SB-1062, As Passed House, June 9, 2004                                      

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                               HOUSE SUBSTITUTE FOR                             

                                                                                

                               SENATE BILL NO. 1062                             

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for community colleges and certain                  

                                                                                

    state purposes related to education for the fiscal year ending              

                                                                                

    September 30, 2004 and for the fiscal year ending September 30, 2005;       

                                                                                

    to provide for the expenditure of those appropriations; to establish        

                                                                                

    or continue certain funds, programs, and categories; prescribe the          

                                                                                

    powers and duties of certain state departments, institutions,               

                                                                                

    agencies, employees, and officers; and to repeal acts and parts of          

                                                                                

    acts.                                                                       

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2             LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2004-2005                

                                                                                

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

                                                                                

4   amounts listed in this part are appropriated for community colleges         

                                                                                

5   and certain other state purposes relating to education for the fiscal       

                                                                                

6   year ending September 30, 2005, from the funds indicated in this            

                                                                                


                                                                                

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

                                                                                

2   COMMUNITY COLLEGES                                                          

                                                                                

3   APPROPRIATION SUMMARY:                                                      

                                                                                

4     GROSS APPROPRIATION................................. $     285,752,800    

                                                                                

5       Interdepartmental grant revenues:                                       

                                                                                

6     Total interdepartmental grants and intradepartmental                      

                                                                                

7       transfers.........................................                 0    

                                                                                

8     ADJUSTED GROSS APPROPRIATION........................ $     285,752,800    

                                                                                

9     Total federal revenues..............................                 0    

                                                                                

10    Total local revenues................................                 0    

                                                                                

11    Total private revenues..............................                 0    

                                                                                

12    Total other state restricted revenues...............                 0    

                                                                                

13    State general fund/general purpose.................. $     285,752,800    

                                                                                

14      Sec. 102.  OPERATIONS                                                       

                                                                                

15    Alpena Community College............................ $       4,566,800    

                                                                                

16    Bay de Noc Community College........................         4,415,200    

                                                                                

17    Delta College.......................................        12,348,200    

                                                                                

18    Glen Oaks Community College.........................         2,071,800    

                                                                                

19    Gogebic Community College...........................         3,777,500    

                                                                                

20    Grand Rapids Community College......................        15,531,900    

                                                                                

21    Henry Ford Community College........................        18,928,700    

                                                                                

22    Jackson Community College...........................        10,478,100    

                                                                                

23    Kalamazoo Valley Community College..................        10,691,100    

                                                                                

24    Kellogg Community College...........................         8,399,700    

                                                                                

25    Kirtland Community College..........................         2,549,400    

                                                                                

26    Lake Michigan College...............................         4,520,800    

                                                                                

27    Lansing Community College...........................        26,859,600    


                                                                                

1     Macomb Community College............................        28,658,400    

                                                                                

2     Mid Michigan Community College......................         3,823,100    

                                                                                

3     Monroe County Community College.....................         3,719,500    

                                                                                

4     Montcalm Community College..........................         2,690,500    

                                                                                

5     C.S. Mott Community College.........................        13,579,700    

                                                                                

6     Muskegon Community College..........................         7,728,000    

                                                                                

7     North Central Michigan College......................         2,617,600    

                                                                                

8     Northwestern Michigan College.......................         7,885,700    

                                                                                

9     Oakland Community College...........................        18,078,000    

                                                                                

10    St. Clair County Community College..................         6,055,500    

                                                                                

11    Schoolcraft College.................................        10,610,100    

                                                                                

12    Southwestern Michigan College.......................         5,695,600    

                                                                                

13    Washtenaw Community College.........................        10,783,800    

                                                                                

14    Wayne County Community College......................        13,940,100    

                                                                                

15    West Shore Community College........................         1,985,900    

                                                                                

16    GROSS APPROPRIATION................................. $     262,990,300    

                                                                                

17        Appropriated from:                                                    

                                                                                

18    State general fund/general purpose.................. $     262,990,300    

                                                                                

19      Sec. 103.  TUITION RESTRAINT INCENTIVE                                      

                                                                                

20    Alpena Community College............................ $         295,900    

                                                                                

21    Bay de Noc Community College........................           286,100    

                                                                                

22    Delta College.......................................           800,100    

                                                                                

23    Glen Oaks Community College.........................           134,300    

                                                                                

24    Gogebic Community College...........................           244,900    

                                                                                

25    Grand Rapids Community College......................         1,006,300    

                                                                                

26    Henry Ford Community College........................         1,226,300    

                                                                                

27    Jackson Community College...........................           678,900    


                                                                                

1     Kalamazoo Valley Community College..................           692,700    

                                                                                

2     Kellogg Community College...........................           544,300    

                                                                                

3     Kirtland Community College..........................           165,300    

                                                                                

4     Lake Michigan College...............................           292,900    

                                                                                

5     Lansing Community College...........................         1,740,100    

                                                                                

6     Macomb Community College............................         1,856,500    

                                                                                

7     Mid Michigan Community College......................           247,700    

                                                                                

8     Monroe County Community College.....................           241,100    

                                                                                

9     Montcalm Community College..........................           174,300    

                                                                                

10    C.S. Mott Community College.........................           879,900    

                                                                                

11    Muskegon Community College..........................           500,700    

                                                                                

12    North Central Michigan College......................           169,700    

                                                                                

13    Northwestern Michigan College.......................           510,900    

                                                                                

