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AN ACT relating to 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
(b)[(c)] "Eligible program of study" means an undergraduate or graduate 17
program of 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
(c)[(e)] "Participating institution" means an institution of higher education 23
located in Kentucky which offers an eligible program of study and has in 24
force an agreement with the authority providing for administration of this 25
program;[ 26
(f) "Qualified teaching service" means teaching the major portion of each school 27 UNOFFICIAL COPY 25 RS BR 174
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day for at least seventy (70) days each semester in a public school of the 1
Commonwealth or a private school certified pursuant to KRS 156.160(3), 2
except that an individual having a disability defined by Title II of the 3
Americans with Disabilities Act (42 U.S.C. secs. 12131 et seq.) or serious and 4
extended illness, whose disability or illness, certified by a licensed physician, 5
prevents that individual from teaching a major portion of each school day, 6
shall be deemed to perform qualified teaching service by teaching the 7
maximum time permitted by the attending physician;] 8
(d) [(g)] "Semester" means a period of about eighteen (18) weeks, which usually 9
makes up one-half (1/2) of a school year or one-half (1/2) of a participating 10
institution's academic year; and 11
(e)[(h)] "Summer term" means an academic period consisting of one (1) or more 12
sessions of instruction between a spring and a fall semester. 13
(3) The authority may[, to the extent of appropriations and other funds available to it 14
pursuant to subsection (9) of this section,] award teacher scholarships to persons 15
eligible under subsection (4) of this section[,] who initially demonstrate financial 16
need in accordance with standards and criteria established by the authority or 17
received teacher scholarships pursuant to this section prior to July 1, 1996.[ Each 18
teacher scholarship shall be evidenced by a promissory note that requires repayment 19
or cancellation pursuant to subsection (6) of this section.] 20
(4) Kentucky residents who are United States citizens and enrolled or accepted for 21
enrollment in an eligible program of study at a participating institution shall be 22
eligible to apply for and be awarded teacher scholarships. Teacher scholarships 23
shall first be awarded to highly qualified eligible students who meet standards and 24
requirements established by the Education Professional Standards Board pursuant 25
to KRS 161.028 for admission to a teacher education program at a participating 26
institution in pursuit of initial teacher certification.[ If funds are not depleted after 27 UNOFFICIAL COPY 25 RS BR 174
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awarding teacher scholarships to students who meet the preceding criteria, then 1
awards shall be made to any otherwise eligible students.] 2
(5) The authority shall establish, by administrative regulation, the maximum amount of 3
scholarship to be awarded for each semester and summer term under this section, 4
which shall not exceed the highest in-state tuition rate for a teacher preparation 5
program at a Kentucky public university. The amount of each scholarship to be 6
awarded shall not exceed the applicant's total cost of education minus other 7
financial assistance received or expected to be received by the applicant during the 8
academic period. 9
(6) [(a) ]The authority shall disburse teacher scholarships to eligible students who 10
[agree to render qualified teaching service as certified teachers, and ]are 11
unconditionally admitted and enrolled in an eligible program of study.[ 12
(b) A teacher scholarship shall not be awarded or a promissory note cancellation shall 13
not be granted to any person who is in default on any obligation to the authority 14
under any program administered by the authority pursuant to KRS 164.740 to 15
164.785 until financial obligations to the authority are satisfied, except that 16
ineligibility for this reason may be waived by the authority for cause. 17
(c) Recipients shall render one (1) semester of qualified teaching service for each 18
semester or summer term of scholarship received, except that recipients who teach 19
in a critical shortage area designated by the authority or teach dual credit 20
coursework in a certified Kentucky high school shall render one (1) semester of 21
qualified teaching service as repayment for two (2) semesters or summer terms of 22
scholarships received. Upon completion of each semester of qualified teacher 23
service, the authority shall cancel the appropriate number of promissory notes. 24
(d) If the recipient of a teacher scholarship fails to complete an eligible program of 25
study at a participating institution or fails to render qualified teaching service in any 26
semester following certification or recertification, unless the failure is temporarily 27 UNOFFICIAL COPY 25 RS BR 174
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waived for cause by the authority, the recipient shall immediately become liable to 1
