal year be reduced by the amount of monies remaining in the Fund at the end of the prior fiscal year.
Arizona Teachers Academy, Miscellaneous
17. Directs ABOR to report:
a. Information on Academy student enrollment, graduates receiving induction services, the number of teachers receiving scholarships for national board certification and Fund monies committed in the current academic year to the Joint Legislative Budget Committee and the Governor's Office of Strategic Planning and Budgeting by March 1, 2020 and each year thereafter; and
b. Information on Academy student and teacher enrollment, completion, employment in public schools, student repayment agreements to the Governor, the President of the Senate and the Speaker of the House of Representatives, and the Secretary of State by September 1, 2019 and each year thereafter. (Sec. 4)
18. Repeals the annual reporting requirements for the Academy established in Laws 2018, Ch. 281 (SB1527). (Sec. 5)
19. Defines eligible postsecondary institutions and tuition and fees. (Sec. 4)
University Technology Transfer (Sec. 6)
20. Requires, beginning in FY 2019 and in each fiscal year thereafter, for each university licensure agreement, royalty agreement or agreement for the sale or transfer of intellectual property developed by a university and for which net income for the individual agreement reaches over $1 million over its cumulative life, each university to transfer to the State Treasurer no later than October 1st following the close of the fiscal year in an amount that is prescribed in statute.
21. Defines net income and expenses related to individual agreements.
University Revenues (Sec. 7)
22. Requires each university to retain all revenues included in its operating budget adopted by ABOR instead of remitting those monies to the State Treasurer.
23. Requires university tuition and fees to be deposited in subaccounts in accordance with statute.
Arizona Financial Aid Trust
24. Allows each dollar raised through the surcharge on student registration fees for the Arizona Financial Aid Trust to be matched by less than $2 appropriated by the Legislature. (Sec. 8)
25. Specifies that the Financial Aid Trust Fund must also consist of monies deposited from a university's licensure agreement, royalty agreement, or agreement for the sale or transfer of intellectual property developed by that university. (Sec. 2)
Miscellaneous
26. Repeals statute related to Arizona State University's distribution of licensing and patent income. (Sec. 3)
27. Makes technical and conforming changes.
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31. Fifty-fourth Legislature HB 2750
32. First Regular Session Version 4: Transmitted
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