14    Oakland Community College...........................         1,171,300    

                                                                                

15    St. Clair County Community College..................           392,300    

                                                                                

16    Schoolcraft College.................................           687,500    

                                                                                

17    Southwestern Michigan College.......................           369,100    

                                                                                

18    Washtenaw Community College.........................           698,700    

                                                                                

19    Wayne County Community College......................           903,100    

                                                                                

20    West Shore Community College........................           128,700    

                                                                                

21    GROSS APPROPRIATION................................. $      17,039,600    

                                                                                

22        Appropriated from:                                                    

                                                                                

23    State general fund/general purpose.................. $      17,039,600    

                                                                                

24      Sec. 104.  GRANTS                                                           

                                                                                

25    At-risk student success program..................... $       3,322,800    

                                                                                

26    Renaissance zone tax reimbursement funding..........         2,400,100    

                                                                                

27    GROSS APPROPRIATION................................. $       5,722,900    


                                                                                

1         Appropriated from:                                                    

                                                                                

2     State general fund/general purpose.................. $       5,722,900    

                                                                                

                                                                                

                                                                                

3                                     PART 2                                    

                                                                                

4         PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2004-2005        

                                                                                

5   GENERAL SECTIONS                                                            

                                                                                

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

                                                                                

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

                                                                                

8   part 1 for fiscal year 2004-2005 is $285,752,800.00 and state spending      

                                                                                

9   from state resources to be paid to local units of government for            

                                                                                

10  fiscal year 2004-2005 is $285,752,800.00.  The itemized statement           

                                                                                

11  below identifies appropriations from which spending to local units of       

                                                                                

12  government will occur:                                                      

                                                                                

13    Operations.......................................... $     280,029,900    

                                                                                

14    At-risk student success program.....................         3,322,800    

                                                                                

15    Renaissance zone tax reimbursement program..........         2,400,100    

                                                                                

16    TOTAL............................................... $     285,752,800    

                                                                                

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

                                                                                

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

                                                                                

19  18.1594.                                                                    

                                                                                

20      Sec. 203.  Unless otherwise specified, a community college                  

                                                                                

21  receiving appropriations in part 1 and the department of labor and          

                                                                                

22  economic growth shall use the Internet to fulfill the reporting             

                                                                                

23  requirements of this act.  This requirement may include transmission        

                                                                                

24  of reports via electronic mail to the recipients identified for each        

                                                                                

25  reporting requirement or it may include placement of reports on an          

                                                                                

26  Internet or Intranet site.                                                  

                                                                                

27      Sec.  207.  (1) The amount appropriated in section 103 for                  


                                                                                

1   community college tuition restraint shall only be paid to a community       

                                                                                

2   college that certified to the state budget director by June 30, 2004        

                                                                                

3   that it did not adopt an increase in in-district tuition and fees           

                                                                                

4   after December 1, 2003 for the 2003-2004 academic year and that it          

                                                                                

5   will not adopt in-district tuition and fee increases for the 2004-2005      

                                                                                

6   academic year that exceed 3.0%.                                             

                                                                                

7       (2) For the purposes of subsection (1), a community college that            

                                                                                

8   adopted an increase in in-district tuition and fees after December 1,       

                                                                                

9   2003 for the 2003-2004 academic year, but subsequently rebated to its       

                                                                                

10  students an amount equal to this increase prior to June 30, 2004 is         

                                                                                

11  considered to have not adopted an in-district tuition and fee increase      

                                                                                

12  for the 2003-2004 academic year.                                            

                                                                                

13      (3) The state budget director shall implement a reporting                   

                                                                                

14  requirement based on definitions and uniform reporting requirements         

                                                                                

15  established by the state budget director and the house and senate           

                                                                                

16  fiscal agencies, to ensure that a community college receiving an            

                                                                                

17  appropriation under section 103 has satisfied the tuition restraint         

                                                                                

18  requirements of this section.                                               

                                                                                

19      (4) If a community college complies with the tuition restraint              

                                                                                

20  requirements described in this section, its state appropriation will        

                                                                                

21  not be reduced by executive order or any other manner during the            

                                                                                

22  2004-2005 fiscal year.                                                      

                                                                                

23      Sec.  208.  The department of labor and economic growth shall               

                                                                                

24  work collaboratively with community colleges to develop an accelerated      

                                                                                

25  entrepreneurship curriculum, including an associate degree, to provide      

                                                                                

26  students with the skills and knowledge needed for creating their own        

                                                                                

27  businesses.                                                                 


                                                                                

1       Sec. 209.  (1) Funds appropriated in part 1 shall not be used for           

                                                                                

2   the purchase of foreign goods or services, or both, if competitively        

                                                                                

3   priced and comparable quality American goods or services, or both, are      

                                                                                

4   available.                                                                  

                                                                                

5       (2) Funds appropriated in part 1 shall not be used for the                  

                                                                                

6   purchase of out-of-state goods or services, or both, if competitively       

                                                                                

7   priced and comparable quality Michigan goods or services, or both, are      

                                                                                

8   available.                                                                  

                                                                                

9       Sec. 210.  The principal executive officer of each community                

                                                                                

10  college receiving appropriations in part 1 shall take all reasonable        

                                                                                

11  steps to ensure businesses in deprived and depressed communities            

                                                                                

12  compete for and perform contracts to provide services or supplies, or       

                                                                                

13  both.  Each principal executive officer shall strongly encourage firms      

                                                                                

14  with which the community college contracts to subcontract with              

                                                                                

