Bill Text: MI SB1015 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Higher education; financial aid; grant program for certain state high school graduates to attend state universities and community colleges; establish, and create Michigan higher education grant trust fund. Creates new act. TIE BAR WITH: SB 1017'12
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2012-04-17 - Referred To Committee On Finance [SB1015 Detail]
Download: Michigan-2011-SB1015-Introduced.html
SENATE BILL No. 1015
March 13, 2012, Introduced by Senators WARREN, WHITMER, HOPGOOD, HOOD, GREGORY, YOUNG, BIEDA, JOHNSON, HUNTER, SMITH, GLEASON and ANDERSON and referred to the Committee on Appropriations.
A bill to establish an educational grant program for eligible
resident students who attend public community colleges and
universities in this state; to provide for the administration of
the program; to create the Michigan higher education grant trust
fund; and to provide for the powers and duties of certain state
governmental officers and entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan higher education grant act".
Sec. 3. As used in this act:
(a) "Academic year" means the period from September 1 of a
calendar year to August 31 of the next calendar year.
(b) "Authority" means the Michigan higher education assistance
authority created by 1960 PA 77, MCL 390.951 to 390.961.
(c) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or a federal tribally controlled community college that is
recognized under the tribally controlled colleges and universities
assistance act of 1978, 25 USC 1801 to 1864, and is determined by
the department of education to meet the requirements for
accreditation by a recognized regional accrediting body.
(d) "Eligible expenses" means all of the following:
(i) Tuition and fees charged by a state educational
institution.
(ii) A student's cost of attendance, expenses for books,
supplies, transportation, and miscellaneous personal expenses,
including a reasonable allowance for the documented rental or
purchase of a personal computer, as described in 20 USC 1087ll(2),
as determined by the authority.
(e) "FAFSA" means the free application for federal student aid
developed under 20 USC 1082.
(f) "Fiscal year" means the fiscal year of this state.
(g) "Michigan higher education grant" means a grant awarded by
the authority under section 7.
(h) "Public university" means a university described in
section 4, 5, or 6 of article VIII of the state constitution of
1963.
(i) "Qualified program" means a bachelor's degree, associate's
degree, or postsecondary vocational training program at a state
educational institution.
(j) "State educational institution" means a degree- or
certificate-granting public university or community college in this
state.
(k) "Trust fund" means the Michigan higher education grant
trust fund established in section 11.
Sec. 5. (1) The Michigan higher education grant program is
established. The authority shall administer the Michigan higher
education grant program.
(2) The authority shall do all of the following:
(a) Award grants to eligible students under this act.
(b) Develop a grant agreement to be entered into by a grant
recipient and the authority that contains the terms of a grant made
under this act and the rights and obligations of the grant
recipient and the authority.
(c) Conduct periodic audits of grant recipients to ensure
compliance with the terms of the grant agreement and take necessary
steps to enforce the terms of the grant agreement.
(d) Promulgate any rules that it determines are necessary to
implement and administer this act under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 7. Beginning in the 2012-2013 academic year, the
authority shall award a grant under this act to an individual if
the authority determines that he or she meets all of the following
eligibility criteria:
(a) Continuously resided in this state for the 12 months
immediately preceding the date of his or her application and is not
a resident of any other state.
(b) Received a high school diploma from a school district,
nonpublic school, or home school located in this state or
successfully completed the general educational development (GED)
test and received a GED certificate from this state.
(c) Received the diploma or GED certificate described in
subdivision (b) in the 2-year period preceding the date of the
student's application to receive Michigan higher education grant
money. If the student became a member of the United States armed
forces or peace corps during this 2-year period and served for 4
years or less, the authority shall extend the 2-year period by a
period equal to the number of days the student served as a member
of the United States armed forces or peace corps. The authority may
also extend the 2-year period if the authority determines that an
extension is warranted because of an illness, disability, or other
family emergency of the student or in the student's immediate
family.
(d) Is enrolled or has been accepted into a qualified program.
(e) Signs a written grant agreement with the authority.
(f) Provides proof satisfactory to the authority that he or
she has done both of the following:
(i) Submitted a FAFSA to the United States department of
education to determine his or her eligibility for federal grants or
scholarships.
(ii) Applied for any grants or scholarships offered by this
state for which he or she is eligible.
(g) If the student received a Michigan higher education grant
in the preceding academic year, the student made satisfactory
academic progress, as defined by the state educational institution
in which the student is enrolled, since receiving the previous
Michigan higher education grant.
