HB-4350, As Passed House, August 23, 2007

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4350

 

 

 

 

 

 

 

 

 

 

 

 

 

A bill to make appropriations for certain state institutions

 

of higher education and certain state purposes related to education

 

for the fiscal year ending September 30, 2008; to provide for the

 

expenditures of those appropriations; and to prescribe the powers

 

and duties of certain state departments, institutions, agencies,

 

employees, and officers.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

Sec. 101. Subject to the conditions set forth in this act, the

 

amounts listed in this part are appropriated for certain state

 

institutions of higher education and certain state purposes related

 

to education for the fiscal year ending September 30, 2008, from


 

the funds indicated in this part. The following is a summary of the

 

appropriations in this part:

 

APPROPRIATION SUMMARY:

 

Full-time equated classified positions............ 1.0

 

GROSS APPROPRIATION.................................... $ 957,965,100

 

Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

transfers............................................ 0

 

ADJUSTED GROSS APPROPRIATION........................... $ 957,965,100

 

Federal revenues:

 

Total federal revenues................................. 6,000,000

 

Special revenue funds:

 

Total local revenues................................... 0

 

Total private revenues................................. 0

 

Total other state restricted revenues.................. 125,800,000

 

State general fund/general purpose..................... $ 826,165,100

 

Sec. 102. CENTRAL MICHIGAN UNIVERSITY

 

Operations............................................. $ 86,455,500

 

GROSS APPROPRIATION.................................... $ 86,455,500

 

Appropriated from:

 

State general fund/general purpose..................... $ 86,455,500

 

Sec. 103. EASTERN MICHIGAN UNIVERSITY

 

Operations............................................. $ 81,782,300

 

GROSS APPROPRIATION.................................... $ 81,782,300

 

Appropriated from:

 

State general fund/general purpose..................... $ 81,782,300

 

Sec. 104. FERRIS STATE UNIVERSITY


 

Operations............................................. $ 52,738,900

 

GROSS APPROPRIATION.................................... $ 52,738,900

 

Appropriated from:

 

State general fund/general purpose..................... $ 52,738,900

 

Sec. 105. GRAND VALLEY STATE UNIVERSITY

 

Operations............................................. $ 68,126,000

 

GROSS APPROPRIATION.................................... $ 68,126,000

 

Appropriated from:

 

State general fund/general purpose..................... $ 68,126,000

 

Sec. 106. LAKE SUPERIOR STATE UNIVERSITY

 

Operations............................................. $ 14,359,000

 

GROSS APPROPRIATION.................................... $ 14,359,000

 

Appropriated from:

 

State general fund/general purpose..................... $ 14,359,000

 

Sec. 107. MICHIGAN TECHNOLOGICAL UNIVERSITY

 

Operations............................................. $ 52,449,800

 

GROSS APPROPRIATION.................................... $ 52,449,800

 

Appropriated from:

 

State general fund/general purpose..................... $ 52,449,800

 

Sec. 108. NORTHERN MICHIGAN UNIVERSITY

 

Operations............................................. $ 48,767,900

 

GROSS APPROPRIATION.................................... $ 48,767,900

 

Appropriated from:

 

State general fund/general purpose..................... $ 48,767,900

 

Sec. 109. OAKLAND UNIVERSITY

 

Operations............................................. $ 55,116,800

 

GROSS APPROPRIATION.................................... $ 55,116,800


 

Appropriated from:

 

State general fund/general purpose..................... $ 55,116,800

 

Sec. 110. SAGINAW VALLEY STATE UNIVERSITY

 

Operations............................................. $ 30,491,000

 

GROSS APPROPRIATION.................................... $ 30,491,000

 

Appropriated from:

 

State general fund/general purpose..................... $ 30,491,000

 

Sec. 111. UNIVERSITY OF MICHIGAN - DEARBORN

 

Operations............................................. $ 27,312,300

 

GROSS APPROPRIATION.................................... $ 27,312,300

 

Appropriated from:

 

State general fund/general purpose..................... $ 27,312,300

 

Sec. 112. UNIVERSITY OF MICHIGAN - FLINT

 

Operations............................................. $ 23,081,800

 

GROSS APPROPRIATION.................................... $ 23,081,800

 

Appropriated from:

 

State general fund/general purpose..................... $ 23,081,800

 

Sec. 113. WESTERN MICHIGAN UNIVERSITY

 

Operations............................................. $ 118,164,700

 

GROSS APPROPRIATION.................................... $ 118,164,700

 

Appropriated from:

 

State general fund/general purpose..................... $ 118,164,700

 

Sec. 114. SUPPLEMENTAL PAYMENT

 

One-time supplemental payment.......................... $ 56,825,200

 

GROSS APPROPRIATION.................................... $ 56,825,200

 

Appropriated from:

 

State general fund/general purpose..................... $ 56,825,200


 

