Session of 2024 HOUSE BILL No. 2539 By Committee on Education Requested by Representative Thomas 1-18 AN ACT concerning postsecondary education; relating to the Kansas promise scholarship act; removing the Kansas residency requirement for eligibility for such scholarships; modifying the definition of part- time student; amending K.S.A. 2023 Supp. 74-32,271, 74-32,275 and 74-32,276 and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas: Section 1. K.S.A. 2023 Supp. 74-32,271 is hereby amended to read as follows: 74-32,271. (a) K.S.A. 2023 Supp. 74-32,271 et seq., and amendments thereto, shall be known and may be cited as the Kansas promise scholarship act. (b) As used in the Kansas promise scholarship act: (1) "Eligible postsecondary educational institution" means: (A) Any community college or technical college established under the laws of this state and with a recognized service area; (B) the Washburn institute of technology; or (C) any not-for-profit institution of postsecondary education with its main campus or principal place of operation in Kansas that offers a promise eligible program, is operated independently and not controlled or administered by any state agency or subdivision of the state, maintains open enrollment and is accredited by a nationally recognized accrediting agency for higher education in the United States. (2) "Military servicemember" means the same as defined in K.S.A. 2023 Supp. 48-3406, and amendments thereto. (3) "Part-time student" means a student who is: (A) (i) Enrolled for six credit hours or more in the fall, summer or spring semester and is; or (ii) enrolled in a five-credit hour certification program; and (B) not enrolled as a full-time student. (4) "Promise eligible program" means any two-year associate degree program or career and technical education certificate or stand-alone program offered by an eligible postsecondary educational institution that is: (A) Approved by the state board of regents; (B) high wage, high demand or critical need; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 HB 2539 2 (C) identified as a "promise eligible program" by the state board of regents pursuant to K.S.A. 2023 Supp. 74-32,272, and amendments thereto, or a "promise eligible program" within a field of study designated by an eligible postsecondary educational institution pursuant to K.S.A. 2023 Supp. 74-32,273, and amendments thereto. Sec. 2. K.S.A. 2023 Supp. 74-32,275 is hereby amended to read as follows: 74-32,275. (a) To be eligible for a Kansas promise scholarship, a student shall: (1) Be a United States citizen; (2) be a Kansas resident; (3) (A) have graduated from an accredited Kansas public or private secondary school within the preceding 12 months; (B) have completed the requirements for graduation at a non- accredited private secondary school as provided in K.S.A. 72-4345, and amendments thereto, within the preceding 12 months; (C) attended an accredited Kansas public or private secondary school or non-accredited private school as provided in K.S.A. 72-4345, and amendments thereto, and obtained a high school equivalency certificate within the preceding 12 months; (D) upon application for a scholarship, have been a resident of Kansas for three or more consecutive years as evidenced by the date of issuance on a Kansas-issued identification card or through Kansas voter registration records or Kansas income tax documentation; (E) be a dependent child of a military servicemember permanently stationed in another state and who, within the preceding 12 months, graduated from any out-of-state secondary school or obtained a high school equivalency certificate; or (F)(E) have been in the custody of the secretary for children and families at any time such student was enrolled in and attending any of the grades nine through 12 and not eligible for assistance under the Kansas foster child educational assistance act, K.S.A. 75-53,111 et seq., and amendments thereto; (4)(3) complete the required scholarship application on such forms and in such manner as established by the state board of regents; (5)(4) enter into a Kansas promise scholarship agreement pursuant to K.S.A. 2023 Supp. 74-32,276, and amendments thereto; (6)(5) complete the free application for federal student aid for the academic year in which the student applies to receive a Kansas promise scholarship. Such submitted application shall be determined to be valid and free of error codes in order to calculate the amount of scholarship to be awarded; and (7)(6) enroll in an eligible postsecondary educational institution in a promise eligible program. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2539 3 (b) (1) To continue to receive a Kansas promise scholarship, a student shall: (A) Maintain satisfactory academic progress, including a grade point average of 2.0 or higher, or the equivalent thereof, in the courses of the promise eligible program for which the student received a Kansas promise scholarship; and (B) satisfy the requirements of a Kansas promise scholarship agreement as provided in K.S.A. 2023 Supp. 74-32,276, and amendments thereto. (2) Any student who entered into a Kansas promise scholarship agreement under the provisions of the Kansas promise scholarship act as such act existed at the time such agreement was entered into shall be entitled to continue to use such Kansas promise scholarship and receive scholarship renewals to fulfill the requirements of such student's Kansas promise scholarship agreement. No subsequent revision or amendment to the Kansas promise scholarship act, the rules and regulations adopted thereunder, the list of approved promise eligible programs or the appropriations made pursuant to such act shall have the effect of terminating a student's Kansas promise scholarship agreement solely due to such amendment or revision. (c) Nothing in this act shall prohibit a student who received postsecondary course credit while enrolled in high school from qualifying for a Kansas promise scholarship. Sec. 3. K.S.A. 2023 Supp. 74-32,276 is hereby amended to read as follows: 74-32,276. (a) As a condition to receiving a Kansas promise scholarship, an eligible student shall enter into a Kansas promise scholarship agreement with the state board of regents. The eligible postsecondary educational institution making the scholarship award to such student shall counsel