ut-20261001-R765-132: R765-132. Workforce Pell Grant Program Certification and Oversight

1. Agency Information

Title catchline: Higher Education (Utah Board of), Administration Building: Utah Board of Higher Education Building, The Gateway Street address: 60 S 400 W City, state: Salt Lake City, UT 84101

2. Contact Persons

Name: Phone: Email: Hilary Renshaw 801-646-4784 Hilary.renshaw@ushe.edu Alison Adams 801-646-4784 Alison.adams@ushe.edu Geoffrey T. Landward 801-646-4784 Glandward@ushe.edu Please address questions regarding information on this notice to the persons listed above.

A. Rule or section catchline:

R765-132. Workforce Pell Grant Program Certification and Oversight

B. Purpose of the new rule or reason for the change:

This proposed new administrative rule, R765-132, is being enacted to meet the requirements of the Workforce Pell federal regulations and SB 195, passed in the 2026 General Session. Rule R765-132 establishes procedures governing Utah Board of Higher Education certification and oversight of eligible Workforce Pell Grant programs offered by Utah institutions of higher education in compliance with state law and federal requirements.

C. Summary of the new rule or change:

This proposed new administrative rule provides procedures for the certification and oversight of eligible Workforce Pell Grant programs offered by Utah institutions of Higher Education. New rule R765-132 is being enacted to comply with SB 195 (2026) and Section 53H-11-417. New rule R765-132 provides an overview of eligible workforce programs, establishes procedures for the certification of such programs, outlines the criteria by which such a program meets federal requirements, and sets out all other relevant procedures related to Workforce Pell Grant Program Certification and Oversight. 4. Legislative Action Information

B. If yes, any bill number and SB 195 (2026 General Session)

session: 5. Fiscal Information Provide an estimate and written explanation of the aggregate anticipated cost or savings to:

A. State budget:

As noted in the Fiscal Note to SB 195 (2026), this rule will not have any fiscal impact on the state budget. There is no fiscal impact on the state budget because this new rule provides procedures related to the certification and oversight of Workforce Pell Grant programs offered by Utah institutions of higher education. UTAH STATE BULLETIN, October 01, 2026, Vol. 2026, No. 19 213 NOTICES OF PROPOSED RULES This rule does not impose any requirements that would create either any cost to or savings for the state budget.

B. Local governments:

As noted in the Fiscal Note to SB 195 (2026), this rule will not have any fiscal impact on local governments. There is no fiscal impact on local governments because this new rule provides procedures related to the certification and oversight of Workforce Pell Grant programs offered by Utah institutions of higher education. This rule does not impose any requirements that would create either any cost to or savings for local governments.

C. Small businesses ("small business" means a business employing 1-49 persons):

As noted in the Fiscal Note to SB 195 (2026), this rule will not have any fiscal impact on small businesses. There is no fiscal impact on small businesses because this new rule provides procedures related to the certification and oversight of Workforce Pell Grant programs offered by Utah institutions of higher education. This rule does not impose any requirements that would create either any cost to or savings for small businesses.

D. Non-small businesses ("non-small business" means a business employing 50 or more persons):

As noted in the Fiscal Note to SB 195 (2026), this rule will not have any fiscal impact on non-small businesses. There is no fiscal impact on non-small businesses because this new rule provides procedures related to the certification and oversight of Workforce Pell Grant programs offered by Utah institutions of higher education. This rule does not impose any requirements that would create either any cost to or savings for non-small businesses. E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency): As noted in the Fiscal Note to SB 195 (2026), this rule will not have any fiscal impact on persons other than small businesses, non-small businesses, state, or local government entities. There is no fiscal impact on persons other than small businesses, non-small businesses, state, or local government entities because this new rule provides procedures related to the certification and oversight of Workforce Pell Grant programs offered by Utah institutions of higher education. This rule does not impose any requirements that would create either any cost to or savings for persons other than small businesses, non-small businesses, state, or local government entities.

