USA Statutes : arizona
Title : Education
Chapter : UNIVERSITIES AND RELATED INSTITUTIONS
15-1601 State universities; location; faculty powers
A. The ARIZONA board of regents shall maintain state universities at Flagstaff in
Coconino county, at Tempe in Maricopa county and at Tucson in Pima county, and the
universities are respectively designated northern ARIZONA university, ARIZONA state
university and the university of ARIZONA. The board shall maintain an ARIZONA state
university campus in western Maricopa county designated as ARIZONA state university west
campus. The board shall maintain an ARIZONA state university campus in eastern Maricopa
county designated as ARIZONA state university east campus. The board may establish and
maintain other colleges and universities subject to legislative authority.
B. The universities shall have colleges, schools and departments and give courses
of study and academic degrees as the board approves. Subject to the responsibilities and
powers of the board and the university presidents, the faculty members of the
universities, through their elected faculty representatives, shall share responsibility
for academic and educational activities and matters related to faculty personnel. The
faculty members of each university, through their elected faculty representatives, shall
participate in the governance of their respective universities and shall actively
participate in the development of university policy.

15-1606 Correspondence and extension courses
The universities may offer extension courses at places within the state other than
the city where the institution is located, and correspondence courses may be given.

15-1621 Members; appointment; terms; oath; immunity
A. The ARIZONA board of regents consists of ten appointive members, including two
student members, and the governor and the superintendent of public instruction as ex
officio members.
B. Appointive members, except the student members, shall be appointed by the
governor pursuant to section 38-211. The term of each appointive member, except the
student members, is eight years, to begin and end on the third Monday in January.
C. The governor shall appoint two student members to serve staggered terms. Each
year the governor shall designate on a rotation basis a university under the jurisdiction
of the ARIZONA board of regents to submit a list of nominees for the position of student
member. The associated students' organization of the designated university, by majority
vote of its governing body, shall select three nominees for student member. The governor
shall consider the three nominees when making the appointment of the student member but
may appoint any qualified student. Before adjournment of the regular session of the
legislature, the governor shall submit to the senate for consent of the senate the name
of the nominee for student member whose term is to begin on July 1. A student nominated
for a full term may not serve until confirmed by the senate. A student member must be a
person who is legally domiciled in this state and attends a university under the
jurisdiction of the ARIZONA board of regents on a full-time basis. In the first year of
the term the student member may exercise all rights and privileges of a board member,
except the right to vote. In the second year of the term the student member may exercise
all rights and privileges of a board member, including the right to vote. The term of
each student member is two years, beginning on July 1. The governor may remove the
student members for cause. A student member who graduates with no more than seven months
remaining in the second year of the term may serve the remainder of the term. A vacancy
in the office of student member shall be filled as follows:
1. If a vacancy occurs during the first year of a student member's term, the office
shall be filled for the unexpired term. A student member nominated by the governor to
fill a vacancy pursuant to this paragraph may serve the balance of the term without being
confirmed by the senate.
2. If a vacancy occurs during the second year of a student member's term, the
remaining student member shall assume all rights and privileges of a board member,
including the right to vote. A new student member shall be nominated to a two year term
to begin on July 1 as provided in this subsection.
D. Each appointive member of the board shall take the oath of office before
entering upon the duties of the member's office.
E. Members of the board are immune from personal liability with respect to all acts
done and actions taken in good faith within the scope of their authority during duly
constituted regular and special meetings with approval of a majority of the board.


15-1622 Officers; organization; quorum
A. The board shall select from its membership a president, secretary, treasurer and
such other officers it deems necessary. The same person shall not hold the offices of
secretary and treasurer. The board may require the treasurer to give additional bond.
B. A majority of the membership of the board shall constitute a quorum for
transaction of business at any meeting regularly called, but a number less than a quorum
may adjourn from time to time.

15-1623 Compensation of members
A. The secretary of the ARIZONA board of regents shall receive compensation as
determined pursuant to section 38-611.
B. Appointed members shall receive compensation as determined pursuant to section
38-611 for each day of attendance at board meetings, except the compensation of no member
of the board shall exceed five hundred dollars in any year.

15-1624 Meetings of board advisory committees; student records; executive session
Notwithstanding the provisions of section 38-431.01, subsection A, meetings of
advisory committees to the board involving student records may be held in executive
session. A student whose records are to be considered may request that the meeting be
held as a public meeting in which case the meeting pertaining to such student's records
shall not be in executive session.

15-1625 General powers of board as body corporate
A. The ARIZONA board of regents is a body corporate with perpetual succession. The
board has jurisdiction and control over the universities.
B. The board may:
1. Adopt a corporate seal.
2. Contract.
3. Sue and be sued.
4. Purchase, receive, hold, make and take leases and long-term leases of and sell
real and personal property for the benefit of this state and for the use of the
institutions under its jurisdiction.

15-1626 General administrative powers of board
A. The board shall:
1. Have and exercise the powers necessary for the effective governance and
administration of the institutions under its control. To that end, the board may adopt,
and authorize each university to adopt, such regulations, policies, rules or measures as
are deemed necessary and may delegate in writing to its committees, to its university
presidents, or their designees, or to other entities under its control, any part of its
authority for the administration and governance of such institutions, including those
powers enumerated in section 15-1625, subsection B, paragraphs 2 and 4, paragraphs 3, 4,
7, 8, 10 and 11 of this subsection and subsection B of this section. Any delegation of
authority may be rescinded by the board at any time in whole or in part.
2. Appoint and employ and determine the compensation of presidents with such power
and authority and for such purposes in connection with the operation of the institutions
as the board deems necessary.
3. Appoint and employ and determine the compensation of vice-presidents, deans,
professors, instructors, lecturers, fellows and such other officers and employees with
such power and authority and for such purposes in connection with the operation of the
institutions as the board deems necessary, or delegate its authority pursuant to
paragraph 1 of this subsection.
4. Remove any officer or employee when the interests of education in this state so
require in accordance with its personnel rules and policies.
5. Fix tuitions and fees to be charged and differentiate the tuitions and fees
between institutions and between residents, nonresidents, undergraduate students,
graduate students, students from foreign countries and students who have earned credit
hours in excess of the credit hour threshold, except students whose chosen program
requires for a degree additional credit hours above the credit hour threshold. For the
purposes of this paragraph, the credit hour threshold is one hundred fifty-five hours in
fiscal year 2006-2007, one hundred fifty hours in fiscal year 2007-2008 and one hundred
forty-five hours after fiscal year 2007-2008. The amount of tuition, registration fees
and other revenues included in the operating budget for the university adopted by the
board as prescribed in paragraph 12 of this subsection shall be deposited, pursuant to
sections 35-146 and 35-147. All other tuition and fee revenue shall be retained by each
university for expenditure as approved by the board. Except as provided in subsection H
of this section, the ARIZONA board of regents shall adopt rules to govern its tuition and
fee setting process that provide for the following:
(a) At least one public hearing at each university as an opportunity for students
and members of the public to comment upon any proposed increase in tuition or fees.
(b) Publication of the notice of public hearing at least ten days prior to the
hearing in a newspaper of general circulation in Maricopa county, Coconino county and
Pima county. The notice shall include the date, time and location of the public hearing.
(c) Public disclosure by each university of any proposed increases in tuition or
fees at least ten days prior to the public hearing.
(d) Final board action on changes in tuition or fees shall be taken by roll call
vote.
The procedural requirements of subdivisions (a), (b), (c) and (d) apply only to those
changes in tuition or fees that require board approval.
6. Pursuant to section 35-115, submit a budget request for each institution under
its jurisdiction that includes the estimated tuition and fee revenue available to support
the programs of the institution as described in the budget request. The estimated
available tuition and fee revenue shall be based on the tuition and registration fee
rates in effect at the time the budget request is submitted with adjustments for
projected changes in enrollment as provided by the board.
7. Establish curriculums and designate courses at the several institutions which in
its judgment will best serve the interests of this state.
8. Award such degrees and diplomas upon the completion of such courses and
curriculum requirements as it deems appropriate.
9. Prescribe qualifications for admission of all students to the universities. The
board shall establish policies for guaranteed admission that assure fair and equitable
access to students in this state from public, private, charter and home schools. For the
purpose of determining the qualifications of honorably discharged veterans, veterans are
those persons who served in the armed forces for a minimum of two years and who were
previously enrolled at a university or community college in this state. No prior failing
grades received by the veteran at the university or community college in this state may
be considered.
10. Adopt any energy conservation standards promulgated by the department of
administration for the construction of new buildings.
11. Employ for such time and purposes as the board requires attorneys whose
compensation shall be fixed and paid by the board. Litigation to which the board is a
party and for which self-insurance is not provided may be compromised or settled at the
direction of the board.
12. Adopt annually an operating budget for each university equal to the sum of
appropriated general fund monies and the amount of tuition, registration fees and other
revenues approved by the board and allocated to each university operating budget.
13. In consultation with the state board of education and other education groups,
develop and implement a program to award honors endorsements to be affixed to the high
school diplomas of qualifying high school pupils and to be included in the transcripts of
pupils who are awarded endorsements. The board shall develop application procedures and
testing criteria and adopt testing instruments and procedures to administer the program.
In order to receive an honors endorsement, a pupil must demonstrate an extraordinary
level of knowledge, skill and competency as measured by the testing instruments adopted
by the board in mathematics, English, science and social studies. Additional subjects may
be added at the determination of the board. The program is voluntary for pupils.
14. Require the publisher of each literary and nonliterary textbook used in the
universities of this state to furnish computer software in a standardized format when
software becomes available for nonliterary textbooks, to the ARIZONA board of regents
from which braille versions of the textbooks may be produced.
15. Require universities that provide a degree in education to require courses that
are necessary to obtain a provisional structured English immersion endorsement as
prescribed by the state board of education.
B. The board shall adopt personnel rules. All nonacademic employees of the
universities are subject to these rules except for university presidents, university
vice-presidents, university deans, legal counsel and administrative officers. The
personnel rules shall be similar to the personnel rules under section 41-783. The rules
shall include provisions for listing available positions with the department of economic
security, competitive employment processes for applicants, probationary status for new
nonacademic employees, nonprobationary status on successful completion of probation and
due process protections of nonprobationary employees after discharge. The board shall
provide notice of proposed rule adoption and an opportunity for public comment on all
personnel rules proposed for adoption.
C. The ARIZONA board of regents may employ legal assistance in procuring loans for
the institutions from the United States government. Fees or compensation paid for such
legal assistance shall not be a claim upon the general fund of this state but shall be
paid from funds of the institutions.
D. The board shall approve or disapprove any contract or agreement entered into by
the university of ARIZONA hospital with the ARIZONA health facilities authority.
E. The board may adopt policies which authorize the institutions under its
jurisdiction to enter into employment contracts with nontenured employees for periods of
more than one year but not more than five years. The policies shall prescribe limitations
on the authority of the institutions to enter into employment contracts for periods of
more than one year but not more than five years, including the requirement that the board
approve the contracts.
F. The board may adopt a plan or plans for employee benefits which allow for
participation in a cafeteria plan that meets the requirements of the United States
internal revenue code of 1986.
G. The board may establish a program for the exchange of students between the
universities under the jurisdiction of the board and colleges and universities located in
the state of Sonora, Mexico. Notwithstanding subsection A, paragraph 5 of this section,
the program may provide for in-state tuition at the universities under the jurisdiction
of the board for fifty Sonoran students in exchange for similar tuition provisions for up
to fifty ARIZONA students enrolled or seeking enrollment in Sonoran colleges or
universities. The board may direct the universities to work in conjunction with the
ARIZONA-Mexico commission to coordinate recruitment and admissions activities.
H. Subsection A, paragraph 5, subdivisions (a), (b), (c) and (d) of this section do
not apply to fee increases that are set by individual universities and that do not
require approval by the ARIZONA board of regents before the fee increase becomes
effective. 15-1627 Control of vehicles and nonpedestrian devices on university property; sanctions; compliance with emissions inspection; definition
A. Each university may adopt rules for the control of vehicles and nonpedestrian
devices on its property with respect to the following only: maximum speed of vehicles
and nonpedestrian devices, direction of travel, authorized hours of travel, required
stops in traffic, place of parking, method of parking, time of parking, nonparking areas,
restricted areas, prohibition of parking in vehicle emissions control areas as defined in
section 49-541 of those vehicles which fail to comply with section 49-542 and designation
of special parking areas for students, faculty, staff and the general public. Each
university may prescribe and collect reasonable fees for specially designated parking
areas. Each university shall cause signs and notices to be posted upon the property for
the regulation of vehicles and nonpedestrian devices.
B. The rules adopted by each university pursuant to subsection A of this section
shall be enforced administratively by each university. As to students, faculty and
staff, these procedures may, but need not, involve both student and faculty adjudicating
bodies, as long as all procedures give the individual notice and an opportunity to be
heard concerning the alleged infractions and any sanction to be imposed upon
him. Administrative and disciplinary sanctions may be imposed upon students, faculty and
staff for a violation of the rules including, but not limited to: a reasonable monetary
penalty, impoundment, regular institutional discipline, withdrawal or suspension of
campus parking privileges, encumbrances of records or grades, or both, and oral or
written reprimand. Habitual or flagrant disregard of rules shall be a ground for
suspension or expulsion from the university for a student and may be taken into
consideration as to faculty and staff in regard to amount of salary and continuation of
employment.
C. Members of the general public who park their vehicles in an unauthorized manner
upon the property of a university shall be warned concerning their unauthorized parking
and, if they continue, or if such persons habitually park in such an unauthorized manner,
the vehicles so parked may be impounded by the institution and a reasonable fee exacted
for the cost of impoundment and storage.
D. Members of the general public who violate a rule adopted by the university
pursuant to subsection A of this section regarding the use of nonpedestrian devices shall
be warned of a violation and any nonpedestrian devices may be impounded by the university
and a reasonable fee may be exacted for the cost of impoundment and storage.
E. Any person who has received a final administrative ruling concerning a sanction
imposed upon him as a result of a violation of a rule pursuant to subsection A of this
section shall have the right to have that ruling reviewed by the superior court in the
county in which the institution involved is situated, in accordance with the provisions
of the administrative review act, title 12, chapter 7, article 6.
F. This section shall be considered supplemental in nature to the general common
law and statutory powers of institutions under control of the board as to the internal
control and activities of their students, faculty and staff.
G. An institution under the jurisdiction of the board of regents and which is
located in a vehicle emissions control area as defined in section 49-541 shall prohibit
the issuance of annual permits to park on property under its jurisdiction until the
applicant submits an affidavit or shows proof that his vehicle meets the requirements of
section 49-542.
H. For the purposes of this section, "nonpedestrian devices" includes bicycles,
tricycles, unicycles, skateboards, roller skates and equines.

