Session of 2024 SENATE BILL No. 378 By Senator Olson 1-23 AN ACT concerning postsecondary education; relating to the state board of regents; making and concerning appropriations to the state board of regents for fiscal year 2025; providing grants to community colleges, technical colleges and the Washburn institute of technology for capital improvements of trade program buildings and facilities and for repairs and purchases of trade program educational equipment and fixtures; establishing the Kansas trade service scholarship act to provide scholarships to students who enroll in certain trade programs; creating the Kansas trade service scholarship fund. Be it enacted by the Legislature of the State of Kansas: Section 1. STATE BOARD OF REGENTS (a) There is appropriated for the above agency from the state general fund for the fiscal year ending June 30, 2025, the following: Kansas trade service scholarship................................................$10,000,000 Provided, That expenditures shall be made by the above agency from the Kansas trade service scholarship account to implement the provisions of sections 2 through 7, and amendments thereto. Trade program capital improvement grants...............................$10,010,000 Provided, That expenditures shall be made by the above agency from the trade program capital improvement grants account for fiscal year 2025 to provide a grant to each community college and to each of the following technical colleges: Flint Hills technical college; Manhattan area technical college; north central Kansas technical college; Fort Hays state university; northwest Kansas technical college; Salina area technical college; Washburn institute of technology; and Wichita state university campus of applied sciences and technology; Provide further, That each such college shall receive a grant in an amount of $385,000 for capital improvements of trade program buildings and facilities and for repairs and purchases of trade program educational equipment and fixtures. Sec. 2. (a) Sections 2 through 7, and amendments thereto, shall be known and may be cited as the Kansas trade service scholarship act. (b) As used in the Kansas trade service scholarship act: (1) "Eligible postsecondary educational institution" means: (A) Any community college or technical college established under 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 SB 378 2 the laws of this state; (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 an eligible trade 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) "Eligible trade program" means any career and technical education certificate or stand-alone trade program offered by an eligible postsecondary educational institution that is approved by the state board of regents as an eligible trade program pursuant to section 3, and amendments thereto. (3) "Military servicemember" means the same as defined in K.S.A. 2023 Supp. 48-3406, and amendments thereto. (4) "Part-time student" means a student who is enrolled for six credit hours or more in the fall, summer or spring semester and is not enrolled as a full-time student. Sec. 3. (a) There is hereby established the Kansas trade service scholarship program. The state board of regents shall implement and administer the program. (b) On or before March 1, 2025, the state board of regents shall adopt rules and regulations to implement and administer the Kansas trade service scholarship program. Such rules and regulations shall establish: (1) A scholarship application process, including, but not limited to, accepting scholarship applications throughout the academic year and processing such applications in the order such applications were received; (2) appeal procedures for denial or revocation of a scholarship; (3) the terms, conditions and requirements that shall be incorporated into each scholarship agreement, which shall not be more stringent than the requirements provided in this act; (4) procedures for requesting and approving medical, military and personal absences from an eligible postsecondary educational institution while receiving a scholarship; (5) criteria for determining whether a student who received a Kansas trade service scholarship fulfilled the residency, employment and repayment requirements included in a scholarship agreement as provided in section 6, and amendments thereto; and (6) criteria for determining when a student who received scholarship may be released from the requirements of a scholarship, if there are special circumstances that caused such student to be unable to complete such requirements. (c) The state board of regents shall: 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 SB 378 3 (1) Identify eligible trade programs offered by each eligible postsecondary educational institution in any of the following fields: (A) Agricultural business, industry and operations; (B) agriculture equipment and technology; (C) animal science; (D) land, pasture and crop management; (E) food processing, technology and safety; (F) aquaculture; (G) heating, ventilation and air conditioning; (H) plumbing; (I) electrical; (J) construction; (K) welding and fabrication; (L) automotive and diesel mechanics; (M) aerospace mechanics; (N) commercial driver's license training; (O) autoCAD drafting; (P) manufacturing technologies; (Q) machining; (R) masonry; (S) robotics, including drones; (T) electrical and telephone line worker; (U) railroad training; (V) carpentry; (W) major appliance technology; and (X) any other trade program offered by an eligible postsecondary educational institution that is approved by the board. (2) work with community partners, such as community foundations, school districts, postsecondary educational institutions, Kansas business and industry and Kansas economic development organizations to publicize Kansas trade service scholarships, including, but not limited to, publicizing eligible postsecondary educational institutions, approved scholarship-eligible programs, application procedures and application deadlines; (3) disburse funds to each eligible postsecondary educational