USA Statutes : arizona
Title : Education
Chapter : PROVISIONS RELATING TO BOTH COMMUNITY COLLEGES AND UNIVERSITIES
15-1801 Definitions
In this article, unless the context otherwise requires:
1. "Armed forces of the United States" means the army, the navy, the air force, the
marine corps, the coast guard, the commissioned corps of the United States public health
services, the national oceanographic and atmospheric administration, the national guard
and any military reserve unit of any branch of the armed forces of the United States.
2. "Continuous attendance" means enrollment at an educational institution in this
state as a full-time student, as such term is defined by the governing body of the
educational institution, for a normal academic year since the beginning of the period for
which continuous attendance is claimed. Such person need not attend summer sessions or
any other intersession beyond the normal academic year in order to maintain continuous
attendance.
3. "Domicile" means a person's true, fixed and permanent home and place of
habitation. It is the place where he intends to remain and to which he expects to return
when he leaves without intending to establish a new domicile elsewhere.
4. "Emancipated person" means a person who is neither under a legal duty of service
to his parent nor entitled to the support of such parent under the laws of this state.
5. "Parent" means a person's father or mother, or if one parent has custody, that
parent, or if there is no surviving parent or the whereabouts of the parents are unknown,
then a guardian of an unemancipated person if there are not circumstances indicating that
such guardianship was created primarily for the purpose of conferring the status of an
in-state student on such unemancipated person.

15-1802.01 County residency status; community college districts
A. Each community college district shall adopt policies regarding domicile
requirements that include, at a minimum, the following:
1. Each student shall have the question of domicile determined before the time of
registration and payment of fees. It is the responsibility of the student to register
under the correct domicile determination.
2. Enforcement of domicile requirements shall be the responsibility of the chief
executive officer of each community college district.
3. The chief executive officer of each community college district shall designate a
representative at each college or campus who is responsible for documents and who is
qualified to administer oaths as defined in section 41-311 in connection with statements
and testimony relative to student domicile status for tuition purposes.
4. In addition to the requirements prescribed in section 15-1802, subsection G, any
of the following may be used in determining a student's domicile:
(a) An income tax return.
(b) The place of graduation from high school.
(c) The source of financial support.
(d) Dependency as indicated on a federal income tax return.
(e) Ownership of real property.
(f) A notarized statement of a landlord or employer.
(g) Bank accounts.
B. Each community college district shall adopt policies regarding classification
procedures for a student for nonresident or resident tuition purposes that include, at a
minimum, the following:
1. In determining a student's classification, the college may consider all
evidence, written or oral, presented by the student and any other information received
from any source that is relevant to determining classification. The college may request
written sworn statements or sworn testimony of the student.
2. The decision as to classification shall be made by the representative designated
pursuant to subsection A, paragraph 3 of this section. In making the decision the
representative may consult with other college officials. Decisions by the representative
shall be made as soon as possible after all relevant information is acquired.
3. If the representative classifies the student as a nonresident for tuition
purposes, the decision shall be communicated to the student by mail to the most recent
address furnished to the college. If the student is classified as a nonresident for
tuition purposes, the student must make satisfactory provision for payment of nonresident
tuition and other charges.
C. Each community college district shall adopt a review and appeals process for
students contesting a domicile decision by the college.
D. An individual domiciled in this state, but not in a community college district,
shall be required to sign a notarized statement as to county residency stating that the
individual has resided in the county for at least fifty days before the first day of
classes.

15-1802 In-state student status
A. Except as otherwise provided in this article no person having a domicile
elsewhere than in this state is eligible for classification as an in-state student for
tuition purposes.
B. A person is not entitled to classification as an in-state student until the
person is domiciled in this state for one year, except that a person whose domicile is in
this state is entitled to classification as an in-state student if the person meets one
of the following requirements:
1. The person's parent's domicile is in this state and the parent is entitled to
claim the person as an exemption for state and federal tax purposes.
2. The person is an employee of an employer that transferred the person to this
state for employment purposes or the person is the spouse of such an employee.
3. The person is an employee of a school district in this state and is under
contract to teach on a full-time basis or is employed as a full-time noncertified
classroom aide at a school within that school district. For the purposes of this
paragraph, the person is eligible for classification as an in-state student only for
courses necessary to complete the requirements for certification by the state board of
education to teach in a school district in this state. No member of the person's family
is eligible for classification as an in-state student if the person is eligible for
classification as an in-state student pursuant to this paragraph, unless the family
member is otherwise eligible for classification as an in-state student pursuant to this
section.
4. The person's spouse has established domicile in this state for at least one year
and has demonstrated intent and financial independence and is entitled to claim the
student as an exemption for state and federal tax purposes or the person's spouse was
temporarily out of state for educational purposes, but maintained a domicile in this
state. If the person is a noncitizen, the person must be in an eligible visa status
pursuant to federal law to classify as an in-state student for tuition purposes.
C. The domicile of an unemancipated person is that of the person's parent.
D. Any unemancipated person who remains in this state when the person's parent, who
had been domiciled in this state, removes from this state is entitled to classification
as an in-state student until attainment of the degree for which currently enrolled, as
long as the person maintains continuous attendance.
E. A person who is a member of the armed forces of the United States and who is
stationed in this state pursuant to military orders or who is the spouse or a dependent
child as defined in section 43-1001 of a person who is a member of the armed forces of
the United States and who is stationed in this state pursuant to military orders is
entitled to classification as an in-state student. The student, while in continuous
attendance toward the degree for which currently enrolled, does not lose in-state student
classification.
F. A person who is a member of the armed forces of the United States or the spouse
or a dependent as defined in section 43-1001 of a member of the armed forces of the
United States is entitled to classification as an in-state student if the member of the
armed forces has claimed this state as the person's state of legal residence for at least
twelve consecutive months before the member of the armed forces, spouse or dependent
enrolls in a university under the jurisdiction of the ARIZONA board of regents or a
community college under the jurisdiction of a community college district governing board.
For the purposes of this subsection, the requirement that a person be domiciled in this
state for one year before enrollment to qualify for in-state student classification does
not apply.
G. A person who is honorably discharged from the armed forces of the United States
shall be granted immediate classification as an in-state student on honorable discharge
from the armed forces and, while in continuous attendance toward the degree for which
currently enrolled, does not lose in-state student classification if the person has met
all of the following requirements:
1. Declared ARIZONA as the person's legal residence with the person's branch of
service at least one year prior to discharge from the armed forces.
2. Demonstrated objective evidence of intent to be a resident of ARIZONA which, for
the purposes of this section, includes at least one of the following:
(a) An ARIZONA driver license.
(b) ARIZONA motor vehicle registration.
(c) Employment history in ARIZONA.
(d) ARIZONA voter registration.
(e) Transfer of major banking services to ARIZONA.
(f) Change of permanent address on all pertinent records.
(g) Other materials of whatever kind or source relevant to domicile or residency
status.
3. Filed an ARIZONA income tax return with the department of revenue during the
previous tax year.
H. A person who is a member of an Indian tribe recognized by the United States
department of the interior whose reservation land lies in this state and extends into
another state and who is a resident of the reservation is entitled to classification as
an in-state student.


15-1803 Alien in-state student status
An alien is entitled to classification as an in-state refugee student if such person
has been granted refugee status in accordance with all applicable laws of the United
States and has met all other requirements for domicile.

