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SB-1335, As Passed House, December 7, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1335

A bill to provide for the administration of the Michigan

promise grant program; to provide for the powers and duties of

certain state officers and entities; 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

"Michigan promise grant act".

Sec. 2. As used in this act:

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

calendar year to August 31 of the next calendar year.

(b) "Approved postsecondary educational institution" means any

of the following:

(i) A public or private college or university, junior college,

or community college that grants degrees or certificates and is

located in this state.

(ii) A postsecondary educational institution, other than an

educational institution described in subparagraph (i), that is

located in this state, grants degrees, certificates, or other

recognized credentials, and is designated by the department as an

approved postsecondary educational institution.

(iii) A service academy.

following:

(i) Fifty to 60 minutes of class, lecture, or recitation in a

60-minute period.

(ii) Fifty to 60 minutes of faculty-supervised laboratory work,

shop training, or internship in a 60-minute period.

(iii) Sixty minutes of preparation in a correspondence course.

(d) "Cumulative grade point average" means the weighted mean

value of the courses considered by an approved postsecondary

educational institution in determining whether to award a student

an associate's degree or a 2-year certificate of completion in a

vocational training program, whether the student has completed a

comparable vocational education program, or whether the student

has completed 50% or more of the academic requirements for the

award of a bachelor's degree, including any courses completed at

another approved postsecondary educational institution if the

student transfers the credits for those courses to the approved

postsecondary educational institution making that determination.

(e) "Department" means the department of treasury.

(f) "Fiscal year" means a fiscal year of this state. A fiscal

year begins on October 1 of a calendar year and ends on September

30 of the next calendar year.

(g) "High school graduate" means an individual who has

received a high school diploma from a high school in this state or

passed the general educational development (GED) diploma test or

any other high school graduate equivalency examination approved by

the state board of education.

(h) "Michigan promise grant" means a grant awarded by the

department under this act.

(i) "Qualifying score" means a score in a reading, writing,

mathematics, or science component of a state assessment test that

has been determined by the superintendent of public instruction to

indicate readiness to enroll in a course in that subject area in an

approved postsecondary educational institution.

(j) "Service academy" means the United States military

academy, United States naval academy, United States air force

academy, United States coast guard academy, or United States

merchant marine academy.

(k) "State assessment test" means the Michigan merit

examination described in section 1279g of the revised school code,

1976 PA 451, MCL 380.1279g, and section 104b of the state school

aid act of 1979, 1979 PA 94, MCL 388.1704b, or any other test

administered by the department of education to students in grades

11 and 12 to assure state compliance with the federal no child left

behind act of 2001, Public Law 107-110.

(l) "Trust fund" means the Michigan merit award trust fund

established in section 9 of the Michigan trust fund act, 2000 PA

489, MCL 12.259.

Sec. 3. By April 1 of each year, the department shall submit a

report on its activities under this act to the governor and to the

standing committees of the senate and house of representatives with

primary jurisdiction over higher education issues. The report shall

contain all of the following information:

(a) The number of Michigan promise grants and the amount of

Michigan promise grant money paid by the department in the

immediately preceding fiscal year.

(b) A list of the number of Michigan promise grants and the

amount of Michigan promise grant money paid in the immediately

preceding fiscal year at each approved postsecondary educational

institution.

Sec. 4. (1) The Michigan promise grant program is established.

The department shall provide Michigan promise grants under this act

from the trust fund and administer the Michigan promise grant

program.

(2) Subject to subsection (3), each student who becomes a high

school graduate in or after the 2006-2007 academic year is eligible

for the award of a Michigan promise grant in an amount determined

under section 5 or 6.

(3) In addition to the requirements set forth in subsection

(2), the department must find that a student meets all of the

following eligibility requirements to award the student a Michigan

promise grant under this act:

(a) The department has received a completed application for

payment as described in section 7(1), including the certification

described in section 7(2) or (3), if applicable, on or before the

deadline established by the department.

(b) The student is a high school graduate and a resident of

this state.

