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

    (c) “Qualified occupational training program” means that term 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 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 before each of the applicant’s programs receives separate approval from the department as being a qualified occupational training program.

    (d) Require that 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 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 must not 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.

    (iii) 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.

    (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 in a qualified occupational training program.

    (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 training institution will not make changes to scholarship or financial aid programs offered by that training institution that have the goal or net effect of shifting the cost burden of those programs to the program described in this section.