Substitute For

HOUSE BILL NO. 5504

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 201, 205, 206, 207a, 207b, 207c, 216c, 217, 217b, 222, 223, 229, 229a, and 230 (MCL 388.1801, 388.1805, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1816c, 388.1817, 388.1817b, 388.1822, 388.1823, 388.1829, 388.1829a, and 388.1830), section 201 as amended by 2023 PA 320, sections 205 and 217 as amended by 2020 PA 165, sections 206, 207a, 207b, 207c, 223, 229a, and 230 as amended and sections 216c and 217b as added by 2023 PA 103, section 222 as amended by 2021 PA 86, and section 229 as amended by 2022 PA 144; and to repeal acts and parts of acts.

The people of the state of michigan enact:

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for community colleges for the fiscal year ending September 30, 2024, 2025, from the funds indicated in this section. The following is a summary of the appropriations in this section:

(a) The gross appropriation is $549,517,500.00. $468,811,200.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $549,517,500.00.$468,811,200.00.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $549,517,500.00.$468,811,200.00.

(v) State general fund/general purpose money, $0.00.

(2) Subject to subsection (3), the amount appropriated for community college operations is $357,961,900.00, $369,822,100.00, allocated as follows:

(a) The appropriation for Alpena Community College is $6,327,100.00, $6,026,800.00 for operations, $273,800.00 for performance funding, and $26,500.00 for costs incurred under the North American Indian tuition waiver.$6,548,900.00, $6,300,600.00 for operations, $226,500.00 for performance funding, and $21,800.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Bay de Noc Community College is $6,299,200.00, $5,877,000.00 for operations, $308,300.00 for performance funding, and $113,900.00 for costs incurred under the North American Indian tuition waiver.$6,534,000.00, $6,185,300.00 for operations, $248,700.00 for performance funding, and $100,000.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Delta College is $16,690,500.00, $15,888,200.00 for operations, $754,100.00 for performance funding, and $48,200.00 for costs incurred under the North American Indian tuition waiver.$17,197,000.00, $16,642,300.00 for operations, $529,900.00 for performance funding, and $24,800.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Glen Oaks Community College is $2,939,000.00, $2,802,100.00 for operations, $136,900.00 for performance funding, and $0.00 for costs incurred under the North American Indian tuition waiver.$3,040,000.00, $2,939,000.00 for operations, $99,200.00 for performance funding, and $1,800.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Gogebic Community College is $5,367,600.00, $5,103,300.00 for operations, $226,400.00 for performance funding, and $37,900.00 for costs incurred under the North American Indian tuition waiver.$5,530,900.00, $5,329,700.00 for operations, $152,800.00 for performance funding, and $48,400.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Grand Rapids Community College is $20,966,400.00, $19,766,200.00 for operations, $1,078,200.00 for performance funding, and $122,000.00 for costs incurred under the North American Indian tuition waiver.$21,705,200.00, $20,844,400.00 for operations, $749,700.00 for performance funding, and $111,100.00 for costs incurred under the North American Indian tuition waiver.

