UNOFFICIAL COPY 22 RS SB 163/EN Page 1 of 14 SB016320.100 - 1347 - XXXX Engrossed 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; or 16 (b) Has been convicted of a criminal offense against a victim who is a minor as 17 defined in KRS 17.500. 18 (4) A person shall not be eligible for any program authorized under KRS 164.740 to 19 164.790 while incarcerated in a penal institution for a conviction of: 20 (a) Aggravated trafficking in a controlled substance under KRS 218A.142; 21 (b) A second or subsequent offense of trafficking in a controlled substance 22 under KRS 218A.1412 or 218A.1413; or 23 (c) Importing heroin, carfentanil, fentanyl, or fentanyl derivatives under 24 218A.1410. 25 (5) The Kentucky Higher Education Assistance Authority shall promulgate 26 administrative regulations in accordance with KRS Chapter 13A to implement 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 2 of 14 SB016320.100 - 1347 - XXXX Engrossed the requirements of this section. 1 Section 2. KRS 164.7874 is amended to read as follows: 2 As used in KRS 164.7871 to 164.7885: 3 (1) "Academic term" means a semester or other time period specified in an 4 administrative regulation promulgated by the authority; 5 (2) "Academic year" means a period consisting of at least the minimum school term, as 6 defined in KRS 158.070; 7 (3) "ACT score" means the composite score achieved on the American College Test at 8 a national test site on a national test date or the college admissions examination 9 administered statewide under KRS 158.6453(5)(b)5. if the exam is the ACT, or an 10 equivalent score, as determined by the authority, on the SAT administered by the 11 College Board, Inc.; 12 (4) "Authority" means the Kentucky Higher Education Assistance Authority; 13 (5) "Award period" means the fall and spring consecutive academic terms within one 14 (1) academic year; 15 (6) "Council" means the Council on Postsecondary Education created under KRS 16 164.011; 17 (7) "Eligible high school student" means any person who: 18 (a) Is a citizen, national, or permanent resident of the United States and Kentucky 19 resident; 20 (b) Was enrolled after July 1, 1998: 21 1. In a Kentucky high school for at least one hundred forty (140) days of 22 the minimum school term unless exempted by the authority's executive 23 director upon documentation of extreme hardship, while meeting the 24 KEES curriculum requirements, and was enrolled in a Kentucky high 25 school at the end of the academic year; 26 2. In a Kentucky high school for the fall academic term of the senior year 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 3 of 14 SB016320.100 - 1347 - XXXX Engrossed and who: 1 a. Was enrolled during the entire academic term; 2 b. Completed the high school's graduation requirements during the 3 fall academic term; and 4 c. Was not enrolled in a secondary school during any other academic 5 term of that academic year; or 6 3. In the Gatton Academy of Mathematics and Science in Kentucky, the 7 Craft Academy for Excellence in Science and Mathematics, or in high 8 school at a model and practice school under KRS 164.380 while meeting 9 the Kentucky educational excellence scholarship curriculum 10 requirements; and 11 (c) Has a grade point average of 2.5 or above at the end of any academic year 12 beginning after July 1, 1998, or at the end of the fall academic term for a 13 student eligible under paragraph (b) 2. of this subsection[; and 14 (d) Is not a convicted felon]; 15 (8) "Eligible postsecondary student" means a citizen, national, or permanent resident of 16 the United States and Kentucky resident, as determined by the participating 17 institution in accordance with criteria established by the council for the purposes of 18 admission and tuition assessment, who: 19 (a) Earned a KEES award; 20 (b) Has the required postsecondary GPA and credit hours required under KRS 21 164.7881; 22 (c) Has remaining semesters of eligibility under KRS 164.7881; and 23 (d) Is enrolled in a participating institution as a part-time or full-time student[; 24 and 25 (e) Is not a convicted felon]; 26 (9) "Full-time student" means a student enrolled in a postsecondary program of study 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 4 of 14 SB016320.100 - 1347 - XXXX Engrossed that meets the full-time student requirements of the participating institution in 1 which the student is enrolled; 2 (10) "Grade point average" or "GPA" means the grade point average earned by an 3 eligible student and reported by the high school or participating