15-1804 Presumptions relating to student status; definition
A. Unless the contrary appears to the satisfaction of the registering authority of
the community college or university at which a student is registering, it shall be
presumed that:
1. No emancipated person has established a domicile in this state while attending
any educational institution in this state as a full-time student, as such status is
defined by subsection B for community college students or as defined by the ARIZONA board
of regents for university students, in the absence of a clear demonstration to the
contrary.
2. Once established, a domicile is not lost by mere absence unaccompanied by
intention to establish a new domicile.
3. A person who has been domiciled in this state immediately prior to becoming a
member of the armed forces of the United States shall not lose in-state status by reason
of such person's presence in any other state or country while a member of the armed
forces of the United States.
B. For the purposes of this section, "full-time student" means a community college
student who registers for at least twelve semester hours per semester at a community
college in this state. 15-1805.01 Admissions; enrollments; community colleges
A. Admissions to the community colleges in this state may be granted to any person
who meets any one of the following criteria:
1. Is a graduate of a high school that is accredited by a regional accrediting
association as defined by the United States office of education or approved by a state
board of education or other appropriate state educational agency.
2. Has a high school certificate of equivalency.
3. Is eighteen years of age or older and demonstrates evidence of potential success
in the community college.
4. Is a transfer student in good standing from another college or university.
B. Each community college district shall adopt policies regarding the admission of
students under eighteen years of age that include, at a minimum, the following
requirements:
1. Admission to the community colleges in this state shall be granted to any
student who is under eighteen years of age and who achieves a composite score of 930 or
more on the scholastic aptitude test or a composite score of twenty-two or more on the
American college test.
2. A community college may limit the number of semester hours in which the student
may enroll to not more than six credit hours.
C. Students may be admitted on an individual basis with the approval of college
officials if the student meets the established requirements of the courses for which the
student enrolls and the college officials determine that the student's admission is in
the best interest of the student. 15-1805 Student status guidelines
A. The ARIZONA board of regents shall adopt guidelines applicable to all
institutions under their jurisdiction that will ensure uniform criteria to aid the
institutions in determining the tuition status of any student and that will establish
uniform procedures for review of that status.
B. Community college districts shall adopt policies applicable to all institutions
under their jurisdiction that will ensure uniform criteria to aid the institutions in
determining the tuition status of any student and that will establish uniform procedures
for review of that status. 15-1806 Testimony concerning student status; designation of persons to administer oaths
The ARIZONA board of regents and each community college district shall designate a
person employed at each institution under their respective jurisdictions to administer
oaths or affirmations in connection with the taking of testimony relative to student
status for tuition purposes. 15-1807 Concurrent enrollment; nonresident tuition
A. It is unlawful for any nonresident student to register concurrently in two or
more public institutions of higher education in this state including any university or
community college for a combined student credit hour enrollment of more than six semester
hours without payment of nonresident tuition at one of such institutions.
B. Any nonresident student desiring to enroll concurrently in two or more public
institutions of higher education in this state including any university or community
college for a combined total of more than six semester hours who is not subject to
nonresident tuition at any of such institutions shall pay the nonresident tuition at the
institution of his choice in an amount equivalent to nonresident tuition at such
institution for the combined total of semester hours for which the nonresident student is
concurrently enrolled.

15-1808 Tuition waiver of child or spouse of peace officer, correctional officer, fire fighter, emergency paramedic or national guard member killed in the line of duty; disabled national guard member; definitions
A. The board of regents, after verification by the ARIZONA peace officers memorial
board, by the ARIZONA fire fighters and emergency paramedics memorial board or by the
adjutant general of the national guard that a person is a child or a spouse of a peace
officer, correctional officer, fire fighter, emergency paramedic or national guard member
who was a resident of the state of ARIZONA and who was killed in the line of duty or who
died from injuries suffered in the line of duty while traveling to or from duty, shall
provide the person who qualifies under subsection B of this section and who otherwise
meets the qualifications for admission with a tuition waiver scholarship at any
university under the jurisdiction of the board. A district as defined in section 15-1401,
after verification by the ARIZONA peace officers memorial board, by the ARIZONA fire
fighters and emergency paramedics memorial board or by the adjutant general of the
national guard that a person is the child or the spouse of a peace officer, correctional
officer, fire fighter, emergency paramedic or national guard member who was a resident of
ARIZONA and who was killed in the line of duty or who died from injuries suffered in the
line of duty while traveling to or from duty, shall provide the person who qualifies
under subsection B of this section and who otherwise meets the qualifications for
admission with a tuition waiver scholarship at any community college under the
jurisdiction of the board.
B. The tuition waiver scholarships shall be limited to children who are thirty
years of age or younger or a spouse who has not remarried and shall be limited for a
spouse or for any one child to no more than sixty-four credit hours at ARIZONA community
colleges and a total number of credits including any transfer credits from an ARIZONA
community college equal to the number of credits required for a baccalaureate degree at
ARIZONA universities for that student's initially declared course of study.
C. A member of the ARIZONA national guard who received a purple heart citation on
or after September 11, 2001 or a former member of the ARIZONA national guard who was
medically discharged from the ARIZONA national guard due to an injury or disability
suffered during status under title 10, United States Code, in weekend training status, in
annual training status or in response to a state of emergency declared by the governor is
eligible for a tuition waiver scholarship provided for in this section.
D. For the purposes of this section:
1. "Correctional officer" means a person, other than an elected official, who is
employed by this state or a county, city or town and who is responsible for the
supervision, protection, care, custody or control of inmates in a state, county or
municipal correctional institution, including counselors but excluding secretarial,
clerical and professionally trained personnel.
2. "Emergency paramedic" means a person who has been trained in an emergency
paramedic training program certified by the director of the department of health services
or in an equivalent training program and who is certified by the director of the
department of health services to render services pursuant to section 36-2205.
3. "Fire fighter" means a professional fire fighter who is a member of a state,
federal, tribal, city, county, district or private fire department.
4. "Peace officers" means sheriffs of counties, constables, marshals, police
officers of cities and towns, commissioned personnel of the department of public safety
and police officers appointed by community college district governing boards or the
ARIZONA board of regents, who have received a certificate from the ARIZONA peace officer
standards and training board, and other state, federal, tribal, city or county officers
vested by law with a duty to maintain public order and make arrests.

