A.R.S. tit. 15 ch. 13 — Arizona Revised Statutes Title 15 Chapter 13 — Universities

15-1601. State universities; location; faculty powers; report A. The Arizona board of regents shall maintain state universities at Flagstaff in Coconino county, at Tempe in Maricopa county and at Tucson in Pima county, and the universities are respectively designated northern Arizona university, Arizona state university and the university of Arizona. The board shall maintain an Arizona state university campus in western Maricopa county designated as Arizona state university west campus and an Arizona state university campus in eastern Maricopa county designated as Arizona state university east campus. The board may establish and maintain other colleges and universities subject to legislative authority. Subject to review by the joint committee on capital review, the board may establish new campuses that are separate from any location in existence on July 1, 2007. The Arizona state university campus at Tempe shall provide administrative support for the Arizona state university campuses in western Maricopa county and in eastern Maricopa county. B. The universities shall have colleges, schools and departments and give courses of study and academic degrees as the board approves. Subject to the responsibilities and powers of the board and the university presidents, the faculty members of the universities, through their elected faculty representatives, shall share responsibility for academic and educational activities and matters related to faculty personnel. The faculty members of each university, through their elected faculty representatives, shall participate in the governance of their respective universities and shall actively participate in the development of university policy. C. On or before November 15 of each year, Arizona state university shall report to the joint legislative budget committee, the governor's office of strategic planning and budgeting, the speaker of the house of representatives and the president of the senate for each of its separate campuses all of the following: 1. The capital expenditure history made to each campus for each of the two previous fiscal years. 2. The actual number of full-time equivalent students at each campus of Arizona state university as of the twenty-first day after classes begin for the fall semester and the total headcount enrollment at each campus. 3. Any revenues or allocations made to each campus of Arizona state university that are available to report. 4. Any long-term capital or expansion plans for each campus. 15-1606. Correspondence and extension courses The universities may offer extension courses at places within the state other than the city where the institution is located, and correspondence courses may be given. 15-1621. Members; appointment; terms; oath; immunity A. The Arizona board of regents consists of ten appointive members, including two student members, and the governor and the superintendent of public instruction as ex officio members. B. Appointive members, except the student members, shall be appointed by the governor pursuant to section 38-211. The term of each appointive member, except the student members, is eight years, to begin and end on the third Monday in January. C. The governor shall appoint two student members to serve staggered terms. Each year the governor shall designate on a rotation basis a university under the jurisdiction of the Arizona board of regents to submit a list of nominees for the position of student member. The associated students' organization of the designated university, by majority vote of its governing body, shall select three nominees for student member. The governor shall consider the three nominees when making the appointment of the student member but may appoint any qualified student. Before adjournment of the regular session of the legislature, the governor shall submit to the senate for consent of the senate the name of the nominee for student member whose term is to begin on July 1. A student nominated for a full term may not serve until confirmed by the senate. A student member must be a person who is legally domiciled in this state and attends a university under the jurisdiction of the Arizona board of regents on a full-time basis. In the first year of the term the student member may exercise all rights and privileges of a board member, except the right to vote. In the second year of the term the student member may exercise all rights and privileges of a board member, including the right to vote. The term of each student member is two years, beginning on July 1. The governor may remove the student members for cause. A student member who graduates with no more than seven months remaining in the second year of a term may serve the remainder of the term. A vacancy in the office of student member shall be filled as follows: 1. If a vacancy occurs during the first year of a student member's term, the office shall be filled for the unexpired term. A student member nominated by the governor to fill a vacancy pursuant to this paragraph may serve the balance of the term without being confirmed by the senate. 