each eligible student on the requirements and conditions of the promise scholarship agreement. Such agreement shall require any student who receives a Kansas promise scholarship to: (1) Enroll as a full-time or part-time student at the eligible postsecondary educational institution from which the student is receiving a Kansas promise scholarship and engage in and complete the required promise eligible program within 36 months of the date the scholarship was first awarded; (2) within six months after graduation from the promise eligible program: (A) Reside in and Commence work in the state of Kansas and maintain such employment for at least two consecutive years following completion of such program. A scholarship recipient may use a W-2 wage and tax statement showing Kansas withholding or estimated income tax to the state of Kansas as proof of work in Kansas; or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2539 4 (B) enroll as a full-time or part-time student in any public or private postsecondary educational institution with its primary location in Kansas and upon graduation or failure to re-enroll, reside in and commence work in Kansas and maintain such employment for at least two consecutive years following the completion of such program; (3) maintain records and make reports to the state board of regents on such forms and in such manner as required by the state board of regents to document the satisfaction of the requirements of this act; and (4) upon failure to satisfy the requirements of a Kansas promise scholarship agreement, repay the amount of the Kansas promise scholarship the student received under the program as provided in subsection (b) to the state board of regents. (b) (1) Except as provided in subsection (c), if any student who receives a Kansas promise scholarship fails to satisfy the requirements of a Kansas promise scholarship agreement, such student shall pay an amount equal to the total amount of money received by such student pursuant to such agreement that is financed by the state of Kansas plus accrued interest at a rate equivalent to the interest rate applicable to loans made under the federal PLUS program at the time such student's first course funded by a Kansas promise scholarship award began. Interest shall begin accruing on the date the student is determined to be out of compliance with the Kansas promise scholarship agreement. Monthly installment payments of such amounts may be made in accordance with rules and regulations of the state board of regents. Such installment payments shall begin six months after the date of the action or circumstances that cause such student to fail to satisfy the requirements of a Kansas promise scholarship agreement, as determined by the state board of regents upon the circumstances of each individual case. All moneys received pursuant to this subsection shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the Kansas promise scholarship program fund. (2) For any Kansas promise scholarship awarded on or after July 1, 2021, the state board of regents shall be the sole entity responsible for collecting or recouping any Kansas promise scholarship funds required to be repaid by a student who fails to satisfy the requirements of a Kansas promise scholarship agreement pursuant to this section. (3) The state board of regents is authorized to turn any repayment account arising under this act to a designated loan servicer or collection agency to collect on the state board's behalf, the state not being involved other than to receive payments from the loan servicer or collection agency at the interest rate prescribed under this subsection. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2539 5 (4) Eligible postsecondary educational institutions and each state agency are authorized to provide academic, employment, residency and contact information regarding students who received a Kansas promise scholarship to the state board of regents for the purposes of: (A) Determining whether or not a student satisfied the requirements of this act and the Kansas promise scholarship agreement; and (B) aiding in the collection or recoupment of any funds required to be repaid pursuant to this section. (5) Eligible postsecondary educational institutions shall: (A) Provide annually to the state board of regents the last known contact information of each student who received a Kansas promise scholarship until the requirements of the program and scholarship agreement are complete; and (B) notify the state board of regents when a student who received a Kansas promise scholarship: (i) Completes the program of study for which the student received the scholarship or has exhausted scholarship benefits; and (ii) exceeds the 36-month program completion requirement provided in this section. This requirement shall apply to any Kansas promise scholarship awarded on or after July 1, 2021. (6) For any Kansas promise scholarship awarded on or after July 1, 2021, eligible postsecondary educational institutions shall not be considered a contractor of the state nor shall such institutions be required to participate in tracking, collecting or recouping any funds required to be repaid by a student who fails to satisfy the requirements of a Kansas promise scholarship agreement pursuant to this section. (c) Any requirement of a Kansas promise scholarship agreement entered into pursuant to this section may be postponed for good cause in accordance with rules and regulations of the state board of regents. (d) A scholarship recipient satisfies the requirements of the Kansas promise scholarship program if such recipient: (1) Completes the requirements of the scholarship agreement; (2) commences service as a military servicemember after receiving a Kansas promise scholarship; (3) fails to satisfy the requirements after making the best possible effort to do so as determined by the state board of regents; (4) is unable to obtain employment or continue in employment after making the best possible effort to do so; or (5) is unable to satisfy the requirements due to disability or death of the scholarship recipient. Sec. 4. K.S.A. 2023 Supp. 74-32,271, 74-32,275 and 74-32,276 are hereby repealed. Sec. 5. This act shall take effect and be in force from and after its 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2539 6 publication in the statute book.1