Amends TCA Title 49, Chapter 4, Part 9.

ON MARCH 30, 2022, THE SENATE ADOPTED AMENDMENTS #1 AND 2 AND PASSED SENATE BILL 2405, AS AMENDED. AMENDMENT #1 rewrites this bill and revises present law provisions governing lottery-funded scholarships and financial aid, as follows: (1) Present law defines "nontraditional student” for purposes of qualifying for an award under the lottery scholarship provisions as a student who: (A) Is at least 25 years of age; and enrolls in a baccalaureate degree program at an eligible four-year postsecondary institution as an entering freshman or at least two years after last attending any postsecondary institution; or (B) Enrolls in a baccalaureate degree program at an eligible four-year postsecondary institution, while maintaining continuous enrollment following completion of an associate degree under the Tennessee reconnect grant. This bill redefines "nontraditional student" as a student who: (A) Is an independent student, as determined by the FAFSA, and who meets the other present law qualifications for nontraditional students to receive a HOPE scholarship. Currently, an "independent student" for purposes of FAFSA is a student who is at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan, a ward of the court, someone with legal dependents other than a spouse, an emancipated minor, or someone who is homeless or at risk of becoming homeless; or (B) Enrolls in a baccalaureate degree program at an eligible four-year postsecondary institution while maintaining continuous enrollment following completion of an associate degree through the Tennessee reconnect grant. (2) Under present law, the amount of a Tennessee HOPE scholarship and Tennessee HOPE scholarship for nontraditional students awarded to a student attending an eligible four-year postsecondary institution is $1,750 for full-time attendance for each semester through the final semester of such student's sophomore year, at which time the award is increased to $2,250 per semester. This amendment rewrites this provision to instead provide for an award of $2,550 for full-time attendance for each semester beginning as a freshman. (3) This amendment increases from $1,500 to $1,600 for each semester, the amount of a Tennessee HOPE scholarship awarded to a student attending an eligible two-year postsecondary institution. (4) This amendment removes the present law provision whereby the amount of a Tennessee HOPE scholarship for a nontraditional student enrolled full time in an associate degree program is $1,500 per semester at a two-year postsecondary institution and $1,750 per semester at a four-year postsecondary institution. (5) This amendment rewrites the present law provisions governing dual enrollment grants. Significant changes from the present law provisions include the following: (A) Under present law, high school students receiving a dual enrollment grant may enroll in one course per semester at an eligible postsecondary education institution. The student may enroll in two additional courses per semester if the student is a junior or senior and: has qualified academically for a Tennessee HOPE scholarship by attaining the required composite ACT score or the concordant equivalent score on the SAT; or has achieved a high school grade point average of at least 3.0 for all high school work completed prior to the semester of enrollment as a dual enrollment student, if the student is enrolled in an eligible high school. This amendment expands the program to students in their freshman year of high school, in certain circumstances. Under this amendment, a high school student is eligible for a dual enrollment grant if the student, among other requirements: (i) Is a junior or senior in high school; or (ii) Has completed the eighth grade and is enrolled in a TCAT. (B) This bill removes the above GPA and ACT/SAT enrollment requirements referenced above and reduces from 2.75 to 2.0 the cumulative GPA required in the attempted postsecondary courses in order to maintain eligibility. (C) Generally under present law, an eligible student may receive a dual enrollment grant for no more than 10 courses. For the first four courses taken under a dual enrollment grant, the award is the cost of in-state tuition and mandatory fees established annually for community colleges or TCAT's in the state university and community college system if the courses are taken at a community college or a TCAT. For the first four courses taken under a dual enrollment grant at an eligible public four-year postsecondary institution or an eligible independent postsecondary institution, the maximum award must not exceed the cost per credit or clock hour equivalent of courses taken at community colleges or TCAT. For the fifth through 10th courses taken, TSAC's board of directors determines the award per credit hour or clock hour equivalent, but the award may not be in an amount for a credit hour or clock hour equivalent taken under a dual enrollment grant that exceeds the cost per credit hour or clock hour equivalent of courses taken at community colleges or TCAT. This bill revises these provisions to instead provide that