15  certified businesses in depressed and deprived communities for              

                                                                                

16  services or supplies, or both.                                              

                                                                                

17      Sec. 211.  (1) The money appropriated in this act is appropriated           

                                                                                

18  for community colleges with fiscal years ending June 30, 2005, and          

                                                                                

19  shall be paid out of the state treasury and distributed by the state        

                                                                                

20  treasurer to the respective community colleges in 11 monthly                

                                                                                

21  installments on the sixteenth of each month, or the next succeeding         

                                                                                

22  business day, beginning with October 16, 2004.  Each community college      

                                                                                

23  shall accrue its July and August 2005 payments to its institutional         

                                                                                

24  fiscal year ending June 30, 2005.  However, if a community college          

                                                                                

25  fails to submit all verified Michigan community colleges activities         

                                                                                

26  classification structure data for school year 2003-2004 to the              

                                                                                

27  department of labor and economic growth by November 1, 2004, the            


                                                                                

1   monthly installments shall be withheld from that community college          

                                                                                

2   until those data are submitted.  The amount from the money                  

                                                                                

3   appropriated in part 1 that is allocated to address the special needs       

                                                                                

4   of at-risk students shall be paid in full by the state treasurer by         

                                                                                

5   November 1, 2004.  The amount distributed to a community college or         

                                                                                

6   department shall not exceed the net state allocation authorized by          

                                                                                

7   this act.                                                                   

                                                                                

8       (2) Except as otherwise provided by law, each of the amounts                

                                                                                

9   appropriated shall be used solely for the respective purposes stated        

                                                                                

10  in this act.  The money appropriated by this act may be used to match       

                                                                                

11  the cost of any available programs under the Carl D. Perkins                

                                                                                

12  vocational and applied technology education act, 20 USC 2301 to 2415,       

                                                                                

13  including local administration.                                             

                                                                                

14      Sec. 216.  (1) A community college shall pay the employer's                 

                                                                                

15  contributions to the Michigan public school employees' retirement           

                                                                                

16  system created by the public school employees retirement act of 1979,       

                                                                                

17  1980 PA 300, MCL 38.1301 to 38.1408, as a condition of receiving money      

                                                                                

18  appropriated under this act.                                                

                                                                                

19      (2) A community college shall not pay an employer's contribution            

                                                                                

20  to more than 1 retirement fund providing benefits for an employee.          

                                                                                

21      (3) A community college shall not be required to submit more than           

                                                                                

22  4 reports annually to the Michigan public school employees' retirement      

                                                                                

23  system for purposes of calculating retirement benefits.                     

                                                                                

24      Sec. 217.  Money appropriated in part 1 shall not be used to pay            

                                                                                

25  for the construction or maintenance of a self-liquidating project.          

                                                                                

26  Any construction, renovation, or other capital outlay project that          

                                                                                

27  exceeds $1,000,000.00 requires the approval of a use and finance            


                                                                                

1   statement by the joint capital outlay subcommittee (JCOS) pursuant to       

                                                                                

2   JCOS policy.                                                                

                                                                                

3       Sec. 220.  It is the intent of the legislature that the                     

                                                                                

4   legislature, in cooperation with the Michigan community college             

                                                                                

5   association, develop proposals and financing alternatives for special       

                                                                                

6   maintenance projects at community colleges that otherwise would not         

                                                                                

7   qualify for financing under the state building authority.                   

                                                                                

8       Sec. 224.  Recognizing the critical importance of education in              

                                                                                

9   strengthening Michigan's workforce, the legislature encourages the          

                                                                                

10  state's public community colleges to explore ways of increasing             

                                                                                

11  collaboration and cooperation with 4-year universities, particularly        

                                                                                

12  in the areas related to training, instruction, and program                  

                                                                                

13  articulation.                                                               

                                                                                

14      Sec. 230.  (1) A community college shall not expend money                   

                                                                                

15  appropriated under this act to provide health care coverage for             

                                                                                

16  community college employees or their dependents for abortion services,      

                                                                                

17  other than for spontaneous abortion or to prevent the death of the          

                                                                                

18  woman upon whom the abortion is performed.  A community college shall       

                                                                                

19  not approve a collective bargaining agreement or enter into any other       

                                                                                

20  employment contract that includes health care coverage for abortion         

                                                                                

21  services other than spontaneous abortion or to prevent the death of         

                                                                                

22  the woman upon whom the abortion is performed.                              

                                                                                

23      (2) If a community college expends money appropriated under this            

                                                                                

24  act in violation of subsection (1), the community college shall repay       

                                                                                

25  to this state an amount equal to the amount of money spent in               

                                                                                

26  violation of subsection (1).                                                

                                                                                

27      Sec. 231.  In light of sections 1, 3, and 4 of 1846 RS 83,                  


                                                                                

1   MCL 551.1, 551.3, and 551.4, and section 1 of 1939 PA 168,                  

                                                                                

2   MCL 551.271, the legislature intends that a community college               

                                                                                

3   receiving funding under this act shall not use part 1 money to extend       

                                                                                

4   employee benefits to the unmarried partners of the community college's      

                                                                                

5   employees except for pre- and post-natal costs.                             

                                                                                

6       Sec. 234.  The legislature intends that each community college do           

                                                                                

7   all of the following:                                                       

                                                                                

8       (a) Undertake active measures to promote equal opportunities,               

                                                                                

9   eliminate discrimination, and foster a diverse student body and             

                                                                                

10  administration among all people including, but not limited to, women,       

                                                                                

11  minorities, seniors, veterans, and people with disabilities.                