Sec. 115. STATE AND REGIONAL PROGRAMS

 

Full-time equated position........................ 1.0

 

Higher education database modernization and

 

conversion--1.0 FTE positions........................ $ 200,000

 

Midwestern higher education compact.................... 90,000

 

GROSS APPROPRIATION.................................... $ 290,000

 

Appropriated from:

 

State general fund/general purpose..................... $ 290,000

 

Sec. 116. MARTIN LUTHER KING, JR. - CESAR CHAVEZ -

 

ROSA PARKS PROGRAM

 

Select student supportive services..................... $ 1,956,100

 

Michigan college/university partnership program........ 586,800

 

Morris Hood, Jr. educator development program.......... 148,600

 

GROSS APPROPRIATION.................................... $ 2,691,500

 

Appropriated from:

 

State general fund/general purpose..................... $ 2,691,500

 

Sec. 117. GRANTS AND FINANCIAL AID

 

State competitive scholarships......................... $ 34,130,500

 

Tuition grants......................................... 58,768,100

 

Michigan work-study program............................ 7,326,300

 

Part-time independent student program.................. 2,653,300

 

Michigan education opportunity grants.................. 2,084,200

 

Robert C. Byrd honors scholarship program.............. 1,500,000

 

Nursing scholarship and grant programs................. 4,250,000

 

Michigan merit award program........................... 60,000,000

 

Michigan promise grant program......................... 43,500,000

 

Tuition incentive program.............................. 21,100,000


 

Children of veterans tuition grant program............. 1,000,000

 

Project gear-up........................................ 3,000,000

 

GROSS APPROPRIATION.................................... $ 239,312,400

 

Appropriated from:

 

Federal revenues:

 

Higher education act of 1965, title IV, 20 USC......... 1,500,000

 

Higher education act of 1965, title IV, part A......... 1,500,000

 

United States department of education, office of

 

elementary and secondary education, gear-up.......... 3,000,000

 

Special revenue funds:

 

Michigan merit award trust fund........................ 123,600,000

 

Michigan higher education assistance authority

 

operating fund....................................... 1,200,000

 

Contributions to children of veterans tuition grant

 

program.............................................. 1,000,000

 

State general fund/general purpose..................... $ 107,512,400

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2007-2008 is $951,965,100.00 and state

 

spending from state resources to be paid to local units of

 

government for fiscal year 2007-2008 is $3,759,100.00. The itemized

 

statement below identifies the estimated appropriations from which

 

spending to local units of government will occur:

 

Part-time independent student program.................. $ 1,255,700


 

Michigan education opportunity grants.................. 932,900

 

Michigan work-study.................................... 1,570,500

 

TOTAL.................................................. $ 3,759,100

 

Sec. 202. The appropriations authorized under this part and

 

part 1 are subject to the management and budget act, 1984 PA 431,

 

MCL 18.1101 to 18.1594.

 

Sec. 211. (1) The auditor general shall review higher

 

education institutional data inventory (HEIDI) enrollment data

 

submitted by all state universities and may perform audits of

 

selected state universities if determined necessary. The review and

 

audits shall be based upon the definitions, requirements, and

 

uniform reporting categories established by the state budget

 

director and the senate and house fiscal agencies. The auditor

 

general shall submit a report of findings to the house and senate

 

appropriations committees and the state budget director no later

 

than July 1, 2008.

 

(2) Student credit hours reports shall not include the

 

following:

 

(a) Student credit hours generated through instructional

 

activity by faculty or staff in classrooms located outside

 

Michigan, with the exception of instructional activity related to

 

study-abroad programs or field programs.

 

(b) Student credit hours generated through distance learning

 

instruction for students not eligible for the institution's in-

 

state main campus resident tuition rate.

 

(c) Student credit hours generated through credit by

 

examination.


 

(d) Student credit hours generated through inmate prison

 

programs regardless of teaching location.

 

(e) Student credit hours generated in new degree programs

 

after January 1, 1975, that have not been specifically authorized

 

for funding by the legislature, except spin-off programs converted

 

from existing core programs that do all of the following:

 

(i) Represent new options, fields, or concentrations within

 

existing programs.

 

(ii) Are consistent with the current institutional role and

 

mission.

 

(iii) Are accommodated within the continuing funding base of the

 

institution.

 

(iv) Do not require a new degree level beyond that which the

 

institution is currently authorized to grant within that discipline

 

or field.

 

(v) Do not require funding from the state other than that

 

provided by the student credit hours generated within the program,

 

either before program initiation or within the first 3 years of

 

program operation.

 

(3) The auditor general shall periodically audit higher

 

education institutional data inventory (HEIDI) data as submitted by

 

the state universities for compliance with the definitions approved

 

by the HEIDI advisory committee for the HEIDI database.

