HB 4161

House Engrossed
higher education;
  2026-2027
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 133
HOUSE BILL 4161
AN
ACT
amending sections 15-1626 and 15-1650.06,
Arizona Revised Statutes; appropriating monies; relating to higher education.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-1626, Arizona Revised
Statutes, is amended to read:
START_STATUTE15-1626. General administrative powers and duties of board; definition
A. The Arizona board of regents shall:
1. Have and exercise the powers necessary for the
effective governance and administration of the institutions under the board's
control.� To that end, the board may adopt, and authorize each university to
adopt, regulations, policies, rules or measures as are deemed necessary and may
delegate in writing to the board's committees, to university presidents, or the
presidents' designees, or to other entities under the board's control, any part
of the board's authority for the administration to administer and governance of govern those institutions, including those powers enumerated in
section 15-1625, subsection B, paragraphs 2 and 4, paragraphs 3, 4, 8, 9,
11, 12 and 22 of this subsection and subsection B of this section.� The board may rescind any delegation of authority may be rescinded by the board at any time in whole or in part.
2. Appoint and employ and determine the compensation
of presidents with the power and authority and for the purposes in connection
with the operation of the institutions as the board deems necessary.
3. Appoint and employ and determine the compensation
of vice presidents, deans, professors, instructors, lecturers, fellows and the
other officers and employees with the power and authority and for the purposes
in connection with the operation of the institutions as the board deems
necessary, or delegate the board's authority pursuant to paragraph 1 of this
subsection.
4. Remove any officer or employee when the interests
of education in this state so require in accordance with the board's personnel
rules and policies.
5. Fix tuitions and fees to be charged and
differentiate the tuitions and fees between institutions and between residents,
nonresidents, undergraduate students, graduate students, students from foreign
countries and students who have earned credit hours in excess of the credit
hour threshold. For the purposes of this paragraph, the
undergraduate credit hour threshold is one hundred forty-five hours for
students who attend a university under the jurisdiction of the board. The
undergraduate credit hour threshold shall be based on the actual full-time
equivalent student enrollment counted on the forty-fifth day of every
fall and spring semester, divided by two, and any budget adjustment based on
student enrollment shall occur in the fiscal year following the actual full-time
equivalent student enrollment count. The undergraduate credit hour
threshold shall not apply to degree programs that require credit hours above
the credit hour threshold, credits earned in the pursuit of up to two
baccalaureate degrees, credits earned in the pursuit of up to two state
regulated licensures or certificates, credits earned in the pursuit of teaching
certification, credits transferred from a private institution of higher
education, credits transferred from an institution of higher education in
another state, credits earned at another institution of higher education but
that are not accepted as transfer credits at the university where the student
is currently enrolled and credits earned by students who enroll at a university
under the jurisdiction of the board more than twenty-four months after the end
of that student's previous enrollment at a public institution of higher
education in this state. On or before October 15 of each year, the board shall
report to the joint legislative budget committee the number of in-state
students and out-of-state students who were enrolled at
universities under the jurisdiction of the board during the previous fiscal
year and who met or exceeded the undergraduate credit hour threshold prescribed
in this paragraph. The amount of tuition and fees included in the
operating budget for the university adopted by the board as prescribed in
paragraph 13 of this subsection is subject to legislative appropriation and
shall be deposited in a separate tuition and fees subaccount for each
university. All other tuition and fee revenue shall be retained by each
university for expenditure as approved by the board in a separate local tuition
and fees subaccount for each university. This subaccount shall
consist of only tuition and fees. The universities shall not use any
tuition or fee revenue to fund or support an alumni association.
6. Adopt rules to govern the board's tuition and
academic fee setting process that provide for the following:
(a) At least one public hearing at each university
as an opportunity for students and members of the public to comment on any
proposed increase in tuition or fees.
(b) Publication of the notice of public hearing at
least ten days before the hearing in a newspaper of general circulation in
Maricopa county, Coconino county and Pima county. The notice shall
include the date, time and location of the public hearing.
(c) Public disclosure by each university of any
proposed increases in tuition or fees at least ten days before the public
hearing.