the authority for repayment of the sum of all outstanding promissory notes and 2
accrued interest. Persons liable for repayment of scholarships under this paragraph 3
shall be liable for interest accruing from the dates on which the teacher scholarships 4
were disbursed. 5
(e) Recipients who have outstanding loans or scholarships under KRS 156.611, 6
156.613, 164.768, or 164.770 respectively, and who render qualified teaching 7
service, shall have their notes canceled in accordance with subsection (6)(c) of this 8
section. 9
(f) The authority shall establish, by administrative regulation, the terms and conditions 10
for the award, cancellation, and repayment of teacher scholarships including, but 11
not limited to, the selection criteria, eligibility for renewal awards, amount of 12
scholarship payments, deferments, the rate of repayment, and the interest rate 13
thereon. 14
(g) Notwithstanding any other statute to the contrary, the maximum interest rate 15
applicable to repayment of a promissory note under this section shall be eight 16
percent (8%) per annum, except that if a judgment is rendered to recover payment, 17
the judgment shall bear interest at the rate of five percent (5%) greater than the rate 18
actually charged on the promissory note. 19
(7) A repayment obligation imposed by this section shall not be voidable by reason of 20
the age of the recipient at the time of receiving the teacher scholarship. 21
(8) Failure to meet repayment obligations imposed by this section shall be cause for the 22
revocation of a person's teaching certificate, subject to the procedures set forth in 23
KRS 161.120. 24
(9) All moneys repaid to the authority under this section shall be added to the 25
appropriations made for purposes of this section, and the funds and unobligated 26
appropriations shall not lapse. 27 UNOFFICIAL COPY 25 RS BR 174
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(10) The authority may execute appropriate contracts and promissory notes for 1
administering this section.] 2
(7)[(11)] Notwithstanding any other statute to the contrary, if available funds are 3
insufficient for all requested scholarships for eligible applicants during any fiscal 4
year, the authority shall give priority consideration to eligible applicants who 5
previously received teacher scholarships[ and, until June 30, 2018, to loan 6
forgiveness for teachers who have outstanding loan balance eligibility for Best in 7
Class loans issued prior to June 30, 2008]. If funds are insufficient to make all 8
requested renewal scholarships to eligible applicants, the authority shall reduce all 9
scholarship awards to the extent necessary to provide scholarships to all qualified 10
renewal applicants. If, after awarding all eligible renewal applicants, funds are not 11
depleted, initial applications shall be ranked according to regulatory selection 12
criteria, which may include [expected family contribution and ]application date, and 13
awards shall be made to highly qualified applicants until funds are depleted. 14
(8)[(12)] The authority shall submit a report on the number of teacher scholarships 15
provided in each fiscal year, the program of study in which recipients are enrolled, 16
recipient retention rates, total number of applications, and scholarship recruitment 17
strategies to the Legislative Research Commission for referral to the appropriate 18
Interim Joint Committee on Education by December 1 of each year. 19
(9) The repayment obligation of any student that received funds under this program 20
shall be null and void. 21
Section 2. KRS 164.786 is amended to read as follows: 22
(1) For purposes of this section: 23
(a) "Academic term" means the fall or spring academic semester; 24
(b) "Academic year" means July 1 through June 30 of each year; 25
(c) "Approved dual credit course" means a dual credit course developed in 26
accordance with KRS 164.098 and shall include: 27 UNOFFICIAL COPY 25 RS BR 174
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1. General education courses that meet the criteria outlined in the 1
statewide general education core approved by the Council on 2
Postsecondary Education; and 3
2. Career and technical education courses within a career pathway 4
approved by the Kentucky Department of Education that leads to an 5
industry-recognized credential; 6
(d) "Authority" means the Kentucky Higher Education Assistance Authority; 7
(e) "Dual credit" has the same meaning as in KRS 158.007; 8
(f) "Dual credit tuition rate ceiling" means one-third (1/3) of the per credit hour 9
tuition amount, rounded down to the nearest whole dollar, charged by the 10
Kentucky Community and Technical College System for in-state students; 11
(g) "Eligible high school student" means a student who: 12
1. Is a Kentucky resident; 13
2. Is enrolled in a Kentucky high school[ as a senior or junior]; 14
3. Has completed a thirty (30) minute college success counseling session; 15
and 16
4. Is enrolled, or accepted for enrollment, in an approved dual credit course 17
at a participating institution; 18
(h) "Participating institution" means a postsecondary institution that: 19
1. Has an agreement with the authority for the administration of the Dual 20
Credit Scholarship Program; 21
