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HB 64
UTAH CENTENNIAL OPPORTUNITY PROGRAM
FOR EDUCATION
1996 GENERAL SESSION
STATE OF UTAH
Sponsor: Keele Johnson
Gerry A. Adair
Sheryl L. Allen
Judy Ann Buffmire
Marda Dillree
Beverly Ann Evans
Lloyd W. Frandsen
Kevin S. Garn
Darlene Gubler
Neal B. Hendrickson
Shirley V. Jensen
Susan J. Koehn
Patricia B. Larson
Grant D. Protzman
Pete Suazo
A. Lamont Tyler
Bill Wright
AN ACT RELATING TO HIGHER EDUCATION; ESTABLISHING A UTAH CENTENNIAL
OPPORTUNITY PROGRAM FOR EDUCATION TO ASSIST STUDENTS IN FINANCING
THEIR POSTSECONDARY EDUCATION; PROVIDING DEFINITIONS; PROVIDING FOR
ADMINISTRATION OF THE PROGRAM; ESTABLISHING QUALIFICATIONS FOR
PARTICIPATION IN THE PROGRAM; PROVIDING A $450,000 APPROPRIATION FOR
THE PROGRAM; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
53B-13a-101 , Utah Code Annotated 1953
53B-13a-102 , Utah Code Annotated 1953
53B-13a-103 , Utah Code Annotated 1953
53B-13a-104 , Utah Code Annotated 1953
53B-13a-105 , Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1.
Section
53B-13a-101
is enacted to read:
CHAPTER 13a. UTAH CENTENNIAL OPPORTUNITY PROGRAM
FOR EDUCATION ACT
53B-13a-101. Title.
This chapter is known as the "Utah Centennial Opportunity Program for Education Act."
Section 2.
Section
53B-13a-102
is enacted to read:
53B-13a-102. Definitions.
As used in this chapter:
(1) "Cost of attendance"means the total of costs payable to the institution, plus other direct
educational expenses and transportation and living expenses while attending the institution, set forth
in institutional cost-of-attendance budgets which meet criteria established by board rules.
(2) "Eligible student" means a financially needy undergraduate student who is
unconditionally admitted and enrolled at a Utah public postsecondary institution or a Utah private
nonprofit postsecondary institution which participated in the state Student Incentive Grant Program
for the fiscal year beginning July 1, 1995, on at least a half-time basis, as defined by the board, in
an eligible postsecondary program leading to a defined education or training objective as defined by
the board, and who is a resident student under Section 53B-8-102
and rules of the board.
(3) "Financial aid" means grants or work-study stipends to financially-needy students
enrolled or accepted for enrollment at a Utah public postsecondary institution.
(4) "Financially needy student" means a post high school student at a Utah public
postsecondary institution who demonstrates, on the basis of criteria established by the board, the
financial inability, either through the student's parents or family, or personally, to meet all or a
portion of the total cost of attendance at the institution for any period of attendance as defined by the
board.
(5) "Fiscal Year" means the fiscal year of the state.
(6) "Program" means the Utah Centennial Opportunity Program for Education.
(7) "Utah public postsecondary institution" or "institution" means:
(a) an institution of higher education listed in Subsection
53B-1-102
(1); and
(b) any applied technology center operated by the state or a political subdivision of the state
which provides postsecondary education and training.
Section 3.
Section
53B-13a-103
is enacted to read:
53B-13a-103. Establishment of the Utah Centennial Opportunity Program for
Education.
- 2 -
(1) The Legislature finds that the general welfare and well-being of the state are directly
related to the educational levels and skills of the citizens of the state, and that limited financial aid
for students with demonstrated financial need to help finance costs of attendance at Utah public
postsecondary institutions is a necessary component for ensuring access to postsecondary education
and training as the state enters its second century of statehood.
(2) There is created the Utah Centennial Opportunity Program for Education to provide this
limited financial assistance.
Section 4.
Section
53B-13a-104
is enacted to read:
53B-13a-104. Guidelines for administration of the program.
(1) The board shall use the guidelines set forth in this section to develop and administer the
program.
(2) The board may design either a centralized or decentralized basis for award of grants and
payment of stipends to eligible students, depending on its evaluation of the administrative
capabilities of the institutions attended by the students.
(3) The board may, based on an analysis of costs for institutional administration of the
program, provide from program monies an institutional administrative costs allowance of up to 3.1%
of the total value of the grants and stipends awarded for eligible students at the institution for a fiscal
year.