(i) For a grant under section 5, the student was awarded an

associate's degree or a 2-year certificate of completion in a

vocational training program at an approved postsecondary

educational institution, completed a comparable vocational

education program approved by the department at an approved

postsecondary educational institution, or completed 50% or more of

the academic requirements for the award of a bachelor's degree at

an approved postsecondary educational institution within 4 years of

his or her initial enrollment in an approved postsecondary

educational institution and meets 1 of the following:

(A) Has a cumulative grade point average of at least 2.5.

(B) If the student completed a vocational education program

that does not record grades or grade point averages for its

students, has successfully completed that program.

(ii) For a grant under section 6, the student received a

qualifying score in each of the reading, writing, mathematics, and

science components of the state assessment test, and for each

student who becomes a high school graduate in or after the 2010-

2011 academic year, successfully completes at least 3 credits in

mathematics as described in section 1278a(1)(a)(i) of the revised

school code, 1976 PA 451, MCL 380.1278a, and 3 credits in science

as described in section 1278b(1)(b) of the revised school code,

1976 PA 451, MCL 380.1278b.

(d) The student took the state assessment test.

(e) The student enrolled in an approved postsecondary

educational institution within 2 years after he or she became a

high school graduate. The department shall extend the 2-year period

if the student becomes a member of the United States armed forces

or peace corps during the 2-year period.

(f) The student did not previously receive a grant under this

act or scholarship money under the Michigan merit award scholarship

act, 1999 PA 94, MCL 390.1451 to 390.1459.

(g) The student meets any additional eligibility requirements

established by the department.

Sec. 5. (1) Subject to proration under subsection (2) and

adjustment under subsection (3), a student who meets the

eligibility requirement of section 4(3)(c)(i) and the other

applicable eligibility requirements under section 4 shall receive a

Michigan promise grant in the amount of $4,000.00.

(2) If a student satisfies the eligibility requirement

contained in section 4(3)(c) by completing a vocational training

program that as determined by the department generally requires

less than 2 years or fewer than 1,800 clock hours, as applicable,

to complete, the student shall receive a prorated amount of the

amount described in subsection (1) that reflects the number of

clock hours necessary to complete the program, as determined by the

department.

(3) If in any fiscal year the department determines that the

amount appropriated by the legislature for the payment of Michigan

promise grants is not sufficient to pay each eligible student the

Michigan promise grant amount required under this section for an

academic year, the department shall adjust the amount of Michigan

promise grants paid under this section by prorating the amounts as

necessary to reflect the available resources and amounts

appropriated in that fiscal year. The department shall notify the

governor, the speaker of the house of representatives, and the

majority leader of the senate in writing at least 30 days before

implementing a proration under this subsection.

Sec. 6. (1) Subject to proration under subsection (3) and

adjustment under subsection (4), a student who meets the

eligibility requirement of section 4(3)(c)(ii) and the other

applicable eligibility requirements under section 4 and this

section shall receive a Michigan promise grant in the amount of

$4,000.00.

(2) Except for a student who is enrolled in a program

described in subsection (3), the department shall pay a grant under

subsection (1) as follows:

(a) One thousand dollars paid in the student's first academic

year of enrollment at an approved postsecondary educational

institution.

(b) One thousand dollars paid in the student's second academic

year of enrollment at an approved postsecondary educational

institution.

of 2 academic years of enrollment at an approved postsecondary

educational institution. However, the student is not eligible for

this installment, and forfeits any remaining grant amount to which

he or she is otherwise entitled under this act, unless the student

earned an associate's degree, earned a 2-year certificate of

completion in a vocational education program, completed a

comparable vocational training program approved by the department,

or completed 50% or more of the academic requirements for the award

of a bachelor's degree at an approved postsecondary educational

institution within 4 years of his or her initial enrollment in that

institution and meets 1 of the following:

(i) Has a cumulative grade point average of at least 2.5.

(ii) If the student completed a vocational education program

that does not record grades or grade point averages for its

students, has successfully completed that program.

(3) Subject to adjustment under subsection (4), a student who

meets the eligibility requirement of section 4(3)(c)(ii) and the

other applicable eligibility requirements under section 4 and this

section, and who is enrolled in a vocational training program that

as determined by the department generally requires less than 2

years or fewer than 1,800 clock hours, as applicable, to complete,

shall receive a prorated amount of the amount described in

subsection (1) determined by the department to reflect the number

of clock hours necessary to complete the program.