                                                                                

12      (b) Review, analyze, and eradicate activities that may tend to              

                                                                                

13  discriminate.                                                               

                                                                                

14      Sec. 235.  It is the intent of the legislature that a workgroup             

                                                                                

15  be formed to evaluate, discuss, and make recommendations for future         

                                                                                

16  action regarding state university admission and enrollment policies         

                                                                                

17  that specifically address the acceptance and application of college         

                                                                                

18  credits earned by students through the postsecondary enrollment             

                                                                                

19  options act, 1996 PA 160, MCL 388.511 to 388.524.  The Michigan             

                                                                                

20  community college association may create and administer the workgroup       

                                                                                

21  and is encouraged to include members representing university and K-12       

                                                                                

22  school organizations.                                                       

                                                                                

23      Sec. 236.  (1) It is the intent of the legislature that any                 

                                                                                

24  existing or new reciprocal tuition agreements entered into under 1972       

                                                                                

25  PA 251, MCL 390.501 to 390.506, be submitted for review and approval        

                                                                                

26  by the house and senate appropriations committees at least once every       

                                                                                

27  3 years.                                                                    


                                                                                

1       (2) It is the intent of the legislature that, under any reciprocal          

                                                                                

2   tuition agreement approved by the house and senate appropriations           

                                                                                

3   committees, out-of-state students pay the in-state, out-of-district         

                                                                                

4   tuition and fee rate at any Michigan community college participating        

                                                                                

5   in the agreement.                                                           

                                                                                

6       Sec. 237.  It is the intent of the legislature that a workgroup             

                                                                                

7   that includes members of the legislature and the Michigan community         

                                                                                

8   colleges association be formed to evaluate, discuss, and make               

                                                                                

9   recommendations regarding the possibility of state payments in lieu of      

                                                                                

10  taxes to community colleges whose districts contain state-owned land.       

                                                                                

11      Sec. 238.  It is the intent of the legislature that a workgroup             

                                                                                

12  that includes members of the legislature and the Michigan community         

                                                                                

13  colleges association be formed to evaluate, discuss, and make               

                                                                                

14  recommendations regarding the impact of expanding eligibility for the       

                                                                                

15  optional retirement plan established in section 3 of the optional           

                                                                                

16  retirement act of 1967, 1967 PA 156, MCL 38.383, to include faculty         

                                                                                

17  employed by community colleges on a part-time basis.                        

                                                                                

18      Sec. 239.  The legislature intends that any executive or                    

                                                                                

19  legislative proposal or action, subsequent to the adoption of a             

                                                                                

20  recommendation for appropriations for community colleges for the            

                                                                                

21  fiscal year ending September 30, 2005, to increase appropriations to        

                                                                                

22  state-supported 4-year universities in excess of the governor's             

                                                                                

23  original recommendation for the fiscal year ending September 30, 2005,      

                                                                                

24  will be accompanied by a similar action or proposal for                     

                                                                                

25  state-supported community colleges.                                         

                                                                                

26      Sec. 240.  The legislature intends that not less than 70% of the            

                                                                                

27  economic development job training grant money be awarded to community       


                                                                                

1   colleges or a consortium of community colleges and other eligible           

                                                                                

2   applicants as provided in the budget that appropriated the economic         

                                                                                

3   development job training grant money.  Further, the legislature             

                                                                                

4   intends that at least a portion of the total appropriation for              

                                                                                

5   economic development job training grants be awarded to community            

                                                                                

6   colleges that offer certified programs that are bureau of                   

                                                                                

7   apprenticeship training certified.  The Michigan economic development       

                                                                                

8   corporation shall report by November 1 of each year to the house and        

                                                                                

9   senate appropriations subcommittees on community colleges and the           

                                                                                

10  senate and house fiscal agencies the names of the community colleges        

                                                                                

11  awarded grant money under this section, the amount of the grants            

                                                                                

12  awarded, and the percentage awarded to bureau of apprenticeship             

                                                                                

13  training certified programs.                                                

                                                                                

                                                                                

                                                                                

14  STATE AID - OPERATIONS                                                      

                                                                                

15      Sec. 301.  Unless otherwise stated, all data items used in                  

                                                                                

16  determining state aid in this act are as defined in the 2001 Manual         

                                                                                

17  for Uniform Financial Reporting, Michigan Public Community Colleges,        

                                                                                

18  which shall be the basis for reporting data, and the 2003 Activities        

                                                                                

19  Classification Structure Manual for Michigan Community Colleges, which      

                                                                                

20  shall be used to document financial needs of the community colleges.        

                                                                                

21      Sec. 302.  A community college shall not include in the                     

                                                                                

22  enrollment data reported for determining state aid under this act any       

                                                                                

23  student credit hours or student contact hours for a student                 

                                                                                

24  incarcerated in a Michigan penal institution.  Exclusion of these           

                                                                                

25  students is intended to avoid the payment of state aid under this act       

                                                                                

26  for the same individuals for whom reimbursement is provided by the          


                                                                                

1   state correctional system.                                                  

                                                                                

2       Sec. 303.  A community college selected for audit under section             

                                                                                

3   502 whose audited activities classification structure data is               

                                                                                

4   significantly different than the data used to determine state aid           

                                                                                

5   under this act shall return any overappropriated money as provided in       

                                                                                

6   this subsection.  The department of labor and economic growth shall         

                                                                                

7   compare formula computations for the audited colleges using pre- and        

                                                                                

8   post-audit data.  If the state allocation is 2% or more than the            

                                                                                

9   post-audit allocation amount, the college shall return the excess           

                                                                                

10  money.  The returned money shall be redistributed to all 28 community       

                                                                                

11  colleges, prorated on the base appropriations contained in part 1.          