(4) (a) The board may provide for both need-based grant awards and need-based work-study
stipends to be paid from the monies appropriated and made available for the program, with
need-based work-study stipends given strong emphasis.
(b) The need-based grants or work-study stipends are the only forms of student financial aid
for which program monies may be used.
(5) The board shall:
(a) provide for coordination of program awards with all existing programs of student
financial aid, including all federal programs, except those specifically dedicated to a particular
institution by the donor; and
(b) design the program to complement existing federal, state, and institutional programs.
- 3 -
(6) Rules and administrative requirements for the program shall be developed in consultation
with the institutions of postsecondary education, with appropriate state agencies and private sector
organizations regarding the work-study component, and with other interested groups which may be
able to contribute to the effectiveness of program development and implementation.
(7) The board shall design the program to utilize the packaging approach by which
institutions currently combine loans, grants, employment, and family and individual contributions
toward financing the cost of attendance at postsecondary institutions.
(8) The program shall require use of an appropriate need analysis system, which may be the
same system used for determining eligibility under federal student financial aid programs, in
determining financial need for the awarding of program grants and work-study stipends.
(9) In no case may the amount of program grants or work-study stipends or both, with other
financial aid from any source, both need and merit-based, and with expected family and personal
contributions, exceed the cost of attendance for the student at the institution for a fiscal year.
(10) Criteria for awards of program funds to institutions and students shall be based on
assisting only the most financially needy eligible students.
(11) The board shall establish annually the minimum and maximum amounts for program
grants and work-study stipends for the fiscal year.
(12) Grants and work-study stipends shall be awarded on an annual basis but paid one
quarter or semester at a time, with payments for quarters or semesters after the first term contingent
upon the student's maintaining satisfactory progress as defined by the institution in published
policies or rules.
(13) All awards under the program shall be made without regard to an applicant's race, creed,
color, religion, sex, or ancestry.
(14) Students receiving financial aid under the program are required to apply the monies
toward the cost of attendance at the institution attended, as established pursuant to board rules.
(15) The board shall adopt and publish rules which implement this section and any other
provisions the board reasonably determines necessary to ensure sound fiduciary administration of
program monies and accomplishment of the program objective to assist financially needy state
- 4 -
residents to achieve access to and persistence in postsecondary education and training.
(16) The board may require annual participation agreements from eligible postsecondary
institutions, which shall include agreement to provide information needed by the board to administer
the program, for compliance with program rules in recommending or awarding program grants and
work-study stipends to individual students, for submission of annual reports as required by the board,
and for cooperation in program reviews and financial audits as the board may determine to be
necessary.
(17) The board, with cooperation from participating institutions, shall:
(a) establish a research data base;
(b) conduct appropriate research into the effects of student financial aid on students' access
to and persistence in postsecondary education and training; and
(c) utilize the research in planning and modifying the design of the program.
(18) The board shall report annually to the governor and the Legislature on:
(a) the administration of the program;
(b) utilization of program monies;
(c) benefits in fulfillment of the purposes established for the program; and
(d) any recommendations for program modification, including recommended funding levels.
(19) The board shall regularly provide information to students on employment opportunities
in occupational and professional training and degree programs as identified through annual
marketplace surveys.
Section 5.
Section
53B-13a-105
is enacted to read:
53B-13a-105. Appropriation -- Disbursal of financial aid -- Additional resources.
(1) (a) There is appropriated from the General Fund for fiscal year 1996-97, $450,000 to the
State Board of Regents to establish the student financial aid program authorized under this chapter.
(b) The board may add to this amount any amount included in the regular Student Financial
Aid line item appropriation to the board which is not required to be used for matching of federal
allocations to institutions of the Utah System of Higher Education for campus-based student
financial aid programs, or the board for the State Student Incentive Grant Program, under Title IV
- 5 -
of the United States Higher Education Act.
(2) The board shall allocate the monies available under the program to each eligible
institution in the same proportion as the amount of Pell Grant monies received by the institution for
resident under graduate students during the most recently completed fiscal year that Pell Grants were
given bears to the total Pell Grant monies received by all eligible institutions for resident under
graduate students during that same year.
(3) The board may accept grants, gifts, bequests, and devises of real and personal property
from any source for the purpose of granting student financial aid in addition to that funded by the
state.
Section 6. Effective date.
This act takes effect on July 1, 1996.
- 6 -
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