Arizona 2022 2022 Regular Session

Arizona House Bill HB2122 Comm Sub / Analysis

Filed 04/01/2022

                    Assigned to ED & APPROP 	AS PASSED BY COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Fifth Legislature, Second Regular Session 
 
AMENDED 
FACT SHEET FOR H.B. 2122 
 
continuing high school; workforce training 
Purpose 
Establishes the Continuing High School and Workforce Training Program (High School 
and Workforce Program), Adult Workforce Diploma Program (Workforce Diploma Program) and 
Community College Adult Education Workforce Development Program (Community College 
Program) and requires the State Board of Education (SBE) to adopt performance measures to 
evaluate adult education and workforce programs. Establishes the Workforce Diploma Program 
Fund and Community College Program Fund and appropriates $6,000,000 from the state General 
Fund (state GF) in FYs 2023 through 2025 to each Fund. 
Background 
Schools must admit children who are between the ages of 6 and 21 years old, who reside 
in the school district and who meet the requirements for enrollment in a grade or program offered 
by the school (A.R.S. § 15-821). An adult may obtain a high school equivalency (HSE) diploma 
by: 1) passing the graduation equivalency diploma test; 2) participating in the College Credit 
Pathway to complete 25 college credits in specified subject areas; or 3) participating in the HSE 
PLUS Career Readiness Pathway offered exclusively by adult education providers under the 
federal Workforce Innovation and Opportunity Act (ADE). 
The Arizona Department of Education's (ADE's) Adult Education Services authorizes adult 
education providers to provide educational services and training for adults who are at least 16 years 
old to continue their basic education and pass an SBE-approved HSE diploma test. An adult 
education provider is a school district, community college district, correctional facility or 
community-based organization, institution serving educationally disadvantaged adults or any other 
institution that receives public funds to provide adult education services (A.R.S. §§ 15-232 and 
15-234). 
H.B. 2122 appropriates a total of $36,000,000 from the state GF over FYs 2023 through 
2025 to the Workforce Diploma Program Fund and Community College Program Fund. If 
directing $7,700 per full-time student from an unspecified source to schools participating in the 
High School and Workforce Program results in increased costs to the state GF, there may be an 
additional fiscal impact. 
Provisions  
High School and Workforce Program 
1. Directs the SBE to establish a High School and Workforce Program that:  
a) provides adult learners with alternative study services; and  
b) leads to the issuance of a high school diploma and industry-recognized credentials.  FACT SHEET – Amended  
H.B. 2122 
Page 2 
 
 
2. Allows a high school diploma to be issued to a participating adult learner who meets statutory 
and SBE-adopted graduation requirements. 
3. Requires the SBE to authorize eligible service providers to participate in the High School and 
Workforce Program and establish a school in partnership with a school district or charter 
school (program school). 
4. Deems a service provider to be eligible for High School and Workforce Program participation 
if the provider: 
a) is a 501(c)(3) nonprofit corporation or an adult education provider approved by ADE Adult 
Education Services; and  
b) demonstrates at least a 10-year history of providing workforce training and career services 
in Arizona to persons:  
i. who are at least 18 years old; and  
ii. whose educational and training opportunities have been limited by educational 
disadvantages, disabilities or other barriers to education, such as a lack of affordable 
and reliable transportation, lack of child care or food insecurity.  
5. Requires the SBE, in consultation with ADE, to evaluate applications and approve program 
schools that demonstrate the ability to provide adult learners with the instruction and support 
that lead to a high school diploma and one or more industry-recognized credentials.  
6. Caps the terms of program school approval at: 
a) for initial approval, two school years; and  
b) for renewal of approval, four school years contingent on performance expectations, 
including student progression, graduation rates and earned industry-recognized credentials. 
7. Caps the total projected full-time enrollment of program schools at: 
a) 600 in FY 2023; 
b) 1,000 in FY 2024; and  
c) 1,400 in FY 2025 and each subsequent fiscal year. 
8. Directs ADE to develop application procedures for the High School and Workforce Program 
and requires a service provider to submit an application on behalf of a program school. 
9. Includes, in information required in a High School and Workforce Program application: 
a) a description of the service provider's partnership with a school district or charter school; 
b) a description of the program school's administrative structure, activities, staff, budget and 
specific curriculum that is aligned with state academic standards; 
c) the program school's academic calendar and a schedule describing the length of school day, 
program sequence, multidisciplinary courses, pace and instructional activities; 
d) confirmation of the program school's location and a description of the program school's 
facility, including accessibility, available classroom space, childcare space and health and 
safety requirements;  
e) a description of specific academic, behavioral and emotional support services the service 
provider will offer to enrolled adult learners;   FACT SHEET – Amended  
H.B. 2122 
Page 3 
 
