Kentucky 2022 2022 Regular Session

Kentucky Senate Bill SB163 Engrossed / Bill

                    UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 1 of 13 
SB016310.100 - 1347 - XXXX  	GA 
AN ACT relating to student financial aid. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
Section 1.   KRS 164.767 is amended to read as follows: 3 
(1) No loan guarantee shall be approved, nor any loan, grant, scholarship, recognition 4 
award, work-study reimbursement, or other form of financial aid shall be disbursed, 5 
under programs authorized by KRS 164.740 to 164.790[164.785], to any student 6 
who is an inmate or who is incarcerated in a penal institution unless funds have first 7 
been provided to all other eligible students who have applied in accordance with the 8 
administrative regulations of the authority. 9 
(2) The Department of Corrections and any person or organization responsible for the 10 
supervision or operation of a penal institution shall cooperate with the authority and 11 
participating institutions in providing information to them to identify applicants 12 
who are inmates at or incarcerated in a penal institution. 13 
(3) No person shall be eligible for any program authorized under KRS 164.740 to 14 
164.790 who: 15 
(a) Is a violent offender as defined in KRS 439.3401; 16 
(b) Has been convicted of aggravated trafficking in a controlled substance 17 
under KRS 218A.142; 18 
(c) Has been convicted in a second or subsequent offense of trafficking in a 19 
controlled substance under KRS 218A.1412, 218A.1413, or 218A.1414 or 20 
trafficking in a misrepresented controlled substance under KRS 21 
218A.14141; or 22 
(d) Has been convicted of a criminal offense against a victim who is a minor as 23 
defined in KRS 17.500. 24 
Section 2.   KRS 164.7874 is amended to read as follows: 25 
As used in KRS 164.7871 to 164.7885: 26 
(1) "Academic term" means a semester or other time period specified in an 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 2 of 13 
SB016310.100 - 1347 - XXXX  	GA 
administrative regulation promulgated by the authority; 1 
(2) "Academic year" means a period consisting of at least the minimum school term, as 2 
defined in KRS 158.070; 3 
(3) "ACT score" means the composite score achieved on the American College Test at 4 
a national test site on a national test date or the college admissions examination 5 
administered statewide under KRS 158.6453(5)(b)5. if the exam is the ACT, or an 6 
equivalent score, as determined by the authority, on the SAT administered by the 7 
College Board, Inc.; 8 
(4) "Authority" means the Kentucky Higher Education Assistance Authority; 9 
(5) "Award period" means the fall and spring consecutive academic terms within one 10 
(1) academic year; 11 
(6) "Council" means the Council on Postsecondary Education created under KRS 12 
164.011; 13 
(7) "Eligible high school student" means any person who: 14 
(a) Is a citizen, national, or permanent resident of the United States and Kentucky 15 
resident; 16 
(b) Was enrolled after July 1, 1998: 17 
1. In a Kentucky high school for at least one hundred forty (140) days of 18 
the minimum school term unless exempted by the authority's executive 19 
director upon documentation of extreme hardship, while meeting the 20 
KEES curriculum requirements, and was enrolled in a Kentucky high 21 
school at the end of the academic year; 22 
2. In a Kentucky high school for the fall academic term of the senior year 23 
and who: 24 
a. Was enrolled during the entire academic term; 25 
b. Completed the high school's graduation requirements during the 26 
fall academic term; and 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 3 of 13 
SB016310.100 - 1347 - XXXX  	GA 
c. Was not enrolled in a secondary school during any other academic 1 
term of that academic year; or 2 
3. In the Gatton Academy of Mathematics and Science in Kentucky, the 3 
Craft Academy for Excellence in Science and Mathematics, or in high 4 
school at a model and practice school under KRS 164.380 while meeting 5 
the Kentucky educational excellence scholarship curriculum 6 
requirements; and 7 
(c) Has a grade point average of 2.5 or above at the end of any academic year 8 
beginning after July 1, 1998, or at the end of the fall academic term for a 9 
student eligible under paragraph (b) 2. of this subsection[; and 10 
(d) Is not a convicted felon]; 11 
(8) "Eligible postsecondary student" means a citizen, national, or permanent resident of 12 
the United States and Kentucky resident, as determined by the participating 13 
institution in accordance with criteria established by the council for the purposes of 14 
admission and tuition assessment, who: 15 
(a) Earned a KEES award; 16 
