SENATE BILL NO. 911
  
  
  EXECUTIVE BUDGET BILL
  
  
  
        February 24, 1998, Introduced by Senators SCHWARZ, GOUGEON, STEIL            and MC MANUS and referred to the Committee on Appropriations.
  
  
  
  
        A bill to make appropriations for the state institutions of higher
  education and certain state purposes related to education for the fiscal
  year ending September 30, 1999; to provide for the expenditures of those
  appropriations; and to prescribe the powers and duties of certain state
  departments, institutions, agencies, and officers.      
  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:   
        Sec. 101.  There is appropriated for the state institutions of
  higher education and certain state purposes related to education, and
  subject to the conditions set forth in this bill, for the fiscal year
  ending September 30, 1999, the following respective amounts: 
  HIGHER EDUCATION
  APPROPRIATIONS SUMMARY:
    GROSS APPROPRIATION. . . . . . . .     $ 1,581,313,273
  Interdepartmental grant revenues:
   Total interdepartmental grants and 
        intradepartmental transfers. . . . .               0
ADJUSTED GROSS APPROPRIATION . . . . . .   $   1,581,313,273
Federal revenues:
  Total federal revenues . . . . .       3,600,000
Special revenue funds:
  Total local revenues . . . . . .               0
  Total private revenues . . . . .               0
  Total other state restricted revenues. . . . . .              0
  State general fund/general purpose . . . .    $   1,577,713,273
OPERATIONS
  Central Michigan University. . . . . .   $ 72,735,062
  Eastern Michigan University. . . . . .     77,278,273
  Ferris State University. . . . .      49,297,799
  Grand Valley State University. . . . .     47,031,334
  Lake Superior State University . . . . . .      12,655,100
  Michigan State University. . . . . . .    283,100,348
  Michigan Technological University. . . . .      48,379,062
  Northern Michigan University . . . . .     46,630,350
  Oakland University . . . . .     42,820,678
  Saginaw Valley State University. . . . . .      22,651,329
  University of Michigan-Ann Arbor . . . . .     319,257,372
  University of Michigan-Dearborn. . . . . .      23,419,678
   University of Michigan-Flint. . . . .     20,105,601
  Wayne State University . . . . .     226,674,472
  Western Michigan University. . . . . .   109,552,639
   GROSS APPROPRIATION . . . . . .    $   1,401,589,097
   Appropriated from:
  State general fund/general purpose . . . .    $   1,401,589,097
STATE AND REGIONAL PROGRAMS
  Agricultural experiment station. . . . . .    $ 29,872,744
  Cooperative extension service. . . . .     25,693,244
  Michigan molecular institute . . . . .        125,000
  Japan center for Michigan universities . . . . .        355,250
  Higher education database modernization and
    conversion . . . . .         150,000
  Midwestern higher education compact. . . . . . .       58,000
  GROSS APPROPRIATION. . . . .   $ 56,254,238
      Appropriated from:
  State general fund/general purpose . . . .    $ 56,254,238
MARTIN LUTHER KING, JR.-CESAR CHAVEZ-ROSA PARKS PROGRAM
  Select student supportive services . . . .    $  1,948,975
  Michigan college/university partnership program. . . . . .        584,693
  Visiting professors program. . . . . .      164,249
  GROSS APPROPRIATION. . . . .   $  2,697,917
      Appropriated from:
  State general fund/general purpose . . . .    $  2,697,917
GRANTS AND FINANCIAL AID
  State competitive scholarships . . . . . .    $ 32,169,620
   Tuition grants. . . . . . .     58,658,734
  Michigan work-study program. . . . . .      7,243,381
  Part-time independent student program. . . . . .      2,623,277
  Grant for Michigan resident dental graduates . . . .       4,565,416
  Grant for general degree graduates . . . .       5,246,078
  Grant for allied health graduates. . . . .         844,958
  Michigan education opportunity grants. . . . . .      2,060,557
  Robert C. Byrd honors scholarship program. . . . . .       1,300,000
  Tuition incentive program/high school 
        completion . . . . . .      2,000,000
   Center for advanced technologies-engineering
        tuition reimbursement. . . . . .     4,060,000
   GROSS APPROPRIATION . . . . . .    $120,772,021
