A. The hospitality studies scholarship fund is established consisting of revenues available to the fund from any lawful source. The Arizona board of regents shall administer the fund and may partner with any statewide lodging and tourism association that provides matching monies in administering the fund. Monies in the fund are subject to legislative appropriation for the purposes of this section and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The board shall use the monies in the fund to provide scholarships and other financial assistance to students entering into or enrolled in a hospitality studies program at any university under the jurisdiction of the board. The financial assistance shall be used to defray educational expenses, including room and board. If a recipient withdraws from school or from the hospitality studies program before receiving a degree, the recipient must repay all scholarship monies previously awarded to the recipient. If the recipient is dismissed from the university, the board shall negotiate an appropriate repayment schedule plus eight percent simple interest.

C. For the purposes of this section, "hospitality studies program" means any undergraduate or graduate academic studies program relating to operation or management of hotels, motels or other facilities for transient lodging as described in section 42-5070, subsection A or restaurants as described in section 42-5074.