SB 1742
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: APPROP DP 6-5-0-0
SB 1742: higher education; 2024-2025.
Sponsor: Senator Kavanagh (with permission of committee on Rules), LD 3
Substituted for HB 2904
Overview
Contains provisions relating to higher education needed to implement the FY 2025 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general
appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the
General Appropriations Act (feed bill) to contain only appropriations for the different state
departments, state institutions, public schools and interest on public debt. Statutory changes
necessary to reconcile the appropriations made in the feed bill and other changes are drafted
into separate budget bills. These bills are prepared according to subject area.
Provisions
Arizona Community Colleges Promise Program (Permanent Law) (Sec. 1)
1. Establishes the Arizona Community College Promise Program Fund (Arizona Promise
Fund) that is administered by the Arizona Board of Regents (ABOR) and consists of
legislative appropriations.
2. States Arizona Promise Fund monies are continuously appropriated and exempt from
lapsing.
3. Directs ABOR to distribute:
a) 20% of Arizona Promise Fund monies appropriated each fiscal year proportionately
among all CCDs; and
b) 80% of Arizona Promise Fund monies appropriated each fiscal year proportionately
among the community college districts (CCDs) based on each CCD's full -time
equivalent student enrollment (FTSE) relative to the preceding year's statewide
audited FTSE.
4. Requires each CCD, if monies are appropriated to the Arizona Promise Fund, to establish
a Community College Promise Scholarship Fund (CCD Promise Fund) that consists of
Arizona Promise Fund monies, grants, gifts and contributions and devises.
5. Specifies that CCD Promise Fund monies are continuously appropriated and may be used
to provide financial assistance to eligible students.
6. Allows each CCD to use up to 10% of monies it receives from the Arizona Promise Fund
for administrative expenses and student support services.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1742
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7. Directs a CCD, if there are insufficient CCD Promise Fund monies to provide financial
assistance to all eligible students and when considering scholarship priorities, to consider:
a) socioeconomic factors that pose barriers to student success;
b) a student's community engagement; and
c) additional factors determined by the CCD.
8. Deems a student eligible for an initial CCD Promise Fund financial aid award if they:
a) qualify for resident student status;
b) satisfy the community college's admission standards;
c) submit the Free Application for Federal Student Aid (FAFSA) and meet federal Pell
grant income eligibility criteria; and
d) are admitted to and enrolled in the community college.
9. Stipulates that to maintain eligibility after receiving an initial CCD Promise Fund
financial award, a student must:
a) annually submit the FAFSA;
b) maintain enrollment at a community college and satisfactory academic progress; and
c) comply with the maintenance of eligibility standards adopted by the CCD, CCD board
or community college.
1. Instructs each CCD board or community college to establish a policy or guidelines
outlining qualified expenses for the use of financial aid award monies that:
a. allow a recipient to use the monies for any cost of attending the community college;
and
b. do not require the monies to be used only for tuition.
2. Reduces a student's CCD Promise Fund financial aid award by any other federal aid
scholarship, public grant and public aid the student receives from or through the
community college, except the award is not reduced by the federal grants the student
receives from the Arizona Education and Training Voucher Program.
3. Defines community college, district and district board.
Miscellaneous
4. As session law, repeals the Spouses and Dependents of Law Enforcement Officers Tuition
Scholarship Fund on July 1, 2025, and transfers all unexpended and unencumbered
monies to the state General Fund. (Sec. 2)
5. As session law for FY 2025, allows each dollar raised by the surcharge on student
registration fees assessed pursuant to the Arizona Financial Aid Trust Fund to be
matched by less than $2 appropriated by the Legislature. (Sec. 3)
6. As session law for FY 2025, declares science, technology, engineering and mathematics
and workforce programs state aid and operating state aid CCDs are as specified in the
General Appropriations Act. (Sec. 4, 5)
7. Makes conforming changes. (Sec. 2)