15-1628 Powers and procedures pertaining to optional retirement programs
A. The ARIZONA board of regents may establish optional retirement programs under
which contracts providing retirement and death benefits may be purchased for members of
the faculty and administrative officers of the institutions under its jurisdiction. The
benefits to be provided for or on behalf of participants in the optional retirement
program shall be provided through annuity contracts, fixed or variable in nature, or a
combination thereof, or other retirement plans approved by the ARIZONA board of regents.
B. Elections to participate in the optional retirement programs shall be made as
follows:
1. Eligible employees initially appointed on or after August 9, 1974 shall elect to
become members of the ARIZONA state retirement system or to participate in an optional
retirement program established by the ARIZONA board of regents. The election shall be
made in writing and filed with the ARIZONA state retirement system and the disbursing
officer of the employing institution and shall be effective as of the effective date of
appointment. If an eligible employee fails to make an election as provided in this
paragraph, the eligible employee shall be deemed to have elected membership in the
ARIZONA state retirement system.
2. Eligible employees initially appointed before August 9, 1974 may elect to
participate in the optional retirement programs. The election shall be made in writing
and filed with the ARIZONA state retirement system and the disbursing officer of the
employing institution on or before December 14, 1974, shall become effective as of
January 1, 1975 and shall constitute a waiver of all benefits provided by the ARIZONA
state retirement system, except all such benefits as are expressly provided by law.
3. Any employee who becomes eligible may elect an optional retirement program. The
election shall be made in writing and filed with the ARIZONA state retirement system and
the disbursing officer of the employing institution within thirty days after notice in
writing to the employee of the employee's eligibility, and shall become effective on the
first day of the pay period following such election, and shall constitute a waiver of all
benefits provided by the ARIZONA state retirement system, except all such benefits as are
expressly provided by law.
4. Any eligible employee who is a member of the ARIZONA state retirement system at
the time the employee elects to participate in the optional retirement program shall
leave the funds in the employee's retirement account on deposit with the ARIZONA state
retirement system during the continuance of employment. Additional contributions to the
employee's retirement account shall not be required and continued service with the
ARIZONA board of regents or an institution under the jurisdiction of the ARIZONA board of
regents while under an optional retirement program shall be deemed to be member service
in the ARIZONA state retirement system for the purpose of determining eligibility for any
benefits under such system. The amount of any such benefits under such system shall be
computed only on the basis of service otherwise creditable to a member of the system and
the employee's compensation during such service. For purposes of subsection D of this
section, years of member service in the ARIZONA state retirement system shall count as
years of service under the optional retirement programs.
C. The ARIZONA board of regents shall contribute public funds appropriated or any
other funds available for such purpose on behalf of each participant in the optional
retirement programs in an amount equal to seven per cent of the participant's
compensation. Each participant shall also contribute an amount equal to seven per cent
of the participant's compensation. The appropriation to each university for purposes of
enabling the ARIZONA board of regents to make the contribution provided in this
subsection shall not exceed the employer contribution required under the ARIZONA state
retirement system as prescribed by title 38, chapter 5, article 2. Funds utilized by the
board of regents or by a university to pay that portion of the contribution that
represents the difference between the employer contribution as prescribed by title 38,
chapter 5, article 2 and the contribution rate provided in this subsection for an
optional retirement program do not constitute a use of appropriated monies for
supplemental retirement.
D. In the case of an electing employee initially appointed on or after August 9,
1974, contributions pursuant to subsection C of this section shall not be made by the
ARIZONA board of regents until the employee's completion of five years of
service. Employee contributions required during this initial five year period and during
continued service with an institution under the jurisdiction of the ARIZONA board of
regents shall be promptly remitted to the optional retirement programs approved by the
ARIZONA board of regents. At the end of an electing employee's completion of five years
of service, a single contribution in an amount determined pursuant to subsection C of
this section, with interest, shall be made by the chief financial officer of the
employing institution to the approved company or companies on behalf of such
employee. In the case of an electing employee who does not continue in service with an
institution under the jurisdiction of the ARIZONA board of regents for at least five
years, the amount of employer contributions, with interest, shall be refunded to this
state.
E. If an employee's service is terminated by death prior to the completion of five
years of service, a death benefit equal to the sums appropriated for such employee, plus
interest, shall be paid to the beneficiary designated by the participant under the
participant's optional retirement program.
F. The provisions of subsection D of this section shall not apply to any electing
employee who, at the time of initial appointment, owns a contract determined by the
ARIZONA board of regents to be acceptable for use in the optional retirement program.
G. The ARIZONA board of regents may provide for the administration of such optional
retirement programs and perform or authorize the performance of such functions as may be
necessary for such purposes. The ARIZONA board of regents shall approve the company or
companies from which benefits may be purchased under the optional retirement
programs. Such optional retirement programs shall not permit loans. In giving its
approval, the board shall consider:
1. The nature and extent of the rights and benefits to be provided for participants
and their beneficiaries.
2. The relation of such rights and benefits to the amount of contributions to be
made.
3. The suitability of such rights and benefits to the needs of the participants and
the interests of the institutions under its jurisdiction in the recruitment and retention
of faculty and administrative officers.
4. The ability of the approved company or companies to provide such suitable rights
and benefits.
H. Any eligible employee initially appointed after August 9, 1974, electing to
participate in the optional retirement programs, shall be ineligible for membership in
the ARIZONA state retirement system as long as the employee remains continuously employed
in any position by the ARIZONA board of regents or by an institution under its
jurisdiction, except as expressly provided by law.
I. The benefits, annuities and employee and employer contributions provided for in
this section, and all interest, earnings and other credits pertaining to such benefits,
annuities and contributions, shall not be subject to execution or attachment and shall be
nonassignable. The employee and employer contributions provided for in this section and
all interest, earnings and other credits pertaining to such contributions are exempt from
state, county and municipal taxes. The benefits and annuities received by an employee
under this section after December 31, 1988 are subject to tax pursuant to title 43.
J. Subject to amendment of the federal-state agreement provided for in section
38-702, every eligible employee electing to participate in the optional retirement
programs shall have old age, survivors and disability insurance coverage provided by the
federal social security act in accordance with the provisions of title 38, chapter 5,
article 1.

15-1629 Annual report
Within ninety days after the close of each fiscal year the ARIZONA board of regents
shall make a report for the fiscal year to the governor. The report shall set forth the
state of progress of the universities in their several colleges, schools and departments,
the courses of study included in their curricula, the number of professors, other
instructional faculty and staff members employed, the number of students registered and
attending classes, the amount of receipts and expenditures and such other information as
the board deems proper.

15-1630 Abortion at educational facility prohibited; exception
No abortion shall be performed at any facility under the jurisdiction of the ARIZONA
board of regents unless such abortion is necessary to save the life of the woman having
the abortion.

15-1631 State museum
A. There shall be a state museum for the collection and preservation of the
archaeological resources, specimens of the mineral wealth and the flora and fauna of this
state.
B. The ARIZONA board of regents shall direct and manage the museum and shall set
apart sufficient space to accommodate it.

15-1632 University property of expelled students; classification
A. A student who is expelled by a university shall surrender all university
property. The university shall refund the deposit for any property to the student.
B. An expelled student who fails or refuses to return university property is guilty
of a petty offense.

15-1633 Use of university resources or employees to influence elections; prohibition; civil penalty; definition
A. A person acting on behalf of a university or a person who aids another person
acting on behalf of a university shall not use university personnel, equipment,
materials, buildings or other resources for the purpose of influencing the outcomes of
elections. Notwithstanding this section, a university may distribute informational
pamphlets on a proposed bond election as provided in section 35-454. Nothing in this
section precludes a university from reporting on official actions of the university or
the ARIZONA board of regents.
B. Employees of a university may not use the authority of their positions to
influence the vote or political activities of any subordinate employee.
C. This section does not prohibit universities from permitting student political
organizations of political parties, including those that are recognized pursuant to
sections 16-801, 16-802 and 16-803, to conduct lawful meetings in university buildings or
on university grounds, except as prescribed in subsection A of this section. Each student
political organization that is allowed to conduct lawful meetings on university property
shall have equal access as any other student political organization that is allowed to
conduct lawful meetings on university property.
D. Nothing contained in this section shall be construed as denying the civil and
political liberties of any person as guaranteed by the United States and ARIZONA
Constitutions.
E. By January 1, 2006, the attorney general shall publish and distribute to the
ARIZONA board of regents a detailed guideline regarding activities prohibited under this
section. The attorney general may distribute these guidelines through a web site or
electronically.
F. The attorney general or the county attorney for the county in which an alleged
violation of this section occurred may serve on the person an order requiring compliance
with this section and may assess a civil penalty of not more than five hundred dollars
per violation, plus any amount of misused funds subtracted from the university budget
against a person who violates or a person who aids another person in violating this
section. The person determined to be out of compliance with this section shall be
responsible for the payment of all penalties and misused funds. University funds or
insurance payments shall not be used to pay these penalties or misused funds. All misused
funds collected pursuant to this section shall be returned to the university whose funds
were misused.
G. An attorney acting on behalf of a university may request a legal opinion of the
attorney general as to whether a proposed use of university resources would violate this
section.
H. All penalties collected by the court for a suit initiated in superior court by
the attorney general shall be paid to the office of the attorney general for the use and
reimbursement of costs of prosecution pursuant to this section. All penalties collected
by the court for a suit initiated in superior court by a county attorney shall be paid to
the county treasurer of the county in which the court is held for the use and
reimbursement of costs of prosecution pursuant to this section.
I. For the purposes of this section, "misused funds" means university monies or
resources used pursuant to subsection A of this section. 15-1634 Intergovernmental agreements; special assessments
A. Pursuant to section 48-582 or 48-920 or in conjunction with any street
improvement made pursuant to any other statute, the board on behalf of this state or any
university may enter into and shall be bound by intergovernmental agreements with one or
more cities, counties or improvement districts for the purpose of improving streets
adjacent to or running through university property by the construction of any or all of
the improvements authorized in either title 48, chapter 4, articles 1 and 2 or title 48,
chapter 6, article 1.
B. The agreement may provide that assessments may be levied against university
property to secure repayment of the cost of the improvements. So long as this state or
the board owns the land so assessed the assessment liens may not be enforced by sale or
foreclosure. The agreement may also provide that the university's share of any
incidental cost may be paid by the board from any available fund of that university. The
board shall pay or cause to be paid the installments of principal and interest coming due
on the assessments and may pledge for the payment thereof any monies of the respective
university which do not cause the agreement or assessment to become a debt of this state
under, or contrary to, any constitutional provision and which do not violate any contract
rights of any other person to be paid from the same source. The agreement shall provide
that the payments due under the agreement include any penalties and additional interest
that the owner of property subject to assessment would be required to pay on the
delinquency of an installment of principal or interest.
C. In the agreement the board may waive any formal requirement, notice or
prerequisite to levying an assessment.
D. If the board leases, long-term leases or sells any parcel subject to an
assessment, the board shall require that the lessee's or purchaser's initial payment be
in an amount at least sufficient to reimburse the board for the parcel's allocative share
of the monies previously expended to pay the assessment. The board shall return such
amount to be reimbursed to the source of the monies under subsection B of this section.
E. Upon the sale of any parcel subject to an assessment, the lien of the assessment
may be enforced by foreclosure and sale in the manner set forth in the respective statute
authorizing the levying of the assessment.

15-1635.01 Transfer of technology developed by universities; patent policies; officer or employee interest in private entity
A. To encourage sponsored research at institutions under the jurisdiction of the
ARIZONA board of regents and to encourage transfer of such technology to the private
sector, the ARIZONA board of regents shall consider the establishment of patent policies
which permit, on a case by case negotiated basis, either the giving of title or the
granting of licenses to the sponsor of the research.
B. Notwithstanding title 38, chapter 3, article 8, an officer or employee of an
institution under the jurisdiction of the ARIZONA board of regents may, subject to
subsection C, apply to the board for permission to establish and maintain a substantial
interest in a private entity which supplies equipment, material, supplies or services to
the institution in order to facilitate the transfer of technology developed by the
officer or employee of an institution under the jurisdiction of the board from the
institution to commercial and industrial enterprises for the economic development of this
state.
C. Before an officer or employee makes an application to the board pursuant to
subsection B, the officer or employee must receive the approval of the president of the
institution at which he is employed. The president of the institution may grant approval
and the officer or employee may submit the application to the board only if all of the
following conditions are met:
1. The officer or employee provides a detailed description of his interest in the
private entity to the president.
2. The nature of the private entity's proposed undertaking is fully described to
the president.
3. The officer or employee demonstrates to the satisfaction of the president that
the proposed undertaking will benefit the economy of this state by contributing to the
development of private enterprise.
4. The proposed undertaking does not violate any existing contracts.
5. The officer or employee demonstrates to the satisfaction of the president that
the proposed undertaking will not adversely affect research, public service or
instructional activities at the institution.
6. The officer's or employee's interest in the private entity or benefit from the
interest will not adversely affect any state interest.
D. The board may authorize an officer or employee of one of the institutions under
its jurisdiction to establish and maintain a substantial interest in a private entity if
all of the following conditions are met:
1. The application is approved by the president of the institution at which the
officer or employee is employed.
2. The application contains a detailed description of the officer's or employee's
interest in the private entity.
3. The application contains a detailed description of the private entity's proposed
undertaking.
4. The application demonstrates to the satisfaction of the board that the proposed
undertaking will benefit the economy of this state by contributing to the development of
private enterprise.
5. The proposed undertaking does not violate any existing contracts.
6. The application demonstrates to the satisfaction of the board that the proposed
undertaking will not adversely affect research, public service or instructional
activities at the institutions under the jurisdiction of the board.
7. The officer's or employee's interest in the private entity or benefit from the
interest will not adversely affect any state interest.
E. On recommendation of the board, the president of the institution at which the
officer or employee is employed may require that the institution have a share in any
royalties or other proceeds from the proposed undertaking of the private entity.
F. If the technology was developed solely using monies from a private sector
sponsor, the board shall not authorize an officer or employee of an institution under its
jurisdiction to establish and maintain a substantial interest in a private entity which
would exploit that technology unless the board determines that patent, licensing and
royalty rights are in accordance with the provisions of the agreement under which the
technology was developed.
G. The board may establish policies for the implementation of this section.

15-1635 University research development purposes; product development; corporations
A. In order to stimulate the flow of capital into the development of specific
products which have advanced beyond the theoretical stage and are capable of being
reduced to practice on a commercial scale, the board may by resolution organize one or
more corporations under the provisions of title 10. At least one-half of any voting
shares of each such corporation shall be held by the board, or a majority of the
directors, trustees or members of the corporation shall be designated or appointed by the
board. No member or employee of the board may receive any direct or indirect
compensation, other than reimbursement for actual expenses incurred in the performance of
his duties, by reason of serving as a member, director or trustee of a corporation
organized under this section.
B. No such corporation may be organized unless the board finds in its
organizational resolution that its formation will stimulate and encourage the development
of new products within this state in situations in which financial aid would not
otherwise be reasonably available from conventional lending sources. In addition to the
powers each corporation may have, each corporation may:
1. Enter into product development agreements with persons doing business in this
state, on such terms and conditions as are consistent with the research development
purposes of the board, to advance financial aid to such persons for the development of
specific products, procedures and techniques to be developed and produced in this state
and to condition such agreements on contractual assurances that the benefits of
increasing or maintaining employment and tax revenues shall remain in this state and
accrue to it.
2. Acquire, lease, purchase, manage, hold and dispose of real and personal property
in this state and lease, convey or deal in or enter into contracts with respect to such
property on any terms necessary or incidental to carrying out these research and
development purposes.
3. Hold patents, copyrights, trademarks or any other evidences of protection or
exclusivity as to any products issued under the laws of the United States or any state or
nation.
C. Before organizing such a corporation, the board shall develop a procedure for
applications for financial aid to be forwarded, together with an application fee
prescribed by the board, to the board. The board shall investigate and prepare a report
concerning the advisability of approving the proposed financial aid for such person and
concerning any other factors deemed relevant. The investigation and report shall include
such facts about the person under consideration as his history, wage standards, job
opportunities, stability of employment, past and present financial condition and
structure, pro forma income statements, present and future markets and prospects and
integrity of management as well as the feasibility of the proposed project to be granted
financial aid, including the state of development of the product as well as the
likelihood of its commercial feasibility. After receipt and consideration of the report
and after other action as is deemed appropriate, the board shall approve or deny the
application. The board shall promptly notify the applicant of such action. Approval
shall be conditioned on payment to the board, within such reasonable time after
notification of approval as the board may specify, of a commitment fee prescribed by the
board.
D. The board may receive and accept aid or contributions of monies from any source,
including gifts or grants from private sources or from any department or agency of the
United States or this state, for the purposes of carrying out the provisions of this
section.
E. The board may also enter into research and development agreements, royalty
agreements, development agreements, licensing agreements and profit sharing agreements
concerning the research, development, production, storing or marketing of new products
developed or to be developed through university research.

15-1636 Lease of real property and improvements in research park; prohibited and permitted uses
A. The board shall not lease real property located in an area designated as a
research park pursuant to section 35-701, paragraph 10 unless the lease contains a
covenant that prohibits unlimited manufacturing on the site and allows the board to
enforce the covenant by appropriate means, which may include termination of the lease.
B. The board may take title to and lease improvements constructed on land located
in an area defined as a research park pursuant to section 35-701, paragraph 10, if the
lease contains a covenant that restricts the use of the subject property to the uses
permitted under this section. The lease shall allow the board to enforce the covenant by
appropriate means, including termination of the lease. The board may lease unimproved
lots or parcels located in an area designated as a research park pursuant to section
35-701, paragraph 10, for any use by a lessee.
C. The requirements of subsection B of this section do not apply to improvements
constructed before the effective date of subsection B of this section or to a lease
entered into between the board and a lessee, subsidiary, successor, sublessee or assignee
of a lessee, who originally entered into any lease with the board before July 31, 1996.
D. The subject property may be used only for the following purposes:
1. Laboratories, offices and other facilities for testing, consulting and
information processing, related to research and development.
2. Production, assembly or sale of products pursuant to research and development
activities.
3. Pilot plants in which processes planned for use in production elsewhere can be
tested and assembled.
4. Regional or national headquarters of the lessee or its subsidiaries that are
engaged in research and development or education activities.
5. Education and training facilities.
6. Operations required to maintain or support any permitted use, including
maintenance shops, power plants, wastewater treatment facilities, the keeping of animals,
machine shops, common area improvements and facilities and professional and commercial
services supporting permitted uses, such as child development centers, food services and
post office and mailing centers.

