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SB-1082, As Passed Senate, March 28, 2006

SUBSTITUTE FOR

SENATE BILL NO. 1082

A bill to make appropriations for community colleges and

certain state purposes related to education for the fiscal year

ending September 30, 2007; to provide for the expenditure of those

appropriations; to establish or continue certain funds, programs,

and categories; and to prescribe the powers and duties of certain

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

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

amounts listed in this part are appropriated for community colleges

and certain other state purposes relating to education for the

fiscal year ending September 30, 2007, from the funds indicated in

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

part:

COMMUNITY COLLEGES

APPROPRIATION SUMMARY:

GROSS APPROPRIATION.................................... $ 287,129,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ 287,129,400

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

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

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

Total state restricted revenues........................ 43,900,000

State general fund/general purpose..................... $ 243,229,400

Sec. 102. OPERATIONS

Alpena Community College............................... $ 4,862,300

Bay de Noc Community College........................... 4,731,500

Delta College.......................................... 13,178,700

Glen Oaks Community College............................ 2,212,700

Gogebic Community College.............................. 4,013,500

Grand Rapids Community College......................... 16,554,300

Henry Ford Community College........................... 20,153,800

Jackson Community College.............................. 11,143,800

Kalamazoo Valley Community College..................... 11,413,600

Kellogg Community College.............................. 8,954,100

Kirtland Community College............................. 2,721,700

Lake Michigan College.................................. 4,824,800

Lansing Community College.............................. 28,626,700

Macomb Community College............................... 30,558,200

Mid Michigan Community College......................... 4,099,100

Monroe County Community College........................ 3,970,200

Montcalm Community College............................. 2,864,800

C.S. Mott Community College............................ 14,460,300

Muskegon Community College............................. 8,223,000

North Central Michigan College......................... 2,786,300

Northwestern Michigan College.......................... 8,386,900

Oakland Community College.............................. 19,293,900

St. Clair County Community College..................... 6,468,000

Schoolcraft College.................................... 11,295,400

Southwestern Michigan College.......................... 6,066,800

Washtenaw Community College............................ 11,553,400

Wayne County Community College......................... 15,072,600

West Shore Community College........................... 2,116,300

GROSS APPROPRIATION.................................... $ 280,606,700

Appropriated from:

State school aid fund.................................. 43,900,000

State general fund/general purpose..................... $ 236,706,700

Sec. 104. GRANTS

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

Renaissance zone tax reimbursement funding............. 3,200,000

GROSS APPROPRIATION.................................... $ 6,522,700

Appropriated from:

State general fund/general purpose..................... $ 6,522,700

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

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

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2006-2007 is $287,129,400.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2006-2007 is $287,129,400.00. The

itemized statement below identifies appropriations from which

spending to local units of government will occur:

Operations............................................. $ 280,606,700

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

Renaissance zone tax reimbursement program............. 3,200,000

TOTAL.................................................. $ 287,129,400

Sec. 202. The appropriations authorized under this act are

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

to 18.1594.

Sec. 203. Unless otherwise specified, a community college

receiving appropriations in part 1 and the department of labor and

economic growth shall use the Internet to fulfill the reporting

requirements of this act. This requirement may include transmission

of reports via electronic mail to the recipients identified for

each reporting requirement or it may include placement of reports

on an Internet or Intranet site.

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

work collaboratively with community colleges to develop an

accelerated entrepreneurship curriculum, including an associate

degree, to provide students with the skills and knowledge needed

for creating their own businesses. The department shall submit a

report on the results of its work with the community colleges under

this section to the house and senate appropriations subcommittees

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

the state budget director by February 1, 2007.

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

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

competitively priced and comparable quality American goods or

services, or both, are available. Preference should be given to

goods or services, or both, manufactured or provided by Michigan

businesses if they are competitively priced and of comparable

quality.

Sec. 210. The principal executive officer of each community

college receiving appropriations in part 1 shall take all

reasonable steps to ensure businesses in deprived and depressed

communities compete for and perform contracts to provide services

or supplies, or both. Each principal executive officer shall

strongly encourage firms with which the community college contracts

to subcontract with certified businesses in depressed and deprived

communities for services or supplies, or both.

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

appropriated for community colleges with fiscal years ending June

30, 2007, and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

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

2006. Each community college shall accrue its July and August 2007

payments to its institutional fiscal year ending June 30, 2007.

