SESSION OF 2022
SUPPLEMENTAL NOTE ON SENATE BILL NO. 340
As Amended by Senate Committee on Ways
and Means
Brief*
SB 340, as amended, would make changes to the
Kansas Promise Scholarship Act (Act). The bill would address
the responsibilities of the State Board of Regents (Board) and
the responsibilities of postsecondary institutions, and it would
authorize the designation of additional eligible programs and
fields of study.
The bill would be in effect upon publication in the
Kansas Register.
Sunset (Section 1)
The bill would sunset the program after FY 2027.
Kansas Promise scholarship recipients who had been
awarded a Kansas Promise scholarship prior to July 1, 2027,
would be able to continue to receive such scholarship until
they complete the program as provided in the Act. The bill
would state no new Act scholarships may be awarded after
July 1, 2027.
Definitions (Section 2)
The bill would amend the definition of “eligible
postsecondary institution” by adding the requirement that any
community college or technical college must have a
recognized service area in order to qualify.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
The bill would amend the definition of “part-time student”
to clarify that enrollment in the required six credit hours could
occur in the fall, summer, or spring semester.
The bill would amend the term “promise eligible
program” to require the program to be both approved by the
Board and be considered high wage, high demand, or critical
need. The bill would also require promise-eligible programs to
be within a field of study designated in the bill.
[Note: These requirements would be in addition to all
other requirements currently within the program definitions.]
State Board of Regents (Sections 3, 5, and 7)
Responsibilities (Sections 3 and 7)
The bill would change the date by which the Board is
directed to adopt rules and regulations for the Kansas
Promise Scholarship Program (Program) from March 1, 2022,
to March 1, 2023.
The bill would also clarify elements of the Board’s
responsibilities outlined in statute. The Board would no longer
be responsible for setting the deadline for scholarship
applications but instead be responsible for accepting and
processing scholarships throughout the year.
The Board would also be prohibited from adopting
terms, conditions, and requirements for scholarship
agreements that are more stringent than the requirements for
scholarship agreements provided in the Act.
The bill would add responsibilities of the Board,
including the following:
● Requesting information from state agencies
necessary for administration of the Act;
2- 340
● Accepting electronic signatures on all forms and
agreements;
● Enforcing Kansas Promise Scholarship
agreements;
● Collecting moneys repaid by students; and
● Determining fulfillment of residency work
requirements.
The bill would clarify that the Kansas Promise
Scholarship agreements are made between the Board and
the student.
Annual Report (Section 3)
The bill would clarify the annual report requirement by
stating that the report shall include, but not be limited, to the
following information:
● Total program cost for each promise-eligible
program at each eligible postsecondary institution;
● Amount of scholarship moneys awarded that went
to each promise-eligible program;
● Number of credit hours paid for with scholarship
moneys;
● Amount of scholarship moneys expected to be
awarded to each eligible postsecondary institution
for each semester;
● Number of scholarships awarded;
● Total amount of scholarship moneys awarded;
● Measures postsecondary educational institutions
have taken in working with private business and
3- 340
industry in the state to determine appropriate fields
of study;
● Review of the employment of scholarship
recipients who have graduated from the Program
including employment fields and geographic
location of such employment; and
● Amount of scholarship moneys provided for:
○ Tuition;
○ Fees;
○ Books; and
○ Supplies.
Associate Degree Transfer Program (Section 3)
The bill would allow the Board to designate an associate
degree transfer program as an eligible program if the program
includes an established 2 + 2 agreement with a four-year
postsecondary educational institution or an articulation
agreement with said educational institution, and is part of an
established degree pathway that allows for the transfer of a
minimum of 60 credit hours.
The bill would apply the designation of associate degree
transfer programs retroactively to the enactment of the
Program on July 1, 2021.