15-1637 Lease of property for health care institution; requirements; conditions; reports; directors, members and officers of nonprofit corporation; definition
A. The ARIZONA board of regents may lease real property, improvements or personal
property owned by the board to a nonprofit corporation as lessee for purposes of
operating a health care institution as defined in section 36-401. If the board leases
such property for such purposes, whether title to improvements on the property rests in
the board or in the lessee, the lease agreement and any amendments, renewals or
extensions of the agreement shall be deemed binding and effective according to its
terms. If, under the provisions of the lease, improvements or personal property related
to the operation of a health care institution are conveyed to the nonprofit corporation,
they shall be presumed to have been conveyed for their then fair market value.
B. Any lease agreement entered into pursuant to subsection A of this section may,
at the discretion of the ARIZONA board of regents, contain provisions requiring the
nonprofit corporation to acquire the approval of the ARIZONA board of regents prior to
entering into any business transactions that may adversely affect the interests of this
state or that are contained in subsection G, paragraph 2 of this section. The ARIZONA
board of regents shall specify in the lease agreement the type and nature of such
transactions which require prior approval of the board.
C. To satisfy the requirements of section 103 of the internal revenue code, as
defined in section 43-105, any nonprofit corporation which is a lessee as described in
subsection A of this section is declared to be:
1. A validly organized and existing body politic and corporate exercising its
powers for the benefit of the people, to improve their health and welfare and to increase
their prosperity.
2. Engaged in a purpose essential to public health care.
3. Performing an essential governmental function.
D. Any nonprofit corporation which is a lessee as described in subsection A of this
section is exempt from property taxation by this state or any agency or subdivision of
this state and possesses and may exercise only those powers of the ARIZONA board of
regents which are delegated to the nonprofit corporation by the ARIZONA board of regents
and which are necessary to satisfy the requirements of section 103 of the internal
revenue code, as defined in section 43-105, as specified in the terms, conditions,
restrictions and agreements of the lease agreement. These powers are in addition to all
those powers granted to a nonprofit corporation by title 10, chapters 24 through 40.
E. Any nonprofit corporation which is a lessee as described in subsection A of this
section may issue bonds and incur obligations and pledge its revenues as security for the
payment of the bonds or other obligations for health care institutional purposes to the
extent provided by the lease agreement or amendments, renewals or extensions of the
agreement. Nothing in this section shall be construed to authorize the incurrence of a
debt by the state within the meaning of any constitutional restriction on debt.
F. Except as provided in subsection G of this section, any nonprofit corporation
which is a lessee as described in subsection A of this section may acquire by purchase,
lease or otherwise, and may operate, other health care institutions and real and personal
property for purposes of providing products and services related to the operation of
health care institutions owned, leased or operated by it. Such acquisition or operation
does not affect the powers, rights, privileges or immunities conferred on such nonprofit
corporation by this section.
G. No nonprofit corporation which is a lessee as described in subsection A of this
section shall:
1. Until September 1, 1986 enter into any agreement with a county or a nonprofit
corporation to which property is conveyed pursuant to section 11-256.03, subsection A if
the agreement provides for the conveyance of any ownership interest whatever in the
nonprofit corporation to which property is conveyed pursuant to section 11-256.03,
subsection A or in the property described in section 11-256.03, subsection A. After
August 31, 1986 any such agreement must be approved by the ARIZONA board of regents and
the legislature. This subsection does not prevent the grant of an option to purchase
such property, provided that the option may not be exercised before September 1, 1986 and
the exercise of the option must be approved by the ARIZONA board of regents and the
legislature. Under no circumstances shall any state general fund monies be used to
acquire any interest in such property.
2. Own, lease, manage or operate any other health care institution or other real or
personal property unless such acquisition, management or operation either:
(a) Relates to and furthers the educational or research purposes and goals of the
university of ARIZONA hospital.
(b) Promotes the efficient and economical operation of the university of ARIZONA
hospital or any other health care institution acquired pursuant to paragraph 1 of this
subsection.
H. A nonprofit corporation which is a lessee as described in subsection A of this
section may manage and operate property described in section 11-256.03, subsection A
subject to the restrictions of subsection G of this section. Any management or operation
agreement shall provide that the nonprofit corporation which is a lessee as described in
subsection A of this section shall not be liable for any bonds or other obligation of any
kind relating to the ownership or operation of the property described in section
11-256.03, subsection A incurred before the property is conveyed to such nonprofit
corporation in accordance with subsection G of this section.
I. A health care institution which is the subject of a lease agreement as described
in subsection A of this section is subject to section 15-1630.
J. A nonprofit corporation which is a lessee as described in subsection A of this
section shall make semiannual progress reports as to its financial status and deliver
them on January 1 and July 1 of each year to the ARIZONA board of regents, the president
of the senate, the speaker of the house of representatives and the governor. The
nonprofit corporation shall present an independently audited financial statement to the
auditor general within ninety days of the close of the previous fiscal year. The auditor
general shall review such statements and transmit them together with a report to officers
entitled to receive progress reports by this subsection.
K. Any nonprofit corporation which is a lessee as described in subsection A of this
section shall:
1. Be organized as a nonprofit corporation pursuant to title 10, chapters 24
through 40 only upon the approval of the ARIZONA board of regents.
2. Be governed by a board of directors, the members of which are appointed by the
ARIZONA board of regents, provided that no more than forty-nine per cent of the members
of such board of directors of the nonprofit corporation shall be officers or employees of
this state and of such forty-nine per cent only two members of such board of directors
may be members of the ARIZONA board of regents. Members of the ARIZONA board of regents
who are appointed to the board of directors of such nonprofit corporation shall be
residents of different counties unless all members of the board of regents are residents
of the same county.
3. Be organized under articles of incorporation or bylaws approved by the ARIZONA
board of regents which shall provide among other things that:
(a) No earnings of the nonprofit corporation shall inure to the benefit of or be
distributable to its members, directors, officers or other individuals, except that the
nonprofit corporation shall be authorized to pay reasonable compensation for services
rendered to it by individuals other than members of the board of directors of the
nonprofit corporation acting solely in such capacity, to reimburse expenses in connection
with services rendered to or expenses incurred on behalf of the nonprofit corporation and
to make payments and distributions in furtherance of the purposes of the nonprofit
corporation.
(b) Upon the dissolution or liquidation of the nonprofit corporation, the board of
directors of the nonprofit corporation shall, after paying or making provision for the
payment of all of the liabilities of the nonprofit corporation, distribute all of the
assets of the nonprofit corporation to the ARIZONA board of regents or its successor.
(c) Neither the articles of incorporation nor the bylaws of the nonprofit
corporation shall be amended without the approval of the ARIZONA board of regents.
(d) The board of directors of the nonprofit corporation may adopt nondiscriminatory
rules and regulations providing for the use of the university of ARIZONA hospital by, and
staff privileges for, any persons licensed under title 32, chapter 7, 13 or 17 whether or
not such persons have a faculty teaching appointment with the school of medicine,
providing, however, that such rules and regulations shall contain requirements sufficient
to protect the educational and research purposes and goals of the university of ARIZONA
hospital.
L. No member of the ARIZONA board of regents who is also a member or director of a
nonprofit corporation which is a lessee as described in subsection A of this section
shall as a regent vote upon any matter pertaining to such a corporation as may come
before the ARIZONA board of regents.
M. For the purposes of this section "nonprofit corporation" means a corporation as
defined in section 10-3140.

15-1638 Disclosure of records and other matters; exception; definition
A. A nonprofit corporation that is a lessee pursuant to section 15-1637, subsection
A shall disclose and make available records and other matters in the same manner as is
required of a public body pursuant to title 39, chapter 1, except that the nonprofit
corporation is not required to disclose or make available any records or other matters
that:
1. Identify the care or treatment of an individual patient who receives services
provided by the nonprofit corporation, including billings, unless the patient or
patient's representative consents in writing to the disclosure.
2. Reveal proprietary information provided to the nonprofit corporation by a
nongovernmental source.
3. Would cause demonstrable and material harm to the nonprofit corporation and that
would place it at a competitive disadvantage in the marketplace.
4. Would violate an exception, privilege or confidentiality granted or imposed by
statute or common law.
B. The provisions of this section do not apply to reports of statistical and
demographic data required by section 36-125.05.
C. In this section, "nongovernmental" means an entity other than the federal
government, an agency or instrumentality of the federal government or a public body as
defined in section 39-121.01.

15-1639 University recruitment and retention program for economically disadvantaged, minority and underrepresented student populations
A. The three universities under the jurisdiction of the board of regents shall each
establish a comprehensive plan to initiate new programs and expand existing student
recruitment and retention programs directed at economically disadvantaged, minority and
underrepresented student populations. The plan shall incorporate at least the following:
1. Programs which are directed at ARIZONA resident students and which include
outreach programs established to work with potential students at the high school level.
2. A program overview which illustrates the coordination between existing and new
recruitment and retention programs.
3. Methods for the evaluation of program impact and the establishment of target
goals for success. The results of these evaluations shall be reported to the board of
regents utilizing a standard format distributed by the board.
B. Monies appropriated for this program shall not be used to support remedial
course work.
C. Students admitted to the universities must meet the admission criteria
established by the board of regents.

15-1640 Public records exemption; intellectual property; historical records; donor records
A. The following records of a university under the jurisdiction of the ARIZONA
board of regents are exempt from the provisions of title 39, chapter 1, article 2:
1. Intellectual property that is a trade secret as defined in section 44-401 and
that is contained in any of the following:
(a) Unfunded grant applications or proposals.
(b) Proprietary data or research material provided to a university by a third party
who has an expectation that the data or material will remain confidential. In order to
qualify for the exemption prescribed in this subdivision, the intellectual property must
be provided to the university pursuant to a contract executed between the third party and
the university that meets all of the following requirements:
(i) The contract specifies that the intellectual property is being provided to the
university and that there is a need for confidentiality.
(ii) The contract is approved before the contract becomes effective by an official
of the university who is authorized to sign research contracts.
(iii) The contract includes the name or names of the third party, a general
description of the research or other work that is the subject of the contract in a manner
sufficient to provide the public with the information necessary to understand the nature
of that research or other work and a statement that the intellectual property that is the
subject of the contract will be conveyed by the third party to the university pursuant to
the terms of the contract.
(iv) The contract will become a public document that is subject to title 39,
chapter 1, article 2 when the contract is executed.
(c) Proprietary data or research material that is developed by persons employed by
a university, if the disclosure of this data or material would be contrary to the best
interests of this state.
2. Historical records and materials donated to a university by a private person or
a private entity, if restricted access is a condition of the donation. The exemption
provided by this paragraph shall expire no later than twenty years after the original
donation.
3. All records concerning donors or potential donors to a university, other than
the names of the donors and the description, date, amount and conditions of these
donations.
B. Any exemption provided by this section shall no longer be applicable if the
subject matter of the records becomes available to the general public.

15-1641 Collegiate special plate funds; purpose
A. The ARIZONA board of regents shall establish a separate collegiate special plate
fund for each university, as described in section 15-1601, consisting of monies received
by the board from collegiate plate annual donations pursuant to section 28-2412.
B. The board of regents shall require each university, as described in section
15-1601, to submit a plan for approval of the expenditure of monies in the appropriate
fund. All monies in the fund shall only be used for academic scholarships. Each
university shall annually report to the board of regents the percentage of monies that
was expended on behalf of minority applicants.
C. The board of regents may delegate to a state university foundation approved by
each university, as described in section 15-1601, the right to market and promote the
purchase of collegiate special plates. No dues, fees or charges except those specified
in section 28-2412 may be levied or collected by a state university foundation in
connection with collegiate special plates.
D. The fund established in this section is exempt from section 35-190, relating to
lapsing of appropriations. At the direction of the board the state treasurer may invest
and divest inactive monies in the fund as provided by section 35-313. The state
treasurer shall credit all interest earned on the fund monies to the fund.

15-1642 Financial aid trust fund; aid to students with verifiable financial need; endowment
A. The ARIZONA board of regents may establish a financial aid trust fund for the
purposes of providing immediate aid to students with verifiable financial need, including
students who are underrepresented in the population of university students or who by
virtue of their special circumstances present unique needs for financial aid, and
creating an endowment for future financial aid. Subject to the limitations provided in
subsection B, paragraph 3, the board may assess a surcharge upon registration fees paid
by students for deposit in the fund.
B. The board shall adopt rules to govern the financial aid trust fund, including
the following:
1. Fifty per cent of the monies received each year shall be placed in the trust
fund as a permanent endowment. The remaining monies received shall be used for immediate
aid for students with verifiable financial need. At least fifty per cent of the
immediate aid monies shall be used for grant aid.
2. The immediate aid monies shall be distributed to the universities on a pro rata
basis based on relative student contributions to the fund.
3. The surcharge on student registration shall not exceed one per cent of the
registration fee for students taking more than six credit surcharge hours. The surcharge
hours for students taking fewer than seven credit hours shall equal one-half the
surcharge assessed students taking more than six credit hours.
C. Monies raised pursuant to the surcharge on student registration shall be matched
by monies appropriated by the legislature.
D. The board shall report every three years to the legislature on the status of the
financial aid trust fund. The report shall include the use to which the monies have been
put and the impact of such use.
E. Fund monies shall only be used in university assistance programs approved by the
board and such monies shall be in addition to, and not in replacement of, existing state
or institutional financial aid monies. Assistance may be provided to full-time or
part-time students. Monies appropriated by this state shall not be used to provide
assistance to students who are not residents of this state.

15-1643 ARIZONA area health education system; centers; governing boards; duties
A. The ARIZONA board of regents shall establish the ARIZONA area health education
system in the college of medicine of the university of ARIZONA. The board shall appoint
a system director.
B. The system shall consist of five area health education centers administered by
the director of the ARIZONA area health education system. Each center shall represent a
geographic area with specified populations that the system determines currently lack
services by the health care professions.
C. The ARIZONA board of regents shall appoint a governing board for each center
consisting of not fewer than ten people and not more than twenty people. Board
membership shall consist of health care providers and consumers and shall reflect the
ethnic representation of the center's geographic area. Each governing board shall make
recommendations to the director regarding health professionals' educational needs, local
program priorities and the allocation of system monies. Board members are not eligible
to receive compensation or reimbursement of expenses.
D. Each center shall conduct:
1. Physician and other health professional education programs that consist of any
of the following:
(a) An undergraduate clinical training program.
(b) A graduate program.
(c) Postgraduate continuing education.
2. Programs to recruit and retain minority students in health professions.
3. Continuing education programs for health professionals.
E. The director shall submit a written report on or before November 15 of each year
to the governor, the president of the senate and the speaker of the house of
representatives. The report shall contain the following:
1. The fiscal status of each center.
2. Information regarding center education, outreach and training programs.
3. Information regarding placement of health care personnel in areas the director
determines are underserved by these professionals.
4. An assessment of system accomplishments.
5. Recommendations for possible legislative action.
F. The system shall provide expertise and administrative services to each center.

15-1644 Statewide commission; membership; qualifications; duties; compensation; staffing
A. The ARIZONA board of regents shall appoint a statewide area health education
centers commission consisting of not fewer than ten members and not more than twenty
members who are knowledgeable about the delivery of health care in this state. Members
of the commission shall advise the director on a regular basis on the management of the
system and on the expenditure of monies appropriated for the system.
B. Commission members serve at the pleasure of the ARIZONA board of regents and are
not eligible to receive compensation or reimbursement of expenses.
C. The ARIZONA area health education system shall provide staffing for the
commission.

15-1645 Health professions field scholarships; purpose; amount; repayment; definition
A. Each area health education center located in this state may grant and administer
a scholarship in an amount of not more than eight thousand dollars for each student for
each school year to at least two students who are residents of the center's geographic
area and who are enrolled in a health professions program at an ARIZONA university. The
scholarship shall be used to defray educational expenses including room and board.
B. A scholarship shall be granted on the condition that the student contractually
agree to practice in the center's geographic area for two years or one year of service
for each year of scholarship support, whichever is longer, after completing
post-graduation training. If the recipient withdraws from school, the recipient shall
repay all scholarship monies within one year of the withdrawal. If the student is
dismissed, an appropriate mechanism shall be negotiated to arrange repayment of the
remaining unforgiven balance with eight per cent interest.
C. For good cause a center may extend the time period for training prior to
scholarship repayment.
D. The ARIZONA board of regents shall waive all tuition and fees for students
granted a scholarship under this section if the legislature appropriates funds for this
purpose.
E. For the purposes of this section "health professions program" means enrollment
in a school of medicine, nursing, pharmacy or physical therapy.

15-1646 Board of regents and university scholarships
The state public universities under the jurisdiction of the ARIZONA board of regents
shall establish policies which assure fair and equitable access by ARIZONA students from
public, private, charter and home schools to scholarships, including tuition waivers,
which are issued solely on the basis of academic merit and for which the universities
establish and administer fair and equitable selection criteria. The universities under
the jurisdiction of the ARIZONA board of regents shall report annually to the board
information including the number of such scholarships issued on the basis of academic
merit to students from public, private, charter and home schools.

