Bill Text: AZ HB2391 | 2012 | Fiftieth Legislature 2nd Regular | Introduced
Bill Title: Postsecondary education reforms
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-18 - Referred to House HEIR Committee [HB2391 Detail]
Download: Arizona-2012-HB2391-Introduced.html
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REFERENCE TITLE: postsecondary education reforms |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2391 |
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Introduced by Representative Pratt
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AN ACT
amending title 15, chapter 14, article 5, Arizona Revised Statutes, by adding section 15‑1851.01; amending Title 15, chapter 14, article 5, Arizona Revised Statutes, by adding section 15‑1857; amending section 43‑1022, Arizona Revised Statutes; making appropriations; relating to postsecondary education.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 14, article 5, Arizona Revised Statutes, is amended by adding section 15‑1851.01, to read:
15-1851.01. Commission for postsecondary education; university centers pilot program; program termination
A. The commission for postsecondary education shall develop, implement and administer a five year university centers pilot program. The commission shall establish university centers in two different counties with a population of eight hundred thousand persons or less. The commission shall select the university center sites based on proposals submitted by a community college, a community college district, a university under the jurisdiction of the Arizona board of regents, a private postsecondary education institution in this state or a partnership composed of any combination of these entities. Proposals submitted pursuant to this subsection shall include each of the following components:
1. Evidence that access to baccalaureate degree programs is limited in that geographic area.
2. A description of the proposed baccalaureate degree programs to be offered in addition to baccalaureate degrees offered by northern Arizona university.
3. Evidence of sufficient student demand for the proposed baccalaureate degree programs.
4. Evidence of community support for the proposed university center and the proposed baccalaureate degree programs.
5. Evidence of the long-term commitment of the initial proponents of the university center.
6. A description of the delivery methods to be used to maximize student access to courses and programs.
7. A description of the facilities, equipment and other resources necessary for the university center. The commission shall give priority to proposals that maximize the use of existing infrastructure.
8. A description of the proposed evaluation system to assess costs and the enrollment and performance of baccalaureate students, including retention rates, graduation rates and transfer rates.
9. A description of the proposed academic and financial aid services.
10. Evidence of collaboration with public and private providers of baccalaureate degrees.
B. The program established by this section ends on July 1, 2017 pursuant to section 41‑3102.
Sec. 2. Title 15, chapter 14, article 5, Arizona Revised Statutes, is amended by adding section 15-1857, to read:
15-1857. University access grant pilot program; fund; program termination; definition
A. The commission for postsecondary education shall develop, implement and administer a five year university access grant pilot program. The commission shall develop application forms, procedures and deadlines and shall select qualifying students each year for participation in the university access grant pilot program. Participating full-time students shall receive a grant in an amount of up to two thousand five hundred dollars annually to be used to pay all or a portion of the tuition, books and fees charged for upper division courses at the public or private postsecondary institution for a maximum of six consecutive semesters. Participating half‑time students shall receive a grant in an amount of up to one thousand two hundred fifty dollars annually to be used to pay all or a portion of the tuition, books and fees charged for upper division courses at the public or private postsecondary institution for a maximum of twelve consecutive semesters. A student who is awarded a grant pursuant to this section may use a portion of the grant to lease computer equipment and obtain internet access if the student does not currently have access to a computer.
B. A student who meets all of the following criteria is eligible to submit an application for consideration by the commission for a grant under the university access grant pilot program:
1. Has obtained an associate degree from a community college district or from a community college under the jurisdiction of an Indian tribe in this state that meets the same accreditation standards as a community college district or has obtained at least sixty credit hours of transferable lower division coursework.
2. Registers for enrollment as a student in a baccalaureate program at an accredited public or private postsecondary institution in this state that awards four year degrees.
3. Demonstrates to the satisfaction of the commission either of the following:
(a) That the student is unable to participate in baccalaureate course offerings at a public postsecondary institution because the student resides more than ten miles from the nearest campus of a public postsecondary institution that offers baccalaureate degrees.
(b) Work obligations, family obligations or other personal obligations or personal situations prevent the student from participating in baccalaureate course offerings.
4. Has not obtained a baccalaureate or professional degree.
5. Is a resident of this state.
6. Demonstrates financial need for the grant to the satisfaction of the commission.
C. In addition to the eligibility criteria prescribed in subsection B of this section, the commission shall consider other potential sources of financial aid for each applicant to ensure that the grants are awarded to students who demonstrate the greatest financial need.
D. The commission shall give priority to grant applicants who are pursuing a degree in employment areas that are underserved in the applicant's community.
E. The university access grant program fund is established consisting of legislative appropriations. The commission shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The commission shall make awards for payment of tuition at eligible colleges or universities to students who are selected to participate in the university access grant pilot program pursuant to subsection A of this section.
F. The commission shall develop a program evaluation procedure in order to determine the effectiveness of the university access grant pilot program and to determine the extent and distribution of students eligible for participation in the program.