F. Compliance costs for affected persons:

This rule does not impose any compliance costs for affected persons because this new rule provides procedures related to the certification and oversight of Workforce Pell Grant programs offered by Utah institutions of higher education and the rule's requirements do not impose or create any compliance costs. 6. Regulatory Impact Summary Table Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable." Fiscal Cost FY2027 FY2028 FY2029 FY2030 FY2031 State Budget $0 $0 $0 $0 $0 Local Governments $0 $0 $0 $0 $0 Small Businesses $0 $0 $0 $0 $0 Non-Small Businesses $0 $0 $0 $0 $0 Other Persons $0 $0 $0 $0 $0 214 UTAH STATE BULLETIN, October 01, 2026, Vol. 2026, No. 19 NOTICES OF PROPOSED RULES Total Fiscal Cost $0 $0 $0 $0 $0 Fiscal Benefits FY2027 FY2028 FY2029 FY2030 FY2031 State Budget $0 $0 $0 $0 $0 Local Governments $0 $0 $0 $0 $0 Small Businesses $0 $0 $0 $0 $0 Non-Small Businesses $0 $0 $0 $0 $0 Other Persons $0 $0 $0 $0 $0 Total Fiscal Benefits $0 $0 $0 $0 $0 Net Fiscal Benefits $0 $0 $0 $0 $0 7. Regulatory Impact Analysis Approval The Utah Commissioner of Higher Education, Geoffrey Landward, has reviewed and approved this regulatory impact analysis. 8. Family Impact Information

B. Summary of reasonable alternatives or modifications:

The Utah Board of Higher Education does not expect that the implementation of the proposed new Rule R765-132 will have a measurable negative impact on family health, stability, or formation, and as such, no alternatives or modifications are necessary. 9. Citation Information Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement: Section 53H-11-417 11. Public Notice Information The public may submit written or oral comments to the agency identified in box 1.