15-1647 Distribution of licensing and patent income; ARIZONA state university; report
A. Notwithstanding any other law, ARIZONA state university shall distribute the
gross or net income derived from the licensing and other revenues derived from patents
including anticancer, antiviral, antifungal or antimicrobial drug discoveries or
inventions, including up-front payments, royalties and any other subsequent or eventual
revenue attributable to commercialization.
B. The distribution of income received pursuant to subsection A shall be detailed
by ARIZONA state university in an audited annual report. ARIZONA state university shall
specify the expenditures and actual expenses in the audited annual report. The report
shall be distributed annually to the president of the ARIZONA board of regents, the
governor, the president of the senate, the speaker of the house of representatives, the
secretary of state and the department of library, archives and public records.

15-1648 Technology and research initiative fund; purpose
A. The technology and research initiative fund is established consisting of
revenues transferred to the fund pursuant to section 42-5029, subsection E, paragraph 2.
The ARIZONA board of regents shall administer the fund. The monies in the fund are
continuously appropriated to the ARIZONA board of regents for distribution pursuant to
this section and are exempt from the provisions of section 35-190 relating to lapsing of
appropriations.
B. The board shall adopt rules to administer the technology and research initiative
fund in accordance with this section. The board may allocate up to twenty per cent of the
monies in the fund to be used for capital projects relating to new economy initiatives,
including debt service, for the universities under its jurisdiction, pursuant to chapter
13, article 5 of this title.
C. The ARIZONA board of regents shall receive requests from the individual
universities and shall determine the amount and duration of each award. The criteria for
the evaluation of each request shall be as follows:
1. The award must be related to one of the following:
(a) A specific academic or research field.
(b) Designed to expand access to baccalaureate or post-baccalaureate education for
time-bound and place-bound students.
(c) To implement recommendations of the ARIZONA partnership for the new economy or
the governor's task force on higher education.
2. The award may be used to develop new and existing programs that will prepare
students to contribute in high technology industries located in this state.
3. The award may be used in conjunction with matching financial assistance from
private industry.
4. The ARIZONA board of regents shall give preference to requests that are
developed in conjunction with private industry, private entities or federal agencies.
D. The ARIZONA board of regents shall submit a report to the governor, the
president of the senate and the speaker of the house of representatives on September 1 of
each year on the technology and research award program and shall transmit a copy to the
secretary of state and the director of the ARIZONA state library, archives and public
records. The report shall include a description of the amount and duration of each new
award distributed and a description of the purpose and goals for each award. For existing
awards, the ARIZONA board of regents shall use a detailed set of performance measures to
determine the overall effectiveness of each award.

15-1649 Fingerprinting academic and nonacademic personnel; civil immunity; definitions
A. The finalist for a security or safety-sensitive position at a university that is
under the jurisdiction of the ARIZONA board of regents shall be fingerprinted as a
condition of employment. The finalist shall submit a full set of fingerprints to the
university for the purpose of obtaining a state and federal criminal records check
pursuant to section 41-1750 and Public Law 92-544. The department of public safety may
exchange this fingerprint data with the federal bureau of investigation.
B. A university may use information obtained pursuant to this section only for the
purpose of evaluating the finalists for employment in security or safety-sensitive
positions. A university may provide information received pursuant to this section to any
other university that is evaluating the finalist for employment if the university is
under the jurisdiction of the ARIZONA board of regents. A university may refuse to hire,
may rescind an offer of employment to or may review and terminate the employment of a
finalist or employee who has been convicted of or who has admitted committing any
criminal offense. A university that is considering terminating an employee pursuant to
this subsection shall provide due process to the employee in accordance with policies
adopted by the ARIZONA board of regents and the university before taking disciplinary
action.
C. A university that relies on information obtained pursuant to this section in
making employment decisions is immune from civil liability for use of the information
unless the information obtained is false and the university knows the information is
false or acts with reckless disregard of the information's truth or falsity.
D. A security or safety-sensitive position shall be identified as a security or
safety-sensitive position in the job description and in any advertisements for the
position.
E. For the purposes of this section:
1. "Finalist" means any person in the group of individuals actually submitted to
the hiring official for selection as a new hire or any employee of a university who seeks
a transfer, a reclassification or a reassignment to a security or safety-sensitive
position.
2. "Security or safety-sensitive position" means any position designated as a
security or safety-sensitive position by a university due to applicable federal or state
law or pursuant to rules or policies adopted by the ARIZONA board of regents or the
university. 15-1651 Teacher training schools
A. Every teacher training school established in connection with the state
universities shall be a part of the school system and a branch of the school district
within which the training school is located.
B. Training schools shall be governed by the laws and regulations relating to
schools except as otherwise provided in this article.
C. Students in the state universities may, under rules prescribed by the ARIZONA
board of regents, teach in the training schools and other schools without being
certificated teachers.

15-1652 Management and expenses
A. Every teacher training school shall be under the supervision and management of
the ARIZONA board of regents. All teachers in the school, except the principal, shall be
employed by the ARIZONA board of regents and the governing board of the school district
in which the training school is located, acting jointly.
B. The school district shall pay towards the expense of a teacher training school
an amount equal to one-half of the school monies which it is entitled to have apportioned
to it based on the student count at the training school during the preceding school year,
but pupils attending from another school district shall not be credited with enrollment
in the school district in which the university is located.

15-1653 Authority to prescribe rules governing admission and attendance
The ARIZONA board of regents and the governing board of the school district in which
a teacher training school is located shall jointly prescribe rules and regulations
governing admission and attendance at the training school of children of school age who
reside within the school district and governing all pupils in changing their attendance
from the training school to another school in the school district. The ARIZONA board of
regents may admit all children of school age residing within the school district who are
not then registered during that year for attendance at another school of the school
district for attendance at the training school up to such number as necessary for the
conduct of the training school.

15-1654 Qualifications for admission to teacher training program
On or before January 1, 1993, each university under the jurisdiction of the ARIZONA
board of regents shall establish qualifications for entrance into the teacher training
program of its respective colleges of education.

15-1661 Annual appropriation; enrollment audit; expenditure; balance; salaries
A. There shall be appropriated in the general appropriation bill for each fiscal
year a sum of monies not less than eighty-five one-hundredths of one mill on the dollar
of the assessed valuation of all taxable property in the state for the improvement,
support and maintenance of the institutions under the ARIZONA board of regents'
jurisdiction, including payment of salaries, current expenses, purchase of equipment,
making necessary repairs, construction of new buildings, purchase of lands and in general
for payment of all such expenses connected with the management of the institutions under
the ARIZONA board of regents' jurisdiction. The department of revenue, upon compiling the
aggregate assessed valuation of all taxable property within this state, shall compute the
amount of monies so determined and certify such amount over its seal to the department of
administration and the state treasurer.
B. The full-time equivalent student enrollment reported for the previous fiscal
year by each university shall be audited annually by the auditor general. The auditor
general shall report the results of the audit to the staffs of the joint legislative
budget committee and the governor's office of strategic planning and budgeting on or
before October 15 of each year. Beginning in 2006, on or before July 21 of each year,
each university shall provide a certified report to the auditor general of the number of
full-time equivalent students calculated by the university. The university's records used
to calculate full-time equivalent student enrollment shall be provided to the auditor
general in an electronic format prescribed by the auditor general. Beginning in 2006,
each university shall submit to the auditor general a summary of its full-time equivalent
student enrollment accounting policies and procedures, compilation procedures and source
records used for calculating full-time equivalent student enrollment. These accounting
policies and procedures, compilation procedures and source records shall comply with
policies developed on or before June 30, 2006 by the ARIZONA board of regents, in
consultation with the auditor general and reviewed by the joint legislative budget
committee. These policies shall include minimum requirements for students enrolled in
classes to qualify for appropriations pursuant to this section, including requirements
that the class be a for-credit course that is necessary for the completion of a degree
and that the student enrolled in the course be physically present in this state at the
time the course is conducted. The basic actual full-time equivalent student enrollment
shall be counted on the twenty-first day after the basic actual full-time equivalent
student enrollment classes begin for the fall semester, as published in the university
catalogs. Class rosters that reflect enrollment as of the twenty-first day shall be
provided by the registrar's office to each professor or instructor for every class
section. The class roster shall indicate the course number, course title, time,
instructor name and students enrolled. Each professor or instructor is required to review
the class roster and make additions or deletions as necessary. On the twenty-first day
class rosters, each professor or instructor shall indicate as withdrawn each student who
has formally withdrawn from the course, and that student shall not be counted for state
aid purposes. The official twenty-first day rosters shall include a manual signature and
date or an electronic authorization and date by the professor or instructor and shall
include the following certification:
I hereby certify that the information contained in this class roster
accurately reflects those students who are enrolled.
C. Students who have withdrawn or who have been withdrawn from classes as of the
twenty-first day shall not be counted for state aid purposes. A record shall be
maintained that identifies student withdrawals by date of withdrawal, as of the
twenty-first day and after the twenty-first day for the entire semester.
D. Amounts appropriated as provided by subsection A shall be paid as other claims
against this state are paid.
E. The balance of appropriations as provided by subsection A at the end of the
fiscal year, if any, shall not revert to the general fund but shall be carried forward
for the continued use for which appropriated.
F. Monies appropriated to a university under the jurisdiction of the ARIZONA board
of regents for cost of living salary increases for university employees shall be used to
provide cost of living salary increases to all university employees including graduate
student assistants. If monies are appropriated to a university for salary increases based
on merit, the monies shall be used to provide merit increases according to the merit pay
plan adopted by the ARIZONA board of regents.
G. The ARIZONA board of regents shall determine current actual full-time equivalent
student enrollment at each of the institutions under the jurisdiction of the ARIZONA
board of regents. Full-time equivalent student enrollment shall be calculated by adding
the following:
1. The total number of enrolled fall semester credit hours in 100-level credit
courses and 200-level credit courses divided by fifteen.
2. The total number of enrolled fall semester credit hours in 300-level credit
courses and 400-level credit courses divided by twelve.
3. The total number of enrolled fall semester credit hours in graduate level credit
courses divided by ten.
H. The legislature shall not appropriate monies supporting any student who is
enrolled at an institution under the jurisdiction of the ARIZONA board of regents who has
earned credit hours in excess of the credit hour threshold, except students whose chosen
program requires for a degree additional credit hours above the credit hour threshold.
For the purposes of this subsection, the credit hour threshold is one hundred fifty-five
hours in fiscal year 2006-2007, one hundred fifty hours in fiscal year 2007-2008 and one
hundred forty-five hours after fiscal year 2007-2008. 15-1662 Universities; funds and accounts
A. The state treasurer shall maintain the following separate permanent funds and
accounts:
1. Universities land fund. Distributions from the fund pursuant to article X,
section 7, Constitution of ARIZONA and all monies derived from the lease, sale or other
disposition of lands granted by the United States for the use and benefit of the
universities shall be deposited in the universities land fund as provided in this section
and section 37-522. Monies accruing to the universities under the laws of the United
States pertaining to timber lands shall be deposited in the universities timber land
account established by section 37-482, subsection B and may be used for the payment of
expenditures which the state land department incurs for the conservation, sale and other
administration of timber or timber products as provided in this section and sections
37-482 and 37-522.
2. Normal schools land fund. Distributions from the fund pursuant to article X,
section 7, Constitution of ARIZONA and all monies derived from the lease, sale or other
disposition of lands granted by the United States for the use and benefit of normal
schools shall be deposited in the normal schools land fund as provided in this section
and section 37-523.
3. Agricultural and mechanical colleges land fund. Distributions from the fund
pursuant to article X, section 7, Constitution of ARIZONA and all monies derived from the
lease, sale or other disposition of lands granted by the United States for the use and
benefit of agricultural and mechanical colleges shall be deposited in the agricultural
and mechanical colleges land fund as provided in this section and section 37-524.
4. School of mines land fund. Distributions from the fund pursuant to article X,
section 7, Constitution of ARIZONA and all monies derived from the lease, sale or other
disposition of lands granted by the United States for the use and benefit of schools of
mines shall be deposited in the school of mines land fund as provided in this section and
section 37-524.
5. Military institutes land fund. Distributions from the fund pursuant to article
X, section 7, Constitution of ARIZONA and all monies derived from the lease, sale or
other disposition of lands granted by the United States for the use and benefit of
military institutes shall be deposited in the military institutes land fund as provided
in this section and section 37-525.
B. The ARIZONA board of regents shall maintain a separate permanent fund to be
known as the universities fund. All monies other than those specified in subsection A
which are derived from the lease, sale or other disposition of lands or property which
are given by any person or by law as a trust fund to be administered by the board in
conformity with the terms of the gift shall be deposited in the universities fund. Such
monies shall be invested and administered as designated for the use of the universities
except such monies as are appropriated for specific purposes from the general fund of
this state for the use of the universities.
C. The state treasurer shall keep the monies of the land funds invested in safe
interest bearing securities and prudent equity pursuant to article X, section 7,
Constitution of ARIZONA and as provided by sections 35-313 and 35-314.01, and monies
earned from investment shall be credited to the funds.
D. Monies shall not be taken from one fund or deposited in any other fund nor shall
any fund or the income from the fund be taken or expended for any object other than that
of the original gift or appropriation. 15-1663 Expenditure of land funds; eminent scholars matching grant fund
A. Except as provided in subsection B of this section, the ARIZONA board of regents
may expend, as it deems expedient and as is not inconsistent with the provisions of any
appropriation, the income of the land funds established pursuant to the enabling act in
accordance with the purposes specified in the enabling act for each land fund specified
in section 15-1662.
B. Beginning with the 1998-1999 fiscal year, the universities land fund shall be
known as the eminent scholars matching grant fund and shall consist of the annual income
from the universities land fund. The eminent scholars matching grant fund shall be used
to provide to the universities matching monies for the interest earned on nonpublic
endowment monies donated to attract and retain eminent faculty. Appropriations to the
ARIZONA board of regents for the eminent scholars matching grant fund shall commence in
the 1998-1999 fiscal year. The eminent scholars matching grant fund shall be allocated
as follows:
1. Monies in the eminent scholars matching grant fund shall be used to supplement
and not supplant any other sources of monies for the universities. Monies shall be
allocated to each university on a dollar-for-dollar match basis. The amount allocated
shall be equal to the amount of interest earned in the previous calendar year by each
university on the nonpublic endowment monies donated from and after December 31, 1997
which are designated by the universities as being solely for the purpose of attracting
and retaining eminent faculty.
2. If the monies appropriated by the legislature for the eminent scholars matching
grant fund are greater than the amount of interest earned on the nonpublic endowment
monies designated by the universities for expenditure as provided in this subsection, the
board may allocate the excess monies as provided in subsection A of this section.
3. If the monies appropriated by the legislature for the eminent scholars matching
grant fund are less than the amount of interest earned on the nonpublic endowment monies
designated by the universities for expenditure as provided in this subsection, the board
shall allocate the monies to each university in a manner deemed appropriate.

15-1664 Expenditure of monies
All monies for the use and benefit of an institution under its jurisdiction shall be
expended under the direction and control of the ARIZONA board of regents for the support
and maintenance of such institution, buildings and grounds, and for any other purpose the
board deems expedient if not inconsistent with provisions of any appropriations.

15-1665 Acceptance of federal and other monies
The ARIZONA board of regents may accept grants of monies from the United States or
any of its officers or agencies designated or created to make grants for public
construction work, or from any individual, group of individuals, corporation or
association.

15-1666 Federal monies; deposit and expenditure
Monies obtained by the universities from the United States under special acts of
Congress for specific purposes shall be deposited in a special fund by the board, and it
shall be administered in accordance with the purpose of the act of Congress.

15-1667 Federal aid to experiment stations
The state assents to the provisions and accepts the benefits of the act of Congress
entitled "an act to authorize the more complete endowment of agricultural experiment
stations and for other purposes, approved February 24, 1925." The ARIZONA board of
regents is designated as a state board for the purposes of this section and is empowered
to cooperate with agencies of the federal government in administering the federal law.

15-1668 Deposits of universities monies to be secured; exception
A. Monies deposited by the universities shall be secured by regularly issued and
interest-bearing bonds of the United States government or state, county, municipal or
school district improvement bonds of this state of a market value equal at all times to
the amount of the deposits, and all public depositories are directed to give such
security.
B. The public depository may, in lieu of depositing bonds described in this
section, deposit the safekeeping receipt of a federal reserve bank or any bank located in
a central reserve city whose combined capital and surplus on the date of the safekeeping
receipt is ten million dollars or more, evidencing the deposit therein of such
securities. The safekeeping receipt shall be endorsed or assigned to the comptroller of
the respective institution making the deposit.
C. The condition of the deposit of securities, or a safekeeping receipt in lieu
thereof, shall be that the public depository will upon lawful demand therefor promptly
pay the monies in its custody to the institution making the deposit.
D. Notwithstanding the requirements of this section, any public depository under
the provisions of title 35, chapter 2 may accept deposits of public monies to the total
authorized insurance on accounts insured by the federal deposit insurance corporation or
the federal savings and loan insurance corporation without depositing a surety bond or
securities in lieu of such security bond.

