SB-1067, As Passed Senate, March 31, 2004                                   

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                  SUBSTITUTE FOR                                

                                                                                

                               SENATE BILL NO. 1067                             

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the state institutions of                       

                                                                                

    higher education and certain state purposes related to education for        

                                                                                

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

                                                                                

    ending September 30, 2005; to provide for the expenditures of those         

                                                                                

    appropriations; and to prescribe the powers and duties of certain           

                                                                                

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

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2             LINE-ITEM APPROPRIATIONS FOR FISCAL YEAR 2004-2005                

                                                                                

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

                                                                                

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

                                                                                

5   the fiscal year ending September 30, 2005, from the funds indicated in      

                                                                                

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

                                                                                

7   part:                                                                       

                                                                                

8   HIGHER EDUCATION                                                            

                                                                                


                                                                                

1   APPROPRIATION SUMMARY:                                                      

                                                                                

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

                                                                                

3     GROSS APPROPRIATION................................. $   1,698,585,600    

                                                                                

4       Interdepartmental grant revenues:                                       

                                                                                

5     Total interdepartmental grants and intradepartmental                      

                                                                                

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

                                                                                

7     ADJUSTED GROSS APPROPRIATION........................ $   1,698,585,600    

                                                                                

8       Federal revenues:                                                       

                                                                                

9     Total federal revenues..............................         4,500,000    

                                                                                

10      Special revenue funds:                                                  

                                                                                

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

                                                                                

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

                                                                                

13    Total other state restricted revenues...............        90,750,000    

                                                                                

14    State general fund/general purpose.................. $   1,603,335,600    

                                                                                

15      Sec. 102.  CENTRAL MICHIGAN UNIVERSITY                                      

                                                                                

16    Operations.......................................... $      75,018,300    

                                                                                

17    Tuition restraint incentive.........................         4,892,600    

                                                                                

18    GROSS APPROPRIATION................................. $      79,910,900    

                                                                                

19        Appropriated from:                                                    

                                                                                

20      Special revenue funds:                                                  

                                                                                

21    Michigan merit award trust fund.....................           538,440    

                                                                                

22    State general fund/general purpose.................. $      79,372,460    

                                                                                

23      Sec. 103.  EASTERN MICHIGAN UNIVERSITY                                      

                                                                                

24    Operations.......................................... $      72,563,400    

                                                                                

25    Tuition restraint incentive.........................         4,732,400    

                                                                                

26    GROSS APPROPRIATION................................. $      77,295,800    

                                                                                

27        Appropriated from:                                                    


                                                                                

1     State general fund/general purpose.................. $      77,295,800    

                                                                                

2       Sec. 104.  FERRIS STATE UNIVERSITY                                          

                                                                                

3     Operations.......................................... $      45,970,800    

                                                                                

4     Tuition restraint incentive.........................         2,998,000    

                                                                                

5     GROSS APPROPRIATION................................. $      48,968,800    

                                                                                

6         Appropriated from:                                                    

                                                                                

7     State general fund/general purpose.................. $      48,968,800    

                                                                                

8       Sec. 105.  GRAND VALLEY STATE UNIVERSITY                                    

                                                                                

9     Operations.......................................... $      54,358,900    

                                                                                

10    Tuition restraint incentive.........................         3,545,200    

                                                                                

11    GROSS APPROPRIATION................................. $      57,904,100    

                                                                                

12        Appropriated from:                                                    

                                                                                

13      Special revenue funds:                                                  

                                                                                

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

                                                                                

15    State general fund/general purpose.................. $      52,904,100    

                                                                                

16      Sec. 106.  LAKE SUPERIOR STATE UNIVERSITY                                   

                                                                                

17    Operations.......................................... $      11,814,400    

                                                                                

18    Tuition restraint incentive.........................           770,600    

                                                                                

19    GROSS APPROPRIATION................................. $      12,585,000    

                                                                                

20        Appropriated from:                                                    

                                                                                

21    State general fund/general purpose.................. $      12,585,000    

                                                                                

22      Sec. 107.  MICHIGAN STATE UNIVERSITY                                        

                                                                                

23    Operations.......................................... $     269,913,000    

                                                                                

24    Tuition restraint incentive.........................        17,603,000    

                                                                                

25    Agricultural experiment station.....................        33,163,800    

                                                                                

26    Cooperative extension service.......................        28,604,300    

                                                                                

27    GROSS APPROPRIATION................................. $     349,284,100    


                                                                                

1         Appropriated from:                                                    

                                                                                

2     State general fund/general purpose.................. $     349,284,100    

                                                                                

3       Sec. 108.  MICHIGAN TECHNOLOGICAL UNIVERSITY                                

                                                                                

4     Operations.......................................... $      45,740,000    

                                                                                

5     Tuition restraint incentive.........................         2,983,000    

                                                                                