2. Charges no more than the dual credit tuition rate ceiling per credit hour, 22
including any additional fees, for any approved dual credit course it 23
offers to any Kentucky public or nonpublic high school student; 24
3. Does not charge any tuition or fees to an eligible high school student for 25
an approved dual credit course beyond what is paid by the Dual Credit 26
Scholarship Program when the course is not successfully completed; and 27 UNOFFICIAL COPY 25 RS BR 174
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4. Is a: 1
a. Kentucky Community and Technical College System institution; 2
b. Four (4) year Kentucky public college or university; or 3
c. Four (4) year private college or university that is accredited by the 4
Southern Association of Colleges and Schools and whose main 5
campus is located in Kentucky; and 6
(i) "Successfully completed" means a student receiving both secondary and 7
postsecondary credit upon completion of an approved dual credit course. 8
(2) To promote dual credit coursework opportunities at no cost to eligible Kentucky 9
high school students, the General Assembly hereby establishes the Dual Credit 10
Scholarship Program. 11
(3) In consultation with the Council on Postsecondary Education and the Kentucky 12
Department of Education[ and Labor Cabinet], the authority shall administer the 13
Dual Credit Scholarship Program and shall promulgate administrative regulations in 14
accordance with KRS Chapter 13A as may be needed for the administration of the 15
program. 16
(4) (a) Each high school shall apply to the authority for dual credit scholarship funds 17
for each eligible high school student. 18
(b) The authority may award a dual credit scholarship to an eligible high school 19
student for an academic term on a first-come, first-served basis by 20
application date, to the extent funds are available for that purpose[, except 21
that a scholarship shall be awarded to an eligible high school senior prior to 22
awarding an eligible high school junior]. 23
(c) An eligible high school student may receive a dual credit scholarship for a 24
maximum of: 25
1. Two (2) career and technical education[ successfully completed] dual 26
credit courses per academic year;[.] 27 UNOFFICIAL COPY 25 RS BR 174
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2. Two (2) general education dual credit courses over the junior and 1
senior year; and 2
3. For eligible high school students in a teaching and learning career 3
pathway, twenty (20) dual credit courses. 4
(d) The dual credit scholarship award amount shall be equal to the amount 5
charged by a participating institution, not to exceed the dual credit tuition rate 6
ceiling for each dual credit hour, except the scholarship amount shall be 7
reduced by fifty percent (50%) if the dual credit course is not successfully 8
completed by the student. 9
(e) Dual credit scholarship funds shall not be used for remedial or developmental 10
coursework. 11
(5) Each participating institution shall submit information each academic term to the 12
authority required for the administration of the scholarship as determined by the 13
authority. 14
(6) [Beginning August 1, 2017, and each year thereafter, ]The authority shall provide 15
an annual[a] report to the secretary of the Education and Labor Cabinet, the 16
president of the Council on Postsecondary Education, and the commissioner of the 17
Kentucky Department of Education to include: 18
(a) The number of students, by local school district and in total, served by the 19
Dual Credit Scholarship Program; and 20
(b) The number of dual credits earned by students by high school and in total. 21
(7) By May 31 of[, 2019, and] each year[ thereafter], the Kentucky Center for[ 22
Education and Workforce] Statistics, in collaboration with the authority, shall 23
publish data on the Dual Credit Scholarship Program's academic and workforce 24
outcomes. The center shall annually provide a report on the data to the Legislative 25
Research Commission for referral to the appropriate Interim Joint Committee on 26
Education. 27 UNOFFICIAL COPY 25 RS BR 174
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(8) (a) The Dual Credit Scholarship Program trust fund is hereby created as a trust 1
fund in the State Treasury to be administered by the Kentucky Higher 2
Education Assistance Authority for the purpose of providing scholarships 3
described in this section. 4
(b) The trust fund shall consist of state general fund appropriations, gifts and 5
grants from public and private sources, and federal funds. All moneys 6
included in the fund shall be appropriated for the purposes set forth in this 7
section. 8
(c) Any unallotted[unalloted] or unencumbered balances in the trust fund shall be 9
invested as provided in KRS 42.500(9). Income earned from the investments 10
shall be credited to the trust fund. 11
(d) Notwithstanding KRS 45.229, any fund balance at the close of the fiscal year 12
shall not lapse but shall be carried forward to the next fiscal year and 13
continuously appropriated only for the purposes specified in this section. 14
Section 3. KRS 164.787 is amended to read as follows: 15
(1) The General Assembly hereby establishes the Work Ready Kentucky Scholarship 16
