Bill Text: MI HB5135 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Higher education; financial aid; financial assistance by promise zones; revise eligibility requirements and minimum payment amounts. Amends secs. 7 & 15 of 2008 PA 549 (MCL 390.1667 & 390.1675).
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-12-06 - Referred To Committee On Economic Development [HB5135 Detail]
Download: Michigan-2011-HB5135-Engrossed.html
HB-5135, As Passed House, September 27, 2012
SUBSTITUTE FOR
HOUSE BILL NO. 5135
A bill to amend 2008 PA 549, entitled
"Michigan promise zone authority act,"
by amending sections 7 and 15 (MCL 390.1667 and 390.1675).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) A promise zone authority created under section 5
shall prepare a promise zone development plan.
(2)
The A promise zone development plan shall include, but is
not limited to, all of the following:
(a) A complete description of the proposed promise of
financial assistance. The proposed promise of financial assistance
shall include, but is not limited to, a promise of financial
assistance to all eligible students residing within the promise
zone and who graduate from a public high school or nonpublic high
school located within that promise zone, in an amount established
by the board to reflect the amount available for disbursement to
eligible students and included in the annual budget under section
15. The amount of proposed promise of financial assistance shall,
at
a minimum, provide funding equal
or exceed the amount the board
determines
is sufficient to provide pay for the tuition necessary
for
an eligible student the tuition
necessary to obtain an
associate
degree or its equivalent at a
certificate from a
community
or junior college in this state, or combination of
community
or junior colleges in this state and, at most, provide
funding
sufficient to provide an eligible student the tuition
necessary
or to complete a vocational
program, and shall not exceed
the amount the board determines is sufficient to pay for the
tuition necessary for an eligible student to obtain a bachelor's
degree or its equivalent at a public postsecondary institution in
this state or combination of public postsecondary institutions in
this state, subject to any limitations authorized under this
section. The proposed promise of financial assistance may also, at
most, provide funding for an eligible student to attend a private
college
in this state in an amount not to that does not exceed the
average tuition necessary to obtain a bachelor's degree at all
public universities in this state. The proposed promise of
financial assistance may also authorize the expenditure of funds
for educational improvement activities designed to increase
readiness for postsecondary education at public schools located in
the promise zone. As used in this subdivision, "vocational program"
means an education or training program intended to teach a trade,
occupation, or vocation and offered by a public or private
postsecondary institution in this state.
(b) A complete description of any limitation on the promise of
financial
assistance, ; if including,
but not limited to, any of
the following:
(i) If the promise of financial assistance will be prorated
based on the number of years the student has resided within the
promise
zone. ; if
(ii) If the promise of financial assistance will be restricted
to students who have resided within or attended a public high
school or nonpublic high school within the promise zone for a
minimum
number of years. ; if
(iii) If the promise of financial assistance is predicated on
the student maintaining a minimum college grade point average and
carrying
a minimum college credit hour classload.
; or if
(iv) If the promise of financial assistance is restricted to
attendance at 1 or more public or private postsecondary
institutions in this state.
(v) If the promise of financial assistance is limited to
students whose cumulative high school grade point average exceeds a
specified minimum. However, a board may revise, establish, or
eliminate a high school grade point average requirement for
students after it submits a promise zone development plan to the
department of treasury and is not required to amend the plan or
obtain approval from the department of treasury for that change.
(c) A requirement that graduates of a public high school or
nonpublic high school exhaust all other known and available
restricted grants for tuition and fees for postsecondary education
provided by a federal, state, or local governmental entity, as
determined by the board.
(d) How the funds necessary to accomplish the promise of
financial assistance will be raised. Any amount received under the
state
school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772,
388.1896, shall not be included as a method of raising the
necessary funds. The promise zone development plan shall be
financed from 1 or more of the following sources:
(i) Donations.
(ii) Revenues.
(iii) Money obtained from other sources approved by the
governing body or otherwise authorized by law.
(e) An actuarial model of how much the proposed plan is
estimated to cost, based on actuarial formulas developed by the
department of treasury.
(3) The proposed promise of financial assistance under
subsection (2) shall not include funding for attendance at a public
or private postsecondary institution not located in this state.
(4) The board shall submit the promise zone development plan
to the department of treasury promptly after its adoption. The
promise zone development plan shall be published on the website of
the eligible entity that established the promise zone.
(5) The department of treasury shall review the promise zone
development plan submitted under subsection (4). Not more than 60
days after receipt of a promise zone development plan submitted
under subsection (4), the department of treasury shall either
approve the promise zone development plan or provide a written
notice of deficiencies. If the department of treasury does not
approve a promise zone development plan submitted under subsection
(4) or provide a written notice of deficiencies within 60 days, the
promise zone development plan shall be considered approved. If a
promise zone development plan is approved, the department of
treasury shall certify that the promise zone development plan meets
all requirements under this act and is sustainable.
(6) The department of treasury shall review any proposed
amendments to a promise zone development plan. Not more than 60
days after receipt of proposed amendments to a promise zone
development plan, the department of treasury shall either approve
the proposed amendments or provide a written notice of
deficiencies. If the department of treasury does not approve
proposed amendments or provide a written notice of deficiencies
within 60 days, the proposed amendments shall be considered
approved. If proposed amendments are approved, the department of
treasury shall certify that the amendments meet all requirements
under this act.
Sec. 15. (1) The director of the authority shall submit a
budget to the board for the operation of the authority for each
fiscal year before the beginning of the fiscal year. The budget
shall be prepared in the manner and contain the information
required of municipal departments. After review by the board, the
budget shall be submitted to the governing body. The governing body
must approve the budget before the board may adopt the budget.
Unless authorized by the governing body, funds of the eligible
entity shall not be included in the budget of the authority.
(2) The budget described in subsection (1) shall include the
amount the authority intends to disburse to each eligible student
in the fiscal year covered by the budget. Subject to the maximum
amounts described in section 7(2)(a), the board shall establish the
amount of the annual payment to eligible students and, in making
that determination, shall consider the financial resources
available to the authority for disbursement to those students.
