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SB-0178, As Passed Senate, April 27, 2011

SUBSTITUTE FOR

SENATE BILL NO. 178

A bill to make appropriations for the state institutions of

higher education and certain state purposes related to education

for the fiscal year ending September 30, 2012; to provide for the

expenditures of those appropriations; to provide anticipated

appropriations for the fiscal year ending September 30, 2013; 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

FOR FISCAL YEAR 2011-2012

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

amounts listed in this part are appropriated for higher education

for the fiscal year ending September 30, 2012, from the funds

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

appropriations in this part:

HIGHER EDUCATION

APPROPRIATION SUMMARY

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

GROSS APPROPRIATION.................................... $ 1,362,278,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 1,362,278,400

Federal revenues:

Total federal revenues................................. 98,326,400

Special revenue funds:

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

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

Total other state restricted revenues.................. 200,200,000

State general fund/general purpose..................... $ 1,063,752,000

Sec. 102. CENTRAL MICHIGAN UNIVERSITY

Operations............................................. $ 68,108,900

GROSS APPROPRIATION.................................... $ 68,108,900

Appropriated from:

Special revenue funds:

State school aid fund.................................. 11,283,500

State general fund/general purpose..................... $ 56,825,400

Sec. 103. EASTERN MICHIGAN UNIVERSITY

Operations............................................. $ 64,619,100

GROSS APPROPRIATION.................................... $ 64,619,100

Appropriated from:

Special revenue funds:

State school aid fund.................................. 10,705,300

State general fund/general purpose..................... $ 53,913,800

Sec. 104. FERRIS STATE UNIVERSITY

Operations............................................. $ 41,324,300

GROSS APPROPRIATION.................................... $ 41,324,300

Appropriated from:

Special revenue funds:

State school aid fund.................................. 6,846,100

State general fund/general purpose..................... $ 34,478,200

Sec. 105. GRAND VALLEY STATE UNIVERSITY

Operations............................................. $ 52,677,400

GROSS APPROPRIATION.................................... $ 52,677,400

Appropriated from:

Special revenue funds:

State school aid fund.................................. 8,727,000

State general fund/general purpose..................... $ 43,950,400

Sec. 106. LAKE SUPERIOR STATE UNIVERSITY

Operations............................................. $ 10,789,500

GROSS APPROPRIATION.................................... $ 10,789,500

Appropriated from:

Special revenue funds:

State school aid fund.................................. 1,787,500

State general fund/general purpose..................... $ 9,002,000

Sec. 107. MICHIGAN STATE UNIVERSITY

Operations............................................. $ 241,120,800

Agriculture experiment and cooperative extension

activities........................................... 52,625,800

GROSS APPROPRIATION.................................... $ 293,746,600

Appropriated from:

Special revenue funds:

State school aid fund.................................. 39,946,000

State general fund/general purpose..................... $ 253,800,600

Sec. 108. MICHIGAN TECHNOLOGICAL UNIVERSITY

Operations............................................. $ 40,733,600

GROSS APPROPRIATION .................................. 40,733,600

Appropriated from:

Special revenue funds:

State school aid fund.................................. 6,748,200

State general fund/general purpose..................... $ 33,985,400

Sec. 109. NORTHERN MICHIGAN UNIVERSITY

Operations............................................. $ 38,367,400

GROSS APPROPRIATION.................................... $ 38,367,400

Appropriated from:

Special revenue funds:

State school aid fund.................................. 6,356,200

State general fund/general purpose..................... $ 32,011,200

Sec. 110. OAKLAND UNIVERSITY

Operations............................................. $ 43,145,000

GROSS APPROPRIATION.................................... $ 43,145,000

Appropriated from:

Special revenue funds:

State school aid fund.................................. 7,147,700

State general fund/general purpose..................... $ 35,997,300

Sec. 111. SAGINAW VALLEY STATE UNIVERSITY

Operations............................................. $ 23,561,500

GROSS APPROPRIATION.................................... $ 23,561,500

Appropriated from:

Special revenue funds:

State school aid fund.................................. 3,903,400

State general fund/general purpose..................... $ 19,658,100

Sec. 112. UNIVERSITY OF MICHIGAN - ANN ARBOR

Operations............................................. $ 268,803,300

GROSS APPROPRIATION.................................... $ 268,803,300

Appropriated from:

