UNOFFICIAL COPY 25 RS BR 1514 Page 1 of 9 XXXX 2/17/2025 3:58 PM Jacketed AN ACT relating to career and technical education. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 ď˘Section 1. KRS 157.069 is amended to read as follows: 3 (1) As used in this section: 4 (a) "Administrative operations costs" means costs associated with the operations 5 and staffing of a state-operated area technology center, including but not 6 limited to personnel, facility costs, building utilities and maintenance, and 7 custodial and office supplies; 8 (b) "Approved career and technical education dual credit" means earning a grade 9 of "C" or higher for a Kentucky Department of Education-approved career 10 and technical education dual credit course equivalent to three (3) hours of 11 college credit; 12 (c) "Approved career and technical education pathway" means a four (4) course 13 career and technical education pathway approved by the Kentucky 14 Department of Education that provides a coherent, articulated sequence of 15 rigorous academic and career-related courses within a career and technical 16 education program area, and leads to an associate degree, an industry-17 recognized certificate or license, or a baccalaureate or higher degree; 18 (d) "Concentrator" means a student who has earned at least two (2) credits for no 19 less than two (2) courses in a single career and technical education pathway; 20 (e) "Converted career and technical education center" means a center providing 21 locally operated career and technical education for which a local district 22 assumed authority from the state for the management and control of the center 23 during the 2020-2021, 2021-2022, or 2022-2023 academic years; 24 (f) "General-cost career and technical education program" means a career and 25 technical education program or pathway in which high-cost technical 26 equipment, materials, or facilities are not required; 27 UNOFFICIAL COPY 25 RS BR 1514 Page 2 of 9 XXXX 2/17/2025 3:58 PM Jacketed (g) "General-cost full-time equivalents" means the total number of secondary 1 students enrolled in general-cost career and technical education programs, 2 multiplied by the number of hours those students are enrolled, and divided by 3 six (6) hours; 4 (h) "High-cost career and technical education program" means a career and 5 technical education program or pathway in which high-cost equipment, 6 materials, or facilities are required; 7 (i) "Locally operated career and technical education" means a district program 8 that provides secondary students with one (1) or more approved career and 9 technical education pathways; 10 (j) "State-operated area technology center" means a state-operated secondary 11 school facility with the primary purpose of offering approved career and 12 technical education pathways; 13 (k) "Supplemental funding" or "supplemental funds" means moneys appropriated 14 by the General Assembly to support qualifying locally operated career and 15 technical education centers and programs and state-operated area technology 16 centers and programs based on enrollment and incentive criteria; 17 (l) "Technical skill attainment" means earning an industry-recognized 18 certification, licensure, or credential as identified by the Kentucky Workforce 19 Innovation Board pursuant to KRS 158.6455(1)(e) or passing an end-of-20 program assessment for articulated postsecondary credit as designated by the 21 Kentucky Department of Education Office of Career and Technical 22 Education; 23 (m) "Weighted high-cost full-time equivalents" means the total number of 24 secondary students enrolled in high-cost career and technical education 25 programs, multiplied by the number of credit hours in which those students 26 are enrolled, divided by six (6) hours, and multiplied by one and one-half 27 UNOFFICIAL COPY 25 RS BR 1514 Page 3 of 9 XXXX 2/17/2025 3:58 PM Jacketed (1.5); and 1 (n) "Work-based learning program" means a cooperative education program, 2 internship, or registered apprenticeship within the student's chosen approved 3 career and technical education pathway. 4 (2) The Kentucky Department of Education shall provide funds from the department's 5 annual general fund appropriation to support the administrative operations costs of 6 state-operated area technology centers and converted career and technical education 7 centers. 8 (3) For converted career and technical education centers, beginning with fiscal year 9 2024-2025, the Kentucky Department of Education shall deduct from funds 10 designated for the state-operated area technology centers an amount equal to the 11 administrative operations costs of each converted career and technical education 12 center in the amount received by the center in the most recent fiscal year that the 13 center was under state management and control. The funds for each converted 14 career and technical education center shall be divided as follows: 15 (a) Seventy-five percent (75%) of the funds shall be sent to the local district that 16 has assumed management and control of the center; and 17 (b) Twenty-five percent (25%) of the funds shall be sent to the career and 18 technical education innovation and support fund established in subsection (4) 19 of this section. 