(d) A roll call vote of any final board action on
changes in tuition, including tuition rate changes for online programs, or
academic fees.
(e) Public disclosure by the board and each
university of any final board action on changes in tuition or academic fees.
7. Pursuant to section 35-115, submit a budget
request for each institution under the board's jurisdiction that includes the
estimated tuition and fee revenue available to support the programs of the
institution as described in the budget request. The estimated available tuition
and fee revenue shall be based on the tuition and registration fee rates in
effect at the time the budget request is submitted with adjustments for
projected changes in enrollment as provided by the board.
8. Establish curricula and designate courses at the
several institutions that in the board's judgment will best serve the interests
of this state.
9. Award degrees and diplomas on the completion of
the courses and curriculum requirements that the board deems appropriate.
10. Prescribe qualifications for admission of all
students to the universities.� The board shall establish policies for
guaranteed admission that ensure fair and equitable access to students in this
state from public, private and charter schools and homeschools. For
the purpose of determining the qualifications of honorably discharged veterans,
veterans are those persons who served in the armed forces for at least two
years and who were previously enrolled at a university or community college in
this state. Prior failing grades received by a veteran at the
university or community college in this state may not be considered.
11. Adopt any energy conservation standards adopted
by the department of administration for the construction of new buildings.
12. Employ for the time and purposes that the board
requires attorneys whose compensation shall be fixed and paid by the board.
Litigation to which the board is a party and for which self-insurance is
not provided may be compromised or settled at the direction of the board.
13. Adopt annually an operating budget for each
university equal to the sum of appropriated state general fund monies and the
amount of tuition and fees approved by the board and allocated to each
university operating budget.
14. In consultation with the state board of
education and other education groups, develop and implement a program to award
honors endorsements to be affixed to the high school diplomas of qualifying
high school pupils and to be included in the transcripts of pupils who are
awarded endorsements. The Arizona board of regents shall develop
application procedures and testing criteria and adopt testing instruments and
procedures to administer the program. In order to receive an honors
endorsement, a pupil must demonstrate an extraordinary level of knowledge,
skill and competency as measured by the testing instruments adopted by the
Arizona board of regents in mathematics, English, science and social studies.�
Additional subjects may be added at the determination of the Arizona board of
regents.� The program is voluntary for pupils.
15. Require the publisher of each literary and
nonliterary textbook used in the universities of this state to furnish to the
board computer software in a standardized format when software becomes
available for nonliterary textbooks from which braille versions of the
textbooks may be produced.
16. Require universities that provide a degree in
education to require courses that are necessary to obtain a provisional
structured English immersion endorsement as prescribed by the state board of
education.
17. Acquire for each classroom
United States flags that are manufactured in the United States and that
are at least two feet by three feet, hardware to appropriately display the
United States flags and a legible copy of the Constitution of the United States
and the Bill of Rights.� The board shall display the flags in each classroom in
accordance with title 4 of the United States Code and display a legible copy of
the Constitution of the United States and the Bill of Rights adjacent to the
flag.
18. To facilitate the transfer of military personnel
and their dependents to and from the public schools of this state, pursue, in
cooperation with the state board of education, reciprocity agreements with
other states concerning the transfer credits for military personnel and their
dependents.� A reciprocity agreement entered into pursuant to this paragraph
shall:
(a) Address procedures for each of the following:
(i) The transfer of student records.
(ii) Awarding credit for completed coursework.
(iii) Permitting allowing a student to satisfy the graduation requirements
prescribed in section 15-701.01 through the successful performance on
comparable exit-level assessment instruments administered in another state.
(b) Include appropriate criteria developed by the
state board of education and the Arizona board of regents.
19. Require a university to publicly post notices of
all of the university's employment openings, including the title and
description, instructions for applying and relevant contact information.
20. In consultation with the community college
districts in this state, develop and implement common equivalencies for
specific levels of achievement on advanced placement examinations and
international baccalaureate examinations in order to award commensurate
postsecondary academic credits at community colleges and public universities in
this state.
21. On or before August 1 of each year, report to
the joint legislative budget committee the graduation rate by university campus
during the previous fiscal year. The board shall also report the
retention rate by university campus and by class, as determined by date of
entry during the previous fiscal year.