2. If a vacancy occurs during the second year of a student member's term, the remaining student member shall assume all rights and privileges of a board member, including the right to vote. A new student member shall be nominated to a two year term to begin on July 1 as provided in this subsection. D. On expiration of the term in January 2008 of two members of the Arizona board of regents, the governor shall appoint two members who reside in a county with a population of less than eight hundred thousand persons pursuant to section 38-211. One member shall be selected from Apache, Coconino, Gila, Mohave, Navajo or Yavapai county and one member shall be selected from Cochise, Graham, Greenlee, La Paz, Pinal, Santa Cruz or Yuma county. Notwithstanding subsection B of this section, the initial term of one of the members appointed pursuant to this subsection shall be four years to begin and end on the third Monday in January. Thereafter, the governor shall appoint each member pursuant to this subsection for terms beginning on the third Monday of January of the year of the expiration of the term and ending on the third Monday of January eight years thereafter. This subsection does not preclude the governor from appointing more than two members who reside in a county with a population of less than eight hundred thousand persons at one time to the Arizona board of regents. The governor shall make subsequent appointments to replace the terms of members pursuant to this subsection in the same manner. E. Each appointive member of the board shall take the oath of office before entering upon the duties of the member's office. F. Members of the board are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings with approval of a majority of the board. 15-1622. Officers; organization; quorum A. The board shall select from its membership a president, secretary, treasurer and such other officers it deems necessary. The same person shall not hold the offices of secretary and treasurer. The board may require the treasurer to give additional bond. B. A majority of the membership of the board shall constitute a quorum for transaction of business at any meeting regularly called, but a number less than a quorum may adjourn from time to time. 15-1623. Compensation of members A. The secretary of the Arizona board of regents shall receive compensation as determined pursuant to section 38-611. B. Appointed members shall receive compensation as determined pursuant to section 38-611 for each day of attendance at board meetings, except the compensation of no member of the board shall exceed five hundred dollars in any year. 15-1624. Meetings of board advisory committees; student records; executive session Notwithstanding the provisions of section 38-431.01, subsection A, meetings of advisory committees to the board involving student records may be held in executive session. A student whose records are to be considered may request that the meeting be held as a public meeting in which case the meeting pertaining to such student's records shall not be in executive session. 15-1625. General powers of board as body corporate A. The Arizona board of regents is a body corporate with perpetual succession. The board has jurisdiction and control over the universities. B. The board may: 1. Adopt a corporate seal. 2. Contract. 3. Sue and be sued. 4. Purchase, receive, hold, make and take leases and long-term leases of and sell real and personal property for the benefit of this state and for the use of the institutions under its jurisdiction. 15-1626. 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 to administer and 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 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) 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. 23. Require each university to establish, adopt and post on the university's website a research security policy that does all of the following: (a) Safeguards the university's research. (b) Promotes a security culture. (c) Furthers national security interests. (d) Mitigates potential threats to the university's research from any foreign adversary nation as defined in section 33-443. (e) Complies with all applicable legal, regulatory and contractual standards and requirements for securing and protecting the university's academic research enterprise, including any research that involves the university, the university's campuses or the university's internal components. (f) Promotes a culture of compliance that is consistent with federal regulations to ensure that the university maintains eligibility for federal funding, including federal risk mitigation requirements pertaining to standardized disclosures, cybersecurity, foreign travel security, insider threats and export controls. (g) Establishes processes to regularly update the university's research security policy, including processes to ensure compliance with the policy and reporting within the policy. (h) Establishes processes to identify and address compliance concerns at the university that are consistent with the university's research security policy, including any training that the university will provide. 24. On or before October 1 of each year, submit a report to the governor, the president of the senate and the speaker of the house of representatives, and submit a copy of the report to the secretary of state, that includes all of the following: (a) Information and details on each university's research security policy adopted pursuant to paragraph 23 of this subsection and related practices, protocols and strategies. (b) Information that demonstrates how each university is complying with applicable state and federal laws to promote a safe and secure research environment and to protect national security and intellectual property and to defend against any foreign adversary nation as defined in section 33-443. (c) The total number of grants, gifts or donations that each university received from a foreign country in the preceding year that exceeded $250,000. 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 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 each year, 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. 15-1626.01. Tuition and fees; student organizations; prohibition; support; selection by students A. A university under the jurisdiction of the Arizona board of regents shall not transfer any portion of the tuition or fees collected from students pursuant to section 15-1626 or use any university student billing process to collect monies on behalf of an organization that is not under the jurisdiction of the Arizona board of regents and that is not recognized as a university student organization. B. A university under the jurisdiction of the Arizona board of regents may establish and support student government at the university and the university-recognized student organizations and clubs and may provide support for these student groups from tuition and fees pursuant to section 15-1633. C. Each university under the jurisdiction of the Arizona board of regents that allocates student fee monies to support the activities of individual university-recognized student organizations or clubs shall: 1. Provide each student who is charged fees with a reasonable opportunity to select one or more student organizations or clubs, or both, to which the university may not allocate the student's pro rata share of the fee monies. 