HB-4001, As Passed Senate, November 9, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4001

     A bill to establish an undergraduate tuition grant program for

children of certain deceased or disabled members of the armed

forces of the United States; to provide for the administration of

the tuition grant program; to prescribe certain powers and duties

of certain state officers, agencies, and departments; and to repeal

acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"children of veterans tuition grant act".

     Sec. 2. As used in this act:

     (a) "Academic year" means the period from August 1 of a

calendar year to July 31 of the next calendar year.

     (b) "Authority" means the Michigan higher education assistance

authority created by 1960 PA 77, MCL 390.951 to 390.961.

     (c) "Eligible institution" means a degree or certificate

granting public or independent nonprofit college or university,

junior college, or community college in this state.

     (d) "Eligible tuition" means the tuition charged by an

eligible institution for an undergraduate class.

     (e) "Full-time student" means a student enrolled in at least

12 credit hours in an academic semester or its equivalent number of

credit hours in a term or quarter, as determined by the authority.

     (f) "Michigan veteran" means an individual whose legal

residence immediately before entering military service was in this

state and who does not later reside outside of this state for a

period of more than 2 years, or an individual who establishes legal

residency in this state after entering military service.

     (g) "Part-time student" means a student who is not a full-time

student, but is enrolled in at least the number of credit hours in

a semester, term, or quarter that the authority defines as a 1/2-

time course of study.

     (h) "Undergraduate class" means a class or course that

provides a student with academic credit applicable toward a

bachelor or associate degree from an eligible institution.

     Sec. 3. The children of veterans tuition grant program is

created, to be administered by the authority. The authority shall

do all of the following:

     (a) Provide tuition grants to eligible students under this

act.

     (b) Establish an application form and application timetable

for eligible students to apply for tuition grants under this act.

     (c) Within 120 days after the effective date of this act,

notify recipients of benefits under 1935 PA 245, MCL 35.111 to

35.112, of the repeal of that act and the availability of tuition

grants under this act.

     (d) Promulgate rules to implement and administer this act

under the administrative procedures act of 1969, 1969 PA 306, MCL

24.201 to 24.328. The rules may include additional standards of

eligibility for students to receive tuition grants under this act.

     Sec. 4. (1) Subject to subsection (3), beginning in the 2005-

2006 academic year, the authority shall provide a tuition grant in

an amount determined under subsection (2) to any student who meets

all of the following requirements:

     (a) Is enrolled in that academic year as a full-time or part-

time student in undergraduate classes at an eligible institution.

     (b) Is a United States citizen or permanent resident of the

United States.

     (c) Is more than 16 and less than 26 years of age.

     (d) Is the natural or adopted child of a Michigan veteran and

the Michigan veteran meets or met any of the following:

     (i) He or she was killed in action or died from another cause

while serving in a war or war condition in which the United States

was or is a participant.

     (ii) The United States department of veterans affairs has

determined that he or she died or is totally and permanently

disabled as a result of a service-connected illness or injury.

     (iii) The United States department of veterans affairs has

determined he or she was permanently and totally disabled as a

result of a service-connected illness or injury before death, and

he or she died from any cause.

     (iv) He or she is officially listed by the United States

government as missing in action in a foreign country.

     (e) Has resided continuously in this state for the 12 months

immediately preceding the date of his or her application and is not

a resident of any other state.

     (f) Has maintained a cumulative grade point average of at

least 2.25 in any undergraduate classes he or she completed at any

eligible institution in any previous academic years.

     (g) Is in compliance with this act and the rules promulgated

under this act.

     (h) Has not been convicted of a felony involving an assault,

physical injury, or death.

     (i) Meets any other standards established in rules promulgated

by the authority under section 3.

     (2) Subject to subsection (3), the amount of a tuition grant

described in subsection (1) in an academic year for a full-time

student is $2,800.00, or an amount equal to all of the student's

eligible tuition in that academic year, whichever is less. The

amount of the tuition grant for a part-time student is 1/2 of the

amount of a full-time student as determined by the authority. The

authority may reduce the amount of the tuition grants in any

academic year on a pro rata basis to reflect the amount then

available for the tuition grant program, but only after providing

notice to the legislature under section 6(2).

     (3) If a student receives tuition waiver assistance in the

2005-2006 academic year under the tuition waiver program provided

in 1935 PA 245, MCL 35.111 to 35.112, is a person described in

section 1(3) of 1935 PA 245, MCL 35.111, and meets the eligibility

requirements of this act, the amount of the tuition grant under

this act for that student in the 2005-2006 academic year shall be

reduced by the amount of tuition waiver assistance that student

received under 1935 PA 245.

     (4) An individual shall not receive tuition grant assistance

under this act or tuition waiver assistance under 1935 PA 245, MCL

35.111 to 35.112, or both, in more than 4 academic years.

     Sec. 5. (1) The department of treasury shall establish and

administer a restricted account in the general fund for the

children of veterans tuition grant program. The department of

treasury shall credit to the account money appropriated or received

from any source, including, but not limited to, amounts

appropriated under section 437 of the income tax act of 1967, 1967

PA 281, MCL 206.437, and earnings on the account. The department of

treasury shall use the money in the account only to provide money

to the authority for tuition grants under this act.

     (2) Money in the account described in subsection (1) at the

end of a fiscal year shall not revert to the general fund but shall

be carried over in the account to the next fiscal year.

     Sec. 6. (1) By December 1 of each year, the authority shall

annually submit a report to the state budget director, the house

and senate appropriation subcommittees on higher education and

community colleges, and the house and senate fiscal agencies for

the preceding fiscal year on the children of veterans tuition grant

program. The report shall include, but is not limited to, the total

number of tuition grants paid by the authority in the preceding

fiscal year, the total dollar amount of those tuition grants, and

the number of students receiving grants and the total amount of

those grants at each eligible institution.

     (2) In any academic year, if the authority estimates that

insufficient money will be available in that academic year from the

account established in section 5 to pay a maximum grant under

section 4(2) for a full-time student of $2,800.00, the authority

shall immediately report to the house and senate appropriations

subcommittees on higher education and community colleges, the house

and senate fiscal agencies, and the state budget director,

regarding the estimated amount of additional money necessary to

fund scholarships for all eligible students in that academic year

at the maximum grant amounts under section 4(2).

     Enacting section 1. 1935 PA 245, MCL 35.111 to 35.112, is

repealed effective January 1, 2006.

     Enacting section 2. This act does not take effect unless all

of the following bills of the 93rd Legislature are enacted into

law:

     (a) House Bill No. 4002.

     (b) House Bill No. 5091.