Bill Text: MI SB0906 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Higher education; financial aid; student loan program; provide for issuance of student loans and loan guarantees. Amends secs. 2, 3, 4 & 10 of 1960 PA 77 (MCL 390.952 et seq.) & adds sec. 7c. TIE BAR WITH: HB 5583'16, SB 0905'16

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2016-04-21 - Referred To Committee On Banking And Financial Institutions [SB0906 Detail]

Download: Michigan-2015-SB0906-Introduced.html

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SENATE BILL No. 906

 

 

April 21, 2016, Introduced by Senators KNEZEK, ANANICH, WARREN, YOUNG, GREGORY, JOHNSON, BIEDA, HOOD, HOPGOOD and HERTEL and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1960 PA 77, entitled

 

"An act to create the Michigan higher education assistance

authority and to prescribe its powers and duties; to authorize

persons, corporations, and associations to make gifts to the

authority; to prescribe the powers and duties of certain state

officials; to authorize, ratify, and confirm certain guarantees of

students' loans and authorize reguarantees; to authorize, ratify,

and confirm certain guarantees of loans made to parents of

students; to validate certain prior appropriations; and to

authorize the transfer of certain appropriations to be transferred

to and administered by the authority,"

 

by amending sections 2, 3, 4, and 10 (MCL 390.952, 390.953,

 

390.954, and 390.960), section 10 as amended by 1989 PA 128, and by

 

adding section 7c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. The authority shall consist of the superintendent of

 

public instruction, student loan ombudsman, ex officio, who shall

 

be chairman, 2 representatives from private colleges located within

 

this state, 2 representatives from community colleges located

within this state, 1 representative each from the university of

 

Michigan, Michigan state university, and Wayne state university, 2

 

representatives from all other state supported 4-year colleges and

 

universities within the state, 1 representative from the secondary

 

schools of the state, 1 representative from an eligible lending

 

institution of the state, 1 representative from the private

 

occupational schools within the state, and 3 representatives from

 

the citizens of the state chosen for their interest in higher

 

education but not employed by, professionally affiliated with, or

 

on the governing body of a college, university, or public high

 

school of this state, to be appointed by the governor with the

 

advice and consent of the senate.chairperson, and 3 members

 

appointed by the superintendent of public instruction. As used in

 

this section, "student loan ombudsman" means that term as defined

 

in section 3 of the student loan ombudsman act.

 

     Sec. 3. The terms of office of the members of the authority

 

shall be 4 years, and they shall hold office until the appointment

 

and qualification of their successors, except that the original

 

members first appointed after the effective date of the amendatory

 

act that amended this section shall be appointed in such manner as

 

to provide for the expiration each year of the terms of one-fourth

 

of the members. term of not more than 1 member. The governor

 

superintendent of public instruction may remove any member for

 

misfeasance, malfeasance, or nonfeasance in office, after hearing.

 

     Sec. 4. The governor superintendent of public instruction

 

shall fill any vacancy for the balance of the unexpired term by the

 

appointment of a person an individual with the same status as the

predecessor of the appointee. The governor superintendent of public

 

instruction may remove any appointee for misfeasance, malfeasance,

 

or nonfeasance in office, after hearing.

 

     Sec. 7c. Members of the authority shall also serve as members

 

of the Michigan higher education student loan authority, as

 

provided by section 3 of the higher education loan authority act,

 

1975 PA 222, MCL 390.1153.

 

     Sec. 10. The authority is subject to the supervision and

 

examination of the commissioner of the financial institutions

 

bureau of the department of commerce. director of insurance and

 

financial services. However, the authority is not considered to be

 

a banking organization and is not required to pay a fee for the

 

supervision or examination. The authority shall make an annual

 

report of its condition to the governor superintendent of public

 

instruction and the legislature within 60 days after the

 

legislature convenes.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No. 905                                    

 

          of the 98th Legislature is enacted into law.