2. For each student who makes a selection pursuant to paragraph 1 of this subsection, use the student's pro rata share of the fee monies that the university allocates pursuant to this subsection only for programs that are open to all students. 3. If a student does not select one or more student organizations or clubs pursuant to paragraph 1 of this subsection, the university may allocate the student's pro rata share of the fee monies to either support the activities of any individual university-recognized student organization or club or to programs that are open to all students. 15-1627. Control of vehicles and nonpedestrian devices on university property; sanctions; compliance with emissions inspection; definition A. Each university may adopt rules for the control of vehicles and nonpedestrian devices on its property with respect to the following only: maximum speed of vehicles and nonpedestrian devices, direction of travel, authorized hours of travel, required stops in traffic, place of parking, method of parking, time of parking, nonparking areas, restricted areas, prohibition of parking in vehicle emissions control areas as defined in section 49-541 of those vehicles which fail to comply with section 49-542 and designation of special parking areas for students, faculty, staff and the general public. Each university may prescribe and collect reasonable fees for specially designated parking areas. Each university shall cause signs and notices to be posted upon the property for the regulation of vehicles and nonpedestrian devices. B. The rules adopted by each university pursuant to subsection A of this section shall be enforced administratively by each university. As to students, faculty and staff, these procedures may, but need not, involve both student and faculty adjudicating bodies, as long as all procedures give the individual notice and an opportunity to be heard concerning the alleged infractions and any sanction to be imposed upon him. Administrative and disciplinary sanctions may be imposed upon students, faculty and staff for a violation of the rules including, but not limited to: a reasonable monetary penalty, impoundment, regular institutional discipline, withdrawal or suspension of campus parking privileges, encumbrances of records or grades, or both, and oral or written reprimand. Habitual or flagrant disregard of rules shall be a ground for suspension or expulsion from the university for a student and may be taken into consideration as to faculty and staff in regard to amount of salary and continuation of employment. C. Members of the general public who park their vehicles in an unauthorized manner upon the property of a university shall be warned concerning their unauthorized parking and, if they continue, or if such persons habitually park in such an unauthorized manner, the vehicles so parked may be impounded by the institution and a reasonable fee exacted for the cost of impoundment and storage. D. Members of the general public who violate a rule adopted by the university pursuant to subsection A of this section regarding the use of nonpedestrian devices shall be warned of a violation and any nonpedestrian devices may be impounded by the university and a reasonable fee may be exacted for the cost of impoundment and storage. E. Any person who has received a final administrative ruling concerning a sanction imposed upon him as a result of a violation of a rule pursuant to subsection A of this section shall have the right to have that ruling reviewed by the superior court in the county in which the institution involved is situated, in accordance with the provisions of the administrative review act, title 12, chapter 7, article 6. F. This section shall be considered supplemental in nature to the general common law and statutory powers of institutions under control of the board as to the internal control and activities of their students, faculty and staff. G. An institution under the jurisdiction of the board of regents and which is located in a vehicle emissions control area as defined in section 49-541 shall prohibit the issuance of annual permits to park on property under its jurisdiction until the applicant submits an affidavit or shows proof that his vehicle meets the requirements of section 49-542. H. For the purposes of this section, "nonpedestrian devices" includes bicycles, tricycles, unicycles, skateboards, roller skates and equines. 15-1628. Powers and procedures pertaining to optional retirement programs A. The Arizona board of regents may establish optional retirement programs under which contracts providing retirement and death benefits may be purchased for members of the faculty and administrative officers of the institutions under its jurisdiction. The benefits to be provided for or on behalf of participants in the optional retirement program shall be provided through annuity contracts, fixed or variable in nature, or a combination thereof, or other retirement plans approved by the Arizona board of regents. B. Elections to participate in the optional retirement programs shall be made as follows: 1. Eligible employees initially appointed on or after August 9, 1974 shall elect to become members of the Arizona state retirement system or to participate in an optional retirement program established by the Arizona board of regents. