Substitute For

SENATE BILL NO. 268

A bill to establish certain financial aid programs for certain residents of this state seeking associate degrees or industry-recognized certificates or credentials from certain educational and jobs training programs; to provide for the administration of the financial aid programs; and to prescribe certain powers and duties of certain state officers, agencies, and departments.

the people of the state of michigan enact:

PART 1

Sec. 1. (1) This act shall be known and may be cited as the "Michigan reconnect grant act".

(2) The reconnect program and reconnect initiative created respectively in parts 1 and 2 of this act are intended to provide last-dollar financial assistance to individuals age 25 and older seeking associate degrees or industry-recognized certificates or credentials; to provide those individuals with greater access to the education and skills needed to succeed in, and meet the demands of, an evolving economy in which there is continuing demand for a talented local workforce; and to achieve the goal of increasing the number of residents ages 25 to 64 with a college degree or skill certificate or credential to 60% by 2030.

Sec. 2. As used in this part:

(a) "Center" means the center for educational performance and information created in section 94a of the school aid act of 1979, 1979 PA 94, MCL 388.1694a.

(b) "Continuous enrollment" means enrollment in at least 2 semesters or the equivalent in terms or quarters, as determined by the department, during each 12-month period for a number of consecutive years. For purposes of this subdivision, the 2 or more semesters, terms, or quarters of enrollment within a 12-month period need not be consecutive.

(c) "Department" means the department of labor and economic opportunity.

(d) "Eligible institution" means a postsecondary educational institution that meets all of the following:

(i) Is an accredited public community college in this state.

(ii) Complies with applicable restraints on fee and tuition rate increases, if any, provided for in article II of the school aid act of 1979, 1979 PA 94, MCL 388.1801 to 388.1830.

(iii) Participates in quality assurance protocols established by the department for purposes of accurately tracking student outcomes described in section 3(g) and (h).

(iv) Submits a written report of all of the following information to the department by not later than October 1, 2020 and each year thereafter by not later than June 30:

(A) The institution's goals, expressed numerically, for student persistence and credential completion.

(B) An inventory of the institution's currently implemented strategies to improve student success outcomes, including guided pathways, proactive advising, and remediation. Regarding remediation, the report must detail the institution's current policy for determining whether a student is to be placed in developmental or credit-bearing courses.

(C) Policies for converting prior learning into community college credit wherever possible, including, but not limited to, prior learning demonstrated by coursework completed at the institution or any other postsecondary educational institution, including coursework completed in the distant past, or by college level equivalent courses, college level equivalent credit examinations, military training, education, or certification, or other relevant work or life experience. As used in this sub-subparagraph, "college level equivalent courses" and "college level equivalent credit examinations" mean those terms as described in section 1472 of the revised school code, 1976 PA 451, MCL 380.1472.

(v) By not later than January 1, 2022, for Michigan reconnect grant students who need academic remediation, provides accelerated courses aimed at enabling those students to raise their skills to college level and complete credit-bearing courses. To meet this criterion, an eligible institution must provide a remediation program that follows 1 of the following:

(A) A corequisite model under which a student concurrently enrolls in a developmental education course and a freshman-level course in the same subject area for each subject area needing remediation, to be completed concurrently. An institution providing a remediation program that follows the model described in this sub-subparagraph or sub-subparagraph (B) or (C) remains eligible whether or not it charges tuition or fees for the program.

(B) A compression model under which a student enrolls in 2 or more courses, either a combination of developmental and college-level courses or 2 or more levels of developmental courses, within a single semester, to be completed sequentially.

(C) A modularization model under which the content of 1 or more developmental courses is divided into discrete sections with a student assigned to complete only the modules that he or she needs to qualify for the associated college-level gateway course required in his or her program of study.

(D) An independent model of the institution's own choosing. To be eligible under this sub-subparagraph, the institution must provide the remediation program at no charge to students or the Michigan reconnect grant program.

(vi) Provides reasonable accommodations to Michigan reconnect grant students with disabilities as required by section 504 of title V of the rehabilitation act of 1973, 29 USC 794, and subtitle A of title II of the Americans with disabilities act of 1990, 42 USC 12131 to 12134.

