SB-1062, As Passed Senate, March 30, 2004                                   

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                  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; and to prescribe       

                                                                                

    the powers and duties of certain state departments, institutions,           

                                                                                

    agencies, employees, and officers.                                          

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2             LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 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            

                                                                                

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

                                                                                


                                                                                

1   COMMUNITY COLLEGES                                                          

                                                                                

2   APPROPRIATION SUMMARY:                                                      

                                                                                

3     GROSS APPROPRIATION................................. $     285,747,000    

                                                                                

4       Interdepartmental grant revenues:                                       

                                                                                

5     Total interdepartmental grants and intradepartmental                      

                                                                                

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

                                                                                

7     ADJUSTED GROSS APPROPRIATION........................ $     285,747,000    

                                                                                

8     Total federal revenues..............................                 0    

                                                                                

9     Total local revenues................................                 0    

                                                                                

10    Total private revenues..............................                 0    

                                                                                

11    Total state restricted revenues.....................                 0    

                                                                                

12    State general fund/general purpose.................. $     285,747,000    

                                                                                

13      Sec. 102.  OPERATIONS                                                       

                                                                                

14    Alpena Community College............................ $       4,566,700    

                                                                                

15    Bay de Noc Community College........................         4,415,100    

                                                                                

16    Delta College.......................................        12,348,100    

                                                                                

17    Glen Oaks Community College.........................         2,071,700    

                                                                                

18    Gogebic Community College...........................         3,777,400    

                                                                                

19    Grand Rapids Community College......................        15,531,800    

                                                                                

20    Henry Ford Community College........................        18,928,600    

                                                                                

21    Jackson Community College...........................        10,478,000    

                                                                                

22    Kalamazoo Valley Community College..................        10,691,000    

                                                                                

23    Kellogg Community College...........................         8,399,600    

                                                                                

24    Kirtland Community College..........................         2,549,300    

                                                                                

25    Lake Michigan College...............................         4,520,700    

                                                                                

26    Lansing Community College...........................        26,859,500    

                                                                                

27    Macomb Community College............................        28,658,300    


                                                                                

1     Mid Michigan Community College......................         3,823,000    

                                                                                

2     Monroe County Community College.....................         3,719,400    

                                                                                

3     Montcalm Community College..........................         2,690,400    

                                                                                

4     C.S. Mott Community College.........................        13,579,600    

                                                                                

5     Muskegon Community College..........................         7,727,900    

                                                                                

6     North Central Michigan College......................         2,617,500    

                                                                                

7     Northwestern Michigan College.......................         7,885,600    

                                                                                

8     Oakland Community College...........................        18,077,900    

                                                                                

9     St. Clair County Community College..................         6,055,400    

                                                                                

10    Schoolcraft College.................................        10,610,000    

                                                                                

11    Southwestern Michigan College.......................         5,695,500    

                                                                                

12    Washtenaw Community College.........................        10,783,700    

                                                                                

13    Wayne County Community College......................        13,940,000    

                                                                                

14    West Shore Community College........................         1,985,800    

                                                                                

15    GROSS APPROPRIATION................................. $     262,987,500    

                                                                                

16        Appropriated from:                                                    

                                                                                

17    State general fund/general purpose.................. $     262,987,500    

                                                                                

18      Sec. 103.  TUITION RESTRAINT INCENTIVE                                      

                                                                                

19    Alpena Community College............................ $         295,800    

                                                                                

20    Bay de Noc Community College........................           286,000    

                                                                                

21    Delta College.......................................           800,000    

                                                                                

22    Glen Oaks Community College.........................           134,200    

                                                                                

23    Gogebic Community College...........................           244,800    

                                                                                

24    Grand Rapids Community College......................         1,006,200    

                                                                                

25    Henry Ford Community College........................         1,226,200    

                                                                                

26    Jackson Community College...........................           678,800    

                                                                                

27    Kalamazoo Valley Community College..................           692,600    


                                                                                

1     Kellogg Community College...........................           544,200    

                                                                                

2     Kirtland Community College..........................           165,200    

                                                                                

3     Lake Michigan College...............................           292,800    

                                                                                