22. Enter into an agreement with one or more career
technical education district governing boards pursuant to section 15-393,
subsection K if the agreement, in the board's
judgment, will serve the interests of this state.
B. The Arizona board of
regents shall adopt personnel policies for all employees of the board and the
universities.
C. In conjunction with the auditor general, the
Arizona board of regents shall develop a uniform accounting and reporting
system, which shall be reviewed by the joint legislative budget committee
before final adoption by the board.� The board shall require each university to
comply with the uniform accounting and reporting system.
D. The Arizona board of regents may employ legal
assistance in procuring loans for the institutions from the United States
government.� Fees or compensation paid for legal assistance pursuant to this
subsection shall not be a claim on the state general fund but shall be paid
from funds of the institutions.
E. The Arizona board of regents shall approve or
disapprove any contract or agreement entered into by the university of Arizona
hospital with the Arizona industrial development authority.
F. The Arizona board of regents may adopt policies
that authorize the institutions under its the
board's jurisdiction to enter into employment contracts with nontenured
employees for periods of more than one year but not more than five years.� The
policies must prescribe limits on the authority of the institutions to enter
into employment contracts for periods of more than one year but not more than
five years, including the requirement that the board approve the contracts.
G. The Arizona board of regents may adopt a plan or
plans for employee benefits that allow participation in a cafeteria plan that
meets the requirements of the United States internal revenue code of 1986.
H. The Arizona board of regents may establish a
program for the exchange of students between the universities under the
jurisdiction of the board and colleges and universities located in the state of
Sonora, Mexico.� Notwithstanding subsection A, paragraph 5 of this section, the
program may provide for in-state tuition at the universities under the
jurisdiction of the board for fifty Sonoran students in exchange for similar
tuition provisions for up to fifty Arizona students enrolled or seeking
enrollment in Sonoran colleges or universities. The board may direct
the universities to work in conjunction with the Arizona-Mexico
commission to coordinate recruitment and admissions activities.
I. The Arizona board of regents, in collaboration
with the universities under the board's jurisdiction, shall adopt a performance
funding model using performance metrics that include the increase in degrees
awarded, the increase in completed student credit hours and the increase in
externally generated research and public service funding. The
funding formula may give added weight to degrees related to science,
technology, engineering and mathematics and other high-value degrees that
are in short supply or that are essential to this state's long-term economic
development strategy.
J. The Arizona board of regents shall use the
performance funding model adopted pursuant to subsection I of this section in
developing and submitting budget requests for the universities under the
board's jurisdiction.
K. On or before November 1 of each year, the Arizona
board of regents shall submit to the joint legislative budget committee and the
governor's office of strategic planning and budgeting a report on university
debt and obligations, including:
1. Long-term notes and obligations.
2. Certificates of participation and other
obligations pursuant to any lease-purchase agreements.
3. Revenue bonds.
4. Bonds issued pursuant to section 15-1682.03.
5. Commercial paper issued pursuant to section 15-1696.
L. The report submitted pursuant to subsection K of
this section must contain, for the most recent fiscal year:
1. The aggregate level of outstanding principal and
the principal and interest payments, by type of debt or obligation.
2. An itemization, by campus and project, of the
amount of yearly principal and interest to be paid in the most recent and the
next five fiscal years.
M. The Arizona board of
regents may enter into an intergovernmental agreement pursuant to section 15-1747
to manage universities under the board's jurisdiction subject to the terms of
the reciprocity agreement.
N. The Arizona board of regents may
retain monies from the universities under the board's jurisdiction to
supplement the board's operating budget.� Except as expressly authorized by the
legislature, the total amount of monies that the board retains pursuant to this
subsection may not exceed $5,000,000 in any fiscal year.� On or before
November 1, 2025 and each year thereafter,
the Arizona board of regents shall submit to the joint legislative budget
committee each of the following for review:
1. The amount of monies that the board retained from
each university under the board's jurisdiction to supplement the board's
operating budget.
2. The board's expenditure plan for the current
fiscal year for monies that the board retained from each university under the
board's jurisdiction.
3. An accounting of how the board spent monies that
the board retained from the universities under the board's jurisdiction in the
immediately preceding fiscal year.
