Amends TCA Title 4; Title 49 and Title 50.

HIGH-VALUE WORKFORCE READINESS BOARD<br /> <br /> This bill creates the high-value workforce readiness board ("board"). The board is administratively attached to the department of labor and workforce development ("department").<br /> <br /> This bill requires the board to do the following:<br /> <br /> (1) Annually identify high-demand fields in this state for which increasing access to industry recognized credentials would benefit the workforce climate of this state. The board must consider the industry demands of this state using the Jobs4TN.gov database as a guide and the average wages or salary of individuals who are currently employed in high-demand fields in identifying high-demand fields for purposes of this bill; <br /> <br /> (2) Identify the skill sets required for an individual to succeed in each high-demand field identified by the board pursuant to this bill;<br /> <br /> (3) Annually recommend to the department a list of the qualified institutions that offer workforce programs in high-demand fields for purposes of the high value workforce readiness grant program established in this bill. The board must consider program content and completion data and program job placement data when recommending qualified institutions;<br /> <br /> (4) Annually determine the grant amount per contact hour for each high-value workforce readiness grant awarded pursuant to this bill; and<br /> <br /> (5) Conduct or direct the research required for the department to prepare the report required in this bill.<br /> <br /> BOARD MEMBERS<br /> <br /> This bill provides that the board consists of the following nine members. Two members must be appointed by the governor who work in a high-demand industry in this state or operate or are employed at a qualified institution in which an individual must be enrolled to receive a grant pursuant to this bill. Two members must be appointed by the speaker of the senate who are workforce development professionals in this state. Two members must be appointed by the speaker of the house of representatives who have successfully completed a non-credit bearing credentialing program. One member must be the commissioner of the department of economic and community development, or the commissioner's designee. One member must be the commissioner of the department of labor and workforce development, or the commissioner's designee. Finally, one member must be the executive director of the Tennessee higher education commission, or the executive director's designee.<br /> <br /> This bill provides that appointed members serve a term of two years. Board members may be reappointed. However, the member must meet the qualifications required for the respective appointment under this bill at the time of appointment. This bill requires vacancies on the board to be filled in the same manner as the original appointment. An appointment to fill a vacancy occurring before the expiration of a term is for the remainder of the unexpired term.<br /> <br /> This bill provides that a majority of the members of the board constitutes a quorum. The commissioner of labor and workforce development, or the commissioner's designee, serves as the chair of the board. The board must meet at the call of the chair.<br /> <br /> This bill requires the business of the board to be conducted at meetings held in compliance with existing law regarding public meetings. All records of the board must be made available to the public in compliance with existing law.<br /> <br /> This bill provides that members of the board serve without compensation, but may receive reasonable reimbursement for actual and necessary travel expenses in accordance with the travel regulations promulgated by the department of finance and administration and approved by the attorney general.<br /> <br /> HIGH-VALUE WORKFORCE READINESS GRANT PROGRAM<br /> <br /> This bill requires the department to administer a high-value workforce readiness grant program to award grants to qualified students who are enrolled in a qualified institution approved by the Tennessee higher education commission ("commission"). The commission must not approve a qualified institution for purposes of this bill unless the qualified institution (i) submits to the commission the syllabus for each course required in each workforce program offered by the qualified institution and the credentials of each instructor that teaches coursework to students enrolled in the qualified institution's workforce programs; and (ii) obtains a surety bond in the amount required by the commission.<br /> <br /> As used in this bill, "qualified student" means a resident of this state who:<br /> <br /> (1) Has obtained a high school diploma, but who has not earned an associate or baccalaureate degree;<br /> <br /> (2) Has not obtained a high school diploma or a high school equivalency credential approved by the state board of education, but who has demonstrated workforce readiness by earning a passing score on the ability to benefit test approved by the department; or<br /> <br /> (3) Earned an associate or baccalaureate degree five or more years before the date on which the individual applies for a grant pursuant to this bill, if the individual is employed and: (i) reported for the year immediately preceding the year in which the individual submits an application for a grant pursuant to this bill, an income that did not exceed 75 percent of the median income earned by Tennessee residents who were employed in this state for the respective year, as calculated and reported by the department of labor and workforce development; and (ii) is not employed in the field or industry for which the individual will complete a program of coursework at a qualified institution for purposes of obtaining a new credential.<br /> <br /> As use in this bill, "qualified institution" means a private, nonprofit technical school that is located in this state and that:<br /> <br /> (1) Offers coursework to enrolled students that is designed to prepare students for passage of an industry-recognized credential exam, and such coursework constitutes at least 50 percent of the coursework provided by the school and is offered to enrolled students in an in-person or synchronous online instructional setting;<br /> <br /> (2) Requires students enrolled in the coursework described above to take an industry-recognized credential exam for the students' respective program in order to be eligible for graduation;<br /> <br /> (3) Is audited annually by an independent certified public accountant or public accountant; and <br /> <br /> (4) Has continuously operated in this state as a private, nonprofit technical school for no less than the three-year-period immediately preceding the date on which the school first became eligible to receive grant funds awarded to students pursuant to this bill.<br /> <br /> GRANT ISSUANCE<br /> <br /> This bill requires the department to award grants to qualified students who are enrolled in a workforce program at a qualified institution that meets the requirements of this bill for the qualified student to obtain a credential in a high-demand field, if the qualified student (i) submits a grant application to the department; (ii) only uses grant funds received pursuant to this bill to obtain a workforce credential in a high-demand field; (iii) maintains continuous enrollment in the qualified institution; (iv) maintains satisfactory academic progress for the qualified student's selected workforce program, as determined by the qualified institution, in conjunction with the department and the commission; and (v) has not attempted more than 175 contact hours at a qualified institution while receiving a grant under this bill. A qualified student is not required to complete the FAFSA in order to be eligible for a grant awarded pursuant to this bill.<br /> <br /> This bill requires the department to award a qualified student who meets the requirements of this bill, and who enrolls in a qualified institution that meets the requirements of this bill, a grant in the amount determined by the board. However, this bill prohibits the department from awarding grant funds to a qualified student pursuant to this bill until the student completes 20 percent of a course required for the qualified student's selected program of study, at which time the department must award the student 50 percent of the grant award amount for the course. The department must award the qualified student the remaining 50 percent of the grant award amount for the course when the student completes 100 percent of the course.<br /> <br /> This bill authorizes the department to adjust the grant amount that may be awarded to a qualified student per contact hour based on program utilization and need.<br /> <br /> ANNUAL REPORT<br /> <br /> This bill requires the department to submit a report on the effectiveness of the high-value workforce readiness grant program to the governor and the general assembly no later than October 31, 2027, and by each October 1 thereafter. The report must include the following:<br /> <br /> (1) For grant recipients, graduation rates, job placement rates, program retention rates, and wage or salary increases; <br /> <br /> (2) The effect the grant program has had on the high-demand fields and workforce in each region in which grants have been awarded; <br /> <br /> (3) The total cost of the grant program; and<br /> <br /> (4) Any recommended adjustments to the annual state appropriations to the department for purposes of the grant program and the grant amount awarded per contact hour.<br /> <br /> RULE PROMULGATION<br /> <br /> This bill authorizes the department and the Tennessee higher education commission to promulgate rules to effectuate this bill.<br />