(h) Is in compliance with this act and the rules promulgated
under this act.
(i) Meets any other eligibility criteria established in rules
promulgated by the authority under section 5.
Sec. 9. All of the following apply to the award of a Michigan
higher education grant under this act:
(a) In the 2012-2013 academic year, the base amount of the
grant is an amount equal to the median cost of tuition for a full-
time student enrolled at a public university in the 2011-2012
academic year, as determined by the department. For each subsequent
academic year, the authority shall adjust the base amount of the
grant to reflect the cumulative annual percentage change in the
Detroit consumer price index in the preceding 1-year period, as
determined by the state treasurer. As used in this subdivision,
"Detroit consumer price index" means the most comprehensive index
of consumer prices available for the Detroit area by the bureau of
labor statistics of the United States department of labor.
(b) The authority shall determine the amount of a student's
grant for an academic year by subtracting the amount of any other
state or federal grants or scholarships he or she is eligible to
receive in that academic year from the base amount established
under subdivision (a).
(c) A student shall use the grant money he or she receives in
an academic year to pay for his or her tuition and fees at the
state educational institution. If the amount of his or her grant
exceeds the amount of his or her tuition and fees, the student may
use the grant money to pay other eligible expenses related to that
academic year. If the amount of his or her grant exceeds the amount
of his or her fees and other eligible expenses in an academic year,
the student shall return the remaining balance to the authority.
(d) A student attending a state educational institution as a
full-time student may not receive a grant in more than 5 academic
years. If a student is attending a state educational institution as
at least a half-time student but is not a full-time student, the
authority shall determine the number of academic years for which
the student may receive a grant. A student attending an state
educational institution less than half-time shall not receive a
grant.
(e) The authority shall disburse a student's grant money to
the state educational institution in which he or she is enrolled on
the student's behalf, according to a payment procedure established
by the authority by rule.
(f) The annual cost of the total number of grants paid in a
fiscal year shall not exceed the amount appropriated by the
legislature for Michigan higher education grants in that fiscal
year. If there are not sufficient funds appropriated by the
legislature to provide each student with a grant in the amount to
which those students are eligible in an academic year, the
authority shall establish a maximum grant level for that academic
year. In any fiscal year, the authority may adjust the amount of a
Michigan higher education grant available to eligible students,
based upon its determination of available resources and amounts
appropriated.
Sec. 11. (1) The Michigan higher education grant trust fund is
established in the department of treasury. The trust fund shall
consist of the following:
(a) Money allocated to the trust fund as provided by law.
(b) Money appropriated to the trust fund.
(c) Donations of money made to the trust fund from any source.
(d) Interest and earnings from trust fund investments.
(2) Money in the trust fund at the close of a fiscal year
shall remain in the trust fund and shall not revert to the general
fund.
(3) The state treasurer shall direct the investment of the
trust fund.
(4) The department of treasury is the administrator of the
trust fund for auditing purposes.
Sec. 13. The department of treasury shall establish and
administer a restricted account in the general fund for the
Michigan higher education grant program. All of the following apply
to the account:
(a) The department of treasury shall credit to the account
money appropriated from the trust fund or received from any other
source, including, but not limited to, interest and earnings from
account investments and any money returned to the authority under
section 9(c).
(b) The department of treasury shall use the money in the
account only to provide money to the authority for grants awarded
under this act.
(c) Money in the account at the end of a fiscal year shall not
revert to the general fund but shall be carried over in the account
to the next fiscal year.
(d) The state treasurer shall direct the investment of the
account.
(e) The department of treasury is the administrator of the
account for auditing purposes.
Sec. 15. By November 1 of each year, the authority shall
submit a report on its activities under this act to the senate and
house fiscal agencies and the state budget director. The report
shall contain at least the number of Michigan higher education
grants awarded, the maximum amount of a Michigan higher education
grant paid, and the total amount paid out for Michigan higher
education grants in the immediately preceding fiscal year.
Enacting section 1. It is the intent of the legislature that
the first $1,800,000,000.00 savings realized from the elimination
of tax expenditures identified by the legislative tax expenditure
review commission described in chapter 7C of the legislative
council act, 1986 PA 268, MCL 4.1771 to 4.1772, shall be used to
fund the Michigan higher education grant trust fund created in
section 11 of this act.
Enacting section 2. This act does not take effect unless all
of the following bills of the 96th Legislature are enacted into
law:
(a) Senate Bill No. ____ or House Bill No. ____ (request no.
01581'11).
(b) Senate Bill No. 1017.