institution for the purpose of awarding Kansas trade service scholarships; (4) accept electronic signatures as sufficient and valid on all forms and agreements required by the Kansas trade service scholarship act and any rules and regulations adopted thereunder; (5) enforce Kansas trade service scholarship agreements; (6) collect any moneys repaid by students pursuant to section 6, and amendments thereto; (7) determine whether students who received a Kansas trade service 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 SB 378 4 scholarship fulfill the residency, employment and repayment requirements provided in section 6, and amendments thereto; and (8) annually evaluate the Kansas trade service scholarship act and prepare and submit a report to the senate standing committee on education and the house of representatives standing committee on education. Such report shall include, but not be limited to, the total program cost for each trade program at each eligible postsecondary educational institution, the amount of scholarship moneys awarded that went to each trade program, the number of credit hours paid for with scholarship moneys, the amount of scholarship moneys expected to be awarded to each institution for each semester, the number of scholarships awarded, the total amount of scholarship moneys awarded, the amount of scholarship moneys provided for tuition, fees, books and supplies and a review of the employment of scholarship recipients, including, but not limited to, employment fields and geographic location of such employment. (d) A student shall not be awarded a Kansas trade service scholarship if such student is awarded a Kansas promise scholarship pursuant to K.S.A. 74-32,271 et seq., and amendments thereto. Sec. 4. (a) Subject to appropriations, the amount of a Kansas trade service scholarship for a student for each academic year shall be determined as follows: (1) For a student enrolled in an eligible trade program offered by an eligible public postsecondary educational institution described in section 2(b)(1)(A) or (B), and amendments thereto, the scholarship amount shall be the aggregate amount of tuition, required fees and the cost of books and required materials for the eligible trade program at the eligible postsecondary educational institution for the academic year in which the student is enrolled and receiving the scholarship minus the aggregate amount of all other aid awarded to such student for such academic year. (2) For a student enrolled in a eligible trade program offered by an eligible private postsecondary educational institution described in section 2(b)(1)(C), and amendments thereto, the scholarship amount shall be the aggregate amount of tuition, required fees and the cost of books and materials for such program for the academic year in which the student is enrolled and receiving the scholarship minus the aggregate amount of all other aid awarded to such student for such academic year, except that a scholarship awarded pursuant to this paragraph shall not exceed the average cost of tuition, required fees and the cost of books and required materials for such eligible trade program when offered by an eligible public postsecondary educational institution described in section 2(b)(1) (A) or (B), and amendments thereto. (b) Kansas trade service scholarships shall only be awarded to an eligible student whose family household income is equal to or less than: 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 SB 378 5 (1) $100,000 for a family of one or two; (2) $150,000 for a family of three; or (3) for household sizes larger than that of a family of three, the family of three amount plus $4,800 for each additional family member. (c) (1) Kansas trade service scholarships shall be used only to pay for up to a total of 68 credit hours or a total of $20,000 in Kansas trade service scholarship awards, whichever is attained first, over the lifetime of the student who received the Kansas trade service scholarship regardless of the eligible postsecondary educational institution such student attended. (2) Kansas trade service scholarship awards shall not be used to fund: (A) Prerequisite classes required for an eligible trade program, unless such classes are a designated course within the eligible program; or (B) any remedial course, as defined in K.S.A. 76-7,151, and amendments thereto, unless such course is offered in a corequisite format. (d) The state board of regents shall disburse funds based on reimbursement requests from eligible postsecondary educational institutions. Reimbursement requests shall be based on the actual amount of Kansas trade service scholarship amounts awarded by an eligible postsecondary educational institution for the appropriate academic period. Any eligible postsecondary educational institution seeking reimbursement shall submit a reimbursement request to the state board of regents on or before September 1, December 1, March 1 and June 1 of each year. The state board of regents shall disburse the appropriate amount of funds to eligible postsecondary educational institutions on September 15, December 15, March 15 and June 15 of each year. (e) As used in this section, "aid" means any grant, scholarship or financial assistance awards that do not require repayment. "Aid" does not include any military financial educational benefits or any family postsecondary savings account or other qualified tuition program established pursuant to section 529 of the internal revenue code of 1986, as amended. Sec. 5. (a) To be eligible for a Kansas trade service 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) have 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 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 SB 378 6 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 has graduated, within the preceding 12 months, from any out-of-state secondary school or obtained a high school equivalency certificate; or (F) 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) complete the required scholarship application on such forms and in such