Bill Text: MI SB1078 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Higher education; financial aid; annual limit on Michigan promise zone payments to eligible students by a promise zone authority; establish. Amends secs. 7 & 15 of 2008 PA 549 (MCL 390.1667 & 390.1675).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-09-18 - Referred To Committee On Appropriations [SB1078 Detail]

Download: Michigan-2013-SB1078-Introduced.html

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SENATE BILL No. 1078

 

 

September 18, 2014, Introduced by Senator CASWELL and referred to the Committee on Appropriations.

 

 

 

     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), as

 

amended by 2013 PA 210.

 

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) 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 All of the following apply to a proposed

 

promise of financial assistance:

 

     (i) It shall include, but is not limited to, a promise of

 

financial assistance to all eligible students residing within who

 

reside in the promise zone and who graduate from a public high

 

school or nonpublic high school located within that promise zone. ,

 

in an

 

     (ii) Subject to subsection (3)(b), the amount of the proposed

 

promise of financial assistance shall be established by the board

 

to reflect the amount available for disbursement to eligible

 

students and included in the annual budget under section 15. The

 

     (iii) Subject to subsection (3)(b), the amount of the proposed

 

promise of financial assistance to an eligible student shall, at a

 

minimum, equal or exceed the amount the board determines is

 

sufficient to pay for the qualified educational expenses for an the

 

eligible student to obtain an associate degree at a community or

 

junior college in this state, and shall not exceed the amount the

 

board determines is sufficient to pay for the qualified educational

 

expenses for an the 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 that does not exceed the average amount

 

of qualified educational expenses to obtain a bachelor's degree at

 

all public universities in this state.

 

     (iv) 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.

 

     (b) A complete description of any limitation on the promise of

 

financial assistance, 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.

 

     (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.

 

     (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.

 

     (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.

 

     (vi) If the promise of financial assistance is limited to

 

students who comply with requirements established by the board in

 

order to improve student progress toward degree completion.

 

     (vii) If the promise of financial assistance in a promise zone

 

that encompasses more than 2 school districts is limited to

 

students who reside in and graduate from high schools located

 

within the boundaries of fewer than all of its constituent school

 

districts.

 

     (c) A requirement that graduates of a public high school or

 

nonpublic high school exhaust all other known and available

 

restricted grants for qualified educational expenses 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 388.1896,

 

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 All of the following apply to a proposed promise of

 

financial assistance under subsection (2):

 

     (a) The proposed promise of financial assistance shall not

 

include funding for attendance at attending a public or private

 

postsecondary institution that is not located in this state.

 

     (b) The amount established by the board for disbursement to

 

eligible students in a fiscal year, and the amount actually

 

disbursed, shall not exceed $500,000.00. If necessary, the board

 

may reduce the amount of disbursements to eligible students in a

 

fiscal year under subsection (2) on a pro rata basis to reflect the

 

amount available under this subdivision.

 

     (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 receiving 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 is 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 receiving 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 is 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 board shall adopt a budget for the operation

 

of the authority for each fiscal year, before the beginning of that

 

fiscal year, based on a budget submitted to it by the director. The

 

budget shall be prepared in the manner and contain the information

 

required of municipal departments. Unless authorized by the

 

governing body, the budget of an authority shall not include any

 

money of the eligible entity.

 

     (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) and (3)(b), 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.