SB1453 - 551R

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

Section 1. Section 15-1401, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1401. Definitions

In this chapter, unless the context otherwise requires:

1. "Accredited" means accredited by a regional accrediting agency recognized by the United States department of education or by the council on postsecondary accreditation.

2. "Additional short-term classes" means those classes that are not in session on the forty-fifth day of the fall or spring semester, that commence at various times during the fiscal year and that are offered over a period of less than sixteen weeks.

3. "Budget year" means the fiscal year for which the community college district is budgeting and that immediately follows the current year.

4. "Community college" means an educational institution that is operated by a district board and that provides a program not exceeding two of not more than four years' training in the arts, sciences and humanities beyond the twelfth grade of the public or private high school course of study or vocational education, including terminal courses of a technical and vocational nature and basic adult education courses.

5. "Community college tuition financing district" means a district that is organized pursuant to section 15-1409.

6. "Current year" means the fiscal year in which the community college district is operating.

7. "District" means a community college district that is established pursuant to sections 15-1402 and 15-1403 or section 15-1402.01 and that is a political subdivision of this state and, unless otherwise specified, includes community college tuition financing districts established pursuant to section 15-1409.

8. "District board" means the community college district governing board.

9. "Full-time equivalent student" means student enrollment for fifteen community college semester credit units per semester.

10. "Open entry, open exit classes" means those classes in which students enter or exit based on mastery of specified competencies and that commence at various times during the fiscal year.

11. "Operational expense budget" means the budget as adopted by the district board pursuant to section 15-1461.

12. "Operational expenses" means the administration, instruction, operation of community college plant, maintenance of community college plant, fixed charges and contingencies incurred in the operation of a district, exclusive of excluding all capital outlay items, special levies, auxiliary enterprise funds, restricted funds and bond service items.

13. "Provisional community college district" means a community college district that was organized pursuant to section 15-1409 and that began operations before January 1, 2015. END_STATUTE

Sec. 2. Section 15-1444, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1444. General powers and duties of district boards

A. Except as otherwise provided, the each district board shall:

1. Maintain each community college under its jurisdiction for a period of not less than at least eight months in each year and, if the funds monies of the district are sufficient, maintain each community college for a longer period.

2. Adopt policies in a public forum to offer programs that meet the educational needs of the population served by the community college.

3. Enforce the courses of study prescribed by the district board.

4. Visit each community college under its jurisdiction and examine carefully into its management, conditions and needs.

5. Exclude from each community college all books, publications or papers of a sectarian, partisan or denominational character intended for use as textbooks.

6. Appoint and employ a chancellor or chancellors, vice-chancellors vice chancellors, a president or presidents, vice presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees it deems necessary. The district board may enter into employment contracts with chancellors, vice-chancellors vice chancellors and presidents for a duration of more than one year but not more than five years.

7. Determine the salaries of persons it appoints and employs. A district may not compensate an employee for work performed on behalf of an elected employee representative organization and may not provide more favorable terms and conditions of employment to any employee because that individual belongs to an elected employee representative organization.

8. Remove any officer or employee if in its judgment the interests of education in this state require the removal.

9. Award degrees, certificates and diplomas on the completion of courses and curricula as it deems appropriate.

10. Appoint or employ, if it deems necessary, police officers who shall have the authority and power of peace officers. The police officers who have received a certificate from the Arizona peace officer standards and training board are eligible for membership in and benefits under either title 38, chapter 5, article 2 or the public safety personnel retirement system under title 38, chapter 5, article 4.

11. Determine the location within the district of a community college and purchase, receive, hold, make and take leases of, sell and convey real or personal property for the benefit of the community colleges under its jurisdiction.

12. Obtain insurance or be self-insured, or a combination of insurance and self-insurance, against loss, to the extent it is determined necessary on community college buildings of the district. The local district shall have an insurable interest in the buildings.

B. The district board may:

1. Administer trusts declared or created for the district and receive by gift or devise and hold in trust or otherwise property wheresoever located, and if not otherwise provided, dispose of the property for the benefit of the district.

2. Lease real property, as lessor or as lessee. If a district is the lessee, the lease may contain an option to purchase the property. The district board may adopt policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to lease property under this paragraph. Any delegation by the district board pursuant to this paragraph may be rescinded in whole or in part at any time by the district board.