(b) Has the required postsecondary GPA and credit hours required under KRS 17 
164.7881; 18 
(c) Has remaining semesters of eligibility under KRS 164.7881; and 19 
(d) Is enrolled in a participating institution as a part-time or full-time student[; 20 
and 21 
(e) Is not a convicted felon]; 22 
(9) "Full-time student" means a student enrolled in a postsecondary program of study 23 
that meets the full-time student requirements of the participating institution in 24 
which the student is enrolled; 25 
(10) "Grade point average" or "GPA" means the grade point average earned by an 26 
eligible student and reported by the high school or participating institution in which 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 4 of 13 
SB016310.100 - 1347 - XXXX  	GA 
the student was enrolled based on a scale of 4.0 or its equivalent if the high school 1 
or participating institution that the student attends does not use the 4.0 grade scale; 2 
(11) "High school" means any Kentucky public high school, the Gatton Academy of 3 
Mathematics and Science in Kentucky, the Craft Academy for Excellence in 4 
Science and Mathematics, a high school of a model and practice school under KRS 5 
164.380, and any private, parochial, or church school located in Kentucky that has 6 
been certified by the Kentucky Board of Education as voluntarily complying with 7 
curriculum, certification, and textbook standards established by the Kentucky Board 8 
of Education under KRS 156.160; 9 
(12) "KEES" or "Kentucky educational excellence scholarship" means a scholarship 10 
provided under KRS 164.7871 to 164.7885; 11 
(13) "KEES award" means: 12 
(a) For an eligible high school student, the sum of the KEES base amount for 13 
each academic year of high school plus any KEES supplemental amount, as 14 
adjusted pursuant to KRS 164.7881; and 15 
(b) For a student eligible under KRS 164.7879(3)(e), the KEES supplemental 16 
amount as adjusted pursuant to KRS 164.7881; 17 
(14) "KEES award maximum" means the sum of the KEES base amount earned in each 18 
academic year of high school plus any KEES supplemental amount earned; 19 
(15) "KEES base amount" or "base amount" means the amount earned by an eligible 20 
high school student based on the student's GPA pursuant to KRS 164.7879; 21 
(16) "KEES curriculum" means five (5) courses of study, except for students who meet 22 
the criteria of subsection (7)(b)2. of this section, in an academic year as determined 23 
in accordance with an administrative regulation promulgated by the authority; 24 
(17) "KEES supplemental amount" means the amount earned by an eligible student 25 
based on the student's ACT score pursuant to KRS 164.7879; 26 
(18) "KEES trust fund" means the Wallace G. Wilkinson Kentucky educational 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 5 of 13 
SB016310.100 - 1347 - XXXX  	GA 
excellence scholarship trust fund; 1 
(19) "On track to graduate" means the number of cumulative credit hours earned as 2 
compared to the number of hours determined by the postsecondary education 3 
institution as necessary to complete a bachelor's degree by the end of eight (8) 4 
academic terms or ten (10) academic terms if a student is enrolled in an 5 
undergraduate program that requires five (5) years of study; 6 
(20) "Participating institution" means an "institution" as defined in KRS 164.001 that is 7 
eligible to participate in the federal Pell Grant program, executes a contract with the 8 
authority on terms the authority deems necessary or appropriate for the 9 
administration of its programs, and: 10 
(a) 1. Is publicly operated; 11 
2. Is licensed by the Commonwealth of Kentucky and has operated for at 12 
least ten (10) years, offers an associate or baccalaureate degree program 13 
of study not comprised solely of sectarian instruction, and admits as 14 
regular students only high school graduates, recipients of a High School 15 
Equivalency Diploma, or students transferring from another accredited 16 
degree granting institution; or 17 
3. Is designated by the authority as an approved out-of-state institution that 18 
offers a degree program in a field of study that is not offered at any 19 
institution in the Commonwealth; and 20 
(b) Continues to commit financial resources to student financial assistance 21 
programs; and 22 
(21) "Part-time student" means a student enrolled in a postsecondary program of study 23 
who does not meet the full-time student requirements of the participating institution 24 
in which the student is enrolled and who is enrolled for at least six (6) credit hours, 25 
or the equivalent for an institution that does not use credit hours. 26 
Section 3.   KRS 164.7884 is amended to read as follows: 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 6 of 13 
SB016310.100 - 1347 - XXXX  	GA 
