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S.B. 40

             1     

CESAR CHAVEZ SCHOLARSHIP PROGRAM

             2     
2004 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: James M. Evans

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies a financial aid program for students who attend postsecondary
             9      education institutions in Utah.
             10      Highlighted Provisions:
             11          This bill:
             12          .    creates the Cesar Chavez Scholarship Program within the Utah Centennial
             13      Opportunity Program for Education;
             14          .    specifies qualifications for a Cesar Chavez Scholarship and the amount of the
             15      scholarship;
             16          .    appropriates money for the Cesar Chavez Scholarship Program; and
             17          .    makes technical amendments.
             18      Monies Appropriated in this Bill:
             19          This bill appropriates as an ongoing appropriation subject to future budget constraints,
             20      $250,000 from the General Fund for fiscal year 2004-05 to the State Board of Regents.
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2004.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          53B-13a-102, as last amended by Chapter 402, Laws of Utah 1998
             26          53B-13a-104, as enacted by Chapter 302, Laws of Utah 1996
             27          53B-13a-105, as last amended by Chapter 402, Laws of Utah 1998


             28      ENACTS:
             29          53B-13a-106, Utah Code Annotated 1953
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 53B-13a-102 is amended to read:
             33           53B-13a-102. Definitions.
             34          As used in this chapter:
             35          (1) "Cost of attendance" means the total of costs payable to the institution, plus other
             36      direct educational expenses and transportation and living expenses while attending the
             37      institution, set forth in institutional cost-of-attendance budgets which meet criteria established
             38      by board rules.
             39          (2) (a) "Eligible student" means a financially needy [undergraduate] student who is:
             40          (i) unconditionally admitted to and enrolled at a Utah [public] postsecondary institution
             41      [or a Utah private nonprofit postsecondary institution which is accredited by a regional
             42      accrediting organization recognized by the board] on at least a half-time basis, as defined by
             43      the board, in an eligible postsecondary program leading to a defined education or training
             44      objective, as defined by the board[,]; and [who is]
             45          (ii) (A) a resident student under Section 53B-8-102 and rules of the board[.]; or
             46          (B) exempt from paying the nonresident portion of total tuition under Section
             47      53B-8-106 .
             48          (b) "Eligible student" does not include a graduate student.
             49          (3) "Federal poverty guideline" means the federal poverty measure issued each year by
             50      the U.S. Department of Health and Human Services in the Federal Register.
             51          [(3)] (4) "Financial aid" means grants or work-study stipends to financially needy
             52      students enrolled or accepted for enrollment at a Utah [public] postsecondary institution.
             53          [(4)] (5) "Financially needy student" means a [post high school] student [at a Utah
             54      public postsecondary institution] who demonstrates, on the basis of criteria established by the
             55      board, the financial inability, either through the student's parents or family, or personally, to
             56      meet all or a portion of the total cost of attendance at [the] an institution for any period of
             57      attendance as defined by the board.
             58          [(5)] (6) "Fiscal year" means the fiscal year of the state.


             59          [(6)] (7) "Program" means the Utah Centennial Opportunity Program for Education.
             60          [(7)] (8) "Utah [public] postsecondary institution" or "institution" means:
             61          (a) an institution of higher education listed in [Subsection] Section 53B-1-102 [(1)];
             62      [and] or
             63          (b) [any applied technology center operated by the state or a political subdivision of the
             64      state which provides postsecondary education and training] a Utah private, nonprofit
             65      postsecondary institution that is accredited by a regional accrediting organization recognized by
             66      the board.
             67          Section 2. Section 53B-13a-104 is amended to read:
             68           53B-13a-104. Guidelines for administration of the program.
             69          (1) The board shall use the guidelines set forth in this section to develop and
             70      administer the program.
             71          (2) The board may design either a centralized or decentralized basis for award of grants
             72      and payment of stipends to eligible students, depending on its evaluation of the administrative
             73      capabilities of the institutions attended by the students.
             74          (3) The board may, based on an analysis of costs for institutional administration of the
             75      program, provide from program monies an institutional administrative costs allowance of up to
             76      3.1% of the total value of the grants and stipends awarded for eligible students at the institution
             77      for a fiscal year.
             78          (4) (a) The board may provide for both need-based grant awards and need-based
             79      work-study stipends to be paid from the monies appropriated and made available for the
             80      program, with need-based work-study stipends given strong emphasis.
             81          (b) The need-based grants or work-study stipends are the only forms of student
             82      financial aid for which program monies may be used.
             83          (5) The board shall:
             84          (a) provide for coordination of program awards with all existing programs of student
             85      financial aid, including all federal programs, except those specifically dedicated to a particular
             86      institution by the donor; and
             87          (b) design the program to complement existing federal, state, and institutional
             88      programs.
             89          (6) Rules and administrative requirements for the program shall be developed in