 
f) a description of the adult learner and family supports that will be provided at no cost to 
adult learners, including on-site childcare, local transportation assistance, career and higher 
education counseling and job placement assistance; 
g) a description of the available counseling services that assist adult learners in overcoming 
barriers to educational success, including educational disadvantages, homelessness, 
criminal history or disabling conditions; 
h) a description of the career technical education (CTE) instruction the school will provide; 
i) a description of specific Program outcomes, goals and metrics the school will use to 
determine adult learner success; and 
j) the projected number of adult learners the school will enroll. 
10. Requires the program school CTE instruction and courses to lead to industry-recognized 
credentials or result in an adult learner earning university or community college course credits. 
11. Allows a service provider to partner with a community college district or CTE district to 
provide CTE instruction. 
High School and Workforce Program Funding, Compliance and Reporting 
12. Requires a program school to receive $7,700 per full-time student and, for a part-time student, 
funding proportionate to the number of enrolled courses or hours of instruction.  
13. Authorizes the SBE, if the total full-time enrollment requested by program schools exceeds the 
prescribed caps, to prioritize funding to schools demonstrating the highest performance. 
14. Requires the SBE to prioritize new program schools based on the adult learner services and 
supports outlined on their applications.  
15. Deems a program school to be ineligible for any other school finance formula funding, 
including transportation funding, Arizona online instruction funding, base-support level 
funding and additional assistance.  
16. Specifies that a program school is eligible to receive funding for any adult learner regardless 
of age. 
17. Requires a program school to meet all applicable legal and statutory requirements for public 
schools, including: 
a) requirements for student assessments and special education services; and  
b) prohibitions against admission limits based on ethnicity, national origin, gender, income 
level, disabling condition, English language proficiency or athletic ability.  
18. Prohibits a program school from:  
a) conducting advertising or marketing campaigns directed at students currently enrolled in a 
school district or charter school;  
b) undertaking any other activity that encourages students currently enrolled in a school 
district or charter school to stop attending the school to enroll in a program school; or 
c) enrolling a student who, within the preceding 30 days, was enrolled in a school district or 
charter school.  FACT SHEET – Amended  
H.B. 2122 
Page 4 
 
 
19. Directs the SBE, if a service provider fails to meet any High School and Workforce Program 
requirements or SBE-adopted rules, to immediately:  
a) initiate a process to bring the program school into compliance; or  
b) revoke the school's authorization to participate in the Program.  
20. Requires a program school to annually report to ADE the following information on adult 
learners enrolled in the school: 
a) the number enrolled; 
b) the average progress toward meeting graduation requirements and the graduation rate; 
c) the number and type of industry-recognized credentials earned; 
d) the number of adult learners who have newly-acquired proficiency in the English language; 
e) a descriptive summary of the academic, behavioral and emotional support services the 
service provider offers; and 
f) information required by the SBE-adopted performance measures. 
21. Requires, by December 15 beginning in 2025, ADE to submit an annual report evaluating High 
School and Workforce Program effectiveness to the Governor, President of the Senate, Speaker 
of the House of Representatives and Secretary of State. 
22. Authorizes the SBE to adopt rules to administer the High School and Workforce Program. 
Workforce Diploma Program 
23. Establishes the Workforce Diploma Program within the SBE to assist a person who is at least 
21 years old in earning a high school diploma and developing critical employability and career 
and technical skills to prepare for employment. 
24. Directs the SBE to operate the Workforce Diploma Program in cooperation with ADE and 
allows the Program to be delivered in a campus-based, online or blended modality. 
25. Requires the SBE to annually: 
a) by August 15, issue a request for qualifications for eligible Workforce Diploma Program 
providers (program providers) to participate in the Program; and  
b) by October 15 and in consultation with ADE, approve all qualified program providers for 
placement on an approved program providers list. 
26. Prescribes the following criteria for approval as a program provider: 
a) be operating a regionally-accredited high school diploma-granting entity; 
b) have the ability to develop a learning plan for each student that integrates graduation 
requirements and career goals; 
c) provide a course catalog that includes all courses necessary to meet graduation 
requirements; and 
d) have the ability to provide: 
i. remediation opportunities in literacy and numeracy; 
ii. career pathways coursework; 
iii. preparation for industry-recognized credentials and stackable credentials; 
iv. career placement services; and 
v. academic skill intake assessments and transcript evaluations.  FACT SHEET – Amended  
H.B. 2122 
Page 5 
 
