HB-4396, As Passed Senate, June 17, 2003                                                                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SENATE SUBSTITUTE FOR                             

                                                                                

                               HOUSE BILL NO. 4396                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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, 2003 and for the fiscal year           

                                                                                

    ending September 30, 2004; to provide for the expenditures of those         

                                                                                

    appropriations; and to prescribe the powers and duties of certain           

                                                                                

    state departments, institutions, agencies, employees, and officers.         

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2             LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2003-2004                

                                                                                

3       Sec. 101.  Subject to the conditions set forth in this act, the             

                                                                                

4   amounts listed in this part are appropriated for higher education for       

                                                                                

5   the fiscal year ending September 30, 2004, from the funds indicated in      

                                                                                

6   this part.  The following is a summary of the appropriations in this        

                                                                                

7   part:                                                                       

                                                                                

8   HIGHER EDUCATION                                                            

                                                                                


                                                                                

1   APPROPRIATION SUMMARY                                                       

                                                                                

2       Full-time equated classified positions..........1.0                     

                                                                                

3     GROSS APPROPRIATION................................. $   1,818,181,274    

                                                                                

4       Interdepartmental grant revenues:                                       

                                                                                

5     Total interdepartmental grants and intradepartmental                      

                                                                                

6       transfers.........................................                 0    

                                                                                

7     ADJUSTED GROSS APPROPRIATION........................ $   1,818,181,274    

                                                                                

8       Federal revenues:                                                       

                                                                                

9     Total federal revenues..............................         4,400,000    

                                                                                

10      Special revenue funds:                                                  

                                                                                

11    Total local revenues................................                 0    

                                                                                

12    Total private revenues..............................                 0    

                                                                                

13    Total other state restricted revenues...............       171,540,926    

                                                                                

14    State general fund/general purpose.................. $   1,642,240,348    

                                                                                

15      Sec.  102.  CENTRAL MICHIGAN UNIVERSITY                                     

                                                                                

16    Operations.......................................... $      83,944,000    

                                                                                

17    GROSS APPROPRIATION................................. $      83,944,000    

                                                                                

18        Appropriated from:                                                    

                                                                                

19      Special revenue funds:                                                  

                                                                                

20    Michigan merit award trust fund.....................         2,940,725    

                                                                                

21    State general fund/general purpose.................. $      81,003,275    

                                                                                

22      Sec.  103.  EASTERN MICHIGAN UNIVERSITY                                     

                                                                                

23    Operations.......................................... $      78,973,339    

                                                                                

24    GROSS APPROPRIATION................................. $      78,973,339    

                                                                                

25        Appropriated from:                                                    

                                                                                

26      Special revenue funds:                                                  

                                                                                

27    Michigan merit award trust fund.....................           100,000    


                                                                                

1     State general fund/general purpose.................. $      78,873,339    

                                                                                

2       Sec.  104.  FERRIS STATE UNIVERSITY                                         

                                                                                

3     Operations.......................................... $      50,068,210    

                                                                                

4     GROSS APPROPRIATION................................. $      50,068,210    

                                                                                

5         Appropriated from:                                                    

                                                                                

6       Special revenue funds:                                                  

                                                                                

7     Michigan merit award trust fund.....................           100,000    

                                                                                

8     State general fund/general purpose.................. $      49,968,210    

                                                                                

9       Sec.  105.  GRAND VALLEY STATE UNIVERSITY                                   

                                                                                

10    Operations.......................................... $      67,216,000    

                                                                                

11    GROSS APPROPRIATION................................. $      67,216,000    

                                                                                

12        Appropriated from:                                                    

                                                                                

13      Special revenue funds:                                                  

                                                                                

14    Michigan merit award trust fund.....................        13,130,181    

                                                                                

15    State general fund/general purpose.................. $      54,085,819    

                                                                                

16      Sec.  106.  LAKE SUPERIOR STATE UNIVERSITY                                  

                                                                                

17    Operations.......................................... $      12,941,842    

                                                                                

18    GROSS APPROPRIATION................................. $      12,941,842    

                                                                                

19        Appropriated from:                                                    

                                                                                

20      Special revenue funds:                                                  

                                                                                

21    Michigan merit award trust fund.....................           100,000    

                                                                                

22    State general fund/general purpose.................. $      12,841,842    

                                                                                

23      Sec.  107.  MICHIGAN STATE UNIVERSITY                                       

                                                                                

24    Operations.......................................... $     293,483,722    

                                                                                

25    Agricultural experiment station.....................        33,163,816    

                                                                                

26    Cooperative extension service.......................        28,604,340    

                                                                                

27    GROSS APPROPRIATION................................. $     355,251,878    


                                                                                

1         Appropriated from:                                                    

                                                                                

2       Special revenue funds:                                                  

                                                                                

3     Michigan merit award trust fund.....................           100,000    

                                                                                

4     State general fund/general purpose.................. $     355,151,878    

                                                                                

5       Sec.  108.  MICHIGAN TECHNOLOGICAL UNIVERSITY                               

                                                                                

6     Operations.......................................... $      49,817,398    

                                                                                

7     GROSS APPROPRIATION................................. $      49,817,398    

                                                                                

8         Appropriated from:                                                    

                                                                                

9       Special revenue funds:                                                  

                                                                                

10    Michigan merit award trust fund.....................           100,000    

                                                                                

11    State general fund/general purpose.................. $      49,717,398    

                                                                                

12      Sec.  109.  NORTHERN MICHIGAN UNIVERSITY                                    

                                                                                

13    Operations.......................................... $      46,911,544    

                                                                                

14    GROSS APPROPRIATION................................. $      46,911,544    

                                                                                

15        Appropriated from:                                                    

                                                                                

16      Special revenue funds:                                                  

                                                                                

17    Michigan merit award trust fund.....................           100,000    

                                                                                

18    State general fund/general purpose.................. $      46,811,544    

                                                                                

19      Sec.  110.  OAKLAND UNIVERSITY                                              

                                                                                

20    Operations.......................................... $      50,576,000    

                                                                                

21    GROSS APPROPRIATION................................. $      50,576,000    

                                                                                

22        Appropriated from:                                                    

                                                                                

23      Special revenue funds:                                                  

                                                                                

24    Michigan merit award trust fund.....................         3,429,858    

                                                                                

25    State general fund/general purpose.................. $      47,146,142    

                                                                                

26      Sec.  111.  SAGINAW VALLEY STATE UNIVERSITY                                 

                                                                                

27    Operations.......................................... $      27,244,000    


                                                                                

1     GROSS APPROPRIATION................................. $      27,244,000    

                                                                                

2         Appropriated from:                                                    

                                                                                

3       Special revenue funds:                                                  

                                                                                

4     Michigan merit award trust fund.....................         2,590,062    

                                                                                

5     State general fund/general purpose.................. $      24,653,938    

                                                                                

6       Sec.  112.  UNIVERSITY OF MICHIGAN-ANN ARBOR                                

                                                                                

7     Operations.......................................... $     327,306,045    

                                                                                

8     GROSS APPROPRIATION................................. $     327,306,045    

                                                                                

9         Appropriated from:                                                    

                                                                                

10      Special revenue funds:                                                  

                                                                                

11    Michigan merit award trust fund.....................           100,000    

                                                                                

12    State general fund/general purpose.................. $     327,206,045    

                                                                                

13      Sec.  113.  UNIVERSITY OF MICHIGAN-DEARBORN                                 

                                                                                

14    Operations.......................................... $      25,293,938    

                                                                                

15    GROSS APPROPRIATION................................. $      25,293,938    

                                                                                

16        Appropriated from:                                                    

                                                                                

