No. 43093 (New Rule): Rule R945-1. UTech Scholarship

(New Rule)

DAR File No.: 43093
Filed: 07/16/2018 04:09:28 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This new rule is being implemented in accordance with H.B. 437, passed during the 2018 General Session.

Summary of the rule or change:

This new rule is being implemented to establish requirements related to the technical college scholarships described in Section 53B-2a-116, including a technical college's administration of the scholarships, student eligibility and priority, application processes, and determination of satisfactory progress.

Statutory or constitutional authorization for this rule:

• Section 53B-2a-116

Anticipated cost or savings to:

the state budget:

This new rule is anticipated to have a new ongoing fiscal cost of $800,000 to the state budget per year, because the state initially appropriated $800,000 ongoing in H.B. 3 (2018) to implement the provisions of H.B. 437 (2018), which necessitated this rule. This new rule is anticipated to have inestimable savings to the state budget because tax revenue returned by future income of scholarship recipients cannot be calculated.

local governments:

This new rule is not anticipated to have a cost or savings to local governments because this rule deals with scholarships awarded to students by technical colleges within the Utah System of Technical Colleges, and does not require any expenditures of or generate any revenues for local governments.

small businesses:

This new rule is not anticipated to have a cost or savings to small businesses because this rule deals with scholarships awarded to students by technical colleges within the Utah System of Technical Colleges, and does not require any expenditures of or generate any revenues for small businesses.

persons other than small businesses, businesses, or local governmental entities:

This new rule is anticipated to have an inestimable benefit to persons who receive the scholarship. The benefit is inestimable because the scholarship amount that will be awarded to each recipient will vary according to available funding and the parameters set forth in this rule, and because personal income derived from employment resulting from education funded by the scholarship cannot be calculated. Otherwise, this new rule is not anticipated to have a cost or savings to other persons because this rule deals with scholarships awarded to students by technical colleges within the Utah System of Technical Colleges, and does not require any expenditures of or generate any revenues for other persons.

Compliance costs for affected persons:

There are no compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

This proposed rule will not result in a direct fiscal impact to businesses. This rule deals with scholarships awarded to students by technical colleges within the Utah System of Technical Colleges, and does not require any expenditures of or generate any revenues for small businesses. Businesses may experience an indirect impact through the employment and productivity of individuals trained under the scholarship.

David R. Woolstenhulme

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

UTech Board of Trustees
Administration
310 South Main Street, Suite 1250
Salt Lake City, UT 84101

Direct questions regarding this rule to:

• Jared Haines at the above address, by phone at 801-341-6002, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/31/2018

This rule may become effective on:

09/07/2018

Authorized by:

Jared Haines, Associate Commissioner

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$800,000

$800,000

$800,000

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$800,000

$800,000

$800,000

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

This proposed rule is not expected to have any fiscal impacts on non-small businesses' revenues or expenditures because this rule deals with scholarships awarded to students by technical colleges within the Utah System of Technical Colleges and does not require any expenditures of or generate any revenues for large businesses.

 

The Commissioner of Technical Education at the Utah System of Technical Colleges, David R. Woolstenhulme, has reviewed and approved this fiscal analysis.

 

 

R945. UTech Board of Trustees, Administration.

R945-1. UTech Scholarship.

R945-1-1. Purpose and Authority.

(1) The purpose of this rule is to establish requirements related to the technical college scholarships described in Section 53B-2a-116, including a college's administration of the scholarships, student eligibility and priority, application processes, and determination of satisfactory progress.

(2) This rule is authorized and directed by Subsection 53B-2a-116(6).

 

R945-1-2. Definitions.

As used in this rule:

(1) "Career and Technical Education Pathway" means:

(a) For a technical college, a certificate-granting program approved in accordance with Utah System of Technical Colleges (USTC) policy;

(b) For an institution of higher education, a program approved in accordance with State Board of Regents policy that leads to a certificate and/or associate degree and that prepares students for an occupation; or

(c) For a school district or charter school, a sequence of courses that leads to a secondary school credential of labor market value approved by the State Board of Education.

(2) "Deferral" means the carrying forward of a UTech Scholarship, as described in Subsection R945-1-6(4).

(3) "Graduate from High School" means to qualify for a high school diploma as specified in Subsection R277-705-2(3).

(4) "High Demand Program" means the same as that term is defined in Subsection 53B-2a-116(1)(a).

(5) "Institution of Higher Education" means an institution within the Utah System of Higher Education described in Subsection 53B-1-102(1)(a).