4     Lansing Community College...........................         1,740,000    

                                                                                

5     Macomb Community College............................         1,856,400    

                                                                                

6     Mid Michigan Community College......................           247,600    

                                                                                

7     Monroe County Community College.....................           241,000    

                                                                                

8     Montcalm Community College..........................           174,200    

                                                                                

9     C.S. Mott Community College.........................           879,800    

                                                                                

10    Muskegon Community College..........................           500,600    

                                                                                

11    North Central Michigan College......................           169,600    

                                                                                

12    Northwestern Michigan College.......................           510,800    

                                                                                

13    Oakland Community College...........................         1,171,200    

                                                                                

14    St. Clair County Community College..................           392,200    

                                                                                

15    Schoolcraft College.................................           687,400    

                                                                                

16    Southwestern Michigan College.......................           369,000    

                                                                                

17    Washtenaw Community College.........................           698,600    

                                                                                

18    Wayne County Community College......................           903,000    

                                                                                

19    West Shore Community College........................           128,600    

                                                                                

20    GROSS APPROPRIATION................................. $      17,036,800    

                                                                                

21        Appropriated from:                                                    

                                                                                

22    State general fund/general purpose.................. $      17,036,800    

                                                                                

23      Sec. 104.  GRANTS                                                           

                                                                                

24    At-risk student success program..................... $       3,322,700    

                                                                                

25    Renaissance zone tax reimbursement funding..........         2,400,000    

                                                                                

26    GROSS APPROPRIATION................................. $       5,722,700    

                                                                                

27        Appropriated from:                                                    


                                                                                

1     State general fund/general purpose.................. $       5,722,700    

                                                                                

                                                                                

                                                                                

2                                     PART 2                                    

                                                                                

3         PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2004-2005        

                                                                                

4   GENERAL SECTIONS                                                            

                                                                                

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

                                                                                

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

                                                                                

7   part 1 for fiscal year 2004-2005 is $285,747,000.00 and state spending      

                                                                                

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

                                                                                

9   fiscal year 2004-2005 is $285,747,000.00.  The itemized statement           

                                                                                

10  below identifies appropriations from which spending to local units of       

                                                                                

11  government will occur:                                                      

                                                                                

12    Operations.......................................... $     280,024,300    

                                                                                

13    At-risk student success program.....................         3,322,700    

                                                                                

14    Renaissance zone tax reimbursement program..........         2,400,000    

                                                                                

15    TOTAL............................................... $     285,747,000    

                                                                                

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

                                                                                

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

                                                                                

18  18.1594.                                                                    

                                                                                

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

                                                                                

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

                                                                                

21  economic growth shall use the Internet to fulfill the reporting             

                                                                                

22  requirements of this act.  This requirement may include transmission        

                                                                                

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

                                                                                

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

                                                                                

25  Internet or Intranet site.                                                  

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   academic year that exceed the projected 2005 increase in the Detroit        

                                                                                

6   consumer price index as determined at the January 14, 2004 consensus        

                                                                                

7   revenue estimating conference.                                              

                                                                                

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

                                                                                

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

                                                                                

10  2003 for the 2003-2004 academic year, but subsequently rebated to its       

                                                                                

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

                                                                                

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

                                                                                

13  for the 2003-2004 academic year.                                            

                                                                                

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

                                                                                

15  requirement based on definitions and uniform reporting requirements         

                                                                                

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

                                                                                

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

                                                                                

18  appropriation under section 103 has satisfied the tuition restraint         

                                                                                

19  requirements of this section.                                               

                                                                                

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

                                                                                

21  requirements described in this section, its state appropriation will        

                                                                                

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

                                                                                

23  2004-2005 fiscal year.                                                      

                                                                                

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

                                                                                

25  work collaboratively with community colleges to develop an accelerated      

                                                                                

26  entrepreneurship curriculum, including an associate degree, to provide      

                                                                                

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


                                                                                

1   businesses.                                                                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   available.                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   available.                                                                  

                                                                                

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

                                                                                

11  college receiving appropriations in part 1 shall take all reasonable        

                                                                                

12  steps to ensure businesses in deprived and depressed communities            

                                                                                