Program to ensure that all Kentuckians who have not yet earned a postsecondary 17
degree have affordable access to an industry-recognized certificate, diploma, or 18
associate of applied science degree and, for students with intellectual disabilities 19
enrolled in comprehensive transition and postsecondary programs, affordable 20
access to meaningful credentials to prepare for competitive integrated employment. 21
(2) For purposes of this section: 22
(a) "Academic term" means a fall, spring, or summer academic term or other time 23
period specified in an administrative regulation promulgated by the authority; 24
(b) "Academic year" means July 1 through June 30 of each year; 25
(c) ["Approved dual credit course" means a dual credit course developed in 26
accordance with KRS 164.098 that is a career and technical education course 27 UNOFFICIAL COPY 25 RS BR 174
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within a career pathway approved by the Kentucky Department of Education 1
that leads to an industry-recognized credential; 2
(d) "Dual credit tuition rate ceiling" means the same as defined in 164.786; 3
(e) ]"Eligible institution" means an institution as defined in KRS 164.001 that: 4
1. Actively participates in the federal Pell Grant program; 5
2. Executes a contract with the authority on terms the authority deems 6
necessary or appropriate for the administration of its programs; and 7
3. [Charges no more than the dual credit tuition rate ceiling per credit hour, 8
including any additional fees, for any dual credit course it offers to any 9
Kentucky public or nonpublic high school student; and 10
4. ]Is a: 11
a. Kentucky Community and Technical College System institution; 12
b. Kentucky public university; or 13
c. College, university, or vocational-technical school that is 14
accredited by a recognized regional or national accrediting body 15
and licensed to operate at a site in Kentucky; 16
(d)[(f)] "Eligible program of study" means a program approved by the authority 17
that leads to an industry-recognized certificate, diploma, or associate of 18
applied science degree in one (1) of Kentucky's top five (5) high-demand 19
workforce sectors identified by the Kentucky Workforce Innovation Board 20
and the Education and Labor Cabinet or a program of study in a 21
comprehensive transition and postsecondary program that leads to a 22
credential, certificate, diploma, or degree; 23
(e)[(g)] "Fees" means mandatory fees charged by an eligible institution for 24
enrollment in a course, including but not limited to online course fees, lab 25
fees, and administrative fees. "Fees" does not include tools, books, or other 26
instructional materials that may be required for a course; and 27 UNOFFICIAL COPY 25 RS BR 174
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(f)[(h)] "Tuition" means the in-state tuition charged to all students as a condition 1
of enrollment in an eligible institution. 2
(3) In consultation with the Education and Labor Cabinet[, the Kentucky Department of 3
Education,] and the Council on Postsecondary Education, the Kentucky Higher 4
Education Assistance Authority shall administer the Work Ready Kentucky 5
Scholarship Program and promulgate administrative regulations in accordance with 6
KRS Chapter 13A as may be needed for the administration of the scholarship. 7
(4) [An eligible high school student shall: 8
(a) Be a Kentucky resident; 9
(b) Be enrolled in a Kentucky high school; 10
(c) Be enrolled, or accepted for enrollment, in an approved dual credit course at 11
an eligible institution; and 12
(d) Complete and submit a Work Ready Kentucky Scholarship dual credit 13
application to the authority. 14
(5) ]An eligible workforce student shall: 15
(a) Be a citizen or permanent resident of the United States; 16
(b) Be a Kentucky resident as determined by the eligible institution in accordance 17
with criteria established by the Council on Postsecondary Education for the 18
purposes of admission and tuition assessment; 19
(c) 1. Have earned a high school diploma or a High School Equivalency 20
Diploma or be enrolled in a High School Equivalency Diploma 21
program; or 22
2. For a student enrolled in a comprehensive transition and postsecondary 23
program, have received an alternative high school diploma described in 24
KRS 158.140(2)(b) or have attended a Kentucky public high school and 25
is a student with an intellectual disability as defined in 34 C.F.R. sec. 26
668.231; 27 UNOFFICIAL COPY 25 RS BR 174
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(d) Not have earned an associate's degree or higher level postsecondary degree; 1
(e) Complete the Free Application for Federal Student Aid for the academic year 2
in which the scholarship is awarded; 3
(f) Complete and submit a Work Ready Kentucky Scholarship application to the 4
authority; 5
(g) Enroll in an eligible program of study at an eligible institution; 6
(h) Not be enrolled in an ineligible degree program, such as a bachelor or 7
unapproved associate program, at any postsecondary institution; 8
(i) Following the first academic term scholarship funds are received, achieve and 9
maintain satisfactory academic progress as determined by the eligible 10
institution; and 11