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution and shall be effective as of the effective date of appointment. If an eligible employee fails to make an election as provided in this paragraph, the eligible employee shall be deemed to have elected membership in the Arizona state retirement system. 2. Eligible employees initially appointed before August 9, 1974 may elect to participate in the optional retirement programs. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution on or before December 14, 1974, shall become effective as of January 1, 1975 and shall constitute a waiver of all benefits provided by the Arizona state retirement system, except all such benefits as are expressly provided by law. 3. Any employee who becomes eligible may elect an optional retirement program. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution within thirty days after notice in writing to the employee of the employee's eligibility, and shall become effective on the first day of the pay period following such election, and shall constitute a waiver of all benefits provided by the Arizona state retirement system, except all such benefits as are expressly provided by law. 4. Any eligible employee who is a member of the Arizona state retirement system at the time the employee elects to participate in the optional retirement program shall leave the funds in the employee's retirement account on deposit with the Arizona state retirement system during the continuance of employment. Additional contributions to the employee's retirement account shall not be required and continued service with the Arizona board of regents or an institution under the jurisdiction of the Arizona board of regents while under an optional retirement program shall be deemed to be member service in the Arizona state retirement system for the purpose of determining eligibility for any benefits under such system. The amount of any such benefits under such system shall be computed only on the basis of service otherwise creditable to a member of the system and the employee's compensation during such service. For purposes of subsection D of this section, years of member service in the Arizona state retirement system shall count as years of service under the optional retirement programs. C. The Arizona board of regents shall contribute public funds appropriated or any other funds available for such purpose on behalf of each participant in the optional retirement programs in an amount equal to seven per cent of the participant's compensation. Each participant shall also contribute an amount equal to seven per cent of the participant's compensation. The appropriation to each university for purposes of enabling the Arizona board of regents to make the contribution provided in this subsection shall not exceed the employer contribution required under the Arizona state retirement system as prescribed by title 38, chapter 5, article 2. Funds utilized by the board of regents or by a university to pay that portion of the contribution that represents the difference between the employer contribution as prescribed by title 38, chapter 5, article 2 and the contribution rate provided in this subsection for an optional retirement program do not constitute a use of appropriated monies for supplemental retirement. D. In the case of an electing employee initially appointed on or after August 9, 1974, contributions pursuant to subsection C of this section shall not be made by the Arizona board of regents until the employee's completion of five years of service. Employee contributions required during this initial five year period and during continued service with an institution under the jurisdiction of the Arizona board of regents shall be promptly remitted to the optional retirement programs approved by the Arizona board of regents. At the end of an electing employee's completion of five years of service, a single contribution in an amount determined pursuant to subsection C of this section, with interest, shall be made by the chief financial officer of the employing institution to the approved company or companies on behalf of such employee. In the case of an electing employee who does not continue in service with an institution under the jurisdiction of the Arizona board of regents for at least five years, the amount of employer contributions, with interest, shall be refunded to this state. E. If an employee's service is terminated by death prior to the completion of five years of service, a death benefit equal to the sums appropriated for such employee, plus interest, shall be paid to the beneficiary designated by the participant under the participant's optional retirement program. F. The provisions of subsection D of this section shall not apply to any electing employee who, at the time of initial appointment, owns a contract determined by the Arizona board of regents to be acceptable for use in the optional retirement program. G. The Arizona board of regents may provide for the administration of such optional retirement programs and perform or authorize the performance of such functions as may be necessary for such purposes. The Arizona board of regents shall approve the company or companies from which benefits may be purchased under the optional retirement programs. Such optional retirement programs shall not permit loans. In giving its approval, the board shall consider: 1. The nature and extent of the rights and benefits to be provided for participants and their beneficiaries. 2. The relation of such rights and benefits to the amount of contributions to be made. 3. The suitability of such rights and benefits to the needs of the participants and the interests of the institutions under its jurisdiction in the recruitment and retention of faculty and administrative officers. 