(4) If in any fiscal year the department determines that the

amount appropriated by the legislature for the payment of Michigan

promise grants under this act is not sufficient to pay each

eligible student the amount required under this section for the

academic year, the department shall adjust the Michigan promise

grant amounts paid under this section by prorating the amounts as

necessary to reflect the available resources and amounts

appropriated in that fiscal year. The department shall notify the

governor, the speaker of the house of representatives, and the

majority leader of the senate in writing at least 30 days before

implementing a proration under this subsection.

Sec. 7. (1) The department shall determine the manner and form

of application to receive a Michigan promise grant under section 5

or a grant installment under section 6.

(2) A student shall include a written certification to the

department in his or her application to receive a Michigan promise

grant under section 5 that contains both of the following:

(a) His or her certification that he or she was awarded an

associate's degree or a 2-year certificate of completion in a

vocational education program, completed a comparable vocational

training program approved by the department, or completed 50% or

more of the academic requirements in a bachelor's degree program at

an approved postsecondary educational institution.

(b) The name of the approved postsecondary educational

institution at which the student was awarded the associate's degree

or 2-year certificate of completion in a vocational education

program, completed the comparable vocational training program

approved by the department, or completed 50% or more of the

academic requirements in a bachelor's degree program and the name

of any other approved postsecondary educational institution the

student attended if credits from that institution were transferred

to and considered by the approved postsecondary educational

institution in determining whether to award the student the

associate's degree or 2-year certificate of completion in a

vocational training program, whether the student had completed a

comparable vocational education program, or whether the student had

completed 50% or more of the academic requirements for the award of

a bachelor's degree.

(3) A student shall include a written certification to the

department in his or her application to receive a Michigan promise

grant installment payment under section 6 that contains both of the

following:

(a) His or her certification that he or she meets the

requirements of section 4(3)(c)(ii).

(b) His or her certification that he or she is enrolled in an

approved postsecondary educational institution and the name of the

approved postsecondary educational institution.

(4) An approved postsecondary educational institution shall

not consider a Michigan promise grant in determining a student's

eligibility for a financial aid program administered by this state.

It is the intent of the legislature that an approved postsecondary

educational institution does not reduce other institutionally

funded student aid for which a student is eligible because of the

student's receipt of or eligibility for a Michigan promise grant.

Sec. 8. (1) The department shall pay a Michigan promise grant

under section 5 or a grant installment under section 6 to an

approved postsecondary educational institution on the student's

Senate Bill No. 1335 (H-4) as amended December 7, 2006

behalf, according to a payment procedure established by the

department.

(2) An approved postsecondary educational institution shall

apply money received under subsection (1) on a student's behalf to

the student's outstanding indebtedness, if any, and [pay the remaining

balance as follows:

(a) Unless subdivision (b) applies, to the student.

(b) If the money received by the institution under this subsection is a grant installment under section 6(2)(a) or (b) and the student elects to leave an approved postsecondary educational institution without completing the classes in which he or she enrolled, to the department. The student has no further right to any money returned to the department under this subdivision.

(3) Subsection (2)] shall not be

considered as creating an obligation on the part of an approved

postsecondary educational institution to loan or advance money to a

student for the payment of tuition, fees, or other costs or

expenses incurred by the student at that institution.

[(4)] The department may promulgate rules to implement and

administer this act, including, but not limited to, 1 or more of

the following:

(a) Rules establishing the department's administrative

procedures for the Michigan promise grant program.

(b) Rules governing the qualification requirements for or the

award of Michigan promise grants under this act.

of ineligibility for a Michigan promise grant.

(d) Rules establishing what information or reports a student

or an approved postsecondary educational institution must provide

to establish eligibility and when that information or those reports

must be provided.

(e) Rules prescribing the reports to be made by a student

awarded a Michigan promise grant and by an approved postsecondary

educational institution to which a Michigan promise grant is paid.

Enacting section 1. The Michigan merit award scholarship act,