 

(4) "Distance learning instruction" as used in subsection (2)

 

means instruction that occurs solely in other than a traditional

 

classroom setting where the student and instructor are in the same

 

physical location and for which a student receives course credits


 

and is charged tuition and fees. Examples of distance learning

 

instruction are instruction delivered solely through the Internet,

 

cable television, teleconference, or mail.

 

Sec. 212. (1) Pursuant to section 211(2)(e), state

 

universities may establish the following degree programs:

 

(a) Bachelor's degree programs:

 

Central Michigan University, Integrated Science, B.S. in Ed.

 

Central Michigan University, Law and Economics, B.A., B.S.,

 

B.S. in B.A.

 

Central Michigan University, Meteorology, B.S.

 

Eastern Michigan University, Cross Disciplinary Studies,

 

B.A./B.S.

 

Eastern Michigan University, Information Assurance, B.A./B.S.

 

Eastern Michigan University, Supply Chain Management, B.B.A.

 

Grand Valley State University, Chinese Studies Major, B.A.

 

Lake Superior State University, Physical Science: Teaching,

 

B.S.

 

Lake Superior State University, School of Education, B. Ed.

 

University of Michigan Flint, Biochemistry, B.S.

 

University of Michigan - Flint, Theatre Design and

 

Technology, B.S.

 

University of Michigan Flint, Visual Communication, B.F.A.

 

(b) Master's degree programs:

 

Eastern Michigan University, Integrated Marketing

 

Communications, M.S.

 

Oakland University, Safety Management, M.S.

 

University of Michigan - Dearborn, Master of Science in


 

Management Information Systems, M.S.

 

University of Michigan - Flint, English, M.A.

 

(c) Doctoral degree programs:

 

Michigan Technological University, Atmospheric Sciences, Ph.D.

 

Oakland University, Doctor of Nursing Practice, D.N.P.

 

Oakland University, Music Education, Ph.D.

 

(2) The listing of degree programs in subsection (1) does not

 

constitute legislative intent to provide additional dollars for

 

those programs.

 

(3) When submitting the listing of new degree programs for

 

purposes of section 211(2)(e) in fiscal years after 2007-2008, the

 

presidents council of state universities shall also provide a

 

listing of degree programs that institutions of higher education

 

will no longer offer in subsequent academic years.

 

Sec. 213. The principal executive officer of each institution

 

of higher education receiving an appropriation under this act shall

 

expend a portion of the funds appropriated to that institution to

 

make a report to the auditor general, the house and senate fiscal

 

agencies, and the state budget director within 60 days after the

 

auditor general issues his or her report on the operation of the

 

institution. The institution's report shall specify all of the

 

following:

 

(a) The recommendations of the auditor general implemented by

 

the institution, including projected dates and resources required,

 

if any, to achieve compliance.

 

(b) The recommendations of the auditor general not implemented

 

by the institution or implemented by the institution as modified.


 

(c) The rationale for not implementing a recommendation of the

 

auditor general or of implementing a recommendation as modified.

 

Sec. 214. The auditor general may conduct performance audits

 

of state universities during the fiscal year ending September 30,

 

2008 as the auditor general considers necessary.

 

Sec. 215. An institution of higher education receiving funds

 

under this act and also subject to the student right-to-know and

 

campus security act, Public Law 101-522, 104 Stat. 2381, shall make

 

a copy of all material prepared pursuant to the public information

 

reporting requirements under the crime awareness and campus

 

security act of 1990, title II of the student right-to-know and

 

campus security act, Public Law 101-542, 104 Stat. 2381, available

 

in electronic Internet format on their websites.

 

Sec. 221. Unless otherwise specified, the institutions of

 

higher education receiving appropriations in part 1 shall use the

 

Internet to fulfill the reporting requirements of this part. This

 

requirement may include transmission of reports via electronic mail

 

to the recipients identified for each reporting requirement, or it

 

may include placement of reports on an Internet or Intranet site.

 

Sec. 222. Funds appropriated in part 1 shall not be used for

 

the purchase of foreign goods or services, or both, if

 

competitively priced and of comparable quality American goods and

 

services, or both, are available. Preference should be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses if they are competitively priced and of comparable

 

value.

 

Sec. 223. The funds appropriated in part 1 to state


 

institutions of higher education shall not be used to enter into a

 

lease or to purchase a vehicle produced by a foreign auto

 

manufacturer.

 

Sec. 224. (1) The funds appropriated in part 1 to state

 

institutions of higher education, except for the 1-time

 

supplemental payment described in subsection (2), shall be paid out

 

of the state treasury and distributed by the state treasurer to the

 

respective institutions in 11 equal monthly installments on the

 

sixteenth of each month, or the next succeeding business day,

 

beginning with October 16, 2007. Each institution shall accrue its

 

July and August 2008 payments to its institutional fiscal year

 

ending June 30, 2008.