4. The ability of the approved company or companies to provide such suitable rights and benefits. H. Any eligible employee initially appointed after August 9, 1974, electing to participate in the optional retirement programs, shall be ineligible for membership in the Arizona state retirement system as long as the employee remains continuously employed in any position by the Arizona board of regents or by an institution under its jurisdiction, except as expressly provided by law. I. The benefits, annuities and employee and employer contributions provided for in this section, and all interest, earnings and other credits pertaining to such benefits, annuities and contributions, shall not be subject to execution or attachment and shall be nonassignable. The employee and employer contributions provided for in this section and all interest, earnings and other credits pertaining to such contributions are exempt from state, county and municipal taxes. The benefits and annuities received by an employee under this section after December 31, 1988 are subject to tax pursuant to title 43. J. Subject to amendment of the federal-state agreement provided for in section 38-702, every eligible employee electing to participate in the optional retirement programs shall have old age, survivors and disability insurance coverage provided by the federal social security act in accordance with the provisions of title 38, chapter 5, article 1. 15-1629. Annual report Within ninety days after the close of each fiscal year the Arizona board of regents shall make a report for the fiscal year to the governor. The report shall set forth the state of progress of the universities in their several colleges, schools and departments, the courses of study included in their curricula, the number of professors, other instructional faculty and staff members employed, the number of students registered and attending classes, the amount of receipts and expenditures and such other information as the board deems proper. 15-1630. Abortion at educational facility prohibited; exception No abortion shall be performed at any facility under the jurisdiction of the Arizona board of regents unless such abortion is necessary to save the life of the woman having the abortion. 15-1631. State museum; fees A. There shall be a state museum for the collection and preservation of the archaeological resources, specimens of the mineral wealth and the flora and fauna of this state. B. The Arizona board of regents shall direct and manage the museum and shall set apart sufficient space to accommodate it. C. The Arizona board of regents shall adopt any fees for services performed by the state museum pursuant to title 41, chapter 4.1, article 4 and section 41-865. D. Before submitting a proposal to the Arizona board of regents to increase fees for services, the director of the state museum shall provide notice of the intent to increase fees for services on the website of the state museum before January 1. The notice of intent must: 1. Include a justification for the fee increase, which shall contain: (a) The amount of the proposed fee increase. (b) A list of the persons who will be directly affected by, bear the costs of or directly benefit from the proposed fee increase. (c) An analysis of each of the following: (i) The rationale for the proposed fee increase with a description of the statutory responsibilities that the state museum intends to fulfill with the proposed fee increase. (ii) An explanation of the services that the state museum will provide with the proposed fee increase to this state, political subdivisions, other agencies and businesses. (iii) A description of any efforts to avoid fee increases or to reduce the costs or regulatory burden, or both, to the businesses, persons and consumers that will be directly affected by the proposed fee increase. (d) A description of the methodology used to calculate the proposed fee increase and a detailed explanation of the costs included in the fee methodology. 2. Be provided to the Arizona board of regents for submittal to the secretary of state for publication in the register pursuant to section 41-1013. E. In addition to the duties prescribed in subsection D of this section, the director of the state museum shall: 1. At the same time the Arizona board of regents submits notice of the proposed fee increase to the secretary of state pursuant to subsection D, paragraph 2 of this section, notify by regular mail, fax or e-mail each person who has made a timely request to the state museum for notification of proposed fee changes, proposed policy changes or any other proposed change relating to the state museum. The state museum may purge the list of persons who have requested these notifications once each year. 2. Post the draft of the proposal to increase fees for services on the website of the state museum on or before the second Monday of the calendar year. 3. Provide an opportunity for public comment regarding the proposal to increase fees for services for at least thirty days after publication by the secretary of state in the register. Public comment may include written comments, comments submitted through e-mail and oral comments. 4. If applicable, post on the website of the state museum a revised draft of the proposal to increase fees for services at the end of the public comment period. The revised draft shall include a summary and response to any comments received during the public comment period and a summary of the alternatives that were considered and a rationale for why those alternatives were not selected. 5. Provide an opportunity for public comment for at least twenty days regarding the revised draft of the proposal to increase fees for services. Public comment may include written comments, comments submitted through e-mail and oral comments. 6. Not later than five business days after the end of the public comment period, post on the website of the state museum a final draft of the proposal to increase fees for services along with the expected date that the Arizona board of regents will consider the proposed increase. F. Any proposal submitted by the state museum to the Arizona board of regents to increase fees shall include the information prescribed in subsections D and E of this section. 