EDUCATION TRUST AMENDMENTS H.B. 5783: FLOOR ANALYSIS
House Bill 5783 (as reported without amendment)
Sponsor: Representative Gene DeRossett
House Committee: Tax Policy
Senate Committee: Finance
CONTENT
The bill would amend the Michigan Education Trust (MET) Act to allow local governments and charitable organizations to enter into MET contracts for unnamed beneficiaries; and exempt certain information from disclosure under the Freedom of Information Act.
The MET Act allows individuals to enter into a contract with the Michigan Education Trust for the advance payment of tuition for qualified beneficiaries to attend a State institution of higher education, without further tuition costs to the beneficiary. The program generally does not cover certain required fees, room, board, or books.
The Act requires a contract between MET and a purchaser to specify the name and age of the qualified beneficiary. The bill would make an exception to this requirement for contracts purchased by a State or local governmental agency or a charitable organization exempt from taxation under 501(c)(3) of the Internal Revenue Code, as part of a scholarship program.
The bill would exempt from disclosure under the Freedom of Information Act any writing or information provided to MET for the purposes of contracting for payment by a purchaser, qualified beneficiary, or person appointed to act on behalf of the purchaser or qualified beneficiary.
Under the Act, termination of a MET contract and the right to receive a refund may not be authorized under the contract if the qualified beneficiary has completed more than half of the credit hours required by the institution of higher education for a bachelor's degree. The bill, instead, would allow the contract to provide that the trust could deny payment of a refund upon termination if the beneficiary had completed more than half of the credit hours.
MCL 390.1426-390.1428 Legislative Analyst: J.P. Finet
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 9-20-04 Fiscal Analyst: Bill Bowerman
floor\hb5783 Analysis available @ http://www.michiganlegislature.org
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.
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. hb5783/0304