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

                                                                                

14  both.  Each principal executive officer shall strongly encourage firms      

                                                                                

15  with which the community college contracts to subcontract with              

                                                                                

16  certified businesses in depressed and deprived communities for              

                                                                                

17  services or supplies, or both.                                              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  treasurer to the respective community colleges in 11 monthly                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  fails to submit all verified Michigan community colleges activities         

                                                                                

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


                                                                                

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

                                                                                

2   monthly installments shall be withheld from that community college          

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   department shall not exceed the net state allocation authorized by          

                                                                                

8   this act.                                                                   

                                                                                

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

                                                                                

10  appropriated shall be used solely for the respective purposes stated        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  including local administration.                                             

                                                                                

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

                                                                                

16  contributions to the Michigan public school employees' retirement           

                                                                                

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

                                                                                

18  1980 PA 300, MCL 38.1301 to 38.1408, as a condition of receiving money      

                                                                                

19  appropriated under this act.                                                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

23  4 reports annually to the Michigan public school employees' retirement      

                                                                                

24  system for purposes of calculating retirement benefits.                     

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   JCOS policy.                                                                

                                                                                

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

                                                                                

5   strengthening Michigan's workforce, the legislature encourages the          

                                                                                

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

                                                                                

7   collaboration and cooperation with 4-year universities, particularly        

                                                                                

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

                                                                                

9   articulation.                                                               

                                                                                

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

                                                                                

11  appropriated under this act to provide health care coverage for             

                                                                                

12  community college employees or their dependents for abortion services,      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  employment contract that includes health care coverage for abortion         

                                                                                

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

                                                                                

18  the woman upon whom the abortion is performed.                              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

22  violation of subsection (1).                                                

                                                                                

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

                                                                                

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

                                                                                

25  MCL 551.271, the legislature intends that a community college               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   all of the following:                                                       

                                                                                

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

                                                                                

5   eliminate discrimination, and foster a diverse student body and             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   discriminate.                                                               

                                                                                

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

                                                                                

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

                                                                                

12  action regarding state university admission and enrollment policies         

                                                                                

13  that specifically address the acceptance and application of college         

                                                                                

14  credits earned by students through the postsecondary enrollment             

                                                                                

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

                                                                                

16  community college association may create and administer the workgroup       

                                                                                

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

                                                                                

18  school organizations.                                                       

                                                                                

                                                                                

                                                                                

19  STATE AID - OPERATIONS                                                      

                                                                                

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

                                                                                

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

                                                                                

22  for Uniform Financial Reporting, Michigan Public Community Colleges,        

                                                                                

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

                                                                                

24  Classification Structure Manual for Michigan Community Colleges, which      

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   student credit hours or student contact hours for a student                 

                                                                                

3   incarcerated in a Michigan penal institution.  Exclusion of these           

                                                                                

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

                                                                                

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

                                                                                

6   state correctional system.                                                  

                                                                                

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

                                                                                

8   502 whose audited activities classification structure data is               

                                                                                

9   significantly different than the data used to determine state aid           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

                                                                                

                                                                                

19  GRANTS                                                                      

                                                                                

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

                                                                                

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

                                                                                

22  colleges based on the number of student contact hours for                   

                                                                                

23  developmental and preparatory instruction reported by each community        

                                                                                

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

                                                                                

25  2003 Activities Classification Structure Manual for Michigan Community      

                                                                                

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


                                                                                

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

                                                                                

2   $40,000.00 each, to address the special needs of at-risk students at        

                                                                                

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

                                                                                

4   equipment and software.                                                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   3 years developmental/preparatory contact hours divided by the sum of       

                                                                                

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

                                                                                

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

                                                                                

11  percentages systemwide to obtain each community college's prorated          

                                                                                

12  grant amount.                                                               

                                                                                

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

                                                                                

14  student success program money is allocated as follows:                      

                                                                                

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

                                                                                

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

                                                                                

17    Delta College.......................................            99,700    

                                                                                

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

                                                                                

19    Gogebic Community College...........................            70,700    

                                                                                

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

                                                                                

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

                                                                                