15-1821.01 Dual enrollment information
On a determination by a community college district governing board that it is in the
best interest of the citizens of a district, the district governing board may authorize
district community colleges to offer college courses that may be counted toward both high
school and college graduation requirements at the high school during the school day
subject to the following:
1. The community college district governing board and the governing board of the
school district or organization of which the high school is a part shall enter into an
agreement or contract that, at a minimum, shall address the responsibility of the
community college and of the high school for payment for facilities, personnel and other
costs, and the manner in which the college tuition is to be paid by or on behalf of each
student shall be clearly stated.
2. Students shall be admitted to the community college under the policies adopted
by each district, subject to the following:
(a) All students enrolled for college credit shall be high school juniors or
seniors. All students in the course, including those not electing to enroll for college
credit, shall satisfy the prerequisites for the course as published in the college
catalog and shall comply with college policies regarding student placement in courses.
(b) A community college may waive the class status requirements specified in
subdivision (a) of this paragraph for up to twenty-five per cent of the students enrolled
by a college in courses provided that the community college has an established written
criteria for waiving the requirements for each course. These criteria shall include a
demonstration, by an examination of the specific purposes and requirements of the course,
that freshman and sophomore students who meet course prerequisites are prepared to
benefit from the college level course. All exceptions and the justification for the
exceptions shall be reported as provided in paragraph 6 of this section.
3. The courses shall be previously evaluated and approved through the curriculum
approval process of the district, shall be at a higher level than taught by the high
school and shall be transferable to a university under the jurisdiction of the ARIZONA
board of regents or be applicable to an established community college occupational degree
or certificate program. Physical education courses shall not be available for dual
enrollment purposes.
4. College approved textbooks, syllabuses, course outlines and grading standards
that are applicable to the courses if taught at the community college shall apply to
these courses and to all students in the courses offered pursuant to this section. The
chief executive officer of each community college shall establish an advisory committee
of full-time faculty who teach in the disciplines offered at the community college to
assist in course selection and implementation in the high schools and to review and
report at least annually to the chief executive officer whether the course goals and
standards are understood, the course guidelines are followed and the same standards of
expectation and assessment are applied to these courses as though they were being offered
at the community college. The advisory committee of full-time faculty shall meet at least
three times each academic year.
5. Each faculty member shall meet the requirements established by the governing
board pursuant to section 15-1444. The chief executive officer of each community college
district shall establish an advisory committee of full-time faculty who teach in the
disciplines offered at the community college district to assist in the selection,
orientation, ongoing professional development and evaluation of faculty teaching college
courses in conjunction with the high schools. The advisory committee of full-time faculty
shall meet at least two times each academic year.
6. Each community college district, on or before September 1, shall annually
provide a report to the joint legislative budget committee on the courses offered in
conjunction with high schools during the previous fiscal year. In the case of a
multicollege district, the multicollege district shall provide a separate report for each
college. This report shall include the following:
(a) Documentation of compliance with the requirements identified in paragraphs 3, 4
and 5 of this section.
(b) The number of students in each course who did not meet the criteria prescribed
in paragraph 2 of this section.
(c) The total enrollments listed by location, by high school grade level, by course
and by whether the program was academic or occupational.
(d) Summary data on the performance of students enrolled for college credit in
courses offered in conjunction with high schools, including completion rates and grade
distribution.
(e) A copy of each agreement or contract executed pursuant to paragraph 1 of this
section.
7. Each community college district shall conduct tracking studies of subsequent
academic or occupational achievement of students enrolled in courses offered pursuant to
this section. The report of the results of the first tracking study shall be submitted to
the joint legislative budget committee on or before September 1, 2003 and subsequent
reports shall be submitted to the joint legislative budget committee on or before
September 1 of each odd-numbered year thereafter, subject to the following:
(a) The tracking studies prescribed in this paragraph may involve statistically
valid sampling techniques and shall include, at a minimum, the high school graduation
rate, the number of students continuing their studies after graduation at a community
college in this state or a university under the jurisdiction of the ARIZONA board of
regents, the performance of the students in subsequent college courses in the same
discipline or occupational field and the student's grade point average after one year at
an ARIZONA community college or university as compared to the student's college grade
point average for courses completed while still in high school.
(b) On receipt of the report of the tracking studies prescribed in this paragraph,
the joint legislative budget committee shall convene an ad hoc committee that includes
community college academic officers, faculty and other experts in the field to review the
manner in which these courses are provided. This committee may make recommendations to
the joint legislative budget committee regarding desirable changes in this section or in
the manner in which this section is being implemented. A copy of this report shall be
provided to each district governing board.
8. A school district shall ensure that a pupil is a full-time student as defined in
section 15-901 and is enrolled in and attending a full-time instructional program at a
school in the school district before that pupil is allowed to enroll in a college course
pursuant to this section, except that high school seniors who satisfy high school
graduation requirements with less than a full-time instructional program shall be exempt
from this paragraph. 15-1821 Special admission of students under age eighteen; enrollment information; reports
A. Each community college district board shall adopt policies which require
community colleges under its jurisdiction to admit students under age eighteen who have
not yet attained a high school diploma or high school certificate of equivalency and who
meet the established requirements of the courses for which they enroll. The ARIZONA board
of regents shall adopt rules which require the universities under its jurisdiction to
admit students under age eighteen who have not yet attained a high school diploma or high
school certificate of equivalency and who meet the established requirements of the
courses for which they enroll.
B. The policies and rules as provided in subsection A shall include the following
provisions:
1. No student under age eighteen shall be denied admission because of age, lack of
a high school diploma or high school certificate of equivalency, grade in school, lack of
permission of school officials or lack of concurrent enrollment in a public or private
school, if the student has achieved at least a specified score on a college entrance
examination.
2. A community college or university which admits a student pursuant to paragraph 1
of this subsection may limit the number of semester credit hours in which the student may
enroll to no less than six semester credit hours.
3. A student admitted to a community college or university pursuant to paragraph 1
of this subsection is not guaranteed admission to a specific degree program or to all
courses offered by the community college or university.
C. Each community college district and the ARIZONA board of regents shall provide
all high schools in this state with information which describes the policies and rules,
as appropriate, the types of courses available and other information related to the
enrollment of students under the age of eighteen. Each unified or high school district
school shall make this information available to all students in at least grades nine
through twelve.
D. On or before November 15, each community college district and the ARIZONA board
of regents shall submit a report to the president of the senate, the speaker of the house
of representatives and the state board of education and shall provide a copy of this
report to the secretary of state and the director of the ARIZONA state library, archives
and public records, on students under eighteen years of age who had not yet attained a
high school diploma or high school certificate of equivalency and who were enrolled in a
university or community college course or a program for community college or university
credit during the time period of September of the previous fiscal year through August of
the current fiscal year. The annual report shall include at least the following:
1. The number of students who were enrolled.
2. A general narrative of the types of courses or programs in which the students
were enrolled.
3. The rules adopted pursuant to subsection A.
E. On or before September 30, each institution under the jurisdiction of the
ARIZONA board of regents shall submit to the ARIZONA board of regents in the form
specified by the ARIZONA board of regents the information that the ARIZONA board of
regents needs to compile the report required in subsection D.

15-1822 Report; academic performance of high school graduates
A. On or before October 31, each community college district and the ARIZONA board
of regents shall submit a report to the president of the senate, the speaker of the house
of representatives, the superintendent of public instruction and the state board of
education and shall provide a copy of this report to the secretary of state and the
director of the ARIZONA state library, archives and public records, on the academic
performance of the preceding year's graduates from high schools in this state enrolled in
institutions under their jurisdiction during the year ending on June 30 of the current
calendar year. The report shall include for each school at least the following:
1. The number of graduates of the school who were enrolled in the institution
during the reporting period.
2. Information about the academic performance of graduates of the school in
mathematics and English courses.
B. On or before September 1, each institution under the jurisdiction of the ARIZONA
board of regents shall submit to the ARIZONA board of regents in the form specified by
the ARIZONA board of regents the information that the ARIZONA board of regents needs to
compile the report required under this section.
C. The superintendent of public instruction shall provide each high school in this
state with a copy of the portion of the report that is applicable to its graduates.