institution in which 4 the student was enrolled based on a scale of 4.0 or its equivalent if the high school 5 or participating institution that the student attends does not use the 4.0 grade scale; 6 (11) "High school" means any Kentucky public high school, the Gatton Academy of 7 Mathematics and Science in Kentucky, the Craft Academy for Excellence in 8 Science and Mathematics, a high school of a model and practice school under KRS 9 164.380, and any private, parochial, or church school located in Kentucky that has 10 been certified by the Kentucky Board of Education as voluntarily complying with 11 curriculum, certification, and textbook standards established by the Kentucky Board 12 of Education under KRS 156.160; 13 (12) "KEES" or "Kentucky educational excellence scholarship" means a scholarship 14 provided under KRS 164.7871 to 164.7885; 15 (13) "KEES award" means: 16 (a) For an eligible high school student, the sum of the KEES base amount for 17 each academic year of high school plus any KEES supplemental amount, as 18 adjusted pursuant to KRS 164.7881; and 19 (b) For a student eligible under KRS 164.7879(3)(e), the KEES supplemental 20 amount as adjusted pursuant to KRS 164.7881; 21 (14) "KEES award maximum" means the sum of the KEES base amount earned in each 22 academic year of high school plus any KEES supplemental amount earned; 23 (15) "KEES base amount" or "base amount" means the amount earned by an eligible 24 high school student based on the student's GPA pursuant to KRS 164.7879; 25 (16) "KEES curriculum" means five (5) courses of study, except for students who meet 26 the criteria of subsection (7)(b)2. of this section, in an academic year as determined 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 5 of 14 SB016320.100 - 1347 - XXXX Engrossed in accordance with an administrative regulation promulgated by the authority; 1 (17) "KEES supplemental amount" means the amount earned by an eligible student 2 based on the student's ACT score pursuant to KRS 164.7879; 3 (18) "KEES trust fund" means the Wallace G. Wilkinson Kentucky educational 4 excellence scholarship trust fund; 5 (19) "On track to graduate" means the number of cumulative credit hours earned as 6 compared to the number of hours determined by the postsecondary education 7 institution as necessary to complete a bachelor's degree by the end of eight (8) 8 academic terms or ten (10) academic terms if a student is enrolled in an 9 undergraduate program that requires five (5) years of study; 10 (20) "Participating institution" means an "institution" as defined in KRS 164.001 that is 11 eligible to participate in the federal Pell Grant program, executes a contract with the 12 authority on terms the authority deems necessary or appropriate for the 13 administration of its programs, and: 14 (a) 1. Is publicly operated; 15 2. Is licensed by the Commonwealth of Kentucky and has operated for at 16 least ten (10) years, offers an associate or baccalaureate degree program 17 of study not comprised solely of sectarian instruction, and admits as 18 regular students only high school graduates, recipients of a High School 19 Equivalency Diploma, or students transferring from another accredited 20 degree granting institution; or 21 3. Is designated by the authority as an approved out-of-state institution that 22 offers a degree program in a field of study that is not offered at any 23 institution in the Commonwealth; and 24 (b) Continues to commit financial resources to student financial assistance 25 programs; and 26 (21) "Part-time student" means a student enrolled in a postsecondary program of study 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 6 of 14 SB016320.100 - 1347 - XXXX Engrossed who does not meet the full-time student requirements of the participating institution 1 in which the student is enrolled and who is enrolled for at least six (6) credit hours, 2 or the equivalent for an institution that does not use credit hours. 