17      Special revenue funds:                                                  

                                                                                

18    Michigan merit award trust fund.....................           100,000    

                                                                                

19    State general fund/general purpose.................. $      25,193,938    

                                                                                

20      Sec.  114.  UNIVERSITY OF MICHIGAN-FLINT                                    

                                                                                

21    Operations.......................................... $      21,761,282    

                                                                                

22    GROSS APPROPRIATION................................. $      21,761,282    

                                                                                

23        Appropriated from:                                                    

                                                                                

24      Special revenue funds:                                                  

                                                                                

25    Michigan merit award trust fund.....................           100,000    

                                                                                

26    State general fund/general purpose.................. $      21,661,282    

                                                                                

27      Sec.  115.  WAYNE STATE UNIVERSITY                                          


                                                                                

1     Operations.......................................... $     228,379,908    

                                                                                

2     GROSS APPROPRIATION................................. $     228,379,908    

                                                                                

3         Appropriated from:                                                    

                                                                                

4       Special revenue funds:                                                  

                                                                                

5     Michigan merit award trust fund.....................           100,000    

                                                                                

6     State general fund/general purpose.................. $     228,279,908    

                                                                                

7       Sec.  116.  WESTERN MICHIGAN UNIVERSITY                                     

                                                                                

8     Operations.......................................... $     123,209,294    

                                                                                

9     GROSS APPROPRIATION................................. $     123,209,294    

                                                                                

10        Appropriated from:                                                    

                                                                                

11      Special revenue funds:                                                  

                                                                                

12    Michigan merit award trust fund.....................           100,000    

                                                                                

13    State general fund/general purpose.................. $     123,109,294    

                                                                                

14      Sec.  117.  STATE AND REGIONAL PROGRAMS                                     

                                                                                

15      Full-time equated positions.....................1.0                     

                                                                                

16    Higher education database modernization and                               

                                                                                

17      conversion--1.0 FTE positions..................... $         200,100    

                                                                                

18    Midwestern higher education compact.................               100    

                                                                                

19    GROSS APPROPRIATION................................. $         200,200    

                                                                                

20        Appropriated from:                                                    

                                                                                

21    State general fund/general purpose.................. $         200,200    

                                                                                

22      Sec.  118.  MARTIN LUTHER KING, JR.-CESAR                                   

                                                                                

23  CHAVEZ-ROSA PARKS PROGRAM                                                   

                                                                                

24    Select student supportive services.................. $       1,956,200    

                                                                                

25    Michigan college/university partnership program.....           586,900    

                                                                                

26    Morris Hood, Jr. educator development program.......           148,700    

                                                                                

27    GROSS APPROPRIATION................................. $       2,691,800    


                                                                                

1         Appropriated from:                                                    

                                                                                

2     State general fund/general purpose.................. $       2,691,800    

                                                                                

3       Sec.  119.  GRANTS AND FINANCIAL AID                                        

                                                                                

4     State competitive scholarships...................... $      33,111,538    

                                                                                

5     Tuition grants......................................        60,414,821    

                                                                                

6     Michigan work-study program.........................         7,326,349    

                                                                                

7     Part-time independent student program...............         2,653,309    

                                                                                

8     Dental clinics grant................................         4,547,050    

                                                                                

9     Grant for general degree graduates..................         5,665,647    

                                                                                

10    Grant for allied health graduates...................           841,614    

                                                                                

11    Michigan education opportunity grants...............         2,084,168    

                                                                                

12    Robert C. Byrd honors scholarship program...........         1,500,000    

                                                                                

13    Nursing scholarship program.........................         4,000,100    

                                                                                

14    Michigan merit award program........................       135,000,000    

                                                                                

15    Tuition incentive program...........................         9,250,000    

                                                                                

16    GROSS APPROPRIATION................................. $     266,394,596    

                                                                                

17        Appropriated from:                                                    

                                                                                

18      Federal revenues:                                                       

                                                                                

19    Higher education act of 1965, title IV, 20 U.S.C....         2,900,000    

                                                                                

20    Higher education act of 1965, title IV, part A......         1,500,000    

                                                                                

21      Special revenue funds:                                                  

                                                                                

22    Michigan merit award trust fund.....................       148,350,100    

                                                                                

23    State general fund/general purpose.................. $     113,644,496    

                                                                                

                                                                                

                                                                                

24                                    PART 2                                    

                                                                                

25        PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2003-2004        

                                                                                

26  GENERAL SECTIONS                                                            


                                                                                

1       Sec. 201.  Pursuant to section 30 of article IX of the state                

                                                                                

2   constitution of 1963, total state spending from state resources under       

                                                                                

3   part 1 for fiscal year 2003-2004 is $1,813,781,274.00 and state             

                                                                                

4   spending from state resources to be paid to local units of government       

                                                                                

5   for fiscal year 2003-2004 is $3,759,100.00.  The itemized statement         

                                                                                

6   below identifies the estimated appropriations from which spending to        

                                                                                

7   units of local government will occur:                                       

                                                                                

8     Part-time independent student program............... $       1,255,700    

                                                                                

9     Michigan education opportunity grant................           932,900    

                                                                                

10    Michigan work-study.................................         1,570,500    

                                                                                

11    TOTAL............................................... $       3,759,100    

                                                                                

12      Sec. 202.  The appropriations authorized under this act are                 

                                                                                

13  subject to the management and budget act, 1984 PA 431, MCL 18.1101 to       

                                                                                

14  18.1594.                                                                    

                                                                                

15      Sec. 208.  Unless otherwise specified, the institutions of higher           

                                                                                

16  education receiving appropriations in part 1 shall use the Internet to      

                                                                                

17  fulfill the reporting requirements of this act.  This requirement may       

                                                                                

18  include transmission of reports via electronic mail to the recipients       

                                                                                

19  identified for each reporting requirement, or it may include placement      

                                                                                

20  of reports on an Internet or Intranet site.                                 

                                                                                

21      Sec. 209.  Funds appropriated in part 1 shall not be used for the           

                                                                                

22  purchase of foreign goods or services, or both, if competitively            

                                                                                

23  priced and of comparable quality American goods and services, or both,      

                                                                                

24  are available.  Not later than May 1, 2004, each university shall have      

                                                                                

25  available upon request information on efforts to comply with this           

                                                                                

26  section.                                                                    

                                                                                

27      Sec. 212.  (1) The funds appropriated in part 1 to state                    


                                                                                

1   institutions of higher education shall be paid out of the state             

                                                                                

2   treasury and distributed by the state treasurer to the respective           

                                                                                

3   institutions in 11 equal monthly installments on the sixteenth of each      

                                                                                

4   month, or the next succeeding business day, beginning with October 16,      

                                                                                

5   2003.  Except for Wayne State University, each institution shall            

                                                                                

6   accrue its July and August 2004 payments to its institutional fiscal        

                                                                                

7   year ending June 30, 2004.                                                  

                                                                                

8       (2) All universities shall submit higher education institutional            

                                                                                

9   data inventory (HEIDI) data and associated financial and program            

                                                                                

10  information requested by and in a manner prescribed by the state            

                                                                                

11  budget director.  For universities with fiscal years ending June 30,        

                                                                                

12  2003, these data shall be submitted to the state budget director by         

                                                                                

13  October 15, 2003.  Universities with a fiscal year ending September         

                                                                                

14  30, 2003 shall submit preliminary HEIDI data by November 15, 2003 and       

                                                                                

15  final data by December 15, 2003.  If a university fails to submit           

                                                                                

16  HEIDI data and associated financial aid program information in              

                                                                                

17  accordance with this reporting schedule, the state treasurer shall          

                                                                                

18  withhold the monthly installments under subsection (1) to the               

                                                                                

19  university until those data are submitted.                                  

