Amends TCA Title 49.

Present law provides for a Tennessee middle college scholarship, which is program, funded from lottery proceeds, operated by an eligible public two-year postsecondary institution in partnership with an LEA that permits students in the fall semester of their junior year in high school to enter the eligible public two-year postsecondary institution and to earn both a high school diploma and an associate degree in two years. This bill creates a similar program, the Tennessee technical middle college program, for high school students interested in receiving a high school diploma and a certificate or diploma from: (1) A Tennessee college of applied technology; or (2) A private, nonprofit technical school that has had its primary campus domiciled in this state for at least 75 consecutive years; is accredited by the Council on Occupational Education; and in addition to offering diploma, certificate, and associate degree programs, offers a baccalaureate degree through an articulation agreement with a regionally accredited postsecondary institution. The Tennessee higher education commission (THEC) will administer the program. For purposes of this bill and summary, the entities described above in (1) and (2) are "eligible postsecondary institutions." This bill sets out in detail various requirements for the program, including the following: (1) A high school student will be eligible to participate in the program, if the student, among other requirements, is enrolled in an eligible postsecondary institution: (A) That is partnering with the student's local education agency (LEA) to offer the technical middle college program to students beginning in the fall semester of the student's freshman year of high school; and (B) As a dual enrollment student; (2) To remain eligible for the program, a student must: (A) Meet all nonacademic requirements of the program; (B) Maintain a cumulative grade point average of 2.0 at the end of each semester for all courses attempted as part of the program; and (C) Be enrolled in the program full time; (3) A student who does not participate in the program in the fall semester of the student's freshman year of high school will be ineligible to participate in the program; (4) A student may participate in the program until the student has earned a certificate or diploma from an eligible postsecondary institution or completed high school, whichever occurs first. A student who receives a certificate or diploma from an eligible postsecondary institution upon completing the program will be ineligible for a Wilder-Naifeh technical skills grant or a Wilder-Naifeh reconnect grant; (5) A student who is participating in the program may receive a dual enrollment grant for each course offered by the eligible postsecondary institution that is attempted by the student for purposes of the program. The maximum award at an eligible postsecondary institution must not exceed the maintenance fees associated with the attempted average clock hours weighted by program participation among dual enrollment students. The award amount will be calculated annually using the maintenance fees established by the state university and community college system; (6) Subject to appropriation, TSAC will annually disburse grants to LEAs partnering with eligible postsecondary institutions to offer the program to its students to assist the LEAs in purchasing necessary supplies, equipment, and materials for the program. TSAC will determine the amount of grants awarded based, in part, on labor market data for the community served by the LEA applying for a grant, with a focus on the community's need for training opportunities in high-skill or high-wage fields or for coursework identified by TSAC's board of directors as high-need; (7) A student who successfully completes the program and receives both a high school diploma and certificate or diploma from an eligible postsecondary institution will be eligible to receive a Tennessee HOPE scholarship at the time of transfer to an eligible four-year postsecondary institution in pursuit of a baccalaureate degree if the student meets all academic and nonacademic requirements for the Tennessee HOPE scholarship and transfers to the eligible four-year postsecondary institution no later than 16 months after graduation from high school. A student who participates in the program, but does not successfully complete the program and does not receive a certificate or diploma from an eligible postsecondary institution will be eligible for a Tennessee HOPE scholarship upon enrolling in an eligible independent or public postsecondary institution no later than 16 months after completing high school, if the student meets other requirements as specified in this bill; (8) THEC and the board of regents will develop transfer pathways between Tennessee colleges of applied technology (TCAT) and community colleges. The board of regents must submit a report to the chairs of the education committees of the senate and house of representatives no later than December 1, 2022, identifying the transfer pathways that may be implemented beginning with the 2023-2024 academic year; (9) In regard to dual enrollment grants, a student participating in the Tennessee technical middle college program may enroll in more than one course per semester at an eligible postsecondary institution while receiving a dual enrollment grant, if authorized by the rules of the program promulgated by THEC. A student participating in the program will be eligible for a dual enrollment grant for a semester beyond the first semester of receipt in an academic year if the student continues to meet all eligibility requirements for the dual enrollment grant and if the student achieves a cumulative grade point average of 2.0 for all eligible postsecondary institution courses attempted under a dual enrollment grant for purposes of the program. A student participating in the Tennessee middle college program will be eligible to receive a dual enrollment grant for each course offered by the eligible postsecondary institution that is attempted by the student for purposes of the program. For purposes of promulgating rules, this bill will take effect upon becoming a law. For all other purposes, this bill will take effect July 1, 2023.