an eligible student may receive a dual enrollment grant for no more than: (i) 1,296 clock hours at a TCAT; or (ii) 10 courses measured by semester hours at an eligible postsecondary institution that offers degrees. (D) Under this amendment, the award for a dual enrollment course taken at a TCAT will be the average tuition established annually by the board of regents for regular in-state students at TCATs, plus an additional dual enrollment access fee of 5 percent of the average tuition. For the first five dual enrollment semester-hour courses taken at an eligible postsecondary institution, the award for a dual enrollment grant will be the average tuition established annually by the board of regents for regular in-state students at community colleges, plus an additional dual enrollment access fee of 5 percent of the average tuition. This amendment prohibits an eligible postsecondary institution from charging a student receiving a dual enrollment grant tuition or fees in excess of the student's dual enrollment grant award, as established in the respective subdivision. However, an eligible postsecondary institution may charge a student receiving a dual enrollment grant costs actually incurred by the eligible postsecondary institution on the student's behalf, including, but not limited to, book and material costs, digital book and material costs, special examination fees, industry certification fees, and board examination fees. For a student's sixth through tenth dual enrollment semester-hour courses taken at an eligible postsecondary institution, TSAC will determine the award per semester credit hour. Any increase in the tuition rate upon which the dual enrollment grant award is established will be subject to the binding range of allowable percentage adjustment for tuition as annually approved by THEC pursuant to present law. (6) Under present law, for a foster child tuition grant, the student must have entered foster care at age 14 or older. This amendment lowers the applicable age from 14 to 13. (7) Under present law, one of the eligibility requirements for the Tennessee reconnect grant is being determined an independent student for purposes of FAFSA. This amendment extends eligibility to also include students who are at least 23 years of age by January 1 of the academic year in which the student enrolls in courses leading to completion of an eligible program of study. AMENDMENT #2 revises the scholarship award amounts, discussed above, at a four-year institution to be $2,250 per semester for a student's freshman and sophomore years and $2,850 per semester beginning in the student's junior year. ON APRIL 25, 2022, THE HOUSE SUBSTITUTED SENATE BILL 2405 FOR HOUSE BILL 2152, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 2405, AS AMENDED. AMENDMENT #2 allows a student to continue to receive a Tennessee HOPE scholarship after the student has earned the student's first baccalaureate degree, if the student: (1) Continues to meet all applicable eligibility and academic requirements for the student's Tennessee HOPE scholarship; (2) Earned the student's first baccalaureate degree: (A) In less than the number of academic semesters projected by the eligible postsecondary institution for a full-time student to complete the student's program of study; and (B) While receiving a Tennessee HOPE scholarship; and (3) Is admitted to and enrolled in coursework for a program of study in pursuit of a master's degree, doctorate, or other advanced degree at an eligible public postsecondary institution within three months of the student receiving the student's first baccalaureate degree. A student who is eligible to continue receiving the student's Tennessee HOPE scholarship under this amendment may continue to receive the scholarship: (1) In the amount received by the student for the last semester in which the student was making satisfactory progress in the course of study that culminated with the student earning the student's first baccalaureate degree; and (2) For each semester that the student would have been eligible to receive the student's Tennessee HOPE scholarship had the student not completed the student's program of study in less than the number of academic semesters projected by the eligible postsecondary institution for a full-time student to earn the student's respective baccalaureate degree. This amendment does not allow a student to receive a Tennessee HOPE scholarship if five years have passed from the date of the student's initial enrollment at a postsecondary institution, unless an exception or other provision of law applies. For purposes of this amendment, the projected number of academic semesters for a full-time student to earn a baccalaureate degree for a respective course of study must be determined according to the eligible postsecondary institution's course catalog for the academic year in which the student first enrolled at the respective institution. ON APRIL 27, 2022, THE SENATE NONCONCURRED IN HOUSE AMENDMENT #2. ON APRIL 28, 2022, THE HOUSE LIFTED THE TABLING MOTION, RECONSIDERED ITS ACTION, WITHDREW HOUSE AMENDMENT #2, AND RE-PASSED SENATE BILL 2405.