(6) "Satisfactory Progress" means completion of any course, as included in an official transcript from the provider of a career and technical education pathway, that is specific to a career and technical education pathway discipline. Courses in a career and technical education pathway that are not specific to a pathway discipline, such as general education courses, are not eligible.

(7) "Secondary School" means grades 7-12 in whatever kind of school the grade levels exist, as provided in Subsection R277-705-2(5).

(8) "Technical College" means an institution within the Utah System of Technical Colleges described in Section 53B-2a-105.

(9) "Underserved Population" means any individual of ethnic or racial minority status; any individual with a disability; any individual identified as a displaced homemaker, single parent, economically disadvantaged, or of limited English proficiency under Carl D. Perkins Grant reporting procedures; or any individual receiving Pell Grant, Bureau of Indian Affairs, or Department of Workforce Services benefits.

(10) "UTech Scholarship" means a financial award provided by a technical college in accordance with Section 53B-2a-116 and this rule to a student enrolled in a technical college.

 

R945-1-3. Award Requirements.

To receive a UTech Scholarship, an applicant shall satisfy the following criteria:

(1) Graduate from high school within the seven months prior to receiving a scholarship;

(2) Enroll in, or show intent to enroll in, a high demand program at a technical college within the seven months after high school graduation, except as granted in a deferral; and

(3) While enrolled in a secondary school, make satisfactory progress in a career and technical education pathway offered by a technical college, an institution of higher education, or a school district or charter school.

 

R945-1-4. Application Process.

The process for an individual to apply to a technical college to receive a UTech Scholarship shall be administered by the technical college, and shall include the following:

(1) College Application: The technical college shall provide an application form, process, and instructions which include the elements provided in this rule, and which may be integrated with other scholarship application forms and processes administered by the college.

(2) UTech Scholarship Specificity: In its application forms and processes, the technical college shall clearly identify the UTech Scholarship's name, award requirements, use, and application process, and shall provide for the applicant to specify that the applicant is applying to be considered for the UTech Scholarship.

(3) Application Deadline: The technical college shall establish deadlines for submission of applications in accordance with the college's scholarship application processes.

(4) Required Documentation: The technical college shall require and retain the following information from each applicant in its application forms and accompanying documents:

(a) Identity and contact information consistent with the college's regular scholarship applications, such as name, address, and date of birth.

(b) Application date.

(c) UTech Scholarship specificity as described in Subsection R945-1-4(2).

(d) Demographic information to include underserved population identification.

(e) High school information, on transcripts or otherwise documented, to include:

(i) Name of high school attended;

(ii) Expected or actual high school graduation date; and

(iii) Expected or actual satisfactory progress in a career and technical education pathway offered by a technical college, an institution of higher education, or a school district or charter school.

(f) Technical college enrollment intentions to include:

(i) Name of technical college;

(ii) High demand program in which the student is enrolled or intends to enroll;

(iii) Date on which the student began or expects to begin the high demand program;

(iv) Intended enrollment hours per week;

(v) Expected program completion date; and

(vi) If a deferral is requested, justification for the deferral in accordance with 945-1-6(4)(a).

 

R945-1-5. Determination of Scholarship Awards and Amounts.

A technical college shall determine scholarship eligibility, prioritize selection of award recipients and the amount of each award, and grant scholarships according to the following provisions and sequence.

(1) Determination of Eligibility: For each application deadline in Subsection R945-1-4(3), the college shall identify from the application documentation:

(a) Eligible Applicant: Each applicant that satisfies or is expected to satisfy all award requirements in Section R945-1-3.

(b) Eligible Award Period: For each eligible applicant, the period determined by:

(i) Start Date: The date on which the applicant expects to begin a high demand program, or, in the case of an applicant who has previously begun the intended high demand program, the day after the high school graduation date; and

(ii) End Date: Seven months after the high school graduation date, or, in the case of a requested deferral, seven months after the start date.

(c) Eligible Award Amount: For each eligible applicant, the total cost of tuition, program fees, and required textbooks projected to accrue for the high demand program in which the applicant intends to be enrolled during the eligible award period, informed by the applicant's intended enrollment hours per week.

(2) Prioritizing and Awarding of Scholarships: The college shall award scholarships within an application deadline group as follows:

(a) Underserved Populations: The college shall first award a scholarship to each eligible applicant who is a member of an underserved population, in the amount provided in Subsection R945-1-5(3).

(b) Remaining Applicants: The college shall, with any funds remaining after awarding scholarships to members of underserved populations, award scholarships to all other eligible applicants in the amounts provided in Subsection R945-1-5(3).