However, if a community college fails to submit all verified

Michigan community colleges activities classification structure

data for school year 2005-2006 to the department of labor and

economic growth by November 1, 2006, the monthly installments shall

be withheld from that community college until those data are

submitted. The amount from the money appropriated in part 1 that is

allocated to address the special needs of at-risk students shall be

paid in full by the state treasurer by November 1, 2006. The amount

distributed to a community college or department shall not exceed

the net state allocation authorized by this act.

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

appropriated shall be used solely for the respective purposes

stated in this act. The money appropriated by this act may be used

to match the cost of any available programs under the Carl D.

Perkins vocational and applied technology education act of 1998, 20

USC 2301 to 2415, including local administration.

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

contributions to the Michigan public school employees' retirement

system created by the public school employees retirement act of

1979, 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of

receiving money appropriated under this act.

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

contribution to more than 1 retirement fund providing benefits for

an employee.

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

pay for the construction or maintenance of a self-liquidating

project. Any construction, renovation, or other capital outlay

project that exceeds $1,000,000.00 requires the approval of a use

and finance statement by the joint capital outlay subcommittee

(JCOS) pursuant to JCOS policy.

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

legislature restore the infrastructure, technology, equipment, and

maintenance (ITEM) funding provided in previous fiscal years.

Sec. 224. Recognizing the critical importance of education in

strengthening Michigan's workforce, the legislature encourages the

state's public community colleges to explore ways of increasing

collaboration and cooperation with 4-year universities,

particularly in the areas related to training, instruction, and

program articulation.

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

appropriated under this act to provide health care coverage for

community college employees or their dependents for abortion

services, other than for spontaneous abortion or to prevent the

death of the woman upon whom the abortion is performed. A community

college shall not approve a collective bargaining agreement or

enter into any other employment contract that includes health care

coverage for abortion services other than spontaneous abortion or

to prevent the death of the woman upon whom the abortion is

performed.

(2) If a community college expends money appropriated under

this act in violation of subsection (1), the community college

shall repay to this state an amount equal to the amount of money

spent in violation of subsection (1).

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

551.1, 551.3, and 551.4, and section 1 of 1939 PA 168, MCL 551.271,

the legislature intends that a community college receiving funding

under this act shall not use part 1 money to extend employee

benefits to the unmarried partners of the community college's

employees except for pre- and post-natal costs.

Sec. 234. Community colleges shall do the following:

(a) Undertake active measures to promote equal opportunities,

eliminate discrimination, and foster a diverse student body and

administration among all people including, but not limited to,

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

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

discriminate.

Sec. 239. The legislature intends that any executive or

legislative proposal or action, subsequent to the adoption of a

recommendation for appropriations for community colleges for the

fiscal year ending September 30, 2007, to increase appropriations

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

original recommendation for the fiscal year ending September 30,

2007, will be accompanied by a similar action or proposal for

state-supported community colleges.

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

the economic development job training grant money be awarded to

community colleges or a consortium of community colleges and other

eligible applicants as provided in the budget that appropriated the

Senate Bill No. 1082 as amended March 28, 2006

economic development job training grant money. Further, the

legislature intends that at least a portion of the total

appropriation for economic development job training grants be

awarded to community colleges that offer certified programs that

are bureau of apprenticeship training certified. The Michigan

economic development corporation shall report by November 1 of each

year to the house and senate appropriations subcommittees on

community colleges and the senate and house fiscal agencies the

names of the community colleges awarded grant money under this

section, the amount of the grants awarded, and the percentage

awarded to bureau of apprenticeship training certified programs.

Sec. 241. It is the intent of the legislature that community

colleges expand their current nursing education programs and

increase nursing education program enrollments. This expansion may

include, but is not limited to, creating partnerships with

hospitals and other health care providers, expanding the focus and

utilization of the nursing scholarship program, and redirecting

existing institutional resources toward nursing education programs.

<<Sec. 242. It is the intent of the legislature that the Michigan community college association, the legislature, and other interested parties, continue the discussion regarding payments in lieu of taxes, especially for those community college districts that contain significant portions of nontaxable land.>>

STATE AID - OPERATIONS

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

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

for Uniform Financial Reporting, Michigan Public Community

Colleges, which shall be the basis for reporting data, and the 2003

Activities Classification Structure Manual for Michigan Community

Colleges, which shall be used to document financial needs of the

community colleges.

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

enrollment data reported for determining state aid under this act

any student credit hours or student contact hours for a student

incarcerated in a Michigan penal institution. Exclusion of these

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

act for the same individuals for whom reimbursement is provided by

the state correctional system.

