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S.B. 107





Chief Sponsor: Wayne L. Niederhauser

House Sponsor: Gregory H. Hughes

             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
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 53B-13a-101 is amended to read:

             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

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