HOUSE BILL NO. 6378

September 20, 2022, Introduced by Reps. Harris and Posthumus and referred to the Committee on Appropriations.

A bill to establish a future educators scholarship program for certain college students who commit to pursuing careers in education; to prescribe conditions for repayment of the scholarships in certain circumstances; to provide for the administration of the scholarship program; and to provide for the powers and duties of certain state officers and entities.

the people of the state of michigan enact:

Sec. 1. This act may be cited as the "future educators scholarship act".

Sec. 2. As used in this act:

(a) "Department" means the department of education.

(b) "Eligible educator preparation program" means an institution of higher education that meets all of the following:

(i) Is a public or nonpublic institution of higher education in this state.

(ii) Has an established school of education with an educator preparation program approved by the department.

(iii) Enrolls 1 or more future educator scholarship recipients.

(iv) Has not increased tuition and fee rates above the limitations described in section 265 of the school aid act of 1979, 1979 PA 94, MCL 388.1865.

(c) "High school equivalency certificate" means that term as defined in section 4 of the school aid act of 1979, 1979 PA 94, MCL 388.1604.

Sec. 3. The future educators scholarship program is created, to be administered by the department. It is the intent of the legislature that funds appropriated for use in this program be used to award scholarships to offset tuition costs for individuals who are working toward earning initial teacher certifications.

Sec. 4. To establish initial eligibility for a scholarship awarded under this act, an individual must meet all of the following conditions by the date of enrollment described in subdivision (b):

(a) Have graduated from high school with a diploma or certificate of completion or achieved a high school equivalency certificate.

(b) Be admitted to an eligible educator preparation program and be in the first semester of that program; be working toward a teacher certification; and be enrolled in enough coursework to earn at least 24 credits in an academic year or the equivalent of full-time participation for individuals enrolled in an alternative certification program, as defined by the department.

(c) Not have previously earned a teacher certification.

(d) Timely complete a grant application in a form and manner prescribed by the department of treasury.

(e) Timely file the Free Application for Federal Student Aid for the enrollment period described in subdivision (b).

(f) Timely apply for all available gift aid for the enrollment period described in subdivision (b).

(g) Agree to repay any funds received from scholarships awarded under this act if the individual does not maintain enrollment in an eligible educator preparation program, the individual does not successfully complete an eligible educator preparation program, or the individual does not complete the work requirement described in section 9.

(h) Have a high school or college grade point average of at least 3.0.

(i) Be a resident of this state, as determined for purposes of the Free Application for Federal Student Aid.

Sec. 5. To establish continuing eligibility for a scholarship awarded under this act, an individual must meet all of the following conditions:

(a) Maintain continuous enrollment in an eligible educator preparation program and earn at least 24 credits in an academic year or the equivalent of full-time participation for individuals enrolled in an alternative certification program, as defined by the department, excluding any period of time missed due to a medical or other emergency, as determined by the department of treasury.

(b) Maintain satisfactory academic progress, including a grade point average of at least 3.0, in courses provided by the eligible educator preparation program and meet requirements established by the eligible educator preparation program.

(c) Participate in relevant academic and career advising programs offered by the eligible educator preparation program.

(d) Timely file the Free Application for Federal Student Aid for each academic year in which the individual receives a scholarship under this act.

(e) Timely apply for all available gift aid for each academic year in which the individual applies for a scholarship under this act.

(f) Maintain residency in this state, as determined for purposes of the Free Application for Federal Student Aid.

Sec. 6. A scholarship awarded under this act must not exceed $10,000.00 per academic year or the cost of tuition at the in-district resident rate plus other required fees, as determined by the department of treasury, at the eligible educator preparation program attended, whichever is less.

Sec. 7. Scholarships awarded under this act must be distributed to eligible educator preparation programs on behalf of an eligible recipient on a timeline determined by the department of treasury.

Sec. 8. Pending available funds, applicants may renew a scholarship award for up to 3 years, or until program completion, whichever comes first.

Sec. 9. To be an eligible recipient of a scholarship awarded under this act, an individual must pledge to work as a certified teacher in a public school, a nonpublic school, or a qualifying public preschool program in this state and must meet 1 of the following work requirements:

(a) For a scholarship recipient who received an award for 1 academic year, 3 years of work as a certified teacher in a public school, a nonpublic school, or a qualifying public preschool program in this state.

(b) For a scholarship recipient who received an award for 2 academic years, 4 years of work as a certified teacher in a public school, a nonpublic school, or a qualifying public preschool program in this state.

(c) For a scholarship recipient who received an award for 3 academic years, 5 years of work as a certified teacher in a public school, a nonpublic school, or a qualifying public preschool program in this state.

(d) For a scholarship recipient who works in a critical needs district, 3 years of work as a certified teacher. As used in this subdivision, "critical needs district" means a district with a median household income in the lowest quartile in each prosperity region, as determined by the department.

Sec. 10. If a recipient of a scholarship awarded under this act does not maintain enrollment in an eligible educator preparation program as required under section 5(a), does not successfully complete an eligible educator preparation program, or does not meet the work requirement described in section 9, all scholarship amounts received under this act convert to a 0% interest loan that must be repaid to this state within 10 years. The amount of repayment must be reduced proportionate to the number of years worked in schools or qualifying public preschool programs in this state as a certificated teacher out of 5 years. The department of treasury shall develop guidance to enforce this section.

Sec. 11. An individual may not concurrently receive funding through programs funded under this act and grow your own programs funded under section 27b of the school aid act of 1979, 1979 PA 94, MCL 388.1627b.

Sec. 12. If the amount appropriated for awarding scholarships under this act is not sufficient to fully fund those awards, it is the intent of the legislature that there be appropriated from the educator fellowship public provider fund created in section 27d of the school aid act of 1979, 1979 PA 94, MCL 388.1627d, or the educator fellowship private provider fund created in section 27e of the school aid act of 1979, 1979 PA 94, MCL 388.1627e, as applicable, the amount necessary to fully fund these programs. The state budget director shall provide notification to the house and senate appropriations subcommittees on K to 12 school aid and the house and senate fiscal agencies for any additional appropriation described in this section.

Sec. 13. It is the intent of the legislature that, notwithstanding section 17b of the school aid act of 1979, 1979 PA 94, MCL 388.1617b, the department of treasury shall make payments under this act on a schedule determined by the department of treasury.