(g) The appropriation for Henry Ford College is $24,943,900.00, $23,700,100.00 for operations, $1,229,700.00 for performance funding, and $14,100.00 for costs incurred under the North American Indian tuition waiver.$25,754,700.00, $24,929,800.00 for operations, $818,500.00 for performance funding, and $6,400.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Jackson College is $13,887,400.00, $13,295,100.00 for operations, $559,000.00 for performance funding, and $33,300.00 for costs incurred under the North American Indian tuition waiver.$14,290,400.00, $13,854,100.00 for operations, $394,000.00 for performance funding, and $42,300.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Kalamazoo Valley Community College is $14,539,400.00, $13,776,100.00 for operations, $705,800.00 for performance funding, and $57,500.00 for costs incurred under the North American Indian tuition waiver.$15,010,000.00, $14,481,900.00 for operations, $490,900.00 for performance funding, and $37,200.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Kellogg Community College is $11,290,200.00, $10,754,400.00 for operations, $514,800.00 for performance funding, and $21,000.00 for costs incurred under the North American Indian tuition waiver.$11,652,200.00, $11,269,200.00 for operations, $347,600.00 for performance funding, and $35,400.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for Kirtland Community College is $3,792,900.00, $3,577,900.00 for operations, $195,200.00 for performance funding, and $19,800.00 for costs incurred under the North American Indian tuition waiver.$3,935,700.00, $3,773,100.00 for operations, $136,800.00 for performance funding, and $25,800.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for Lake Michigan College is $6,321,600.00, $5,978,400.00 for operations, $339,600.00 for performance funding, and $3,600.00 for costs incurred under the North American Indian tuition waiver.$6,523,000.00, $6,318,000.00 for operations, $199,000.00 for performance funding, and $6,000.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for Lansing Community College is $35,752,700.00, $34,228,900.00 for operations, $1,460,300.00 for performance funding, and $63,500.00 for costs incurred under the North American Indian tuition waiver.$36,752,900.00, $35,689,200.00 for operations, $982,500.00 for performance funding, and $81,200.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Macomb Community College is $37,661,900.00, $35,911,900.00 for operations, $1,723,500.00 for performance funding, and $26,500.00 for costs incurred under the North American Indian tuition waiver.$38,818,100.00, $37,635,400.00 for operations, $1,159,000.00 for performance funding, and $23,700.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Mid Michigan Community College is $5,798,500.00, $5,458,100.00 for operations, $284,800.00 for performance funding, and $55,600.00 for costs incurred under the North American Indian tuition waiver.$6,025,900.00, $5,742,900.00 for operations, $207,500.00 for performance funding, and $75,500.00 for costs incurred under the North American Indian tuition waiver.

(p) The appropriation for Monroe County Community College is $5,286,800.00, $5,003,600.00 for operations, $281,100.00 for performance funding, and $2,100.00 for costs incurred under the North American Indian tuition waiver.$5,471,400.00, $5,284,700.00 for operations, $184,900.00 for performance funding, and $1,800.00 for costs incurred under the North American Indian tuition waiver.

(q) The appropriation for Montcalm Community College is $3,966,700.00, $3,758,900.00 for operations, $198,300.00 for performance funding, and $9,500.00 for costs incurred under the North American Indian tuition waiver.$4,127,100.00, $3,957,200.00 for operations, $168,000.00 for performance funding, and $1,900.00 for costs incurred under the North American Indian tuition waiver.

(r) The appropriation for C.S. Mott Community College is $17,823,200.00, $17,098,300.00 for operations, $693,400.00 for performance funding, and $31,500.00 for costs incurred under the North American Indian tuition waiver.$18,296,400.00, $17,791,700.00 for operations, $498,900.00 for performance funding, and $5,800.00 for costs incurred under the North American Indian tuition waiver.

(s) The appropriation for Muskegon Community College is $10,223,600.00, $9,733,400.00 for operations, $477,500.00 for performance funding, and $12,700.00 for costs incurred under the North American Indian tuition waiver.$10,561,000.00, $10,210,900.00 for operations, $328,800.00 for performance funding, and $21,300.00 for costs incurred under the North American Indian tuition waiver.

(t) The appropriation for North Central Michigan College is $4,011,000.00, $3,615,900.00 for operations, $252,900.00 for performance funding, and $142,200.00 for costs incurred under the North American Indian tuition waiver.$4,205,400.00, $3,868,800.00 for operations, $174,100.00 for performance funding, and $162,500.00 for costs incurred under the North American Indian tuition waiver.

(u) The appropriation for Northwestern Michigan College is $10,650,300.00, $10,006,800.00 for operations, $466,500.00 for performance funding, and $177,000.00 for costs incurred under the North American Indian tuition waiver.$10,993,400.00, $10,473,300.00 for operations, $323,300.00 for performance funding, and $196,800.00 for costs incurred under the North American Indian tuition waiver.

(v) The appropriation for Oakland Community College is $24,755,900.00, $23,469,500.00 for operations, $1,264,100.00 for performance funding, and $22,300.00 for costs incurred under the North American Indian tuition waiver.$25,642,200.00, $24,733,600.00 for operations, $874,800.00 for performance funding, and $33,800.00 for costs incurred under the North American Indian tuition waiver.

(w) The appropriation for Schoolcraft College is $14,742,500.00, $13,939,500.00 for operations, $772,300.00 for performance funding, and $30,700.00 for costs incurred under the North American Indian tuition waiver.$15,306,900.00, $14,711,800.00 for operations, $574,100.00 for performance funding, and $21,000.00 for costs incurred under the North American Indian tuition waiver.