Special revenue funds:

State school aid fund.................................. 44,532,000

State general fund/general purpose..................... $ 224,271,300

Sec. 113. UNIVERSITY OF MICHIGAN - DEARBORN

Operations............................................. $ 21,016,300

GROSS APPROPRIATION.................................... $ 21,016,300

Appropriated from:

Special revenue funds:

State school aid fund.................................. 3,481,700

State general fund/general purpose..................... $ 17,534,600

Sec. 114. UNIVERSITY OF MICHIGAN - FLINT

Operations............................................. $ 17,762,400

GROSS APPROPRIATION.................................... $ 17,762,400

Appropriated from:

Special revenue funds:

State school aid fund.................................. 2,942,700

State general fund/general purpose..................... $ 14,819,700

Sec. 115. WAYNE STATE UNIVERSITY

Operations............................................. $ 182,036,900

GROSS APPROPRIATION.................................... $ 182,036,900

Appropriated from:

Special revenue funds:

State school aid fund.................................. 30,157,700

State general fund/general purpose..................... $ 151,879,200

Sec. 116. WESTERN MICHIGAN UNIVERSITY

Operations............................................. $ 93,168,300

GROSS APPROPRIATION.................................... $ 93,168,300

Appropriated from:

Special revenue funds:

State school aid fund.................................. 15,435,000

State general fund/general purpose..................... $ 77,733,300

Sec. 117. STATE AND REGIONAL PROGRAMS

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

Higher education database modernization and

conversion--1.0 FTE position......................... $ 105,000

Midwestern higher education compact.................... 95,000

GROSS APPROPRIATION.................................... $ 200,000

Appropriated from:

Special revenue funds:

State general fund/general purpose..................... $ 200,000

Sec. 118. 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. 119. GRANTS AND FINANCIAL AID

State competitive scholarships......................... $ 19,861,700

Tuition grants......................................... 31,664,700

Tuition incentive program.............................. 43,800,000

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

Children of veterans and officer's survivor tuition

grant programs....................................... 1,200,000

Project GEAR-UP........................................ 1,500,000

GROSS APPROPRIATION.................................... $ 99,526,400

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.......... 1,500,000

Social security act, temporary assistance for needy

families............................................. 93,826,400

Special revenue funds:

Contributions to children of veterans tuition grant

program.............................................. 200,000

State general fund/general purpose..................... $ 1,000,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2011-2012

GENERAL SECTIONS

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

constitution of 1963, total state spending from state resources

under this act for fiscal year 2011-2012 is $1,263,952,000.00 and

state spending from state resources to be paid to local units of

government for fiscal year 2011-2012 is $0.

Sec. 202. The appropriations authorized under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 203. As used in this act, "research university" means a

public university classified as a "research university (high or

very high research activity)" under the classification of

institutions of higher education conducted by the Carnegie

foundation.

Sec. 208. Unless otherwise specified, public universities

receiving appropriations in part 1 shall use the Internet to

fulfill the reporting requirements of this act. 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. 209. 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 shall be given to

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

businesses if they are competitively priced and of comparable

value. In addition, preference shall be given to goods or services,

or both, that are manufactured or provided by Michigan businesses

owned and operated by veterans if they are competitively priced and

of comparable quality.

Sec. 210. It is the intent of the legislature that 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

assembled or manufactured outside of the United States, and that

preference be given to vehicles assembled or manufactured in

Michigan.

Sec. 211. The principal executive officer of each public

university receiving appropriations in part 1 shall take all

reasonable steps to ensure that businesses in deprived and

depressed communities compete for and perform contracts to provide

services, supplies, or both. Each principal executive officer shall

strongly encourage firms with which the university contracts to

subcontract with businesses in depressed and deprived communities

for services, supplies, or both.

Sec. 212. (1) The funds appropriated in part 1 to public

universities 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, 2011.

Except for Wayne State University, each institution shall accrue

its July and August 2012 payments to its institutional fiscal year

ending June 30, 2012.

(2) All public 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. For public universities with fiscal

years ending June 30, 2011, these data shall be submitted to the

state budget director by October 15, 2011. Public universities with

a fiscal year ending September 30, 2011 shall submit preliminary

HEIDI data by November 15, 2011 and final data by December 15,

2011. If a public 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 public university

until those data are submitted.