6     GROSS APPROPRIATION................................. $      48,723,000    

                                                                                

7         Appropriated from:                                                    

                                                                                

8     State general fund/general purpose.................. $      48,723,000    

                                                                                

9       Sec. 109.  NORTHERN MICHIGAN UNIVERSITY                                     

                                                                                

10    Operations.......................................... $      43,066,600    

                                                                                

11    Tuition restraint incentive.........................         2,808,600    

                                                                                

12    GROSS APPROPRIATION................................. $      45,875,200    

                                                                                

13        Appropriated from:                                                    

                                                                                

14    State general fund/general purpose.................. $      45,875,200    

                                                                                

15      Sec. 110.  OAKLAND UNIVERSITY                                               

                                                                                

16    Operations.......................................... $      45,160,900    

                                                                                

17    Tuition restraint incentive.........................         2,945,200    

                                                                                

18    GROSS APPROPRIATION................................. $      48,106,100    

                                                                                

19        Appropriated from:                                                    

                                                                                

20      Special revenue funds:                                                  

                                                                                

21    Michigan merit award trust fund.....................         1,941,768    

                                                                                

22    State general fund/general purpose.................. $      46,164,332    

                                                                                

23      Sec. 111.  SAGINAW VALLEY STATE UNIVERSITY                                  

                                                                                

24    Operations.......................................... $      24,539,800    

                                                                                

25    Tuition restraint incentive.........................         1,600,400    

                                                                                

26    GROSS APPROPRIATION................................. $      26,140,200    

                                                                                

27        Appropriated from:                                                    


                                                                                

1       Special revenue funds:                                                  

                                                                                

2     Michigan merit award trust fund.....................         2,019,792    

                                                                                

3     State general fund/general purpose.................. $      24,120,408    

                                                                                

4       Sec. 112.  UNIVERSITY OF MICHIGAN-ANN ARBOR                                 

                                                                                

5     Operations.......................................... $     301,029,600    

                                                                                

6     Tuition restraint incentive.........................        19,632,400    

                                                                                

7     GROSS APPROPRIATION................................. $     320,662,000    

                                                                                

8         Appropriated from:                                                    

                                                                                

9     State general fund/general purpose.................. $     320,662,000    

                                                                                

10      Sec. 113.  UNIVERSITY OF MICHIGAN-DEARBORN                                  

                                                                                

11    Operations.......................................... $      23,178,400    

                                                                                

12    Tuition restraint incentive.........................         1,511,600    

                                                                                

13    GROSS APPROPRIATION................................. $      24,690,000    

                                                                                

14        Appropriated from:                                                    

                                                                                

15    State general fund/general purpose.................. $      24,690,000    

                                                                                

16      Sec. 114.  UNIVERSITY OF MICHIGAN-FLINT                                     

                                                                                

17    Operations.......................................... $      19,928,400    

                                                                                

18    Tuition restraint incentive.........................         1,299,600    

                                                                                

19    GROSS APPROPRIATION................................. $      21,228,000    

                                                                                

20        Appropriated from:                                                    

                                                                                

21    State general fund/general purpose.................. $      21,228,000    

                                                                                

22      Sec. 115.  WAYNE STATE UNIVERSITY                                           

                                                                                

23    Operations.......................................... $     210,017,500    

                                                                                

24    Tuition restraint incentive.........................        13,696,800    

                                                                                

25    GROSS APPROPRIATION................................. $     223,714,300    

                                                                                

26        Appropriated from:                                                    

                                                                                

27    State general fund/general purpose.................. $     223,714,300    


                                                                                

1       Sec. 116.  WESTERN MICHIGAN UNIVERSITY                                      

                                                                                

2     Operations.......................................... $     104,060,500    

                                                                                

3     Tuition restraint incentive.........................         6,786,600    

                                                                                

4     GROSS APPROPRIATION................................. $     110,847,100    

                                                                                

5         Appropriated from:                                                    

                                                                                

6     State general fund/general purpose.................. $     110,847,100    

                                                                                

7       Sec. 117.  STATE AND REGIONAL PROGRAMS                                      

                                                                                

8       Full-time equated positions.....................1.0                     

                                                                                

9     Higher education database modernization and                               

                                                                                

10      conversion--1.0 FTE positions..................... $         200,000    

                                                                                

11    Midwestern higher education compact.................               100    

                                                                                

12    GROSS APPROPRIATION................................. $         200,100    

                                                                                

13        Appropriated from:                                                    

                                                                                

14    State general fund/general purpose.................. $         200,100    

                                                                                

15      Sec. 118.  MARTIN LUTHER KING, JR. - CESAR CHAVEZ                           

                                                                                

16  - ROSA PARKS PROGRAM                                                        

                                                                                

17    Select student supportive services.................. $       1,956,100    

                                                                                

18    Michigan college/university partnership program.....           586,800    

                                                                                