 

(2) The funds appropriated in part 1 to state institutions of

 

higher education for the 1-time supplemental payment shall be paid

 

out of the state treasury and distributed by the state treasurer to

 

the respective institutions on October 16, 2007. The payment made

 

to each institution shall be equal to the sum of the delayed

 

payment reduction contained in Executive Order 2007-3 and the

 

payment delay reduction contained in section 112 of 2007 PA 17.

 

Each state institution of higher education shall accrue this

 

payment to its institutional fiscal year ending June 30, 2007.

 

(3) All universities shall submit higher education

 

institutional data inventory (HEIDI) data and associated financial

 

and program information requested by and in a manner prescribed by

 

the state budget director by October 15, 2007. If a university

 

fails to submit HEIDI data and associated financial aid program

 

information in accordance with this reporting schedule, the state


 

treasurer shall withhold the monthly installments under subsection

 

(1) to the university until those data are submitted.

 

(4) A detailed description of procedures utilized to arrive at

 

the amounts appropriated in part 1 shall be submitted to each

 

institution by the senate and house fiscal agencies.

 

Sec. 225. Funds received by the state from the federal

 

government or private sources for the use of a college or

 

university are appropriated for the purposes for which they are

 

provided. The acceptance and use of federal or private funds do not

 

place an obligation upon the legislature to continue the purposes

 

for which the funds are made available.

 

Sec. 226. If section 274 of the income tax act of 1967, 1967

 

PA 281, MCL 206.274, is not repealed and if a state institution of

 

higher education that receives funds under this act notifies the

 

department of treasury regarding its tuition and fee rates in order

 

to qualify as an eligible institution for the Michigan tuition tax

 

credit under section 274 of the income tax act of 1967, 1967 PA

 

281, MCL 206.274, the institution shall also submit the

 

notification and applicable documentation of tuition and fee

 

changes to the house and senate fiscal agencies.

 

Sec. 227. A state institution of higher education that

 

receives funds under this act shall furnish all program and

 

financial information that is required by and in a manner

 

prescribed by the state budget director or the house or senate

 

appropriations committee.

 

Sec. 301. (1) From the amount appropriated in part 1 for state

 

universities, the state universities shall systematically inform


 

Michigan high schools regarding the academic status of students

 

from each high school in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the

 

Michigan association of secondary school principals.

 

(2) The Michigan high schools shall systematically inform the

 

state universities about the use of information received under this

 

section in a manner prescribed by the Michigan association of

 

secondary school principals in cooperation with the presidents

 

council, state universities of Michigan.

 

Sec. 302. From the amount appropriated in part 1 for state

 

universities, the state universities shall inform Michigan

 

community colleges regarding the academic status of community

 

college transfer students in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the

 

Michigan community college association.

 

Sec. 401. (1) Included in the appropriation for each state

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks future faculty program, that is intended

 

to increase the pool of academically or economically disadvantaged

 

candidates pursuing faculty teaching careers in postsecondary

 

education. Preference may not be given to applicants on the basis

 

of race, color, ethnicity, gender, or national origin. Institutions

 

should encourage applications from applicants who would otherwise

 

not adequately be represented in the graduate student and faculty

 

populations. Each state university shall apply the percentage

 

change applicable to every state university in the calculation of

 

appropriations in part 1 to the amount of funds allocated to the


 

future faculty program.

 

(2) The program shall be administered by each state university

 

in a manner prescribed by the Michigan department of labor and

 

economic growth. The Michigan department of labor and economic

 

growth shall use a good faith effort standard to evaluate whether a

 

fellowship is in default.

 

Sec. 402. (1) Included in the appropriation for each state

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks college day program that is intended to

 

introduce academically or economically disadvantaged schoolchildren

 

to the potential of a college education. Preference may not be

 

given to participants on the basis of race, color, ethnicity,

 

gender, or national origin. Institutions should encourage

 

participation from those who would otherwise not adequately be

 

represented in the student population.

 

(2) Individual program plans of each state university shall

 

include a budget of equal contributions from this program, the

 

participating state university, the participating school district,

 

and the participating independent degree-granting college. College

 

day funds shall not be expended to cover indirect costs. Not more

 

than 20% of the university match shall be attributable to indirect

 

costs. Each state university shall apply the percentage change

 

applicable to every state university in the calculation of

 

appropriations in part 1 to the amount of funds allocated to the

 

college day program.

 

(3) The program described in this section shall be

 

administered by each state university in a manner prescribed by the


 

Michigan department of labor and economic growth.

 

Sec. 403. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks select student support

 

services program for developing academically or economically

 

disadvantaged student retention programs for 4-year state and

 

independent educational institutions in this state. Preference may

 

not be given to participants on the basis of race, color,

 

ethnicity, gender, or national origin. Institutions should

 

encourage participation from those who would otherwise not

 

adequately be represented in the student population.

 

(2) An award made under this program to any 1 institution

 

shall not be greater than $150,000.00, and the amount awarded shall

 

be matched on a 70% state, 30% college or university basis.