20 (4) (a) There is hereby established in the State Treasury a restricted fund to be known 21 as the career and technical education innovation and support fund to receive 22 the funds allocated under subsection (3)(b) of this section. The fund shall 23 consist of moneys received from state appropriations, gifts, grants, and federal 24 funds. The fund shall be administered by the Office of Career and Technical 25 Education. Amounts deposited in the fund shall be used for: 26 1. Supporting innovation in new or emerging career fields; 27 UNOFFICIAL COPY 25 RS BR 1514 Page 4 of 9 XXXX 2/17/2025 3:58 PM Jacketed 2. Supporting state-operated area technology centers that may experience 1 hardship or natural disasters; 2 3. Personnel costs to provide technical assistance to local districts 3 providing locally operated career and technical education, including 4 technical assistance relating to the monitoring and oversight on the use 5 of supplemental career and technical education funding; and 6 4. Any other purposes reasonably related to improving student outcomes in 7 career and technical education. 8 (b) Notwithstanding KRS 45.229, fund amounts not expended at the close of a 9 fiscal year shall not lapse but shall be carried forward into the next fiscal year. 10 (5) Beginning with the 2024-2025 fiscal year and for each fiscal year thereafter, the 11 Kentucky Department of Education shall distribute to local districts providing 12 locally operated career and technical education and to state-operated area 13 technology centers all general funds designated as supplemental funds to career and 14 technical education programs, subject to the following: 15 (a) A local district providing locally operated career and technical education or a 16 state-operated area technology center shall maintain eligibility for receipt of 17 federal funding pursuant to the Strengthening Career and Technical Education 18 for the 21st Century Act, Pub. L. No. 115-224, to be eligible to receive 19 supplemental funding pursuant to this subsection; 20 (b) All supplemental funds distributed pursuant to this subsection shall be used to 21 improve student outcomes in career and technical education pathways for 22 students in grades nine (9) through twelve (12), including but not limited to 23 student supplies, resources, materials, and equipment that is designed for 24 enhanced quality of instruction in a career and technical education pathway, 25 the purchase and maintenance of industry standard equipment, assisting 26 students with achieving technical skill attainment, and supporting career and 27 UNOFFICIAL COPY 25 RS BR 1514 Page 5 of 9 XXXX 2/17/2025 3:58 PM Jacketed technical student organization participation; 1 (c) 1. Supplemental funds for career and technical education shall be divided 2 and allocated to each local district providing locally operated career and 3 technical education and to each state-operated area technology center, 4 with seventy-five[sixty] percent (75%)[(60%)] dedicated for enrollment-5 based funding and twenty-five[forty] percent (25%)[(40%)] for 6 incentive-based funding. 7 2. The seventy-five[sixty] percent (75%)[(60%)] enrollment-based funding 8 shall be based on a statewide full-time equivalent calculation of the total 9 weighted high-cost full-time equivalents and general-cost full-time 10 equivalents during the prior school year, subject to the following: 11 a. The department shall then distribute the enrollment-based funds 12 for each state-operated area technology center or local district 13 providing locally operated career and technical education based on 14 the center's or district's proportional share of the combined 15 weighted high-cost full-time equivalents and general-cost full-time 16 equivalents of the prior year; 17 b. The department shall distribute the state-operated area technology 18 center fund portion to the respective state-operated area 19 technology centers and the local district fund portion to the 20 respective local districts; and 21 c. The department shall classify qualifying programs as either a high-22 cost career and technical education program or a general-cost 23 career and technical education program. 24 3. The twenty-five[forty] percent (25%)[(40%)] incentives-based funding 25 shall be based on an annual statewide calculation of the total number of 26 qualifying student incentives. The calculation shall only use students 27 UNOFFICIAL COPY 25 RS BR 1514 Page 6 of 9 XXXX 2/17/2025 3:58 PM Jacketed that are in grade twelve (12) and use the total qualifying student 1 incentives earned by those students during secondary education at a 2 state-operated area technology center or within a local district. Once a 3 student has been included in a year's calculation, that student shall not 4 be included in any subsequent year's calculation, subject to the 5 following: 6 a. The first qualifying student incentive[incentives] for students in 7 their grade twelve (12) year shall be attained if the student 8 reached the designation of a concentrator. Upon reaching the 9 designation, a student may attain a second qualifying student 10 incentive by[include]: 11 i. [Reaching the designation of a concentrator; 12 ii. ]Technical skill attainment; 13 ii.