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AN ACT relating to teacher scholarships. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 164.769 is amended to read as follows: 3
(1) It is the intent of the General Assembly to establish a teacher scholarship program 4
to assist highly qualified individuals to become certified Kentucky teachers and 5
render teaching service in Kentucky schools. 6
(2) For purposes of this section, the terms listed below shall have the following 7
meanings: 8
(a) "Critical shortage area" means an understaffing of teachers in particular 9
subject matters at the secondary level, in grade levels, or in geographic 10
locations at the elementary and secondary level, as determined by the 11
commissioner of education in consultation with the authority. The 12
commissioner and the authority may use any source considered reliable, 13
including but not limited to local education agencies, to identify the critical 14
shortage areas; 15
(b) "Dual credit" has the same meaning as in KRS 158.007; 16
(c) "Eligible program of study" means an undergraduate or graduate program of 17
study which is preparatory to teacher certification; 18
(d) ["Expected family contribution" means the amount that a student and his 19
family are expected to contribute toward the cost of the student's education 20
determined by applying methodology set forth in 20 U.S.C. sec. 1087 kk to 21
1087 vv; 22
(e) ]"Participating institution" means an institution of higher education located in 23
Kentucky which offers an eligible program of study and has in force an 24
agreement with the authority providing for administration of this program; 25
(e)[(f)] "Qualified teaching service" means teaching the major portion of each 26
school day for at least seventy (70) days each semester in a public school of 27 UNOFFICIAL COPY 25 RS BR 1141
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the Commonwealth or a private school certified pursuant to KRS 156.160(3), 1
except that an individual having a disability defined by Title II of the 2
Americans with Disabilities Act (42 U.S.C. secs. 12131 et seq.) or serious and 3
extended illness, whose disability or illness, certified by a licensed physician, 4
prevents that individual from teaching a major portion of each school day, 5
shall be deemed to perform qualified teaching service by teaching the 6
maximum time permitted by the attending physician; 7
(f)[(g)] "Semester" means a period of about eighteen (18) weeks, which usually 8
makes up one-half (1/2) of a school year or one-half (1/2) of a participating 9
institution's academic year; and 10
(g)[(h)] "Summer term" means an academic period consisting of one (1) or more 11
sessions of instruction between a spring and a fall semester. 12
(3) The authority may, to the extent of appropriations and other funds available to it 13
pursuant to subsection (9) of this section, award teacher scholarships to persons 14
eligible under subsection (4) of this section, who initially demonstrate financial 15
need in accordance with standards and criteria established by the authority or 16
received teacher scholarships pursuant to this section prior to July 1, 1996. Each 17
teacher scholarship shall be evidenced by a promissory note that requires repayment 18
or cancellation pursuant to subsection (6) of this section. 19
(4) Kentucky residents who are United States citizens and enrolled or accepted for 20
enrollment in an eligible program of study at a participating institution shall be 21
eligible to apply for and be awarded teacher scholarships. Teacher scholarships 22
shall first be awarded to highly qualified eligible students who meet standards and 23
requirements established by the Education Professional Standards Board pursuant 24
to KRS 161.028 for admission to a teacher education program at a participating 25
institution in pursuit of initial teacher certification. If funds are not depleted after 26
awarding teacher scholarships to students who meet the preceding criteria, then 27 UNOFFICIAL COPY 25 RS BR 1141
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awards shall be made to any otherwise eligible students. 1
(5) The authority shall establish, by administrative regulation, the maximum amount of 2
scholarship to be awarded for each semester and summer term under this section. 3
The amount of each scholarship to be awarded shall not exceed the applicant's total 4
cost of education minus other financial assistance received or expected to be 5
received by the applicant during the academic period. 6
(6) (a) The authority shall disburse teacher scholarships to eligible students who 7
agree to render qualified teaching service as certified teachers, and are 8
unconditionally admitted and enrolled in an eligible program of study. 9
(b) A teacher scholarship shall not be awarded or a promissory note cancellation 10
shall not be granted to any person who is in default on any obligation to the 11
authority under any program administered by the authority pursuant to KRS 12
164.740 to 164.785 until financial obligations to the authority are satisfied, 13
except that ineligibility for this reason may be waived by the authority for 14
cause. 15
(c) Recipients shall render one (1) semester of qualified teaching service for each 16
semester or summer term of scholarship received, except that recipients who 17