15-1669 Payment of salaries; sick leave
A. The ARIZONA board of regents may provide for payment of annual salaries of any
person appointed or employed as provided in section 15-1626, subsection A, paragraph 2,
over a twelve month pay period pursuant to agreement between such person and the board.
B. The ARIZONA board of regents shall require institutions under its jurisdiction
as part of payroll reporting procedures to identify and report hours of sick leave earned
by any person appointed or employed as provided in section 15-1626, subsection A,
paragraph 2, and absences on account of sickness. Compensation paid to employees on
account of sickness shall be so identified in the accounting records of the institution.

15-1670 Appropriation for university research infrastructure facilities; definition
A. In fiscal years 2007-2008 through 2030-2031, the following sums are appropriated
each year from the state general fund to the respective universities for lease-purchase
capital financing for research infrastructure projects:
1. $14,472,000 to ARIZONA state university.
2. $14,253,000 to the university of ARIZONA.
3. $5,900,000 to northern ARIZONA university.
B. Lease-purchase financing agreements under subsection A of this section:
1. Must be entered into before July 1, 2006.
2. Are subject to the requirements of section 15-1682.01.
C. The appropriations under subsection A of this section constitute continuing
year-to-year appropriations but do not constitute an obligation of the legislature or
this state to continue the appropriation in any fiscal year. The annual appropriation is
a current expense of this state in the fiscal year in which it occurs and is not a
general obligation indebtedness of this state or of any university. If the appropriation
is discontinued in any fiscal year, this state and the university are relieved of any
subsequent obligation pursuant to this section.
D. Beginning in fiscal year 2007-2008 and in each subsequent fiscal year for which
an appropriation is made pursuant to subsection A of this section, each university shall
deposit no later than October 1 with the state treasurer in the state general fund an
amount equal to:
1. Twenty per cent of the income from licensure and royalty payments received by
the university during the preceding fiscal year.
2. Twenty-five per cent of the income received by the university during the
preceding fiscal year from the sale or transfer of intellectual property developed by the
university.
3. If a constitutional amendment authorizing ownerships and securities by the
ARIZONA board of regents is approved by the qualified electors voting at a statewide
general election, thirty per cent of the income received in the preceding fiscal year
resulting from the conveyance of ownership interests in business enterprises acquired to
develop technology or intellectual property based in whole or in part on the university's
research, technology or intellectual property.
E. The aggregate amount transferred in each fiscal year for deposit in the state
general fund by all universities from all sources listed under subsection D of this
section shall not exceed the aggregate amounts appropriated in that fiscal year under
subsection A of this section. If amounts under subsection D of this section would
otherwise exceed the limit prescribed by this subsection, the deposited amounts shall be
proportionately reduced for each university.
F. On or before October 1 of each year, each university shall report to the joint
legislative budget committee the total amount of income the university received in the
preceding fiscal year from each category of income that is subject to deposit pursuant to
subsection D of this section.
G. For the purposes of this section, "research infrastructure" means installations
and facilities for continuance and growth of scientific and technological research
activities at the university.

15-1681 Definitions
In this article, unless the context otherwise requires:
1. "Acquire" includes to purchase, lease, lease-purchase, erect, build, construct,
reconstruct, raze, remodel, repair, replace, alter, extend, expand, better, equip,
furnish, develop, improve and embellish a project, and the acquisition, preparation and
development of a site or sites therefor.
2. "Board" means the ARIZONA board of regents or its successor.
3. "Bonds" means any bonds issued pursuant to this article.
4. "Federal agency" means the United States of America, the president of the United
States of America, the department of housing and urban development or such other agency
or agencies of the United States of America as may be designated or created to make loans
or grants, or both.
5. "Institution" means the university of ARIZONA, ARIZONA state university and
northern ARIZONA university or any other college or university under the jurisdiction and
control of the board or its successor.
6. "Project" means and includes buildings, structures, areas and facilities which,
as determined by the board, are required by or necessary for the use or benefit of each
of such institutions, including, without limiting the generality of the foregoing,
student, faculty or staff housing facilities, residence halls, dormitories and
apartments; student union and recreational buildings and stadiums; other facilities for
student, faculty or staff services; any facility or building leased to the United States
of America; parking garages and areas; offices, classrooms, laboratories, dining halls
and food service facilities, libraries, auditoriums, or parts thereof, or additions or
extensions thereto; heating, lighting and other utility service facilities in connection
therewith, or parts thereof, or additions or extensions thereto; whether heretofore
acquired and now or hereafter used for any or all of the purposes aforesaid, or as may be
hereafter acquired under this article, with all equipment and appurtenant facilities; or
any one, or more than one, or all of the foregoing, or any combination thereof, for any
institution, including sites therefor.
7. "System of building facilities" means such project or projects as the board by
resolution shall collectively designate to be included in a system of building facilities
at each institution, either:
(a) Hereafter acquired for each of such institutions under the terms of this
article.
(b) Heretofore acquired for each of such institutions prior to May 17, 1974 under
the terms of any other law and now located on the campus of each of such institutions,
whether unencumbered by or encumbered by a pledge of and lien on the income and revenues
derived from the operation thereof for the payment of any bonds theretofore issued by the
board for the acquisition thereof.
(c) As provided in both subdivisions (a) and (b).
(d) Any combination of as provided in subdivisions (a), (b) and (c). 15-1682.01 Lease-purchase agreements
A. Any lease-purchase agreement executed by the board relating to land acquisition,
capital projects, energy systems or energy management systems shall provide that:
1. The obligation of this state to make any payment under the agreement is a
current expense of the board and is not a general obligation indebtedness of this state
or the board.
2. If the legislature fails to appropriate monies or the board fails to allocate
monies for any periodic payment or renewal term of the agreement, the agreement
terminates at the end of the current term and this state and the board are relieved of
any subsequent obligation under the agreement.
3. The joint committee on capital review shall review the project before the
lease-purchase agreement takes effect.
B. A lease-purchase agreement under this section shall comply with the constitution
and other laws of this state.


15-1682 Powers
The board shall have power for each institution, as defined in this article, to:
1. Acquire, if authorized by the legislature, any project or projects, or any
combination thereof, and to own, operate and maintain the same and establish, own,
operate and maintain a system of building facilities.
2. Acquire by purchase, contract, lease-purchase, lease or gift, and hold or
dispose of, real or personal property or rights or interest therein.
3. Accept grants, subsidies or loans of monies from a federal agency, or others,
upon such terms and conditions as may be imposed, and to pledge the proceeds of grants,
subsidies or loans of monies received or to be received from the United States of America
or any agency or instrumentality thereof, or others, pursuant to agreements entered into
between such board and the United States of America, or any agency or instrumentality
thereof, or others.
4. Borrow monies and issue bonds to acquire any one project, or more than one, or
any combination thereof, if authorized by the legislature, and to refund bonds heretofore
or hereafter issued to acquire any project or projects, or to refund any such refunding
bonds, or for any one, or more than one, or all of such purposes, or any combination
thereof, and to provide for the security and payment of such bonds and for the rights of
the holders thereof.
5. Make contracts and leases and execute all instruments and perform all acts and
do all things necessary or convenient to carry out the powers granted in this article.
6. Retain in its treasury:
(a) All monies received from the sale of all bonds issued under this article.
(b) All fees, tuitions, rentals and other charges from students, faculty, staff
members and others using or being served by, or having the right to use or the right to
be served by, or to operate, any project.
(c) All fees for student activities, student services and all other fees, tuitions
and charges collected from students matriculated, registered or otherwise enrolled at and
attending each institution pledged under the terms of any resolution authorizing bonds
pursuant to this article.
(d) All rentals from any facility or building leased to the United States of
America.

15-1683 Issuance of bonds
A. The board shall have power, and is hereby authorized from time to time, to issue
bonds:
1. To acquire any one project, or more than one, or any combination thereof, for
such institution, if both of the following conditions are met:
(a) As of the date of issuance of bonds or certificates of participation for any
institution, projected debt service on bonds and certificates of participation then
outstanding and proposed to be issued for such institution, as shown in the most recent
capital improvement plan reported to the board, may not exceed, in any fiscal year shown
in such capital improvement plan, more than eight per cent of such institution's total
projected expenditures and mandatory transfers. The calculation of compliance with this
condition shall be as set forth in and approved by the board in its adopted capital
improvement plan for such institution.
(b) The project to be acquired with the proceeds of the bonds is reviewed by the
joint committee on capital review.
2. To refund bonds heretofore and hereafter issued to acquire any project or
projects for such institution as hereinafter provided for.
3. To refund any such refunding bonds.
4. For any one, or more than one, or all of such purposes, or any combination
thereof.
B. All bonds shall be authorized by resolution of the board and may be issued in
one or more series, may bear such date or dates, may be in such denomination or
denominations, may mature at such time or times not exceeding the earlier of forty years
from the respective dates thereof or the useful life of the capital improvements, may
mature in such amount or amounts, may bear interest at such rate or rates as shall be
determined by the board, payable at such time or times, may be in such form, either
coupon or registered as to principal only or as to both principal and interest, may carry
such registration privileges, including the conversion of a fully registered bond to a
coupon bond or bonds and the conversion of a coupon bond to a fully registered bond, may
be executed in such manner, may be made payable in such medium of payment, at such place
or places within or without the state, and may be subject to such terms of redemption
prior to their expressed maturity, with or without premium, as such resolution or other
resolutions may provide. All bonds issued under this article shall be sold as the board
shall determine. Such resolution may provide that one of the officers of the board shall
sign such bonds manually and that the other signatures may be printed, lithographed,
engraved or otherwise reproduced thereon. The coupon bonds shall be fully negotiable
within the meaning of the uniform commercial code, title 47. 15-1684 Refunding bonds
The board shall have power, and is hereby authorized from time to time, to issue
refunding bonds:
1. To refund unpaid matured bonds.
2. To refund unpaid matured coupons evidencing interest upon its unpaid matured
bonds.
3. To refund interest at the coupon rate upon its unpaid matured bonds that has
accrued since the maturity of those bonds, provided that such refunding bonds may be
exchanged for the bonds to be refunded on a par for par basis of the bonds, interest
coupons and interest not represented by coupons, if any, or may be sold at not less than
par, or may be exchanged in part and sold in part, and the proceeds received at any such
sale shall be used to pay the bonds, interest coupons and interest not represented by
coupons, if any, and all bonds and interest coupons which have been received in exchange
or paid shall be cancelled and the obligation for interest not represented by coupons
which has been discharged shall be evidenced by a written acknowledgment of the exchange
or payment thereof.
4. To refund bonds at or prior to their maturity or which by their terms are
subject to redemption before maturity, or both, in an amount necessary to refund the
principal amount of the bonds to be refunded, the interest to accrue up to and including
the maturity date or dates or to the next succeeding redemption date thereof, and the
applicable redemption premiums, if any, and may be exchanged for not less than an equal
principal amount of bonds to be refunded or may be sold as the board shall determine, or
may be exchanged in part and sold in part, and all proceeds received at the sale thereof,
excepting the accrued interest received, shall be used:
(a) If the bonds to be refunded are then due, for the payment thereof.
(b) If the bonds to be refunded are voluntarily surrendered with the consent of the
holder or holders thereof, for the payment thereof.
(c) If the bonds to be refunded are then subject to prior redemption at the option
of the board and if such option has been exercised, for the redemption thereof.
(d) If the bonds to be refunded are not then subject to payment or redemption, or
if the bonds are subject to prior redemption and the board chooses to defer exercising
the option to a later date or chooses to exercise the option at any prior redemption date
and sets the date for such redemption or chooses not to exercise such option, to invest
the proceeds received at the sale in obligations issued by or guaranteed by the United
States of America or any department, agency or instrumentality thereof, that will mature
at such time or times, with interest thereon or the proceeds received therefrom, to
provide funds adequate to pay when due or called for redemption prior to maturity the
bonds to be refunded, or the bonds issued to refund the bonds to be refunded, together
with the interest accrued thereon and any redemption premium due thereon, and such
proceeds or obligations of the United States of America shall, with all other funds
legally available for such purpose, be deposited in escrow with a banking corporation or
national banking association with power to accept and execute trusts, or any successor
thereto, which is also a member of the federal deposit insurance corporation and of the
federal reserve system, to be held in an irrevocable trust solely for and until the
payment and redemption of the bonds so to be refunded, and any balance remaining in such
escrow after the payment and retirement of the bonds to be refunded shall be used and
held for use by such board as revenues pledged for the payment of such refunding bonds.
(e) For any combination thereof as provided in subdivisions (a) through (d).

15-1685 Security of bonds
In connection with the issuance of any bonds under this article, and in order to
secure the payment of any such bonds and the interest thereon, the board shall have power
for each institution:
1. To fix, maintain and collect:
(a) Fees, tuitions, rentals and other charges from students, faculty, staff members
and others using or being served by, or having the right to use or the right to be served
by, or to operate, any project or system of institution building facilities.
(b) Fees for student activities, student services and all other fees and charges
from students matriculated, registered or otherwise enrolled at and attending each such
institution.
(c) Rentals from any facility or building leased to the United States of America,
the aggregate of which shall be sufficient at all times to pay the bonds at maturity and
accruing interest thereon in accordance with their terms, and to create and maintain all
reserves therefor as provided by the resolution authorizing such bonds, and to pay all
necessary expenses of the operation and maintenance of any project and system of building
facilities.
2. To provide that bonds issued under this article shall be payable from and
secured by a pledge of and lien on all or any part of the income and revenues derived
from, and to pledge and assign to, or in trust for the benefit of, the holder or holders
of bonds issued under this article all or any part of the income and revenues derived
from:
(a) Fees, tuitions, rentals and other charges from students, faculty, staff members
and others using or being served by, or having the right to use or the right to be served
by, or to operate, any project or system of building facilities.
(b) Fees for student activities, student services, and all other fees and charges
collected from students matriculated, registered or otherwise enrolled at and attending
each such institution.
(c) Rentals from any facility or building leased to the United States of America,
except that, if such board provides that any bonds issued under this article shall also
be payable from the income and revenues of any project heretofore acquired for each such
institution, any such provision for the payment of such bonds from the income and
revenues of any such project heretofore acquired for each such institution shall be
subject to, and in all respects in full conformity and compliance with, the rights of the
holders of any bonds or obligations payable from the income and revenues of any such
project heretofore issued for each institution and then outstanding.
(d) Interest and earnings on investments.
3. To covenant with or for the benefit of the holder or holders of the bonds issued
under this article that so long as any such bonds shall remain outstanding and unpaid the
board will fix, maintain and collect in such installments as may be agreed upon:
(a) Fees, rentals and other charges from students, faculty, staff members and
others using or being served by, or having the right to use or the right to be served by,
or to operate any project or system of building facilities.
(b) Fees for student activities, student services and all other fees from students
matriculated, registered or otherwise enrolled at and attending each institution pledged
under the terms of any resolution authorizing bonds pursuant to this article.
(c) Rentals from any facility or building leased to the United States of America,
the aggregate of which shall be sufficient at all times to pay the proportionate share of
the bonds at maturity and accruing interest thereon in accordance with their terms and to
create and maintain all reserves therefor as provided by the resolution authorizing such
bonds until such bonds and accruing interest have been paid in accordance with their
terms and to pay all necessary expenses of the operation and maintenance of any project
or system of building facilities.
4. To covenant with or for the benefit of the holder or holders of bonds issued
under this article as to all matters deemed advisable by the board, including:
(a) The purposes, terms and conditions for the issuance of additional parity or
junior lien bonds that may thereafter be issued, and for the payment of the principal,
redemption premiums and interest on such bonds.
(b) The kind and amount of all insurance to be carried, the cost of which shall be
charged as an operation and maintenance expense of any project or system of building
facilities.
(c) The operation, maintenance and management of any project or system of building
facilities to assure the maximum use and occupancy thereof; the accounting for, and the
keeping of records, reports and audits of, all income and revenue from, and all expenses
of, any project or system of building facilities; and the employment of engineers and
consultants.
(d) The obligation of the board to maintain any project or system of building
facilities in good condition and to operate the same at all times in an economical and
efficient manner.
(e) The terms and conditions for creating and maintaining sinking funds, reserve
funds and such other special funds as may be created in the resolution authorizing such
bonds, separate and apart from all other funds and accounts of such board and each
institution.
(f) The procedure by which the terms of any contract with the holders of the bonds
may be amended, the amount of the bonds the holders of which must consent thereto and the
manner in which consent may be given.
(g) Providing the procedure for refunding such bonds.
(h) Such other covenants as may be deemed necessary or desirable to assure a
successful operation of any project or system of building facilities and the prompt
payment of the principal of and interest upon the bonds so authorized.
5. To make and enforce and agree to make and enforce parietal rules that shall
insure the use of any project or system of building facilities to the maximum extent to
which the same is capable of serving students, faculty, staff members and others using or
being served by, or having the right to use or the right to be served by, or to operate,
any project or system of building facilities.
6. To covenant that so long as any of the bonds issued under this article shall
remain outstanding and unpaid it will not, except upon such terms and conditions as may
be determined:
(a) Voluntarily create or cause to be created any debt, lien, mortgage, pledge,
assignment, encumbrance or other charge having priority to the lien of the bonds issued
under this article upon any of the income and revenue derived from:
(i) All fees, rentals and other charges from students, faculty, staff members and
others using or being served by, or having the right to use or the right to be served by,
or to operate, any project or system of building facilities.
(ii) Fees for student activities, student services and all other fees collected
from students matriculated, registered or otherwise enrolled at and attending each
institution.
(iii) All rentals from any facility or building leased to the United States of
America.
(b) Convey or otherwise alienate any project or the real estate upon which such
project shall be located, except at a price sufficient to pay all the bonds issued for
such project then outstanding and interest accrued thereon, and then only in accordance
with any agreements with the holder or holders of such bonds.
7. To vest in a trustee or trustees the right to receive all or any part of the
income and revenue pledged and assigned to or for the benefit of the holder or holders of
bonds issued under this article, and to hold, apply and dispose of the same and the right
to enforce any covenant made to secure or pay or in relation to the bonds; execute and
deliver a trust agreement or trust agreements which may set forth the powers and duties
and remedies available to such trustee or trustees and limiting the liabilities thereof
and describing what occurrences shall constitute events of default and prescribing the
terms and conditions upon which such trustee or trustees or the holder or holders of any
specified amount or percentage of such bonds may exercise such rights and enforce any and
all such covenants and resort to such remedies as may be appropriate.
8. To covenant to perform any and all acts and to do any and all such things as may
be necessary or convenient or desirable in order to secure its bonds, or as may in the
judgment of the board tend to make the bonds more marketable, notwithstanding that such
acts or things may not be enumerated herein, it being the intention hereof to give the
board issuing bonds pursuant to this article power to make all covenants, to perform all
acts and to do all things not inconsistent with the Constitution of ARIZONA.