3. Sue and be sued.

4. Contract. The district board may adopt such policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to contract under this paragraph. Any delegation of authority under this paragraph may be rescinded by the district board at any time in whole or in part.

5. Construct, remodel and repair buildings.

6. In conjunction with other districts, establish policies for procurement of procuring goods and services.

7. Provide a plan or plans for employee benefits, which may include optional retirement programs pursuant to section 15-1451, subsection A, which allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.

8. Accept grants or donations of monies from the United States or any of its agencies, departments or officers, this state, political subdivisions of this state, tribal governments, school districts, special taxing districts, persons, corporations, foundations or associations. The district board shall deposit the monies into a specific fund or account and shall administer the monies in accordance with the purpose of the grant or donation with specific policies or restrictions as described or stipulated in the grant or donation. In the case of personal property granted or donated to or for the benefit of a community college district, the district board shall immediately transfer possession and ownership of the property to the designated district. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

9. Enter into intergovernmental agreements or contracts pursuant to section 11-952.01 for participation in programs offered by public agency pools or separately contract with a trustee or board of trustees that provides a common self-insurance program with pooled funds and risks pursuant to section 15-382, subsection B, paragraph 2. The district board is not required to engage in competitive procurement in order to make the decision to participate in these programs.

10. Name a building or a group of buildings that is located on a community college campus on behalf of a person or entity that has made a significant contribution of monies or other property to the community college or the community college district.

11. Enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit-sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through community college district research. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

12. Enter into an intergovernmental agreement pursuant to section 15-1747 to participate in a reciprocity agreement subject to the terms of the reciprocity agreement.

13. Engage in entrepreneurial and commercial activities. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

14. Collect auxiliary fees, including cafeteria fees, food service fees, bookstore fees and dormitory fees. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

15. Provide goods and services pursuant to a contract with a political subdivision of this state or with a tribal government. Monies received pursuant to this paragraph are not considered local revenues for the purposes of article IX, section 21, Constitution of Arizona.

16. For a community college in a county with a population of seven hundred fifty thousand persons or less, offer four-year baccalaureate degrees that are accredited by a regional accreditation agency approved by the united states department of education.

17. For a community college in a county with a population of more than seven hundred fifty thousand persons, offer four-year baccalaureate degrees that are accredited by a regional accreditation agency approved by the united states department of education as follows:

(a) For the first four years that a community college offers four-year baccalaureate degrees, the community college may not offer more than five percent of its total number of degree and certification offerings for four-year baccalaureate degrees. For the fifth and subsequent years that a community college offers four-year baccalaureate degrees, the community college may not offer more than ten percent of its total number of degree and certification offerings for four-year baccalaureate degrees.

(b) Tuition per credit hour for the third and fourth years of a four-year baccalaureate program may not exceed one hundred fifty percent of the tuition per credit hour of any other district program.

C. If a district acquires real or personal property, whether by purchase, exchange, condemnation, gift or otherwise, the district shall pay to the county treasurer any taxes on the property that were unpaid as of the date of acquisition, including penalties and interest. The lien for unpaid delinquent taxes, penalties and interest on property acquired by the district:

1. Is not abated, extinguished, discharged or merged in the title to the property.

2. Is enforceable in the same manner as other delinquent tax liens.

D. In a district whose boundaries encompass a vehicle emissions control area as defined in section 49-541, the district board shall require all out-of-county and out-of-state students to sign an affidavit at the time of course registration that the student's vehicle meets the requirements of section 49-542. The district board on property under its jurisdiction within a vehicle emissions control area shall prohibit the parking of those vehicles that fail to comply with section 49-542.

E. A community college district and a career technical education district governing board may enter into agreements for the provision of to provide administrative, operational and educational services and facilities.

F. Each district may establish a program for the exchange of students between the community colleges under its jurisdiction and colleges and universities located in Sonora, Mexico. The program may provide for in-state tuition for Sonora students at the community colleges under the jurisdiction of the district in exchange for similar tuition provisions for Arizona students enrolled or seeking enrollment in Sonora colleges and universities. The community colleges may work in conjunction with the Arizona-Mexico commission in the governor's office to coordinate recruitment and admissions activities to provide for in-state tuition for up to fifty Sonora students at the community colleges under the jurisdiction of the district in exchange for similar tuition provisions for up to fifty total Arizona students enrolled or seeking enrollment in Sonora colleges and universities.