Scholarship Funds (Sections 5 and 7)
The bill would require the Board to disburse scholarship
funds through reimbursement requests from eligible
postsecondary institutions, and reimbursement requests shall
be based upon the actual amount of awarded scholarships for
the academic period. The bill would state all requests shall be
submitted to the Board on or before September 1, December
1, March 1, and June 1 of each year. The Board would be
required to disburse funds to eligible postsecondary
4- 340
institutions on September 15, December 15, March 15, and
June 15 of each year.
The bill would state the Board is the sole entity
responsible for collection and recoupment of Kansas Promise
Scholarship funds required to be repaid by students who fail
to meet the requirements of the Act.
The Board would be authorized to designate a loan
servicer or collection agency to collection and recoup such
funds on the Board’s behalf.
Postsecondary Institutions (Sections 3, 4, and 7)
Requirements (Sections 3 and 7)
The bill would prohibit eligible postsecondary institutions
from limiting scholarship awards to certain programs at the
institution or awarding less than the full scholarship amount to
students who qualify under the Act as long as funds are
available.
Eligible postsecondary institutions would be required to
counsel eligible students regarding the requirements and
conditions of the promise scholarship agreements.
Additional Field of Study (Section 4)
The bill would amend the Program by allowing eligible
postsecondary educational institutions to designate an
additional field of study that meets local employment needs to
be eligible for scholarships. To be eligible, the field of study
would be required to meet the following requirements:
● The field of study contains promise-eligible
programs approved by the Board;
5- 340
● The institution already offers such field of study;
and
● The field of study is one of the following:
○ Agriculture;
○ Food and natural resources;
○ Education and training;
○ Law, public safety, corrections, and security;
or
○ Distribution and logistics.
[Note: Current law allows for the designation of a single
additional program rather than all eligible programs within a
field of study.]
The bill would require all programs designated by
eligible institutions prior to enactment of the bill to be
maintained until all students currently enrolled have
exhausted their promise scholarship eligibility.
Enforcement (Section 7)
The bill would clarify that eligible postsecondary
educational institutions would not be considered contractors
of the State and could not be required to participate in the
tracking, collection, or recoupment of funds by students who
fail to uphold the requirements of their scholarship
agreement.
Kansas Promise Scholarships (Section 5)
Awards
The bill would require that scholarships be awarded on
an academic year basis rather than on a semester basis.
6- 340
The bill would also establish a definition of “aid” to mean
any grant, scholarship, or financial assistance awards that do
not require repayment, with the exceptions of assistance
provided under the Servicemen’s Readjustment Act of 1944
(GI Bill) or any family postsecondary savings account
(Section 529 Accounts).
The bill would remove language allowing for excess
funds to be awarded to eligible students whose family
household income exceeds the limits in the Act.
Expenditure of Scholarship Funds
The bill would cap the expenditures for eligible students
to either 68 credit hours or $20,000, whichever occurs first,
over the lifetime of the student. Students would also be
prohibited from using promise scholarship funds for the
following:
● Prerequisite classes required for promise-eligible
programs unless said prerequisite is within the
eligible program; or
● Any remedial course as defined in statute unless
offered in a corequisite format.
Eligibility Requirements (Section 7)
The bill would change eligibility requirements for the
Program by requiring a student to be a citizen of the United
States and removing the requirement that the student be 21
years of age or older if they had not graduated from a
secondary school within the 12 months prior to application.
The bill would also add clarification to state that the
three-year residency requirement must be proven by one of
the following:
7- 340
● Issuance date on a Kansas-issued identification
card;
● Kansas voter registration records; or
● Kansas income tax documentation.
The bill would make students who had been in the
custody of the Secretary for Children and Families at any time
during grades 9 through 12, and not eligible for the Kansas
Foster Child Educational Assistance Act, automatically
eligible for promise scholarships.
The bill would make further clarifications to eligibility
requirements, such as stating that the applicant’s Free
Application for Federal Student Aid (FAFSA) must be
determined to be free of error codes and that the
maintenance of satisfactory academic progress must be in
the promise-eligible program for which the scholarship was
awarded.