(x) The appropriation for Southwestern Michigan College is $7,695,500.00, $7,332,800.00 for operations, $350,000.00 for performance funding, and $12,700.00 for costs incurred under the North American Indian tuition waiver.$7,941,400.00, $7,682,800.00 for operations, $229,100.00 for performance funding, and $29,500.00 for costs incurred under the North American Indian tuition waiver.

(y) The appropriation for St. Clair County Community College is $8,226,400.00, $7,786,600.00 for operations, $423,800.00 for performance funding, and $16,000.00 for costs incurred under the North American Indian tuition waiver.$8,525,000.00, $8,210,400.00 for operations, $290,500.00 for performance funding, and $24,100.00 for costs incurred under the North American Indian tuition waiver.

(z) The appropriation for Washtenaw Community College is $15,938,200.00, $14,851,300.00 for operations, $1,074,200.00 for performance funding, and $12,700.00 for costs incurred under the North American Indian tuition waiver.$16,682,300.00, $15,925,500.00 for operations, $732,200.00 for performance funding, and $24,600.00 for costs incurred under the North American Indian tuition waiver.

(aa) The appropriation for Wayne County Community College is $19,197,900.00, $18,376,100.00 for operations, $817,200.00 for performance funding, and $4,600.00 for costs incurred under the North American Indian tuition waiver.$19,786,900.00, $19,193,300.00 for operations, $589,200.00 for performance funding, and $4,400.00 for costs incurred under the North American Indian tuition waiver.

(bb) The appropriation for West Shore Community College is $2,865,600.00, $2,721,000.00 for operations, $130,200.00 for performance funding, and $14,400.00 for costs incurred under the North American Indian tuition waiver.$2,963,800.00, $2,851,200.00 for operations, $100,600.00 for performance funding, and $12,000.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for community college operations is $357,961,900.00 $369,822,100.00 and is appropriated from the state school aid fund.

(4) From the appropriations described in subsection (1), both all of the following apply:

(a) Subject to section 207a, the amount appropriated for fiscal year 2023-2024 2024-2025 to offset certain fiscal year 2023-2024 2024-2025 retirement contributions is $7,189,000.00, appropriated from the state school aid fund.

(b) For Subject to section 207a, for fiscal year 2023-2024, 2024-2025, there is allocated an amount not to exceed $23,000,000.00 $21,800,000.00 for payments to participating community colleges, appropriated from the state school aid fund. A community college that receives money under this subdivision shall use that money solely for the purpose of offsetting the normal cost contribution rate.

(c) Subject to section 207a, for fiscal year 2024-2025, there is allocated an amount not to exceed $5,700,000.00 for payments to participating community colleges to lower the employer payroll contribution cap, appropriated from the state school aid fund.

(5) From the appropriations described in subsection (1), subject to section 207b, the amount appropriated for payments to community colleges that are participating entities of the retirement system is $105,800,000.00, $62,100,000.00, appropriated from the state school aid fund.

(6) From the appropriations described in subsection (1), subject to section 207c, the amount appropriated for renaissance zone tax reimbursements is $2,200,000.00, appropriated from the state school aid fund. Each community college receiving funds in this subsection shall accrue these payments to its institutional fiscal year ending June 30, 2024.2025.

(7) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), the amount appropriated for career and education navigators for adult learners is $5,000,000.00, appropriated from the state school aid fund. Community colleges, partnering with 1 or more county governments, where practicable, may apply for grant funding through the Office of Sixty by 30 in the department of labor and economic opportunity to supplement or create navigation efforts of adult learners. The Office of Sixty by 30 shall issue a report including, but not limited to, the number of grants awarded, a list of community colleges awarded grants and the amounts, and the amount of unexpended funds remaining at the end of the fiscal year. The report must be issued to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director by September 30, 2024.

(8) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), the amount appropriated for the Michigan Reconnect Entry Point Program is $5,000,000.00, appropriated from the state school aid fund. Community colleges, partnering with 1 or more county governments, where practicable, may apply for grant funding through the Office of Sixty by 30 in the department of labor and economic opportunity to engage Michigan reconnect grant applicants who have been approved for funding but have not enrolled in a postsecondary or eligible Michigan reconnect program and work to identify and resolve barriers preventing enrollment. The Office of Sixty by 30 shall issue a report including, but not limited to, the number of grants awarded, a list of community colleges awarded grants and the amounts, a list of any counties that partnered with a community college for a grant under this section, and the amount of unexpended funds remaining at the end of the fiscal year. The report must be issued to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director by September 30, 2024.