19    Morris Hood, Jr. educator development program.......           148,600    

                                                                                

20    GROSS APPROPRIATION................................. $       2,691,500    

                                                                                

21        Appropriated from:                                                    

                                                                                

22    State general fund/general purpose.................. $       2,691,500    

                                                                                

23      Sec. 119.  GRANTS AND FINANCIAL AID                                         

                                                                                

24    State competitive scholarships...................... $      35,630,500    

                                                                                

25    Tuition grants......................................        64,768,100    

                                                                                

26    Michigan work-study program.........................         7,326,300    

                                                                                

27    Part-time independent student program...............         2,653,300    


                                                                                

1     Dental clinics grant................................         4,547,000    

                                                                                

2     Michigan education opportunity grants...............         2,084,200    

                                                                                

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

                                                                                

4     Nursing scholarship program.........................         4,000,000    

                                                                                

5     Michigan merit award program........................        67,000,000    

                                                                                

6     Tuition incentive program...........................        10,250,000    

                                                                                

7     GROSS APPROPRIATION................................. $     199,759,400    

                                                                                

8         Appropriated from:                                                    

                                                                                

9       Federal revenues:                                                       

                                                                                

10    Higher education act of 1965, title IV, 20 USC......         3,000,000    

                                                                                

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

                                                                                

12      Special revenue funds:                                                  

                                                                                

13    Michigan merit award trust fund.....................        81,250,000    

                                                                                

14    State general fund/general purpose.................. $     114,009,400    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

15                                    PART 2                                    

                                                                                

16        PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2004-2005        

                                                                                

17  GENERAL SECTIONS                                                            

                                                                                

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

                                                                                

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

                                                                                

20  part 1 for fiscal year 2004-2005 is $1,694,085,600.00 and state             

                                                                                

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

                                                                                

22  for fiscal year 2004-2005 is $3,759,100.00.  The itemized statement         

                                                                                

23  below identifies the estimated appropriations from which spending to        

                                                                                

24  units of local government will occur:                                       

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   18.1594.                                                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  include transmission of reports via electronic mail to the recipients       

                                                                                

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

                                                                                

12  of reports on an Internet or Intranet site.                                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  are available.  Preference should be given to goods or services, or         

                                                                                

17  both, manufactured or provided by Michigan businesses if they are           

                                                                                

18  competitively priced and of comparable value.                               

                                                                                

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

                                                                                

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

                                                                                

21  treasury and distributed by the state treasurer to the respective           

                                                                                

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

                                                                                

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

                                                                                

24  2004.  Except for Wayne State University, each institution shall            

                                                                                

25  accrue its July and August 2005 payments to its institutional fiscal        

                                                                                

26  year ending June 30, 2005.                                                  

                                                                                

27      (2) All universities shall submit higher education institutional            


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   2004, these data shall be submitted to the state budget director by         

                                                                                

5   October 15, 2004.  Universities with a fiscal year ending September         

                                                                                

6   30, 2004 shall submit preliminary HEIDI data by November 15, 2004 and       

                                                                                

7   final data by December 15, 2004.  If a university fails to submit           

                                                                                

8   HEIDI data and associated financial aid program information in              

                                                                                

9   accordance with this reporting schedule, the state treasurer shall          

                                                                                

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

                                                                                

11  university until those data are submitted.                                  

                                                                                

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

                                                                                

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

                                                                                

14  by the senate and house fiscal agencies.                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  funds are made available.                                                   

                                                                                

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

                                                                                

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

                                                                                

23  higher education that receives funds under this act notifies the            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   senate fiscal agencies.                                                     

                                                                                

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

                                                                                

4   funds under this act shall furnish all program and financial                

                                                                                

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

                                                                                

6   state budget director or the house or senate appropriations                 

                                                                                

7   committee.                                                                  

                                                                                

                                                                                

                                                                                

8   GRANTS AND FINANCIAL AID                                                    

                                                                                

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

                                                                                

10  state competitive scholarship program shall be distributed pursuant to      

                                                                                

11  1964 PA 208, MCL 390.971 to 390.981.                                        

                                                                                

12      (2) The Michigan higher education assistance authority shall                

                                                                                

13  implement a proportional competitive scholarship maximum award level        

                                                                                

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

                                                                                

15  term.                                                                       

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  than tuition and fees.                                                      

                                                                                

22      (4) If the Michigan higher education assistance authority                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  shall be proportional for all eligible students receiving awards.           


                                                                                

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

                                                                                

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

                                                                                

3   MCL 390.991 to 390.997a.                                                    

                                                                                

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

                                                                                

5   residents who apply before July 15, 2004 and who are qualified.             