                                                                                

12      Sec. 304.  It is the intent of the legislature to achieve full              

                                                                                

13  funding of the Gast-Mathieu fairness in funding formula.                    

                                                                                

                                                                                

                                                                                

14  GRANTS                                                                      

                                                                                

15      Sec. 401.  (1) The community college at-risk student success                

                                                                                

16  program is continued.  The funding shall be prorated among community        

                                                                                

17  colleges based on the number of student contact hours for                   

                                                                                

18  developmental and preparatory instruction reported by each community        

                                                                                

19  college to the department of labor and economic growth pursuant to the      

                                                                                

20  2003 Activities Classification Structure Manual for Michigan Community      

                                                                                

21  Colleges.  Of the amount appropriated in part 1 for the at-risk             

                                                                                

22  student success program, $1,120,000.00 is allocated for base grants of      

                                                                                

23  $40,000.00 each, to address the special needs of at-risk students at        

                                                                                

24  community colleges or the acquisition or upgrade of technology-related      

                                                                                

25  equipment and software.                                                     

                                                                                

26      (2) Of the amount appropriated in part 1 for the at-risk student            


                                                                                

1   success program, the balance of the appropriated money shall be             

                                                                                

2   distributed on a proration utilizing the sum of the most recent             

                                                                                

3   3 years developmental/preparatory contact hours divided by the sum of       

                                                                                

4   the 3-year total contact hours at each college.  Each community             

                                                                                

5   college's percentage shall be divided by the sum of all the                 

                                                                                

6   percentages systemwide to obtain each community college's prorated          

                                                                                

7   grant amount.                                                               

                                                                                

8       (3) For the fiscal year ending September 30, 2005, the at-risk              

                                                                                

9   student success program money is allocated as follows:                      

                                                                                

10    Alpena Community College............................ $          72,300    

                                                                                

11    Bay de Noc Community College........................            83,900    

                                                                                

12    Delta College.......................................            99,700    

                                                                                

13    Glen Oaks Community College.........................           125,600    

                                                                                

14    Gogebic Community College...........................            70,700    

                                                                                

15    Grand Rapids Community College......................           111,500    

                                                                                

16    Henry Ford Community College........................           146,000    

                                                                                

17    Jackson Community College...........................            98,100    

                                                                                

18    Kalamazoo Valley Community College..................            93,800    

                                                                                

19    Kellogg Community College...........................           146,200    

                                                                                

20    Kirtland Community College..........................           133,000    

                                                                                

21    Lake Michigan College...............................           155,000    

                                                                                

22    Lansing Community College...........................           142,600    

                                                                                

23    Macomb Community College............................            83,600    

                                                                                

24    Mid Michigan Community College......................           126,800    

                                                                                

25    Monroe County Community College.....................            91,300    

                                                                                

26    Montcalm Community College..........................            67,200    

                                                                                

27    C.S. Mott Community College.........................           100,700    


                                                                                

1     Muskegon Community College..........................           183,300    

                                                                                

2     North Central Michigan College......................           117,500    

                                                                                

3     Northwestern Michigan College.......................           124,600    

                                                                                

4     Oakland Community College...........................           144,000    

                                                                                

5     St. Clair Community College.........................            92,000    

                                                                                

6     Schoolcraft College.................................           130,400    

                                                                                

7     Southwestern Michigan College.......................           141,500    

                                                                                

8     Washtenaw Community College.........................           158,400    

                                                                                

9     Wayne County Community College......................           161,200    

                                                                                

10    West Shore Community College........................           121,800    

                                                                                

11      (4) As used in this act, "at-risk students" means students who              

                                                                                

12  meet 1 or more of the following criteria:                                   

                                                                                

13      (a) Are initially placed in 1 or more developmental courses as a            

                                                                                

14  result of standardized testing or as a result of failure to make            

                                                                                

15  satisfactory academic progress.                                             

                                                                                

16      (b) Are diagnosed as learning disabled.                                     

                                                                                

17      (c) Require English as a second language (ESL) assistance.                  

                                                                                

18      (5) Grant funding under this section shall be utilized to address           

                                                                                

19  the special needs of at-risk students or for equipment or upgrade of        

                                                                                

20  information technology hardware or software.  Activities related to         

                                                                                

21  services provided to at-risk students include, but are not limited to,      

                                                                                

22  pretesting for academic ability, counseling contacts, and special           

                                                                                

23  programs.  Equipment or information technology hardware or software         

                                                                                

24  purchased under this section need not be associated with the operation      

                                                                                

25  of a program designed to address the needs of at-risk students.             

                                                                                

26      (6) Grant funding under this section shall not be used for                  

                                                                                

27  indirect costs including, but not limited to, rent, utilities, or,          


                                                                                

1   except as provided in this section, college administration.                 