A. Comments will be accepted until: 11/02/2026

12. Effective Date Information This rule change MAY become effective on: 11/09/2026 (NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date) 13. Agency Authorization Information Agency head or Alison Adams, Board Secretary and Date: 09/01/2026 designee and title: Designee R765. Higher Education (Utah Board of),Administration. R765-132. Workforce Pell Grant Program Certification and Oversight. R765-132-1. Purpose. To establish procedures governing Utah Board of Higher Education (Board) certification and oversight of eligible Workforce Pell Grant programs offered by Utah institutions of higher education in compliance with state law and federal requirements. R765-132-2. Authority. This rule is authorized by Section 53H-11-417. R765-132-3. Definitions. (1) "Board" means the Utah Board of Higher Education. (2) "Completion rate" means the percentage of students who complete a short-term program within 150% of the normal time to completion, consistent with federal Workforce Pell Grant regulations. UTAH STATE BULLETIN, October 01, 2026, Vol. 2026, No. 19 215 NOTICES OF PROPOSED RULES (3) "Direct assessment" means a program that, in lieu of credit hours or clock-hours as the measure of student learning, utilizes direct assessment of student learning, or recognizes the direct assessment of student learning by others, consistent with 34 CFR 668.10. (4) "Eligible workforce program" means an educational program that an institution of higher education offers and that the Board certifies for submission to the United States Secretary of Education for consideration regarding participation in the federal Workforce Pell Grant program. (5) "Earnings outcomes" means post-completion earnings of federal Workforce Pell Grant program completers, including value- added earnings, which compare program costs to earnings levels as defined under the federal Workforce Pell Grant regulations. (6) "Federal Workforce Pell Grant program" means the program that Section 401 of the Higher EducationAct of 1965, 20 USC Sec. 1070a, as amended, establishes as a Workforce Pell Grant program to provide federal Pell Grant assistance to students who the United States Secretary of Education determines are eligible and who enroll in eligible workforce programs. (7) "Job placement rate" means the percentage ofWorkforce Pell Grant program completers who are employed following completion of a short-term program, consistent with federal Workforce Pell Grant regulations. (8) "Program participation agreement (PPA)" means the agreement between an institution of higher education and the United States Department of Education that governs the institution's participation in Title IV federal student financial aid programs, including eligibility, compliance, and reporting requirements. (9) "Secretary" means the United States Secretary of Education. (10) "Short-term program" means a program of study that: (a) is at least 150 clock-hours of instruction, but less than 600 clock-hours of instruction, or an equivalent number of credit hours; (b) is offered by an institution of higher education over a minimum of 8 weeks, but less than 15 weeks; and (c) meets all additional length, duration, or other requirements under the federal Workforce Pell Grant regulations. (11) "Title IV programs" means federal student financial aid programs authorized under Title IV of the Higher Education Act of 1965, 20 USC Sec. 1070 et seq., including the federal Pell Grant program and the federal Workforce Pell Grant program. R765-132-4. Eligible Workforce Program Overview. (1) Based on the Governor's delegated authority under Section 53H-11-417, the Board, after consulting with the State Workforce Development Board, shall certify short-term programs for submission to the United States Secretary of Education as eligible workforce programs in accordance with this rule. In alignment with federal Workforce Pell Grant regulations, the Board may enter into bilateral agreements with another state for cross-state student enrollment in eligible workforce programs, including through distance education. (2) Subject to Subsection R765-132-4(3), an institution of higher education, regardless of whether it has a physical presence in the state, may not, before receiving certification from the Board and approval from the Secretary: (a) Disburse Workforce Pell Grant Program funds to a student in the state; or (b) Represent a program as eligible for Workforce Pell Grant funds. (3) Subsection R765-132-4(2) does not apply if an institution of higher education, regardless of whether it has a physical presence in the state, obtains: (a) The certification of the Board for each short-term program for which the institution of higher education seeks to disburse Workforce Pell Grant program funds; and (b) A determination from the Secretary that the institution of higher education meets the requirements of the Workforce Pell Grant program for each short-term program for which the institution of higher education seeks to disburse Workforce Pell Grant program funds. (4) The institution of higher education shall provide information to the Board every two years to verify that the short-term program remains in compliance with this rule and any other requirements of the Workforce Pell Grant program. (5) Boardcertificationofashort-termprogramshallbesubjecttoBoardrenewalandreapprovalinaccordancewithfederalWorkforce Pell Grant regulations and may expire in alignment with the institution's program participation agreement (PPA). (6) Board certification of a short-term program constitutes the state's determination that a program meets applicable requirements for submission to the United States Secretary of Education and: (a) Does not guarantee approval for participation in the federal Workforce Pell Grant program; and (b) Does not alter institutional responsibilities for administration of Title IV programs or compliance with federal financial aid requirements. R765-132-5. Procedures for Certification of Eligible Workforce Programs. (1) A short-term program seeking certification under this rule shall provide documentation to the Board that the program meets all the following: (a) Provides a program aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as identified by the state using labor market data and workforce alignment processes, including those established under the Carl D. Perkins Career and Technical EducationAct or other