                                                                                

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

                                                                                

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

                                                                                

8       (3) The Michigan higher education assistance authority shall                

                                                                                

9   determine an actual maximum tuition grant award per student that            

                                                                                

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

                                                                                

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

                                                                                

12  grant program.  By December 15, 2004, and again by February 1, 2005,        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  agencies no later than February 15, 2005.  If award adjustments are         

                                                                                

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

                                                                                

20  third Monday in February.                                                   

                                                                                

21      (4) Any unexpended and unencumbered funds remaining on                      

                                                                                

22  September 30, 2005 from the amounts appropriated in part 1 for the          

                                                                                

23  tuition grant program shall not lapse on September 30, 2005, but shall      

                                                                                

24  continue to be available for expenditure for tuition grants provided        

                                                                                

25  in the 2005-2006 fiscal year.  The use of these unexpended fiscal year      

                                                                                

26  2004-2005 funds shall terminate at the end of the 2005-2006 fiscal          

                                                                                

27  year.                                                                       


                                                                                

1       (5) The Michigan higher education assistance authority shall                

                                                                                

2   continue a proportional tuition grant maximum award level for               

                                                                                

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

                                                                                

4       (6) If the Michigan higher education assistance authority                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   shall be proportional for all eligible students receiving awards for        

                                                                                

10  fiscal year 2004-2005.                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  and Design at Ferris State University.                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

22  undergraduate, graduate, and professional students eligible to              

                                                                                

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

                                                                                

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

                                                                                

25  under this act.                                                             

                                                                                

26      (2) The Michigan higher education assistance authority shall                

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   recent years for which statistics are available.                            

                                                                                

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

                                                                                

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

                                                                                

6   process requests from participating institutions for allocation             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  degrees, and awards at selected independent colleges and universities       

                                                                                

11  receiving awards administered by the department of treasury.  The           

                                                                                

12  audits shall be based upon definitions and requirements established by      

                                                                                

13  the Michigan higher education assistance authority, the state budget        

                                                                                

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

                                                                                

15  general shall accept the Free Application for Federal Student Aid           

                                                                                

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

                                                                                

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

                                                                                

18  appropriations committees and state budget director by May 1, 2005.         

                                                                                

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

                                                                                

20  financial aid programs shall be paid out of the state treasury and          

                                                                                

21  shall be distributed to the respective institutions under a quarterly       

                                                                                

22  payment system as follows:                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1   state's fourth fiscal quarter.                                              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   state's third fiscal quarter.                                               

                                                                                

9       (d) For the dental clinics grant program and Robert C. Byrd honors          

                                                                                

10  scholarship program, 50% shall be paid at the beginning of the state's      

                                                                                

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

                                                                                

12  fiscal quarter.                                                             

                                                                                

13      Sec. 309.  The Michigan higher education assistance authority               

                                                                                

14  shall determine the needs analysis criteria for students to qualify         

                                                                                

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

                                                                                

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

                                                                                

17  into consideration when determining the amount of the award.                

                                                                                

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

                                                                                

19  incentive program/high school completion program shall be distributed       

                                                                                

20  as provided in this section and pursuant to the administrative              

                                                                                

21  procedures for the tuition incentive program/high school completion         

                                                                                

22  program of the department of treasury.                                      

                                                                                

23      (2) As used in this section:                                                

                                                                                

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

                                                                                

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

                                                                                

26  120 term credits, or less, leading to an associate degree or                

                                                                                

27  certificate.                                                                


                                                                                

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

                                                                                

2   assistance program which provides assistance in the third and fourth        

                                                                                

3   year of 4-year degree programs.                                             

                                                                                

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

                                                                                

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

                                                                                

6   thresholds to be eligible for tuition incentive benefits:                   

                                                                                

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

                                                                                

8   following criteria:                                                         

                                                                                

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

                                                                                

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

                                                                                

11  certificate.                                                                

                                                                                

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

                                                                                

13  graduation or GED completion.                                               

                                                                                

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

                                                                                

15  according to institutional criteria.                                        

                                                                                

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

                                                                                

17  semester or 120 term credits at a participating educational                 

                                                                                

18  institution within 4 years of high school graduation or GED                 

                                                                                

19  certificate completion.                                                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

23  term credits.                                                               

                                                                                

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

                                                                                

25  institution.                                                                

                                                                                

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

                                                                                

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


                                                                                

1   financially eligible for the tuition incentive program if that person       

                                                                                

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

                                                                                

3   application.  Certification of eligibility may begin in the sixth           

                                                                                

4   grade.                                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   educational institution.                                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

12  individual student at any participating institution.                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  authorized.                                                                 

                                                                                

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

                                                                                

19  department shall pay lower division resident tuition and mandatory          

                                                                                

20  fees for the current year.                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  academic year.                                                              


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   conditions:                                                                 

                                                                                

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

                                                                                

6   granting 4-year college or university.                                      

                                                                                

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

                                                                                

8   30 months of completion of the phase I requirements.                        