3 Section 3. KRS 164.7884 is amended to read as follows: 4 (1) As used in this section: 5 (a) "Academic year" means July 1 through June 30 of each year; 6 (b) "Apprentice" has the same meaning as in KRS 343.010; 7 (c) "Eligible student" means an eligible high school student who has graduated 8 from high school or a student eligible under KRS 164.7879(3)(e); 9 (d) "Proprietary school" means a school as defined in KRS 165A.310(10)(a) to 10 (d) that: 11 1. Is licensed by the Kentucky Commission on Proprietary Education, 12 the Kentucky Board of Barbering, the Kentucky Board of 13 Cosmetology, the Kentucky Board of Nursing, or the Kentucky Board 14 of Embalmers and Funeral Directors; 15 2. Has operated for at least five (5) years; 16 3. Has its headquarters or main campus physically located in Kentucky; 17 and 18 4. Is not eligible to participate in the federal Pell Grant program; 19 (e) "Qualified proprietary school program" means a program offered by a 20 proprietary school that is in one (1) of Kentucky's top five (5) high-demand 21 work sectors as determined by the Kentucky Workforce Investment Board; 22 (f)[(d)] "Qualified workforce training program" means a program that is in one 23 (1) of Kentucky's top five (5) high-demand work sectors as determined by the 24 Kentucky Workforce Investment Board; 25 (g)[(e)] "Registered apprenticeship program" means an apprenticeship program 26 that: 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 7 of 14 SB016320.100 - 1347 - XXXX Engrossed 1. Is established in accordance with the requirements of KRS Chapter 343; 1 2. Requires a minimum of two thousand (2,000) hours of on-the-job work 2 experience; 3 3. Requires a minimum of one hundred forty-four (144) hours of related 4 instruction for each year of the apprenticeship; and 5 4. Is approved by the Education and Workforce Development Cabinet; 6 (h)[(f)] "Related instruction" has the same meaning as in KRS 343.010; and 7 (i)[(g)] "Sponsor" has the same meaning as in KRS 343.010. 8 (2) Notwithstanding KRS 164.7881, an eligible student who earned a KEES award 9 shall be eligible for a Kentucky educational excellence scholarship if the student 10 meets the requirements of this section and is: 11 (a) An apprentice in a registered apprenticeship program;[ or] 12 (b) Enrolled in a qualified workforce training program that has a current 13 articulation agreement for postsecondary credit hours with a participating 14 institution; or 15 (c) Enrolled in a qualified proprietary school program. 16 (3) (a) Beginning with the 2018-2019 academic year, an eligible student enrolled in a 17 registered apprenticeship program or, for the academic year beginning July 1, 18 2020, an eligible student enrolled in a qualified workforce training program 19 or, for the academic year beginning July 1, 2022, an eligible student 20 enrolled in a qualified proprietary school program may receive 21 reimbursement of tuition, books, required tools, and other approved expenses 22 required for participation in the program, upon certification by the sponsor or 23 school and approval by the authority. 24 (b) The reimbursement amount an eligible student may receive in an academic 25 year shall not exceed the student's KEES award maximum. 26 (c) The total reimbursement amount an eligible student may receive under this 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 8 of 14 SB016320.100 - 1347 - XXXX Engrossed section shall not exceed the student's KEES award maximum multiplied by 1 four (4). 2 (4) Eligibility for a KEES scholarship under this section shall terminate upon the earlier 3 of: 4 (a) The expiration of five (5) years following the eligible student's graduation 5 from high school or receiving a High School Equivalency Diploma, except as 6 provided in KRS 164.7881(5); or 7 (b) The eligible student's successful completion of the registered apprenticeship 8 program, [or ]qualified workforce training program, or qualified proprietary 9 school program. 10 (5) The authority shall promulgate administrative regulations establishing the 11 procedures for making awards under this section in consultation with the Kentucky 12 Education and Workforce Development Cabinet and the Kentucky Economic 13 Development Cabinet. 14 Section 4. KRS 164.7879 is amended to read as follows: 15 (1) Kentucky educational excellence scholarship awards shall be based upon an 16 established base scholarship amount and an eligible high school student's grade 17 point average. The base scholarship amount for students attaining a grade point 18 average of at least 2.5 for the 1998-1999 academic year shall be as follows: 19 GPA Amount GPA Amount 20 2.50 $125.00 3.30 $325.00 21 2.60 $150.00 3.40 $350.00 22 2.70 $175.00 3.50 $375.00 23 2.75 $187.00 3.60 $400.00 24 2.80 $200.00 3.70 $425.00 25 2.90 $225.00 3.75 $437.00 26 3.00 $250.00 3.80 $450.00 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 9 of 14 SB016320.100 - 1347 - XXXX Engrossed 3.10 $275.00 3.90 $475.00 1 3.20 $300.00 4.00 $500.00 2 3.25 $312.00 3 The authority shall review the base amount of the Kentucky educational excellence 4 scholarship each academic year and may promulgate an administrative regulation to 5 make adjustments after considering the availability of funds. 