 

(3) The program described in this section shall be

 

administered by the Michigan department of labor and economic

 

growth.

 

Sec. 404. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks college/university

 

partnership program between 4-year state and independent colleges

 

and universities and public community colleges, which is intended

 

to increase the number of academically or economically

 

disadvantaged students who transfer from community colleges into

 

baccalaureate programs. Preference may not be given to participants

 

on the basis of race, color, ethnicity, gender, or national origin.

 

Institutions should encourage participation from those who would

 

otherwise not adequately be represented in the transfer student

 

population.


 

(2) The grants shall be made under the program described in

 

this section to Michigan state and independent colleges and

 

universities. An award to any 1 institution shall not be greater

 

than $150,000.00, and the amount awarded shall be matched on a 70%

 

state, 30% college or university basis.

 

(3) The program described in this section shall be

 

administered by the Michigan department of labor and economic

 

growth.

 

Sec. 405. (1) Included in the appropriation for each state

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks visiting professors program which is

 

intended to increase the number of instructors in the classroom to

 

provide role models for academically or economically disadvantaged

 

students. Preference may not be given to participants on the basis

 

of race, color, ethnicity, gender, or national origin. Institutions

 

should encourage participation from those who would otherwise not

 

adequately be represented in the student population.

 

(2) The program described in this section shall be

 

administered by the Michigan department of labor and economic

 

growth.

 

Sec. 406. (1) Included in the appropriation in part 1 is

 

funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa

 

Parks initiative for the Morris Hood, Jr. educator development

 

program which is intended to increase the number of academically or

 

economically disadvantaged students who enroll in and complete K-12

 

teacher education programs at the baccalaureate level. Preference

 

may not be given to participants on the basis of race, color,


 

ethnicity, gender, or national origin. Institutions should

 

encourage participation from those who would otherwise not

 

adequately be represented in the teacher education student

 

population.

 

(2) The program described in this section shall be

 

administered by each state-approved teacher education institution

 

in a manner prescribed by the Michigan department of labor and

 

economic growth.

 

(3) Approved teacher education institutions may and are

 

encouraged to use student support services funding in coordination

 

with the Morris Hood, Jr. funding to achieve the goals of the

 

program described in this section.

 

Sec. 407. Each state institution of higher education receiving

 

funds under section 403, 404, or 406 shall notify the Michigan

 

department of labor and economic growth by April 15, 2008 as to

 

whether it will expend by the end of its fiscal year the funds

 

received under section 403, 404, or 406. Notwithstanding the award

 

limitations in sections 403 and 404, the amount of funding reported

 

as not being expended will be reallocated to the institutions that

 

intend to expend all funding received under section 403, 404, or

 

406.

 

Sec. 501. (1) Payments of the amounts included in part 1 for

 

the state competitive scholarship program shall be distributed

 

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

 

(2) The Michigan higher education assistance authority shall

 

implement a proportional competitive scholarship maximum award

 

level for recipients enrolled less than full-time in a given


 

semester or term.

 

(3) If a student who receives an award under this section has

 

his or her tuition and fees paid under the Michigan educational

 

trust program, pursuant to the Michigan education trust act, 1986

 

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

 

funds awarded under this section may be used for educational

 

expenses other than tuition and fees.

 

(4) If the Michigan higher education assistance authority

 

increases the maximum award per eligible student from that provided

 

in the previous fiscal year, it shall not have the effect of

 

reducing the number of eligible students receiving awards in

 

relation to the total number of eligible applicants. Any increase

 

in the maximum grant shall be proportional for all eligible

 

students receiving awards.

 

(5) Students who receive aid under 1964 PA 208, MCL 390.971 to

 

390.981, shall be awarded scholarships on the basis of merit and

 

financial need. Veterans administration benefits shall not be

 

considered in determining eligibility under 1964 PA 208, MCL

 

390.971 to 390.981.

 

Sec. 502. (1) The amounts appropriated in part 1 for the state

 

tuition grant program shall be distributed pursuant to 1966 PA 313,

 

MCL 390.991 to 390.997a.

 

(2) Tuition grant awards shall be made to all eligible

 

Michigan residents who apply before July 1, 2007 and who are

 

qualified. Tuition grant awards shall not be made to students newly

 

enrolled in a juris doctor law degree program after the 1995-1996

 

academic year.


 

(3) The Michigan higher education assistance authority shall

 

determine an actual maximum tuition grant award per student, which

 

shall be no less than $2,000.00, that ensures that the aggregate

 

payments for the tuition grant program do not exceed the

 

appropriation contained in part 1 for the state tuition grant

 

program. If the authority determines that insufficient funds are

 

available to establish a maximum award amount of $2,000.00, the

 

authority shall immediately report to the house and senate

 

appropriations subcommittees on higher education, the house and

 

senate fiscal agencies, and the state budget director, regarding

 

the estimated amount of additional funds necessary to establish a

 

$2,000.00 maximum award amount. By December 15, 2007, and again by

 

February 1, 2008, the authority shall analyze the status of award

 

commitments, shall make any necessary adjustments, and shall

 

confirm that those award commitments will not exceed the

 

appropriation contained in part 1 for the tuition grant program.