                                                                                

20      (3) A detailed description of procedures utilized to arrive at the          

                                                                                

21  amounts appropriated in part 1 shall be submitted to each institution       

                                                                                

22  by the senate and house fiscal agencies.                                    

                                                                                

23      Sec. 213.  Funds received by the state from the federal                     

                                                                                

24  government or private sources for the use of a college or university        

                                                                                

25  are appropriated for the purposes for which they are provided.  The         

                                                                                

26  acceptance and use of federal or private funds do not place an              

                                                                                

27  obligation upon the legislature to continue the purposes for which the      


                                                                                

1   funds are made available.                                                   

                                                                                

2       Sec. 214.  If section 274 of the income tax act of 1967, 1967               

                                                                                

3   PA 281, MCL 206.274, is not repealed and if a state institution of          

                                                                                

4   higher education that receives funds under this act notifies the            

                                                                                

5   department of treasury regarding its tuition and fee rates in order to      

                                                                                

6   qualify as an eligible institution for the Michigan tuition tax credit      

                                                                                

7   under section 274 of the income tax act of 1967, 1967 PA 281,               

                                                                                

8   MCL 206.274, the institution shall also submit the notification and         

                                                                                

9   applicable documentation of tuition and fee changes to the house and        

                                                                                

10  senate fiscal agencies.                                                     

                                                                                

11      Sec. 215.  A state institution of higher education that receives            

                                                                                

12  funds under this act shall furnish all program and financial                

                                                                                

13  information that is required by and in a manner prescribed by the           

                                                                                

14  state budget director or the house or senate appropriations                 

                                                                                

15  committee.                                                                  

                                                                                

                                                                                

                                                                                

16  GRANTS AND FINANCIAL AID                                                    

                                                                                

17      Sec. 301.  (1) Payments of the amounts included in part 1 for the           

                                                                                

18  state competitive scholarship program shall be distributed pursuant to      

                                                                                

19  1964 PA 208, MCL 390.971 to 390.981.                                        

                                                                                

20      (2) The Michigan higher education assistance authority shall                

                                                                                

21  implement a proportional competitive scholarship maximum award level        

                                                                                

22  for recipients enrolled less than full-time in a given semester or          

                                                                                

23  term.                                                                       

                                                                                

24      (3) If a student who receives an award under this section has his           

                                                                                

25  or her tuition and fees paid under the Michigan educational trust           

                                                                                

26  program, pursuant to the Michigan education trust act, 1986 PA 316,         


                                                                                

1   MCL 390.1421 to 390.1444, and still has financial need, the funds           

                                                                                

2   awarded under this section may be used for educational expenses other       

                                                                                

3   than tuition and fees.                                                      

                                                                                

4       (4) If the Michigan higher education assistance authority                   

                                                                                

5   increases the maximum award per eligible student from that provided in      

                                                                                

6   the previous fiscal year, it shall not have the effect of reducing the      

                                                                                

7   number of eligible students receiving awards in relation to the total       

                                                                                

8   number of eligible applicants.  Any increase in the maximum grant           

                                                                                

9   shall be proportional for all eligible students receiving awards.           

                                                                                

10      Sec. 302.  (1) The amounts appropriated in part 1 for the state             

                                                                                

11  tuition grant program shall be distributed pursuant to 1966 PA 313,         

                                                                                

12  MCL 390.991 to 390.997a.                                                    

                                                                                

13      (2) Tuition grant awards shall be made to all eligible Michigan             

                                                                                

14  residents who apply before July 15, 2003 and who are qualified.             

                                                                                

15  Tuition grant awards shall not be made to students newly enrolled in a      

                                                                                

16  juris doctor law degree program after the 1995-96 academic year.            

                                                                                

17      (3) The Michigan higher education assistance authority shall                

                                                                                

18  determine an actual maximum tuition grant award per student that            

                                                                                

19  ensures that the aggregate payments for the tuition grant program do        

                                                                                

20  not exceed the appropriation contained in part 1 for the state tuition      

                                                                                

21  grant program.  By December 15, 2003, and again by February 1, 2004,        

                                                                                

22  the authority shall analyze the status of award commitments, shall          

                                                                                

23  make any necessary adjustments, and shall confirm that those award          

                                                                                

24  commitments will not exceed the appropriation contained in part 1 for       

                                                                                

25  the tuition grant program.  The determination and actions shall be          

                                                                                

26  reported to the state budget director and the house and senate fiscal       

                                                                                

27  agencies no later than February 15, 2004.  If award adjustments are         


                                                                                

1   necessary, the students shall be notified of the adjustment by the          

                                                                                

2   third Monday in February.                                                   

                                                                                

3       (4) Any unexpended and unencumbered funds remaining on                      

                                                                                

4   September 30, 2004 from the amounts appropriated in part 1 for the          

                                                                                

5   tuition grant program shall not lapse on September 30, 2004, but shall      

                                                                                

6   continue to be available for expenditure for tuition grants provided        

                                                                                

7   in the 2004-2005 fiscal year.  The use of these unexpended fiscal year      

                                                                                

8   2003-2004 funds shall terminate at the end of the 2004-2005 fiscal          

                                                                                

9   year.                                                                       

                                                                                

10      (5) The Michigan higher education assistance authority shall                

                                                                                

11  continue a proportional tuition grant maximum award level for               

                                                                                

12  recipients enrolled less than full-time in a given semester or term.        

                                                                                

13      (6) If the Michigan higher education assistance authority                   

                                                                                

14  increases the maximum award per eligible student from that provided in      

                                                                                

15  the previous fiscal year, it shall not have the effect of reducing the      

                                                                                

16  number of eligible students receiving awards in relation to the total       

                                                                                

17  number of eligible applicants.  Any increase in the maximum grant           

                                                                                

18  shall be proportional for all eligible students receiving awards for        

                                                                                

19  fiscal year 2003-2004.                                                      

                                                                                

20      (7) All Ferris State University students enrolled at Kendall                

                                                                                

21  College of Art and Design prior to January 1, 2001 who were qualified       

                                                                                

22  for the state tuition grant shall continue to receive the dollar            

                                                                                

23  amount of the state tuition grant for which they were eligible until        

                                                                                

24  they graduate or are no longer enrolled in the Kendall College of Art       

                                                                                

25  and Design at Ferris State University.                                      

                                                                                

26      Sec. 303.  (1) Included in the appropriation in part 1 is funding           

                                                                                

27  for the Michigan work-study program established under 1986 PA 288,          


                                                                                

1   MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to 390.1332.        

                                                                                

2   An effort should be made by each institution participating in the           

                                                                                

3   Michigan work-study program to assure that not less than 10% of those       

                                                                                

4   undergraduate, graduate, and professional students eligible to              

                                                                                

5   participate in the program are placed with for-profit employers no          

                                                                                

6   later than December 31 of each year for which funding is provided           

                                                                                

7   under this act.                                                             

                                                                                

8       (2) The Michigan higher education assistance authority shall                

                                                                                

9   allocate funds to institutions eligible for work-study money based          

                                                                                

10  upon each institution's specific Pell grant index and each                  

                                                                                

11  institution's utilization rate of work-study funds for the 3 most           

                                                                                

12  recent years for which statistics are available.                            

                                                                                

13      (3) The Michigan higher education assistance authority shall set            

                                                                                

14  aside not more than 5% of the total work-study appropriation to             

                                                                                

15  process requests from participating institutions for allocation             

                                                                                

16  adjustments.  Allocation adjustments shall be based on criteria set by      

                                                                                

17  the authority prior to making the allocations under subsection (2).         