(7) (9) For fiscal year 2023-2024 2024-2025 only, from the appropriations described in subsection (1), subject to sections section 216c, and 216d, the amount appropriated for infrastructure, technology, equipment, maintenance, housing, and safety is $32,836,600.00, $100.00, appropriated from the state school aid fund.

(10) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $5,000,000.00 is appropriated from the state school aid fund for critical incident mapping. These funds must be distributed to community colleges proportionately to the amounts in subsection (2) for operations.

(11) From the appropriations described in subsection (1), the amount appropriated for Michigan workforce development projects is $530,000.00, appropriated from the state school aid fund. These funds must be awarded to Kalamazoo Valley Community College, and must be used by that college in conjunction with the college's wind turbine program for curriculum development for programs in 1 or more of the following areas:

(a) Electric vehicle battery installation and repair.

(b) Electric vehicle charger installation for residential applications, commercial applications, or both.

(c) Residential and community scale solar panel installation, maintenance, and repair.

(12) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $5,000,000.00 is appropriated from the state school aid fund to Washtenaw Community College for costs related to the college's involvement with a semiconductor research alliance.

Sec. 205. To the extent possible, the principal executive officer of each community college that receives appropriations in section 201 shall take all reasonable steps to ensure businesses in deprived and depressed communities that geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. Each principal executive officer shall strongly encourage businesses with which the community college contracts to subcontract with certified businesses in depressed and deprived communities geographically disadvantaged business enterprises for services or supplies, or both. As used in this section, "geographically disadvantaged business enterprises" means that term as defined in Executive Directive 2023-1.

Sec. 206. (1) Except for the funds appropriated in section 201(4)(b), the funds appropriated in section 201 are appropriated for community colleges with fiscal years ending June 30, 2024 2025 and must be paid out of the state treasury and distributed by the state treasurer to the respective community colleges in 11 monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2023. 2024. Each community college shall accrue its July and August 2024 2025 payments to its institutional fiscal year ending June 30, 2024.2025.

(2) The funds appropriated in section 201(4)(b) are appropriated for community colleges with fiscal years ending June 30, 2024 2025 and must be distributed to the respective community colleges in quarterly installments on the sixteenth of each November, February, May, and August. Each community college shall accrue its August 2024 2025 payments to its institutional fiscal year ending June 30, 2024.2025.

Sec. 207a. The following apply to the allocation of the fiscal year 2023-2024 2024-2025 appropriations described in section 201(4):

(a) A community college that receives money under section 201(4) shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the college for that fiscal year.

(b) The amount amounts allocated to each participating community college under section 201(4)(a) and (c) must be based on each college's percentage of the total covered payroll for all community colleges that are participating colleges in the immediately preceding fiscal year.

(c) The amount allocated to each participating community college under section 201(4)(b) must be based on each college's reported quarterly payroll for members for the current fiscal year.

Sec. 207b. All of the following apply to the allocation of the fiscal year 2023-2024 2024-2025 appropriations described in section 201(5) for payments to community colleges that are participating entities of the retirement system:

(a) The amount of a payment under section 201(5) must be the difference between the unfunded actuarial accrued liability contribution rate as calculated under section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the maximum employer rate of 20.96% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer rate of 20.96% under section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341.

(b) The amount allocated to each community college under section 201(5) must be based on each community college's percentage of the total covered payroll for all community colleges that are participating colleges in the immediately preceding fiscal year. A community college that receives funds under this subdivision shall use the funds solely for the purpose of retirement contributions under section 201(5).

(c) Each participating college that receives funds under section 201(5) shall forward an amount equal to the amount allocated under subdivision (b) to the retirement system in a form and manner determined by the retirement system.

Sec. 207c. All of the following apply to the allocation of the appropriations described in section 201(6) to community colleges described in section 12(3) of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692:

(a) The amount allocated to each community college under section 201(6) for fiscal year 2023-2024 2024-2025 must be based on that community college's proportion of total revenue lost by community colleges as a result of the exemption of property taxes levied in 2023 2024 under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.

