S.B. 107

1

HIGHER EDUCATION SUCCESS STIPEND PROGRAM
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne L. Niederhauser
5 House Sponsor: Gregory H. Hughes
6
7 LONG TITLE
8 General Description:
9 This bill replaces the Utah Centennial Opportunity Program for Education with the
10 Success Stipend Program within the State System of Higher Education.
11 Highlighted Provisions:
12 This bill:
13 . renames the Utah Centennial Opportunity Program for Education as the Success
14 Stipend Program and modifies provisions, including:
15 . modifying definitions;
16 . modifying findings of the Legislature;
17 . modifying reporting requirements;
18 . prohibiting the Board of Regents from using program money for administrative
19 purposes; and
20 . repealing the Cesar Chavez Scholarship Program within the Utah Centennial
21 Opportunity Program for Education; and
22 . makes technical changes.
23 Money Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 This bill provides an immediate effective date.
27 Utah Code Sections Affected:

28 AMENDS:
29 53B-13a-101, as enacted by Laws of Utah 1996, Chapter 302
30 53B-13a-102, as last amended by Laws of Utah 2004, Chapter 10
31 53B-13a-103, as enacted by Laws of Utah 1996, Chapter 302
32 53B-13a-104, as last amended by Laws of Utah 2004, Chapter 10
33 REPEALS:
34 53B-13a-106, as enacted by Laws of Utah 2004, Chapter 10
35
36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 53B-13a-101 is amended to read:
38 CHAPTER 13a. SUCCESS STIPEND PROGRAM ACT
39 53B-13a-101. Title.
40 This chapter is known as the "[Utah Centennial Opportunity Program for Education]
41 Success Stipend Program Act."
42 Section 2. Section 53B-13a-102 is amended to read:
43 53B-13a-102. Definitions.
44 As used in this chapter:
45 (1) (a) "Cost of attendance" means [the total of] the estimated costs associated with
46 attending an institution, as established by the institution in accordance with board policies.
47 (b) "Cost of attendance" includes costs payable to the institution, [plus] other direct
48 educational expenses [and], transportation, and living expenses while attending the institution[,
49 set forth in institutional cost-of-attendance budgets which meet criteria established by board
50 rules].
51 (2) (a) "Eligible student" means a financially needy student who is:
52 (i) unconditionally admitted to and enrolled at a Utah postsecondary institution on at
53 least a half-time basis, as defined by the board, in an eligible postsecondary program leading to
54 a defined education or training objective, as defined by the board; [and]
55 (ii) making satisfactory academic progress, as defined by the institution in published
56 policies or rules, toward an education or training objective; and
57 [(ii)] (iii) (A) a resident student under Section 53B-8-102 and rules of the board; or
58 (B) exempt from paying the nonresident portion of total tuition under Section

59 53B-8-106 .
60 (b) "Eligible student" does not include a graduate student.
61 [(3) "Federal poverty guideline" means the federal poverty measure issued each year by
62 the U.S. Department of Health and Human Services in the Federal Register.]
63 [(4) "Financial aid" means grants or work-study stipends to financially needy students
64 enrolled or accepted for enrollment at a Utah postsecondary institution.]
65 [(5)] (3) "Financially needy student" means a student who demonstrates[, on the basis
66 of criteria established by the board,] the financial inability[, either through the student's parents
67 or family, or personally,] to meet all or a portion of the [total] cost of attendance at an
68 institution for any period of attendance as defined by the board, after considering the student's
69 expected family contribution.
70 [(6)] (4) "Fiscal year" means the fiscal year of the state.
71 [(7)] (5) "Program" means the [Utah Centennial Opportunity] Success Stipend Program
72 [for Education].
73 [(8)] (6) "Utah postsecondary institution" or "institution" means:
74 (a) an institution of higher education listed in Section [ 53B-1-102 ] 53B-2-101 ; or
75 (b) a Utah private, nonprofit postsecondary institution that is accredited by a regional
76 accrediting organization recognized by the board.
77 Section 3. Section 53B-13a-103 is amended to read:
78 53B-13a-103. Establishment of the Success Stipend Program.
79 (1) The Legislature finds that [the]:
80 (a) the prosperity, economic success, and general welfare [and well-being] of the
81 people of Utah and of the state are directly related to the educational levels and skills of the
82 citizens of the state[,]; and [that limited financial aid for students with demonstrated financial
83 need to help finance costs of attendance at Utah public postsecondary institutions]
84 (b) financial assistance, to bridge the gap between a financially needy student's
85 resources and the cost of attendance at a Utah postsecondary institution, is a necessary
86 component for ensuring access to postsecondary education and training [as the state enters its
87 second century of statehood].
88 (2) There is created the [Utah Centennial Opportunity] Success Stipend Program [for
89 Education] to provide [this limited] financial assistance to students who, after utilizing family