                                                                                

18      Sec. 304.  (1) Payments of the amounts included in part 1 for the           

                                                                                

19  general degree reimbursement program established under 1974 PA 75,          

                                                                                

20  MCL 390.1021 to 390.1027, shall be made for all degrees identified in       

                                                                                

21  section 1(1) of 1974 PA 75, MCL 390.1021, except doctor of dental           

                                                                                

22  surgery, doctor of dental medicine, juris doctor law, and allied            

                                                                                

23  health degrees.                                                             

                                                                                

24      (2) The reimbursement rate per eligible degree shall be the                 

                                                                                

25  equally prorated amount permitted by the appropriation, except that         

                                                                                

26  the amount of the reimbursement for each associate degree shall be 1/2      

                                                                                

27  of the rate of reimbursement for the other degrees eligible under           


                                                                                

1   subsection (1) for the general degree reimbursement program.                

                                                                                

2       Sec. 305.  The reimbursement rate per eligible degree under the             

                                                                                

3   allied health degree reimbursement program established under 1974 PA        

                                                                                

4   75, MCL 390.1021 to 390.1027, shall be the equally prorated amount          

                                                                                

5   permitted by the appropriation included in part 1.                          

                                                                                

6       Sec. 306.  Funds disbursed through the degree reimbursement                 

                                                                                

7   program shall not be used by any recipient institution for theology or      

                                                                                

8   divinity programs.                                                          

                                                                                

9       Sec. 307.  The auditor general may audit selected enrollments,              

                                                                                

10  degrees, and awards at selected independent colleges and universities       

                                                                                

11  receiving awards administered by the department of treasury.  The           

                                                                                

12  audits shall be based upon definitions and requirements established by      

                                                                                

13  the Michigan higher education assistance authority, the state budget        

                                                                                

14  director, and the senate and house fiscal agencies.  The auditor            

                                                                                

15  general shall accept the Free Application for Federal Student Aid           

                                                                                

16  (FAFSA) form as the standard of residency documentation.  The auditor       

                                                                                

17  general shall submit a report of findings to the senate and house           

                                                                                

18  appropriations committees and state budget director by May 1, 2004.         

                                                                                

19      Sec. 308.  The sums appropriated in part 1 for the student                  

                                                                                

20  financial aid and degree reimbursement programs shall be paid out of        

                                                                                

21  the state treasury and shall be distributed to the respective               

                                                                                

22  institutions under a quarterly payment system as follows:                   

                                                                                

23      (a) For the state competitive scholarship, nursing scholarship,             

                                                                                

24  tuition incentive, and tuition grant programs, 40% shall be paid at         

                                                                                

25  the beginning of the state's first fiscal quarter, 40% at the               

                                                                                

26  beginning of the state's second fiscal quarter, l0% at the beginning        

                                                                                

27  of the state's third fiscal quarter, and l0% at the beginning of the        


                                                                                

1   state's fourth fiscal quarter.                                              

                                                                                

2       (b) For the work-study program, payments shall be made in 11                

                                                                                

3   monthly installments from October 1 to August 31 of any year.               

                                                                                

4       (c) For the part-time independent student program and the Michigan          

                                                                                

5   education opportunity grant program, 50% shall be paid at the               

                                                                                

6   beginning of the state's first fiscal quarter, 25% at the beginning of      

                                                                                

7   the state's second fiscal quarter, and 25% at the beginning of the          

                                                                                

8   state's third fiscal quarter.                                               

                                                                                

9       (d) For the general degree reimbursement program, allied health             

                                                                                

10  degree reimbursement program, dental clinics grant program, and Robert      

                                                                                

11  C. Byrd honors scholarship program, 50% shall be paid at the beginning      

                                                                                

12  of the state's first fiscal quarter and 50% at the beginning of the         

                                                                                

13  state's second fiscal quarter after the number of earned degrees            

                                                                                

14  conferred and total amounts to be paid are certified.                       

                                                                                

15      Sec. 309.  The Michigan higher education assistance authority               

                                                                                

16  shall determine the needs analysis criteria for students to qualify         

                                                                                

17  for the competitive scholarship program and tuition grant program.  To      

                                                                                

18  be consistent with federal requirements, student wages may be taken         

                                                                                

19  into consideration when determining the amount of the award.                

                                                                                

20      Sec. 310.  (1) The funds appropriated in part 1 for the tuition             

                                                                                

21  incentive program/high school completion program shall be distributed       

                                                                                

22  as provided in this section and pursuant to the administrative              

                                                                                

23  procedures for the tuition incentive program/high school completion         

                                                                                

24  program of the department of treasury.                                      

                                                                                

25      (2) As used in this section:                                                

                                                                                

26      (a) "Phase I" means the first part of the tuition incentive                 

                                                                                

27  assistance program defined as the academic period of 80 semester or         


                                                                                

1   120 term credits, or less, leading to an associate degree or                

                                                                                

2   certificate.                                                                

                                                                                

3       (b) "Phase II" means the second part of the tuition incentive               

                                                                                

4   assistance program which provides assistance in the third and fourth        

                                                                                

5   year of 4-year degree programs.                                             

                                                                                

6       (c) "Department" means the department of treasury.                          

                                                                                

7       (3) A person shall meet the following basic criteria and financial          

                                                                                

8   thresholds to be eligible for tuition incentive benefits:                   

                                                                                

9       (a) To be eligible for phase I, a person shall meet all of the              

                                                                                

10  following criteria:                                                         

                                                                                

11                                                                               (i) Apply for certification to the department before graduating                     

                                                                                

12  from high school or completing the general education development (GED)      

                                                                                

13  certificate.                                                                

                                                                                

14      (ii) Be less than 20 years of age at the time of high school                 

                                                                                

15  graduation or GED completion.                                               

                                                                                

16      (iii) Be a United States citizen and a resident of Michigan                  

                                                                                

17  according to institutional criteria.                                        

                                                                                

18      (iv) Be at least a half-time student, earning less than 80                   

                                                                                

19  semester or 120 term credits at a participating educational                 

                                                                                

20  institution within 4 years of high school graduation or GED                 

                                                                                

21  certificate completion.                                                     

                                                                                

22      (b) To be eligible for phase II, a person shall meet either of the          

                                                                                

23  following criteria in addition to the criteria in subdivision (a):          

                                                                                

24                                                                               (i) Complete at least 56 transferable semester or 84 transferable                   

                                                                                

25  term credits.                                                               

                                                                                

26      (ii) Obtain an associate degree or certificate at a participating            

                                                                                

27  institution.                                                                


                                                                                

1       (c) To be eligible for phase I or phase II, a person must be                

                                                                                

2   financially eligible as determined by the department.  A person is          

                                                                                

3   financially eligible for the tuition incentive program if that person       

                                                                                

4   was Medicaid eligible for 24 months within the 36 months before             

                                                                                

5   application.  Certification of eligibility may begin in the sixth           

                                                                                

6   grade and continue until the time of enrollment in a participating          

                                                                                

7   institution.                                                                

                                                                                

8       (4) For phase I, the department shall provide payment on behalf of          

                                                                                

9   a person eligible under subsection (3).  The department shall reject        

                                                                                

10  billings that are excessive or outside the guidelines for the type of       

                                                                                

11  educational institution.                                                    

                                                                                

12      (5) For phase I, all of the following apply:                                

                                                                                

13      (a) Payments for associate degree or certificate programs shall             

                                                                                

14  not be made for more than 80 semester or 120 term credits for any           

                                                                                

15  individual student at any participating institution.                        