(b) The appropriations described in section 201(6) must be made to each eligible community college within 60 days after the department of treasury certifies to the state budget director that it has received all necessary information to properly determine the amounts payable to each eligible community college under section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.

Sec. 216c. (1) Funds appropriated in section 201(9) 201(7) for infrastructure, technology, equipment, maintenance, housing, and safety are intended to be used for necessary improvements and deferred maintenance of community college buildings, facilities, and other physical infrastructure; necessary improvements and deferred maintenance of information technology, other technology infrastructure, and other equipment; and other purposes related to infrastructure, technology, equipment, and maintenance. A community college may also use these funds to construct, renovate, or purchase student housing or to upgrade safety and security infrastructure. These funds are not intended to be used for any other purpose than what is specified in this section.

(2) To receive funds under this section, a community college must certify to the state budget director by January 1, 2024 that it did not receive an appropriation for a planning or construction authorization for a capital outlay project between January 1, 2023 and December 15, 2023.

(2) (3) Funds appropriated in section 201(9) 201(7) are distributed to each community college that certified it did not receive a capital outlay appropriation under subsection (2). receives appropriations in section 201. The payment for each college must be calculated based on each college's respective share of total fiscal year equated students as reported to the Michigan community college data inventory for the fiscal year ending September 30, 2022 for all community colleges that receive a payment under this section. 2023. Payments to community colleges under this section must be distributed in 1 lump sum to each institution with the January 16, 2024 2025 payment described in section 206(1).

Sec. 217. (1) The center shall do all of the following:

(a) Establish, maintain, and coordinate the state community college database commonly known as the "Michigan Community College Data Inventory".

(b) Collect data concerning community colleges and community college programs in this state, including data required by law.

(c) Establish procedures to ensure the validity and reliability of the data and the collection process.

(d) Develop model data collection policies, including, but not limited to, policies that ensure the privacy of any individual student data. Privacy policies shall must ensure that student Social Security numbers are not released to the public for any purpose.

(e) Provide data in a useful manner to allow state policymakers and community college officials to make informed policy decisions.

(f) Compile and publish electronically the demographic enrollment profile.

(g) Compile and publish the community college performance improvement and performance completion rate data to support the performance funding formula metrics specified in section 230(1)(c) and (e).

(2) There is created within the center the Michigan Community College Data Inventory advisory committee. The committee shall provide advice to the director of the center regarding the management of the state community college database, including, but not limited to:

(a) Determining what data are necessary to collect and maintain to enable state and community college officials to make informed policy decisions.

(b) Defining the roles of all stakeholders in the data collection system.

(c) Recommending timelines for the implementation and ongoing collection of data.

(d) Establishing and maintaining data definitions, data transmission protocols, and system specifications and procedures for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the accuracy of the data.

(f) Establishing and maintaining policies related to data collection, including, but not limited to, privacy policies related to individual student data.

(g) Ensuring that the data are made available to state policymakers and citizens of this state in the most useful format possible.

(h) Addressing other matters as determined by the director of the center or as required by law.

(3) The Michigan Community College Data Inventory advisory committee created in subsection (2) shall consist consists of the following members:

(a) One representative from the house fiscal agency, appointed by the director of the house fiscal agency.

(b) One representative from the senate fiscal agency, appointed by the director of the senate fiscal agency.

(c) One representative from the department of labor and economic opportunity, appointed by the director of the department of labor and economic opportunity.

(d) One representative from the center, appointed by the director of the center.

(e) One representative from the state budget office, appointed by the state budget director.

(f) One representative from the department of lifelong education, advancement, and potential, appointed by the director of the department of lifelong education, advancement, and potential.

(g) (f) One representative from the governor's policy office, appointed by that office.

(h) (g) Four representatives of the Michigan Community College Association, appointed by the president of the association, that represent a diverse mix of college sizes.

Sec. 217b. (1) Each community college that receives an appropriation in section 201 shall report to the center by the last business day of August of each year the tuition and mandatory fees paid by a full-time in-district student and a full-time out-of-district student as established by the community college governing board for the current academic year. This report should also include the annual cost of tuition and fees based on a full-time course load of 30 credits. This report must also specify the amount that tuition and fees have increased for the community college from the prior academic year. Each community college shall also report any revisions to the reported current academic year tuition and mandatory fees adopted by the community college governing board to the center within 15 days of being adopted. The center shall provide this information and any revisions to the house and senate fiscal agencies and the state budget director.