G. A student who fails to receive a baccalaureate degree within a four year period of receipt of the program award shall reimburse the university access grant program fund for all grants received pursuant to subsection A of this section.
H. The program established by this section ends on July 1, 2017 pursuant to section 41‑3102.
I. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 or section 15‑1402.01 and that is a political subdivision of this state.
Sec. 3. Section 43-1022, Arizona Revised Statutes, is amended to read:
43-1022. Subtractions from Arizona gross income
In computing Arizona adjusted gross income, the following amounts shall be subtracted from Arizona gross income:
1. The amount of exemptions allowed by section 43‑1023.
2. Benefits, annuities and pensions in an amount totaling not more than two thousand five hundred dollars received from one or more of the following:
(a) The United States government service retirement and disability fund, retired or retainer pay of the uniformed services of the United States, the United States foreign service retirement and disability system and any other retirement system or plan established by federal law.
(b) The Arizona state retirement system, the corrections officer retirement plan, the public safety personnel retirement system, the elected officials' retirement plan, an optional retirement program established by the Arizona board of regents under section 15‑1628, an optional retirement program established by a community college district board under section 15‑1451 or a retirement plan established for employees of a county, city or town in this state.
3. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43‑1333 decreases the beneficiary's Arizona gross income.
4. The amount of any distributions from an individual retirement account as provided for in section 408 of the internal revenue code or from a qualified retirement plan of a self‑employed individual as provided for in section 401 of the internal revenue code to the extent that total adjustments made pursuant to this paragraph in all tax years do not exceed the total of all contributions made by the taxpayer to such plans prior to December 31, 1975, which were included in computing Arizona taxable income.
5. The amount of income on an installment receivable which is recognized pursuant to the internal revenue code and which has already been recognized on the death of the taxpayer for purposes of this title for tax years ending before January 1, 1990.
6. Interest income received on obligations of the United States, less any interest on indebtedness, or other related expenses, and deducted in arriving at Arizona gross income, which were incurred or continued to purchase or carry such obligations.
7. The amount of any income tax refunds which were received from states other than Arizona and which were included as income in computing federal adjusted gross income.
8. Annuity income included in federal adjusted gross income pursuant to section 72 of the internal revenue code if the first payment with respect to such annuity was received prior to December 31, 1978.
9. The excess of a partner's share of income required to be included under section 702(a)(8) of the internal revenue code over the income required to be included under chapter 14, article 2 of this title.
10. The excess of a partner's share of partnership losses determined pursuant to chapter 14, article 2 of this title over the losses allowable under section 702(a)(8) of the internal revenue code.
11. The amount by which the adjusted basis of property described in this paragraph and computed pursuant to this title and the income tax act of 1954, as amended, exceeds the adjusted basis of such property computed pursuant to the internal revenue code. This paragraph shall apply to all property which is held for the production of income and which is sold or otherwise disposed of during the taxable year other than depreciable property used in a trade or business.
12. The amount allowed by section 43‑1024 for amortization, by a qualified defense contractor certified by the Arizona commerce authority under section 41‑1508, of a capital investment for private commercial activities.
13. The amount of gain included in federal adjusted gross income on the sale or other disposition of a capital investment that a qualified defense contractor has elected to amortize pursuant to section 43‑1024.
14. The amount allowed by section 43‑1025 for contributions during the taxable year of agricultural crops to charitable organizations.
15. The portion of any wages or salaries paid or incurred by the taxpayer for the taxable year that is equal to the amount of the federal work opportunity credit, the empowerment zone employment credit, the credit for employer paid social security taxes on employee cash tips and the Indian employment credit that the taxpayer received under sections 45A, 45B, 51(a) and 1396 of the internal revenue code.
16. The amount of prizes or winnings less than five thousand dollars in a single taxable year from any of the state lotteries established and operated pursuant to title 5, chapter 5, article 1, except that all such winnings before March 22, 1983, including periodic distributions from such winnings made after March 22, 1983, may be subtracted.
17. The amount of exploration expenses that is determined pursuant to section 617 of the internal revenue code, that has been deferred in a taxable year ending before January 1, 1990 and for which a subtraction has not previously been made. The subtraction shall be made on a ratable basis as the units of produced ores or minerals discovered or explored as a result of this exploration are sold.
18. The amount included in federal adjusted gross income pursuant to section 86 of the internal revenue code, relating to taxation of social security and railroad retirement benefits.
19. To the extent not already excluded from Arizona gross income under the internal revenue code, compensation received for active service as a member of the reserves, the national guard or the armed forces of the United States, including compensation for service in a combat zone as determined under section 112 of the internal revenue code.
20. The amount of unreimbursed medical and hospital costs, adoption counseling, legal and agency fees and other nonrecurring costs of adoption not to exceed three thousand dollars. In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife shall not exceed three thousand dollars. The subtraction under this paragraph may be taken for the costs that are described in this paragraph and that are incurred in prior years, but the subtraction may be taken only in the year during which the final adoption order is granted.
21. The amount authorized by section 43‑1027 for the taxable year relating to qualified wood stoves, wood fireplaces or gas fired fireplaces.