G. Each district shall facilitate transfer articulation coordination pursuant to section 15-1824. END_STATUTE

Sec. 3. Title 15, chapter 12, article 3, Arizona Revised Statutes, is amended by adding section 15-1444.01, to read:

START_STATUTE15-1444.01. Baccalaureate degree programs; reporting requirements; definitions

A. Each community college that offers a baccalaureate degree program pursuant to section 15-1444, subsection b, paragraph 16 or 17 must meet both of the following:

1. All applicable regional accreditation requirements.

2. All applicable state licensure requirements.

B. When determining whether to offer a baccalaureate degree program pursuant to section 15-1444, subsection B, paragraph 16 or 17, the district board shall make its determination based on all of the following criteria:

1. Whether the community college can demonstrate both:

(a) Workforce need for the baccalaureate degree program in the region served by the community college.

(b) Student demand for the baccalaureate degree program.

2. A financial analysis that shows the short-term and long-term impacts to initiate and sustain the baccalaureate degree program, including all of the following:

(a) The source of monies.

(b) Facilities requirements.

(d) Personnel.

(e) Administrative costs.

3. Whether the baccalaureate degree program would unnecessarily duplicate the degree programs offered by other institutions of higher education in this state.

4. The ability of the community college to support the baccalaureate degree program with student enrollment and the adequacy of the community college's facilities, faculty, administration, libraries and other resources.

C. A community college that is within a community college district located in the same county as the main campus of any public university and that is developing a baccalaureate degree program shall notify the public university whose main campus is located in the same county as the community college district at least sixty days before submitting the report prescribed in subsection D of this section to the district board. Within thirty days after the date the community college submits the notice, the public university may provide a written response to the district board for its review. This subsection does not allow a public university to prevent a community college from offering a baccalaureate degree program.

D. Before the district board authorizes a community college to offer a baccalaureate degree program pursuant to section 15-1444, subsection b, paragraph 16 or 17, the community college must submit a report to the district board that includes all of the following information:

1. The name of the proposed academic degree program.

2. The academic department that will offer the proposed degree program.

3. Whether the instructional modality would be immersion or online, or both.

4. The total credit hours necessary to complete the degree program.

5. The proposed inception term.

6. A brief description of the proposed degree program.

7. A learning outcomes and assessment plan, including:

(a) Concepts.

(b) Competencies.

8. The projected enrollment by year for the first three years the degree program is offered.

9. Evidence of market demand for the proposed degree program.

10. Similar degree programs offered at other institutions of higher education in this state.

11. The new resources required, including a long-term plan for faculty recruitment that indicates the ability to pay the increased salaries of doctoral faculty and identifies recruitment strategies for new faculty.

12. Any written responses provided by a public university pursuant to subsection C of this section.

E. Each community college that offers a baccalaureate degree program pursuant to section 15-1444, subsection b, paragraph 16 or 17 shall submit a report to the joint legislative audit committee on or before October 1 of the fifth year after initially offering that baccalaureate degree program. The report shall review the first five years of the baccalaureate degree program at the community college and shall include all of the following:

1. The number of:

(a) All baccalaureate degree programs implemented at the community college.

(b) Applicants to each baccalaureate degree program.

(d) Persons who are enrolled in each baccalaureate degree program.

(e) Persons who received degrees from each baccalaureate degree program.

2. The costs of each baccalaureate degree program, including cost per degree and the funding sources that were used to finance each degree program.

3. Current trends in workforce demands that require four-year degrees in each specific baccalaureate degree program offered.

4. Current completion and continuation rates, if available, for each cohort of students participating in each baccalaureate degree program.

5. Information on the impact of each baccalaureate degree program on underserved and underprepared students.

6. The extent to which each baccalaureate degree program fulfills identified workforce needs for new baccalaureate degree programs.

7. Information on the places of employment of students and the subsequent job placement of graduates of each baccalaureate degree program.

