Amends TCA Title 49.

This bill requires the board of regents for the state university and community college system ("board") to do the following: (1) Identify workforce training programs in this state that have a defined curriculum, objectives, and exit skill requirements; that are not eligible for federal Title IV funding; and that culminate in a credential other than a degree, including a recognized industry certification or industry-validated certification but excluding a document indicating participation in or completion of a program of professional development, continuing education, exam preparation, or similar objectives; (2) Develop and administer a two-year pilot program, beginning in the 2023-2024 academic year, to award grants to students enrolled in a program described in (1) or pursuing a quality non-degree credential, defined as a credential, other than a degree or a diploma, the receipt of which indicates satisfactory completion of a workforce training program that: (A) Has a defined curriculum, objectives, and results in the awarding of a credential upon successful completion; (B) Culminates in an industry certification, registered apprenticeship, occupational licensure, or certificate but does not include participation in or completion of a program of professional development, continuing education, exam preparation, or similar objectives; (C) Creates a pathway to other quality credentials, postsecondary degrees, or diploma programs; (D) Qualifies an individual for an occupation for which there exists a high demand for a trained workforce in this state based on current job openings, hiring data, and future projections indicated in the annual report prepared by the Tennessee higher education commission ("commission"); and (E) Is not eligible for federal Title IV funding; (3) Develop an application process for students to apply for a grant; and (4) Provide a grant to a student who is classified as a resident of this state pursuant to residency rules promulgated by the board; who applies for a grant using an application developed by the board; who is admitted to a program described in (1) or a quality non-degree credential; and who has not previously received a grant under this bill. This bill generally prohibits the amount of a grant from exceeding the cost of tuition and mandatory fees established annually by the board for regular in-state students enrolled in a program described in (1) or pursuing a quality non-degree credential, as applicable. Any increase in tuition and fees upon which a grant is established is subject to the binding ranges of allowable percentage adjustment as approved annually by the commission. This bill requires the board to collect and analyze the following throughout the pilot program: (1) The number of students who applied for a grant; received a grant; completed a program described in (1) or quality non-degree credential after receiving a grant; and failed to complete a program described in (1) or quality non-degree credential after receiving a grant; (2) The average amount of the grants awarded under this bill; and (3) Additional information that the board determines may assist the general assembly in evaluating the effectiveness of the pilot program. This bill requires the board to submit a report on the outcomes of the pilot program to the commission, the education committee of the senate, and the education committees of the house of representatives no later than June 30, 2025. This bill generally prohibits the board from using net proceeds of the state lottery to fund grants awarded pursuant to this bill and requires the board to only use funds appropriated from the general fund to award grants pursuant to this bill. This bill authorizes the board to promulgate rules to effectuate the bill.