[iii.] Completing a required number of hours or achieving a 14 benchmark within a work-based learning program; or[and] 15 iii.[iv.] Earning an approved career and technical education 16 dual credit; 17 b. The incentives in subdivision a. of this subparagraph shall be 18 allotted to the state-operated area technology center or local 19 district in which it was earned. Each type of incentive shall only be 20 counted once per student at state-operated area technology centers 21 and once per student at local districts for a maximum of two 22 (2)[four (4)] incentives per student at state-operated area 23 technology centers and two (2)[four (4)] incentives at local 24 districts throughout their secondary career and technical education. 25 For incentive criteria that is achieved more than once at state-26 operated area technology centers, the incentive shall be counted 27 UNOFFICIAL COPY 25 RS BR 1514 Page 7 of 9 XXXX 2/17/2025 3:58 PM Jacketed for the state-operated area technology center where it was first 1 achieved. For incentive criteria that is achieved more than once at 2 local districts, the incentive shall be counted for the local district 3 where it was first achieved; 4 c. The department shall distribute incentives-based funds for each 5 state-operated area technology center or local district based on the 6 center's or district's proportional share of the combined number of 7 qualifying student incentives achieved by students in grade twelve 8 (12) at a state-operated area technology center or within a local 9 district throughout their secondary career and technical education. 10 The incentives-based funds shall be distributed to the state-11 operated area technology center or local district in which the 12 incentive was achieved; and 13 d. The department shall distribute the state-operated area technology 14 center fund portion to the respective state-operated area 15 technology centers and the local district fund portion to the 16 respective local districts; 17 (d) There shall be no mid-year adjustment to the allocation of career and technical 18 education supplemental funding for a center or local district; and 19 (e) Notwithstanding the restriction in paragraph (b) of this subsection, a district 20 may submit a waiver request to the Office of Career and Technical Education 21 to use a portion of its allocation of supplemental funds for career and 22 technical education programming for students in grades (5) through eight (8). 23 The district shall submit a request which details the district's plan for career 24 and technical education programming for students in grades five (5) through 25 eight (8). In reviewing the request, the Office of Career and Technical 26 Education shall consider whether: 27 UNOFFICIAL COPY 25 RS BR 1514 Page 8 of 9 XXXX 2/17/2025 3:58 PM Jacketed 1. The district details a plan for orientation and exploration of broad-based 1 industries by giving students knowledge and experience regarding 2 careers within these industries and exploratory or hands-on skills used in 3 the industry; 4 2. There is direct alignment between middle and secondary career and 5 technical education pathways within the requesting district; and 6 3. Such designation of supplemental funding for programming for students 7 in grades five (5) through eight (8) does not have a significant 8 detrimental impact on the programming available for students in 9 secondary grades. 10 (6) The Office of Career and Technical Education shall monitor and provide oversight 11 of state funds distributed pursuant to this section to ensure that the use of funding 12 by eligible recipients meets the approved criteria as described in this section. 13 (7) The Kentucky Board of Education shall promulgate administrative regulations in 14 accordance with KRS Chapter 13A as may be needed in the administration of this 15 section and for disbursement of moneys. 16 (8) The Kentucky Department of Education shall publish on the department's website: 17 (a) The list of all career and technical education programs available to students 18 and the program's designation as a high-cost career and technical education 19 program or as a general-cost career and technical education program; 20 (b) A report of the supplemental funding amounts provided to each local district 21 and to each state-operated area technology center, including an explanation of 22 the amount designated as enrollment-based funding and as incentives-based 23 funding; and 24 (c) A report of the administrative operations costs provided to each state-operated 25 area technology center and to each converted career and technical education 26 center, as well as the amount contributed toward the career and technical 27 UNOFFICIAL COPY 25 RS BR 1514 Page 9 of 9 XXXX 2/17/2025 3:58 PM Jacketed education innovation and support fund. 1