ENTREPRENEURSHIP EDUCATION

House Bill 4559 (Substitute H-1)

Sponsor:  Rep. Andy Meisner

Committee:  Commerce

Complete to 11-20-07

A SUMMARY OF HOUSE BILL 4559 AS REPORTED FROM COMMITTEE

The bill would create a new act, the Entrepreneurship Education Act, under which eligible students could receive assistance in paying for courses in "entrepreneurship" at approved schools.  The maximum amount and duration of assistance would be determined by the Department of Labor and Economic Growth.

Eligibility.  To be eligible, students would need to be (1) currently unemployed; or, if employed, have received notice of termination or layoff; or have an annual family income of $40,000 or less; (2) be at least 18 years old; (3) have not graduated from high school within the last two years; (4) not be a full-time college student; and (5) meet other standards established in DLEG guidelines.

Courses in Entrepreneurship.  Theses courses would include educational courses, classes, or training providing a student with the fundamental aspects of starting or operating a small business or venture, including the profile of an entrepreneur; opportunity recognition; business feasibility assessment; building a business model; industry and market competition; market analysis; pricing; financial analysis and statements relating to start-up costs, operational expenses, and cash flow; raising commercialization capital; procuring government-sponsored research and development grants for developing technology innovations; licensing and transferring technology from universities; and developing a business plan.   The course, class, or training could be (but need not be) part of a broader training program or a curriculum or degree or certificate program in entrepreneurial or small business management or administration.

Eligible Institutions.  Approved schools would include (1) degree- or certificate-granting public or private colleges, universities, and community (or junior) colleges in Michigan; (2) nonprofit associations, corporations, or foundations approved by DLEG to provide courses in entrepreneurship; and (3) training programs approved by DLEG.  The department would be required to annually assess the performance of approved schools in providing effective entrepreneurial education.

Assistance for Eligible Costs.  An eligible student who enrolls in one or more qualified courses in entrepreneurship at an approved school would be eligible for educational assistance for the eligible costs he or she would have otherwise paid.  The term "eligible costs" refers to tuition costs and any other costs directly related to instruction, books, and materials, and other fees incurred for enrollment and the cost of supportive services.  "Supportive services" means personal guidance and counseling, as well as such supplemental services as helping with child care subsidies or vouchers, transportation passes, and book and supply vouchers.  DLEG would determine the form or format of the assistance application.

FISCAL IMPACT:

The bill would increase state costs by an indeterminate amount.  The amount of the cost increase would depend on the number of qualifying students choosing to pursue entrepreneurship classes, the amount and duration of the financial assistance determined by the department under the bill's provisions, and the possible availability of federal funds for this purpose.

POSITIONS:

     

The Department of Labor and Economic Growth has indicated support for the bill.  (11-7-07)

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Kyle Jen

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.