                                                                                

2       (7) Each community college shall report to the department of labor          

                                                                                

3   and economic growth a summary of all accomplishments under,                 

                                                                                

4   expenditures for, and compliance with the intent of this program,           

                                                                                

5   including the number of at-risk students served.  The report is             

                                                                                

6   subject to audit as provided for in section 502(1).  The report shall       

                                                                                

7   be submitted not later than 90 days after the end of the state's            

                                                                                

8   fiscal year.                                                                

                                                                                

9       Sec. 404.  The appropriation in part 1 for renaissance zone                 

                                                                                

10  reimbursements shall be made to each eligible recipient no later than       

                                                                                

11  60 days after the department of treasury certifies to the state budget      

                                                                                

12  director that it has received all necessary information to properly         

                                                                                

13  determine the amounts due each eligible recipient under section 12 of       

                                                                                

14  the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.               

                                                                                

                                                                                

                                                                                

15  REPORTS AND AUDITS                                                          

                                                                                

16      Sec. 501.  The department of labor and economic growth shall                

                                                                                

17  publish the activities classification structure data book for Michigan      

                                                                                

18  community colleges on or before March 1, 2005, for use by the               

                                                                                

19  legislature during budget development for the fiscal year ending            

                                                                                

20  September 30, 2006.                                                         

                                                                                

21      Sec. 502.  (1) The auditor general or an independent public                 

                                                                                

22  accounting firm appointed by the auditor general shall audit data for       

                                                                                

23  the fiscal year ending on June 30, 2004, as submitted to the                

                                                                                

24  department of labor and economic growth by 7 randomly selected              

                                                                                

25  community colleges.  A community college shall maintain and provide         

                                                                                

26  those records necessary for the auditor general or certified public         


                                                                                

1   accountant appointed by the auditor general to determine the accuracy       

                                                                                

2   of the reported data.  The audits shall be based upon the definitions       

                                                                                

3   and requirements contained in the 2001 Manual for Uniform Financial         

                                                                                

4   Reporting, Michigan Public Community Colleges and the 2003 Activities       

                                                                                

5   Classification Structure Manual for Michigan Community Colleges.            

                                                                                

6   Before the submission of a final audit report, a community college may      

                                                                                

7   appeal the findings of the preliminary report under an appeal process       

                                                                                

8   to be established by the auditor general.  The auditor general shall        

                                                                                

9   submit a report of the findings to the house and senate appropriations      

                                                                                

10  committees, the department of labor and economic growth, and the state      

                                                                                

11  budget director before June 1, 2005.                                        

                                                                                

12      (2) The auditor general or a certified public accountant appointed          

                                                                                

13  by the auditor general may conduct performance audits of community          

                                                                                

14  colleges as the auditor general considers necessary.                        

                                                                                

15      (3) Not more than 60 days after an audit report is released by the          

                                                                                

16  office of the auditor general, the principal executive officer of the       

                                                                                

17  community college that was audited shall submit to the house and            

                                                                                

18  senate appropriations committees, the house and senate fiscal               

                                                                                

19  agencies, the department of labor and economic growth, the auditor          

                                                                                

20  general, and the state budget director a plan to comply with audit          

                                                                                

21  recommendations.  The plan shall contain projected dates and resources      

                                                                                

22  required, if any, to achieve compliance with the audit                      

                                                                                

23  recommendations, or a documented explanation of the college's               

                                                                                

24  noncompliance with the audit recommendations concerning the matters on      

                                                                                

25  which the audited community college and office of the auditor general       

                                                                                

26  disagree.                                                                   

                                                                                

27      Sec. 503.  The department of labor and economic growth shall                


                                                                                

1   review the taxonomy of the 7 community colleges selected for the audit      

                                                                                

2   under section 502 that is based on the 2003 Activities Classification       

                                                                                

3   Structure Manual for Michigan Community Colleges.                           

                                                                                

4       Sec. 504.  (1) A community college shall retain certified class             

                                                                                

5   summaries, class lists, registration documents, and student                 

                                                                                

6   transcripts that are consistent with the taxonomy of courses.  For          

                                                                                

7   each enrollment period during the fiscal year, these certified              

                                                                                

8   documents shall identify clearly by course the number of in-district        

                                                                                

9   and out-of-district student credit and contact hours.  The class            

                                                                                

10  summaries and class lists shall be consistent with each other and           

                                                                                

11  shall include the course prefix and numbers, course title, course           

                                                                                

12  credit and contact hours, credit and contact hours generated by each        

                                                                                

13  student, and activity classifications consistent with the taxonomy.         

                                                                                

14  An auditable process shall be used by the community college to              

                                                                                

15  determine the unduplicated head count for in-district students,             

                                                                                

16  out-of-district students, and prisoners for each enrollment period          

                                                                                

17  during the fiscal year.                                                     

                                                                                

18      (2) Contracts between the community college and agencies that               

                                                                                

19  reimburse the community college for the costs of instruction shall be       

                                                                                

20  retained for audit purposes.                                                

                                                                                

21      Sec. 505.  Each community college shall have an annual audit of             

                                                                                

22  all income and expenditures performed by an independent auditor and         

                                                                                

23  shall furnish the independent auditor's management letter and an            

                                                                                

24  annual audited accounting of all general and current funds income and       

                                                                                

25  expenditures including audits of college foundations to the members of      

                                                                                

26  the senate and house appropriations subcommittees on community              

                                                                                

27  colleges, the senate and house fiscal agencies, the auditor general,        


                                                                                

1   the department of labor and economic growth, and the state budget           

                                                                                

2   director before November 15, 2004.  If a community college fails to         

                                                                                

3   furnish the audit materials, the monthly state aid installments shall       

                                                                                