(3) Calculation of Award Amounts: The college shall determine award amounts for each scholarship recipient identified in Subsection R945-1-5(2) as follows:

(a) Full Eligible Award Amount: If available funds provided in Section R945-1-7 are sufficient for the total of all eligible award amounts identified in Subsection R945-1-5(1)(c) in a given priority group designated in Subsection R945-1-5(2), then each eligible applicant in the group shall be awarded 100% of the applicant's eligible award amount.

(b) Partial Eligible Award Amount: If available funds are less than the total of all eligible award amounts for the priority group, the available funds shall be divided by the number of eligible applicants in the group to determine the maximum award per recipient. Each eligible applicant shall be awarded up to the maximum award, not to exceed 100% of the applicant's eligible award amount. Any unobligated funds remaining for applicants awarded less than the maximum award shall be retained in the scholarship fund for future applicants.

(c) Unavailability of Funds: If there are no available scholarship funds remaining after awards have been determined for a higher priority group, no scholarships shall be awarded for remaining applicants.

 

R945-1-6. Conditions and Utilization of Scholarship.

(1) Eligibility Verification: Before applying funds for a scholarship awarded in Subsection R945-1-5(2) to a student, a technical college shall verify that all award requirements in Section R945-1-3 have been met by obtaining and retaining additional documentation of actual qualifications which at the time of application were expected or intended to have been met.

(2) Use of Funds: Scholarship funds may be used only for tuition, program fees, and required textbooks in a high demand program in which the recipient is enrolled, up to the recipient's award amount determined in Subsection R945-1-5(3). Funds shall be applied by the college directly to authorized costs and shall not be issued to a recipient in cash.

(3) Time Limitation: Except in the case of a granted deferral, a technical college may only apply a scholarship toward a recipient's costs described in Subsection R945-1-6(2) from the day on which the college awards the scholarship as identified in Subsection R945-1-5(2) until seven months after the day on which the recipient graduates from high school.

(4) Deferral: A college may, by request from the recipient at any time before or during the recipient's award period, defer all or any portion of a scholarship for up to three years after the day on which the recipient graduates from high school.

(a) Deferrals may be granted at the discretion of the college for military service, humanitarian/religious service, documented medical reasons, or other exigent reasons.

(b) The duration of a deferred scholarship shall be for the time remaining in the recipient's award period, not to exceed seven months.

(5) Cancellation: A technical college may cancel a scholarship if the recipient does not, as determined by the college:

(a) Maintain enrollment in the college on at least a half-time basis; or

(b) Make satisfactory progress toward the completion of a certificate in a high demand program.

(6) Unused Funds: Upon termination of a recipient's scholarship due to non-acceptance, completion, cancellation, or any other reason, any unused award amounts shall be removed from liability/obligated status under Subsection R945-1-7(4) and retained in the college's restricted UTech Scholarship account.

 

R945-1-7. UTech Scholarship Funds.

(1) Distribution of Award Funds: The annual distribution of UTech Scholarship award funds to technical colleges by the Board of Trustees shall be as provided in Subsection 53B-2a-116(2).

(2) Restricted Funds: UTech Scholarship funds shall be considered restricted funds by a technical college, shall be recorded only in restricted UTech Scholarship accounts, and shall be used only for scholarship recipients' tuition, program fees, and required textbooks during their award periods.

(3) Unused/Carryover Funds: Each technical college is encouraged to annually utilize all UTech Scholarship funds for qualified students. Surplus funds (i.e., fund balance or net assets) shall be retained in the restricted fund and carried over from one fiscal year to the next.

(4) Obligated Funds: The projected value of a given student's scholarship award shall be recorded as a liability from the time of the student's selection until the student's scholarship ends, and shall be regarded as utilized funds when determining unused/carryover funds. Obligated funds remaining after the student's scholarship ends shall be returned to unused/carryover funds.

 

R945-1-8. Appeals.

A technical college shall provide a process and criteria, to be referenced in application materials, by which an applicant may appeal a decision made by the college that is related to this rule, to include provision for any unresolved appeal to be submitted to the Commissioner of Technical Education for final agency action.

 

R945-1-9. Reporting.

A technical college shall submit calendar year-end data regarding its UTech Scholarships to the Office of the USTC Commissioner by January 15 of each year, and at other times as required by the Office of the Commissioner, to include information pertaining to the provisions of this rule with respect to applications, awards, enrollments, utilization, funding, or other information as directed by the Commissioner.

 

KEY: scholarships, technical college, career and technical education, secondary education

Date of Enactment or Last Substantive Amendment: 2018

Authorizing, and Implemented or Interpreted Law: 53B-2a-116

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