 
27. Specifies that program providers maintain approval status unless removed from the approved 
providers list. 
28. Directs, by November 15 of each year, approved program providers to begin enrolling students. 
Workforce Diploma Program Funding, Compliance and Reporting 
29. Establishes the Workforce Diploma Program Fund, administered by ADE, consisting of 
legislative appropriations, gifts, grants and other donations. 
30. Appropriates $6,000,000 from the state GF in each of FYs 2023, 2024 and 2025 to the 
Workforce Diploma Program Fund. 
31. Specifies that Workforce Diploma Program Fund monies are continuously appropriated and 
exempt from lapsing. 
32. Directs ADE to pay a program provider the following amounts for each student who completes 
the respective milestone: 
a) $250 for each completed half unit of high school credit; 
b) $250 for each completed employability skills certification; 
c) $250 for each earned industry-recognized credential or stackable credential requiring up to 
50 hours of training; 
d) $500 for each earned industry-recognized credential or stackable credential requiring 
between 50 and 100 hours of training; 
e) $750 for each earned industry-recognized credential or stackable credential requiring over 
100 hours of training; and 
f) $1,000 for each earned high school diploma. 
33. Directs ADE to: 
a) pay program providers in the order in which monthly invoices are submitted until all 
available monies are exhausted; and 
b) by the last calendar day of each month, provide a written update to program providers that 
includes the aggregate total dollars paid to providers to date and the estimated number of 
enrollments still available for the year. 
34. Directs, by the 10th calendar day of each month, each program provider to submit monthly 
invoices to ADE for milestones met in the previous calendar month. 
35. Requires the SBE, beginning with the end of the second fiscal year of the Workforce Diploma 
Program and in cooperation with ADE, to review data from each program provider to ensure 
that each provider is achieving minimum performance standards, including: 
a) a graduation rate of at least 50 percent; and 
b) an average cost per graduate of $7,000 or less. 
36. Directs the SBE, in cooperation with ADE, to: 
a) place a program provider that does not meet minimum performance standards on 
probationary status for the remainder of the fiscal year; and  
b) remove, from the approved providers list, a provider that does not meet the minimum 
performance standards for two consecutive years.  FACT SHEET – Amended  
H.B. 2122 
Page 6 
 
 
37. Requires, by July 15, each program provider to annually report to the SBE: 
a) the total number of students funded through the Workforce Diploma Program; 
b) the total number of earned credits; 
c) the total number of earned industry-recognized credentials or stackable credentials earned 
for each funding tier; 
d) the total number of students who graduated through the Program; and 
e) the information required by the SBE-adopted performance measures. 
38. Defines approved program provider as a public, nonprofit or other entity that meets Workforce 
Diploma Program requirements and does not receive federal or state funding or private tuition 
for a student who is funded through the Program. 
39. Defines terms.  
Community College Program 
40. Establishes the Community College Program, within the SBE to be operated in cooperation 
with ADE, to provide adult learners with integrated education and training programs and 
additional study and support services that lead to the issuance of: 
a) a high school or HSE diploma; and  
b) an industry-recognized credential or a community college degree.  
41. Requires a Community College Program applicant to be a community college that is a 
recognized high school or HSE diploma provider and provides education and workforce 
training that leads to industry-recognized credentials or community college degrees. 
42. Allows the SBE, in cooperation with ADE, to request information from any Community 
College Program applicant or participating community college to determine eligibility and 
funding distributions. 
Community College Program Funding, Compliance and Reporting 
43. Establishes the Community College Program Fund, administered by ADE, consisting of 
legislative appropriations and any other monies. 
44. Appropriates $6,000,000 from the state GF in each of FYs 2023, 2024 and 2025 to the 
Community College Program Fund. 
45. Specifies that Community College Program Fund monies are continuously appropriated and 
exempt from lapsing. 
46. Directs ADE to distribute Community College Program Fund monies to all participating 
community colleges that meet the eligibility criteria in a proportional manner based on the 
number of adult learners served. 
47. Caps a participating community college's distribution per full-time student at $3,000 each 
fiscal year and requires part-time students to be funded in proportion to the number of enrolled 
courses or hours of instruction.  FACT SHEET – Amended  
H.B. 2122 
Page 7 
 