 

The determination and actions shall be reported to the state budget

 

director and the house and senate fiscal agencies no later than

 

February 15, 2008. If award adjustments are necessary, the students

 

shall be notified of the adjustment by the third Monday in

 

February.

 

(4) The Michigan higher education assistance authority shall

 

continue a proportional tuition grant maximum award level for

 

recipients enrolled less than full-time in a given semester or

 

term.

 

(5) If the Michigan higher education assistance authority

 

increases the maximum award per eligible student from that provided


 

in the previous fiscal year, it shall not have the effect of

 

reducing the number of eligible students receiving awards in

 

relation to the total number of eligible applicants. Any increase

 

in the maximum grant shall be proportional for all eligible

 

students receiving awards for fiscal year 2007-2008.

 

Sec. 503. (1) Included in the appropriation in part 1 is

 

funding for the Michigan work-study program established under 1986

 

PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to

 

390.1332. An effort should be made by each institution

 

participating in the Michigan work-study program to assure that not

 

less than 10% of those undergraduate, graduate, and professional

 

students eligible to participate in the program are placed with

 

for-profit employers no later than December 31 of each year for

 

which funding is provided under this act.

 

(2) The Michigan higher education assistance authority shall

 

allocate funds to institutions eligible for work-study money based

 

upon each institution's specific Pell grant index and each

 

institution's utilization rate of work-study funds for the 3 most

 

recent years for which statistics are available.

 

(3) The Michigan higher education assistance authority shall

 

set aside not more than 5% of the total work-study appropriation to

 

process requests from participating institutions for allocation

 

adjustments. Allocation adjustments shall be based on criteria set

 

by the authority prior to making the allocations under subsection

 

(2).

 

Sec. 504. The auditor general may audit selected enrollments,

 

degrees, and awards at selected independent colleges and


 

universities receiving awards administered by the department of

 

treasury. The audits shall be based upon definitions and

 

requirements established by the Michigan higher education

 

assistance authority, the state budget director, and the senate and

 

house fiscal agencies. The auditor general shall accept the Free

 

Application for Federal Student Aid (FAFSA) form as the standard of

 

residency documentation. The auditor general shall submit a report

 

of findings to the senate and house appropriations committees and

 

state budget director by May 1, 2008.

 

Sec. 505. The sums appropriated in part 1 for the student

 

financial aid programs shall be paid out of the state treasury and

 

shall be distributed to the respective institutions under a

 

quarterly payment system as follows:

 

(a) For the state competitive scholarship, nursing

 

scholarship, tuition incentive, and tuition grant programs, 40%

 

shall be paid at the beginning of the state's first fiscal quarter,

 

40% at the beginning of the state's second fiscal quarter, l0% at

 

the beginning of the state's third fiscal quarter, and l0% at the

 

beginning of the state's fourth fiscal quarter.

 

(b) For the work-study program, payments shall be made in 11

 

monthly installments from October 1 to August 31 of any year.

 

(c) For the part-time independent student program and the

 

Michigan education opportunity grant program, 50% shall be paid at

 

the beginning of the state's first fiscal quarter, 25% at the

 

beginning of the state's second fiscal quarter, and 25% at the

 

beginning of the state's third fiscal quarter.

 

(d) For the Robert C. Byrd honors scholarship program, 50%


 

shall be paid at the beginning of the state's first fiscal quarter

 

and 50% at the beginning of the state's second fiscal quarter.

 

Sec. 506. The Michigan higher education assistance authority

 

shall determine the needs analysis criteria for students to qualify

 

for the state competitive scholarship program and tuition grant

 

program. To be consistent with federal requirements, student wages

 

may be taken into consideration when determining the amount of the

 

award.

 

Sec. 507. (1) The funds appropriated in part 1 for the tuition

 

incentive program shall be distributed as provided in this section

 

and pursuant to the administrative procedures for the tuition

 

incentive program of the department of treasury.

 

(2) As used in this section:

 

(a) "Phase I" means the first part of the tuition incentive

 

assistance program defined as the academic period of 80 semester or

 

120 term credits, or less, leading to an associate degree or

 

certificate.

 

(b) "Phase II" means the second part of the tuition incentive

 

assistance program which provides assistance in the third and

 

fourth year of 4-year degree programs.

 

(c) "Department" means the department of treasury.

 

(3) A person shall meet the following basic criteria and

 

financial thresholds to be eligible for tuition incentive benefits:

 

(a) To be eligible for phase I, a person shall meet all of the

 

following criteria:

 

(i) Apply for certification to the department before graduating

 

from high school or completing the general education development


 

(GED) certificate.

