Assigned to ED AS PASSED BY HOUSE ARIZONA STATE SENATE Fifty-Sixth Legislature, First Regular Session AMENDED FACT SHEET FOR S.B. 1400 technical correction; child hearing programs (NOW: community colleges; noncredit workforce training) Purpose Includes noncredit workforce training full-time equivalent student enrollment (FTSE) in a community college district's (CCD's) reported FTSE used to calculate the CCD's expenditure limit. Background The Arizona Constitution establishes CCD expenditure limits which are annually determined by adjusting each CCD's FY 1980 local revenues expenditures for student population and cost of living. The Economic Estimates Commission (EEC), by April 1, must annually determine and publish the expenditure limit for each CCD for the following fiscal year according to prescribed formulas and adjustments based on a CCD's FTSE count. The FTSE used to determine a CCD's expenditure limit is equal to the sum of: 1) the total of basic actual, additional short-term and open entry, open exit and skill center full-time equivalent students, calculated as prescribed, and multiplied by 0.3; and 2) the number of full-time equivalent students enrolled in approved career and technical education courses (Ariz. Const. art. 9 § 21; A.R.S. §§ 15-1466.01 and 41-563) A community college course that is offered for credit must qualify for a certificate or degree, transfer to a college or university, provide skills necessary for entry-level jobs or other college courses, improve job skills, provide continuing education or meet all of the following: 1) have a formal course outline; 2) evaluate students based on course mastery; 3) require faculty to meet CCD standards; 4) base the credit hours awarded on effort required of, and competencies gained by, students; 5) require prerequisite competencies; 6) be developed through formal curriculum review; and 7) have an evaluation component. Noncredit courses are courses that do not meet the criteria established for credit courses and are the financial responsibility of a CCD (A.R.S. § 15-1410). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions Noncredit Workforce Training 1. Includes a CCD's FTSE for noncredit workforce training in the calculation of the CCD's reported FTSE used to determine a CCD's expenditure limitation. FACT SHEET – Amended S.B. 1400 Page 2 2. Requires noncredit workforce training FTSE to be determined by dividing the total class attended contact hours of persons who complete the noncredit workforce training by 640. 3. Deems, as ineligible to be counted in a CCD's FTSE until the following year, a student who does not complete noncredit workforce training by June 30 of each fiscal year. 4. Allows a course that is offered for credit to award credit hours or contact hours, rather than only credits, based on the effort required of and the competencies gained by the students. 5. Requires a noncredit workforce training or a career and technical education course that is offered for contact hours instead of credit hours and meets the prescribed criteria for a credit course to be: a) consistent with the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, as amended by the federal Strengthening Career and Technical Education for the 21st Century Act; b) included on the eligible training provider list maintained according to the federal Workforce Innovation and Opportunity Act; or c) requested pursuant to a formal agreement or contract with a business or entity. 6. Adds noncredit workforce training FTSE records to records a CCD must maintain to support the actual clock hours or contact hours of students. CCD Expenditure Limitation Reporting and Calculation 7. Requires each CCD, by December 31, 2023, to report to the EEC any data or information necessary to determine the CCD's FY 1980 student population, using the inclusion of noncredit workforce training FTSE. 8. Requires the EEC to use the data or information received from each CCD to calculate each CCD's expenditure limit. 9. Repeals the expenditure limit reporting and calculation requirements on July 1, 2024. Miscellaneous 10. Defines noncredit workforce training as a noncredit workforce training or career and technical education course that meets outlined requirements. 11. Defines contact hour as 60 minutes of instructional time that is provided to students in a noncredit workforce training or career and technical education course. 12. Makes technical and conforming changes. 13. Becomes effective on the general effective date. Amendments Adopted by Committee • Adopted the strike-everything amendment. FACT SHEET – Amended S.B. 1400 Page 3 Amendments Adopted by the House of Representatives 1. Removes the addition of noncredit workforce training FTSE to: a) the calculation of a CCD's state aid; and b) the FTSE counts that the Auditor General must annually audit. 2. Adds FTSE records for noncredit workforce training to the records that a CCD must maintain to support the actual clock hours or contact hours attended by students. 3. Requires a CCD to report to the EEC any data or information necessary to determine the CCD's FY 1980 student population, including noncredit workforce training students. 4. Authorizes an entity, rather than an industry, to request a credit course offered for contact hours. 5. Specifies that a training or course requested by a business or entity must be requested pursuant to a formal agreement or contract to satisfy the requirement for a course that awards credit based on contact hours. 6. Reinstates the specifications that noncredit courses are courses that do not meet credit course criteria and are a CCD's financial responsibility. 7. Defines contact hour. 8. Makes technical and conforming changes. Senate Action House Action ED 2/15/23 DPA/SE 7-0-0 ED 3/28/23 DPA 9-0-0-1 3 rd Read 3/2/23 25-5-0 3 rd Read 5/15/23 58-0-1-0-1 Prepared by Senate Research May 16, 2023 LB/MH/slp