 
48. Requires a participating community college to use Community College Program Fund monies:  
a) for adult learners to participate in a high school or HSE diploma program that also offers 
an industry-recognized credential or a community college degree; and  
b) to supplement and not supplant current program offerings.  
49. Allows a portion of the Community College Program Fund monies to be used for additional 
support services to ensure the success of participants, including: 
a) transportation assistance for adult learners with a demonstrated need;  
b) childcare services for dependents while the adult learner is on-site; 
c) college and career counseling; and 
d) job placement assistance. 
50. Allows a participating community college to accept and spend federal monies and private 
grants, gifts, contributions and devises to assist the community college in carrying out 
Community College Program purposes. 
51. Allows the SBE, in cooperation with ADE, to develop a process to bring a participating 
community college into compliance or revoke the college's authorization to participate in the 
Community College Program at the SBE's discretion, in cooperation with ADE.  
52. Requires, by September 30 of each year in which the Legislature appropriates monies to the 
Community College Program Fund, each participating community college to submit a report 
to the Governor, President of the Senate, Speaker of the House of Representatives and 
Secretary of State.  
53. Requires each report to include at least:  
a) the number of adult learners enrolled; 
b) the completion rate of high school and HSE diplomas earned; 
c) the average progress of adult learners toward meeting completion criteria; 
d) the number and type of industry-recognized credentials, community college degree credits 
and community college degrees earned; 
e) a descriptive summary of the Community College Program offered;  
f) the number of adult learners who have newly-acquired proficiency in the English language; 
and 
g) the information required by the SBE-adopted performance measures. 
Adult Education and Workforce Program Performance Measures 
54. Directs, by July 1, 2024, the SBE, in cooperation with ADE, to adopt performance measures 
to evaluate the performance of adult education and workforce development programs in 
Arizona. 
55. Requires the SBE-adopted performance measures to include: 
a) measurements of adult learner progress toward earning a high school or HSE diploma; 
b) the number of high school or HSE diplomas earned; 
c) the number of industry-recognized credentials earned;  
d) the number of adult learners or graduates who have matriculated at an institution of higher 
learning or postsecondary educational institution;   FACT SHEET – Amended  
H.B. 2122 
Page 8 
 
 
e) the number of adult learners or graduates who have newly-acquired employment, who are 
earning higher wages or who have obtained a better job or promotion; and 
f) other relevant measures as adopted by the SBE. 
56.  Requires the SBE-adopted performance measures to: 
a) allow for a comparable evaluation across adult education and workforce development 
programs; and 
b) take into consideration the variety of learning levels of adult learners entering the 
programs. 
Miscellaneous 
57. Becomes effective on the general effective date. 
Amendments Adopted by the Appropriations Committee 
1. Establishes the Workforce Diploma Program and Community College Program, operated by 
the SBE, in cooperation with ADE. 
2. Establishes the Workforce Diploma Program Fund and directs ADE to pay program providers 
prescribed amounts for specific student milestones.  
3. Establishes the Community College Program Fund and requires ADE to proportionally 
distribute Fund monies to all eligible participating community colleges, subject to a cap of 
$3,000 per full-time student.  
4. Appropriates a total of $36,000,000 from the state GF in FYs 2023 through 2025 to the 
Community College Program Fund and the Workforce Diploma Program Fund. 
5. Outlines requirements for the Workforce Diploma Program and the Community College 
Program relating to: 
a) eligibility and approval; 
b) compliance and enforcement;  
c) funding amounts, uses and procedures; and  
d) reporting. 
6. Requires the SBE to adopt performance measures to evaluate the performance of all adult 
education and workforce development programs, rather than performance expectations for the 
High School and Workforce Program. 
7. Prescribes requirements for the adult education and workforce development program 
performance measures. 
8. Removes the requirement that the SBE adopt a funding model for the High School and 
Workforce Program. 
9. Removes fiscal-year limitations on providing High School and Workforce Program schools 
$7,700 per full-time student.  FACT SHEET – Amended  
H.B. 2122 
Page 9 
 
 
10. Adds to the High School and Workforce Program school reporting requirements.  
11. Makes conforming changes. 
House Action 	Senate Action 
ED 2/8/22 DPA 8-2-0-0 ED 3/8/22 DP 7-0-1 
APPROP 2/15/22 W/D  APPROP 3/22/22 DPA 9-0-1 
3
rd
 Read 2/23/22  39-20-1 
Prepared by Senate Research 
April 1, 2022 
LB/KJA/slp