      Appropriated from:
Federal revenues:
   DED-OPSE, grants to state for state student
     incentives. . . . .       2,300,000
   DED-OPSE, Byrd honors scholarships. . . . . . .      1,300,000
   State general fund/general purpose. . . . . . .    $    117,172,021
GENERAL SECTIONS
    Sec. 201.  (1) Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state sources for fiscal
year 1998-99 is estimated at $1,577,713,273.00 in this bill and state
spending from state sources paid to local units of government for fiscal
year 1998-99 is estimated at $4,667,700.00.  The itemized statement
below identifies appropriations from which spending to units of local
government will occur:
GRANTS AND FINANCIAL AID
   Part-time independent student program . . . . .   $  1,493,000
   Michigan education opportunity grants . . . . .        999,600
   Michigan work-study program . . . . .    2,175,100
     Total . . . . .   $  4,667,700
        (2) If it appears to the principal executive officer of a department
or branch that state spending to local units of government will be less
than the amount that was projected to be expended under subsection (1),
the principal executive officer shall immediately give notice of the
approximate shortfall to the state budget director. 
        Sec. 202. (1) The funds appropriated in section 101 to state
institutions of higher education shall be paid by the state treasurer to
the respective institutions in 11 equal monthly installments on the
sixteenth of each month, or the next succeeding business day, beginning
with October 16, 1998.  Except for Wayne State University, each
institution shall accrue its July and August 1999 payments to its
institutional fiscal year ending June 30, 1999.
        (2) The amount distributed to an institution shall not exceed the  
net appropriations plus additional distributions specifically authorized
by this bill.
        (3) All universities shall submit higher education institutional   
data inventory (HEIDI) data and associated financial and program
information requested by and in a manner prescribed by the state budget
director.  For universities with fiscal years ending June 30, 1998,
these data shall be submitted by October 15, 1998.  Universities with a
fiscal year ending September 30, 1998, shall submit preliminary HEIDI
data by November 15, 1998, and final data by December 15, 1998. 
        (4) A detailed description of procedures utilized to arrive at the 
amounts appropriated in section 101 shall be submitted to each
institution by the senate and house fiscal agencies. 
        Sec. 203.  Money received by the state from the federal government 
or private sources for the use of a college or university is
appropriated for the purpose for which it was provided.  The acceptance
and use of federal or private funds does not place an obligation upon
the legislature to continue the purposes for which the funds are made
available.      
        Sec. 204.  The expenditures and funding sources authorized under   
this bill are subject to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594. 
        Sec. 205.  All universities shall furnish all program and financial
information that is required by and in a manner prescribed by the state
budget director or the house or senate appropriations committee.         
        Sec. 206. As used in this appropriation bill, "DED-OPSE" means the
United States department of education office of postsecondary education.
GRANTS AND FINANCIAL AID 
        Sec. 301.  (1) Payments of the amounts included in section 101 for 
the state competitive scholarship program shall be distributed pursuant
to 1964 PA 208, MCL 390.971 to 390.981.         
        (2) The Michigan higher education assistance authority shall
implement a proportional competitive scholarship maximum award level for
recipients enrolled less than full-time in a given semester or term. 
        (3) If a student who receives an award under this section has his or
her tuition and fees paid under the Michigan educational trust program,
pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421
to 390.1444, and still has financial need, the funds awarded under this
section may be used for educational expenses other than tuition and
fees.