(vii) Designates an individual employed by the institution as the institution's primary contact with the department for purposes of coordinating the administration of the Michigan reconnect grant program in accordance with this part.

(e) "Gift aid" means federal Pell grants under 20 USC 1070a and tuition incentive program benefits under section 256 of the school aid act of 1979, 1979 PA 94, MCL 388.1856. The term does not include any of the following:

(i) Student loans.

(ii) Work-study awards.

(iii) Qualified withdrawals made from education savings accounts to pay higher education expenses pursuant to the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.

(iv) Higher education expenses paid under the Michigan educational trust program, pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442.

(v) Higher education expenses paid under the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679.

(f) "Half-time student" means a student enrolled in at least 6 credit hours in an academic semester or the equivalent number of credit hours in a term or quarter, as determined by the department.

(g) "Industry-recognized certificate or credential" means a certificate or credential that is portable and is sought or accepted by multiple employers within an industry for purposes of recruitment, hiring, or promotion.

(h) "Michigan reconnect grant student" means a student admitted to and enrolled in an eligible institution and receiving a Michigan reconnect grant under this part.

(i) "Pell-eligible program" means a program eligible for grant funding under 20 USC 1070a.

Sec. 3. The Michigan reconnect grant program is created in the department for the purpose of providing Michigan reconnect grants to individuals eligible for those grants under sections 5 and 6. The department shall do all of the following:

(a) Develop and administer the program.

(b) Create and maintain a program website.

(c) Create and maintain a marketing campaign for the program.

(d) Operate a help desk for the program.

(e) Create and maintain a network of navigators to help Michigan reconnect grant students navigate the path to college, supporting but not supplanting the programming and assistance offered by community colleges.

(f) Provide Michigan reconnect grant students with information about skills in demand and related compensation in the local labor market.

(g) Partner with the center to report, in a user-friendly format, credential completion outcomes of Michigan reconnect grant students.

(h) To facilitate the reporting of valid and reliable longitudinal data under subdivision (g), ensure that all eligible institutions and other individuals and entities that participate in the implementation of the Michigan reconnect grant program use the unique statewide student identification codes issued by the center to track Michigan reconnect grant students in accordance with section 94a of the school aid act of 1979, 1979 PA 94, MCL 388.1694a.

(i) Select and convene a workgroup to study developmental education placement policies appropriate for eligible institutions, subject to all of the following:

(i) The workgroup must include representatives from the governor's office, the legislature, eligible institutions, the department of education, secondary schools, nonprofit organizations, and the business community.

(ii) Not later than 9 months after the effective date of this act, the workgroup shall provide the department with written recommendations that will assist the department in doing all of the following:

(A) Identify placement practices and policies that ensure students know when remediation is required, what types of academic and nonacademic supports will be available during remediation, and when they can expect to complete credit-bearing English and mathematics courses. Policies must emphasize placement in college-level courses for as many students as possible, with students requiring remediation being placed in appropriate programs. For purposes of this sub-subparagraph, on and after January 1, 2022, a remediation program is appropriate only if it complies with section 2(d)(v).

(B) Encourage eligible institutions across this state to adopt consistent placement polices.

(C) Clearly communicate sound policies for course placement and options for remedial courses.

(iii) Following the department's acceptance of the workgroup's recommendations under subparagraph (ii), the workgroup shall disband.

(j) Not later than 6 months after the effective date of this act, organize regional meetings of labor market stakeholders, including business organizations, trade unions, community colleges, Michigan works agencies, private training providers, and regional workforce and economic development representatives, to plan effective ways to ensure that occupational certificates provided by eligible institutions provide skills in demand in the regional labor market.

(k) As part of the department's responsibility to better connect education and training demands in the labor market with qualified degree, training, and apprenticeship programs, facilitate efforts by businesses, unions, and community colleges to effectively match skills provided with those in demand.

(l) By not later than February 1 each year, beginning in 2021, provide a written report detailing the progress of the Michigan reconnect grant program to the chairpersons of the standing committees and the appropriations subcommittees of the house of representatives and senate having jurisdiction over legislation or oversight of appropriations pertaining to workforce development. The report, at minimum, must include all of the following information for the immediately preceding academic year:

(i) The total amount of Michigan reconnect grants awarded to Michigan reconnect grant students.