6 (2) (a) The authority shall commit to provide to each eligible high school student the 7 base amount of the Kentucky educational excellence scholarship for each 8 academic year of high school study in the Kentucky educational excellence 9 scholarship curriculum that the high school student has attained at least a 2.5 10 grade point average. The award shall be based upon the eligible high school 11 student's grade point average at the close of each academic year. An award 12 attributable to a past academic year shall not be increased after the award has 13 been earned by an eligible high school student, regardless of any subsequent 14 increases made to the base amount of the Kentucky educational excellence 15 scholarship through the promulgation of an administrative regulation by the 16 authority. 17 (b) Notwithstanding the definitions of "eligible high school student" and "high 18 school" in KRS 164.7874, any high school student who maintains Kentucky 19 residency and completes the academic courses that are required for a 20 Kentucky educational excellence scholarship while participating in an 21 approved educational high school foreign exchange program or participating 22 in the United States Congressional Page School may apply his or her grade 23 point average for that academic year toward the base as described in paragraph 24 (a) of this subsection. The grade point average shall be reported by the 25 student's Kentucky home high school, based on an official transcript from the 26 school that the student attended during the out-of-state educational experience. 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 10 of 14 SB016320.100 - 1347 - XXXX Engrossed The authority shall promulgate administrative regulations that describe the 1 approval process for the educational exchange programs that qualify under 2 this paragraph. The provisions in this paragraph shall likewise apply to any 3 Kentucky high school student who participated in an approved educational 4 exchange program or in a Congressional Page School since the 1998-99 5 school year and maintained his or her Kentucky residency throughout. 6 (c) 1. Notwithstanding the definitions of "eligible high school student" and 7 "high school" in KRS 164.7874 and the requirement that a student 8 graduate from a Kentucky high school, a high school student who 9 completes the KEES curriculum while attending an accredited out-of-10 state high school or Department of Defense school may apply the grade 11 point average for any applicable academic year toward the base as 12 described in paragraph (a) of this subsection and shall also qualify for a 13 supplemental award under subsection (3) of this section when: 14 a. His or her custodial parent or guardian is in active service of the 15 Armed Forces of the United States;[ and] 16 b. The[ custodial parent or guardian maintained Kentucky as the 17 home of record at the time the] student attended an accredited out-18 of-state high school or a Department of Defense school as a result 19 of the custodial parent's or guardian's military transfer outside 20 of Kentucky; and 21 c. The student earned a KEES base amount at a Kentucky high 22 school prior to the custodial parent's or guardian's military 23 transfer outside of Kentucky. 24 2. The student or parent shall arrange for the out-of-state school to report 25 the student's grade point average each academic year and the student's 26 highest ACT score to the authority as required under KRS 164.7885. 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 11 of 14 SB016320.100 - 1347 - XXXX Engrossed The authority shall promulgate administrative regulations implementing 1 the requirements in this paragraph, including: 2 a. The documentation that the parent shall submit to the authority 3 establishing the student's eligibility for the scholarship; and 4 b. The assurances that an out- of state institution shall submit to the 5 authority for submission of the student grade point average. 6 3. The provisions in this paragraph shall apply to the 2001-2002 school 7 year and thereafter. 