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

502 whose audited activities classification structure data is

significantly different than the data used to determine state aid

under this act shall return any overappropriated money as provided

in this subsection. The department of labor and economic growth

shall compare formula computations for the audited colleges using

pre- and post-audit data. If the state allocation is 2% or more

than the post-audit allocation amount, the college shall return the

excess money. The returned money shall be redistributed to all 28

community colleges, prorated on the base appropriations contained

in part 1.

Sec. 304. It is the intent of the legislature that the data

collected and used to generate the Gast-Mathieu fairness in funding

formula continue to be collected and maintained in the event that

the formula is used in future years.

GRANTS

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

program is continued. The funding shall be prorated among community

colleges based on the number of student contact hours for

developmental and preparatory instruction reported by each

community college to the department of labor and economic growth

pursuant to the 2003 Activities Classification Structure Manual for

Michigan Community Colleges. Of the amount appropriated in part 1

for the at-risk student success program, $1,120,000.00 is allocated

for base grants of $40,000.00 each, to address the special needs of

at-risk students at community colleges or the acquisition or

upgrade of technology-related equipment and software.

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

student success program, the balance of the appropriated money

shall be distributed on a proration utilizing the sum of the most

recent 3 years developmental/preparatory contact hours divided by

the sum of the 3-year total contact hours at each college. Each

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

the percentages systemwide to obtain each community college's

prorated grant amount.

(3) For the fiscal year ending September 30, 2007, the at-risk

student success program money is allocated as follows:

Alpena Community College............................... $ 78,600

Bay de Noc Community College........................... 100,800

Delta College.......................................... 97,900

Glen Oaks Community College............................ 117,500

Gogebic Community College.............................. 62,400

Grand Rapids Community College......................... 122,100

Henry Ford Community College........................... 151,900

Jackson Community College.............................. 105,000

Kalamazoo Valley Community College..................... 89,400

Kellogg Community College.............................. 159,500

Kirtland Community College............................. 124,300

Lake Michigan College.................................. 155,800

Lansing Community College.............................. 134,500

Macomb Community College............................... 83,300

Mid Michigan Community College......................... 142,200

Monroe County Community College........................ 97,500

Montcalm Community College............................. 66,700

C.S. Mott Community College............................ 103,800

Muskegon Community College............................. 118,500

North Central Michigan College......................... 117,200

Northwestern Michigan College.......................... 118,200

Oakland Community College.............................. 147,300

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

Schoolcraft College.................................... 130,000

Southwestern Michigan College.......................... 138,600

Washtenaw Community College............................ 159,800

Wayne County Community College......................... 172,400

West Shore Community College........................... 135,500

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

meet 1 or more of the following criteria:

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

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

satisfactory academic progress.

(b) Are diagnosed as learning disabled.

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

address the special needs of at-risk students or for equipment or

upgrade of information technology hardware or software. Activities

related to services provided to at-risk students include, but are

not limited to, pretesting for academic ability, counseling

contacts, and special programs. Equipment or information technology

hardware or software purchased under this section need not be

associated with the operation of a program designed to address the

needs of at-risk students.

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

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

except as provided in this section, college administration.

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

labor and economic growth a summary of all accomplishments under,

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

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

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

shall be submitted not later than 90 days after the end of the

state's fiscal year.

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

reimbursements shall be made to each eligible recipient no later

than 60 days after the department of treasury certifies to the

state budget director that it has received all necessary

information to properly determine the amounts due each eligible

recipient under section 12 of the Michigan renaissance zone act,

1996 PA 376, MCL 125.2692.

REPORTS AND AUDITS

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

publish the activities classification structure data book for

Michigan community colleges on or before March 1, 2007, for use by

the legislature during budget development for the fiscal year

ending September 30, 2008.

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

accounting firm appointed by the auditor general shall audit data

for the fiscal year ending on June 30, 2006, as submitted to the

department of labor and economic growth by 7 randomly selected

community colleges, selected by the auditor general. A community

college shall maintain and provide those records necessary for the

auditor general or certified public accountant appointed by the

auditor general to determine the accuracy of the reported data. The

audits shall be based upon the definitions and requirements

contained in the 2001 Manual for Uniform Financial Reporting,

Michigan Public Community Colleges and the 2003 Activities

Classification Structure Manual for Michigan Community Colleges.

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

may appeal the findings of the preliminary report under an appeal

process to be established by the auditor general. The auditor

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

senate appropriations committees, the department of labor and

economic growth, and the state budget director before June 1, 2007.