8. For each baccalaureate degree program, The costs to students, the amount of financial aid offered and the student debt levels of graduates.

9. Time-to-degree rates and completion rates for each baccalaureate degree program.

F. Each community college district that offers a baccalaureate degree program shall include all of the following in its annual report required by section 15-1427:

1. The total number of students pursuing a baccalaureate degree at the community college district pursuant to this section.

2. The total number of baccalaureate degrees completed at the community college district.

3. Workforce data showing demand for the baccalaureate degree programs offered at the community college district.

4. The average cost of tuition per credit hour for the baccalaureate degrees offered at the community college district.

G. For the purposes of this section:

1. "Main campus" means the central location of the public university's library system and computer center.

2. "Public university" means a university under the jurisdiction of the Arizona Board of Regents. END_STATUTE

Sec. 4. Section 15-1469, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1469. Attendance of nonresident state students; payment of cost by county of residence

A. The district may admit students from any part of this state that is not a part of an established community college district on the same conditions as residents.

B. The county of the student's residence shall reimburse the district as provided in this subsection. The amount of reimbursement to each community college district from each county that is not a part of an organized community college district shall be determined as follows:

1. For students attending classes within the established community college district:

(a) Determine the number of full-time equivalent students attending classes within the district from the county for the year preceding the current year.

(b) Determine the operational expenses of the district for the current year, excluding direct and indirect costs of noncredit courses and direct and indirect costs of 300 AND 400 LEVEL COMMUNITY COLLEGE BACCALAUREATE DEGREE COURSES.

(d) Subtract the amount of state aid received for the current year determined in subdivision (c) of this paragraph from the amount of operational expenses for the current year determined in subdivision (b) of this paragraph.

(e) Determine the number of full-time equivalent students enrolled in the district for the current year.

(f) Divide the amount determined in subdivision (d) of this paragraph by the number of full-time equivalent students determined in subdivision (e) of this paragraph.

(g) Multiply the amount determined in subdivision (f) of this paragraph by the average number of full-time equivalent students for the county determined as provided in subdivision (a) of this paragraph.

The resulting amount is the amount of reimbursement to the district from the county for the budget year for students attending classes within the established community college district.

2. For students attending classes offered by the district within the county pursuant to section 15-1470, the amount specified in the intergovernmental agreement is the amount of reimbursement to the district from the county for the budget year for students attending classes within the county.

C. On or before May 15 of each year, the staff of the joint legislative budget committee shall:

1. Determine the amount of reimbursement to each district from each county pursuant to subsection B, paragraph 1 of this section.

2. Notify the board of supervisors of each county of the amount it shall reimburse to each district pursuant to subsection B, paragraph 1 of this section for the budget year.

3. Notify each community college district eligible to receive reimbursement of the amount of reimbursement from each county pursuant to subsection B, paragraph 1 of this section for the budget year.

D. On or before November 15 and May 15 of each year, the board of supervisors shall draw warrants on the county treasurer in favor of the community college district for half of the amount due pursuant to subsection B of this section. The board of supervisors shall:

1. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to an intergovernmental agreement for extension courses as provided in section 15-1470.

2. Pay monies from the county general fund or levy a community college reimbursement levy pursuant to section 42-17203 for the amount of reimbursement pursuant to subsection B, paragraph 1 of this section.

E. Notwithstanding subsection D of this section, a county and a community college district may specify by intergovernmental agreement that the amount of reimbursement due from the county be reduced by the value of in-kind contributions made by the county to the district.

F. For the purposes of subsection B, paragraph 1 of this section, full-time equivalent students are determined in the same manner prescribed by section 15-1466.01.

Sec. 5. Legislative findings

The legislature finds and declares:

1. Four-year degrees are of increasing importance in enabling individuals to qualify for and obtain jobs.

2. It is a priority in this state to afford the citizens in this state, particularly those in rural areas of this state, greater access to higher education.

3. Community colleges can help fill the gaps in this state's higher education system by granting baccalaureate degrees in order to meet the growing demand for a skilled workforce.

4. It is therefore in the interest of this state to enable community colleges to seek authorization to offer baccalaureate degrees.

5. Baccalaureate degree programs offered pursuant to this act do not otherwise alter the role and mission of a public community college.