(1) The funds appropriated in section 236 for Michigan achievement scholarships must be distributed as provided in this section and section 248, pursuant to the administrative procedures for Michigan achievement scholarship private training program of the department.

  (2) As used in this section:

  (a) “Department” means the department of labor and economic opportunity.

  (b) “Gift aid” means that term as defined in section 248.

  (c) “High school equivalency certificate” means that term as defined in section 4.

  (d) “Qualified occupational training program” and “qualified private training institution” mean those terms as defined in section 13 of the Michigan reconnect grant recipient act, 2020 PA 68, MCL 390.1713.

  (3) The department shall do all of the following:

  (a) Develop and implement a process by which those seeking to participate in the Michigan achievement scholarship private training program as a qualified private training institutions offering qualified occupational training programs must apply to the department.

  (b) Approve as a qualified occupational training program a program for which an application is submitted under subdivision (a) that meets all of the criteria to qualify as a qualified occupational training program, and post these criteria to the department’s website.

  (c) Ensure that an applicant under subdivision (a) is first included on this state‘s eligible training provider list as a qualified private training institution before each of the applicant’s programs receives separate approval from the department as being a qualified occupational training program.

  (d) Require that qualified private training institutions accepted to participate in the Michigan achievement scholarship private training program comply with data requests from the department as a condition of continued participation. For purposes of this subdivision, the department shall require institutions operating apprenticeship programs subject to this section to provide data that tracks relevant work experience required to verify a student’s status as an apprentice.

  (e) Maintain on its website a list of all qualified occupational training program options available to potential skills scholarship recipients.

  (f) Award skills scholarships, subject to all of the following:

  (i) A skills scholarship is a grant not to exceed $2,000.00 per year to contribute to tuition costs for a qualified occupational training program at a qualified private training institution, both of which are approved under this section, for a training program participant who meets the requirements of subparagraph (ii). A skills scholarship is available under this section only if the program participant has applied for all other gift aid, if any is available, and must not cause the total amount of all gift aid, including a skills scholarship awarded under this section, if any, to exceed the full amount of the tuition charged for the training program. A program participant may receive a skills scholarship under this section for a maximum of 2 academic years.

  (ii) To receive the skills scholarship described in subparagraph (i), a qualified occupational training program participant must meet all of the following:

  (A) Be a resident of this state for at least the immediately preceding year.

  (B) Have graduated from a high school in this state with a diploma or certificate of completion or achieved a high school equivalency certificate in 2023 or after.

  (C) Not have previously earned an associate or baccalaureate degree.

  (D) Not have previously earned a degree, certificate, or other credential using a skills scholarship awarded under this section.

  (E) Timely complete a Michigan achievement scholarship private training program skills scholarship application in a form and manner determined by the department.

  (F) Timely apply for all other gift aid, if any is available, for the qualified occupational training program.

  (iii) Subject to subparagraph (iv), the department may award skills scholarships under this section only until money appropriated to the Michigan achievement scholarship private training program has been fully committed.

  (iv) Once money allocated to the Michigan achievement scholarship private training program in section 236 has been fully committed, the department may continue to award skills scholarships under this section using money appropriated for Michigan reconnect grant program short-term training grants under section 201(7).

  (g) Inform each recipient of a skills scholarship that the recipient will remain eligible for the Michigan achievement scholarship under section 248 for a maximum of 5 years, less any years of eligibility used for a skills scholarship awarded under this section, to pursue an associate degree, baccalaureate degree, or occupational certificate upon completion of a certification course of study at a qualified private training institution.

  (4) Except as otherwise provided in subsection (5), the department shall promulgate rules to implement subsection (3)(a), (b), and (d) only, pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, subject to all of the following:

  (a) Under subsection (3)(a), the department is limited to developing the form for the application described in subsection (3)(a) and prescribing the time and manner of its completion.

  (b) Under subsection (3)(b), the department is limited to applying the eligibility criteria described in subsection (3)(b) and shall not apply any other eligibility criteria.

  (c) Under subsection (3)(d), the department is limited to requiring compliance with data requests as described in subsection (3)(d).

  (5) To facilitate implementation of the Michigan achievement scholarship private training program prior to final rules being adopted, the department may develop and administer the program in accordance with its proposed rules or other policy or directive of the department established pursuant to this section.

  (6) It is the intent of the legislature that a qualified private training institution will not make changes to scholarship or financial aid programs offered by that qualified private training institution that have the goal or net effect of shifting the cost burden of those programs to the program described in this section.