teach in a critical shortage area designated by the authority or teach dual 18
credit coursework in a certified Kentucky high school shall render one (1) 19
semester of qualified teaching service as repayment for two (2) semesters or 20
summer terms of scholarships received. Upon completion of each semester of 21
qualified teacher service, the authority shall cancel the appropriate number of 22
promissory notes. 23
(d) If the recipient of a teacher scholarship fails to complete an eligible program 24
of study at a participating institution or fails to render qualified teaching 25
service in any semester following certification or recertification, unless the 26
failure is temporarily waived for cause by the authority, the recipient shall 27 UNOFFICIAL COPY 25 RS BR 1141
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immediately become liable to the authority for repayment of the sum of all 1
outstanding promissory notes and accrued interest. Persons liable for 2
repayment of scholarships under this paragraph shall be liable for interest 3
accruing from the dates on which the teacher scholarships were disbursed. 4
(e) Recipients who have outstanding loans or scholarships under KRS 156.611, 5
156.613, 164.768, or 164.770 respectively, and who render qualified teaching 6
service, shall have their notes canceled in accordance with subsection (6)(c) of 7
this section. 8
(f) The authority shall establish, by administrative regulation, the terms and 9
conditions for the award, cancellation, and repayment of teacher scholarships 10
including, but not limited to, the selection criteria, eligibility for renewal 11
awards, amount of scholarship payments, deferments, the rate of repayment, 12
and the interest rate thereon. 13
(g) Notwithstanding any other statute to the contrary, the maximum interest rate 14
applicable to repayment of a promissory note under this section shall be eight 15
percent (8%) per annum, except that if a judgment is rendered to recover 16
payment, the judgment shall bear interest at the rate of five percent (5%) 17
greater than the rate actually charged on the promissory note. 18
(7) A repayment obligation imposed by this section shall not be voidable by reason of 19
the age of the recipient at the time of receiving the teacher scholarship. 20
(8) Failure to meet repayment obligations imposed by this section shall be cause for the 21
revocation of a person's teaching certificate, subject to the procedures set forth in 22
KRS 161.120. 23
(9) All moneys repaid to the authority under this section shall be added to the 24
appropriations made for purposes of this section, and the funds and unobligated 25
appropriations shall not lapse. 26
(10) The authority may execute appropriate contracts and promissory notes for 27 UNOFFICIAL COPY 25 RS BR 1141
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administering this section. 1
(11) Notwithstanding any other statute to the contrary, if available funds are insufficient 2
for all requested scholarships for eligible applicants during any fiscal year, the 3
authority shall give priority consideration to eligible applicants who previously 4
received teacher scholarships and, until June 30, 2018, to loan forgiveness for 5
teachers who have outstanding loan balance eligibility for Best in Class loans issued 6
prior to June 30, 2008. If funds are insufficient to make all requested renewal 7
scholarships to eligible applicants, the authority shall reduce all scholarship awards 8
to the extent necessary to provide scholarships to all qualified renewal applicants. 9
If, after awarding all eligible renewal applicants, funds are not depleted, initial 10
applications shall be ranked according to regulatory selection criteria, which may 11
include [expected family contribution and ]application date, and awards shall be 12
made to highly qualified applicants until funds are depleted. 13
(12) The authority shall submit a report on the number of teacher scholarships provided 14
in each fiscal year, the program of study in which recipients are enrolled, recipient 15
retention rates, total number of applications, and scholarship recruitment strategies 16
to the Interim Joint Committee on Education by December 1 of each year. 17
Section 2. KRS 164.7889 is amended to read as follows: 18
Notwithstanding the provisions of KRS 164.7535 and 164.785 to the contrary, if 19
sufficient funds are available, the authority shall do one (1) of the following: 20
(1) Promulgate an administrative regulation to increase the maximum amount available 21
under the grant programs to each student, up to the prevailing tuition rate charged 22
by the regional public universities for full-time enrollment in an undergraduate 23
program, but in no event shall a student receive more than the student's cost of 24
education less [expected family contribution and ]other anticipated student financial 25
assistance; 26
(2) Promulgate an administrative regulation to increase the average income level for 27 UNOFFICIAL COPY 25 RS BR 1141
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qualification for the grant programs; or 1
(3) Promulgate an administrative regulation that increases both the maximum amount 2
available under the grant programs, and increases the average income level for 3
qualification for the grant programs. 4