15-1823 Identification numbers; social security numbers
A. From and after June 30, 2002, if a university under the jurisdiction of the
ARIZONA board of regents assigns an individual identification number to faculty, staff or
students at a university, the identification number shall not be identical to the
individual's social security number. The university shall not allow the display of the
individual's social security number, or any four or more consecutive numbers contained in
the individual's social security number, on any internet site maintained by the
university or other publicly accessible document for any purpose.
B. On request of an individual, a university under the jurisdiction of the ARIZONA
board of regents shall assign faculty, staff or students an individual identification
number that is identical to an individual's social security number. A university shall
notify faculty, staff or students of the option to obtain an identification number for no
additional fee that is identical to the individual's social security number on a form
distributed at the time that the individual identification number is assigned.
C. If a community college or community college district assigns an individual
identification number to faculty, staff or students at a community college that is
identical to an individual's social security number, the community college or community
college district shall not allow the display of an individual's social security number,
or any four or more consecutive numbers contained in the individual's social security
number, on any internet site maintained by the community college or community college
district or other publicly accessible document for any purpose.
D. On the request of a student, a community college or community college district
shall assign the student an identification number that is not identical to the student's
social security number. Beginning January 1, 2004, if a high school student is enrolled
in a college course offered by a community college district pursuant to section
15-1821.01, the identification number assigned to that student pursuant to this
subsection shall correspond to the identification number assigned to that student in
connection with the student accountability information system established by section
15-1041. A community college or community college district shall notify students of the
option to obtain an individual identification number for no additional fee that is not
identical to an individual's social security number in applications for admission,
through telecommunications registration procedures, and in college
catalogs. Notification in catalogs shall occur no later than June 30, 2000, or in the
next printed edition of the catalog after the current one in print, whichever is sooner.
E. On the request of a faculty or staff member, a community college or community
college district shall assign the faculty or staff member an identification number that
is not identical to the faculty or staff member's social security number. A community
college or community college district shall provide notification to faculty and staff
members of the option to obtain an individual identification number that is not identical
to a faculty or staff member's social security number.
F. This section does not exempt any regulated institution from any duty of
compliance it may have with any federal law that may:
1. Regulate that institution's collection or use of social security numbers.
2. Protect the privacy rights of faculty, staff or students.
G. This section does not prohibit the electronic transfer of student transcripts
between educational institutions. 15-1824 Transfer articulation; annual report
A. The community college districts and universities shall cooperate in operating a
statewide articulation and transfer system, including the process for transfer of lower
division general education credits, general elective credits and curriculum requirements
for approved majors, to facilitate the transfer of community college students to ARIZONA
public universities without a loss of credit toward a baccalaureate degree and to ensure
that the postsecondary education needs of students statewide are met without unnecessary
duplication of programs.
B. The ARIZONA board of regents and the community college districts shall submit an
annual report of their progress on both articulation and meeting statewide postsecondary
education needs to the joint legislative budget committee on or before December 15 and
shall provide a copy of this report to the secretary of state and the director of the
ARIZONA state library, archives and public records.

15-1831 Information on persons who have completed vocational programs; definitions
A. The center for vocational education shall:
1. By the end of each calendar year publish and distribute a report of the
placement rates and average salaries earned by persons completing vocational programs in
this state during the prior fiscal year. This report may include information on a
program which would be a vocational program except that it was not completed by at least
twenty-five persons during the fiscal year.
2. Establish an advisory committee consisting of representatives of both public and
private institutions which offer vocational programs. The advisory committee shall
advise the center in the implementation of this section.
3. Prescribe the format in which institutions which offer vocational programs shall
provide the information necessary to produce the report prescribed in paragraph 1 of this
subsection.
B. The governing board of each community college district shall:
1. Transmit to the center for vocational education the following information within
thirty days of the end of the fiscal year:
(a) The social security number of each person who completed a vocational program
during the previous fiscal year.
(b) Such information as the center may require in order to conduct a follow-up
survey of a sample of persons who have completed vocational programs.
2. Make available to students prior to or at the time of registration the report
distributed by the center for vocational education as prescribed in this section.
C. In this section, unless the context otherwise requires:
1. "Center for vocational education" means the center for vocational education at a
university under the jurisdiction of the ARIZONA board of regents designated by the
board.
2. "Vocational program" means a program completed by at least twenty-five persons
during the fiscal year and which is one of the following:
(a) Operated by a community college district organized pursuant to chapter 12 of
this title and designated as a vocational program, including vocational programs operated
by a skill center.
(b) A private vocational program licensed pursuant to section 32-3021 which does
not provide a baccalaureate degree. 15-1841 Selective service registration; applicability
A. Except as provided in subsection B, a person is not eligible for any financial
aid by the state from the expenditure of public funds for grants, loans or scholarships
at a university or community college in this state unless the person has registered with
the selective service system if required by the federal military selective service act
(62 Stat. 604; 50 United States Code App. section 453).
B. A person may not be denied a right, privilege or benefit by reason of subsection
A if either of the following applies:
1. The requirement for the person to so register has terminated or become
inapplicable to the person.
2. The person shows by a preponderance of the evidence that the failure of the
person to register with the selective service system was not a knowing and willful
failure to register.

15-1851 Commission for postsecondary education; purpose; report; members; terms; powers and duties; compensation; quorum; personal liability; definition
A. The commission for postsecondary education is established as the postsecondary
review entity for this state for the conduct, supervision and coordination of the review
of postsecondary education institutions in order to determine the eligibility of those
institutions for student financial aid monies pursuant to the provisions of part H,
subpart one of the higher education amendments of 1992 (P.L. 102-325; 106 Stat. 638; 20
United States Code section 1099a). The commission shall accomplish the purpose of this
subsection through the accumulation of information, the performance of studies and the
determination of compliance by the postsecondary education institutions with the
provisions of part H, subpart one of the higher education amendments of 1992. The review
authority of the commission shall be limited to circumstances where the United States
department of education has referred an institution to the commission for review or where
the United States department of education has approved the review of an institution in
accordance with criteria established by the United States department of education. The
commission shall keep records of its activities, and the commission shall provide
information when requested to the United States secretary of education for financial and
compliance audits and for institution evaluation. The scope of authority of the
commission acting as a postsecondary review entity to review any educational institution
is limited specifically to compliance by the institution with title IV, part H, subpart
one of the higher education amendments of 1992. Any review of any institution conducted
by the commission shall be performed in the context of the institution's individual
mission and purposes. The commission shall not exercise planning, policy, coordinating,
supervisory, budgeting or administrative powers over any postsecondary institution in
this state.
B. The commission shall also administer the applicable programs identified under
section 1203 of the higher education act amendments of 1998 (P.L. 105-244), including the
leveraging educational assistance partnership program, the federal family education loan
program and the Paul Douglas teacher scholarships program, and shall supervise the state
guarantee agency under the higher education act amendments of 1998.
C. In addition to the responsibilities prescribed in subsections A and B of this
section, the commission shall:
1. Provide a forum to public and private postsecondary education institutions for
discussion of issues of mutual interest, including the following:
(a) The postsecondary needs of unserved and underserved individuals in this state.
(b) The resources of public and private institutions, organizations and agencies
that are located in this state and that are capable of providing postsecondary education
opportunities.
(c) Enrollment demand and public policy options to meet statewide needs for
postsecondary education services.
(d) Cooperative comprehensive instructional and capital planning.
2. Provide reports pursuant to this subsection on discussions of issues of mutual
interest.
3. Coordinate and promote collaborative studies on issues of mutual interest to
public and private postsecondary education institutions.
4. Compile and disseminate information to the public regarding postsecondary
education opportunities in this state.
5. Prepare an annual report that summarizes the results of the commission's
activities prescribed in this section and section 15-1852. The annual report shall be
submitted to the speaker of the house of representatives, the president of the senate,
the governor and the ARIZONA state library, archives and public records by December 28.
D. The commission consists of the executive director of the ARIZONA board of
regents, the executive director of the state board for private postsecondary education
and the following additional members who shall be appointed by the governor pursuant to
section 38-211:
1. Two members who hold senior executive or managerial positions in a university
under the jurisdiction of the ARIZONA board of regents.
2. Two members who hold senior executive or managerial positions in a community
college district, one representing a community college district in a county with a
population of five hundred thousand persons or more and one representing a community
college district in a county with a population of less than five hundred thousand
persons.
3. Two members who hold senior executive or managerial positions in private
postsecondary institutions of higher education that are licensed under title 32, chapter
30, that are located in this state, that offer bachelor or higher degrees and that are
accredited by a regional accreditation agency approved by the United States department of
education.
4. Two members who hold senior executive or managerial positions in private
postsecondary institutions of higher education that are licensed under title 32, chapter
30, that are located in this state, that offer vocational education programs and that are
accredited by a national accreditation agency approved by the United States department of
education.
5. One member who holds a senior executive or managerial position in a private
cosmetology school that is licensed under title 32, chapter 5, that is located in this
state, that offers cosmetology programs approved by the board of cosmetology and that is
accredited by a national accreditation agency approved by the United States department of
education.
6. One member who holds a senior executive or managerial position in an institution
that is licensed under title 32, chapter 23 or under the provisions of 14 Code of Federal
Regulations part 147, that offers vocational education programs at the postsecondary
level, that is located in this state and that is not an institution that is qualified
under any other category.
7. One member who has held a senior executive or managerial level position in
commerce or industry in this state for at least three years before the member's
appointment and who is not qualified to serve under any other category.
8. Two members who hold senior executive or managerial positions in the high school
education system in this state.
9. One member who is an owner, operator or administrator of a charter school in
this state.
E. Members of the commission appointed pursuant to subsection D, paragraphs 1
through 9 of this section shall serve four year terms. Appointed members of the
commission shall be residents of this state. Appointed members of the commission at all
times during their terms shall continue to be eligible for appointment under the category
that they were appointed to represent. Terms of appointed members of the commission begin
on the third Monday in January. No appointed member of the commission may serve more than
two consecutive terms.
F. The executive director of the ARIZONA board of regents and the executive
director of the state board for private postsecondary education serve as members of the
commission during their respective terms of office and are not eligible to vote with
respect to the commission's review of any postsecondary institution.
G. Members appointed pursuant to subsection D, paragraphs 1 through 9 of this
section are eligible to receive compensation pursuant to section 38-611 for each day
spent in the performance of commission duties and may be reimbursed for expenses properly
incurred in connection with the attendance at meetings or hearings of the commission.
H. The governor shall appoint a chairman from among the members of the commission
who shall serve a one year term that begins on the third Monday in January.
I. Except as provided in subsection J of this section, a majority of the members of
the commission constitutes a quorum for the transaction of commission business. The vote
of a majority of the quorum constitutes authority for the commission to act.
J. For all purposes relating to title IV, part H, subpart one of the higher
education amendments of 1992 the commission membership shall consist only of the members
appointed pursuant to subsection D, paragraphs 1 through 7 of this section, and all
commission actions taken pursuant to title IV, part H, subpart one of the higher
education act of 1992 require the affirmative vote of at least six members.
K. Members of the commission are immune from personal liability with respect to all
actions that are taken in good faith and within the scope of the commission's authority.
L. For the purposes of this section, "community college district" means a community
college district that is established pursuant to sections 15-1402 and 15-1403 and that is
a political subdivision of this state.