(2) The auditor general or a certified public accountant

appointed by the auditor general may conduct performance audits of

community colleges as the auditor general considers necessary.

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

the office of the auditor general, the principal executive officer

of the community college that was audited shall submit to the house

and senate appropriations committees, the house and senate fiscal

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

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

recommendations. The plan shall contain projected dates and

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

recommendations, or a documented explanation of the college's

noncompliance with the audit recommendations concerning the matters

on which the audited community college and office of the auditor

general disagree.

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

review the taxonomy of the 7 community colleges selected for the

audit under section 502 that is based on the 2003 Activities

Classification Structure Manual for Michigan Community Colleges.

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

summaries, class lists, registration documents, and student

transcripts that are consistent with the taxonomy of courses. For

each enrollment period during the fiscal year, these certified

documents shall identify clearly by course the number of in-

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

class summaries and class lists shall be consistent with each other

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

course credit and contact hours, credit and contact hours generated

by each student, and activity classifications consistent with the

taxonomy. An auditable process shall be used by the community

college to determine the unduplicated head count for in-district

students, out-of-district students, and prisoners for each

enrollment period during the fiscal year.

(2) Contracts between the community college and agencies that

reimburse the community college for the costs of instruction shall

be retained for audit purposes.

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

all income and expenditures performed by an independent auditor and

shall furnish the independent auditor's management letter and an

annual audited accounting of all general and current funds income

and expenditures including audits of college foundations to the

members of the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, the

auditor general, the department of labor and economic growth, and

the state budget director before November 15, 2006. If a community

college fails to furnish the audit materials, the monthly state aid

installments shall be withheld from that college until the

information is submitted. All reporting shall conform to the

requirements set forth in the 2001 Manual for Uniform Financial

Reporting, Michigan Public Community Colleges.

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

following to the department of labor and economic growth no later

than November 1, 2006:

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

term for the previous fiscal year, using guidelines and procedures

developed by the department of labor and economic growth and the

Michigan commission on Indian affairs.

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

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

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

390.1251 to 390.1253, to determine eligibility for tuition waivers,

and shall grant those waivers to individuals who meet the criteria

and request tuition waivers.

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

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

compilation to the house and senate appropriations subcommittees on

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

state budget director by January 7, 2007.

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

interested Michigan high schools of the aggregate academic status

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

by the Michigan community college association and in cooperation

with the Michigan association of secondary school principals.

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

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

department of labor and economic growth by August 31, 2006, the

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

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

college governing board for the 2006-2007 academic year. This

report should also include the annual cost of attendance based on a

full-time course load of 30 credits. Each community college shall

also report any revisions to the reported 2006-2007 academic year

tuition and mandatory fees adopted by the college governing board

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

and the department of labor and economic growth within 15 days of

being adopted.

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

and provide to community colleges a standard format for reporting

tuition and fees pursuant to subsection (1).

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

department of labor and economic growth the numbers and type of

associate degrees and other certificates awarded during the

previous fiscal year. The report shall be made not later than

November 15, 2006.

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

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

compilation to the house and senate appropriations subcommittees on

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

state budget director by January 7, 2007.

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

and also subject to the student right-to-know and campus security

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

material prepared in accordance with the public information

reporting requirements under the crime awareness and campus

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

campus security act, Public Law 101-542, 104 Stat. 2384, available

in hard copy and electronic format accessible through the Internet

for school districts, parents, and students.

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

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

similar activities be limited to that which is reasonably necessary

to monitor the performance of community colleges and confirm the

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

similar activities conducted to comply with the state plan approved

by the United States department of education under the Perkins act

shall be limited to those necessary to meet the requirements of the

state plan.

(2) In developing and implementing audit and reporting

requirements, including those included in current and proposed

state plans under the Perkins act, the department of labor and

economic growth shall consult with community colleges, the

legislative auditor general, and independent auditors in an effort

to coordinate activities and minimize duplication of audit and

reporting requirements imposed on community colleges.

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

the United States department of education for approval under the

Perkins act, the department of labor and economic growth shall

provide copies of the proposed plan to the members of the senate

and house appropriations subcommittees on community colleges for

their review and comment. Copies of the proposed plan shall be

provided to the senate and house fiscal agencies and the state

budget director at the same time that they are provided to the

senate and house subcommittees.

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

streamlined to the extent possible.

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

Perkins vocational and applied technology education act of 1998, 20

USC 2301 to 2415.