22    Jackson Community College...........................            98,100    

                                                                                

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

                                                                                

24    Kellogg Community College...........................           146,200    

                                                                                

25    Kirtland Community College..........................           133,000    

                                                                                

26    Lake Michigan College...............................           155,000    

                                                                                

27    Lansing Community College...........................           142,600    


                                                                                

1     Macomb Community College............................            83,600    

                                                                                

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

                                                                                

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

                                                                                

4     Montcalm Community College..........................            67,200    

                                                                                

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

                                                                                

6     Muskegon Community College..........................           183,300    

                                                                                

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

                                                                                

8     Northwestern Michigan College.......................           124,600    

                                                                                

9     Oakland Community College...........................           144,000    

                                                                                

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

                                                                                

11    Schoolcraft College.................................           130,400    

                                                                                

12    Southwestern Michigan College.......................           141,500    

                                                                                

13    Washtenaw Community College.........................           158,400    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  meet 1 or more of the following criteria:                                   

                                                                                

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

                                                                                

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

                                                                                

20  satisfactory academic progress.                                             

                                                                                

21      (b) Are diagnosed as learning disabled.                                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  information technology hardware or software.  Activities related to         

                                                                                

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

                                                                                

27  pretesting for academic ability, counseling contacts, and special           


                                                                                

1   programs.  Equipment or information technology hardware or software         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   except as provided in this section, college administration.                 

                                                                                

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

                                                                                

8   and economic growth a summary of all accomplishments under,                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  fiscal year.                                                                

                                                                                

14      Sec. 402.  The legislature intends that any executive or                    

                                                                                

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

                                                                                

16  recommendation for appropriations for community colleges for the            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  will be accompanied by a similar action or proposal for                     

                                                                                

21  state-supported community colleges.                                         

                                                                                

22      Sec. 403.  The legislature intends that not less than 70% of the            

                                                                                

23  economic development job training grant money be awarded to community       

                                                                                

24  colleges or a consortium of community colleges and other eligible           

                                                                                

25  applicants as provided in the budget that appropriated the economic         

                                                                                

26  development job training grant money.  Further, the legislature             

                                                                                

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


                                                                                

1   economic development job training grants be awarded to community            

                                                                                

2   colleges that offer certified programs that are bureau of                   

                                                                                

3   apprenticeship training certified.  The Michigan economic development       

                                                                                

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

                                                                                

5   senate appropriations subcommittees on community colleges and the           

                                                                                

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

                                                                                

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

                                                                                

8   awarded, and the percentage awarded to bureau of apprenticeship             

                                                                                

9   training certified programs.                                                

                                                                                

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

                                                                                

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

                                                                                

12  60 days after the department of treasury certifies to the state budget      

                                                                                

13  director that it has received all necessary information to properly         

                                                                                

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

                                                                                

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

                                                                                

                                                                                

                                                                                

16  REPORTS AND AUDITS                                                          

                                                                                

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

                                                                                

18  publish the activities classification structure data book for Michigan      

                                                                                

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

                                                                                

20  legislature during budget development for the fiscal year ending            

                                                                                

21  September 30, 2006.                                                         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  department of labor and economic growth by 7 randomly selected              

                                                                                

26  community colleges.  A community college shall maintain and provide         


                                                                                

1   those records necessary for the auditor general or certified public         

                                                                                

2   accountant appointed by the auditor general to determine the accuracy       

                                                                                

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

                                                                                

4   and requirements contained in the 2001 Manual for Uniform Financial         

                                                                                

5   Reporting, Michigan Public Community Colleges and the 2003 Activities       

                                                                                

6   Classification Structure Manual for Michigan Community Colleges.            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

12  budget director before June 1, 2005.                                        

                                                                                

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

                                                                                

14  by the auditor general may conduct performance audits of community          

                                                                                

15  colleges as the auditor general considers necessary.                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  senate appropriations committees, the house and senate fiscal               

                                                                                

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

                                                                                

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

                                                                                

22  recommendations.  The plan shall contain projected dates and resources      

                                                                                

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

                                                                                

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

                                                                                

25  noncompliance with the audit recommendations concerning the matters on      

                                                                                

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

                                                                                

27  disagree.                                                                   


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   Structure Manual for Michigan Community Colleges.                           