15-1852 Additional powers and duties
A. In addition to the powers and duties prescribed in section 15-1851, the
commission for postsecondary education shall:
1. Meet at least four times each year.
2. Adopt rules to carry out the purposes of this article.
3. Administer and enforce the provisions of this article and rules adopted pursuant
to this article.
4. Keep a record of its proceedings.
5. Contract, on behalf of this state, with the United States secretary of education
for the purpose of complying with the provisions of part H of the higher education
amendments of 1992.
6. Enter into agreements and contracts with state regulatory agencies or entities,
accrediting bodies and other peer review systems for the purpose of complying with the
provisions of title IV program eligibility reviews as set forth in part H of the higher
education amendments of 1992. Agreements and contracts executed pursuant to this
subsection shall be for the purpose of conducting fact-finding activities, eligibility
reviews, compliance assessments and recommendations, program reviews and consumer
complaint studies. The review authority of the commission shall be limited to those
circumstances specified in section 15-1851, subsection A. The commission shall provide
sufficient monies to the agency or contractor to perform review functions.
7. Establish procedures for the performance of the title IV eligibility reviews as
prescribed in part H, subpart one of the higher education amendments of 1992, the
evaluation and assessment of the reviews performed, the evaluation and assessment of the
postsecondary institution's initial and continuing title IV eligibility, the notification
of the results of the reviews and the enforcement of an appeals process that provides for
due process for postsecondary education institutions. The review authority of the
commission shall be limited to those circumstances specified in section 15-1851,
subsection A.
8. Establish procedures by which agencies of this state that are responsible for
oversight of postsecondary institutions receive notification of eligibility reviews,
eligibility determinations and actions and other actions taken or planned against
postsecondary institutions.
9. Comply with the provisions of title 38, chapter 3, article 3.1 and title 39.
B. The commission may:
1. Adopt an official seal.
2. Contract.
3. Sue and be sued.
4. Receive, hold, make and take leases of and sell personal property for the
benefit of the commission.
5. Employ permanent or temporary personnel as the commission deems necessary to
carry out this article. The commission may designate the duties of these personnel. The
commission employees are subject to title 41, chapter 4, articles 5 and 6.
6. Conduct investigations, hold hearings and determine methods of enforcement of
the provisions of this article.
7. Issue subpoenas to compel the attendance of witnesses and the production of
documents, administer oaths, take testimony, hear proof and receive exhibits into
evidence.
8. Establish policy centers under its control to conduct studies.
9. Coordinate and promote studies of interest to postsecondary institutions in this
state.
C. The commission is exempt from title 41, chapter 6 but shall adopt rules in a
manner substantially similar to title 41, chapter 6.

15-1853 Funding; federal monies; postsecondary education fund; report
A. The postsecondary education fund is established consisting of:
1. Monies appropriated by the legislature.
2. Monies received from state agencies and political subdivisions of this state.
3. Monies received from the United States government, including monies received
from the United States department of education pursuant to subsection B of this section.
4. Gifts, grants and donations received from any private source to carry out the
duties and responsibilities of the commission.
B. The commission may receive monies distributed by the United States department of
education for the reimbursement of the costs of performing review requirements. The
costs may include expenses for the instruction of personnel needed to serve the purpose
of section 15-1851, subsection A, the supplementation of existing review functions, work
performed by subcontractors or consultants in connection with the review functions of the
commission and any other administrative expenses necessary for compliance with part H,
subpart one of the higher education amendments of 1992. No more than thirteen per cent
of amounts received by the commission from the United States department of education may
be utilized for administrative purposes by the commission.
C. The commission shall administer the fund in compliance with the requirements of
this article. The commission shall separately account for monies received from each
source listed in subsection A of this section and may establish accounts and subaccounts
of the fund as necessary to carry out the requirements of this subsection.
D. Monies obtained pursuant to subsection A, paragraphs 1 through 3 of this section
are subject to legislative appropriation. The commission shall not use these monies for
purposes other than those designated by special line items for which the monies are
received.
E. Monies obtained pursuant to subsection A, paragraph 4 of this section are
continuously appropriated. These monies shall be used in accordance with the requests of
the donor. If no request is specified, the monies may be used for additional
responsibilities of the board prescribed in section 15-1851, subsection C and section
15-1852, subsection B, paragraphs 8 and 9.
F. The commission shall report quarterly to the joint legislative budget committee
on fund deposits and expenditures.