        (4) If the Michigan higher education assistance authority increases
the maximum award per eligible student from that provided in the
previous fiscal year, it shall not have the effect of reducing the
number of eligible students receiving awards in relation to the total
number of eligible applicants.  Any increase in the maximum grant shall
be proportional for all eligible students receiving awards.                   Sec. 302.  (1) The amounts appropriated in section 101 for the state
tuition grant program shall be distributed pursuant to 1966 PA 313, MCL
390.991 to 390.997a. 
        (2) Tuition grant awards shall be made to all eligible Michigan
residents who apply before September 1, 1998, and who are qualified. 
Tuition grant awards shall not be made to students newly enrolled in a
juris doctor law degree program after the 1995-96 academic year.        
        (3) The Michigan higher education assistance authority shall
determine an actual maximum tuition grant award per student that ensures
that the aggregate payments for the tuition grant program do not exceed
the appropriation contained in section 101 for the state tuition grant
program.  By October 15, 1998, and again by December 15, 1998, the
authority shall analyze the status of award commitments, shall make any
necessary adjustments, and shall confirm that those award commitments
will not exceed the appropriation contained in section 101 for the
tuition grant program.  The determination and actions shall be reported
to the state budget director and the house and senate fiscal agencies no
later than December 15, 1998.  If award adjustments are necessary, the
students shall be notified of the adjustment by the third Monday in
January. 
        (4) Any unexpended and unencumbered funds remaining on September 30,
1999, from the amounts appropriated in section 101 for the tuition grant
program shall not lapse on September 30, 1999, but shall continue to be
available for expenditure for tuition grants provided in the 1999-2000
fiscal year.  The use of these unexpended fiscal year 1998-99 funds
shall terminate at the end of the 1999-2000 fiscal year.
        (5) The Michigan higher education assistance authority shall con-  
tinue a proportional tuition grant maximum award level for recipients 
enrolled less than full-time in a given semester or term.         
        (6) If the Michigan higher education assistance authority increases
the maximum award per eligible student from that provided in the
previous fiscal year, it shall not have the effect of reducing the
number of eligible students receiving awards in relation to the total
number of eligible applicants.  Any increase in the maximum grant shall
be proportional for all eligible students receiving awards.         Sec. 303.  (1) Included in the appropriation in section 101 is funding for the
Michigan work-study program established under 1986 PA 288, MCL 390.1371
to 390.1382, and 1986 PA 303, MCL 390.1321 to 390.1332.  An effort
should be made by each institution participating in the Michigan work-study program to assure that not less than 10% of those undergraduate,
graduate, and professional students eligible to participate in the
program are placed with for-profit employers no later than December 31
of each year for which funding is provided under this bill.
        (2) The Michigan higher education assistance authority shall
allocate funds to institutions eligible for work-study money based upon
each institution's specific Pell grant index and each institution's
utilization rate of work-study funds for the 3 most recent years for
which statistics are available.         
        (3) The Michigan higher education assistance authority shall set   
aside not more than 5% of the total work-study appropriation to process
requests from participating institutions for allocation adjustments. 
Allocation adjustments shall be based on criteria set by the authority
prior to making the allocations under subsection (2).                    Sec. 304.  (1) Payments of the amounts included in section 101 for 
the general degree reimbursement program established under 1974 PA 75, 
MCL 390.1021 to 390.1027, shall be made for all degrees identified in  
section 1(1) of 1974 PA 75, MCL 390.1021, except doctor of dental sur- 
gery, doctor of dental medicine, juris doctor law, and allied health   
degrees. 
        (2) The reimbursement rate per eligible degree shall be the equally
prorated amount permitted by the appropriation, except that the amount
of the reimbursement for each associate degree shall be « of the rate of
reimbursement for the other degrees eligible under subsection (1) for
the general degree reimbursement program. 
        (3) From the general degree reimbursement program, $135,300.00 shall
be provided to Spring Arbor College for the southern Michigan state
prison program. 
        (4) From the general degree reimbursement program, $200,500.00 shall
be provided to the University of Detroit-Mercy for graduate research
aid.