15-1632. University property of expelled students; classification A. A student who is expelled by a university shall surrender all university property. The university shall refund the deposit for any property to the student. B. An expelled student who fails or refuses to return university property is guilty of a petty offense. 15-1633. Use of university resources or employees to influence elections; prohibition; civil penalty; definitions A. A person acting on behalf of a university or a person who aids another person acting on behalf of a university shall not spend or use university resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value of the university for the purpose of influencing the outcomes of elections or to advocate support for or opposition to pending or proposed legislation. Notwithstanding this section, a university may distribute informational pamphlets on a proposed bond election as provided in section 35-454 if those informational pamphlets present factual information in a neutral manner. This section does not preclude any of the following: 1. A university from reporting on official actions of the university or the Arizona board of regents. 2. A registered lobbyist from advocating on behalf of the university or the Arizona board of regents. 3. An employee of a university using personal time and resources from influencing the outcomes of elections or from advocating support for or opposition to pending or proposed legislation if the employee does not use university personnel, equipment, materials, buildings or other resources for these purposes. 4. Any university employee from providing classroom instruction on matters relating to politics, elections, laws, ballot measures, candidates for public office and pending or proposed legislation. 5. The use of university resources, including facilities and equipment, for government-sponsored forums or debates if the sponsor remains impartial and the events are purely informational and provide an equal opportunity to all viewpoints. The rental and use of a university facility by a private person or entity that may lawfully attempt to influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate. B. Employees of a university may not use the authority of their positions to influence the vote or political activities of any subordinate employee. C. This section does not prohibit universities from permitting student political organizations of political parties, including those that are recognized pursuant to sections 16-801, 16-802 and 16-803, to conduct lawful meetings in university buildings or on university grounds, except as prescribed in subsection A of this section. Each student political organization that is allowed to conduct lawful meetings on university property shall have equal access as any other student political organization that is allowed to conduct lawful meetings on university property. D. This section shall not be construed as denying the civil and political liberties of any person as guaranteed by the United States and Arizona Constitutions. E. Except as provided in subsection F of this section, universities under the jurisdiction of the Arizona board of regents may not: 1. Provide publicly funded programs, scholarships or courses if the purpose of the program, scholarship or course is to advocate for a specified public policy. 2. Allow publicly funded organizations, institutes or centers to operate on the campus of the university or on behalf of or in association with the university if the purpose of the organization, institute or center is to advocate for a specified public policy. F. Subsection E of this section does not apply to: 1. A registered lobbyist who advocates on behalf of the university or the Arizona board of regents and other employees assisting such lobbyists in their official capacity. 2. Any university employee who expresses a personal opinion on a political or policy issue, regardless of whether that opinion is expressed inside or outside the classroom. 3. Print or electronic media produced by students who are enrolled at a university. 4. A recognized student government, club or organization of students who are enrolled at a university. 5. Any university employee who is appointed to a government board, commission or advisory panel who provides expert testimony or guidance on public policy. 6. The publication of reports or the hosting of seminars or guest speakers by the university that recommends public policy. 7. Researching, teaching and service activities of university employees that involve the study, discussion, intellectual exercise, debate or presentation of information that recommends public policy. 8. Any other type of advocacy that is allowed by law. G. The attorney general shall publish and distribute to the Arizona board of regents a detailed guideline regarding activities prohibited under this section. The attorney general may distribute these guidelines through a website or electronically. H. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may serve on the person an order requiring compliance with this section and may assess a civil penalty of not more than five thousand dollars per violation, plus any amount of misused funds subtracted from the university budget against a person who violates or a person who aids another person in violating this section. The person determined to be out of compliance with this section shall be responsible for the payment of all penalties and misused funds. University funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the university whose funds were misused. I. An attorney acting on behalf of a university may request a legal opinion of the attorney general as to whether a proposed use of university resources would violate this section. J. All penalties collected by the court for a suit initiated in superior court by the attorney general shall be paid to the office of the attorney general for the use and reimbursement of costs of prosecution pursuant to this section. All penalties collected by the court for a suit initiated in superior court by a county attorney shall be paid to the county treasurer of the county in which the court is held for the use and reimbursement of costs of prosecution pursuant to this section. K. For the purposes of this section: 1. "Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters. 2. "Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral. 3. "Misused funds" means university monies or resources used unlawfully pursuant to this section. 