15-1686 Effect on bonds authorized but unissued
All acts granting authority to the board to construct or acquire any buildings,
projects or facilities and to issue bonds therefor shall be kept in full force and effect
but shall be supplemented by this enactment if both of the following occur:
1. Bonds remain authorized but not sold and the land, project, buildings or
facilities have not been fully acquired or constructed.
2. Due to the issuance of bonds authorized by this article, any revenues which
otherwise would have been used to secure the unissued bonds, in whole or in part, have
been applied to payment of bonds authorized by this article, then the board may issue the
remaining bonds so authorized solely for the purposes of acquiring or constructing or
completing the acquisition and construction of the projects heretofore authorized as
parity bonds, notwithstanding the fact that the acts authorizing such additional bonds
may limit the revenues available to be pledged for their repayment to specified revenues
of the board.

15-1687 Enforcement of contract
The provisions of this article and of any resolution or other proceeding authorizing
the issuance of bonds shall constitute a contract with the holders of such bonds and the
provisions thereof shall be enforceable either in law or in equity, by suit, action,
mandamus or other proceeding in any court of competent jurisdiction to enforce and compel
the performance of all duties required by this article, and by any resolution authorizing
the issuance of bonds adopted responsive hereto.

15-1688 Monies of the board
No monies derived from the sale of bonds issued under the provisions of this article
or pledged or assigned to or in trust for the benefit of the holder or holders of the
bonds shall be required to be paid into the state treasury but shall be invested in
obligations issued by or guaranteed by the United States or any of the senior debt of its
agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities,
or shall be deposited by the treasurer or other fiscal officer of the board in such bank
or banks or trust company or trust companies as may be designated by the board, and all
deposits of such monies shall, if required by the board, be secured by obligations of the
United States of a market value equal at all times to the amount of such monies on
deposit. Such monies shall be disbursed as may be directed by the board and in
accordance with the terms of any agreements with the holder or holders of any
bonds. This section shall not be construed as limiting the power of the board to agree
in connection with the issuance of any of its bonds as to the custody and disposition of
the monies received from the sale of such bonds or from the income and revenues pledged
or assigned to or in trust for the benefit of the holder or holders of the bonds.

15-1689 Validity of bonds
The bonds bearing the signatures of officers of the board in office on the date of
the signing thereof shall be valid and binding obligations, notwithstanding that before
the delivery thereof and payment therefor any or all persons whose signatures appear
thereon shall have ceased to be such officers. The validity of the bonds shall not be
dependent on nor affected by the validity or regularity of any proceedings to acquire any
project financed by the bonds, or to refund outstanding bonds, or taken in connection
therewith.

15-1690 Prohibitions against obligating state of ARIZONA
Nothing in this article shall be construed to authorize the board to contract a debt
on behalf of, or in any way to obligate, the state of ARIZONA, or to pledge, assign or
encumber in any way, or to permit the pledging, assigning or encumbering in any way, of
appropriations made by the legislature or revenue derived from the investment of the
proceeds of the sale and from the rental of such lands as have been set aside by the
enabling act approved June 20, 1910, or other legislative enactments of the United
States, for the use and benefit of the board or the institution.

15-1691 Bonds; obligations of board
All bonds issued pursuant to this article shall be obligations of the board issuing
such bonds, payable only in accordance with the terms thereof, and shall not be
obligations general, special or otherwise of the state of ARIZONA. Such bonds shall not
constitute a debt, legal or moral, of the state of ARIZONA, and shall not be enforceable
against the state, nor shall payment thereof be enforceable out of any funds of the board
or the institution issuing such bonds other than the income and revenue pledged and
assigned to, or in trust for the benefit of, the holder or holders of such bonds.

15-1692 Certification of bonds by attorney general
The board may submit to the attorney general of the state of ARIZONA any bonds to be
issued hereunder after all proceedings for the issuance of such bonds have been
taken. Upon the submission of such proceedings to the attorney general, it shall be the
duty of the attorney general to examine into and pass upon the validity of such bonds and
the regularity of all proceedings in connection therewith. If such proceedings conform
to the provisions of this article and such bonds when delivered and paid for will
constitute binding and legal obligations of the board enforceable according to the terms
thereof, the attorney general shall certify in substance upon the back of each of such
bonds that it is issued in accordance with the constitution and laws of the state of
ARIZONA.

15-1693 Bonds as legal investments
The state and all counties, cities, towns and other municipal corporations,
political subdivisions and public bodies, and public officers of any thereof, all banks,
bankers, trust companies, savings banks and institutions, building and loan associations,
investment companies and other persons carrying on a banking business, all insurance
companies, insurance associations and other persons carrying on an insurance business and
all executors, administrators, guardians, trustees and other fiduciaries may legally
invest any debt service funds, monies or other funds belonging to them or within their
control in any bonds issued pursuant to this article, it being the purpose of this
section to authorize the investment in such bonds of all debt service, insurance,
retirement compensation, pension and trust funds, whether owned or controlled by private
or public persons or officers, except that nothing contained in this section may be
construed as relieving any person, firm or corporation from any duty of exercising
reasonable care in selecting securities for purchase or investment.

15-1694 Excision of unconstitutional and ineffective parts of article
It is hereby declared that the sections, clauses, sentences and parts of this
article are severable, are not matters of mutual essential inducement and any of them may
be excised by any court of competent jurisdiction if this article would otherwise be
unconstitutional or ineffective. It is the intention of this article to confer upon the
board the whole or any part of the powers in this article provided for, and if any one or
more sections, clauses, sentences or parts of this article shall for any reason be
questioned in any court of competent jurisdiction and shall be adjudged unconstitutional
or invalid, such judgment shall not affect, impair or invalidate the remaining provisions
thereof but shall be confined in its operation to the specific provision or provisions so
held unconstitutional or invalid, and the inapplicability or invalidity of any section,
clause, sentence or part of this article in any one or more instances shall not be taken
to affect or prejudice its applicability or validity in any other instance.

15-1695 Supplemental nature of article; construction and purpose
The powers conferred by this article shall be in addition to and supplemental to the
powers conferred by any other law, general or special, and bonds may be issued under this
article notwithstanding the provisions of any other such law and without regard to the
procedure required by any other such laws. Insofar as the provisions of this article are
inconsistent with the provisions of any other law, general or special, the provisions of
this article shall be controlling.

15-1721 Definitions
In this article, unless the context otherwise requires:
1. "Board" means the board of medical student loans.
2. "GDP price deflator" means the average of the four implicit price deflators for
the gross domestic product reported by the United States department of commerce for the
four quarters of the calendar year.
3. "Medically underserved area" means an area of this state designated by the
department of health services pursuant to title 36, chapter 24, article 1 or by federal
law.
4. "Medically underserved population" means an area designated by the United States
department of health and human services.
5. "Rural" means either of the following:
(a) A county with a population of less than four hundred thousand persons.
(b) A census county division with less than fifty thousand persons in a county with
a population of at least four hundred thousand persons. 15-1722 Board of medical student loans; members; terms; officers; compensation
A. The board of medical student loans is established and consists of the following
eight members:
1. Two members who are appointed by the chairman of the ARIZONA medical board.
2. Three who are members appointed by the governor and who are knowledgeable in the
problems of health care in ARIZONA.
3. One member who is appointed from the staff of the college of medicine of the
university of ARIZONA and who is appointed by the president of the university of ARIZONA.
4. One member who is licensed pursuant to title 32, chapter 17 and who is appointed
by the board of osteopathic examiners in medicine and surgery.
5. The director of the department of health services or the director's designee who
is the ex officio nonvoting eighth member of the board.
B. The terms of members are four years beginning on the third Monday in January.
C. The board shall select a chairman and vice-chairman and such other officers as
it deems necessary.
D. Board members shall be compensated as determined pursuant to section 38-611.
15-1723 Medical student loans; amount; qualifications; requirements
A. The board may grant loans from the medical student loan fund established by
section 15-1725 to defray the expenses of the medical education of those students at a
public or private school of medicine in this state who intend to enter and complete a
residency program approved by the accreditation council for graduate medical education or
by the American osteopathic association to become board certified in family practice,
general pediatrics, obstetrics and gynecology, general internal medicine, or combined
medicine and pediatrics and who are deemed qualified by the board to receive such loans.
Loans shall be granted upon such terms and conditions as may be imposed by the
board. One of the qualifications shall be ARIZONA residency, which shall be determined
according to the same criteria prescribed for in-state student status in section
15-1802. The board may grant forty loans each year.
B. The loans granted by the board shall provide for each student tuition plus a
living allowance. Beginning in 2003-2004 and continuing each year thereafter, the living
allowance shall be no more than sixteen thousand dollars for each student per year
adjusted by the percentage change in the GDP price deflator from the second preceding
calendar year to the calendar year immediately preceding the current year.
C. The board shall make a full and careful investigation of the ability, character
and qualification of each applicant through a written application and interview process
and determine the applicant's fitness to become a loan recipient. The investigation of
each applicant shall include an examination of the ability of the applicant to pay the
expenses of a medical education. The board shall give preference to qualified applicants
who are unable to pay the expenses of obtaining a medical education and to qualified
applicants who demonstrate a commitment to serve in an area listed in subsection E of
this section.
D. The services to be performed are service to the state by practicing general
practice, family practice, general pediatrics, combined medicine and pediatrics,
obstetrics and gynecology, or general internal medicine in an area listed in subsection E
of this section. The service location is subject to approval by the board.
E. The board may approve service in any of the following locations:
1. A rural and medically underserved area of this state.
2. A medically underserved area of this state.
3. A medically underserved population of this state.
4. Any Indian reservation that is located in this state.
F. The board may specify an area listed in subsection E of this section in the
student's contract to permit the student to seek employment in that area as a physician.
After the area is specified by the board, that area shall be designated in the student's
subsequent contracts as an approved area and as an approved service location.
G. The board shall collect and maintain data on the retention of doctors who
practice in an area listed in subsection E of this section. The board shall collect this
data for at least ten years after each loan recipient completes the recipient's service
commitment.
H. Private schools of medicine shall reimburse the university of ARIZONA for any
administrative costs related to the processing of loans for students at private schools
of medicine pursuant to subsection A of this section.


15-1724 Medical student loans; interest; obligations; penalty; authority of attorney general
A. Each applicant who is approved for a loan by the board may be granted a loan for
a period of up to five years.
B. The loans shall bear interest at the rate of seven per cent per year.
C. Each loan shall be evidenced by a contract between the student and the board,
acting on behalf of this state. The contract shall provide for the payment by the state
of a stated sum or sums defraying the costs of a medical education at a public or private
school of medicine in this state and shall be conditioned upon the contractual agreement
by the recipient of such loan to complete the service required by section 15-1723. The
contract shall provide that the recipient serving as a physician in an area listed in
section 15-1723, subsection E may receive compensation from the board for such service
and other services designated in the contract which compensation shall be credited
against amounts due under the loan and shall not exceed the amount of the loan and any
interest accrued on the loan. Such service shall be full time as determined by the board
and shall be for two years or one year of service for each year of loan support,
whichever is longer. A loan and the interest accrued thereon may be fully paid with
compensation received for services as required by the contract or at the option of the
recipient by payment of all monies, interest and penalties for failure to fulfill the
contract.
D. A loan recipient shall begin the service for which the recipient contracted as a
condition of the loan within three years of completion of the recipient's undergraduate
medical education unless extended to four years by the board. A recipient who is ordered
into military service or for other cause beyond the recipient's control deemed sufficient
by the board is unable to commence the required service within three years of such
graduation shall begin service within one year after completing military service or the
termination of such other cause.
E. If a recipient decides not to fulfill the conditions of the contract by serving
in an area listed in section 15-1723, subsection E, the contract shall provide that the
recipient shall be required to repay the full amount borrowed, including tuition, at the
seven per cent interest rate plus a penalty for liquidated damages in an amount
equivalent to the full amount borrowed, including tuition, less the amount credited for
time actually served in a site approved by the board, to be calculated on a prorated
monthly basis. The board for good reason may provide for extensions of the period of
repayment specified in the loan recipient's contract. The board may waive the payment of
principal, interest and liquidated damages if it determines that death or permanent
physical disability accounts for the recipient's failure to fulfill the contract.
F. If a recipient withdraws or is dismissed from medical school, the recipient
shall be required to repay the loan to the board with interest with no penalty within one
year of withdrawal. The board may for good reason provide for extensions on the period of
repayment.
G. On receipt of supporting documentation, the board for good cause shown may defer
the loan recipient's service or payment obligation or may enter into repayment
arrangements with the loan recipient or allow service that is equivalent to full-time
service if the board determines that this action is justified after a review of the
individual's circumstances.
H. The attorney general may commence whatever actions are necessary to enforce the
contract and achieve repayment of loans provided by the board pursuant to this article.