        (5) From the general degree reimbursement program, $30,100.00 shall
be provided to Marygrove College for learning clinics.          
        (6) From the general degree reimbursement program, $50,000.00 shall
be provided to Suomi College for career education programs. 
        Sec. 305.  The reimbursement rate per eligible degree under the   
allied health degree reimbursement program established under 1974 PA 75,
MCL 390.1021 to 390.1027, shall be the equally prorated amount permitted
by the appropriation included in section 101.         
        Sec. 306.  Funds disbursed through the degree reimbursement programs
shall not be used by any recipient institution for theology or divinity
programs. 
        Sec. 307.  The auditor general shall audit selected enrollments,   
degrees, and awards at selected independent colleges and universities  
receiving awards administered by the department of treasury.  The audits
shall be based upon definitions and requirements established by the
state budget director and the senate and house fiscal agencies.  The
auditor general shall submit a report of findings to the senate and
house appropriations committees and the state budget director not later
than May 1, 1999. 
        Sec. 308.  The sums appropriated in section 101 for the student   
financial aid and degree reimbursement programs shall be paid out of the
state treasury and shall be distributed to the respective institutions
in accordance with a quarterly payment system as follows:                (a) For the state competitive scholarship, tuition incentive, and  
tuition grant programs, 40% shall be paid at the beginning of the
state's first fiscal quarter, 40% at the beginning of the state's second
fiscal quarter, l0% at the beginning of the state's third fiscal
quarter, and l0% at the beginning of the state's fourth fiscal quarter.  
      
        (b) For the work-study program, payments shall be made in 11 monthly
installments from October 1 to August 31 of any year. 
        (c) For the part-time independent student program and Michigan   
education opportunity grant program, 50% shall be paid at the beginning
of the state's first fiscal quarter, 25% at the beginning of the state's
second fiscal quarter, and 25% at the beginning of the state's third
fiscal quarter. 
        (d) For the general degree reimbursement program, allied health   
degree reimbursement program, Michigan resident dental grant program,
and Robert C. Byrd honors scholarship program, 50% shall be paid at the
beginning of the state's first fiscal quarter and 50% at the beginning
of the state's second fiscal quarter after the number of earned degrees
conferred and total amounts to be paid are certified.         Sec. 309. 
The Michigan higher education assistance authority shall determine the
needs analysis criteria for students to qualify for the competitive
scholarship program and tuition grant program.  To be consistent with
federal requirements, student wages may be taken into consideration when
determining the amount of the award.         
        Sec. 310.  (1) The funds appropriated in section 101 for the tuition
incentive program/high school completion program shall be distributed as
provided in this section and pursuant to the administrative procedures
for the tuition incentive program/high school completion program of the
family independence agency.         
        (2) As used in this section: 
        (a) "Phase I" means the first part of the tuition incentive
assistance program defined as the academic period of 80 semester or 120
term credits, or less, leading to an associate degree or certificate. 
        (b) "Phase II" means the second part of the tuition incentive   
assistance program which provides assistance in the third and fourth
year of 4-year degree programs.
        (c) "Department" means the family independence agency.
        (3) A person shall meet the following basic criteria and financial 
thresholds to be eligible for tuition incentive benefits: 
        (a) To be eligible for phase I, a person shall meet all of the
following criteria: 
        (i) Apply for certification to the department before
graduating from high school or completing the general education
development (GED)  certificate. 
        (ii) Be less than 20 years of age at the time of high school
graduation or GED completion.
        (iii) Be a United States citizen and a resident of Michigan
according to institutional criteria. 
        (iv) Be at least a half-time student, earning less than 80
semester or 120 term credits at a participating educational institution
within 4 years of high school graduation or GED certificate completion. 
        (b) To be eligible for phase II, a person shall meet either of the  
following criteria in addition to the criteria in subdivision (a):       
   (i) Complete at least 56 transferable semester or 84
transferable    term credits. 