                                                                                

16      (b) For persons enrolled at a Michigan community college, the               

                                                                                

17  department shall pay the current in-district tuition and mandatory          

                                                                                

18  fees.  For persons residing in an area that is not included in any          

                                                                                

19  community college district, the out-of-district tuition rate may be         

                                                                                

20  authorized.                                                                 

                                                                                

21      (c) For persons enrolled at a Michigan public university, the               

                                                                                

22  department shall pay lower level resident tuition and mandatory fees        

                                                                                

23  for the current year.                                                       

                                                                                

24      (d) For persons enrolled at a Michigan independent, nonprofit               

                                                                                

25  degree granting college or university, or a Michigan federal tribally       

                                                                                

26  controlled community college, or Focus:  HOPE, the department shall         

                                                                                

27  pay mandatory fees for the current year and a per-credit payment that       


                                                                                

1   does not exceed the average community college in-district per-credit        

                                                                                

2   tuition rate as reported on August 1, for the immediately preceding         

                                                                                

3   academic year.                                                              

                                                                                

4       (6) A person participating in phase II may be eligible for                  

                                                                                

5   additional funds not to exceed $500.00 per semester or $400.00 per          

                                                                                

6   term up to a maximum of $2,000.00 subject to the following                  

                                                                                

7   conditions:                                                                 

                                                                                

8       (a) Credits are earned in a 4-year program at a Michigan degree             

                                                                                

9   granting 4-year college or university.                                      

                                                                                

10      (b) The tuition reimbursement is for coursework completed within            

                                                                                

11  30 months of completion of the phase I requirements.                        

                                                                                

12      (7) Program payments shall not be used by any recipient for                 

                                                                                

13  theology or divinity courses.                                               

                                                                                

14      (8) The department shall work closely with participating                    

                                                                                

15  institutions to develop an application and eligibility determination        

                                                                                

16  process that will provide the highest level of participation and            

                                                                                

17  ensure that all requirements of the program are met.                        

                                                                                

18      (9) Applications for the tuition incentive program may be approved          

                                                                                

19  at any time after the student begins the sixth grade.  If a                 

                                                                                

20  determination of financial eligibility is made, that determination is       

                                                                                

21  valid as long as the student meets all other program requirements and       

                                                                                

22  conditions.                                                                 

                                                                                

23      (10) Each institution shall ensure that all known available                 

                                                                                

24  restricted grants for tuition and fees are used prior to billing the        

                                                                                

25  tuition incentive program for any portion of a student's tuition and        

                                                                                

26  fees.                                                                       

                                                                                

27      (11) The department shall ensure that the tuition incentive                 


                                                                                

1   program is well publicized and that potentially eligible Medicaid           

                                                                                

2   clients are provided information on the program.  The department shall      

                                                                                

3   provide the necessary funding and staff to fully operate the program.       

                                                                                

4       (12) Any unexpended and unencumbered funds remaining on September           

                                                                                

5   30, 2004 from the amounts appropriated in part 1 for the tuition            

                                                                                

6   incentive program shall not lapse on September 30, 2004, but shall          

                                                                                

7   continue to be available for expenditure for the tuition incentive          

                                                                                

8   program in the fiscal year ending September 30, 2005.                       

                                                                                

9       Sec. 311.  To enable the legislature and the state budget                   

                                                                                

10  director to evaluate the appropriation needs of higher education, each      

                                                                                

11  independent college and university shall make available to the              

                                                                                

12  legislature or state budget director, upon request, data regarding          

                                                                                

13  grants for the preceding, current, and ensuing fiscal years.                

                                                                                

14      Sec. 312.  From the funds appropriated in part 1, the Michigan              

                                                                                

15  higher education assistance authority shall administer the nursing          

                                                                                

16  scholarship program pursuant to 2002 PA 591, MCL 390.1181 to                

                                                                                

17  390.1189.                                                                   

                                                                                

18      Sec. 315.  Included in part 1 is funding for the dental clinics             

                                                                                

19  grant.  This appropriation is for the University of Detroit Mercy to        

                                                                                

20  support dental clinical services provided by its school of dentistry        

                                                                                

21  to low income residents in southeastern Michigan.                           

                                                                                

                                                                                

                                                                                

22  STATE UNIVERSITIES                                                          

                                                                                

23      Sec. 401.  (1) Included in part 1 is $5,720,400.00 to Wayne State           

                                                                                

24  University for the Joseph F. Young, Sr. psychiatric research and            

                                                                                

25  training program.  Wayne State University shall use these funds for         

                                                                                

26  psychiatric laboratory and clinical research, training, and treatment       

                                                                                

27  services.  Within the available appropriation, services shall not be        


                                                                                

1   denied to any patient who meets established research guidelines for         

                                                                                

2   treatment on the basis of personal financial circumstances, age,            

                                                                                

3   geographic residence, or projected/actual length of treatment as            

                                                                                

4   medically warranted.                                                        

                                                                                

5       (2) Wayne State University shall report the following information           

                                                                                

6   to the department of community health by November 1, 2004:                  

                                                                                

7       (a) The number and type of psychiatric research projects funded by          

                                                                                

8   the appropriation described in subsection (1).                              

                                                                                

9       (b) The number and type of students trained and the location of             

                                                                                

10  training funded by the appropriation.                                       

                                                                                

11      (c) Demographic data regarding the number and profile of patients           

                                                                                

12  to receive psychiatric services funded by the appropriation and a           

                                                                                

13  profile of the services provided.                                           

                                                                                

14      (d) A summary budget outlining major expenditure categories and             

                                                                                

15  any first- and third-party reimbursements.                                  

                                                                                

16      (3) Copies of these reports shall also be provided to the house             

                                                                                

17  and senate fiscal agencies and the state budget director.                   

                                                                                

18      Sec. 402.  The University of Michigan biological station at                 

                                                                                

19  Douglas Lake in Cheboygan County is regarded as a unique resource and       

                                                                                

20  is designated as a special research reserve.  It is the intent of the       

                                                                                

21  legislature to protect and preserve the unique long-term research           

                                                                                

22  value and capabilities of the biological station area and Douglas           

                                                                                

23  Lake.  The legislature further intends that no state programs or            

                                                                                

24  policies be developed that would have a deleterious impact on the           

                                                                                

25  research value of Douglas Lake.                                             

                                                                                

26      Sec. 405.  (1) There is created the higher education                        

                                                                                

27  institutional data inventory advisory committee.  The committee shall       


                                                                                

1   be appointed by the state budget director and shall consist of the          

                                                                                

2   following members:                                                          

                                                                                

3       (a) One representative from the house fiscal agency.                        

                                                                                

4       (b) One representative from the senate fiscal agency.                       

                                                                                

5       (c) One representative from the state budget director's office.             

                                                                                

6       (d) Three representatives of the presidents council of state                

                                                                                

7   universities.  The presidents council shall appoint 1 representative        

                                                                                

8   each from a masters, a doctoral, and a research university.                 

                                                                                

9       (2) The committee shall be responsible for maintaining and                  

                                                                                

10  enhancing the state higher education database for which funding is          

                                                                                

11  included in part 1.                                                         

                                                                                

12      Sec. 408.  The legislature recognizes that the first and foremost           

                                                                                

13  obligation of the public universities is undergraduate instruction.         

                                                                                

14  The public universities are therefore encouraged to increase their          

                                                                                

15  commitment of tenured and tenure track faculty to undergraduate             

                                                                                

16  instruction.                                                                

                                                                                

17      Sec. 409.  The amounts appropriated in part 1 for public                    

                                                                                

18  universities establish a per-student funding floor of $4,000.00.  The       

                                                                                

19  concept of maintaining reasonable per-student floor funding shall be        

                                                                                

20  continued into future fiscal years.                                         

                                                                                

21      Sec. 418.  No state funds shall be used by any state university             

                                                                                

22  to undertake a collaborative effort with any other university that          

                                                                                

23  would have the effect of increasing its enrollment of first-time            

                                                                                

24  professional law degree seeking students.                                   