(2) Each community college that receives an appropriation in section 201 shall certify to the state budget director by the last business day of August that its board will not adopt an increase in tuition and fee rates for in-district students for the 2023-2024 2024-2025 academic year that is greater than 4.5% or $205.00, $217.00, whichever is greater. As used in this subsection:

(a) "Fee" means any board-authorized fee that will be paid by more than 1/2 of all in-district students at least once during their enrollment at a community college. A community college increasing a fee that applies to a specific subset of students or courses shall provide sufficient information to prove that the increase applied to that subset will not cause the increase in the average amount of board-authorized total tuition and fees paid by in-district students in the 2023-2024 2024-2025 academic year to exceed the limit established in this section.

(b) "Tuition and fee rate" means the average of full-time rates paid by a majority of students in each class, based on an unweighted average of the rates authorized by the community college board and actually charged to students, deducting any uniformly rebated or refunded amounts, for the 2 semesters with the highest levels of full-time equated in-district enrollment during the academic year.

(3) Community colleges that exceed the tuition and fee rate cap described in subsection (2) are not eligible to receive payments under section 201 for performance funding for fiscal year 2023-2024.2024-2025.

(4) Notwithstanding any other provision of this act, the legislature may at any time adjust appropriations for a community college that adopts an increase in tuition and fee rates for in-district students that exceeds the rate cap established in subsection (2).

Sec. 222. Each community college shall have an annual audit of all income and expenditures performed by an independent auditor and shall furnish the independent auditor's management letter and an annual audited accounting of all general and current funds income and expenditures including audits of college foundations to the center before November 15 of each year. The center shall provide this information to members of the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, the auditor general, the department of labor and economic opportunity, lifelong education, advancement, and potential, and the state budget director. If a community college fails to furnish the audit materials, the monthly state aid installments shall must be withheld from that college until the information is submitted. All reporting shall must conform to the requirements set forth in the "2001 Manual for Uniform Financial Reporting, Michigan Public Community Colleges". A community college shall make the information the community college is required to provide under this section available to the public on its website.

Sec. 223. (1) By January 15 of each year, the department of civil rights lifelong education, advancement, and potential shall submit to the state budget director, the house and senate appropriations subcommittees on community colleges, and the house and senate fiscal agencies a report on North American Indian tuition waivers for the preceding academic year that includes, but is not limited to, all of the following information:

(a) The number of waiver applications received and the number of waiver applications approved.

(b) For each community college submitting information under subsection (2), all of the following:

(i) The number of North American Indian students enrolled each term for the previous academic year.

(ii) The number of North American Indian waivers granted each term, including continuing education students, and the monetary value of the waivers for the previous academic year.

(iii) The number of North American Indian students who receive a granted waiver for the previous academic year.

(iv) The number of students attending under a North American Indian tuition waiver who withdrew from the college each term during the previous academic year. For purposes of this subparagraph, a withdrawal occurs when a student who has been awarded the waiver withdraws from the institution at any point during the term, regardless of enrollment in subsequent terms.

(v) The number of students attending under a North American Indian tuition waiver who successfully transfer to a 4-year public or private university, or complete a degree or certificate program, separated by degree or certificate level, and the graduation rate for students attending under a North American Indian tuition waiver who complete a degree or certificate within 150% of the normal time to complete, separated by the level of the degree or certificate.

(2) By January 1 of each year, a community college that receives an appropriation in section 201 or a tribal institution that receives funding for the North American Indian tuition waiver shall provide to the department of civil rights lifelong education, advancement, and potential any information necessary for preparing the report described in subsection (1), using guidelines and procedures developed by the department of civil rights.lifelong education, advancement, and potential.

(3) The department of civil rights lifelong education, advancement, and potential may consolidate the report required under this section with the report required under section 268, but a consolidated report must separately identify data for universities and data for community colleges.