                                                                                

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

                                                                                

6   summaries, class lists, registration documents, and student                 

                                                                                

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

                                                                                

8   each enrollment period during the fiscal year, these certified              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  student, and activity classifications consistent with the taxonomy.         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  during the fiscal year.                                                     

                                                                                

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

                                                                                

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

                                                                                

21  retained for audit purposes.                                                

                                                                                

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

                                                                                

23  all income and expenditures performed by an independent auditor and         

                                                                                

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

                                                                                

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

                                                                                

26  expenditures including audits of college foundations to the members of      

                                                                                

27  the senate and house appropriations subcommittees on community              


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   Manual for Uniform Financial Reporting, Michigan Public Community           

                                                                                

8   Colleges.                                                                   

                                                                                

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

                                                                                

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

                                                                                

11  1, 2004:                                                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  Michigan commission on Indian affairs.                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  390.1251 to 390.1253, to determine eligibility for tuition waivers,         

                                                                                

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

                                                                                

21  request tuition waivers.                                                    

                                                                                

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

                                                                                

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

                                                                                

24  compilation to the house and senate appropriations subcommittees on         

                                                                                

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

                                                                                

26  state budget director by January 7, 2005.                                   

                                                                                

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


                                                                                

1   interested Michigan high schools of the aggregate academic status of        

                                                                                

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

                                                                                

3   the Michigan community college association and in cooperation with the      

                                                                                

4   Michigan association of secondary school principals.                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  governing board for the 2004-2005 academic year.  This report should        

                                                                                

11  also include the annual cost of attendance based on a 30-credit course      

                                                                                

12  load.  Each community college shall also report any revisions to the        

                                                                                

13  reported 2004-2005 academic year tuition and mandatory fees adopted by      

                                                                                

14  the college governing board to the house and senate fiscal agencies,        

                                                                                

15  the state budget director, and the department of labor and economic         

                                                                                

16  growth within 15 days of being adopted.                                     

                                                                                

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

                                                                                

18  provide to community colleges a standard format for reporting tuition       

                                                                                

19  and fees pursuant to subsection (1).                                        

                                                                                

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

                                                                                

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

                                                                                

22  associate degrees and other certificates awarded during the previous        

                                                                                

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

                                                                                

24  2004.                                                                       

                                                                                

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

                                                                                

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

                                                                                

27  compilation to the house and senate appropriations subcommittees on         


                                                                                

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

                                                                                

2   state budget director by January 7, 2005.                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   prepared in accordance with the public information reporting                

                                                                                

7   requirements under the crime awareness and campus security act of           

                                                                                

8   1990, title II of the student right-to-know and campus security act,        

                                                                                

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

                                                                                

10  electronic format accessible through the Internet for school                

                                                                                

11  districts, parents, and students.                                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  monitor the performance of community colleges and confirm the accuracy      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  plan.                                                                       

                                                                                

21      (2) In developing and implementing audit and reporting                      

                                                                                

22  requirements, including those included in current and proposed state        

                                                                                

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

                                                                                

24  growth shall consult with community colleges, the legislative auditor       

                                                                                

25  general, and independent auditors in an effort to coordinate                

                                                                                

26  activities and minimize duplication of audit and reporting                  

                                                                                

27  requirements imposed on community colleges.                                 


                                                                                

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

                                                                                

2   United States department of education for approval under the Perkins        

                                                                                

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

                                                                                

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

                                                                                

5   appropriations subcommittees on community colleges for their review         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   subcommittees.                                                              

                                                                                

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

                                                                                

11  streamlined to the extent possible.                                         

                                                                                

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

                                                                                

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

                                                                                

14  to 2415.                                                                    

                                                                                

15      Sec. 512.  By January 10, 2005, each community college receiving            

                                                                                

16  an appropriation under part 1 shall report to the chairperson of the        

                                                                                

17  senate and house appropriations committees, the state budget director,      

                                                                                

18  and the senate and house fiscal agencies concerning the present             

                                                                                

19  condition of facilities for student housing and the present condition       

                                                                                

