September 27, 2005, Introduced by Rep. Caswell and referred to the Committee on Higher Education and Career Preparation.
A bill to amend 1999 PA 94, entitled
"Michigan merit award scholarship act,"
by amending section 8 (MCL 390.1458), as amended by 2004 PA 595.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) Michigan merit award scholarship money shall be
used only to pay for eligible costs.
(2) The board shall determine the manner and form of
application for payment of a Michigan merit award scholarship by a
student
eligible under this act and the procedure for payment to
the
student or to an approved postsecondary educational
institution on the student's behalf, subject to 1 of the following,
as applicable:
(a) As determined by the board, upon the request of a student
or parent or legal guardian of a minor student, the board may pay a
Michigan merit award scholarship in 2 consecutive annual
installments rather than 1 lump sum for a student who graduates
from high school or passes the general educational development
(GED) test or approved graduate equivalency examination before
March 1, 2003.
(b) For each student who graduates from high school or passes
the general educational development (GED) test or approved graduate
equivalency examination on or after March 1, 2003 and before March
1, 2004, the board shall pay a Michigan merit award scholarship in
2 consecutive annual installments, beginning in the state fiscal
year for which the student is otherwise eligible. The first
installment shall not exceed 50% of the award amount, and the
second installment shall consist of the remaining award amount.
Verification that the student has met the enrollment criteria under
section 7b(1)(c) is required before payment of the second
installment.
(c) For each student who graduates from high school or passes
the general educational development (GED) test or approved graduate
equivalency examination on or after March 1, 2004, the board shall
pay a Michigan merit award scholarship in 2 consecutive annual
installments, beginning in the state fiscal year that begins after
the beginning of the academic year for which the student is
otherwise eligible. The first installment shall not exceed 50% of
the award amount, and the second installment shall consist of the
remaining award amount. Verification that the student has met the
enrollment criteria under section 7b(1)(c) is required before
payment of the second installment.
(3) An approved postsecondary educational institution shall
not consider a Michigan merit award scholarship 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 not reduce institutionally-
funded student aid because of the Michigan merit award scholarship
program.
(4)
Before payment of a Michigan merit award scholarship to a
student
or an approved postsecondary educational institution on
behalf of a student, the student shall certify or affirm in writing
to the board each of the following:
(a) That the student is enrolled at an approved postsecondary
educational institution.
(b) The name of the approved postsecondary educational
institution in which the student is enrolled.
(c) That the student agrees to use the Michigan merit award
scholarship only for eligible costs.
(d) That the student has not been convicted of a felony
involving an assault, physical injury, or death.
(e) That the student graduated from high school or passed the
general educational development (GED) test or approved graduate
equivalency examination within 1 of the following time periods:
(i) If the student graduated from high school or passed the
test or examination before March 1, 2002, within the 7-year period
preceding the date of the student's application to receive his or
her Michigan merit award scholarship.
(ii) If the student graduated on or after March 1, 2002, within
the 4-year period preceding the date of the student's application
to receive his or her Michigan merit award scholarship, or within a
period equal to 4 years plus the number of days the student served
as a member of the United States armed forces or peace corps if the
student became a member of the United States armed forces or peace
corps during this 4-year period and served for 4 years or less. The
board may also extend the 4-year period if the board determines
that an extension is warranted because of an illness or disability
of the student or in the student's immediate family or another
family emergency.
(5) The board shall not begin disbursing funds for a Michigan
merit
award scholarship to a student or
an approved postsecondary
educational
institution on behalf of the a student unless it
receives the request or application for payment, including the
written certification or affirmation described in this section,
from the student on or before 1 of the following dates, for
disbursement in that academic year:
(a) In the 2002-2003 academic year, January 15.
(b) In the 2003-2004 academic year, September 15 if the
student received notification of eligibility prior to August 1.
(c) In the 2003-2004 academic year, November 15 if the student
received notification of eligibility on or after August 1.
(d) In the 2004-2005 academic year, December 15.
(e) In any other academic year, November 15.
(6) The board shall pay all Michigan merit award scholarship
money awarded under this act to the approved postsecondary
educational institution in which the eligible student is enrolled.
The educational institution shall deposit the money in an account
for the benefit of the student and disburse money from the account
for payment of eligible costs.
(7) If a student elects to leave an approved postsecondary
educational institution without completing the classes in which he
or she enrolled, the approved postsecondary educational institution
shall return any money remaining in the student's account described
in subsection (5) to the department of treasury. The department
shall deposit the money returned from the student's account into an
account in the state treasury for the student. Any money remaining
in an account for 5 years shall escheat to the state.