Sec. 213. 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. 215. A public university 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. 216. A public university receiving funds in part 1 shall

cooperate with all measures taken by the state to establish a

statewide P-20 education longitudinal data system to comply with

the state fiscal stabilization fund provisions of the American

recovery and reinvestment act of 2009, Public Law 111-5.

Sec. 218. In an effort to better improve transparency and to

further identify effective educational practices, it is the intent

of the legislature that a public university receiving an

appropriation in part 1 shall develop, post, and maintain a user-

friendly and publicly accessible Internet site, with all

expenditures made by the university within a fiscal year. The

posting must include the purpose for which the expenditure is made.

A public university shall not provide financial information on its

website under this section if doing so would violate a federal or

state law, rule, regulation, or guideline that establishes privacy

or security standards applicable to that section.

GRANTS AND FINANCIAL AID

Sec. 301. (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) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the

department of treasury shall determine an actual maximum state

competitive scholarship award per student, which shall be no less

than $1,300.00, that ensures that the aggregate payments for the

state competitive scholarship program do not exceed the

appropriation contained in part 1 for the state competitive

scholarship program. If the department determines that insufficient

funds are available to establish a maximum award amount equal to at

least $1,300.00, the department 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 $1,300.00 maximum award amount.

(3) The department of treasury shall implement a proportional

competitive scholarship maximum award level for recipients enrolled

less than full-time in a given semester or term.

(4) 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.

(5) If the department of treasury 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.

(6) Veterans administration benefits shall not be considered

in determining eligibility for the award of scholarships under 1964

PA 208, MCL 390.971 to 390.981.

Sec. 302. (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 enrolled in undergraduate degree programs who

apply before July 1, 2011 and who are qualified.

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsection (7), the department of treasury shall

determine an actual maximum tuition grant award per student, which

shall be no less than $2,100.00, 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 department determines that insufficient funds are

available to establish a maximum award amount equal to at least

$2,100.00, the department 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

$2,100.00 maximum award amount. By December 15, 2011, and again by

February 1, 2012, the department 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, 2012. If award adjustments are necessary, the students

shall be notified of the adjustment by the third Monday in

February.

(4) Any unexpended and unencumbered funds remaining on

September 30, 2012 from the amounts appropriated in part 1 for the

tuition grant program shall not lapse on September 30, 2012, but

shall continue to be available for expenditure for tuition grants

provided in the 2012-2013 fiscal year under a work project account.

The use of these unexpended fiscal year 2011-2012 funds shall

terminate at the end of the 2012-2013 fiscal year.

(5) The department of treasury shall continue a proportional

tuition grant maximum award level for recipients enrolled less than

full-time in a given semester or term.

(6) If the department of treasury 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 2011-2012.

(7) The department of treasury shall not award more than

$3,000,000.00 in tuition grants to eligible students enrolled in

the same independent nonprofit college or university in this state.

Any decrease in the maximum grant shall be proportional for all

eligible students enrolled in that college or university, as

determined by the department.

Sec. 307. 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 department of treasury, 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, 2012.

Sec. 308. 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, 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 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. 309. The department of treasury 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. 310. (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.

(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.

be incarcerated and 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.

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 eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

Sec. 311. 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. 315. By February 15 of each year, the department of

treasury 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 all student financial aid programs for which funds are

appropriated in part 1. For each student financial aid program, the

report shall include, but is not limited to, the total number of

awards paid in the preceding fiscal year, the total dollar amount

of those awards, and the number of students receiving awards and

the total amount of those awards at each eligible postsecondary

institution. To the extent information is available, the report

shall also include information on the average exam performance,

household income, and other demographic characteristics of students

receiving awards under each program and historical information on

the number of awards and total award amounts for each program.

UNIVERSITY OPERATIONS

Sec. 402. The University of Michigan biological station at

Douglas Lake in Cheboygan County is regarded as a unique resource

and is designated as a special research reserve. It is the intent

of the legislature to protect and preserve the unique long-term

research value and capabilities of the biological station area and

Douglas Lake. The legislature further intends that no state

programs or policies be developed that would have a deleterious

impact on the research value of Douglas Lake.