state workforce data systems; (b) Meets the hiring requirements of employers in the sectors or occupations identified under Subsection R765-132-5(1)(a); (c) Leads to a recognized postsecondary credential that is stackable and portable across more than one employer, or prepares students for employment in an occupation for which there is only one recognized postsecondary credential and awards that credential upon completion; (d) Prepares students to pursue one or more certificates or degrees at an institution of higher education by ensuring that: (i) On completion of the short-term programand enrollment ina relatedcertificate or degreeprogram, a student will receive academic credit that an institution of higher education will accept toward that certificate or degree; and (ii) The academic credit described under Subsection R765-132-5(1)(d)(i) will be accepted toward meeting the certificate or degree program requirements; and 216 UTAH STATE BULLETIN, October 01, 2026, Vol. 2026, No. 19 NOTICES OF PROPOSED RULES (e) The short-term program is offered by an institution of higher education that is eligible to participate in Title IV federal student financial aid programs. (2) In addition to the requirements of Subsection R765-132-5(1), an institution of higher education seeking certification under this section shall provide to the Board: (a) Documentation that, for the 12 months preceding the date on which the institution of higher education applied for certification, the institution of higher education offered the short-term program and the short-term program met all requirements of this rule; (b) Documentation that the short-term program has a completion rate of at least 70% within 150% of the normal time for completion, in compliance with the federal Workforce Pell Grant regulations; (c) Documentation that the short-term program has a job placement rate of at least 70% after 180 days of completion for each federal aid award year, in compliance with the federal Workforce Pell Grant regulations; (d) Documentation that the short-term program meets federal requirements related to earnings outcomes, including value-added earnings, demonstrating that program cost is supported by post-completion earnings, as required under the Workforce Pell Grant regulations; (e) Documentation that tuition and fees for the short-term program comply with federal Workforce Pell Grant requirements related to program cost and aid eligibility; (f) Documentation that the short-term program complies with federal requirements related to program delivery, including limitations on third-party provision of instruction and program integrity standards; (g) Documentation that the short-term program does not include more than 25% of instruction or program delivery provided by an ineligible institution or organization, consistent with the federal Workforce Pell Grant regulations or documentation that the program is a Registered Apprenticeship Program approved by the U.S. Department of Labor providing up to 49% of program instruction through the apprenticeship sponsor; (h) Documentation that the institution of higher education is accredited by an accrediting agency recognized and approved by the United States Department of Education, and the short-term program is within the institution's accredited scope; (i) Documentation that the short-term program does not include correspondence courses, study abroad, or direct assessment as part of the program; (j) Documentation that the program is subject to approval by the United States Secretary of Education as required under the federal Workforce Pell Grant regulations; and (k) Any additional information requested by the Board to verify compliance with this rule and the Workforce Pell Grant program, including any data about current students enrolled in the program. (3) The Board may collect an application fee to complete the evaluation. (4) Board certification of a short-term program does not constitute approval of an eligible workforce program for participation in the federal Workforce Pell Grant program. Such approval is determined by the United States Secretary of Education. (5) A short-term program must have been offered for at least 12 months before certification and must have met applicable federal Workforce Pell Grant requirements during that period, as required under the federal Workforce Pell Grant regulations. R765-132-6. Criteria for Whether a Program Meets Federal Requirements for Eligible Workforce Programs. The Board shall not certify a short-term program for submission to the United States Secretary of Education unless all the following have been met: (1) The Board determines that the short-term program meets the requirements set forth in federal and state law and this rule; (2) The Board has consulted with the State Workforce Development Board; (3) The institution of higher education has met all the requirements in this rule; (4) The short-term program complies with federal requirements related to program delivery, including limitations on third-party provision of instruction and program integrity standards; (5) The short-term program does not include more than 25% of instruction or program delivery provided by an ineligible institution or organization, consistent with federal Workforce Pell Grant regulations or is a Registered Apprenticeship Program approved by the U.S. Department of Labor providing up to 49% of program instruction through the apprenticeship sponsor; (6) The institution of higher education is accredited by an accrediting agency recognized and approved by the United States Department of Education, and the short-term program is within the institution's accredited scope; (7) The short-term program does not include correspondence courses, study abroad, or direct assessment as part of the program; and (8) The program is subject to approval by the United States Secretary of Education as required under federal Workforce Pell Grant regulations. R765-132-7. Procedures to Consult with the State Workforce Development Board and Certify Programs. (1) The Board shall consult with the State Workforce Development Board to inform determinations of whether a short-term program aligns with high-skill, high-wage, or in-demand industry sectors or occupations. The State Workforce Development Board does not approve or certify programs under this rule. (2) The Board shall submit a certification to the United States Secretary of Education for each