        (ii) Obtain an associate degree or certificate at a
participating    institution. 
        (c) To be eligible for phase I or phase II, a person must be   
financially eligible as determined by the department.  A person is   
financially eligible for the tuition incentive program if that person
was medicaid eligible for 24 months within the 36 months before
application. Certification of eligibility may begin in the sixth grade
and continue until the time of enrollment in a participating
institution. 
        (4) For phase I, the department shall provide payment on behalf of a
person eligible under subsection (3).  The department shall reject
billings that are excessive or outside the guidelines for the type of
educational institution.
        (5) For phase I, all of the following apply:
        (a) Payments for associate degree or certificate programs shall not
be made for more than 80 semester or 120 term credits for any individual
student at any participating institution.
        (b) For persons enrolled at a Michigan community college, the   
department shall pay the current in-district tuition and mandatory fees.
For persons residing in an area that is not included in any community
college district, the out-of-district tuition rate may be authorized. 
        (c) For persons enrolled at a Michigan public university, the   
department shall pay lower level resident tuition and mandatory fees for
the current year. 
        (d) For persons enrolled at a Michigan independent, nonprofit degree
granting college or university or a Michigan federal tribally controlled
community college, the department shall pay mandatory fees for the
current year and a per credit payment that does not exceed the average
community college in-district per credit tuition rate as reported on
August 1, for the immediately preceding academic year.        (6) A person participating in phase II may be eligible for    additional funds not
to exceed $500.00 per semester or $400.00 per term up to a maximum of
$2,000.00 subject to the following conditions:    (a) Credits are earned in a 4-year program at a Michigan degree    granting 4-year
college or university. 
        (b) The tuition reimbursement is for coursework completed within 30
months of completion of the phase I requirements.         
        (7) Program payments shall not be used by any recipient for theology
or divinity courses. 
        (8) The department shall work closely with participating
institutions to develop an application and eligibility determination
process that will provide the highest level of participation and ensure
that all requirements of the program are met. 
        (9) Applications for the tuition incentive program may be approved 
at any time after the student begins the sixth grade.  If a
determination of financial eligibility is made, that determination is
valid as long as the student meets all other program requirements and
conditions. 
        (10) Each institution shall ensure that all known available   
restricted grants for tuition and fees are used prior to billing the   
tuition incentive program for any portion of a student's tuition and   
fees. 
        (11) The department shall ensure that the tuition incentive program
is well publicized and that potentially eligible medicaid clients are
provided information on the program.  The department shall provide the
necessary funding and staff to fully operate the program. 
        (12) When statutory provisions are enacted to provide for a tuition
incentive program/high school completion program, the provisions of this
section are superseded.
        (13) Any unexpended and unencumbered funds remaining on September
30, 1999 from the amounts appropriated in section 101 for the tuition
incentive program shall not lapse on September 30, 1999, but shall
continue to be available for expenditure for the tuition incentive
program in the fiscal year ending September 30, 2000.
        Sec. 311.  To enable the legislature to evaluate the appropriation 
needs of higher education, each independent college and university shall
make available to the legislature upon request, data regarding grants
for the preceding, current, and ensuing fiscal years.                         Sec. 312. The funds appropriated in section 101 for the center for 
advanced technologies-engineering program provided in conjunction with 
the coalition for new manufacturing education are designated to   
focus:hope to reimburse the costs of the manufacturing based education.  
STATE UNIVERSITIES         
        Sec. 401.  (1) Included in section 101 is $5,700,387.00 to Wayne
State University for the Joseph F. Young, Sr. psychiatric research and
training program.  Wayne State University shall use these funds for
psychiatric laboratory and clinical research, training, and treatment
services.  Within the available appropriation, services shall not be
denied to any patient who meets established research guidelines for
treatment on the basis of personal financial circumstances, age,
geographic residence, or projected/actual length of treatment as
medically warranted. 
