Assigned to ED & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2123
commerce authority; adult workforce education
(NOW: adult workforce diploma program)
Purpose
Establishes the Adult Workforce Diploma Program (Program) to assist a person who is at
least 21 years old in earning a high school diploma (diploma) and developing skills to prepare for
employment through qualifying providers and in a campus-based, online or blended modality.
Outlines requirements for Program provider eligibility, performance expectations, funding and
administration. Establishes the Program Fund and appropriates $6,000,000 from the state General
Fund to the Program Fund in each of FYs 2023 and 2024.
Background
Schools must admit children who are between the ages of 6 and 21, who reside in the school
district and who meet the requirements for enrollment in one of the grades or programs offered in
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 HSE diploma test approved by the State Board
of Education (SBE). An adult education provider is a school district, community college district,
correctional facility or community-based organization, an 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. 2123 appropriates $6,000,000 from the state General Fund in each of FYs 2023 and
2024 to the Program Fund.
Provisions
Program Administration
1. Establishes the Program within the SBE to assist a person who is at least 21 years old in earning
a diploma and developing critical employability and career and technical skills to prepare for
employment.
2. Directs the SBE to operate the Program in cooperation with ADE and allows the Program to
be delivered in a campus-based, online or blended modality. FACT SHEET
H.B. 2122
Page 2
3. Requires the SBE, in consultation with ADE, to annually:
a) by August 15, issue a request for qualifications for eligible program providers to participate
in the Program; and
b) by October 15, approve all qualified Program providers for placement on an approved
program providers list.
4. Directs approved Program providers to begin enrolling students by November 15 of each year.
5. Prescribes the following criteria for approval as a Program provider:
a) be operating a regionally-accredited diploma-granting entity;
b) have the ability to develop a learning plan for each student that integrates graduation
requirements and career goals;
c) require coursework for each student that fulfills graduation requirements and leads to an
industry-recognized credential;
d) provide a course catalog that includes all courses that are necessary to meet graduation
requirements; and
e) have the ability to provide:
i. remediation opportunities in literacy and numeracy;
ii. career pathways coursework;
iii. industry-recognized credentials and stackable credentials;
iv. career placement services; and
v. academic skill intake assessments and transcript evaluations.
6. Requires the SBE, beginning with the end of the second fiscal year of the 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.
7. Directs the SBE 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 Program providers list, a Program provider that does not meet
the minimum performance standards for two consecutive years.
8. Specifies that providers maintain approval status unless removed from the approved providers
list.
Program Fund and Performance Expectations
9. Establishes the Program Fund, administered by ADE, consisting of legislative appropriations,
gifts, grants and other donations.
10. Appropriates $6,000,000 from the state General Fund in each of FYs 2023 and 2024 to the
Program Fund.
11. Specifies that Program Fund monies are continuously appropriated.
12. Directs, by July 1, 2024, the SBE, in consultation with ADE, to adopt:
a) performance expectations to evaluate Program providers; and
b) an adult education and workforce performance funding model (Program funding model). FACT SHEET
H.B. 2122
Page 3
13. Requires the SBE-adopted performance expectations to include:
a) measurements of student progress toward earning a diploma;
b) the graduation rates of students earning at least one academic credit;
c) the number of industry-recognized credentials earned;
d) the number of students who have newly-acquired proficiency in the English language;
e) the number of students or graduates who have matriculated in an institution of higher
learning or postsecondary educational institution;
f) the number of students or graduates who have newly-acquired employment at a wage at
least 150 percent of the state minimum wage; and
g) other relevant measures.
14. Requires, for the Program funding model:
a) at least half of the total monies provided to a Program provider to be based on the provider's
average performance in the prior two fiscal years; and
b) the SBE to consider all adopted performance expectations, except enrollment
15. Requires a Program provider, beginning FY 2025 and subject to legislative appropriation, to
receive funding according to the Program funding model.
16. Directs ADE to pay a Program provider in FYs 2023 and 2024 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 earned industry-recognized credential or stackable credential requiring up to
50 hours of training;
c) $500 for each earned industry-recognized credential or stackable credential requiring
between 50 and 100 hours of training;
d) $750 for each industry-recognized credential or stackable credential requiring over 100
hours of training; and
e) $1,000 for each earned diploma.
17. Directs a Program provider for FYs 2023 and 2024 to submit monthly invoices to ADE by the
10th calendar day of each month for milestones met in the previous calendar month.
18. Directs ADE to:
a) pay Program providers in the order in which invoices are submitted until all available
monies are exhausted; and
b) provide a written update to the Program providers by the last calendar day of each month
that includes the aggregate total dollars paid to Program providers to date and the estimated
number of enrollments still available for the Program year.
Miscellaneous
19. Requires each Program provider to annually report to the SBE, by July 15:
a) the total number to students funded through the Program;
b) the total number of earned credits;
c) the total number of earned industry-recognized credential or stackable credentials earned
for each funding tier;
d) the total number of students who graduated through the Program; FACT SHEET
H.B. 2122
Page 4
e) the number of students who have newly-acquired proficiency in the English language;
f) the number of students or graduates who have matriculated in an institution of higher
learning or postsecondary educational institution; and
g) the number of students or graduates who have newly-acquired employment at a wage at
least 150 percent of the state minimum wage.
20. Defines approved program provider as a public, nonprofit or other entity that meets Program
requirements and does not receive federal or state funding or private tuition for a student who
is funded through the Program.
21. Defines terms.
22. Becomes effective on the general effective date
House Action
ED 2/2/22 DPA/SE 7-2-0-1
APPROP 2/14/22 W/D
3
rd
Read 2/23/22 44-15-1
Prepared by Senate Research
March 4, 2022
LB/slp