15-1725 Medical student loan fund
A. The medical student loan fund is established. All monies appropriated to carry
out the provisions of sections 15-1723 and 15-1724 shall be deposited in the fund, and
all payments of principal and interest received by the board shall be deposited, pursuant
to sections 35-146 and 35-147, in the fund. Monies in the fund are subject to legislative
appropriation.
B. Monies in the medical student loan fund are exempt from the provisions of
section 35-190 relating to lapsing of appropriations. 15-1726 Medical student scholarships; amount; qualifications; requirements
A. The board may grant scholarships to first year medical students who intend to
enter and complete a residency program approved by the accreditation council for graduate
medical education or by the American osteopathic association to become board certified in
family practice, general pediatrics, obstetrics and gynecology, general internal
medicine, or combined medicine and pediatrics and who are deemed qualified by the board
to receive such scholarships, from the medical student scholarship fund established by
section 15-1728 to defray the expenses of medical education at a public or private school
of medicine in this state. Scholarships shall be granted upon such terms and conditions
as may be imposed by the board. One of the qualifications shall be ARIZONA residency,
which shall be determined according to the same criteria prescribed for in-state student
status in section 15-1802. Preference shall be given to applicants who commit to an
ARIZONA residency program.
B. The scholarships granted by the board shall provide for each student tuition
plus a living allowance. The living allowance shall be no more than sixteen thousand
dollars for each student per year adjusted by the percentage change in the GDP price
deflator from the second preceding calendar year to the calendar year immediately
preceding the current year.
C. The board shall make a full and careful investigation of the ability, character
and qualification of each applicant through a written application and interview process
and determine the applicant's fitness to become a scholarship recipient. The
investigation of each applicant shall include an examination of the prior academic and
extracurricular performance of the applicant. The board shall give preference to
qualified applicants who demonstrate superior academic and extracurricular merit and to
qualified applicants who demonstrate a commitment to serve in an underserved area.
D. Private schools of medicine shall reimburse the university of ARIZONA for any
administrative costs related to the processing of scholarships for students at private
schools of medicine pursuant to subsection A of this section. 15-1727 Medical student scholarships; obligations; penalty; authority of attorney general A. Each applicant who is approved for a scholarship by the board may be granted a scholarship for a period of up to five years. B. Each scholarship shall be evidenced by a contract between the student and the board, acting on behalf of this state. The contract shall provide for the payment by the state of a stated sum or sums defraying the costs of a medical education at a public or private school of medicine in this state and shall be conditioned upon the contractual agreement by the recipient of such scholarship to complete the service required. Such service shall be full time as determined by the board and shall be for two years or one year of service for each year of scholarship support, whichever is longer. C. A scholarship recipient shall begin the service for which the recipient contracted as a condition of the scholarship within three years of completion of the recipient's undergraduate medical education unless extended to four years by the board. A recipient who is ordered into military service or for other cause beyond the recipient's control deemed sufficient by the board is unable to commence the required service within three years of such graduation shall begin service within one year after completing military service or the termination of such other cause. D. If a recipient decides not to fulfill the conditions of the contract by serving in an underserved area, the contract shall provide that the recipient shall be required to repay the full amount of the scholarship, including tuition, at the seven per cent interest rate plus a penalty for liquidated damages in an amount equivalent to the full amount of the scholarship, including tuition, less the amount credited for time actually served in a site approved by the board, to be calculated on a prorated monthly basis. The board for good reason may provide for extensions of the period of repayment specified in the scholarship recipient's contract. The board may waive the payment of principal, interest and liquidated damages if it determines that death or permanent physical disability accounts for the recipient's failure to fulfill the contract. E. If a recipient withdraws or is dismissed from medical school, the recipient shall be required to repay the full amount of the scholarship received to the board with interest with no penalty within one year of withdrawal. The board may for good reason provide for extensions on the period of repayment. F. On receipt of supporting documentation, the board for good cause shown may defer the scholarship recipient's service or payment obligation or may enter into repayment arrangements with the scholarship recipient or allow service that is equivalent to full-time service if the board determines that this action is justified after a review of the individual's circumstances. G. The attorney general may commence whatever actions are necessary to enforce the contract and achieve repayment of scholarship provided by the board pursuant to this article. 15-1728 Medical student scholarship fund
A. The medical student scholarship fund is established. All monies appropriated to
carry out the provisions of sections 15-1726 and 15-1727 shall be deposited in the fund,
and all penalty payments received by the board shall be deposited, pursuant to sections
35-146 and 35-147, in the fund. Monies in the fund are subject to legislative
appropriation.
B. Monies in the medical student scholarship fund are exempt from the provisions of
section 35-190 relating to lapsing of appropriations. 15-1741 Definitions
In this article, unless the context otherwise requires:
1. "Board" means the ARIZONA board of regents or its successor.
2. "Commission" means the western interstate commission for higher education.
3. "Compact" means the compact for western regional cooperation in higher
education.

15-1742 Authority of governor to enter compact; terms of compact
The governor, for and in behalf of the state, may enter into compacts for western
regional cooperation in higher education with the states of Alaska, California, Colorado,
Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming, or any
one or more of such states or territories. Under such compacts, the following covenants
may be agreed to:
ARTICLE I
Whereas, the future of this nation and of the western states is dependent upon the
quality of the education of its youth; and
Whereas, many of the western states individually do not have sufficient numbers of
potential students to warrant the establishment and maintenance within their borders of
adequate facilities in all of the essential fields of technical, professional and
graduate training, nor do all of the states have the financial ability to furnish within
their borders institutions capable of providing acceptable standards of training in all
of the fields mentioned above; and
Whereas, it is believed that the western states, or groups of such states within the
region, cooperatively can provide acceptable and efficient educational facilities to meet
the needs of the region and of the students thereof:
Now, therefore, the states of Alaska, ARIZONA, California, Colorado, Hawaii, Idaho,
Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming do hereby covenant and
agree as follows:
ARTICLE II
Each of the compacting states and territories pledges to each of the other
compacting states and territories faithful cooperation in carrying out all the purposes
of this compact.
ARTICLE III
The compacting states and territories hereby create the western interstate
commission for higher education, hereinafter called the commission. Said commission
shall be a body corporate of each compacting state and territory and an agency
thereof. The commission shall have all the powers and duties set forth herein, including
the power to sue and be sued, and such additional powers as may be conferred upon it by
subsequent action of the respective legislatures of the compacting states and
territories.
ARTICLE IV
The commission shall consist of three resident members from each compacting state or
territory. At all times one commissioner from each compacting state or territory shall
be an educator engaged in the field of higher education in the state or territory from
which he is appointed.
The commissioners from each state and territory shall be appointed by the governor
thereof as provided by law in such state or territory. Any commissioner may be removed
or suspended from office as provided by the law of the state or territory from which he
shall have been appointed.
The terms of each commissioner shall be four years; provided however that the first
three commissioners shall be appointed as follows: one for two years, one for three
years and one for four years. Each commissioner shall hold office until his successor
shall be appointed and qualified. If any office becomes vacant for any reason, the
governor shall appoint a commissioner to fill the office for the remainder of the
unexpired term.
ARTICLE V
Any business transacted at any meeting of the commission must be by affirmative vote
of a majority of the whole number of compacting states and territories.
One or more commissioners from a majority of the compacting states and territories
shall constitute a quorum for the transaction of business.
Each compacting state and territory represented at any meeting of the commission is
entitled to one vote.
ARTICLE VI
The commission shall elect from its number a chairman and a vice-chairman, and may
appoint, and at its pleasure dismiss or remove, such officers, agents and employees as
may be required to carry out the purpose of this compact; and shall fix and determine
their duties, qualifications and compensation, having due regard for the importance of
the responsibilities involved.
The commissioners shall serve without compensation but shall be reimbursed for their
actual and necessary expenses from the funds of the commission.
ARTICLE VII
The commission shall adopt a seal and bylaws and shall adopt and promulgate rules
and regulations for its management and control.
The commission may elect such committees as it deems necessary for the carrying out
of its functions.
The commission shall establish and maintain an office within one of the compacting
states for the transaction of its business and may meet at any time, but in any event
must meet at least once a year. The chairman may call such additional meetings and upon
the request of a majority of the commissioners of three or more compacting states or
territories shall call additional meetings.
The commission shall submit a budget to the governor of each compacting state and
territory at such time and for such period as may be required.
The commission shall, after negotiations with interested institutions, determine the
cost of providing the facilities for graduate and professional education for use in its
contractual agreements throughout the region.
On or before the fifteenth day of January of each year, the commission shall submit
to the governors and legislatures of the compacting states and territories a report of
its activities for the preceding calendar year.
The commission shall keep accurate books of account, showing in full its receipts
and disbursements, and said books of account shall be open at any reasonable time for
inspection by the governor of any compacting state or territory or his designated
representative. The commission shall not be subject to the audit and accounting
procedure of any of the compacting states or territories. The commission shall provide
for an independent annual audit.
ARTICLE VIII
It shall be the duty of the commission to enter into such contractual agreements
with any institutions in the region offering graduate or professional education and with
any of the compacting states or territories as may be required in the judgment of the
commission to provide adequate services and facilities of graduate and professional
education for the citizens of the respective compacting states or territories. The
commission shall first endeavor to provide adequate services and facilities in the fields
of dentistry, medicine, public health and veterinary medicine and may undertake similar
activities in other professional and graduate fields.
For this purpose the commission may enter into contractual agreements:
(a) With the governing authority of any educational institution in the region or
with any compacting state or territory to provide such graduate or professional
educational services upon terms and conditions to be agreed upon between contracting
parties, and
(b) With the governing authority of any educational institution in the region or
with any compacting state or territory to assist in the placement of graduate or
professional students in educational institutions in the region providing the desired
services and facilities, upon such terms and conditions as the commission may prescribe.
It shall be the duty of the commission to undertake studies of needs for
professional and graduate educational facilities in the region, the resources for meeting
such needs and the long-range effects of the compact on higher education; and from time
to time to prepare comprehensive reports on such research for presentation to the western
governors' conference and to the legislatures of the compacting states and
territories. In conducting such studies, the commission may confer with any national or
regional planning body which may be established. The commission shall draft and
recommend to the governors of the various compacting states and territories uniform
legislation dealing with problems of higher education in the region.
For the purposes of this compact the word "region" shall be construed to mean the
geographical limits of the several compacting states and territories.
ARTICLE IX
The operating costs of the commission shall be apportioned equally among the
compacting states and territories.
ARTICLE X
This compact shall become operative and binding immediately as to those states and
territories adopting it whenever five or more of the states of Alaska, ARIZONA,
California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah,
Washington and Wyoming have duly adopted it prior to July 1, 1953. This compact shall
become effective as to any additional states or territories adopting thereafter at the
time of such adoption.
ARTICLE XI
This compact may be terminated at any time by consent of a majority of the
compacting states or territories. Consent shall be manifested by passage and signature
in the usual manner of legislation expressing such consent by the legislature and
governor of such terminating state. Any state or territory may at any time withdraw from
this compact by means of appropriate legislation to that end. Such withdrawal shall not
become effective until two years after written notice thereof by the governor of the
withdrawing state or territory, accompanied by a certified copy of the requisite
legislative action, is received by the commission. Such withdrawal shall not relieve the
withdrawing state or territory from its obligations hereunder accruing prior to the
effective date of withdrawal. The withdrawing state or territory may rescind its action
of withdrawal at any time within the two year period. Thereafter, the withdrawing state
or territory may be reinstated by application to and the approval by a majority vote of
the commission.
ARTICLE XII
If any compacting state or territory shall at any time default in the performance of
any of its obligations assumed or imposed in accordance with the provisions of this
compact, all rights, privileges and benefits conferred by this compact or agreements
hereunder shall be suspended from the effective date of such default as fixed by the
commission.
Unless such default shall be remedied within a period of two years following the
effective date of such default, this compact may be terminated with respect to such
defaulting state or territory by affirmative vote of three-fourths of the other member
states or territories.
Any such defaulting state may be reinstated by performing all acts and obligations
upon which it has heretofore defaulted and by application to and the approval by a
majority vote of the commission.

15-1743 Authorizing agreements for education of ARIZONA students outside compact area; limitations
A. The western interstate commission for higher education is authorized to act on
behalf of this state in making arrangements for the placement of students in institutions
and programs of higher learning outside the states which are parties to the compact for
establishing the commission. For that purpose, the commission may negotiate and enter
into arrangements and contracts with the ARIZONA board of regents, with public and
private educational institutions and agencies and with other states. These arrangements
and contracts may provide for the obtaining of one or more places for students on either
a special or continuing basis; the payment of partial or full tuition and other charges
not to exceed the cost of agreements within the compact area; and the furnishing of
reciprocal, compensating or other advantages and benefits in support of the educational
program involved.
B. The authority conferred by subsection A shall be exercised only pursuant to
written agreement between the commission and the ARIZONA board of regents. Any such
agreements shall include provisions for the payment of tuition and any other costs, and
no such agreement shall be made which commits this state or any agency or officer of it
to any obligation for which funds have not been appropriated or otherwise made available
in accordance with law.
C. Nothing in this section alters any of the obligations or restricts or impairs
any rights which this state may have under the compact establishing the commission.

15-1744 Processing and certification of students
A. The board shall, within the limitations and on the terms fixed by the commission
and by this article, determine the number of students desiring to take advantage of the
educational facilities afforded by the compact and, from those indicating such a desire,
select a group in each allowable professional field. In making the selections the board
shall only include students who:
1. Have at least an average scholastic attainment record.
2. Are citizens of the United States.
3. Have been actual bona fide residents of ARIZONA for at least the last five
years.
4. Have completed such preliminary education as will qualify them for admission to
the professional or graduate school provided by the commission.
B. The names of the students selected shall be certified by the board to the
commission through the ARIZONA members of the commission, along with such data as the
commission may require.

15-1745 Contract with student certified by board
A. Before certifying a student to the commission the board shall, on behalf of this
state, enter into a written contract with the student. The contract shall set forth the
methods and terms of repayment by the student to this state and shall be on terms and
conditions and in a form provided by the board. The contract shall provide:
1. That the student shall within one year after completing his professional
education and internship begin the practice of his profession within ARIZONA. If the
student engages in postgraduate studies and does so without a lapse of more than one year
following the completion of his professional course, then he shall begin practice within
this state within one year after completing the graduate studies. If the student is
involuntarily inducted into military service, or for other cause beyond his control
deemed sufficient by the board is unable to begin the practice of his profession within
one year after completing his professional education, internship and any graduate
studies, then he shall begin practice within this state within one year after completing
his required military service or the termination of such other cause.
2. That if the student engages in the practice of his profession within this state
or while completing military service resulting from involuntary induction, his
indebtedness to this state may be discharged in one of the following ways:
(a) By payment to this state of one-half of all sums expended by this state for and
in behalf of the student with interest at the rate prescribed in subsection B.
(b) For each year of practice or internship within this state or in military
service there shall be discharged his obligation for one academic year of study for which
a portion of the cost was paid by this state, except that each six months of practice
shall discharge his obligation for one academic year of study if such practice is
confined to a locality within the state where there is an exceptional need for his
professional services as determined and certified by the medical board of examiners or
licensing board of his profession.
3. That if the student fails to complete the required course of professional study,
or if the course of study is interrupted by one school year or more for a cause or causes
not resulting from involuntary induction into military service or other cause beyond his
control deemed sufficient by the board, or if the student fails to practice his
profession within the state for such continuous time as completely discharges his
obligation, except for delays resulting from an excusable cause as prescribed in this
section, one-half of the entire sum paid for or on behalf of the student by this state
and not repaid or discharged as herein provided shall be due and payable forthwith with
interest at the rate prescribed in subsection B. The board may extend the time of payment
over a period not exceeding fifteen years and shall not require payment of interest
during the existence of any excusable cause as prescribed in this section.
4. That if the student does not begin practice in this state within the time
prescribed in this section but shall have repaid an agreed part of the sum expended by
this state in his behalf, the board may permit him to discharge the balance of his
obligation by subsequent practice within this state.
5. That in the event of the death of the student during the period of his
education, internship or practice, his obligation to this state under this article shall
cease except as to any portion which is then due.
B. The interest rate for a student's contract is the rate in effect for the fiscal
year during which the student begins the approved course of professional study. The
board shall establish the interest rate by November 1 of the current year for the
following fiscal year. The board shall establish a rate equal to the average interest
rate of auctioned ninety-one day United States treasury bills over the twenty-four month
period ending September 30 of the current year, except that the board may round the rate
to the nearest one-half per cent. Accrual of interest charges provided by the contract
begins on the first day of the first complete month following graduation of the student
or, for students who fail to complete their required course of study, the first day of
the first complete month following the date when the student was no longer enrolled.

15-1746 Collections revolving fund; expenditures; employment of legal counsel; exemption from lapsing
A. A collections revolving fund is established which consists of:
1. Monies repaid to the board as provided in section 15-1745.
2. Monies which the legislature appropriates.
B. The board shall use monies in the collections revolving fund for payment of
expenses incurred in enforcing contracts entered into with students as provided in
section 15-1745, including expenditures for filing fees, court costs, travel,
depositions, transcripts, reproduction costs, expert witness fees, investigations and
similar costs and expenses. Except for payment of attorney fees due on the initial
recovery of monies as provided in subsection C of this section, the board may not use
monies in the fund to compensate or employ attorneys.
C. The board may, in legal actions taken outside of this state to enforce the
contracts entered into with students as provided in section 15-1745, employ legal counsel
on a contingent fee basis plus court costs. The employment and payment of legal counsel
under this subsection is not subject to the bidding and contracting requirements under
title 41, chapter 23.
D. At no time shall the amount of monies in the collections revolving fund retained
to pay expenses incurred in enforcing contracts entered into with students exceed ten
thousand dollars.
E. The board shall not retain more than ten thousand dollars in the collections
revolving fund. Monies collected in excess of ten thousand dollars shall be deposited in
the state general fund.
F. Monies in the collections revolving fund, up to an amount of ten thousand
dollars, are exempt from section 35-190, relating to lapsing of appropriations.

15-1751 Positions at the university of ARIZONA
The university of ARIZONA school of medicine shall give priority consideration to
applicants who demonstrate a willingness to practice in medically underserved areas of
this state.

15-1753 Primary care disciplines; definition
A. The university of ARIZONA school of medicine shall prepare a plan with the goal
of encouraging students to enter the primary care disciplines. At least sixty per cent
of the residency positions available at the university of ARIZONA school of medicine
shall be reserved for medical school graduates entering programs defined as primary care
disciplines of which at least twelve per cent of the residency positions available at the
university of ARIZONA school of medicine shall be reserved for medical school graduates
entering the family medicine program.
B. Beginning October 1, 1995 and each year thereafter, the university of ARIZONA
shall submit a report to the president of the senate and the speaker of the house of
representatives. The report shall include the number of residents who graduated from the
university of ARIZONA in a primary care discipline and who are practicing in primary care
and the number who have elected to enter into specialty practices.
C. The information provided in subsection B of this section shall be made available
to the chairmen of the appropriations committees in the house of representatives and the
senate for their use in future funding decisions for the university of ARIZONA medical
school.
D. For purposes of this section, "primary care disciplines" includes family
medicine, general internal medicine, general pediatrics, obstetrics and gynecology.