                                                                                

25      Sec. 421.  (1) Central Michigan University shall report by                  

                                                                                

26  September 30, 2004 to the state budget director, house and senate           

                                                                                

27  appropriations committees, and the house and senate fiscal agencies         


                                                                                

1   information on the activities and effectiveness of the national             

                                                                                

2   charter schools institute for which an appropriation is provided in         

                                                                                

3   part 1.  Included in the report shall be an accounting of all revenues      

                                                                                

4   and expenditures of the institute, the names of the public school           

                                                                                

5   academies served, and the type of assistance provided to each public        

                                                                                

6   school academy.                                                             

                                                                                

7       (2) All funds received under part 1 for the national charter                

                                                                                

8   schools institute are intended to be expended on activities of that         

                                                                                

9   institute.                                                                  

                                                                                

10      Sec. 426.  (1) It is the legislative intent that private                    

                                                                                

11  bookstores that sell textbooks to university students and student           

                                                                                

12  governments that provide a book swap for university students have           

                                                                                

13  accurate and timely access to lists of universities' required               

                                                                                

14  textbooks in order to provide prompt and efficient service for              

                                                                                

15  students.  It is further the legislative intent that each state             

                                                                                

16  university allow students who are on financial aid or are receiving         

                                                                                

17  tuition grants to decide where to purchase their textbooks.                 

                                                                                

18      (2) By February 15, 2004, the presidents council state                      

                                                                                

19  universities of Michigan shall research and report to the house and         

                                                                                

20  senate appropriations subcommittees on higher education on the              

                                                                                

21  potential for public universities to provide group purchasing for           

                                                                                

22  textbooks for students at all 15 state universities.                        

                                                                                

23      Sec. 433.  (1) Included in part 1 is $2,953,400.00 for the                  

                                                                                

24  agricultural experiment station and $2,619,000.00 for the cooperative       

                                                                                

25  extension service for project GREEEN.  Project GREEEN is intended to        

                                                                                

26  address critical regulatory, food safety, economic, and environmental       

                                                                                

27  problems faced by this state's plant-based agriculture, forestry, and       


                                                                                

1   processing industries.  "GREEEN" is an acronym for generating research      

                                                                                

2   and extension to meet environmental and economic needs.                     

                                                                                

3       (2) The department of agriculture and Michigan State University,            

                                                                                

4   in consultation with agricultural commodity groups and other                

                                                                                

5   interested parties, shall develop project GREEEN and its program            

                                                                                

6   priorities.                                                                 

                                                                                

7       (3) Not later than September 30, 2004, a report shall be submitted          

                                                                                

8   by Michigan State University to the state budget director, the house        

                                                                                

9   and senate appropriations subcommittees on agriculture and on higher        

                                                                                

10  education, and the house and senate fiscal agencies for the preceding       

                                                                                

11  fiscal year regarding project GREEEN projects.  The report shall            

                                                                                

12  include, but is not limited to, the dollar amount of each project and       

                                                                                

13  a review of each project's performance and accomplishments.                 

                                                                                

14      Sec. 434.  All state universities shall work with the Michigan              

                                                                                

15  economic development corporation (MEDC) to foster the state's economic      

                                                                                

16  development.  The presidents council shall meet quarterly with the          

                                                                                

17  MEDC or its representative to discuss potential cooperative efforts         

                                                                                

18  and examine any strategies or issues of concern related to advancement      

                                                                                

19  of Michigan's economic development.  The state universities, through        

                                                                                

20  its presidents council, shall submit a report that summarizes the           

                                                                                

21  discussion and identifies any conclusions or recommendations of the         

                                                                                

22  participants at each quarterly meeting.  The quarterly report shall be      

                                                                                

23  submitted to the state budget director, the house and senate                

                                                                                

24  appropriations subcommittees on higher education, and the house and         

                                                                                

25  senate fiscal agencies no later than 30 days after each quarterly           

                                                                                

26  meeting.                                                                    

                                                                                

27      Sec. 436.  The appropriations in part 1 for Michigan's 15 public            


                                                                                

1   universities are intended to maintain the access and affordability to       

                                                                                

2   these institutions for students and parents.  As a condition to             

                                                                                

3   receiving the appropriations in part 1, public universities shall           

                                                                                

4   adopt reasonable tuition and fee increases for the 2003-2004 academic       

                                                                                

5   year.                                                                       

                                                                                

6       Sec. 437.  It is the intent of the legislature that funds in a              

                                                                                

7   Michigan public school employee retirement system (MPSERS)                  

                                                                                

8   stabilization subaccount be used for fiscal year 2003-04 to maintain        

                                                                                

9   the annual level percentage of the payroll contribution rate at the         

                                                                                

10  fiscal year 2002-03 estimated rate for the 7 state universities that        

                                                                                

11  have employees in the MPSERS system.                                        

                                                                                

12      Sec. 439.  Any of Michigan's public universities which have a               

                                                                                

13  policy allowing smoking in their dormitories or residence halls shall       

                                                                                

14  report to the legislature, by December 1, 2003, the reason or reasons       

                                                                                

15  for that policy.                                                            

                                                                                

16      Sec. 441.  Included in the appropriation for Western Michigan               

                                                                                

17  University in part 1 is $10,000,000.00 of base funding for the              

                                                                                

18  creation of a life sciences research and commercialization center.          

                                                                                

                                                                                

                                                                                

19  MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS                         

                                                                                

20  PROGRAMS                                                                   

                                                                                

21      Sec. 501.  (1) Included in the appropriation for each public                

                                                                                

22  university in part 1 is funding for the Martin Luther King, Jr. -           

                                                                                

23  Cesar Chavez - Rosa Parks future faculty program, that is intended to       

                                                                                

24  increase the pool of minority candidates pursuing faculty teaching          

                                                                                

25  careers in postsecondary education.  Each university shall apply the        

                                                                                

26  percentage increase applicable to every university in the calculation       


                                                                                

1   of appropriations in part 1 to the amount of funds allocated to the         

                                                                                

2   future faculty program.                                                     

                                                                                

3       (2) The program shall be administered by each university in a               

                                                                                

4   manner prescribed by the Michigan department of career development.         

                                                                                

5   The Michigan department of career development shall use a good faith        

                                                                                

6   effort standard to evaluate whether a fellowship is in default.             

                                                                                

7       Sec. 502.  (1) Included in the appropriation for each public                

                                                                                

8   university in part 1 is funding for the Martin Luther King, Jr. -           

                                                                                

9   Cesar Chavez - Rosa Parks college day program that is intended to           

                                                                                

10  introduce schoolchildren underrepresented in postsecondary education        

                                                                                

11  to the potential of a college education.                                    

                                                                                

12      (2) Individual program plans of each university shall include a             

                                                                                

13  budget of equal contributions from this program, the participating          

                                                                                

14  public university, the participating school district, and the               

                                                                                

15  participating independent degree granting college.  College day funds       

                                                                                

16  shall not be expended to cover indirect costs.  Not more than 20% of        

                                                                                

17  the university match shall be attributable to indirect costs.  Each         

                                                                                

18  university shall apply the percentage increase applicable to every          

                                                                                

19  university in the calculation of appropriations in part 1 to the            

                                                                                

20  amount of funds allocated to the college day program.                       

                                                                                

21      (3) The program shall be administered by each university in a               

                                                                                

22  manner prescribed by the Michigan department of career development.         