90 and personal resources, federal assistance, and scholarships, demonstrate financial need.
91 Section 4. Section 53B-13a-104 is amended to read:
92 53B-13a-104. Guidelines for administration of the program.
93 (1) The board shall use the guidelines set forth in this section to develop and
94 administer the program.
95 [(2) The board may design either a centralized or decentralized basis for award of
96 grants and payment of stipends to eligible students, depending on its evaluation of the
97 administrative capabilities of the institutions attended by the students.]
98 [(3) The board may, based on an analysis of costs for institutional administration of the
99 program, provide from program money an institutional administrative costs allowance of up to
100 3.1% of the total value of the grants and stipends awarded for eligible students at the institution
101 for a fiscal year.]
102 [(4)] (2) (a) The board [may] shall allocate money appropriated for the program to
103 institutions to provide for [both] either need-based [grant awards and] grants or need-based
104 work-study stipends [to be paid from the money appropriated and made available for the
105 program, with], giving strong emphasis to need-based work-study stipends [given strong
106 emphasis].
107 (b) [The need-based] Need-based grants or need-based work-study stipends are the
108 only forms of student financial [aid] assistance for which program money may be used.
109 (c) The board may not use program money for administrative costs or overhead.
110 [(5) The board shall:]
111 [(a) provide for coordination of program awards with all existing programs of student
112 financial aid, including all federal programs, except those specifically dedicated to a particular
113 institution by the donor; and]
114 [(b) design the program to complement existing federal, state, and institutional
115 programs.]
116 [(6) Rules and administrative requirements for the program shall be developed in
117 consultation with the institutions, with appropriate state agencies and private sector
118 organizations regarding the work-study component, and with other interested groups which
119 may be able to contribute to the effectiveness of program development and implementation.]
120 (d) An institution may not use more than 3% of its program money for administrative

121 costs or overhead.
122 [(7)] (3) The board shall design the program to utilize [the] a packaging approach [by
123 which institutions currently combine] that ensures that institutions combine loans, grants,
124 employment, and family and individual contributions toward financing the cost of attendance at
125 a postsecondary [institutions] institution.
126 [(8) The program shall require use of]
127 (4) The board shall:
128 (a) use an appropriate need analysis system[, which may be the same system used for
129 determining eligibility under federal student financial aid programs, in determining] to
130 determine a student's financial need for the purpose of awarding [of] a program [grants and]
131 grant or work-study [stipends.] stipend; and
132 [(9) In no case may the amount of program grants or work-study stipends or both, with]
133 (b) base the criteria for awarding program funds to an institution or eligible student on
134 assisting only the most financially needy students.
135 (5) The total sum of a program grant, a work-study stipend, other financial aid from
136 any source, [both need and merit-based,] and [with] the expected family and personal
137 [contributions,] contribution, may not exceed the cost of attendance for [the] an eligible student
138 at [the] an institution for a fiscal year.
139 [(10) Criteria for awards of program funds to institutions and students shall be based
140 on assisting only the most financially needy eligible students.]
141 [(11)] (6) The board shall establish annually the minimum and maximum amounts for
142 a program [grants] grant and a work-study [stipends] stipend for the fiscal year.
143 [(12) Grants and work-study stipends shall be awarded]
144 (7) An institution shall award a program grant or work-study stipend on an annual basis
145 but [paid] distribute the money one quarter or semester at a time, with [payments for quarters
146 or semesters after the first term] continuing awards contingent upon the [student's] eligible
147 student maintaining satisfactory academic progress as defined by the institution in published
148 policies or rules.
149 [(13) All awards under the program shall be made without regard to an applicant's race,
150 creed, color, religion, sex, or ancestry.]
151 (8) An institution shall award all program money without regard to an applicant's race,

152 creed, color, religion, sex, or ancestry.
153 [(14)] (9) Students receiving financial [aid] assistance under the program are required
154 to apply the money toward the cost of attendance at the institution attended, as established
155 pursuant to board rules.
156 [(15)] (10) The board shall adopt [and publish rules which] policies to implement this
157 chapter [and any other provisions the board reasonably determines necessary] and to ensure
158 sound fiduciary administration of program money [and accomplishment of the program
159 objective to assist financially needy state residents to achieve access to and persistence in
160 postsecondary education and training] to accomplish program objectives.
161 [(16)] (11) The board may require [annual] a participation [agreements] agreement
162 from an eligible postsecondary [institutions] institution, which shall include an agreement to:
163 (a) provide information needed by the board to administer the program;
164 (b) comply with program rules [in recommending or awarding program grants and
165 work-study stipends to individual students];
166 (c) submit annual reports as required by the board; and
167 (d) cooperate in program reviews and financial audits as the board may determine to be
168 necessary.
169 [(17) The board, with cooperation from participating institutions, shall:]
170 [(a) establish a research database;]
171 [(b) conduct appropriate research into the effects of student financial aid on students'
172 access to and persistence in postsecondary education and training; and]
173 [(c) utilize the research in planning and modifying the design of the program.]
174 [(18)] (12) The board shall annually report [annually] program outcomes to the
175 governor and the [Legislature on] Legislature's Higher Education Appropriations
176 Subcommittee, including:
177 [(a) the administration of the program;]
178 [(b)] (a) utilization of program money[;], including the:
179 (i) number of program recipients at each institution; and
180 (ii) average amount of financial assistance provided;
181 [(c)] (b) benefits in fulfillment of the purposes established for the program; and
182 [(d)] (c) any recommendations for program modification, including recommended

183 funding levels.
184 [(19)] (13) The board shall regularly provide information to students on [employment
185 opportunities in occupational and] professional training and degree programs [as identified
186 through annual marketplace surveys] available in the state through online career and
187 educational exploration tools.
188 Section 5. Repealer.
189 This bill repeals:
190 Section 53B-13a-106, Cesar Chavez Scholarship Program.
191 Section 6. Effective date.
192 If approved by two-thirds of all the members elected to each house, this bill takes effect
193 upon approval by the governor, or the day following the constitutional time limit of Utah
194 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
195 the date of veto override.




Legislative Review Note
as of 1-17-11 6:48 AM

Office of Legislative Research and General Counsel