Sec. 229. (1) Each community college that receives an appropriation in section 201 is expected to include in its admission application process a specific question as to whether an applicant for admission has ever served or is currently serving in the United States Armed Forces or is the spouse or dependent of an individual who has served or is currently serving in the United States Armed Forces, in order to more quickly identify potential educational assistance available to that applicant.

(2) It is expected that each community college that receives an appropriation in section 201 will work with the house and senate appropriations subcommittees on community colleges, the Michigan Community College Association, and veterans groups to review the issue of in-district tuition for veterans of this state when determining tuition rates and fees.

(3) Each community college that receives an appropriation in section 201 is expected to provide reasonable programming and scheduling accommodations necessary to facilitate a student's military, National Guard, or military reserves duties and training obligations.

(4) Each community college that receives an appropriation in section 201 is expected to provide college level equivalent credit examination opportunities for veterans and active members of the military, National Guard, or military reserves within the first semester of enrollment.

(5) Each community college that receives an appropriation in section 201 is expected to do all of the following in its admission application process if it knows that an applicant for admission is currently serving, or has ever served, as a member of the military, the National Guard, or the military reserves:

(a) Inform the applicant that he or she the applicant may receive academic credit for college-level training and education he or she the applicant received while serving in the military.

(b) Inform the applicant that he or she the applicant may submit a transcript of his or her the applicant's college-level military training and education to the community college.

(c) If the applicant submits a transcript described in subdivision (b), evaluate that transcript and notify the applicant of what transfer credits are available to the applicant from the community college for his or her the applicant's college-level military training and education.

(6) As used in this section:

(a) "Transcript" includes a joint services transcript prepared for the applicant under the American Council on Education registry of credit recommendations.

(b) "Veteran" means an honorably discharged veteran entitled to educational assistance under section 5003 of the post-911 veterans educational assistance act of 2008, 38 USC 3301 to 3327.

Sec. 229a. Included in the fiscal year 2023-2024 2024-2025 appropriations for the department of technology, management, and budget are appropriations totaling $33,081,600.00 $33,481,600.00 to provide funding for the state share of costs for previously constructed capital projects for community colleges. Those appropriations for state building authority rent represent additional state general fund support for community colleges, and the following is an estimate of the amount of that support to each community college:

(a) Alpena Community College, $886,800.00.$858,200.00.

(b) Bay de Noc Community College, $522,100.00.$516,900.00.

(c) Delta College, $2,724,100.00.$2,696,900.00.

(d) Glen Oaks Community College, $406,500.00.$381,400.00.

(e) Gogebic Community College, $56,800.00.$56,200.00.

(f) Grand Rapids Community College, $1,101,000.00.$1,090,000.00.

(g) Henry Ford College, $1,178,300.00.$1,570,600.00.

(h) Jackson College, $2,193,900.00.$2,051,500.00.

(i) Kalamazoo Valley Community College, $1,968,800.00.$1,949,100.00.

(j) Kellogg Community College, $688,400.00.$681,500.00.

(k) Kirtland Community College, $228,100.00.$225,800.00.

(l) Lake Michigan College, $979,300.00.$969,600.00.

(m) Lansing Community College, $1,156,800.00.$759,800.00.

(n) Macomb Community College, $1,972,800.00.$2,847,000.00.

(o) Mid Michigan Community College, $1,637,300.00.$1,620,900.00.

(p) Monroe County Community College, $1,561,300.00.$1,545,700.00.

(q) Montcalm Community College, $452,200.00.$447,600.00.

(r) C.S. Mott Community College, $2,132,100.00.$2,110,700.00.

(s) Muskegon Community College, $995,600.00.$985,600.00.

(t) North Central Michigan College, $654,900.00.$648,400.00.

(u) Northwestern Michigan College, $1,811,700.00. $1,793,600.00.

(v) Oakland Community College, $0.00.

(w) Schoolcraft College, $2,262,900.00.$2,240,200.00.

(x) Southwestern Michigan College, $833,900.00.$825,500.00.

(y) St. Clair County Community College, $727,900.00.$720,600.00.

(z) Washtenaw Community College, $1,739,800.00.$1,682,300.00.

(aa) Wayne County Community College, $1,482,300.00.$1,467,500.00.

(bb) West Shore Community College, $746,000.00.$738,500.00.