program approved under this rule. The certification shall include, at a minimum: (a) The program name; (b) The Classification of Instructional Program (CIP) code; (c) The date of certification; (d) Asigned statement attesting that the program meets applicable federal Workforce Pell Grant requirements; and UTAH STATE BULLETIN, October 01, 2026, Vol. 2026, No. 19 217 NOTICES OF PROPOSED RULES (e) The Eligibility and Certification Approval Report (ECAR) or equivalent federal submission mechanism, as required by the U.S. Department of Education. (3) The Board shall provide an appeal process for institutions seeking review of certification determinations. The appeal process shall include: (a) Submission of a written appeal to the Utah Commissioner of Higher Education (Commissioner) by the institution of higher education within 30 calendar days of the Board's denial that includes all relevant information and evidence; (b) Review of the appeal by the Commissioner or their designee; (c) Opportunity for the Commissioner or their designee to request additional documentation; and (d) Issuance of a written determination by the Commissioner or their designee. (4) The Board's process for certification of eligible workforce programs will include: (a) a written methodology for identifying high-skill, high-wave, or in-demand occupations, and procedures for calculating and certifying completion rates, job placement rates, and value-added earnings, consistent with federal Workforce Pell Grant regulations; (b) consideration of employer input; (c) documentation of consultation with the State Workforce Development Board; (d) defined timelines for submission, review, and certification of programs; and (e) procedures for institutional application and review. (5) The Board shall maintain and periodically update a list of high-skill, high-wage, or in-demand industry sectors or occupations used for certification of eligible workforce programs. R765-132-8. Procedures to Calculate and Certify Completion Rates and Job Placement Rates. (1) For each short-term program certified under this section, the institution of higher education shall report to the Board on any data requested and further defined related to the short-term program, which must include: (a) Program-level data: (i) Name of program; (ii) Classification of Instructional Program (CIP) Code and Title; (iii) For an institution of higher education with a physical presence in the state, the total number of students who enrolled in the short-term program during the previously completed federal financial aid award year, with their state of residence, and the number of students who completed the short-term program; (iv) For a postsecondary institution without a physical presence in the state, the total number of students living in the state that enrolled in the short-term program duringthe previously completed federal financial aid award year, and the number of students who completed the short-term program; (v) The total cost of attendance, the total tuition and fees, and the average net price of the short-term program; (vi) Any additional information required by the Board to calculate the median earnings and the share of graduates who are employed; and (vii) If available, the number of completers of the short-term program who are employed in positions related to the program, and a list of positions and employers considered within the program's field of study; (b) Student-level data: (i) Student demographic information, including student identifiers, name, date of birth; and (ii) Student financial aid information, including dependency status, family income, federal, state, or institutional aid amounts, Pell status, net cost, tuition, and fees. (2) An institution of higher education shall provide to the Board, in a format specified by the Board, a list of students who completed the short-term program during the applicable reporting period, along with any additional information required to verify completion rates, job placement rates, and earning outcomes. (3) Completion rates shall be based on institutional reporting. The Board may use administrative wage record data provided by the Department of Workforce Services to verify employment, calculate job placement rates, assess earnings outcomes, and calculate value-added earnings. Use of administrative wage record data shall comply with all applicable state and federal data privacy and confidentiality requirements, including requirements under the federal Workforce Pell Grant regulations. (4) As required by federal Workforce Pell Grant regulations, the Board shall exclude from the earnings cohort any student who is enrolled in another educational program during the applicable earnings measurement period. R765-132-9. Procedures to Withdraw Certification of Programs. (1) The Board shall revoke certification of a short-term program if either of the following occurs: (a) The institution of higher education fails to annually meet the requirements of this rule; or (b) TheAttorney General or a court of appropriate jurisdiction finds the institution of higher education engaged in unfair, deceptive, or abusive trade practices pursuant to Utah law related to the operation of a short-term program receiving Workforce Pell Grant Program funds. (2) A short-term program that loses certification due to failure to meet completion or job placement rate requirements may not be recertified until the program has met applicable federal Workforce Pell Grant requirements for a period of at least two years, or as otherwise required under the federal Workforce Pell Grant regulations. R765-132-10. Disclosure of Program Information to Students. Institutions of higher education offering eligible workforce programs shall disclose clear, standardized information to prospective and enrolled students, including program cost, duration, lifetime eligibility use information, credential outcomes, completion rates, job 218 UTAH STATE BULLETIN, October 01, 2026, Vol. 2026, No. 19 NOTICES OF PROPOSED RULES placement rates, earnings outcomes, and applicable licensure or certification requirements, and shall also comply with federal restrictions on student eligibility and the use of Pell Grants for eligible workforce programs. KEY: higher education, federal workforce Pell grant Date of Last Change: 2026 Authorizing, and Implemented or Interpreted Law: 53H-11-417 NOTICE OF SUBSTANTIVE CHANGE TYPE OF FILING: New Filing ID: 58229