Sec. 426. (1) It is the intent of the legislature that each

public university shall develop policies for minimizing the cost of

textbooks and course materials used at the university while

maintaining quality of education and academic freedom. These

policies should require all of the following:

(a) That faculty members submit lists of required textbooks

and course materials for university review.

(b) That faculty members consider the least costly practices

in assigning textbooks and course materials, such as adopting the

least expensive edition of a textbook available when educational

content is comparable to a more costly edition.

conflict of interest that may occur if a faculty member requires

the purchase of any textbooks or course materials he or she has

written.

(2) By February 1, 2012, each public university shall submit a

report to the house and senate appropriations subcommittees on

higher education and the house and senate fiscal agencies on the

policies developed pursuant to this section.

Sec. 433. (1) Included in the appropriation in part 1 for

agricultural experiment and cooperative extension activities is

$5,628,100.00 for project GREEEN. Project GREEEN is intended to

address critical regulatory, food safety, economic, and

environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for generating research and extension to meet environmental

and economic needs.

(2) The department of agriculture and rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

project GREEEN and its program priorities.

(3) By September 30, 2012, Michigan State University shall

submit a report to the house and senate appropriations

subcommittees on agriculture and on higher education, the house and

senate standing committees on agriculture, the house and senate

fiscal agencies, and the state budget director for the preceding

school fiscal year regarding expenditures and programmatic outcomes

of the agricultural experiment station and cooperative extension

service. The report shall include, but is not limited to:

(a) Total funds expended by the agricultural experiment

station and cooperative extension service identified by state,

local, private, federal, and university fund sources.

(b) The dollar amount of each project GREEEN project and a

review of each project's performance and accomplishments.

development project and a review of each project's performance and

accomplishments.

(d) The dollar amount and description of all other individual

programs and services provided by the agricultural experiment

station and cooperative extension service and a review of each

project's performance and accomplishments.

(e) The number of businesses created or that had increased

employment and the number of patents generated as a result of work

conducted by the agricultural experiment station and cooperative

extension service.

Sec. 433a. (1) Annually, in partnership with stakeholders of

the agricultural experiment station and cooperative extension

service, Michigan State University shall develop a set of research

and extension priorities. As a part of this effort, Michigan State

University and the department of agriculture and rural development,

in partnership with the agriculture industry, shall convene a

summit to set priorities for research and extension regarding

production agriculture.

(2) Not later than September 30, 2012, Michigan State

University shall submit a report to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

the house and senate fiscal agencies, and the state budget director

for the preceding school fiscal year detailing, but not limited to:

(a) Total funds expended by the agricultural experiment

station and by the cooperative extension service identified by

state, local, private, federal, and university fund sources.

(b) A review of major programs within both the agricultural

experiment station and the cooperative extension service with

specific reference to accomplishments and impacts.

Sec. 434. Included in the appropriation in part 1 for Michigan

State University is $80,000.00 for the Michigan future farmers of

America association. This $80,000.00 appropriation shall not

supplant any existing support that Michigan State University

provides to the Michigan future farmers of America association.

Sec. 436. (1) It is the intent of the legislature that, if any

public university increases its resident undergraduate tuition and

required fees from academic year 2010-2011 to academic year 2011-

2012, then that university shall increase its fiscal year 2010-2011

general fund expenditures for student financial aid by at least the

same percentage as the percentage change in resident undergraduate

tuition and required fees. It is the intent of the legislature that

public universities place an emphasis on increasing the number of

institutional financial aid awards that are based on demonstrated

financial need.

(2) Each public university shall report the following

information to the house and senate appropriations subcommittees on

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

state budget director by November 1, 2011:

(a) Actual academic year 2010-2011 and academic year 2011-2012

average tuition and required fee charges for a full-time resident

undergraduate student.

(b) Actual fiscal year 2010-2011 and budgeted fiscal year

2011-2012 total general fund tuition and fee revenue.

2011-2012 total general fund revenue.

(d) Actual fiscal year 2010-2011 and budgeted fiscal year

2011-2012 general fund expenditures for student financial aid.

(e) Actual fiscal year 2010-2011 and budgeted fiscal year

2011-2012 total general fund expenditures.

(f) Actual fiscal year 2010-2011 and projected fiscal year

2011-2012 total fiscal year equated student enrollment.