Sec. 230. (1) Subject to subsection (4), money included in the appropriations for community college operations under section 201(2) for performance funding is distributed based on the following formula:

(a) Allocated proportionate to fiscal year 2022-2023 2023-2024 base appropriations, 30%.

(b) Based on a weighted student contact hour formula as provided for in the 2016 recommendations of the performance indicators task force, 30%.

(c) Based on the performance improvement as provided for in the 2016 recommendations of the performance indicators task force and based on data provided by the center, 10%.

(d) Based on the performance completion number as provided for in the 2016 recommendations of the performance indicators task force, 10%.

(e) Based on the performance completion rate as provided for in the 2016 recommendations of the performance indicators task force and based on data provided by the center, 10%.

(f) Based on administrative costs, 5%.

(g) Based on the local strategic value component, as developed in cooperation with the Michigan Community College Association and described in subsection (2), 5%.

(2) Money included in the appropriations for community college operations under section 201(2) for local strategic value is allocated only to each community college that certifies to the state budget director, through a board of trustees resolution on or before October 15, 2023, 2024, that the college has met 4 out of 5 best practices listed in each category described in subsection (3). The resolution must provide specifics as to how the community college meets each best practice measure within each category. One-third of funding available under the strategic value component is allocated to each category described in subsection (3). Amounts distributed under local strategic value must be on a proportionate basis to each college's fiscal year 2022-2023 2023-2024 operations funding. Payments to community colleges that qualify for local strategic value funding must be distributed with the November installment payment described in section 206.

(3) For purposes of subsection (2), the following categories of best practices reflect functional activities of community colleges that have strategic value to the local communities and regional economies:

(a) For Category A, economic development and business or industry partnerships, the following:

(i) The community college has active partnerships with local employers including hospitals and health care providers.

(ii) The community college provides customized on-site training for area companies, employees, or both.

(iii) The community college supports entrepreneurship through a small business assistance center or other training or consulting activities targeted toward small businesses.

(iv) The community college supports technological advancement through industry partnerships, incubation activities, or operation of a Michigan technical education center or other advanced technology center.

(v) The community college has active partnerships with local or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with regional high schools, intermediate school districts, and career-tech centers to provide instruction through dual enrollment, concurrent enrollment, direct credit, middle college, or academy programs.

(ii) The community college hosts, sponsors, or participates in enrichment programs for area K-12 students, such as college days, summer or after-school programming, or Science Olympiad.

(iii) The community college provides, supports, or participates in programming to promote successful transitions to college for traditional age students, including grant programs such as talent search, upward bound, or other activities to promote college readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates in programming to promote successful transitions to college for new or reentering adult students, such as adult basic education, a high school equivalency test preparation program and testing, or recruiting, advising, or orientation activities specific to adults. As used in this subparagraph, "high school equivalency test preparation program" means that term as defined in section 4.

(v) The community college has active partnerships with regional 4-year colleges and universities to promote successful transfer, such as articulation, 2+2, or reverse transfer agreements or operation of a university center.

(c) For Category C, community services, the following:

(i) The community college provides continuing education programming for leisure, wellness, personal enrichment, or professional development.

(ii) The community college operates or sponsors opportunities for community members to engage in activities that promote leisure, wellness, cultural or personal enrichment such as community sports teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to promote cultural, educational, or personal enrichment for community members, such as libraries, computer labs, performing arts centers, museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to promote leisure or wellness activities for community members, including gymnasiums, athletic fields, tennis courts, fitness centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts community service activities for students, staff, or community members.

(4) Payments for performance funding under section 201(2) must be made to a community college only if that community college actively participates in the Michigan Transfer Network sponsored by the Michigan Association of Collegiate Registrars and Admissions Officers and submits timely updates, including updated course equivalencies at least every 6 months, to the Michigan Transfer Network. The state budget director shall determine if a community college has not satisfied this requirement. The state budget director may withhold payments for performance funding until a community college is in compliance with this subsection.

Enacting section 1. In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for community colleges for fiscal year 2024-2025 under article II of the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to 388.1830, as amended by this amendatory act, is estimated at $468,811,200.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2024-2025 is estimated at $468,811,200.00.

Enacting section 2. Section 216d of the state school aid act of 1979, 1979 PA 94, MCL 388.1816d, is repealed effective October 1, 2024.

Enacting section 3. This amendatory act takes effect October 1, 2024.