(1) As used in this section: 1 
(a) "Academic year" means July 1 through June 30 of each year; 2 
(b) "Apprentice" has the same meaning as in KRS 343.010; 3 
(c) "Eligible student" means an eligible high school student who has graduated 4 
from high school or a student eligible under KRS 164.7879(3)(e); 5 
(d) "Proprietary school" means a school as defined in KRS 165A.310(10)(a) to 6 
(d) that: 7 
1. Is licensed by the Kentucky Commission on Proprietary Education, 8 
the Kentucky Board of Barbering, the Kentucky Board of 9 
Cosmetology, the Kentucky Board of Nursing, or the Kentucky Board 10 
of Embalmers and Funeral Directors; 11 
2. Has operated for at least five (5) years; 12 
3. Has its headquarters or main campus physically located in Kentucky; 13 
and 14 
4. Is not eligible to participate in the federal Pell Grant program; 15 
(e) "Qualified proprietary school program" means a program offered by a 16 
proprietary school that is in one (1) of Kentucky's top five (5) high-demand 17 
work sectors as determined by the Kentucky Workforce Investment Board; 18 
(f)[(d)] "Qualified workforce training program" means a program that is in one 19 
(1) of Kentucky's top five (5) high-demand work sectors as determined by the 20 
Kentucky Workforce Investment Board; 21 
(g)[(e)] "Registered apprenticeship program" means an apprenticeship program 22 
that: 23 
1. Is established in accordance with the requirements of KRS Chapter 343; 24 
2. Requires a minimum of two thousand (2,000) hours of on-the-job work 25 
experience; 26 
3. Requires a minimum of one hundred forty-four (144) hours of related 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 7 of 13 
SB016310.100 - 1347 - XXXX  	GA 
instruction for each year of the apprenticeship; and 1 
4. Is approved by the Education and Workforce Development Cabinet; 2 
(h)[(f)] "Related instruction" has the same meaning as in KRS 343.010; and 3 
(i)[(g)] "Sponsor" has the same meaning as in KRS 343.010. 4 
(2) Notwithstanding KRS 164.7881, an eligible student who earned a KEES award 5 
shall be eligible for a Kentucky educational excellence scholarship if the student 6 
meets the requirements of this section and is: 7 
(a) An apprentice in a registered apprenticeship program;[ or] 8 
(b) Enrolled in a qualified workforce training program that has a current 9 
articulation agreement for postsecondary credit hours with a participating 10 
institution; or 11 
(c) Enrolled in a qualified proprietary school program. 12 
(3) (a) Beginning with the 2018-2019 academic year, an eligible student enrolled in a 13 
registered apprenticeship program or, for the academic year beginning July 1, 14 
2020, an eligible student enrolled in a qualified workforce training program 15 
or, for the academic year beginning July 1, 2022, an eligible student 16 
enrolled in a qualified proprietary school program may receive 17 
reimbursement of tuition, books, required tools, and other approved expenses 18 
required for participation in the program, upon certification by the sponsor or 19 
school and approval by the authority. 20 
(b) The reimbursement amount an eligible student may receive in an academic 21 
year shall not exceed the student's KEES award maximum. 22 
(c) The total reimbursement amount an eligible student may receive under this 23 
section shall not exceed the student's KEES award maximum multiplied by 24 
four (4). 25 
(4) Eligibility for a KEES scholarship under this section shall terminate upon the earlier 26 
of: 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 8 of 13 
SB016310.100 - 1347 - XXXX  	GA 
(a) The expiration of five (5) years following the eligible student's graduation 1 
from high school or receiving a High School Equivalency Diploma, except as 2 
provided in KRS 164.7881(5); or 3 
(b) The eligible student's successful completion of the registered apprenticeship 4 
program, [or ]qualified workforce training program, or qualified proprietary 5 
school program. 6 
(5) The authority shall promulgate administrative regulations establishing the 7 
procedures for making awards under this section in consultation with the Kentucky 8 
Education and Workforce Development Cabinet and the Kentucky Economic 9 
Development Cabinet. 10 
Section 4.   KRS 164.7879 is amended to read as follows: 11 
(1) Kentucky educational excellence scholarship awards shall be based upon an 12 
established base scholarship amount and an eligible high school student's grade 13 
point average. The base scholarship amount for students attaining a grade point 14 
average of at least 2.5 for the 1998-1999 academic year shall be as follows: 15 
  GPA Amount GPA Amount 16 
  2.50 $125.00 3.30 $325.00 17 
  2.60 $150.00 3.40 $350.00 18 
  2.70 $175.00 3.50 $375.00 19 