                                                                                

23      Sec. 503.  (1) Included in part 1 is funding for the Martin                 

                                                                                

24  Luther King, Jr. - Cesar Chavez - Rosa Parks select student support         

                                                                                

25  services program for developing academically and economically               

                                                                                

26  disadvantaged student retention programs for 4-year public and              

                                                                                

27  independent educational institutions in this state.                         


                                                                                

1       (2) An award made under this program to any 1 institution shall             

                                                                                

2   not be greater than $150,000.00, and the amount awarded shall be            

                                                                                

3   matched on a 70% state, 30% college or university basis.                    

                                                                                

4       (3) The program shall be administered by the Michigan department            

                                                                                

5   of career development.                                                      

                                                                                

6       Sec. 504.  (1) Included in part 1 is funding for the Martin                 

                                                                                

7   Luther King, Jr. - Cesar Chavez - Rosa Parks college/university             

                                                                                

8   partnership program between 4-year public and independent colleges and      

                                                                                

9   universities and public community colleges, which is intended to            

                                                                                

10  increase the number of academically and economically disadvantaged          

                                                                                

11  students who transfer from community colleges into baccalaureate            

                                                                                

12  programs.                                                                   

                                                                                

13      (2) The grants shall be made under this program to Michigan public          

                                                                                

14  and independent colleges and universities.  An award to any 1               

                                                                                

15  institution shall not be greater than $150,000.00, and the amount           

                                                                                

16  awarded shall be matched on a 70% state, 30% college or university          

                                                                                

17  basis.                                                                      

                                                                                

18      (3) The program shall be administered by the Michigan department            

                                                                                

19  of career development.                                                      

                                                                                

20      Sec. 505.  (1) Included in the appropriation for each public                

                                                                                

21  university in part 1 is funding for the Martin Luther King, Jr. -           

                                                                                

22  Cesar Chavez - Rosa Parks visiting professors program which is              

                                                                                

23  intended to increase the number of underrepresented minority                

                                                                                

24  instructors in the classroom and provide role models for                    

                                                                                

25  underrepresented minority students.                                         

                                                                                

26      (2) The program shall be administered by the Michigan department            

                                                                                

27  of career development.                                                      


                                                                                

1       Sec. 506.  (1) Included in the appropriation in part 1 is funding           

                                                                                

2   under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks               

                                                                                

3   initiative for the Morris Hood, Jr. educator development program which      

                                                                                

4   is intended to increase the number of minority students, especially         

                                                                                

5   males, who enroll in and complete K-12 teacher education programs at        

                                                                                

6   the baccalaureate level.                                                    

                                                                                

7       (2) The program shall be administered by each state-approved                

                                                                                

8   teacher education institution in a manner prescribed by the Michigan        

                                                                                

9   department of career development.                                           

                                                                                

10      (3) Approved teacher education institutions may and are encouraged          

                                                                                

11  to use student support services funding in coordination with the            

                                                                                

12  Morris Hood, Jr. funding to achieve the goals of the program.               

                                                                                

13      Sec. 507.  Each state institution of higher education receiving             

                                                                                

14  funds under section 503, 504, or 506 shall notify the Michigan              

                                                                                

15  department of career development by April 15, 2004 as to whether it         

                                                                                

16  will expend by the end of its fiscal year the funds received under          

                                                                                

17  section 503, 504, or 506.  Notwithstanding the award limitations in         

                                                                                

18  sections 503 and 504, the amount of funding reported as not being           

                                                                                

19  expended will be reallocated to the institutions that intend to expend      

                                                                                

20  all funding received under section 503, 504, or 506.                        

                                                                                

                                                                                

                                                                                

21  STUDENT PERFORMANCE REPORTING                                               

                                                                                

22      Sec. 601.  (1) From the amount appropriated in part 1 for state             

                                                                                

23  universities, the state universities shall systematically inform            

                                                                                

24  Michigan high schools regarding the academic status of students from        

                                                                                

25  each high school in a manner prescribed by the presidents council,          

                                                                                

26  state universities of Michigan in cooperation with the Michigan             


                                                                                

1   association of secondary school principals.                                 

                                                                                

2       (2) The Michigan high schools shall systematically inform the               

                                                                                

3   state universities about the use of information received under this         

                                                                                

4   section in a manner prescribed by the Michigan association of               

                                                                                

5   secondary school principals in cooperation with the presidents              

                                                                                

6   council, state universities of Michigan.                                    

                                                                                

7       Sec. 602.  From the amount appropriated in part 1 for state                 

                                                                                

8   universities, the state universities shall inform Michigan community        

                                                                                

9   colleges regarding the academic status of community college transfer        

                                                                                

10  students in a manner prescribed by the presidents council, state            

                                                                                

11  universities of Michigan in cooperation with the Michigan community         

                                                                                

12  college association.                                                        

                                                                                

                                                                                

                                                                                

13  GENERAL REPORTS AND AUDITS                                                  

                                                                                

14      Sec. 701.  (1) The auditor general shall review higher education            

                                                                                

15  institutional data inventory (HEIDI) enrollment data submitted by all       

                                                                                

16  public universities and may perform audits of selected public               

                                                                                

17  universities if determined necessary.  The review and audits shall be       

                                                                                

18  based upon the definitions, requirements, and uniform reporting             

                                                                                

19  categories established by the state budget director and the senate and      

                                                                                

20  house fiscal agencies.  The auditor general shall submit a report of        

                                                                                

21  findings to the house and senate appropriations committees and the          

                                                                                

22  state budget director no later than July 1, 2004.                           

                                                                                

23      (2) Student credit hours reports shall not include the following:           

                                                                                

24      (a) Student credit hours generated through correspondence courses,          

                                                                                

25  credit by examination, or inmate prison programs regardless of              

                                                                                

26  teaching location.                                                          


                                                                                

1       (b) Student credit hours generated in new degree programs after             

                                                                                

2   January 1, 1975, that have not been specifically authorized for             

                                                                                

3   funding by the legislature, except spin-off programs converted from         

                                                                                

4   existing core programs that do all of the following:                        

                                                                                

5                                                                                (i) Represent new options, fields, or concentrations within                         

                                                                                

6   existing programs.                                                          

                                                                                

7       (ii) Are consistent with the current institutional role and                  

                                                                                

8   mission.                                                                    

                                                                                

9       (iii) Are accommodated within the continuing funding base of the             

                                                                                

10  institution.                                                                

                                                                                

11      (iv) Do not require a new degree level beyond that which the                 

                                                                                

12  institution is currently authorized to grant within that discipline or      

                                                                                

13  field.                                                                      

                                                                                

14      (v) Do not require funding from the state other than that provided          

                                                                                

15  by the student credit hours generated within the program, either            

                                                                                

16  before program initiation or within the first 3 years of program            

                                                                                

17  operation.                                                                  

                                                                                

18      (3) The auditor general shall periodically audit higher education           

                                                                                

19  institutional data inventory (HEIDI) data as submitted by the state         

                                                                                

20  universities for compliance with the definitions approved by the HEIDI      

                                                                                

21  advisory committee for the HEIDI database.                                  

                                                                                

22      Sec. 701a.  (1) Pursuant to section 701(2)(b), the following                

                                                                                

23  degree programs may be established:                                         

                                                                                

24      (a) Bachelors:                                                              

                                                                                

25       Ferris State University             Art education, B.F.A.              

                                                                                

26       Ferris State University             Biochemistry major, B.A.           

                                                                                

27       Ferris State University             Chemistry major, B.A.              


                                                                                

1        Ferris State University             Metals/jewelry design,             

                                                                                

2                                              B.F.A.                           

                                                                                

3        Grand Valley State University       Cell and molecular biology,        

                                                                                

4                                              B.S.                             

                                                                                

5        Grand Valley State University       Clinical laboratory science,       

                                                                                

6                                              B.S.                             

                                                                                

7        Grand Valley State University       Dance, B.A.                        

                                                                                

8        Grand Valley State University       Medical imaging/radiation          

                                                                                

9                                              science, B.S.                    