 

(ii) Be less than 20 years of age at the time of high school

 

graduation or GED completion.

 

(iii) Be a United States citizen and a resident of Michigan

 

according to institutional criteria.

 

(iv) Be at least a half-time student, earning less than 80

 

semester or 120 term credits at a participating educational

 

institution within 4 years of high school graduation or GED

 

certificate completion.

 

(v) Request information on filing a FAFSA.

 

(b) To be eligible for phase II, a person shall meet either of

 

the following criteria in addition to the criteria in subdivision

 

(a):

 

(i) Complete at least 56 transferable semester or 84

 

transferable term credits.

 

(ii) Obtain an associate degree or certificate at a

 

participating institution.

 

(c) To be eligible for phase I or phase II, a person must be

 

financially eligible as determined by the department. A person is

 

financially eligible for the tuition incentive program if that

 

person was Medicaid eligible for 24 months within the 36 months

 

before application. Certification of eligibility may begin in the

 

sixth grade.

 

(4) For phase I, the department shall provide payment on

 

behalf of a person eligible under subsection (3). The department

 

shall reject billings that are excessive or outside the guidelines

 

for the type of educational institution.


 

(5) For phase I, all of the following apply:

 

(a) Payments for associate degree or certificate programs

 

shall not be made for more than 80 semester or 120 term credits for

 

any individual student at any participating institution.

 

(b) For persons enrolled at a Michigan community college, the

 

department shall pay the current in-district tuition and mandatory

 

fees. For persons residing in an area that is not included in any

 

community college district, the out-of-district tuition rate may be

 

authorized.

 

(c) For persons enrolled at a Michigan public university, the

 

department shall pay lower division resident tuition and mandatory

 

fees for the current year.

 

(d) For persons enrolled at a Michigan independent, nonprofit

 

degree-granting college or university, or a Michigan federal

 

tribally controlled community college, or Focus: HOPE, the

 

department shall pay mandatory fees for the current year and a per-

 

credit payment that does not exceed the average community college

 

in-district per-credit tuition rate as reported on August 1, for

 

the immediately preceding academic year.

 

(6) A person participating in phase II may be eligible for

 

additional funds not to exceed $500.00 per semester or $400.00 per

 

term up to a maximum of $2,000.00 subject to the following

 

conditions:

 

(a) Credits are earned in a 4-year program at a Michigan

 

degree-granting 4-year college or university.

 

(b) The tuition reimbursement is for coursework completed

 

within 30 months of completion of the phase I requirements.


 

(7) The department shall work closely with participating

 

institutions to develop an application and eligibility

 

determination process that will provide the highest level of

 

participation and ensure that all requirements of the program are

 

met.

 

(8) Applications for the tuition incentive program may be

 

approved at any time after the student begins the sixth grade. If a

 

determination of financial eligibility is made, that determination

 

is valid as long as the student meets all other program

 

requirements and conditions.

 

(9) Each institution shall ensure that all known available

 

restricted grants for tuition and fees are used prior to billing

 

the tuition incentive program for any portion of a student's

 

tuition and fees.

 

(10) The department shall ensure that the tuition incentive

 

program is well publicized and that potentially eligible Medicaid

 

clients are provided information on the program. The department

 

shall provide the necessary funding and staff to fully operate the

 

program.

 

(11) A person enrolled in an institution whose primary purpose

 

is to prepare students for ordination or appointment as a member of

 

the clergy of a church, denomination, or religious association,

 

order, or sect is not eligible for an award under the tuition

 

incentive program described in this section.

 

Sec. 508. To enable the legislature and the state budget

 

director to evaluate the appropriation needs of higher education,

 

each independent college and university shall make available to the


 

legislature or state budget director, upon request, data regarding

 

grants for the preceding, current, and ensuing fiscal years.

 

Sec. 509. From the funds appropriated in part 1 for nursing

 

scholarship and grant programs, the Michigan higher education

 

assistance authority shall administer any nursing scholarship or

 

nursing school grant programs authorized under the Michigan nursing

 

scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.

 

Sec. 510. By December 1 of each year, the Michigan higher

 

education assistance authority shall submit a report to the state

 

budget director, the house and senate appropriations subcommittees

 

on higher education, and the house and senate fiscal agencies for

 

the preceding fiscal year on the children of veterans tuition grant

 

program. The report shall include, but is not limited to, the total

 

number of tuition grants paid by the authority in the preceding

 

fiscal year, the total dollar amount of those tuition grants, and

 

the number of students receiving tuition grants and the total

 

amount of those tuition grants at each eligible institution.