4   be withheld from that college until the information is submitted.  All      

                                                                                

5   reporting shall conform to the requirements set forth in the 2001           

                                                                                

6   Manual for Uniform Financial Reporting, Michigan Public Community           

                                                                                

7   Colleges.                                                                   

                                                                                

8       Sec. 506.  (1) Each community college shall report the following            

                                                                                

9   to the department of labor and economic growth no later than November       

                                                                                

10  1, 2004:                                                                    

                                                                                

11      (a) The number of North American Indian students enrolled each              

                                                                                

12  term for the previous fiscal year, using guidelines and procedures          

                                                                                

13  developed by the department of labor and economic growth and the            

                                                                                

14  Michigan commission on Indian affairs.                                      

                                                                                

15      (b) The number of Indian tuition waivers granted each term, and             

                                                                                

16  the monetary value of the waivers for the previous fiscal year.             

                                                                                

17      (2) Colleges shall use the criteria cited in 1976 PA 174, MCL               

                                                                                

18  390.1251 to 390.1253, to determine eligibility for tuition waivers,         

                                                                                

19  and shall grant those waivers to individuals who meet the criteria and      

                                                                                

20  request tuition waivers.                                                    

                                                                                

21      (3) The department of labor and economic growth shall compile the           

                                                                                

22  information received under subsection (1) and shall submit this             

                                                                                

23  compilation to the house and senate appropriations subcommittees on         

                                                                                

24  community colleges, the senate and house fiscal agencies, and the           

                                                                                

25  state budget director by January 7, 2005.                                   

                                                                                

26      Sec. 507.  Upon request, a community college shall inform                   

                                                                                

27  interested Michigan high schools of the aggregate academic status of        


                                                                                

1   its students for the prior academic year, in a manner prescribed by         

                                                                                

2   the Michigan community college association and in cooperation with the      

                                                                                

3   Michigan association of secondary school principals.                        

                                                                                

4       Sec. 508.  (1) Each community college shall report to the house             

                                                                                

5   and senate fiscal agencies, the state budget director, and the              

                                                                                

6   department of labor and economic growth by August 31, 2004, the             

                                                                                

7   tuition and mandatory fees paid by a full-time in-district student and      

                                                                                

8   a full-time out-of-district student as established by the college           

                                                                                

9   governing board for the 2004-2005 academic year.  Each community            

                                                                                

10  college shall also report any revisions to the reported 2004-2005           

                                                                                

11  academic year tuition and mandatory fees adopted by the college             

                                                                                

12  governing board to the house and senate fiscal agencies, the state          

                                                                                

13  budget director, and the department of labor and economic growth            

                                                                                

14  within 15 days of being adopted.                                            

                                                                                

15      (2) The department of labor and economic growth shall prepare and           

                                                                                

16  provide to community colleges a standard format for reporting tuition       

                                                                                

17  and fees pursuant to subsection (1).                                        

                                                                                

18      Sec. 509.  (1) Each community college shall report to the                   

                                                                                

19  department of labor and economic growth the numbers and type of             

                                                                                

20  associate degrees and other certificates awarded during the previous        

                                                                                

21  fiscal year.  The report shall be made not later than November 15,          

                                                                                

22  2004.                                                                       

                                                                                

23      (2) The department of labor and economic growth shall compile the           

                                                                                

24  information received under subsection (1) and shall submit this             

                                                                                

25  compilation to the house and senate appropriations subcommittees on         

                                                                                

26  community colleges, the senate and house fiscal agencies, and the           

                                                                                

27  state budget director by January 7, 2005.                                   


                                                                                

1       Sec. 510.  A community college receiving funding under this act             

                                                                                

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

                                                                                

3   Public Law 101-542, 104 Stat. 2381, shall make a copy of all material       

                                                                                

4   prepared in accordance with the public information reporting                

                                                                                

5   requirements under the crime awareness and campus security act of           

                                                                                

6   1990, title II of the student right-to-know and campus security act,        

                                                                                

7   Public Law 101-542, 104 Stat. 2384, available in hard copy and              

                                                                                

8   electronic format accessible through the Internet for school                

                                                                                

9   districts, parents, and students.                                           

                                                                                

10      Sec. 511.  (1) It is the intent of the legislature that the                 

                                                                                

11  frequency and scope of on-site visits, evaluations, audits, and             

                                                                                

12  similar activities be limited to that which is reasonably necessary to      

                                                                                

13  monitor the performance of community colleges and confirm the accuracy      

                                                                                

14  of reported data.  On-site visits, evaluations, audits, and similar         

                                                                                

15  activities conducted to comply with the state plan approved by the          

                                                                                

16  United States department of education under the Perkins act shall be        

                                                                                

17  limited to those necessary to meet the requirements of the state            

                                                                                

18  plan.                                                                       

                                                                                

19      (2) In developing and implementing audit and reporting                      

                                                                                

20  requirements, including those included in current and proposed state        

                                                                                

21  plans under the Perkins act, the department of labor and economic           

                                                                                

22  growth shall consult with community colleges, the legislative auditor       

                                                                                

23  general, and independent auditors in an effort to coordinate                

                                                                                

24  activities and minimize duplication of audit and reporting                  

                                                                                

25  requirements imposed on community colleges.                                 