O. For the purposes of this section,
"university debt and obligations" means debt and obligations, the
principal and interest of which are paid in whole or in part with university
monies.END_STATUTE
Sec. 2. Section 15-1650.06, Arizona Revised Statutes, is amended to read:
START_STATUTE15-1650.06. Arizona veterinary loan assistance program; fund; agreement; work
requirement; annual report; rules; definitions
A. The Arizona veterinary loan assistance program is
established within the Arizona board of regents.
B. The Arizona veterinary loan assistance fund is
established consisting of legislative appropriations.� The board 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.� On notice from the Arizona
board of regents, the state treasurer shall invest and
divest monies in the fund as provided by section 35-313, and monies
earned from investment shall be credited to the fund.� The board shall use monies
in the fund for the purposes prescribed in this section and may retain up to
three percent of the monies deposited in the fund for costs associated with
administering the program.
C. A person who obtains a doctor of veterinary
medicine degree from a veterinary college after January 1, 2023,
who satisfactorily passes the licensing examination required pursuant to title
32, chapter 21, article 2 and who signs an agreement pursuant to
subsection D of this section may apply to the board to participate in the
program.
D. To participate in the program, the board shall
require an applicant to sign an agreement to both:
1. Remain and work as a full-time veterinarian
in this state for the following four years.
2. Work in one of the following practice areas for
at least two of the four years:
(a) An agricultural practice in an area designated
by the United States department of agriculture as having a shortage.
(b) A nonprofit, county or municipal shelter.
E. At the conclusion of the four-year
commitment described in subsection D of this section, the board shall determine
whether the veterinarian satisfied the terms of the agreement described in
subsection D of this section. If the board determines that the veterinarian satisfied the terms of the agreement a veterinarian is an eligible applicant based on the criteria
prescribed by subsection C of this section and the veterinarian signs an
agreement described in subsection D of this section, the board shall distribute award to the veterinarian from
the Arizona veterinary loan assistance fund an amount that is equal to the
amount of the veterinarian's outstanding veterinary college educational loan
balance or $100,000 $200,000,
whichever is less. After each year that the
veterinarian works in this state pursuant to the agreement described in
subsection D of this section, the board shall distribute to the veterinarian
one-fourth of the total amount that the board has awarded to the veterinarian
pursuant to this subsection. The board shall distribute
monies from the fund subject to the availability of monies and legislative
appropriation and on a first-come, first-served basis. For the
purposes of this subsection, "educational loan balance" means the
balance of the principal, interest and related expenses of the educational
loan.
F. On or before October 1 of each year, the board
shall compile a report that details how the Arizona veterinary loan assistance
fund monies are being spent and shall submit this report to the governor, the
president of the senate and the speaker of the house of representatives.� The
board shall submit a copy of this report to the secretary of state.
G. The board may adopt rules for the purposes of
carrying out this section.
H. For the purposes of this section:
1. "Board" means the Arizona board of
regents.
2. "Veterinarian" has the same meaning
prescribed in section 32-2201.
3. "Veterinary college" has the same
meaning prescribed in section 32-2201. END_STATUTE
Sec. 3. Financial aid
trust fund; required state match; reduction
Notwithstanding
section 15-1642, subsection C, Arizona Revised Statutes, for fiscal year
2026-2027, each dollar raised pursuant to the surcharge on student registration
fees assessed pursuant to section 15-1642, subsection A, Arizona Revised
Statutes, may be matched by less than $2 appropriated by the legislature.
Sec. 4. Community college districts; state
aid for science, technology, engineering and mathematics and workforce programs
Notwithstanding
section 15-1464, subsection A, paragraph 3, Arizona Revised Statutes, for
fiscal year 2026-2027, state aid for science, technology, engineering and
mathematics and workforce programs for community college districts is as
specified in the general appropriations act.
Sec. 5. Community college districts; operating state aid;
eligibility; limits
Notwithstanding
section 15-1466, Arizona Revised Statutes, for fiscal year 2026-2027,
operating state aid for community college districts is as specified in the
general appropriations act.
APPROVED BY THE GOVERNOR JUNE 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 13, 2026.