15-1754 Rural health professions program; definition
A. The three universities under the jurisdiction of the ARIZONA board of regents
shall select ten nurse practitioner students, fifteen medical students and four pharmacy
students each year to participate in a rural health professions program. The three
universities shall develop application procedures for students to apply for voluntary
participation in the program. The three universities shall attempt to ensure that each
individual participating student be able to fulfill the program requirements in a single
rural practice setting.
B. The university of ARIZONA shall choose the fifteen medical students, four
pharmacy students and four nurse practitioner students, ARIZONA state university shall
choose four nurse practitioner students, and northern ARIZONA university shall choose two
nurse practitioner students who will participate at the respective universities.
C. Pharmacy students and medical students selected to participate in the program
shall be placed in a rural practice or rural location in this state. Each placement
shall be for a duration of at least one month and shall occur during the summer months
between academic years, as part of the required curriculum during a clinical clerkship
and in the final year of training.
D. Nurse practitioner students selected to participate in the program shall be
placed in a rural practice or rural location in this state during the summer months
between the first and second year of their academic instruction. A participating nurse
practitioner student's internship shall also be conducted in a clinical setting located
in a rural area of this state.
E. Students who participate in the program shall be teamed with two mentors
throughout their period of academic instruction. The mentors shall provide guidance and
counseling to students who participate in the program concerning the fulfillment of rural
health professions program requirements, the selection of elective curricula and the
selection of residency programs or internships. One of the faculty mentors shall be a
physician, pharmacist or nurse who works closely with the participating student during
the student's rural placement, and one of the mentors shall be a faculty member of the
university where the program participant is enrolled. At least one of the mentors shall
be available at all times to support the student's interest in rural health care.
F. For purposes of this section, "rural" means either:
1. A county with a population of less than four hundred thousand persons according
to the most recent United States decennial census.
2. A census county division with less than fifty thousand persons in a county with
a population of four hundred thousand or more persons according to the most recent United
States decennial census.

15-1761 Short title
This article may be cited as the uniform athlete agents act.


15-1762 Definitions
In this article, unless the context otherwise requires:
1. "Agency contract" means an agreement in which a student athlete authorizes a
person to negotiate or solicit a professional sports services contract or an endorsement
contract on behalf of the student athlete.
2. "Athlete agent" means an individual who enters into an agency contract with a
student athlete or, directly or indirectly, recruits or solicits a student athlete to
enter into an agency contract. Athlete agent includes an individual who represents to the
public that the individual is an athlete agent. Athlete agent does not include a spouse,
parent, sibling, grandparent or guardian of the student athlete or an individual acting
solely on behalf of a professional sports team or a professional sports organization.
3. "Athletic director" means an individual responsible for administering the
overall athletic program of an educational institution or, if an educational institution
has separately administered athletic programs for male students and female students, the
athletic program for males or the athletic program for females.
4. "Contact" means a direct or indirect communication between an athlete agent and
a student athlete to recruit or solicit the student athlete to enter into an agency
contract.
5. "Endorsement contract" means an agreement under which a student athlete is
employed or receives consideration to use on behalf of the other party any value that the
student athlete may generate because of publicity, reputation, following or fame that was
obtained because of athletic ability or performance.
6. "Intercollegiate sport" means a sport that is played at the collegiate level and
for which eligibility requirements for participation by a student athlete are established
by a national association for the promotion or regulation of collegiate athletics.
7. "Person" means an individual, a corporation, a business trust, an estate, a
trust, a partnership, a limited liability company, an association, a joint venture, a
government, a governmental subdivision, a government agency, a government
instrumentality, a public corporation or any other legal or commercial entity.
8. "Professional sports services contract" means an agreement under which an
individual is employed, or agrees to render services, as a player on a professional
sports team, with a professional sports organization or as a professional athlete.
9. "Record" means information that is inscribed on a tangible medium or that is
stored in an electronic format or any other medium and that is retrievable in perceivable
form.
10. "Registration" means registration as an athlete agent pursuant to this article.
11. "State" means a state of the United States, the District of Columbia, Puerto
Rico, the United States Virgin Islands or any territory or insular possession subject to
the jurisdiction of the United States.
12. "Student athlete" means an individual who engages in, is eligible to engage in
or may be eligible in the future to engage in any intercollegiate sport. If an individual
is permanently ineligible to participate in a particular intercollegiate sport, the
individual is not a student athlete for purposes of that sport.

15-1763 Service of process; subpoenas
A. By acting as an athlete agent in this state, a nonresident individual
constructively appoints the secretary of state as the individual's agent for service of
process in any civil action in this state related to the individual's athlete agent
activities in this state.
B. The secretary of state may issue subpoenas for any material that is relevant to
the administration of this article.

15-1764 Athlete agents; registration; void contracts
A. Except as otherwise provided in subsection B of this section, an individual may
not act as an athlete agent in this state without holding a certificate of registration
under section 15-1766 or 15-1768.
B. Before being issued a certificate of registration, an individual may act as an
athlete agent in this state for all purposes other than signing an agency contract, if
both:
1. A student athlete or another person acting on behalf of the student athlete
initiates communication with the individual.
2. Within seven days after an initial act as an athlete agent, the individual
submits an application for registration as an athlete agent in this state.
C. An agency contract resulting from conduct in violation of this section is void,
and the athlete agent shall return any consideration received under the contract.

15-1765 Registration as athlete agent; form; requirements
A. An applicant for registration as an athlete agent shall submit an application
for registration to the secretary of state in a form prescribed by the secretary of
state. An application filed under this section is a public record under title 39. The
application shall be in the name of an individual and, except as otherwise provided in
subsection B of this section, shall be signed or otherwise authenticated by the applicant
under penalty of perjury. The application shall state or contain the following:
1. The name of the applicant and the address of the applicant's principal place of
business.
2. The name of the applicant's business or employer, if applicable.
3. Any business or occupation engaged in by the applicant for the five years
immediately preceding the date of the submission of the application.
4. A description of the applicant's:
(a) Formal training as an athlete agent.
(b) Practical experience as an athlete agent.
(c) Educational background relating to the applicant's activities as an athlete
agent.
5. The names and addresses of three individuals who are not related to the
applicant and who are willing to serve as references for the applicant.
6. The name, sport and last known team of each individual for whom the applicant
acted as an athlete agent during the five years immediately preceding the date of the
submission of the application.
7. The names and addresses of all persons who are:
(a) With respect to the athlete agent's business if it is not a corporation, the
partners, members, officers, managers, associates or profit sharers of the business.
(b) With respect to a corporation employing the athlete agent, the officers, the
directors and any shareholder of the corporation that has an ownership interest of five
per cent or more in the corporation.
8. Whether the applicant or any person named pursuant to paragraph 7 of this
subsection has been convicted of a crime that, if committed in this state, would be a
crime involving moral turpitude or a felony. If the applicant gives an affirmative
response to the information requested pursuant to this paragraph, the applicant shall
list each specific criminal conviction.
9. Whether there has been any administrative or judicial determination that the
applicant or any person named pursuant to paragraph 7 of this subsection has made a
false, misleading, deceptive or fraudulent representation.
10. Any instance in which the conduct of the applicant or any person named pursuant
to paragraph 7 of this subsection resulted in the imposition on a student athlete or an
educational institution of a sanction, suspension or declaration of ineligibility to
participate in an interscholastic or intercollegiate athletic event.
11. Any sanction, suspension or disciplinary action that was taken against the
applicant or any person named pursuant to paragraph 7 of this subsection and that arose
out of occupational or professional misconduct.
12. Whether there has been any denial of an application for, suspension or
revocation of or refusal to renew the registration or licensure of the applicant or any
person named pursuant to paragraph 7 of this subsection as an athlete agent in any state.
B. An individual who has submitted an application for and holds a certificate of
registration or licensure as an athlete agent in another state may submit a copy of the
application and certificate in lieu of submitting an application in the form prescribed
pursuant to subsection A. The secretary of state shall accept the application and the
certificate from the other state as an application for registration in this state if the
application to the other state meets all of the following requirements:
1. Was submitted in the other state within the six months immediately preceding the
submission of the application in this state and the applicant certifies that the
information contained in the application is current and correct.
2. Contains information that is substantially similar to or more comprehensive than
that required in an application submitted in this state.
3. Was signed by the applicant under penalty of perjury.

15-1766 Certificate of registration; issuance or denial; renewal
A. Except as otherwise provided in subsection B of this section, the secretary of
state shall issue a certificate of registration to an individual who complies with
section 15-1765, subsection A or whose application has been accepted under section
15-1765, subsection B.
B. The secretary of state may refuse to issue a certificate of registration if the
secretary of state determines that the applicant has engaged in conduct that has a
significant adverse effect on the applicant's fitness to act as an athlete agent. In
making the determination, the secretary of state may consider whether the applicant has:
1. Been convicted of a crime that, if committed in this state, would be a crime
involving moral turpitude or would be a felony.
2. Made a materially false, misleading, deceptive or fraudulent representation in
the application or as an athlete agent.
3. Engaged in conduct that would disqualify the applicant from serving in a
fiduciary capacity.
4. Engaged in conduct that is prohibited by section 15-1774.
5. Has had a registration or licensure as an athlete agent suspended, revoked or
denied or has been refused renewal of registration or licensure as an athlete agent in
any state.
6. Engaged in conduct that resulted in a sanction, suspension or declaration of
ineligibility to participate being imposed on a student athlete or an educational
institution in an interscholastic or an intercollegiate athletic event.
7. Engaged in conduct that significantly adversely reflects on the applicant's
credibility, honesty or integrity.
C. In making a determination under subsection B of this section, the secretary of
state shall consider all of the following:
1. The time between the conduct that occurred and the date of the application.
2. The nature of the conduct and the context in which the conduct occurred.
3. Any other relevant conduct of the applicant.
D. An athlete agent may apply to renew a registration by submitting an application
for renewal in a form prescribed by the secretary of state. An application for renewal
that is filed pursuant to this subsection is a public record under title 39. The
application for renewal shall be signed by the applicant under penalty of perjury and
must contain current information concerning all matters required in an original
registration.
E. An individual who has submitted an application for renewal of registration or
licensure in another state, in lieu of submitting an application for renewal in the form
prescribed pursuant to subsection D of this section, may file a copy of the application
for renewal and a valid certificate of registration or licensure from the other state.
The secretary of state shall accept the application for renewal from the other state as
an application for renewal in this state if the application to the other state meets all
of the following requirements:
1. Was submitted in the other state within the six months immediately preceding the
filing in this state and the applicant certifies the information contained in the
application for renewal is current and correct.
2. Contains information that is substantially similar to or more comprehensive than
that required in an application for renewal submitted in this state.
3. Was signed by the applicant under penalty of perjury.
F. A certificate of registration or a renewal of a registration is valid for two
years from the date of issuance.

15-1767 Suspension, revocation or refusal to renew registration
A. The secretary of state may suspend, revoke or refuse to renew a registration for
conduct that would have justified denial of registration under section 15-1766,
subsection B.
B. The secretary of state may deny, suspend, revoke or refuse to renew a
certificate of registration only after proper notice and an opportunity for a hearing
pursuant to title 41, chapter 6. 15-1768 Temporary registration
The secretary of state may issue a temporary certificate of registration while an
application for registration or renewal of registration pursuant to this article is
pending.


15-1769 Registration and renewal fees
An application for registration or renewal of registration shall be accompanied by
the payment to the secretary of state of a fee in the following amounts:
1. For an initial application for registration, twenty dollars.
2. For an application for registration based on a certificate of registration or
licensure issued by another state, twenty dollars.
3. For an application for renewal of registration, twenty dollars.
4. For an application for renewal of registration based on an application for
renewal of registration or licensure submitted in another state, twenty dollars.


15-1770 Required form of contract
A. An agency contract shall be a record that is signed or otherwise authenticated
by the parties.
B. An agency contract shall state or contain the following:
1. The amount and method of calculating the consideration to be paid by the student
athlete for services to be provided by the athlete agent under the contract and any other
consideration the athlete agent has received or will receive from any other source for
entering into the contract or for providing the services.
2. The name of any person who is not listed in the application for registration or
renewal of registration and who will be compensated because the student athlete signed
the agency contract.
3. A description of any expenses that the student athlete agrees to reimburse the
athlete agent.
4. A description of the services to be provided to the student athlete.
5. The duration of the contract.
6. The date of the execution of the contract.
C. An agency contract shall contain, in close proximity to the signature of the
student athlete, a conspicuous notice in bold-faced type in capital letters that states
the following:
Warning to Student Athlete
If you sign this contract:
1. You may lose your eligibility to compete as a student athlete in
your sport.
2. If you have an athletic director, within 72 hours after entering
into this contract or before the next athletic event in which the student
athlete may participate, whichever comes first, both you and your athlete
agent must notify your athletic director.
3. You may cancel this contract within 14 days after signing it.
Cancellation of this contract may not reinstate your eligibility.
D. An agency contract that does not conform to this section is voidable by the
student athlete. If a student athlete voids an agency contract, the student athlete is
not required to pay any consideration under the contract or to return any consideration
that was received from the athlete agent and that was given to induce the student athlete
to enter into the contract.
E. The athlete agent shall give a copy of the signed or otherwise authenticated
agency contract to the student athlete at the time of execution.

15-1771 Notice to educational institution
A. Within seventy-two hours after entering into an agency contract or before the
next scheduled athletic event in which the student athlete may participate, whichever
occurs first, the athlete agent shall give notice in a record of the existence of the
contract to the athletic director of the educational institution at which the student
athlete is enrolled or the educational institution at which the athlete agent has
reasonable grounds to believe the student athlete intends to enroll.
B. Within seventy-two hours after entering into an agency contract or before the
next athletic event in which the student athlete may participate, whichever occurs first,
the student athlete shall inform the athletic director of the educational institution at
which the student athlete is enrolled that he or she has entered into an agency contract.


15-1772 Student athlete's right to cancel contract
A. A student athlete may cancel an agency contract by giving notice of the
cancellation to the athlete agent in a record within fourteen days after the contract is
signed.
B. A student athlete may not waive the right to cancel an agency contract.
C. If a student athlete cancels an agency contract, the student athlete is not
required to pay any consideration under the contract or to return any consideration
received from the athlete agent to induce the student athlete to enter into the contract.
15-1773 Required records
A. An athlete agent shall retain all of the following records for a period of five
years:
1. The name and address of each individual represented by the athlete agent.
2. Any agency contract entered into by the athlete agent.
3. Documentation of any direct costs incurred by the athlete agent in the
recruitment or solicitation of a student athlete to enter into an agency contract.
B. The records required to be retained pursuant to subsection A shall be open to
inspection by the secretary of state during normal business hours.

15-1774 Prohibited conduct; violation; classification
A. It is unlawful for an athlete agent, with the intent to induce a student athlete
to enter into an agency contract, to engage in any of the following conduct:
1. Give any materially false or misleading information or make a materially false
promise or representation.
2. Furnish anything of value to a student athlete before the student athlete enters
into the agency contract.
3. Furnish anything of value to any individual other than the student athlete or
another registered athlete agent.
B. It is unlawful for an athlete agent to intentionally commit any of the following
conduct:
1. Initiate contact with a student athlete unless the athlete agent is registered
with the secretary of state pursuant to this article.
2. Refuse or fail to retain or permit inspection of the records required to be
retained by section 15-1773.
3. Fail to register if required by section 15-1764.
4. Provide materially false or misleading information in an application for
registration or renewal of registration.
5. Predate or postdate an agency contract.
6. Fail to notify a student athlete before the student athlete signs or otherwise
authenticates an agency contract for a particular sport that the signing or
authentication may make the student athlete ineligible to participate as a student
athlete in that sport.
C. A person who violates this section is guilty of a class 1 misdemeanor.

15-1775 Civil remedies
A. An educational institution may bring a cause of action against an athlete agent
or a former student athlete for damages caused by a violation of this article. The court
may award to the prevailing party costs and reasonable attorney fees in any action
brought pursuant to this section.
B. An educational institution may recover damages pursuant to subsection a
including losses and expenses incurred as a result of the conduct of an athlete agent or
a former student athlete if the educational institution was injured by a violation of
this article or was penalized, disqualified or suspended from participation in athletics
by a national association for the promotion and regulation of athletics, by an athletic
conference or by reasonable self-imposed disciplinary action taken to mitigate sanctions
likely to be imposed by such an organization.
C. A right of action under this section does not accrue until the educational
institution discovers or by the exercise of reasonable diligence should have discovered
the violation by the athlete agent or the former student athlete.
D. Any liability of the athlete agent or the former student athlete under this
section is several and not joint.
E. This article does not restrict other legal or equitable rights, remedies or
defenses of any person.

15-1776 Administrative penalties
The secretary of state may assess a civil penalty against an athlete agent in an
amount of not to exceed twenty-five thousand dollars for each violation of this article.