                                                                                

9       (7) The department shall work closely with participating                    

                                                                                

10  institutions to develop an application and eligibility determination        

                                                                                

11  process that will provide the highest level of participation and            

                                                                                

12  ensure that all requirements of the program are met.                        

                                                                                

13      (8) Applications for the tuition incentive program may be approved          

                                                                                

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

                                                                                

15  determination of financial eligibility is made, that determination is       

                                                                                

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

                                                                                

17  conditions.                                                                 

                                                                                

18      (9) Each institution shall ensure that all known available                  

                                                                                

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

                                                                                

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

                                                                                

21  fees.                                                                       

                                                                                

22      (10) The department shall ensure that the tuition incentive                 

                                                                                

23  program is well publicized and that potentially eligible Medicaid           

                                                                                

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

                                                                                

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

                                                                                

26      (11) Any unexpended and unencumbered funds remaining on September           

                                                                                

27  30, 2005 from the amounts appropriated in part 1 for the tuition            


                                                                                

1   incentive program shall not lapse on September 30, 2005, but shall          

                                                                                

2   continue to be available for expenditure for the tuition incentive          

                                                                                

3   program in the fiscal year ending September 30, 2006.                       

                                                                                

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

                                                                                

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

                                                                                

6   independent college and university shall make available to the              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  higher education assistance authority shall administer the nursing          

                                                                                

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

                                                                                

12  390.1189.                                                                   

                                                                                

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

                                                                                

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

                                                                                

15  support dental clinical services provided by its school of dentistry        

                                                                                

16  to low-income residents in southeastern Michigan.                           

                                                                                

                                                                                

                                                                                

17  STATE UNIVERSITIES                                                          

                                                                                

18      Sec. 401.  (1) Included in part 1 is $5,605,992.00 to Wayne State           

                                                                                

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

                                                                                

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

                                                                                

21  psychiatric laboratory and clinical research, training, and treatment       

                                                                                

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

                                                                                

23  denied to any patient who meets established research guidelines for         

                                                                                

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

                                                                                

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

                                                                                

26  medically warranted.                                                        

                                                                                

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


                                                                                

1   to the department of community health by November 1, 2005:                  

                                                                                

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

                                                                                

3   the appropriation described in subsection (1).                              

                                                                                

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

                                                                                

5   training funded by the appropriation.                                       

                                                                                

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

                                                                                

7   to receive psychiatric services funded by the appropriation and a           

                                                                                

8   profile of the services provided.                                           

                                                                                

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

                                                                                

10  any first- and third-party reimbursements.                                  

                                                                                

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

                                                                                

12  and senate fiscal agencies and the state budget director.                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  value and capabilities of the biological station area and Douglas           

                                                                                

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

                                                                                

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

                                                                                

20  research value of Douglas Lake.                                             

                                                                                

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

                                                                                

22  institutional data inventory advisory committee.  The committee shall       

                                                                                

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

                                                                                

24  following members:                                                          

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   universities.  The presidents council shall appoint 1 representative        

                                                                                

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

                                                                                

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

                                                                                

5   enhancing the state higher education database for which funding is          

                                                                                

6   included in part 1.                                                         

                                                                                

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

                                                                                

8   September 30, 2005 to the state budget director, house and senate           

                                                                                

9   appropriations committees, and the house and senate fiscal agencies         

                                                                                

10  information on the activities and effectiveness of the national             

                                                                                

11  charter schools institute for which an appropriation is provided in         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  school academy.                                                             

                                                                                

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

                                                                                

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

                                                                                

18  institute.                                                                  

                                                                                

19      Sec. 426.  It is the legislative intent that private bookstores             

                                                                                

20  that sell textbooks to university students and student governments          

                                                                                

21  that provide a book swap for university students have accurate and          

                                                                                

22  timely access to lists of universities' required textbooks in order to      

                                                                                

23  provide prompt and efficient service for students.  It is further the       

                                                                                

24  legislative intent that each state university allow students who are        

                                                                                

25  on financial aid or are receiving tuition grants to decide where to         

                                                                                

26  purchase their textbooks.                                                   

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   and extension to meet environmental and economic needs.                     

                                                                                

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

                                                                                

8   in consultation with agricultural commodity groups and other                

                                                                                

9   interested parties, shall develop project GREEEN and its program            

                                                                                

10  priorities.                                                                 

                                                                                

11      (3) Not later than September 30, 2005, a report shall be submitted          

                                                                                

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

                                                                                

13  and senate appropriations subcommittees on agriculture and on higher        

                                                                                

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

                                                                                

15  fiscal year regarding project GREEEN projects.  The report shall            

                                                                                

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

                                                                                

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

                                                                                

18      Sec. 436.  (1) The amounts appropriated in part 1 for state                 

                                                                                

19  university tuition restraint incentives shall only be paid to a state       

                                                                                