20  of any housing facilities provided to the community college's               

                                                                                

21  president or chancellor.  The report shall include, but not be limited      

                                                                                

22  to, all of the following:                                                   

                                                                                

23      (a) Concerning student housing, all of the following:                       

                                                                                

24                                                                               (i) An assessment of the physical condition of student housing                      

                                                                                

25  facilities.                                                                 

                                                                                

26      (ii) An assessment of special maintenance needs and costs for each           

                                                                                

27  facility.                                                                   


                                                                                

1       (iii) An assessment of the availability of student housing and               

                                                                                

2   whether there is adequate capacity to meet demand.                          

                                                                                

3       (iv) If there are shortages in availability of student housing,              

                                                                                

4   any action being considered to address the shortages.                       

                                                                                

5       (b) Concerning the president's or chancellor's housing, all of the          

                                                                                

6   following:                                                                  

                                                                                

7                                                                                (i) The type of residence, if any, provided to the community                        

                                                                                

8   college's president or chancellor.                                          

                                                                                

9       (ii) The value at the time of the report of the residence,                   

                                                                                

10  including both the land and the structure.                                  

                                                                                

11      (iii) The cost of any renovations and maintenance done at the                

                                                                                

12  residence for the immediately preceding 15 years.                           

                                                                                

13      (iv) The annual cost of operating the residence.                             

                                                                                

14      (v) The fiscal year 2004-2005 compensation of the president or              

                                                                                

15  chancellor, including fringe benefits and bonuses.                          

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

16                                  PART 2A                                     

                                                                                

17    APPROPRIATIONS AND PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL        

                                                                                

18                              YEAR 2003-2004                                  

                                                                                

19  GENERAL SECTIONS                                                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

24  increases for the 2004-2005 academic year that exceed the projected         

                                                                                

25  2005 increase in the Detroit consumer price index as determined at the      


                                                                                

1   January 14, 2004 consensus revenue estimating conference shall be paid      

                                                                                

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

                                                                                

3   fund/general purpose revenues an additional state appropriation as          

                                                                                

4   follows:                                                                    

                                                                                

5     Alpena Community College............................ $         147,900    

                                                                                

6     Bay de Noc Community College........................           143,000    

                                                                                

7     Delta College.......................................           400,000    

                                                                                

8     Glen Oaks Community College.........................            67,100    

                                                                                

9     Gogebic Community College...........................           122,400    

                                                                                

10    Grand Rapids Community College......................           503,100    

                                                                                

11    Henry Ford Community College........................           613,100    

                                                                                

12    Jackson Community College...........................           339,400    

                                                                                

13    Kalamazoo Valley Community College..................           346,300    

                                                                                

14    Kellogg Community College...........................           272,100    

                                                                                

15    Kirtland Community College..........................            82,600    

                                                                                

16    Lake Michigan College...............................           146,400    

                                                                                

17    Lansing Community College...........................           870,000    

                                                                                

18    Macomb Community College............................           928,200    

                                                                                

19    Mid Michigan Community College......................           123,800    

                                                                                

20    Monroe County Community College.....................           120,500    

                                                                                

21    Montcalm Community College..........................            87,100    

                                                                                

22    C.S. Mott Community College.........................           439,900    

                                                                                

23    Muskegon Community College..........................           250,300    

                                                                                

24    North Central Michigan College......................            84,800    

                                                                                

25    Northwestern Michigan College.......................           255,400    

                                                                                

26    Oakland Community College...........................           585,600    

                                                                                

27    St. Clair County Community College..................           196,100    


                                                                                

1     Schoolcraft College.................................           343,700    

                                                                                

2     Southwestern Michigan College.......................           184,500    

                                                                                

3     Washtenaw Community College.........................           349,300    

                                                                                

4     Wayne County Community College......................           451,500    

                                                                                

5     West Shore Community College........................            64,300    

                                                                                

6     Total...............................................         8,518,400    

                                                                                

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 this section has satisfied its tuition restraint        

                                                                                

18  requirements.                                                               

                                                                                

                                                                                

                                                                                

19  REPEALERS                                                                   

                                                                                

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