                                                                                

10       Lake Superior State University      Athletic training, B.S.            

                                                                                

11       Michigan State University           Professional writing, B.A.         

                                                                                

12       Michigan Technological University   Computer network and system        

                                                                                

13                                             administration, B.S.             

                                                                                

14       Michigan Technological University   Computer systems science,          

                                                                                

15                                             B.S.                             

                                                                                

16       Northern Michigan University        Earth science, Bachelors           

                                                                                

17       Northern Michigan University        Entertainment and sports           

                                                                                

18                                             promotion, Bachelors             

                                                                                

19       Northern Michigan University        Geographic information             

                                                                                

20                                             science, Bachelors               

                                                                                

21       Oakland University                  Financial information              

                                                                                

22                                             systems, B.S.                    

                                                                                

23       Oakland University                  Wellness, health promotion,        

                                                                                

24                                             and injury prevention,           

                                                                                

25                                             B.S.                             

                                                                                

26       Wayne State University              Major in health education,         

                                                                                

27                                             B.S.                             


                                                                                

1        Western Michigan University         Athletic training, B.A.            

                                                                                

2        Western Michigan University         Engineering, B.S.E.                

                                                                                

3        Western Michigan University         Major in financial planning,       

                                                                                

4                                              B.B.A.                           

                                                                                

5        Western Michigan University         Major in geochemistry, B.S.        

                                                                                

6        Western Michigan University         Major in global and                

                                                                                

7                                              international studies,           

                                                                                

8                                              B.A.                             

                                                                                

9       (b) Masters:                                                                

                                                                                

10       Central Michigan University         Reading and literacy K-12,         

                                                                                

11                                             M.A.                             

                                                                                

12       Eastern Michigan University         Schools, society, and              

                                                                                

13                                             violence, M.A.                   

                                                                                

14       Ferris State University             Masters in business                

                                                                                

15                                             administration, M.B.A.           

                                                                                

16       Grand Valley State University       Biology, M.S.                      

                                                                                

17       Grand Valley State University       M.A. program in English,           

                                                                                

18                                             M.A.                             

                                                                                

19       Grand Valley State University       Psychology, M.S.                   

                                                                                

20       Michigan State University           Digital rhetoric and               

                                                                                

21                                             professional writing, M.A.       

                                                                                

22       Michigan State University           Environmental design, M.A.         

                                                                                

23       Michigan State University           Finance, M.S.                      

                                                                                

24       Michigan State University           Food safety, M.S.                  

                                                                                

25       Michigan State University           Youth development, M.A.            

                                                                                

26       Saginaw Valley State University     Instructional technology,          

                                                                                

27                                             M.A.                             


                                                                                

1        University of Michigan              Health and health care             

                                                                                

2                                              research, M.S.                   

                                                                                

3        University of Michigan              International tax, L.L.M.          

                                                                                

4        University of Michigan              Media arts, M.A.                   

                                                                                

5        University of Michigan-Dearborn     Psychology specialization in       

                                                                                

6                                              health psychology, M.S.          

                                                                                

7        University of Michigan-Dearborn     Science education, M.S.            

                                                                                

8        Wayne State University              Accounting, M.S.                   

                                                                                

9        Wayne State University              Master of occupational             

                                                                                

10                                             therapy, M.O.T.                  

                                                                                

11      (c) Doctorate:                                                              

                                                                                

12       Michigan State University           Rhetoric and writing, Ph.D.        

                                                                                

13       Oakland University                  Ph.D. program in mechanical        

                                                                                

14                                             engineering, Ph.D.               

                                                                                

15       University of Michigan              Joint doctoral program on          

                                                                                

16                                             women's studies and              

                                                                                

17                                             sociology                        

                                                                                

18       Western Michigan University         Evaluation, Ph.D.                  

                                                                                

19       Western Michigan University         Spanish, Ph.D.                     

                                                                                

20      (2) The listing of degree programs in subsection (1) does not               

                                                                                

21  constitute legislative intent to provide additional dollars for those       

                                                                                

22  programs.                                                                   

                                                                                

23      Sec. 702.  The principal executive officer of each institution of           

                                                                                

24  higher education receiving an appropriation under this act shall            

                                                                                

25  expend a portion of the funds appropriated to that institution to make      

                                                                                

26  a report to the auditor general, the house and senate fiscal agencies,      

                                                                                

27  and the state budget director within 60 days after the auditor general      


                                                                                

1   issues his or her report on the operation of the institution.  The          

                                                                                

2   institution's report shall specify all of the following:                    

                                                                                

3       (a) The recommendations of the auditor general implemented by the           

                                                                                

4   institution, including projected dates and resources required, if any,      

                                                                                

5   to achieve compliance.                                                      

                                                                                

6       (b) The recommendations of the auditor general not implemented by           

                                                                                

7   the institution or implemented by the institution as modified.              

                                                                                

8       (c) The rationale for not implementing a recommendation of the              

                                                                                

9   auditor general or of implementing a recommendation as modified.            

                                                                                

10      Sec. 708.  The auditor general shall conduct performance audits             

                                                                                

11  of state universities during the fiscal year ending September 30, 2004      

                                                                                

12  as the auditor general considers necessary.                                 

                                                                                

13      Sec. 709.  An institution receiving funds under this bill and               

                                                                                

14  also subject to the student right-to-know and campus security act,          

                                                                                

15  Public Law 101-522, 104 Stat. 2381, shall make a copy of all material       

                                                                                

16  prepared pursuant to the public information reporting requirements          

                                                                                

17  under the crime awareness and campus security act of 1990, title II of      

                                                                                

18  the student right-to-know and campus security act, Public Law 101-542,      

                                                                                

19  104 Stat. 2381 available in electronic Internet format on their             

                                                                                

20  websites.                                                                   

                                                                                

21      Sec. 710.  By February 15, 2004, each public university that                

                                                                                

22  receives funds under this act shall report to the house and senate          

                                                                                

23  appropriations subcommittees on higher education and the house and          

                                                                                

24  senate fiscal agencies the aggregate dollar amount and the number and       

                                                                                

25  percentages of undergraduate students who receive need-based grants,        

                                                                                

26  merit-based scholarships and grants, loans, and work-study financial        

                                                                                

27  aid for the academic year 2002-2003.                                        


                                                                                

                                                                                

                                                                                

1                                   PART 2A                                     

                                                                                

2       PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2002-2003          

                                                                                

3       Sec. 1101.  The appropriations in 2002 PA 746 for fiscal year               

                                                                                

4   2002-2003, sections 153 and 157, financed from the Michigan merit           

                                                                                

5   award trust fund, shall be appropriated from the tobacco settlement         

                                                                                

6   trust fund instead of the Michigan merit award trust fund.  An amount       

                                                                                

7   of $1,595,982.00 for community colleges and $9,060,952.00 for higher        

                                                                                

8   education shall be appropriated from the tobacco settlement trust fund      

                                                                                

9   instead of the Michigan merit award trust fund.                             

                                                                                

10      Sec. 1102.  It is the intent of the legislature that Michigan               

                                                                                

11  competitive scholarship award applicants and Michigan tuition grant         

                                                                                

12  applicants be notified not later than July 1, 2003 of the status of         

                                                                                

13  their awards.