22. With respect to a medical savings account established pursuant to section 43‑1028:
(a) An eligible individual may subtract:
(i) The amount of contributions made by the individual's employer during the taxable year to the individual's medical savings account pursuant to section 43‑1028 to the extent that the employer contributions are included in the individual's federal adjusted gross income.
(ii) The amount deposited by the individual in the account during the taxable year to the extent that the individual's contributions are included in the individual's federal adjusted gross income.
(b) The individual's employer may subtract the amount of contributions made by the employer to a medical savings account established on the individual's behalf to the extent that the contributions are not deductible under the internal revenue code.
23. The amount by which a net operating loss carryover or capital loss carryover allowable pursuant to section 43‑1029, subsection F exceeds the net operating loss carryover or capital loss carryover allowable pursuant to section 1341(b)(5) of the internal revenue code.
24. Any amount of qualified educational expenses that is distributed from a qualified state tuition program determined pursuant to section 529 of the internal revenue code and that is included in income in computing federal adjusted gross income.
25. Any item of income resulting from an installment sale that has been properly subjected to income tax in another state in a previous taxable year and that is included in Arizona gross income in the current taxable year.
26. The amount authorized by section 43‑1030 relating to holocaust survivors.
27. The amount authorized by section 43‑1031 for constructing an energy efficient residence.
28. An amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year computed as if the election described in section 168(k)(2)(D)(iii) of the internal revenue code had been made for each applicable class of property in the year the property was placed in service.
29. With respect to property that is sold or otherwise disposed of during the taxable year by a taxpayer that complied with section 43‑1021, paragraph 26 with respect to that property, the amount of depreciation that has been allowed pursuant to section 167(a) of the internal revenue code to the extent that the amount has not already reduced Arizona taxable income in the current or prior taxable years.
30. With respect to property for which an adjustment was made under section 43‑1021, paragraph 27, an amount equal to one‑fifth of the amount of the adjustment pursuant to section 43‑1021, paragraph 27 in the year in which the amount was adjusted under section 43‑1021, paragraph 27 and in each of the following four years.
31. For taxable years beginning from and after December 31, 2007 through December 31, 2012, The amount contributed during the taxable year to college savings plans established pursuant to section 529 of the internal revenue code to the extent that the contributions were not deducted in computing federal adjusted gross income. The amount subtracted shall not exceed:
(a) Seven hundred fifty dollars for a single individual or a head of household.
(b) One thousand five hundred dollars for a married couple filing a joint return. In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife shall not exceed one thousand five hundred dollars.
32. To the extent not already excluded from Arizona gross income under the internal revenue code, the amount authorized by section 43‑1032 for displaced pupils choice grants.
33. The amount of any original issue discount that was deferred and not allowed to be deducted in computing federal adjusted gross income or federal taxable income in the current taxable year pursuant to section 108(i) of the internal revenue code as added by section 1231 of the American recovery and reinvestment act of 2009 (P.L. 111‑5).
34. The amount of previously deferred discharge of indebtedness income that is included in the computation of federal adjusted gross income or federal taxable income in the current taxable year pursuant to section 108(i) of the internal revenue code as added by section 1231 of the American recovery and reinvestment act of 2009 (P.L. 111-5), to the extent that the amount was previously added to Arizona gross income pursuant to section 43‑1021, paragraph 33.
35. The portion of the net operating loss carryforward that would have been allowed as a deduction in the current year pursuant to section 172 of the internal revenue code if the election described in section 172(b)(1)(H) of the internal revenue code had not been made in the year of the loss that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income. This subtraction only applies to taxpayers who made an election under section 172(b)(1)(H) of the internal revenue code as amended by section 1211 of the American recovery and reinvestment act of 2009 (P.L. 111-5) or as amended by section 13 of the worker, homeownership, and business assistance act of 2009 (P.L. 111‑92).
36. For taxable years beginning from and after December 31, 2013, the amount of any net capital gain included in federal adjusted gross income for the taxable year derived from investment in a qualified small business as determined by the Arizona commerce authority pursuant to section 41‑1518.
Sec. 4. Appropriation; university access grant program fund; exemption
A. The sum of $2,000,000 is appropriated from the state general fund in fiscal year 2012-2013 to the commission for postsecondary education for deposit in the university access grant program fund established by section 15-1855, Arizona Revised Statutes, as added by this act.
B. Of the monies appropriated pursuant to subsection A of this section, no more than $200,000 shall be used by the commission for postsecondary education for administrative costs.
C. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
Sec. 5. Appropriation; university centers pilot program; exemption
A. The sum of $5,000,000 is appropriated from the state general fund in fiscal year 2012-2013 to the commission for postsecondary education for the costs to implement and maintain the university centers pilot program established by section 15-1851.01, Arizona Revised Statutes, as added by this act.
B. Of the monies appropriated pursuant to subsection A of this section, no more than $500,000 shall be used by the commission for postsecondary education for administrative costs.
C. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