(j) Not be in default on any program under Title IV of the federal act or any 12
obligation to the authority under any program administered by the authority 13
under KRS 164.740 to 164.7891 or 164.7894, except that ineligibility for this 14
reason may be waived by the authority for cause. 15
(5)[(6)] (a) [Beginning with the 2019-2020 academic year, ]The authority shall 16
award a Work Ready Kentucky Scholarship each academic term to any person 17
who meets the requirements of this section to the extent funds are available 18
for that purpose. 19
(b) The scholarship amount awarded to an eligible workforce student for an 20
academic term shall be the amount remaining after subtracting the student's 21
federal and state grants and scholarships from the maximum scholarship 22
amount. The maximum scholarship amount shall be the per credit hour in-23
state tuition rate at the Kentucky Community and Technical College System 24
multiplied by the number of credit hours in which the student is enrolled and 25
the fees charged to the student. The authority shall promulgate an 26
administrative regulation in accordance with KRS Chapter 13A to specify the 27 UNOFFICIAL COPY 25 RS BR 174
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maximum amount to be awarded for fees[, except that for the 2019-2020 1
academic year the amount awarded for fees shall not exceed four hundred 2
dollars ($400). 3
(c) The scholarship award for an eligible high school student shall be limited to 4
two (2) approved dual credit courses per academic year. The scholarship 5
amount awarded shall be equal to the amount charged by an eligible 6
institution for an approved dual credit course, in accordance with subsection 7
(2)(e)3. of this section]. 8
(6)[(7)] (a) Except as provided in paragraph (b) of this subsection, an eligible 9
workforce student's eligibility for the scholarship shall terminate upon the 10
earlier of: 11
1. Receiving the scholarship for a total of sixty (60) credit hours; or 12
2. Obtaining an associate's degree. 13
(b) For an eligible workforce student enrolled in a comprehensive transition and 14
postsecondary program, eligibility for the scholarship shall terminate upon the 15
earlier of completing the program or receiving the scholarship for up to nine 16
(9) academic terms within three (3) academic years. 17
(7)[(8)] The authority shall annually provide a report on the Work Ready Kentucky 18
Scholarship Program, prepared in collaboration with the Kentucky Center[Office] 19
for[ Education and Workforce] Statistics, to the secretary of the Education and 20
Labor Cabinet and the Legislative Research Commission for referral to the 21
appropriate Interim Joint Committee on Education that includes, by academic 22
term, academic year, institution, and workforce sector, the number of: 23
(a) Students served by the scholarship and the total amount disbursed; 24
(b) Credits, certificates, diplomas, and associate of applied science degrees earned 25
by students receiving the scholarship; and 26
(c) Students receiving the scholarship who are enrolled in a comprehensive 27 UNOFFICIAL COPY 25 RS BR 174
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transition and postsecondary program and credentials earned by those 1
students. 2
(8)[(9)] The authority shall report Work Ready Kentucky Scholarship program data to 3
the Kentucky Center[Office] for[ Education and Workforce] Statistics for analysis 4
of the program's success in meeting the goal of increasing skilled workforce 5
participation rates. 6
(9)[(10)] (a) The Work Ready Kentucky Scholarship fund is hereby created as a trust 7
fund in the State Treasury to be administered by the authority for the purpose 8
of providing scholarships as described in this section. 9
(b) The trust fund shall consist of state general fund appropriations, gifts and 10
grants from public and private sources, and federal funds. All moneys 11
included in the fund shall be appropriated for the purposes set forth in this 12
section. 13
(c) Any unallotted or unencumbered balances in the trust fund shall be invested 14
as provided in KRS 42.500(9). Income earned from the investments shall be 15
credited to the trust fund. 16
(d) Notwithstanding KRS 45.229, any fund balance at the close of the fiscal year 17
shall not lapse but shall be carried forward to the next fiscal year and 18
continuously appropriated only for the purposes specified in this section. 19
Section 4. The following KRS section is repealed: 20
164.771 Teacher Recruitment Student Loan Forgiveness Pilot Program -- Procedures -- 21
Repayment obligations -- Reporting requirements -- Fund. 22
Section 5. On and after June 30, 2026, funds appropriated to the Teacher 23
Recruitment Student Loan Forgiveness Pilot Program shall not lapse but shall be 24
disbursed though the teacher scholarship program established in Section 1 of this Act. 25
Section 6. Notwithstanding any provision of law to the contrary, the repayment 26
obligation of any student who received funds under the Teacher Recruitment Student 27 UNOFFICIAL COPY 25 RS BR 174
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Loan Forgiveness Pilot Program under KRS 164.771 shall be null and void 1
Section 7. Section 4 of this Act takes effect June 30, 2026. 2