15-1854 Private postsecondary education student financial assistance program; private postsecondary education student financial assistance fund; definition
A. A private postsecondary education student financial assistance program is
established. The commission shall develop, implement and administer the program. A
student who obtains an associate degree from a community college district or from a
community college under the jurisdiction of an Indian tribe in this state that meets the
same accreditation standards as a community college district and who registers for
enrollment as a full-time student in a baccalaureate program at a private, nationally or
regionally accredited four year degree granting college or university chartered in this
state is eligible to submit an application to the commission for participation in the
program. The commission shall establish eligibility criteria for the program including
financial need and academic merit, shall develop application forms, procedures and
deadlines and shall select qualifying students each year for participation in the
program. Participating students shall receive an award in an amount of up to one
thousand five hundred dollars annually for not to exceed two years and three thousand
dollars to be used to pay all or a portion of the tuition and fees charged at the
private, accredited four year college or university.
B. A private postsecondary education student financial assistance fund is
established consisting of legislative appropriations. The commission shall administer
the fund. Monies in the fund are exempt from the provisions of section 35-190, relating
to lapsing of appropriations. The commission shall make awards for payment of tuition at
eligible colleges or universities to students who are selected to participate in the
private postsecondary education student financial assistance program pursuant to
subsection A.
C. The commission shall develop a program evaluation procedure in order to
determine the effectiveness of the private postsecondary education student financial
assistance program in shifting students who would have otherwise attended a public four
year college or university to private four year degree granting colleges or universities.
D. A student who fails to receive a baccalaureate degree within a three year period
of receipt of the program award shall reimburse the private postsecondary education
student financial assistance fund for all awards received pursuant to subsection A.
E. For the purposes of this section, "community college district" means a community
college district established pursuant to sections 15-1402 and 15-1403 that is a political
subdivision of this state.

15-1871 Definitions
In this article, unless the context otherwise requires:
1. "Account" means an individual trust account in the fund established as
prescribed in this article.
2. "Account owner" means the person who enters into a tuition savings agreement
pursuant to this article, who is an account owner within the meaning of section 529 of
the internal revenue code and who is designated at the time an account is opened as
having the right to withdraw monies from the account before the account is disbursed to
or for the benefit of the designated beneficiary.
3. "Commission" means the commission for postsecondary education established by
section 15-1851.
4. "Committee" means the family college savings program oversight committee.
5. "Designated beneficiary" means a person who qualifies as a designated
beneficiary under section 529 of the internal revenue code and, except as provided in
section 15-1875, subsections R and S, with respect to an account, who is designated at
the time the account is opened as the person whose higher education expenses are expected
to be paid from the account or, if this designated beneficiary is replaced in accordance
with section 15-1875, subsections E, F and G, the replacement beneficiary.
6. "Eligible educational institution" means an institution of higher education that
qualifies under section 529 of the internal revenue code as an eligible educational
institution.
7. "Financial institution" means any bank, commercial bank, national bank, savings
bank, savings and loan association, credit union, insurance company, brokerage firm or
other similar entity that is authorized to do business in this state.
8. "Fund" means the family college savings program trust fund that constitutes a
public instrumentality of this state established by section 15-1873.
9. "Member of the family" means any of the following:
(a) A son or daughter of a person or a descendant of the son or daughter of the
person.
(b) A stepson or stepdaughter of a person.
(c) A brother, sister, stepbrother or stepsister of a person. For the purposes of
this subdivision, "brother" and "sister" includes a brother or sister by the half-blood.
(d) The father or mother of a person or the ancestor of the father or mother of a
person.
(e) A stepfather or stepmother of a person.
(f) A son or daughter of a person's brother or sister. For the purposes of this
subdivision, "brother" and "sister" includes a brother or sister by the half-blood.
(g) A brother or sister of the person's father or mother. For the purposes of this
subdivision, "brother" and "sister" includes a brother or sister by the half-blood.
(h) A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or
sister-in-law of a person.
(i) The spouse of a person or the spouse of any individual described in this
paragraph.
(j) A first cousin of a person.
(k) Any individual who meets the criteria for family membership described in this
paragraph as a result of legal adoption.
10. "Nonqualified withdrawal" means a withdrawal from an account other than one of
the following:
(a) A qualified withdrawal.
(b) A withdrawal made as the result of the death or disability of the designated
beneficiary of an account.
(c) A withdrawal that is made on the account of a scholarship, or the allowance or
payment described in section 135(d)(1)(B) or (C) of the internal revenue code, and that
is received by the designated beneficiary, but only to the extent of the amount of this
scholarship, allowance or payment.
(d) A rollover or change of designated beneficiary.
11. "Person" means an individual, an individual's legal representative or any other
legal entity authorized to establish a savings account under section 529 of the internal
revenue code and the corresponding regulations.
12. "Program" means the family college savings program established under this
article that constitutes a qualified tuition program as defined in section 529 of the
internal revenue code.
13. "Qualified higher education expenses" means tuition, fees, books, supplies, room
and board and equipment required for enrollment or attendance of a designated beneficiary
at an eligible educational institution and expenses for special needs services in the
case of a special needs beneficiary that are incurred in connection with enrollment or
attendance, if these expenses meet the definition of qualified higher education expenses
in section 529 of the internal revenue code.
14. "Qualified withdrawal" means a withdrawal from an account to pay the qualified
higher education expenses of the designated beneficiary of the account, but only if the
withdrawal is made in accordance with this article.
15. "Section 529 of the internal revenue code" means section 529 of the internal
revenue code of 1986, as amended, and the final regulations issued pursuant to that
section.
16. "Trust interest" means an account owner's interest in the fund created by a
tuition savings agreement for the benefit of a designated beneficiary.
17. "Tuition savings agreement" means an agreement between the commission, as
trustee of the fund, and an account owner that creates an interest in the fund and that
provides for participation in the program.