20  university certifying to the state budget director by June 30, 2004,        

                                                                                

21  that it did not adopt an increase in tuition and fee rates for              

                                                                                

22  resident undergraduate students after December 1, 2003, for the             

                                                                                

23  2003-2004 academic year and that it will not adopt tuition and fee          

                                                                                

24  rate increases for resident undergraduate students for the 2004-2005        

                                                                                

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

                                                                                

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

                                                                                

27  revenue estimating conference.                                              


                                                                                

1       (2) For the purposes of subsection 1, a state university that               

                                                                                

2   adopted an increase in tuition and fee rates for resident                   

                                                                                

3   undergraduate students after December 1, 2003, for the 2003-2004            

                                                                                

4   academic year, but subsequently rebated to its resident undergraduate       

                                                                                

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

                                                                                

6   shall be considered to have not adopted a tuition and fee increase for      

                                                                                

7   the 2003-2004 academic year.                                                

                                                                                

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

                                                                                

9   requirement based on definitions and uniform reporting requirements         

                                                                                

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

                                                                                

11  fiscal agencies, to ensure that a state university receiving an             

                                                                                

12  appropriation under sections 102 through 116 has satisfied the tuition      

                                                                                

13  restraint requirements of this section.                                     

                                                                                

14      (4) If a state university complies with the tuition restraint               

                                                                                

15  requirements described in this section, its state appropriation will        

                                                                                

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

                                                                                

17  2004-2005 fiscal year.                                                      

                                                                                

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

                                                                                

19  Michigan public school employee retirement system (MPSERS)                  

                                                                                

20  stabilization subaccount be used for fiscal year 2004-2005 to provide       

                                                                                

21  at least a $4,900,000.00 subsidy of the payroll contribution rate for       

                                                                                

22  the 7 state universities that have employees in the MPSERS system.          

                                                                                

23      Sec. 440.  All universities shall submit the amount of tuition              

                                                                                

24  and fees to be charged a full-time resident undergraduate student for       

                                                                                

25  academic year 2004-2005 as part of their higher education                   

                                                                                

26  institutional data inventory (HEIDI) data by August 31, 2004.  A            

                                                                                

27  university shall report any revisions to the reported academic year         


                                                                                

1   2004-2005 tuition and fee charges to HEIDI within 15 days of being          

                                                                                

2   adopted.                                                                    

                                                                                

3       Sec. 450.  (1) For the fiscal year ending September 30, 2005, it            

                                                                                

4   is the intent of the legislature that an amount calculated under            

                                                                                

5   subsection (2) be allocated for per-student floor funding from the          

                                                                                

6   general fund/general purpose unreserved balances at the close of the        

                                                                                

7   2003-2004 fiscal year.                                                      

                                                                                

8       (2) The amount allocated under subsection (1) for per-student               

                                                                                

9   floor funding is equal to $3,800.00 per 2002-2003 fiscal-year-equated       

                                                                                

10  student at each university.  The number of 2002-2003                        

                                                                                

11  fiscal-year-equated students at a university is determined by               

                                                                                

12  reference to the higher education institutional data inventory              

                                                                                

13  (HEIDI).                                                                    

                                                                                

14      Sec. 460.  By January 10, 2005, each state institution of higher            

                                                                                

15  education receiving an appropriation under part 1 shall report to the       

                                                                                

16  chairperson of the senate and house appropriations committees, the          

                                                                                

17  state budget director, and the senate and house fiscal agencies             

                                                                                

18  concerning the present condition of facilities for student housing and      

                                                                                

19  the present condition of any housing facilities provided to the             

                                                                                

20  institution's president or chancellor.  The report shall include, but       

                                                                                

21  not be limited to, all of the following:                                    

                                                                                

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

                                                                                

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

                                                                                

24  facilities.                                                                 

                                                                                

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

                                                                                

26  each facility.                                                              

                                                                                

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


                                                                                

1   whether there is adequate capacity to meet demand.                          

                                                                                

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

                                                                                

3   any action being considered to address the shortages.                       

                                                                                

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

                                                                                

5   the following:                                                              

                                                                                

6                                                                                (i) The type of residence, if any, provided to the institution's                    

                                                                                

7   president or chancellor.                                                    

                                                                                

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

                                                                                

9   including both the land and the structure.                                  

                                                                                

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

                                                                                

11  residence for the immediately preceding 5 years.                            

                                                                                

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

                                                                                

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

                                                                                

14  chancellor, including fringe benefits and bonuses.                          