  2.75 $187.00 3.60 $400.00 20 
  2.80 $200.00 3.70 $425.00 21 
  2.90 $225.00 3.75 $437.00 22 
  3.00 $250.00 3.80 $450.00 23 
  3.10 $275.00 3.90 $475.00 24 
  3.20 $300.00 4.00 $500.00 25 
  3.25 $312.00 26 
 The authority shall review the base amount of the Kentucky educational excellence 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 9 of 13 
SB016310.100 - 1347 - XXXX  	GA 
scholarship each academic year and may promulgate an administrative regulation to 1 
make adjustments after considering the availability of funds. 2 
(2) (a) The authority shall commit to provide to each eligible high school student the 3 
base amount of the Kentucky educational excellence scholarship for each 4 
academic year of high school study in the Kentucky educational excellence 5 
scholarship curriculum that the high school student has attained at least a 2.5 6 
grade point average. The award shall be based upon the eligible high school 7 
student's grade point average at the close of each academic year. An award 8 
attributable to a past academic year shall not be increased after the award has 9 
been earned by an eligible high school student, regardless of any subsequent 10 
increases made to the base amount of the Kentucky educational excellence 11 
scholarship through the promulgation of an administrative regulation by the 12 
authority. 13 
(b) Notwithstanding the definitions of "eligible high school student" and "high 14 
school" in KRS 164.7874, any high school student who maintains Kentucky 15 
residency and completes the academic courses that are required for a 16 
Kentucky educational excellence scholarship while participating in an 17 
approved educational high school foreign exchange program or participating 18 
in the United States Congressional Page School may apply his or her grade 19 
point average for that academic year toward the base as described in paragraph 20 
(a) of this subsection. The grade point average shall be reported by the 21 
student's Kentucky home high school, based on an official transcript from the 22 
school that the student attended during the out-of-state educational experience. 23 
The authority shall promulgate administrative regulations that describe the 24 
approval process for the educational exchange programs that qualify under 25 
this paragraph. The provisions in this paragraph shall likewise apply to any 26 
Kentucky high school student who participated in an approved educational 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 10 of 13 
SB016310.100 - 1347 - XXXX  	GA 
exchange program or in a Congressional Page School since the 1998-99 1 
school year and maintained his or her Kentucky residency throughout. 2 
(c) 1. Notwithstanding the definitions of "eligible high school student" and 3 
"high school" in KRS 164.7874 and the requirement that a student 4 
graduate from a Kentucky high school, a high school student who 5 
completes the KEES curriculum while attending an accredited out-of-6 
state high school or Department of Defense school may apply the grade 7 
point average for any applicable academic year toward the base as 8 
described in paragraph (a) of this subsection and shall also qualify for a 9 
supplemental award under subsection (3) of this section when: 10 
a. His or her custodial parent or guardian is in active service of the 11 
Armed Forces of the United States;[ and] 12 
b. The[ custodial parent or guardian maintained Kentucky as the 13 
home of record at the time the] student attended an accredited out-14 
of-state high school or a Department of Defense school as a result 15 
of the custodial parent's or guardian's military transfer outside 16 
of Kentucky; and 17 
c. The student earned a KEES base amount at a Kentucky high 18 
school prior to the custodial parent's or guardian's military 19 
transfer outside of Kentucky. 20 
2. The student or parent shall arrange for the out-of-state school to report 21 
the student's grade point average each academic year and the student's 22 
highest ACT score to the authority as required under KRS 164.7885. 23 
The authority shall promulgate administrative regulations implementing 24 
the requirements in this paragraph, including: 25 
a. The documentation that the parent shall submit to the authority 26 
establishing the student's eligibility for the scholarship; and 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 11 of 13 
SB016310.100 - 1347 - XXXX  	GA 
b. The assurances that an out- of state institution shall submit to the 1 
authority for submission of the student grade point average. 2 
3. The provisions in this paragraph shall apply to the 2001-2002 school 3 
year and thereafter. 4 
(d) Beginning with the 2013-2014 academic year, a student who meets the 5 
Kentucky core academic standards for high school graduation established in 6 