Kansas Promise Scholarship Agreements (Section 7)
The bill would change the time in which a student must
complete the Program from 30 months to 36 months from
initial award of the scholarship.
The bill would also clarify that the two-year residency
requirement upon completion of a promise-eligible program
must be verified by the scholarship recipient providing a W-2
wage and tax statement to show proof of Kansas withholding
or estimated income tax to the State of Kansas.
The bill would amend the terms of repayment by stating
that the interest rate would be determined based upon when
the student’s first course funded under the Program began,
rather than when the student entered into an agreement with
the Board as in current law.
8- 340
The bill would clarify that interest would begin accruing
on the date when the student is determined to be out of
compliance with their scholarship agreement.
For the purposes of determining a student’s satisfaction
of the Act’s requirements, collection or recoupment of funds,
or determination of eligibility, the bill would authorize all
eligible postsecondary educational institutions and state
agencies to provide the Board with the following information:
● Last known contact information for each student
who has entered into, but not completed, a
scholarship agreement;
● Notification of a student receiving a Kansas
Promise Scholarship;
● Completion of a promise-eligible program by a
student;
● Exhaustion of Kansas Promise Scholarship
benefits by a student; and
● Information on any student exceeding the 36-
month program completion requirement.
Kansas Promise Scholarship Funding (Section 5)
The bill would remove the 150 percent escalator for
appropriations after FY 2023 and provide for no more than
$10.0 million annually through FY 2027.
Background
The bill was introduced by the Senate Committee on
Education at the request of Senator Baumgardner.
9- 340
Senate Committee on Education
In the Senate Committee hearing on January 18 and 19,
2022, proponent testimony was provided by representatives
of the Kansas Association of Community College Trustees,
Kansas Independent College Association, and Kansas
Technical Colleges. Proponents generally spoke to the initial
success of the Program and how the bill would address
issues that have arisen during the initial application of the
Program.
Neutral testimony was provided by a representative of
the Board. The representative said the Program has been an
initial success, and the Board has not taken an official
position on the bill.
No opponent testimony was provided.
The Senate Committee on Education amended the bill
to:
● Amend the definition of “promise eligible program”
to require it be approved by the Board and be high
wage, high demand, or critical need;
● Prohibit eligible postsecondary educational
institutions from limiting scholarship awards or
awarding less than the full scholarship amount;
● Clarify the designation of an additional field of
study by adding the following qualifications:
○ The field of study contains promise-eligible
programs;
○ The institution already offers the field of study;
and
○ The field of study is specified in the bill;
10- 340
● Delete language regarding the designation of an
additional program by an eligible educational
institution;
● Include a lifetime cap of $20,000 of promise
scholarship money per student; and
● Remove the retroactive application of amendments
made to the Kansas Promise Scholarship
agreements (Section 6) of the Act.
Senate Committee Ways and Means
On March 10, 2022, the Senate Committee on Ways
and Means amended the bill to add additional reporting
requirements by the Board regarding measures
postsecondary educational institutions have taken in working
with private business and industry in the state to determine
appropriate fields of study and a review of the employment of
scholarship recipients who have graduated from a Kansas
promise scholarship program, including their employment
fields and geographic location of such employment.
The Senate Committee also amended the bill to limit the
the annual appropriated amount to $10.0 million through FY
2027; to sunset the program after FY 2027; change from 48
months to 36 months the time period for completing an
eligible program, starting from the date the scholarship was
first awarded; and require the Board to be notified if a student
exceeds the 36-month program completion requirement.
11- 340
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Board estimates
enactment of the bill would increase annual expenditures
from the State General Fund by $125,000 due to new
requirements and responsibilities. The FY 2023 Governor’s
Budget Report does not reflect the new costs that would be
incurred with enactment of the bill.
Education; scholarship
12- 340
Statutes affected: As introduced: 74-32
As Amended by Senate Committee: 74-32
As Further Amended by Senate Committee: 74-32