                                                                                

                                                                                

                                                                                

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

                                                                                

16  PROGRAMS                                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  increase the pool of minority candidates pursuing faculty teaching          

                                                                                

21  careers in postsecondary education.  Each university shall apply the        

                                                                                

22  percentage change applicable to every university in the calculation of      

                                                                                

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

                                                                                

24  future faculty program.                                                     

                                                                                

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

                                                                                

26  manner prescribed by the Michigan department of labor and economic          


                                                                                

1   growth.  The Michigan department of labor and economic growth shall         

                                                                                

2   use a good faith effort standard to evaluate whether a fellowship is        

                                                                                

3   in default.                                                                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   introduce schoolchildren underrepresented in postsecondary education        

                                                                                

8   to the potential of a college education.                                    

                                                                                

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

                                                                                

10  budget of equal contributions from this program, the participating          

                                                                                

11  public university, the participating school district, and the               

                                                                                

12  participating independent degree granting college.  College day funds       

                                                                                

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

                                                                                

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

                                                                                

15  university shall apply the percentage change applicable to every            

                                                                                

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

                                                                                

17  amount of funds allocated to the college day program.                       

                                                                                

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

                                                                                

19  manner prescribed by the Michigan department of labor and economic          

                                                                                

20  growth.                                                                     

                                                                                

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

                                                                                

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

                                                                                

23  services program for developing academically and economically               

                                                                                

24  disadvantaged student retention programs for 4-year public and              

                                                                                

25  independent educational institutions in this state.                         

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   of labor and economic growth.                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   universities and public community colleges, which is intended to            

                                                                                

8   increase the number of academically and economically disadvantaged          

                                                                                

9   students who transfer from community colleges into baccalaureate            

                                                                                

10  programs.                                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  basis.                                                                      

                                                                                

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

                                                                                

17  of labor and economic growth.                                               

                                                                                

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

                                                                                

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

                                                                                

20  Cesar Chavez - Rosa Parks visiting professors program which is              

                                                                                

21  intended to increase the number of underrepresented minority                

                                                                                

22  instructors in the classroom and provide role models for                    

                                                                                

23  underrepresented minority students.                                         

                                                                                

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

                                                                                

25  of labor and economic growth.                                               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   the baccalaureate level.                                                    

                                                                                

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

                                                                                

6   teacher education institution in a manner prescribed by the Michigan        

                                                                                

7   department of labor and economic growth.                                    

                                                                                

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

                                                                                

9   to use student support services funding in coordination with the            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  department of labor and economic growth by April 15, 2005 as to             

                                                                                

14  whether it will expend by the end of its fiscal year the funds              

                                                                                

15  received under section 503, 504, or 506.  Notwithstanding the award         

                                                                                

16  limitations in sections 503 and 504, the amount of funding reported as      

                                                                                

17  not being expended will be reallocated to the institutions that intend      

                                                                                

18  to expend all funding received under section 503, 504, or 506.              

                                                                                

                                                                                

                                                                                

19  STUDENT PERFORMANCE REPORTING                                               

                                                                                

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

                                                                                

21  universities, the state universities shall systematically inform            

                                                                                

22  Michigan high schools regarding the academic status of students from        

                                                                                

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

                                                                                

24  state universities of Michigan in cooperation with the Michigan             

                                                                                

25  association of secondary school principals.                                 

                                                                                

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


                                                                                

1   state universities about the use of information received under this         

                                                                                

2   section in a manner prescribed by the Michigan association of               

                                                                                

3   secondary school principals in cooperation with the presidents              

                                                                                

4   council, state universities of Michigan.                                    

                                                                                

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

                                                                                

6   universities, the state universities shall inform Michigan community        

                                                                                

7   colleges regarding the academic status of community college transfer        

                                                                                

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

                                                                                

9   universities of Michigan in cooperation with the Michigan community         

                                                                                

10  college association.                                                        

                                                                                

                                                                                

                                                                                

11  GENERAL REPORTS AND AUDITS                                                  

                                                                                

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

                                                                                

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

                                                                                

14  public universities and may perform audits of selected public               

                                                                                

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

                                                                                

16  based upon the definitions, requirements, and uniform reporting             

                                                                                

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

                                                                                

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

                                                                                

19  findings to the house and senate appropriations committees and the          

                                                                                

20  state budget director no later than July 1, 2005.                           

                                                                                

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

                                                                                

22      (a) Student credit hours generated through instructional activity           

                                                                                

23  by faculty or staff in classrooms located outside Michigan, with the        

                                                                                

24  exception of instructional activity related to study-abroad programs.       

                                                                                

25      (b) Student credit hours generated through distance learning                

                                                                                

26  instruction for students not paying the institution's resident tuition      


                                                                                

1   rate.                                                                       

                                                                                

2       (c) Student credit hours generated through credit by examination.           

