HIGHER ED.: DENYING FINANCIAL AID - S.B. 563: FLOOR ANALYSIS

Senate Bill 563 (as reported without amendment)

Sponsor: Senator Loren Bennett

Committee: Education

CONTENT

The bill would amend Public Act 174 of 1976, which provides for free tuition for State resident North American Indians in Michigan, to make ineligible for that aid a person who was subject to a court order denying a Federal benefit due to the conviction of any State or Federal offense for the distribution or possession of controlled substances. The person would not be eligible for the financial aid for the duration of the court order. The bill refers to Federal benefits as described in the Federal Comprehensive Drug Abuse Prevention and Control Act.

(Under the Comprehensive Drug Abuse Prevention and Control Act, "Federal benefit" means the issuance of any grant, contract, loan, professional license, or commercial license provided by an agency of the United States or by appropriated funds of the United States. "Federal benefit" does not include any retirement, welfare, Social Security, health, disability, veterans benefit, public housing, or other similar benefit, or any other benefit for which payments or services are required for eligibility.)

MCL 390.1251 et al. - Legislative Analyst: L. Arasim

FISCAL IMPACT

There could be additional administrative costs for Michigan public colleges and universities and for Bay Mills Tribal College to determine if an individual was subject to a court order under the Federal Controlled Substances Act. The $3,382,176 level of State funding that was included in the FY 1996-97 base appropriation for each community college and university would not be affected. The bill would have no fiscal impact on local government.

Date Completed: 2-4-98 - Fiscal Analyst: E. Jeffries

floor\sb563

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.