(3) The state budget director shall, in consultation with the

house and senate fiscal agencies, develop a uniform reporting

mechanism based on standard definitions for public universities to

comply with the reporting requirements of subsection (2).

Sec. 440. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year 2011-2012 as part of their

higher education institutional data inventory (HEIDI) data by

August 31, 2011. A public university shall report any revisions for

any semester of the reported academic year 2011-2012 tuition and

fee charges to HEIDI within 15 days of being adopted.

Sec. 451. For the fiscal year ending September 30, 2012, it is

the intent of the legislature that funds be allocated for unfunded

North American Indian tuition waiver costs incurred by public

universities under 1976 PA 174, MCL 390.1251 to 390.1253, from the

general fund/general purpose.

Sec. 460. From the amount appropriated in part 1 to Central

Michigan University for operations, $29,700.00 shall be paid to

Saginaw Chippewa Tribal College for the costs of waiving tuition

for North American Indians under 1976 PA 174, MCL 390.1251 to

390.1253.

Sec. 461. 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. 466. Public universities shall coordinate their purchases

of goods and services whenever possible. This may include, but is

not limited to, group purchases for vehicles, utilities, supplies,

electronic equipment, maintenance equipment, books, and contractual

services. To the extent possible, the public universities shall use

both the "Michigan delivering extended agreements locally" (MiDEAL)

purchasing services of the state department of technology,

management, and budget that makes state contracts available to

local units of government, colleges, and universities and the

purchasing services available through the state's membership in the

Midwestern Higher Education Compact (MHEC). Not later than January

1 of each year, the presidents council, state universities of

Michigan shall submit to the members of the house and senate

appropriations subcommittees on higher education, the house and

senate fiscal agencies, and the state budget director a report on

group or pooled purchases and the savings achieved by the public

universities in the previous fiscal year.

Sec. 469. By November 14, 2011, each public university

receiving an appropriation in part 1 shall report the number of

undergraduate students who graduated in academic year 2010-2011 and

received a Pell grant at any time during their enrollment at that

university to the members of the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director.

Sec. 472. It is the intent of the legislature that each public

university shall submit a report to the house and senate

appropriations committees, the house and senate fiscal agencies,

and the state budget director by October 15, 2011, on the

university's efforts to accommodate the sincerely held religious

beliefs of students enrolled in accredited counseling degree

programs at the university.

Sec. 473. It is the intent of the legislature that each public

university that has received a donation of human embryos that is

subject to section 27 of article I of the state constitution of

1963, or that is conducting ongoing research using human embryonic

stem cells derived from donated human embryos pursuant to section

27 of article I of the state constitution of 1963, shall submit a

report to the director of the department of community health by

December 1, 2011 that includes all of the following:

(a) The number of human embryos and the number of human embryo

stem cell lines received by the university during fiscal year 2010-

2011.

(b) The number of human embryos utilized for research purposes

during fiscal year 2010-2011.

the embryos received during fiscal year 2010-2011.

(d) The number of donated human embryos being held in storage

by the university as of September 30, 2011.

(e) The number of research projects using human embryonic stem

cells derived from donated embryos being conducted by the

university.

Sec. 480. (1) It is the intent of the legislature that each

public university receiving an appropriation in part 1 do all of

the following:

(a) Meet the provisions of section 5003 of the post-911

veterans educational assistance act of 2008, title V of Public Law

110-252, 38 USC 3301 to 3324, including voluntary participation in

the yellow ribbon GI education enhancement program established in

that act in 38 USC 3317. By October 1 of each year, each public

university shall report to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the presidents council, state universities of

Michigan on whether or not it has chosen to participate in the

yellow ribbon GI education enhancement program. If at any time

during the fiscal year a university participating in the yellow

ribbon program chooses to leave the yellow ribbon program, it shall

notify the house and senate appropriations subcommittees on higher

education, the house and senate fiscal agencies, and the presidents

council, state universities of Michigan.

(b) Establish an on-campus veterans' liaison to provide

information and assistance to all student veterans.

veterans.

(2) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, title V of Public Law 110-252, 38 USC 3301

to 3324.