manner as established by the state board of regents; (5) enter into a Kansas trade service scholarship agreement pursuant to K.S.A. section 6, and amendments thereto; (6) complete the free application for federal student aid for the academic year in which the student applies to receive a Kansas trade service 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) enroll in an eligible postsecondary educational institution in an eligible trade program. (b) To continue receiving a Kansas trade service scholarship, a student shall: (1) Maintain satisfactory academic progress, including a grade point average of 2.0 or higher, or the equivalent thereof, in the graded courses of the eligible trade program for which the student received a Kansas trade service scholarship; and (2) satisfy the requirements of a Kansas trade service scholarship agreement as provided in section 6, and amendments thereto. Sec. 6. (a) As a condition to receiving a Kansas trade service scholarship, an eligible student shall enter into a Kansas trade service scholarship agreement with the state board of regents. The eligible postsecondary educational institution providing the scholarship award to such student shall counsel each eligible student on the requirements and conditions of the scholarship agreement. Such agreement shall require any student who receives a Kansas trade service 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 trade service scholarship and engage in and complete the eligible 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 SB 378 7 trade program within 36 months of the date the scholarship was first awarded; (2) within six months after graduation or completion of the eligible trade program: (A) Reside and commence work in the state of Kansas 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 (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 and commence work in Kansas 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 trade service scholarship agreement, repay the amount of the Kansas trade service scholarship that 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 trade service scholarship fails to satisfy the requirements of a scholarship agreement, such student shall pay an amount equal to the total amount of moneys received by such student pursuant to such agreement and 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 when such student's first course funded by a Kansas trade service scholarship award began. Interest shall begin accruing on the date the student is determined to be out of compliance with the Kansas trade service 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 caused such student to fail to satisfy the requirements of a scholarship agreement, as determined by the state board of regents based on 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 trade service scholarship fund. (2) The state board of regents shall be the sole entity responsible for collecting or recouping any Kansas trade service scholarship funds 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 SB 378 8 required to be repaid by a student who fails to satisfy the requirements of a scholarship agreement pursuant to this section. (3) The state board of regents is authorized to submit any repayment account arising under this act to a designated loan servicer or collection agency that shall collect on the state board's behalf. (4) Each postsecondary educational institution and state agency is authorized to provide academic, employment, residency and contact information regarding students who received a Kansas trade service scholarship to the state board of regents for the purposes of: (A) Determining whether or not a student satisfied the requirements of a scholarship agreement; and (B) aiding in the collection or recoupment of any funds required to be repaid pursuant to this section. (5) An eligible postsecondary educational institution shall: (A) Provide annually to the state board of regents the last known contact information of each student who received a Kansas trade service scholarship until the requirements of the scholarship agreement are complete; and (B) notify the state board of regents when a student who received a Kansas trade service scholarship: (i) Completes the eligible trade program for which the student received the scholarship or has exhausted scholarship benefits; and (ii) exceeds the 36-month completion requirement. (6) 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 trade service scholarship agreement pursuant to this section. (c) Any requirement of a Kansas trade service scholarship agreement entered into pursuant to this section may be postponed for good cause shown in accordance with rules and regulations of the state board of regents. (d) A scholarship recipient satisfies the requirements of the Kansas trade service scholarship act if such recipient: (1) Completes the requirements of the scholarship agreement; (2) commences service as a military servicemember after receiving a Kansas trade service 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. 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 SB 378 9 Sec. 7. There is hereby created in the state treasury the Kansas trade service scholarship fund, which shall be administered by the state board of regents. All expenditures from the Kansas trade service scholarship fund shall be for scholarships awarded pursuant to the Kansas trade service scholarship act. All expenditures from the Kansas trade service scholarship fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the executive officer of the state board of regents or the designee of the executive officer. All moneys received by the board for the Kansas trade service scholarship act shall be deposited in the state treasury 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 trade service scholarship fund. Sec. 8. Sections 2 through 7, and amendments thereto, shall expire on July 1, 2027. Sec. 9. This act shall take effect and be in force from and after its publication in the statute book. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18