 

Sec. 601. The funds appropriated in part 1 for higher

 

education database modernization and conversion shall be expended

 

to maintain, coordinate, and improve the higher education

 

institutional data inventory (HEIDI) established under section 1299

 

of the management and budget act, 1984 PA 431, MCL 18.1299. The

 

advisory committee established under that section shall meet

 

regularly to review data definitions and requirements in order to

 

advise the state budget director regarding changes to those

 

definitions and requirements that would result in more useful and

 

reliable data being provided to state policymakers and university


 

officials.

 

Sec. 602. (1) It is the legislative intent that private

 

bookstores that sell textbooks to university students and student

 

governments that provide a book swap for university students have

 

accurate and timely access to lists of universities' required

 

textbooks in order to provide prompt and efficient service for

 

students. It is further the legislative intent that each state

 

university allow students who are on financial aid or are receiving

 

tuition grants to decide where to purchase their textbooks.

 

(2) It is the intent of the legislature that each state

 

university that provides for the use of funds in a university-

 

administered account or financial aid for the purchase of required

 

textbooks and supplies at bookstores operated by or affiliated with

 

the university also provide for the use of funds in a university-

 

administered account or financial aid at bookstores providing

 

required textbooks or supplies that are not operated by or

 

affiliated with the university. A state university may require

 

bookstores not operated by or affiliated with the university to

 

reimburse the university for any reasonable costs attributable to

 

these transactions and to pay a reasonable rate or commission to

 

the university.

 

Sec. 603. (1) It is the intent of the legislature that if any

 

state university increases its resident undergraduate tuition and

 

required fees from academic year 2006-2007 to academic year 2007-

 

2008, then that university shall increase its fiscal year 2007-2008

 

general fund expenditures for student financial aid by at least the

 

same percentage as the percentage change in resident undergraduate


 

tuition and required fees. Each state university shall report its

 

proposed fiscal year 2007-2008 general fund expenditures for

 

student financial aid compared to its projected fiscal year 2006-

 

2007 general fund expenditures for student financial aid, and its

 

projected academic year 2007-2008 resident undergraduate tuition

 

and required fee changes from academic year 2006-2007, to the state

 

budget director and the house and senate appropriations

 

subcommittees on higher education by November 15, 2007.

 

(2) It is the intent of the legislature that, from the

 

increase in university operations appropriations from fiscal year

 

2006-2007 to fiscal year 2007-2008, each state university utilize a

 

portion of the increase to provide savings to students through

 

rebates, reductions in tuition and fee charges, or financial aid

 

awards. Each state university shall report on the amount and method

 

of student savings under this subsection to the house and senate

 

appropriations committees, house and senate fiscal agencies, and

 

state budget director by December 1, 2007.

 

Sec. 604. All universities shall submit the amount of tuition

 

and fees actually charged to a full-time resident undergraduate

 

student for academic year 2007-2008 as part of their higher

 

education institutional data inventory (HEIDI) data by August 31,

 

2007. A university shall report any revisions for any semester of

 

the reported academic year 2007-2008 tuition and fee charges to

 

HEIDI within 15 days of being adopted.

 

Sec. 605. From the amount appropriated in part 1 to Lake

 

Superior State University for operations, $100,000.00 shall be paid

 

to Bay Mills Community College for the costs of waiving tuition for


 

North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

 

Sec. 606. It is the intent of the legislature that each state

 

university receiving an appropriation in part 1 consider developing

 

an education program on recognizing depression and mental health

 

disorders and preventing suicide and violence and providing that

 

program annually to students, beginning with any freshman

 

orientation.

 

Sec. 607. (1) From the funds appropriated to state

 

universities in part 1, the amounts below shall be expended for

 

efforts to commercialize technology developed through university

 

research:

 

Central Michigan University................. $148,000.00

 

Eastern Michigan University ................. 199,300.00

 

Grand Valley State University................. 25,600.00

 

Michigan Technological University............ 947,400.00

 

Oakland University........................... 268,400.00

 

University of Michigan Dearborn............ 139,900.00

 

University of Michigan Flint................ 40,800.00

 

Western Michigan University.................. 574,700.00

 

(2) Each university receiving funds designated under

 

subsection (1) shall report to the house and senate appropriations

 

subcommittees on higher education, the house and senate fiscal

 

agencies, and the state budget director by May 1, 2007, regarding

 

efforts and expenditures under subsection (1).

 

(3) It is the intent of the legislature that, in future budget

 

years, a portion of state university appropriation amounts will be

 

based on uniform statewide data on research commercialization


 

efforts and outcomes, rather than federal research funding data.

 

Sec. 608. Beginning with the fall semester 2008, a state

 

university receiving appropriations in part 1 shall have its

 

appropriation reduced by 15% if it does not admit a student as an

 

undergraduate who meets all of the following conditions:

 

(a) The student graduates from a Michigan high school with a

 

grade point average in the top 10% of his or her high school

 

graduating class.

 

(b) The student applies for admission to the university.

 

(c) The student meets the minimum admissions standards of that

 

university.