administrative regulation and graduates after completing three (3) years of 7 
high school shall receive a Kentucky educational excellence scholarship 8 
award equivalent to completing high school in four (4) years. The award shall 9 
be determined by dividing the total actual KEES scholarship earned under 10 
subsection (1) of this section by three (3) and multiplying that number by four 11 
(4). The resulting number shall be the annual award the student is eligible for 12 
under subsection (1) of this section. 13 
(3) (a) The authority shall commit to provide to each eligible high school student 14 
graduating from high school before June 30, 1999, and achieving a score of at 15 
least 15 on the American College Test, a supplemental award for the award 16 
period beginning in the fall of 1999, based on the eligible high school 17 
student's highest ACT score attained by the date of graduation from high 18 
school. The amount of the supplemental award shall be determined as follows: 19 
  ACT  Annual ACT Annual 20 
  Score Bonus Score Bonus 21 
  15  	$21 22 $171 22 
  16  	$43 23 $193 23 
  17  	$64 24 $214 24 
  18  	$86 25 $236 25 
  19  $107 26 $257 26 
  20  $129 27 $279 27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 12 of 13 
SB016310.100 - 1347 - XXXX  	GA 
  21  $150 28 or above $300 1 
 Subsequent supplemental awards for eligible high school students graduating 2 
before June 30, 1999, shall be determined in accordance with the provisions 3 
of paragraph (b) of this subsection. 4 
(b) The authority shall commit to provide to each eligible high school student 5 
upon achievement after June 30, 1999, of an ACT score of at least 15 on the 6 
American College Test a supplemental award based on the eligible high 7 
school student's highest ACT score attained by the date of graduation from 8 
high school. The amount of the supplemental award shall be determined as 9 
follows: 10 
  ACT   ACT 11 
  Score Amount Score Amount 12 
  15  	$36 22 $286 13 
  16  	$71 23 $321 14 
  17  $107 24 $357 15 
  18  $143 25 $393 16 
  19  $179 26 $428 17 
  20  $214 27 $464 18 
  21  $250 28 and above $500 19 
 The authority shall review the base amount of the supplemental award 20 
beginning with the 2001-2002 academic year and each academic year 21 
thereafter and may promulgate an administrative regulation to make 22 
adjustments after considering the availability of funds. 23 
(c) Beginning with the 2008-2009 academic year, the authority shall commit to 24 
provide a supplemental award for achievement on examinations for Advanced 25 
Placement or International Baccalaureate as defined in KRS 164.002 to an 26 
eligible high school student whose family was eligible for free or reduced-27  UNOFFICIAL COPY  	22 RS SB 163/GA 
Page 13 of 13 
SB016310.100 - 1347 - XXXX  	GA 
price lunch for any year during high school enrollment. 1 
1. The supplemental award for AP examination scores are as follows: 2 
a. Two hundred dollars ($200) for each score of three (3); 3 
b. Two hundred fifty dollars ($250) for each score of four (4); and 4 
c. Three hundred dollars ($300) for each score of five (5). 5 
2. The supplemental award for IB examination scores are as follows: 6 
a. Two hundred dollars ($200) for each score of five (5); 7 
b. Two hundred fifty dollars ($250) for each score of six (6); and 8 
c. Three hundred dollars ($300) for each score of seven (7). 9 
(d) Beginning with the 2013-2014 academic year, the authority shall commit to 10 
provide a supplemental award for achievement on examinations for 11 
Cambridge Advanced International as defined in KRS 164.002 to an eligible 12 
high school student whose family was eligible for free or reduced-priced lunch 13 
for any year during high school enrollment. The supplemental award for 14 
Cambridge Advanced International examination scores are as follows: 15 
1. Two hundred dollars ($200) for each score of "e"; 16 
2. Two hundred fifty dollars ($250) for each score of "c" or "d"; and 17 
3. Three hundred dollars ($300) for each score of "a*", "a", or "b". 18 
(e) The authority shall promulgate administrative regulations establishing the 19 
eligibility criteria and procedures for making a supplemental award to 20 
Kentucky residents who are citizens, nationals, or permanent residents of the 21 
United States and who graduate from a nonpublic secondary school not 22 
certified by the Kentucky Board of Education and Kentucky residents who are 23 
citizens, nationals, or permanent residents of the United States and who obtain 24 
a High School Equivalency Diploma within five (5) years of their high school 25 
graduating class, and students under subsection (2)(c) of this section who do 26 
not attend an accredited high school. 27