HOUSE BILL No. 5568

 

April 24, 2012, Introduced by Reps. Hughes, Denby, Pscholka, Ouimet and Rogers and referred to the Committee on Local, Intergovernmental, and Regional Affairs.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending section 15 (MCL 388.1615), as amended by 2011 PA 62.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 15. (1) If a district or intermediate district fails to

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

Subject to subsections (2) and (3), if a district or intermediate

 

district has received more than its proper apportionment, the

 

department, upon satisfactory proof, shall deduct the excess in the

 

next apportionment. Notwithstanding any other provision in this

 

article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 


transportation, may be recovered from any payment made under this

 

article other than a special education or special education

 

transportation payment, from the proceeds of a loan to the district

 

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under

 

section 1211 of the revised school code, MCL 380.1211. State aid

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the

 

proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.

 

     (2) If the result of an audit conducted by or for the

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments when the adjustment is

 

finalized. At the request of the district and upon the district

 

presenting evidence satisfactory to the department of the hardship,

 

the department may grant up to an additional 4 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this act if the department determines that the

 

district would otherwise experience a significant hardship in

 


satisfying its financial obligations.

 

     (3) If, because of the receipt of new or updated data, the

 

department determines during a fiscal year that the amount paid to

 

a district or intermediate district under this act for a prior

 

fiscal year was incorrect under the law in effect for that year,

 

the department may make the appropriate deduction or payment in the

 

district's or intermediate district's allocation for the fiscal

 

year in which the determination is made. The deduction or payment

 

shall be calculated according to the law in effect in the fiscal

 

year in which the improper amount was paid. If the district does

 

not receive an allocation for the fiscal year or if the allocation

 

is not sufficient to pay the amount of any deduction, the amount of

 

any deduction otherwise applicable shall be satisfied from the

 

proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211, as determined by the department.

 

     (4) Expenditures made by the department under this article

 

that are caused by the write-off of prior year accruals may be

 

funded by revenue from the write-off of prior year accruals.

 

     (5) In addition to funds appropriated in section 11 for all

 

programs and services, there is appropriated for 2011-2012 for

 

obligations in excess of applicable appropriations an amount equal

 

to the collection of overpayments, but not to exceed amounts

 

available from overpayments.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 96th Legislature are

 


enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5566(request no.

 

04142'11 *).

 

     (b) Senate Bill No.____ or House Bill No. 5567(request no.

 

05368'12 *).

 

     (c) Senate Bill No.____ or House Bill No. 5569(request no.

 

05370'12 *).

 

     (d) Senate Bill No.____ or House Bill No. 5570(request no.

 

05384'12 *).