(ii) The total amount of funding used for oversight and implementation of the Michigan reconnect grant program, including, but not limited to, total funding used for each of the following:

(A) Full-time equated positions.

(B) System improvements.

(C) Training costs.

(iii) The total amount of funding used for program support services, including, but not limited to, total funding used for each of the following:

(A) Full-time equated positions.

(B) Case management.

(C) Technical assistance.

(iv) The total amount of funding used for marketing.

(v) The total number of navigators employed by the department; the total number of navigators assigned to each eligible institution; and the number of Michigan reconnect grant students assigned to each navigator, organized by eligible institution.

(vi) The total number of eligible institutions to which Michigan reconnect grants were paid for credit to student accounts under section 7; a list of the names of those eligible institutions; and the total number and amount of Michigan reconnect grants that were awarded, organized by eligible institution.

(vii) The total number of individuals who applied for Michigan reconnect grants; the total number of individuals awarded those grants; and the total number of grant recipients who earned either an associate degree or industry-recognized certificate or credential.

(viii) Any other relevant information, as determined by the department.

Sec. 4. Subject to appropriation, the department may expend Michigan reconnect grant program money to award grants and support its other duties as described in section 3.

Sec. 5. To establish initial eligibility for a Michigan reconnect grant, an individual must meet all of the following conditions by the date of his or her enrollment described in subdivision (d):

(a) Be at least 25 years old.

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

(c) Have graduated from high school with a diploma or certificate of completion or achieved a high school equivalency certificate. As used in this subdivision, "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.

(d) Be admitted to, and enrolled as at least a half-time student in, a Pell-eligible program at an eligible institution leading to an associate degree or industry-recognized certificate or credential.

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

(f) Timely complete a Michigan reconnect grant application in a form and manner determined by the department.

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

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

Sec. 6. To establish continuing eligibility for a Michigan reconnect grant at an eligible institution, an individual must meet all of the following conditions:

(a) Continue to be a resident of this state.

(b) Except as otherwise provided in section 8(1), maintain continuous enrollment as at least a half-time student in a Pell-eligible program at an eligible institution leading to an associate degree or industry-recognized certificate or credential.

(c) Maintain a 2.0 grade point average in courses taken by the individual as a Michigan reconnect grant student.

(d) Participate in relevant academic and career advising programs offered by the eligible institution.

(e) Timely file the Free Application for Federal Student Aid for each academic year in which he or she applies for a Michigan reconnect grant.

(f) Timely apply for all available gift aid for each academic year in which he or she applies for a Michigan reconnect grant.

Sec. 7. Regardless of which community college district that a Michigan reconnect grant student resides in, if any, the amount of a Michigan reconnect grant must not exceed the cost of tuition at the in-district resident rate and mandatory fees at the eligible institution attended less all gift aid. Gift aid must be credited first to the student's tuition and mandatory fees. If awarded, Michigan reconnect grant money must be paid to the eligible institution for credit to the student's account.

Sec. 8. (1) A Michigan reconnect grant student who takes a leave of absence from an eligible institution due to a medical or family hardship may, subject to department approval, continue to receive the grant upon resuming the student's education at an eligible institution if the student continues to meet all applicable eligibility requirements. A leave of absence under this subsection does not disrupt the requirement of continuous enrollment under section 6(b) and does not count toward the 4-year limitation described in subsection (2)(a).

(2) A student is eligible for a Michigan reconnect grant until the occurrence of either of the following:

(a) Subject to subsection (1), 4 years have passed since the student became a Michigan reconnect grant student.

(b) The student has earned an associate degree. For purposes of this subdivision, a student who has earned a certificate or credential at an eligible institution remains eligible for the Michigan reconnect grant if he or she has not yet earned an associate degree.

(3) A student who participates in the Michigan reconnect grant program may transfer from 1 eligible institution to another eligible institution without loss of the grant so long as the student continues to meet all eligibility requirements for the grant.

PART 2

Sec. 10. As used in this part:

(a) "Department" and "gift aid" mean those terms as defined in section 2.