        (2) Wayne State University shall report the following information to
the department of community health by November 1, 1999:         
        (a) The number and type of psychiatric research projects funded by 
the appropriation described in subsection (1).
        (b) The number and type of students trained and the location of   
training funded by the appropriation.
        (c) Demographic data regarding the number and profile of patients to
receive psychiatric services funded by the appropriation and a profile
of the services provided. 
        (d) A summary budget outlining major expenditure categories and any
first- and third-party reimbursements.  
        (3) Copies of these reports shall also be provided to the house and
senate fiscal agencies and the state budget director.
        Sec. 402.  (1) There is created the higher education institutional 
data inventory advisory committee.  The committee shall be appointed by
the state budget director and shall consist of the following members:    
    
        (a) One representative from the house fiscal agency. 
        (b) One representative from the senate fiscal agency.         
        (c) One representative from the state budget director's office. 
        (d) Three representatives of the presidents council of state   
universities.  The presidents council shall appoint 1 representative
each from a masters, a doctoral, and a research university. 
        (2) The committee shall provide for the general scope and direction
for implementing the conversion and modernization of the state's higher
education databases, for which funding is provided in section 101.  
        (3) The committee shall prepare a plan for the conversion and
modernization effort.  The plan shall include, but is not limited to,
all of the following: 
        (a) The development of a data dictionary.        
        (b) The integration of appropriate federal and state databases.      
   (c) The assurance of the accuracy of the data.         
        Sec. 403.  From the funds appropriated in section 101, each state  
university shall establish a system to track students that graduate from
the university.  The system shall minimally provide information on the
students' field of study and year of graduation, whether they are
employed or continuing their education, the field in which they are
employed or their subsequent field of academic study, their job title,
their salary, and their city, town, or other place of residence. 
MARTIN LUTHER KING, JR. - CESAR CHAVEZ, ROSA PARKS PROGRAMS
        Sec. 501.  (1) Included in the appropriation for each public
university in section 101 is funding for the Martin Luther King, Jr. -
Cesar Chavez, Rosa Parks future faculty program, that is intended to
increase the pool of minority candidates pursuing full-time faculty
teaching careers in postsecondary education in this state.         
        (2) The program shall be administered by each university in a manner
prescribed by the Michigan department of education.
        Sec. 502.  (1) Included in the appropriation for each public   
university in section 101 is funding for the Martin Luther King, Jr. - 
Cesar Chavez, Rosa Parks college day program that is intended to
introduce school children underrepresented in postsecondary education to
the potential of a college education.         
        (2) Individual program plans of each university shall include a   
budget of equal contributions from this program, the participating
public university, the participating school district, and the
participating independent degree granting college.  College day funds
shall not be expended to cover indirect costs.  Not more than 20% of the
university match shall be attributable to indirect costs.                     (3) The program shall be administered by each university in a manner
prescribed by the Michigan department of education. 
        Sec. 503.  (1) Included in section 101 is funding for the Martin   
Luther King, Jr. - Cesar Chavez, Rosa Parks select student support
services program for developing academically and economically
disadvantaged student retention programs for 4-year public and
independent educational institutions in this state.         
        (2) An award made under this program to any 1 institution shall not
be greater than $150,000.00, and the amount awarded shall be matched on
a 70% state, 30% college or university basis.         
        (3) The program shall be administered by the Michigan department of
education.         
        Sec. 504.  (1) Included in section 101 is funding for the Martin   
Luther King, Jr. - Cesar Chavez, Rosa Parks linkage program between   
4-year universities and public community colleges, which is intended to
increase the number of underrepresented minority students who transfer
from community colleges into baccalaureate programs.                     (2) The grants shall be made under this program to Michigan public 
universities.  An award to any 1 institution shall not be greater than 
$150,000.00, and the amount awarded shall be matched on a 70% state, 30%
university basis. 
        (3) The program shall be administered by the the Michigan department
of education.         