             90      consultation with the institutions [of postsecondary education], with appropriate state agencies
             91      and private sector organizations regarding the work-study component, and with other interested
             92      groups which may be able to contribute to the effectiveness of program development and
             93      implementation.
             94          (7) The board shall design the program to utilize the packaging approach by which
             95      institutions currently combine loans, grants, employment, and family and individual
             96      contributions toward financing the cost of attendance at postsecondary institutions.
             97          (8) The program shall require use of an appropriate need analysis system, which may
             98      be the same system used for determining eligibility under federal student financial aid
             99      programs, in determining financial need for the awarding of program grants and work-study
             100      stipends.
             101          (9) In no case may the amount of program grants or work-study stipends or both, with
             102      other financial aid from any source, both need and merit-based, and with expected family and
             103      personal contributions, exceed the cost of attendance for the student at the institution for a
             104      fiscal year.
             105          (10) Criteria for awards of program funds to institutions and students shall be based on
             106      assisting only the most financially needy eligible students.
             107          (11) The board shall establish annually the minimum and maximum amounts for
             108      program grants and work-study stipends for the fiscal year.
             109          (12) Grants and work-study stipends shall be awarded on an annual basis but paid one
             110      quarter or semester at a time, with payments for quarters or semesters after the first term
             111      contingent upon the student's maintaining satisfactory progress as defined by the institution in
             112      published policies or rules.
             113          (13) All awards under the program shall be made without regard to an applicant's race,
             114      creed, color, religion, sex, or ancestry.
             115          (14) Students receiving financial aid under the program are required to apply the
             116      monies toward the cost of attendance at the institution attended, as established pursuant to
             117      board rules.
             118          (15) The board shall adopt and publish rules which implement this [section] chapter
             119      and any other provisions the board reasonably determines necessary to ensure sound fiduciary
             120      administration of program monies and accomplishment of the program objective to assist


             121      financially needy state residents to achieve access to and persistence in postsecondary
             122      education and training.
             123          (16) The board may require annual participation agreements from eligible
             124      postsecondary institutions, which shall include an agreement to:
             125          (a) provide information needed by the board to administer the program[, for
             126      compliance];
             127          (b) comply with program rules in recommending or awarding program grants and
             128      work-study stipends to individual students[, for submission of];
             129          (c) submit annual reports as required by the board[,]; and [for cooperation]
             130          (d) cooperate in program reviews and financial audits as the board may determine to be
             131      necessary.
             132          (17) The board, with cooperation from participating institutions, shall:
             133          (a) establish a research [data base] database;
             134          (b) conduct appropriate research into the effects of student financial aid on students'
             135      access to and persistence in postsecondary education and training; and
             136          (c) utilize the research in planning and modifying the design of the program.
             137          (18) The board shall report annually to the governor and the Legislature on:
             138          (a) the administration of the program;
             139          (b) utilization of program monies;
             140          (c) benefits in fulfillment of the purposes established for the program; and
             141          (d) any recommendations for program modification, including recommended funding
             142      levels.
             143          (19) The board shall regularly provide information to students on employment
             144      opportunities in occupational and professional training and degree programs as identified
             145      through annual marketplace surveys.
             146          Section 3. Section 53B-13a-105 is amended to read:
             147           53B-13a-105. Disbursal of financial aid -- Additional resources.
             148          [(1) (a) There is appropriated from the General Fund for fiscal year 1998-99, $125,000
             149      to the State Board of Regents to expand the student financial aid program authorized under this
             150      chapter to eligible students admitted and enrolled at a Utah private nonprofit postsecondary
             151      institution under Subsection 53B-13a-102 (2).]


             152          [(b) The appropriation under Subsection (1)(a) is to supplement the line item
             153      appropriation made in the appropriations act for funding of the program.]
             154          [(2)] (1) The board shall allocate the monies available under the program to each
             155      [eligible] Utah postsecondary institution in the same proportion as the amount of Pell Grant
             156      monies received by the institution for resident [under graduate] undergraduate students during
             157      the most recently completed fiscal year that Pell Grants were given bears to the total Pell Grant
             158      monies received by all [eligible] Utah postsecondary institutions for resident [under graduate]
             159      undergraduate students during that same year.
             160          [(3)] (2) The board may accept grants, gifts, bequests, and devises of real and personal
             161      property from any source for the purpose of granting student financial aid in addition to that
             162      funded by the state.
             163          Section 4. Section 53B-13a-106 is enacted to read:
             164          53B-13a-106. Cesar Chavez Scholarship Program.
             165          (1) The Cesar Chavez Scholarship Program is created within the Utah Centennial
             166      Opportunity Program for Education.
             167          (2) To qualify for a Cesar Chavez Scholarship, a student must:
             168          (a) be an eligible student as defined in Section 53B-13a-102 ; and
             169          (b) have a family income less than 200% of the federal poverty guideline for the family
             170      size.
             171          (3) (a) Cesar Chavez Scholarships shall be awarded in the following amounts:
             172          (i) if the scholarship recipient is enrolled at a public institution, an amount not to
             173      exceed the total of resident tuition and general fee charges; or
             174          (ii) if the scholarship recipient is enrolled at a private, nonprofit institution, an amount
             175      not to exceed the total of tuition and general fee charges.
             176          (b) A scholarship for a student enrolled at a private, nonprofit institution may not
             177      exceed the maximum program grant established by the board for the fiscal year.
             178          (4) The board shall allocate at least 10% of the money appropriated to the board for the
             179      Utah Centennial Opportunity Program in Education for the Cesar Chavez Scholarship Program.
             180          Section 5. Appropriation.
             181          (1) As an ongoing appropriation subject to future budget constraints, there is
             182      appropriated from the General Fund for fiscal year 2004-05, $250,000 to the State Board of


             183      Regents for the Cesar Chavez Scholarship Program.
             184          (2) The money for the Cesar Chavez Scholarship Program appropriated in Subsection
             185      (1) is in addition to the scholarship program's allocation of monies appropriated for the Utah
             186      Centennial Opportunity Program in Education, as provided by Section 53B-13a-106.
             187          Section 6. Effective date.
             188          This bill takes effect on July 1, 2004.




Legislative Review Note
    as of 1-8-04 10:33 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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