15-1634. Intergovernmental agreements; special assessments A. Pursuant to section 48-582 or 48-920 or in conjunction with any street improvement made pursuant to any other statute, the board on behalf of this state or any university may enter into and shall be bound by intergovernmental agreements with one or more cities, counties or improvement districts for the purpose of improving streets adjacent to or running through university property by the construction of any or all of the improvements authorized in either title 48, chapter 4, articles 1 and 2 or title 48, chapter 6, article 1. B. The agreement may provide that assessments may be levied against university property to secure repayment of the cost of the improvements. So long as this state or the board owns the land so assessed the assessment liens may not be enforced by sale or foreclosure. The agreement may also provide that the university's share of any incidental cost may be paid by the board from any available fund of that university. The board shall pay or cause to be paid the installments of principal and interest coming due on the assessments and may pledge for the payment thereof any monies of the respective university which do not cause the agreement or assessment to become a debt of this state under, or contrary to, any constitutional provision and which do not violate any contract rights of any other person to be paid from the same source. The agreement shall provide that the payments due under the agreement include any penalties and additional interest that the owner of property subject to assessment would be required to pay on the delinquency of an installment of principal or interest. C. In the agreement the board may waive any formal requirement, notice or prerequisite to levying an assessment. D. If the board leases, long-term leases or sells any parcel subject to an assessment, the board shall require that the lessee's or purchaser's initial payment be in an amount at least sufficient to reimburse the board for the parcel's allocative share of the monies previously expended to pay the assessment. The board shall return such amount to be reimbursed to the source of the monies under subsection B of this section. E. Upon the sale of any parcel subject to an assessment, the lien of the assessment may be enforced by foreclosure and sale in the manner set forth in the respective statute authorizing the levying of the assessment. 15-1635. University research development purposes; product development; corporations A. In order to stimulate the flow of capital into the development of specific products which have advanced beyond the theoretical stage and are capable of being reduced to practice on a commercial scale, the board may by resolution organize one or more corporations under the provisions of title 10. At least one-half of any voting shares of each such corporation shall be held by the board, or a majority of the directors, trustees or members of the corporation shall be designated or appointed by the board. No member or employee of the board may receive any direct or indirect compensation, other than reimbursement for actual expenses incurred in the performance of his duties, by reason of serving as a member, director or trustee of a corporation organized under this section. B. No such corporation may be organized unless the board finds in its organizational resolution that its formation will stimulate and encourage the development of new products within this state in situations in which financial aid would not otherwise be reasonably available from conventional lending sources. In addition to the powers each corporation may have, each corporation may: 1. Enter into product development agreements with persons doing business in this state, on such terms and conditions as are consistent with the research development purposes of the board, to advance financial aid to such persons for the development of specific products, procedures and techniques to be developed and produced in this state and to condition such agreements on contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it. 2. Acquire, lease, purchase, manage, hold and dispose of real and personal property in this state and lease, convey or deal in or enter into contracts with respect to such property on any terms necessary or incidental to carrying out these research and development purposes. 3. Hold patents, copyrights, trademarks or any other evidences of protection or exclusivity as to any products issued under the laws of the United States or any state or nation. C. Before organizing such a corporation, the board shall develop a procedure for applications for financial aid to be forwarded, together with an application fee prescribed by the board, to the board. The board shall investigate and prepare a report concerning the advisability of approving the proposed financial aid for such person and concerning any other factors deemed relevant. The investigation and report shall include such facts about the person under consideration as his history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects and integrity of management as well as the feasibility of the proposed project to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report and after other action as is deemed appropriate, the board shall approve or deny the application. The board shall promptly notify the applicant of such action. Approval shall be conditioned on payment to the board, within such rea