Sec. 482. Funds appropriated in part 1 shall not be used to

pay for the construction or maintenance of a self-liquidating

project. A public university shall comply with the current use and

finance requirements of the joint capital outlay subcommittee

(JCOS) for any construction, renovation, or other capital outlay

projects pursuant to JCOS policy. The appropriation in part 1 for a

public university that fails to comply with JCOS reporting

requirements shall be reduced by 1% for each violation.

Sec. 483. (1) If the combined total of the maximum amount

appropriated under this act from the state school aid fund for

fiscal year 2011-2012 and the maximum amounts appropriated under

the public acts making appropriations for K-12 state school aid and

community colleges for that fiscal year exceeds the amount

available for expenditure from the state school aid fund for that

fiscal year, payments under this act are subject to the proration

provided under this subsection and subsection (2). If proration is

necessary, state payments under this act from the state school aid

fund shall be prorated in the manner prescribed in subsection (2)

as necessary to reflect the amount available for expenditure from

the state school aid fund for fiscal year 2011-2012. However, if

the department of treasury determines that proration will be

required under this section, or if the department of treasury

determines that further proration is required under this section

after an initial proration has already been made for a fiscal year,

the department of treasury shall notify the state budget director,

and the state budget director shall notify the legislature in the

manner provided for proration under section 11 of the state school

aid act of 1979, 1979 PA 94, MCL 388.1611, and the legislature may

take action to prevent the proration as described in that section.

(2) If proration is necessary under subsection (1), the

department of treasury shall calculate the proration in payments

under this act that is required under subsection (1) as follows:

(a) The department of treasury shall calculate the percentage

of total state school aid allocated under this act and the public

acts making appropriations for K-12 state school aid and community

colleges for the affected fiscal year that is used for payments for

higher education under this act.

(b) The department of treasury shall recover a percentage of

the total proration amount required under subsection (1) that is

equal to the percentage calculated under subdivision (a) by

reducing payments to public universities under this act on an equal

percentage basis.

STATE AND REGIONAL PROGRAMS

Sec. 490. 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.

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

Sec. 501. (1) Included in the appropriation for each public

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 public university shall apply the percentage

change applicable to every public 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 public

university in a manner prescribed by the Michigan department of

energy, labor, and economic growth. The Michigan department of

energy, labor, and economic growth shall use a good faith effort

standard to evaluate whether a fellowship is in default.

Sec. 502. (1) Included in the appropriation for each public

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. Public universities should encourage

participation from those who would otherwise not adequately be

represented in the student population.

(2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public 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 public university shall apply the percentage change

applicable to every public 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 public university in a manner prescribed by

the Michigan department of energy, labor, and economic growth.

Sec. 503. (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 public 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 energy, labor, and

economic growth.

Sec. 504. (1) Included in part 1 is funding for the Martin

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

partnership program between 4-year public 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 public 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 energy, labor, and

economic growth.

Sec. 505. (1) Included in the appropriation for each public

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. Public

universities 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 energy, labor, and

economic growth.

Sec. 506. (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 energy, 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. 507. Each institution receiving funds under section 503,

504, or 506 shall notify the Michigan department of energy, labor,

and economic growth by April 15, 2012 as to whether it will expend

by the end of its fiscal year the funds received under section 503,

504, or 506. Notwithstanding the award limitations in sections 503

and 504, the amount of funding reported as not being expended will

be reallocated to the institutions that intend to expend all

funding received under section 503, 504, or 506.

STUDENT PERFORMANCE REPORTING

Sec. 601. (1) From the amount appropriated in part 1, the

public 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

public 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. 602. From the amount appropriated in part 1, the public

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. 603. Public universities shall work with the state

community colleges to encourage the transfer of students from the

community colleges to the state universities and to facilitate the

transfer of credits from the community colleges to the public

universities.

GENERAL REPORTS AND AUDITS

Sec. 701. (1) The auditor general shall review higher

education institutional data inventory (HEIDI) enrollment data

submitted by all public universities and may perform audits of

selected public 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 house and senate fiscal agencies in consultation

with the HEIDI advisory committee. 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,

2012.

(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 public university's

in-state main campus resident tuition rate. However, in instances

where a student is enrolled in distance education and non-distance

education credit hours in a given term and the student's non-

distance education enrollment is at a campus or site located within

Michigan, student credit hours per the student's eligibility for

in-state or out-of-state tuition rates may be reported.