        Sec. 505.  (1) Included in the appropriation in section 101 is
funding for the Martin Luther King, Jr. - Cesar Chavez, Rosa Parks
visiting professors program which is intended to increase the number of
minority instructors in the classroom and provide role models for
underrepresented minority students. 
        (2) The program shall be administered by the Michigan department of
education.            
UNIVERSITY SERVICE TO K-12 EDUCATION         
        Sec. 601.  (1) From the amount appropriated in section 101 for state
universities, the state universities shall systematically inform
Michigan high schools regarding the academic status of students from
each high school in a manner prescribed by the presidents council, state
universities of Michigan in cooperation with the Michigan association of
secondary school principals. 
        (2) The Michigan high schools shall systematically inform the state
universities about the use of information received under this section in
a manner prescribed by the Michigan association of secondary school
principals in cooperation with the presidents council, state
universities of Michigan. 
GENERAL REPORTS AND AUDITS         
        Sec. 701.  (1) The auditor general shall audit enrollments at 5
randomly selected public universities.  The audits shall be based upon
the definitions and requirements established by the state budget
director and the senate and house fiscal agencies.  The audits shall be
based on uniform reporting categories and shall include higher education
institutional data inventory (HEIDI) data.  The auditor general shall
submit a report of findings to the house and senate appropriations
committees and the state budget director no later than March 1, 1999. 
        (2) Student credit hours reports shall not include the following:          (a) Student credit hours generated through correspondence courses, 
credit by examination, or inmate prison programs regardless of teaching
location.         
        (b) Student credit hours generated in new degree programs after   
January 1, 1975, that have not been specifically authorized for funding
by the legislature, except spin-off programs converted from existing
core programs that do all of the following:         
        (i) Represent new options, fields, or concentrations within
existing programs. 
        (ii) Are consistent with the current institutional role and   
mission. 
        (iii) Are accommodated within the continuing funding base of
the    institution. 
        (iv) Do not require a new degree level beyond that which the
institution is currently authorized to grant within that discipline or
field. 
        (v) Do not require funding from the state other than that
provided  by the student credit hours generated within the program,
either before program initiation or within the first 3 years of program
operation. 
        Sec. 702.  The principal executive officer of each institution of  
higher education receiving an appropriation under this act shall expend
a portion of the funds appropriated to that institution to make a report
to the auditor general, the house and senate fiscal agencies, and the
state budget director within 60 days after the auditor general issues
his or her annual report on the operation of the institution.  The
institution's report shall specify all of the following: 
        (a) The recommendations of the auditor general implemented by the  
institution, including projected dates and resources required, if any,
to achieve compliance. 
        (b) The recommendations of the auditor general not implemented by  
the institution or implemented by the institution as modified.                (c) The rationale for not implementing a recommendation of the
auditor general or of implementing a recommendation as modified.        
        Sec. 703.  (1) Each state university shall annually submit a report
to the state budget director and house and senate fiscal  agencies on
efforts to ensure the English language oral proficiency of  teaching
faculty. 
        (2) The next reporting date for the report under subsection (1) is 
November 1, 1998. 
        Sec. 704.  (1) Each state university shall report the following   
information for the 1997-98 academic year to the house and senate fiscal
agencies and the state budget director: 
        (a) Separately, the number of ranked faculty, unranked faculty, and
graduate assistants who taught an undergraduate class section.           (b) The total number of undergraduate credit hours and section credits
taught by each of the following:         
        (i) Ranked faculty. 
        (ii) Unranked faculty.         
        (iii) Graduate assistants.         
        (2) For the purposes of this section, "ranked faculty", "unranked  
faculty", and "graduate assistants" mean those terms as defined in the 
higher education institutional data inventory (HEIDI).         
        (3) This information shall be provided on or before October 31,   
1998.
        Sec. 705.  The auditor general shall conduct not less than 3   
performance audits of the state universities during the fiscal year   
ending September 30, 1999.















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