                                                                                

3       (d) Student credit hours generated through inmate prison programs           

                                                                                

4   regardless of teaching location.                                            

                                                                                

5       (e) Student credit hours generated in new degree programs after             

                                                                                

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

                                                                                

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

                                                                                

8   existing core programs that do all of the following:                        

                                                                                

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

                                                                                

10  existing programs.                                                          

                                                                                

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

                                                                                

12  mission.                                                                    

                                                                                

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

                                                                                

14  institution.                                                                

                                                                                

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

                                                                                

16  institution is currently authorized to grant within that discipline or      

                                                                                

17  field.                                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  operation.                                                                  

                                                                                

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

                                                                                

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

                                                                                

24  universities for compliance with the definitions approved by the HEIDI      

                                                                                

25  advisory committee for the HEIDI database.                                  

                                                                                

26      (4) "Distance learning instruction" as used in subsection (2)               

                                                                                

27  means instruction that occurs in other than a traditional classroom         


                                                                                

1   setting where the student and instructor are in the same physical           

                                                                                

2   location and for which a student receives course credits and is             

                                                                                

3   charged tuition and fees.  Examples of distance learning instruction        

                                                                                

4   are instruction delivered solely through the Internet, cable                

                                                                                

5   television, teleconference, or mail.                                        

                                                                                

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

                                                                                

7   higher education receiving an appropriation under this act shall            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  to achieve compliance.                                                      

                                                                                

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

                                                                                

17  the institution or implemented by the institution as modified.              

                                                                                

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

                                                                                

19  auditor general or of implementing a recommendation as modified.            

                                                                                

20      Sec. 708.  The auditor general may conduct performance audits of            

                                                                                

21  state universities during the fiscal year ending September 30, 2005 as      

                                                                                

22  the auditor general considers necessary.                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  prepared pursuant to the public information reporting requirements          

                                                                                

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


                                                                                

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

                                                                                

2   104 Stat. 2381, available in electronic Internet format on their            

                                                                                

3   websites.                                                                   

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

4                                   PART 2A                                     

                                                                                

5       PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2003-2004          

                                                                                

6   GENERAL SECTIONS                                                            

                                                                                

7       Sec. 1201.  (1) A state university certifying to the state budget           

                                                                                

8   director by June 30, 2004 that it did not adopt an increase in tuition      

                                                                                

9   and fee rates for resident undergraduate students after December 1,         

                                                                                

10  2003 for the 2003-2004 academic year and that it will not adopt             

                                                                                

11  tuition and fee rate increases for resident undergraduate students for      

                                                                                

12  the 2004-2005 academic year that exceed the projected 2005 increase in      

                                                                                

13  the Detroit consumer price index as determined at the January 14, 2004      

                                                                                

14  consensus revenue estimating conference shall be paid in the fiscal         

                                                                                

15  year ending September 30, 2004 from state general fund/general purpose      

                                                                                

16  revenues an additional state appropriation as follows:                      

                                                                                

17    Central Michigan University......................... $       2,446,300    

                                                                                

18    Eastern Michigan University.........................         2,366,200    

                                                                                

19    Ferris State University.............................         1,499,000    

                                                                                

20    Grand Valley State University.......................         1,772,600    

                                                                                

21    Lake Superior State University......................           385,300    

                                                                                

22    Michigan State University...........................         8,801,500    

                                                                                

23    Michigan Technological University...................         1,491,500    

                                                                                

24    Northern Michigan University........................         1,404,300    

                                                                                

25    Oakland University..................................         1,472,600    


                                                                                

1     Saginaw Valley State University.....................           800,200    

                                                                                

2     University of Michigan - Ann Arbor..................         9,816,200    

                                                                                

3     University of Michigan - Dearborn...................           755,800    

                                                                                

4    University of Michigan - Flint......................           649,800    

                                                                                

5     Wayne State University..............................         6,848,400    

                                                                                

6     Western Michigan University.........................         3,393,300    

                                                                                

7     Total............................................... $      43,903,000    

                                                                                

8       (2) For the purposes of subsection (1), a state university that             

                                                                                

9   adopted an increase in tuition and fee rates for resident                   

                                                                                

10  undergraduate students after December 1, 2003, for the 2003-2004            

                                                                                

11  academic year, but subsequently rebated to its resident undergraduate       

                                                                                

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

                                                                                

13  shall be considered to have not adopted a tuition and fee increase for      

                                                                                

14  the 2003-2004 academic year.                                                

                                                                                

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

                                                                                

16  requirement based on definitions and uniform reporting requirements         

                                                                                

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

                                                                                

18  fiscal agencies, to ensure that a state university receiving an             

                                                                                

19  appropriation under this section has satisfied its tuition restraint        

                                                                                

20  requirements.                                                               

                                                                                

21      Sec. 1302.  It is the intent of the legislature that Michigan               

                                                                                

22  competitive scholarship award applicants and Michigan tuition grant         

                                                                                

23  applicants be notified not later than June 30, 2004 of the status of        

                                                                                

24  their awards.                                                               

                                                                                

                                                                                

                                                                                

25  REPEALERS                                                                   

                                                                                

26      Enacting section 1.  Section 452 of 2003 PA 237 is repealed.