(b) "Qualified occupational training program" means a course of study approved by the department that, subject to subparagraph (vi), prepares students to earn an occupational credential that meets all of subparagraphs (i) to (v), as follows:

(i) Is industry recognized.

(ii) Is portable and recognized by multiple employers.

(iii) Prepares students to successfully pass all relevant certification examinations.

(iv) Is in demand in the regional labor market.

(v) Is in an occupational area serving manufacturing, construction, information technology, business management, or health care.

(vi) If the course of study is provided by an apprenticeship program, the program must be registered with the United States Department of Labor under the national apprenticeship act, 29 USC 50 et seq.

(c) "Qualified private training institution" means either of the following:

(i) A for-profit or nonprofit private organization in this state that provides occupational training, but not 4-year postsecondary degrees, that is included on this state's eligible training provider list located within the department pursuant to 20 CFR 680.410.

(ii) A consortium of businesses in this state offering occupational training that guarantees employment for those who successfully complete the training and is included on this state's eligible training provider list located within the department pursuant to 20 CFR 680.410.

Sec. 11. The reconnect private training learning initiative is created in the department for the purpose of providing skills scholarships to individuals eligible for those scholarships under this section. The department shall do all of the following:

(a) Develop and implement a process by which those seeking to participate in the reconnect private training learning initiative as a qualified private training institution 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 in section 10(b), 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 as a qualified private training institution under section 10(c), before each of the applicant's programs receives separate approval from the department as being a qualified occupational training program under section 10(b).

(d) Require that qualified private training institutions accepted to participate in the reconnect private training learning initiative comply with data requests from the department as a condition to continued participation. For purposes of this subdivision, the department shall require institutions operating apprenticeship programs subject to this part to provide data that tracks relevant work experience required to verify a student'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, subject to all of the following:

(i) A skills scholarship is a 1-time grant not to exceed $1,500.00 to contribute to tuition costs for a qualified occupational training program at a qualified private training institution, both of which are approved under this section, for a training program participant who meets the requirements of subparagraph (ii). A skills scholarship is available under this section only if the training program participant has applied for all other gift aid, if any is available, and must not cause the total amount of all gift aid, including a skills scholarship awarded under this section, if any, to exceed the full amount of the tuition charged for the training program.

(ii) To receive the skills scholarship described in subparagraph (i), a qualified occupational training program participant must meet all of the following:

(A) Be at least 25 years old.

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

(C) Have graduated from high school with a diploma or certificate of completion or achieved a high school equivalency certificate. As used in this sub-subparagraph, "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.

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

(E) Timely complete a reconnect private training learning initiative skills scholarship application in a form and manner determined by the department.

(F) Timely apply for all other gift aid, if any is available, for the qualified occupational training program.

(iii) The department may award skills scholarships under this section only until money appropriated to the reconnect private training learning initiative has been fully committed.

(g) Inform each recipient of a skills scholarship that he or she will remain eligible for the Michigan reconnect grant program created in section 3 to pursue an associate degree or occupational certificate upon completion of a certification course of a study at a qualified private training institution, and that community colleges will work to convert the coursework completed at a qualified private training institution into community college credit wherever possible.

Sec. 12. (1) The annual appropriation for the first full year of the reconnect private training learning initiative must not exceed $1,500,000.00.

(2) The department shall annually submit a written report to both houses of the legislature that explains the results of the initiative. The report must include all of the following for the immediately preceding year:

(a) The total number of applicants that sought approval as qualified private training institutions under section 11(a) to (c); the total number of institutions approved; a list of the names of those approved institutions; and the total number and amount of skills scholarships that were awarded by each approved institution.

(b) The total number of programs for which applications were submitted for approval as qualified occupational training programs under section 11(a) to (c); the total number of programs approved; a list of the names or short descriptions of each of those approved programs; and the total number and amount of skills scholarships that were awarded for each approved program.

(c) The total number of individuals who applied for skills scholarships under section 11(f)(ii); the total number of individuals awarded skills scholarships; and the total number of skills scholarships recipients who completed qualified occupational training programs.

(d) Any other relevant information, as determined by the department.

Enacting section 1. This act does not take effect unless House Bill No. 5580 of the 100th Legislature is enacted into law.