                                                                                

26      (3) At least 30 days before submission of a new state plan to the           

                                                                                

27  United States department of education for approval under the Perkins        


                                                                                

1   act, the department of labor and economic growth shall provide copies       

                                                                                

2   of the proposed plan to the members of the senate and house                 

                                                                                

3   appropriations subcommittees on community colleges for their review         

                                                                                

4   and comment.  Copies of the proposed plan shall be provided to the          

                                                                                

5   senate and house fiscal agencies and the state budget director at the       

                                                                                

6   same time that they are provided to the senate and house                    

                                                                                

7   subcommittees.                                                              

                                                                                

8       (4) The Perkins grant application process and content shall be              

                                                                                

9   streamlined to the extent possible.                                         

                                                                                

10      (5) As used in this section, "Perkins act" means the Carl D.                

                                                                                

11  Perkins vocational and applied technology education act, 20 USC 2301        

                                                                                

12  to 2415.                                                                    

                                                                                

13      Sec. 513.  The department of treasury shall annually collect and            

                                                                                

14  compile data on the tax revenue losses to community colleges resulting      

                                                                                

15  from tax increment financing authorities (TIFA) and tax abatements.         

                                                                                

16  The department of treasury shall produce a report detailing the data.       

                                                                                

17  The report shall be completed and presented to the house and senate         

                                                                                

18  appropriations subcommittees on community colleges, the department of       

                                                                                

19  career development, and the department of management and budget not         

                                                                                

20  later than February 15, 2005.  The report shall include, but is not         

                                                                                

21  limited to, the following:                                                  

                                                                                

22      (a) Estimated revenue losses for each community college for the             

                                                                                

23  calendar year 2004.                                                         

                                                                                

24      (b) Confirmed revenue losses for each community college for the             

                                                                                

25  calendar years 2002 and 2003.                                               

                                                                                

26      (c) Other requirements requested by the house and senate                    

                                                                                

27  appropriations subcommittees on community colleges.                         


                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

1                                   PART 2A                                     

                                                                                

2     APPROPRIATIONS AND PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL        

                                                                                

3                               YEAR 2003-2004                                  

                                                                                

4   GENERAL SECTIONS                                                            

                                                                                

5       Sec. 1201.  (1) A community college certifying to the state                 

                                                                                

6   budget director by June 30, 2004 that it did not adopt an increase in       

                                                                                

7   in-district tuition and fees after December 1, 2003 for the 2003-2004       

                                                                                

8   academic year and that it will not adopt in-district tuition and fee        

                                                                                

9   increases for the 2004-2005 academic year that exceed 3.0% shall be         

                                                                                

10  paid in the fiscal year ending September 30, 2004 from state general        

                                                                                

11  fund/general purpose revenues an additional state appropriation as          

                                                                                

12  follows:                                                                    

                                                                                

13    Alpena Community College............................ $         148,000    

                                                                                

14    Bay de Noc Community College........................           143,100    

                                                                                

15    Delta College.......................................           400,100    

                                                                                

16    Glen Oaks Community College.........................            67,200    

                                                                                

17    Gogebic Community College...........................           122,500    

                                                                                

18    Grand Rapids Community College......................           503,200    

                                                                                

19    Henry Ford Community College........................           613,200    

                                                                                

20    Jackson Community College...........................           339,500    

                                                                                

21    Kalamazoo Valley Community College..................           346,400    

                                                                                

22    Kellogg Community College...........................           272,200    

                                                                                

23    Kirtland Community College..........................            82,700    

                                                                                

24    Lake Michigan College...............................           146,500    

                                                                                

25    Lansing Community College...........................           870,100    


                                                                                

1     Macomb Community College............................           928,300    

                                                                                

2     Mid Michigan Community College......................           123,900    

                                                                                

3     Monroe County Community College.....................           120,600    

                                                                                

4     Montcalm Community College..........................            87,200    

                                                                                

5     C.S. Mott Community College.........................           440,000    

                                                                                

6     Muskegon Community College..........................           250,400    

                                                                                

7     North Central Michigan College......................            84,900    

                                                                                

8     Northwestern Michigan College.......................           255,500    

                                                                                

9     Oakland Community College...........................           585,700    

                                                                                

10    St. Clair County Community College..................           196,200    

                                                                                

11   Schoolcraft College.................................           343,800    

                                                                                

12    Southwestern Michigan College.......................           184,600    

                                                                                

13    Washtenaw Community College.........................           349,400    

                                                                                

14    Wayne County Community College......................           451,600    

                                                                                

15    West Shore Community College........................            64,400    

                                                                                

16    Total...............................................         8,521,200    

                                                                                

17      (2) For the purposes of subsection (1), a community college that            

                                                                                

18  adopted an increase in in-district tuition and fees after December 1,       

                                                                                

19  2003 for the 2003-2004 academic year, but subsequently rebated to its       

                                                                                

20  students an amount equal to this increase prior to June 30, 2004 is         

                                                                                

21  considered to have not adopted an in-district tuition and fee increase      

                                                                                

22  for the 2003-2004 academic year.                                            

                                                                                

23      (3) The state budget director shall implement a reporting                   

                                                                                

24  requirement based on definitions and uniform reporting requirements         

                                                                                

25  established by the state budget director and the house and senate           

                                                                                

26  fiscal agencies, to ensure that a community college receiving an            

                                                                                

27  appropriation under this section has satisfied its tuition restraint        


                                                                                

1   requirements.                                                               

                                                                                

                                                                                

                                                                                

2   REPEALERS                                                                   

                                                                                

3       Enacting section 1.  Section 251 of 2003 PA 237 is repealed.