15-1872 Family college savings program oversight committee; membership; powers and duties
A. The family college savings program oversight committee is established in the
commission for postsecondary education. The committee consists of the following members:
1. The state treasurer or the state treasurer's designee.
2. The chairperson of the state board for private postsecondary education or the
chairperson's designee.
3. Three members of the general public, each of whom possesses knowledge, skill and
experience in accounting, risk management or investment management or as an actuary. The
governor shall appoint these members to serve staggered four year terms pursuant to
section 38-211. The initial members appointed pursuant to this paragraph shall assign
themselves by lot to serve two, three and four year terms. The chairperson shall notify
the governor's office on appointments of these terms. All subsequent members appointed
pursuant to this paragraph serve four year terms.
4. A certified financial planner who is appointed by the governor.
5. A certified public accountant who is appointed by the governor.
6. An attorney with a state bar of ARIZONA certification in estates and trusts who
is appointed by the governor.
7. An individual with investment, asset management and financial related expertise
who is appointed by the governor.
8. An individual employed by a community college or university with investment,
asset management and financial related expertise who is appointed by the governor.
B. The commission shall select a chairperson and a vice-chairperson from among the
committee's membership. A majority of the membership constitutes a quorum for the
transaction of business. The committee shall meet at least once each calendar
quarter. The chairperson may call additional meetings.
C. The member of the family college savings program oversight committee appointed
pursuant to subsection A, paragraph 6 of this section is eligible to receive compensation
as determined pursuant to section 38-611 for each day of attendance at committee
meetings, except that the compensation of the member shall not exceed five hundred
dollars in any year. The commission shall pay compensation pursuant to this subsection
from monies of the commission.
D. The committee shall recommend financial institutions for approval by the
commission to act as the depositories and managers of family college savings accounts
pursuant to section 15-1874.
E. The committee may submit proposed rules to the commission to assist in the
implementation and administration of this article.
F. Members of the committee are immune from personal liability with respect to all
actions that are taken in good faith and within the scope of the committee's authority. 15-1873 Commission for postsecondary education; powers and duties; family college savings program trust fund
A. The commission shall:
1. Develop and implement the program in a manner consistent with this article
through the adoption of rules, guidelines and procedures.
2. Retain professional services, if necessary, including accountants, auditors,
consultants and other experts.
3. Seek rulings and other guidance from the United States department of the
treasury and the internal revenue service relating to the program.
4. Make changes to the program required for the participants in the program to
obtain the federal income tax benefits or treatment provided by section 529 of the
internal revenue code.
5. Interpret, in rules, policies, guidelines and procedures, the provisions of this
article broadly in light of its purpose and objectives.
6. Charge, impose and collect administrative fees and service charges in connection
with any agreement, contract or transaction relating to the program.
7. Negotiate and select the financial institution or institutions to act as the
depository and manager of the program in accordance with this article.
8. As an agency of this state, act as trustee of the fund.
9. Maintain the program on behalf of this state as required by section 529 of the
internal revenue code.
10. Enter into tuition savings agreements with account owners pursuant to this
article.
B. The family college savings program trust fund is established consisting of the
assets of the family college savings program. The commission shall administer the fund
and shall act as the sole trustee of the fund. Monies in the fund are continuously
appropriated. The fund is designated a public instrumentality of this state that is
created for an essential public purpose. Trust interests in the fund shall be designated
by the commission for each account owner. The fund shall be separated into a trust
account and an operating account. The trust account shall include amounts received by the
family college savings program from account owners pursuant to tuition savings agreements
and interest and investment income earned by the fund. The commission shall make
transfers from the trust account to the operating account as necessary for the immediate
payment of obligations under tuition savings agreements, operating expenses and
administrative costs of the family college savings program. The commission shall deposit
and invest monies or other amounts in the fund with financial institutions in accordance
with section 15-1874.

15-1874 Use of contractor as account depository and manager
A. The commission shall implement the operation of the program through the use of
one or more financial institutions to act as the depositories of the fund and managers of
the program. Under the program, persons may submit applications for enrollment in the
program and establish accounts in the fund at the financial institution. Monies paid by
account owners to the fund for deposit in accounts maintained by the fund at a financial
institution shall be paid to the financial institution as an agent of the fund and the
tuition savings agreements shall provide that all monies paid by account owners to fund
accounts held at financial institutions are being paid to the fund.
B. The committee shall solicit proposals from financial institutions to act as the
depositories of fund monies and managers of the program. Financial institutions that
submit proposals must describe the financial instruments that will be held in accounts.
The commission shall select proposals from financial institutions to act as depositories
and managers and that the solicitation and selection process is exempt from the
procurement code requirements of title 41, chapter 23.
C. On the recommendation of the committee, the commission shall select the
financial institution or institutions to implement the operation of the program from
among bidding financial institutions that demonstrate the most advantageous combination,
both to potential program participants and this state, of the following factors:
1. Financial stability and integrity.
2. The safety of the investment instruments being offered, taking into account any
insurance provided with respect to these instruments.
3. The ability of the investment instruments to track estimated costs of higher
education as calculated by the commission and provided by the financial institution to
the account holder.
4. The ability of the financial institutions, directly or through a subcontract, to
satisfy record keeping and reporting requirements.
5. The financial institution's plan for promoting the program and the investment it
is willing to make to promote the program.
6. The fees, if any, proposed to be charged to persons for maintaining accounts.
7. The minimum initial deposit and minimum contributions that the financial
institution will require for the investment of fund monies and the willingness of the
financial institution to accept contributions through payroll deduction plans and other
deposit plans.
8. Any other benefits to this state or its residents included in the proposal,
including an account opening fee payable to the commission by the account owner and an
additional fee from the financial institution for statewide program marketing by the
commission.
D. The commission shall enter into a contract with a financial institution, or
except as provided in subsection E of this section, contracts with financial
institutions, to serve as program managers and depositories. Program management
contracts shall provide the terms and conditions by which financial institutions shall
sell interests in the fund to account owners, invest monies in the fund and manage the
program.
E. The commission may select more than one financial institution and investment for
the program if both of the following conditions exist:
1. The United States internal revenue service has provided guidance that giving a
contributor a choice of two investment instruments under a state plan will not cause the
plan to fail to qualify for favorable tax treatment under section 529 of the internal
revenue code.
2. The commission concludes that the choice of instrument vehicles is in the best
interest of college savers and will not interfere with the promotion of the program.
F. A program manager shall:
1. Take all action required to keep the program in compliance with the requirements
of this article and all action not contrary to this article or its contract to manage the
program so that it is treated as a qualified tuition plan under section 529 of the
internal revenue code.
2. Keep adequate records of each of the fund's accounts, keep each account
segregated from each other account and provide the commission with the information
necessary to prepare statements required by section 15-1875, subsections O, P and Q or
file these statements on behalf of the commission.
3. Compile and total information contained in statements required to be prepared
under section 15-1875, subsections O, P and Q and provide these compilations to the
commission.
4. If there is more than one program manager, provide the commission with this
information to assist the commission to determine compliance with section 15-1875,
subsection N.
5. Provide representatives of the commission, including other contractors or other
state agencies, access to the books and records of the program manager to the extent
needed to determine compliance with the contract.
6. Hold all accounts in the name of and for the benefit of the fund and this state.

G. Any contract executed between the commission and a financial institution
pursuant to this section shall be for a term of at least three years and not more than
seven years.
H. The commission may terminate a contract with a financial institution at any
time for good cause on the recommendation of the committee. If a contract is terminated
pursuant to this subsection, the commission shall take custody of accounts held at that
financial institution and shall seek to promptly transfer the accounts to another
financial institution that is selected as a program manager and into investment
instruments as similar to the original investments as possible.
I. If the commission determines not to renew the appointment of a financial
institution as a program manager, the commission may take action consistent with the
interests of the program and the accounts and in accordance with its duties as the
trustee of the fund, including termination of all services or continuation of certain
management and administrative services of that financial institution for accounts of the
program managed by that financial institution during its term as a program manager, if
any continuation of services is only permitted under the following conditions:
1. The commission and the financial institution enters into a written agreement
specifying the rights of the program and the commission and the responsibilities of the
financial institution, including the standards that continue to be applicable to the
accounts as accounts of the program.
2. Any services provided by the financial institution to accounts continue to be
subject to the control of the commission as the trustee of the fund with responsibility
of all accounts of the program.