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

public university.

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

public university 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 public universities for compliance with the definitions

established by the state budget director in consultation with 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. 701a. (1) Pursuant to section 701(2)(e), public

universities may establish the following degree programs:

(a) Bachelor's degree programs:

Central Michigan University, Athletic Training, B.S.A.T.

Grand Valley State University, Comprehensive Science and Arts for

Teaching (CSAT), B.A./B.S.

Northern Michigan University, Fisheries and Wildlife Management,

B.S.

Northern Michigan University, German Studies, Baccalaureate

Oakland University, Bachelor of Liberal Studies, B.A.

University of Michigan-Dearborn, Bio-Engineering, B.S.E.

University of Michigan-Dearborn, Integrated Science, B.S.

University of Michigan-Flint, Economics, B.S.

University of Michigan-Flint, Energy and Sustainable Systems, B.S.

University of Michigan-Flint, English with a Specialization in

Linguistics, B.A.

Wayne State University, Astronomy, B.A.

Wayne State University, Biomedical Engineering, B.S.

(b) Master's degree programs:

Eastern Michigan University, Teaching - Secondary Mathematics, M.A.

Michigan State University, Education for the Health Professions,

M.A.

Michigan State University, Marketing Research, M.S.

Oakland University, Clinical Nurse Leadership, M.S.N

Oakland University, Master of Arts Communication, M.A.C

Oakland University, Mechatronics, M.S.

University of Michigan-Ann Arbor, Oral and Maxillofacial Pathology

Program, M.S.

University of Michigan-Flint, Master of Public Health, M.P.H.

Wayne State University, Electric-Drive Vehicle Engineering, M.S.

Western Michigan University, Engineering (Chemical), M.S.

Central Michigan University, Doctor of Medicine, M.D.

Michigan Technological University, Environmental and Energy Policy,

Ph.D.

Michigan Technological University, Geophysics, Ph.D.

Oakland University, Doctor of Medicine, M.D.

University of Michigan-Ann Arbor, Doctor of Nursing Practice,

D.N.P.

University of Michigan-Ann Arbor, Doctoral Degree Granting Program

in Cancer Biology, Doctoral

University of Michigan-Dearborn, Education Specialist, Ed.S.

University of Michigan-Flint, Doctor of Anesthesia Practice,

Dr.A.P.

University of Michigan-Flint, Doctor of Occupational Therapy,

Dr.O.T.

Western Michigan University, Engineering and Applied Sciences,

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 701(2)(e), 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. 702. The principal executive officer of each public

university receiving an appropriation under part 1 shall expend a

portion of the funds appropriated to that public university to make

a report to the auditor general, the senate and house 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 public university's report shall specify all of

the following:

(a) The recommendations of the auditor general implemented by

the public university, including projected dates and resources

required, if any, to achieve compliance.

(b) The recommendations of the auditor general not implemented

by the public university or implemented by the public university as

modified.

auditor general or of implementing a recommendation as modified.

Sec. 708. The auditor general may conduct performance audits

of public universities receiving funds in part 1 during the fiscal

year ending September 30, 2012 as the auditor general considers

necessary.

Sec. 709. A public university receiving funds under part 1 and

also subject to the student right-to-know and campus security act,

Public Law 101-542, 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. 714. A public university receiving funds under this act

and also subject to the family educational rights and privacy act

(FERPA), 20 USC 1232g, 34 CFR part 99, shall, when requested,

provide information from the records of a student to any person or

persons to whom the student has authorized disclosure on a written

consent form pursuant to 34 CFR 99.30.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2013 for

the line items listed in part 1. The fiscal year 2012-2013

appropriations are anticipated to be the same as those for fiscal

year 2011-2012, except that the line items will be adjusted for

changes in caseload and related costs, federal fund match rates,

economic factors, and available revenue. These adjustments will be

determined after the January 2012 consensus revenue estimating

conference. The January 2012 consensus revenue estimating

conference shall include estimates for fiscal year 2011-2012,

fiscal year 2012-2013, and fiscal year 2013-2014 for the following:

(a) State revenue.

(b) Prison population and correction expenditures.

foundation allowance.

(d) Medicaid expenditures.

(e) Human service caseloads and expenditures.