8 (d) Beginning with the 2013-2014 academic year, a student who meets the 9 Kentucky core academic standards for high school graduation established in 10 administrative regulation and graduates after completing three (3) years of 11 high school shall receive a Kentucky educational excellence scholarship 12 award equivalent to completing high school in four (4) years. The award shall 13 be determined by dividing the total actual KEES scholarship earned under 14 subsection (1) of this section by three (3) and multiplying that number by four 15 (4). The resulting number shall be the annual award the student is eligible for 16 under subsection (1) of this section. 17 (3) (a) The authority shall commit to provide to each eligible high school student 18 graduating from high school before June 30, 1999, and achieving a score of at 19 least 15 on the American College Test, a supplemental award for the award 20 period beginning in the fall of 1999, based on the eligible high school 21 student's highest ACT score attained by the date of graduation from high 22 school. The amount of the supplemental award shall be determined as follows: 23 ACT Annual ACT Annual 24 Score Bonus Score Bonus 25 15 $21 22 $171 26 16 $43 23 $193 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 12 of 14 SB016320.100 - 1347 - XXXX Engrossed 17 $64 24 $214 1 18 $86 25 $236 2 19 $107 26 $257 3 20 $129 27 $279 4 21 $150 28 or above $300 5 Subsequent supplemental awards for eligible high school students graduating 6 before June 30, 1999, shall be determined in accordance with the provisions 7 of paragraph (b) of this subsection. 8 (b) The authority shall commit to provide to each eligible high school student 9 upon achievement after June 30, 1999, of an ACT score of at least 15 on the 10 American College Test a supplemental award based on the eligible high 11 school student's highest ACT score attained by the date of graduation from 12 high school. The amount of the supplemental award shall be determined as 13 follows: 14 ACT ACT 15 Score Amount Score Amount 16 15 $36 22 $286 17 16 $71 23 $321 18 17 $107 24 $357 19 18 $143 25 $393 20 19 $179 26 $428 21 20 $214 27 $464 22 21 $250 28 and above $500 23 The authority shall review the base amount of the supplemental award 24 beginning with the 2001-2002 academic year and each academic year 25 thereafter and may promulgate an administrative regulation to make 26 adjustments after considering the availability of funds. 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 13 of 14 SB016320.100 - 1347 - XXXX Engrossed (c) Beginning with the 2008-2009 academic year, the authority shall commit to 1 provide a supplemental award for achievement on examinations for Advanced 2 Placement or International Baccalaureate as defined in KRS 164.002 to an 3 eligible high school student whose family was eligible for free or reduced-4 price lunch for any year during high school enrollment. 5 1. The supplemental award for AP examination scores are as follows: 6 a. Two hundred dollars ($200) for each score of three (3); 7 b. Two hundred fifty dollars ($250) for each score of four (4); and 8 c. Three hundred dollars ($300) for each score of five (5). 9 2. The supplemental award for IB examination scores are as follows: 10 a. Two hundred dollars ($200) for each score of five (5); 11 b. Two hundred fifty dollars ($250) for each score of six (6); and 12 c. Three hundred dollars ($300) for each score of seven (7). 13 (d) Beginning with the 2013-2014 academic year, the authority shall commit to 14 provide a supplemental award for achievement on examinations for 15 Cambridge Advanced International as defined in KRS 164.002 to an eligible 16 high school student whose family was eligible for free or reduced-priced lunch 17 for any year during high school enrollment. The supplemental award for 18 Cambridge Advanced International examination scores are as follows: 19 1. Two hundred dollars ($200) for each score of "e"; 20 2. Two hundred fifty dollars ($250) for each score of "c" or "d"; and 21 3. Three hundred dollars ($300) for each score of "a*", "a", or "b". 22 (e) The authority shall promulgate administrative regulations establishing the 23 eligibility criteria and procedures for making a supplemental award to 24 Kentucky residents who are citizens, nationals, or permanent residents of the 25 United States and who graduate from a nonpublic secondary school not 26 certified by the Kentucky Board of Education and Kentucky residents who are 27 UNOFFICIAL COPY 22 RS SB 163/EN Page 14 of 14 SB016320.100 - 1347 - XXXX Engrossed citizens, nationals, or permanent residents of the United States and who obtain 1 a High School Equivalency Diploma within five (5) years of their high school 2 graduating class, and students under subsection (2)(c) of this section who do 3 not attend an accredited high school. 4