SENATE BILL NO. 383

A bill to create a financial aid program for certain residents of this state who attend certain occupational training programs in this state; to provide for the administration of the financial aid program; to provide for the promulgation of rules; and to provide for the powers and duties of certain state officers and entities.

the people of the state of michigan enact:

Sec. 1. (1) This act may be cited as the "Michigan achievement skills scholarship act".

(2) The Michigan achievement skills scholarship created in this act and, subject to appropriation, funded in article III of the state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891, is intended to provide scholarship assistance to certain residents of this state attending certain occupational training programs in this state, and to provide scholarship recipients with greater access to career training and skills needed to succeed in and meet the demands of this state's evolving economy and workforce.

Sec. 3. As used in this act:

(a) "Department" means the department of lifelong education, advancement, and potential.

(b) "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.

(c) "Qualified occupational training program" means that term as defined in section 13 of the Michigan reconnect grant recipient act, 2020 PA 68, MCL 390.1713, or a program that provides not less than 150 clock hours of instructional time over a period of not less than 8 weeks in career-oriented skilled trades instruction in maritime trades at an independent nonprofit institution incorporated in this state that is nationally accredited and approved for federal financial aid.

Sec. 5. (1) The department shall administer the Michigan achievement skills scholarship pursuant to this act, the Michigan achievement scholarship act, article III of the state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891, and the administrative procedures of the department.

(2) Payments for Michigan achievement skills scholarships are subject to appropriation under article III of the state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891.

Sec. 7. To receive the skills scholarship described in this act, a qualified occupational training program participant must meet all of the following:

(a) Be a resident of this state for at least the immediately preceding year.

(b) Have graduated with a high school diploma or certificate of completion or achieved a high school equivalency certificate in 2023 or after.

(c) Be a first-time enrollee at a qualified occupational training program within 15 months after high school graduation or attainment of a high school equivalency certificate or have received a Michigan achievement skills scholarship or Michigan achievement scholarship in a previous academic year. For the purposes of this subdivision, participation in a dual enrollment, early college, or other similar program while attending high school does not disqualify an individual from being considered a first-time enrollee.

(d) Not have previously earned an associate or baccalaureate degree.

(e) Not have previously earned a degree, certificate, or other credential using a skills scholarship awarded under this act.

(f) Timely complete a Michigan achievement skills scholarship application in a form and manner determined by the department.

Sec. 9. In connection with its administration of the Michigan achievement skills scholarship, the department shall do all of the following:

(a) Develop and implement a process by which those seeking to participate in the Michigan achievement skills scholarship as training institutions offering qualified occupational training programs must apply to the department.

(b) Approve as a qualified occupational training program a program for which an application is submitted under subdivision (a) that meets all of the criteria to qualify as a qualified occupational training program, and post these criteria to the department's website.

(c) Ensure that an applicant under subdivision (a) is first included on this state's eligible training provider list before each of the applicant's programs receives separate approval from the department as being a qualified occupational training program.

(d) Require that training institutions accepted to participate in the Michigan achievement skills scholarship comply with data requests from the department as a condition of continued participation. For purposes of this subdivision, the department shall require institutions operating apprenticeship programs subject to this section to provide data that tracks relevant work experience required to verify a program participant's status as an apprentice.

(e) Maintain on its website a list of all qualified occupational training program options available to potential skills scholarship recipients.

(f) Award skills scholarships in accordance with section 248a of the state school aid act of 1979, 1979 PA 94, MCL 388.1848a. A skills scholarship must not exceed the full amount of the tuition charged for the training program. A program participant may receive a skills scholarship under this act for a maximum of 2 academic years.

(g) Inform each recipient of a skills scholarship that subject to the eligibility requirements in the Michigan achievement scholarship act, the recipient will remain eligible for the Michigan achievement scholarship for a maximum of 5 years, less any period of eligibility used for a skills scholarship awarded under this act.

(h) By February 15 of each year, provide a written report, organized by qualified occupational training programs, to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director that includes the following information for the previous academic year:

(i) The number of program participants who qualified for a Michigan achievement skills scholarship.

(ii) The number of program participants who received a Michigan achievement skills scholarship.

(iii) The average Michigan achievement skills scholarship award per program participant, delineated by qualified occupational training program.

Sec. 11. It is the intent of the legislature that a training institution whose participants receive skills scholarships under this act will not make changes to scholarship or financial aid programs offered by that training institution that have the goal or net effect of shifting the cost burden of those programs to the program described in this act.

Sec. 13. (1) Except as otherwise provided in subsection (2), the department may promulgate rules to implement this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(2) The department shall not apply any program participant eligibility criteria not listed in section 7.

Enacting section 1. This act does not take effect unless Senate Bill No. 382 of the 103rd Legislature is enacted into law.