15-1875 Program requirements
A. The program shall be operated through the use of accounts in the fund
established by account owners. Payments to the fund for participation in the program
shall be made by account owners pursuant to tuition savings agreements. An account may
be opened by any person who desires to invest in the fund and to save to pay qualified
higher education expenses by satisfying each of the following requirements:
1. Completing an application in the form prescribed by the commission. The
application shall include the following information:
(a) The name, address and social security number or employer identification number
of the contributor.
(b) The name, address and social security number of the account owner if the
account owner is not the contributor.
(c) The name, address and social security number of the designated beneficiary.
(d) The certification relating to no excess contributions required by subsection N.
(e) Any other information that the commission may require.
2. Paying the one-time application fee established by the commission.
3. Making the minimum contribution required by the commission or by opening an
account.
4. Designating the type of account to be opened if more than one type of account is
offered.
B. Any person may make contributions to an account after the account is opened.
C. Contributions to accounts may be made only in cash.
D. Account owners may withdraw all or part of the balance from an account on sixty
days' notice, or a shorter period as may be authorized by the commission, under rules
prescribed by the commission. These rules shall include provisions that will generally
enable the commission or program manager to determine if a withdrawal is a nonqualified
withdrawal or a qualified withdrawal. The rules may, but need not, require one or more
of the following:
1. Account owners seeking to make a qualified withdrawal or other withdrawal that
is not a nonqualified withdrawal shall provide certifications, copies of bills for
qualified higher education expenses or other supporting material.
2. Qualified withdrawals from an account shall be made only by a check payable as
designated by the account owner.
3. Withdrawals not meeting certain requirements shall be treated as nonqualified
withdrawals by the program manager, and if these withdrawals are not nonqualified
withdrawals, the account owner must seek refunds of penalties, if any, directly from the
commission.
E. An account owner may change the designated beneficiary of an account to an
individual who is a member of the family of the former designated beneficiary in
accordance with procedures established by the commission.
F. On the direction of an account owner, all or a portion of an account may be
transferred to another account of which the designated beneficiary is a member of the
family of the designated beneficiary of the transferee account.
G. Changes in designated beneficiaries and rollovers under this section are not
permitted if the changes or rollovers would violate either of the following:
1. Subsection N, relating to excess contributions.
2. Subsection K, relating to investment choice.
H. In the case of any nonqualified withdrawal from an account, a penalty may be
imposed if the penalty is required for purposes of qualifying the program as a qualified
tuition program under section 529 of the internal revenue code. The commission may adopt
rules to establish the parameters for the assessment of penalties. Any penalties assessed
shall be paid to the commission for use in operating and marketing the program and for
student financial aid.
I. Each account shall be maintained separately from each other account under the
program.
J. Separate records and accounting shall be maintained for each account for each
designated beneficiary.
K. No contributor to, account owner of or designated beneficiary of any account may
direct the investment, within the meaning of section 529 of the internal revenue code, of
any contributions to an account or the earnings from the account.
L. If the commission terminates the authority of a financial institution to hold
accounts and accounts must be moved from that financial institution to another financial
institution, the commission shall select the financial institution and type of investment
to which the balance of the account is moved unless the internal revenue service provides
guidance stating that allowing the account owner to select among several financial
institutions that are then contractors would not cause a plan to cease to be a qualified
tuition plan.
M. Neither an account owner nor a designated beneficiary may use an interest in an
account as security for a loan. Any pledge of an interest in an account is of no force
and effect.
N. On the recommendation of the committee, the commission shall adopt rules to
prevent contributions on behalf of a designated beneficiary in excess of those necessary
to pay the qualified higher education expenses of the designated beneficiaries. The
rules shall address the following:
1. Procedures for aggregating the total balances of multiple accounts established
for a designated beneficiary.
2. The establishment of a maximum total balance for the purpose of prohibiting
contributions to accounts established for a designated beneficiary if the contributions
would cause the maximum total balance to be exceeded.
3. The commission shall review the quarterly reports received from participating
financial institutions and certify that the balance in all qualified tuition programs, as
defined in section 529 of the internal revenue code, of which that person is the
designated beneficiary does not exceed the lesser of:
(a) A maximum college savings amount established by the commission from time to
time.
(b) The cost in current dollars of qualified higher education expenses that the
contributor reasonably anticipates the designated beneficiary will incur.
4. Requirements that any excess contributions with respect to a designated
beneficiary be promptly withdrawn in a nonqualified withdrawal or rolled over to another
account in accordance with this section.
O. If there is any distribution from an account to any person or for the benefit of
any person during a calendar year, the distribution shall be reported to the internal
revenue service and the account owner or the designated beneficiary to the extent
required by federal law.
P. The financial institution shall provide statements to each account owner at
least once each year within thirty-one days after the twelve month period to which they
relate. The statement shall identify the contributions made during a preceding twelve
month period, the total contributions made through the end of the period, the value of
the account as of the end of this period, distributions made during this period and any
other matters that the commission requires be reported to the account owner.
Q. Statements and information returns relating to accounts shall be prepared and
filed to the extent required by federal or state tax law.
R. A state or local government or organizations described in section 501(c)(3) of
the internal revenue code may open and become the account owner of an account to fund
scholarships for persons whose identity will be determined after an account is opened.
S. In the case of any account described in subsection R, the requirement that a
designated beneficiary be designated when an account is opened does not apply and each
person who receives an interest in the account as a scholarship shall be treated as a
designated beneficiary with respect to the interest.
T. Any social security numbers, addresses or telephone numbers of individual
account holders and designated beneficiaries that come into the possession of the
commission are confidential, are not public records and shall not be released by the
commission.
U. An account owner may transfer ownership rights to another eligible account
owner.
V. An account owner may designate successor account owners.

15-1876 Higher education expenses; exemption from taxation
Notwithstanding any other law, the amount of any distribution to a designated
beneficiary, as defined in section 529(e)(1) of the internal revenue code, from an
individual trust account or savings account established under this article is exempt from
taxation under title 43 but only to the extent that this income is used to pay qualified
higher education expenses of the designated beneficiary.

15-1877 Scholarships and financial aid provisions
A. Any student loan program, student grant program or other financial assistance
program established or administered by this state shall treat the balance in an account
of which the student is a designated beneficiary as neither an asset of the parent of the
designated beneficiary nor as a scholarship, a grant or an asset of the student for
determining a student's or parent's income, assets or financial need.
B. Subsection A applies to any state appropriated financial assistance program
administered by a college or university in this state including the financial aid trust
fund, established by section 15-1642, the leveraging educational assistance program
established by section 1203 of the higher education act amendments of 1998 (P.L. 105-244;
112 Stat. 1581; 20 United States Code section 1001) and the private postsecondary
education student financial assistance program established by section 15-1854.
C. Subsections A and B do not apply if any of the following conditions exist:
1. Federal law requires all or a portion of the amount in an account to be taken
into consideration in a different manner.
2. Federal benefits could be lost if all or a portion of the amount in an account
is not taken into consideration in a different manner.
3. A specific grant establishing a financial assistance program requires that all
or a portion of the amount in an account be taken into consideration.

15-1878 Limitations of article
A. Nothing in this article shall be construed to:
1. Give any designated beneficiary any rights or legal interest with respect to an
account unless the designated beneficiary is the account owner.
2. Guarantee that a designated beneficiary will be admitted to an eligible
educational institution or be allowed to continue enrollment at or graduate from an
eligible educational institution located in this state after admission.
3. Establish state residency for a person merely because the person is a designated
beneficiary.
4. Guarantee that amounts saved pursuant to the program will be sufficient to cover
the qualified higher education expenses of a designated beneficiary.
B. Nothing in this article establishes any obligation of this state or any agency
or instrumentality of this state to guarantee for the benefit of any account owner,
contributor to an account or designated beneficiary any of the following:
1. The return of any amounts contributed to an account.
2. The rate of interest or other return on any account.
3. The payment of interest or other return on any account.
4. Tuition rates or the cost of related higher education expenditures.
C. Under rules adopted by the commission, every contract, application, deposit slip
or other similar document that may be used in connection with a contribution to an
account shall clearly indicate that the account is not insured by this state and neither
the principal deposited nor the investment return is guaranteed by this state.


15-1879 Annual report
The commission shall submit an annual report to the speaker of the house of
representatives, the president of the senate and the governor by February 1 that
summarizes the commission's findings and recommendations concerning the program
established by this article.