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HB-4351, As Passed House, August 23, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 4351

A bill to make appropriations for Michigan State University,

University of Michigan - Ann Arbor, and Wayne State University and

certain state purposes related to education for the fiscal year

ending September 30, 2008; to provide for the expenditures of those

appropriations; 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 Michigan State

University, University of Michigan - Ann Arbor, and Wayne State

University for the fiscal year ending September 30, 2008, from the

funds indicated in this part. The following is a summary of the

appropriations in this part:

APPROPRIATION SUMMARY:

GROSS APPROPRIATION.................................... $ 1,027,278,200

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 1,027,278,200

Federal revenues:

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

Special revenue funds:

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

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

Total other state restricted revenues.................. 0

State general fund/general purpose..................... $ 1,027,278,200

Sec. 102. MICHIGAN STATE UNIVERSITY

Operations............................................. $ 306,198,900

Agricultural experiment station........................ 34,672,800

Cooperative extension service.......................... 29,176,400

GROSS APPROPRIATION.................................... $ 370,048,100

Appropriated from:

State general fund/general purpose..................... $ 370,048,100

Sec. 103. UNIVERSITY OF MICHIGAN - ANN ARBOR

Operations............................................. $ 343,163,200

GROSS APPROPRIATION.................................... $ 343,163,200

Appropriated from:

State general fund/general purpose..................... $ 343,163,200

Sec. 104. WAYNE STATE UNIVERSITY

Operations............................................. $ 231,656,100

GROSS APPROPRIATION.................................... $ 231,656,100

Appropriated from:

State general fund/general purpose..................... $ 231,656,100

Sec. 105. SUPPLEMENTAL PAYMENT

One-time supplemental payment.......................... $ 81,910,800

GROSS APPROPRIATION.................................... $ 81,910,800

Appropriated from:

State general fund/general purpose..................... $ 81,910,800

Sec. 106. UNIVERSITY RESEARCH CORRIDOR

University research corridor........................... $ 500,000

GROSS APPROPRIATION.................................... $ 500,000

Appropriated from:

State general fund/general purpose..................... $ 500,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

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 2007-2008 is $1,027,278,200.00 and

state spending from state resources to be paid to local units of

government for fiscal year 2007-2008 is $0.00.

Sec. 202. The appropriations authorized under this part and

part 1 are subject to the management and budget act, 1984 PA 431,

MCL 18.1101 to 18.1594.

Sec. 211. (1) The auditor general shall review higher

education institutional data inventory (HEIDI) enrollment data

submitted by all state universities and may perform audits of

selected state universities if determined necessary. The review and

audits shall be based upon the definitions, requirements, and

uniform reporting categories established by the state budget

director and the senate and house fiscal agencies. The auditor

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

appropriations committees and the state budget director no later

than July 1, 2008.

(2) Student credit hours reports shall not include the

following:

(a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

(b) Student credit hours generated through distance learning

instruction for students not eligible for the institution's in-

state main campus resident tuition rate.

examination.

(d) Student credit hours generated through inmate prison

programs regardless of teaching location.

(e) Student credit hours generated in new degree programs

after January 1, 1975, that have not been specifically authorized

for funding by the legislature, except spin-off programs converted

from existing core programs that do all of the following:

(i) Represent new options, fields, or concentrations within

existing programs.

(ii) Are consistent with the current institutional role and

mission.

(iii) Are accommodated within the continuing funding base of the

institution.

(iv) Do not require a new degree level beyond that which the

institution is currently authorized to grant within that discipline

or field.

(v) Do not require funding from the state other than that

provided by the student credit hours generated within the program,

either before program initiation or within the first 3 years of

program operation.

(3) The auditor general shall periodically audit higher

education institutional data inventory (HEIDI) data as submitted by

the state universities for compliance with the definitions approved

by the HEIDI advisory committee for the HEIDI database.

(4) "Distance learning instruction" as used in subsection (2)

means instruction that occurs solely in other than a traditional

classroom setting where the student and instructor are in the same

physical location and for which a student receives course credits

and is charged tuition and fees. Examples of distance learning

instruction are instruction delivered solely through the Internet,

cable television, teleconference, or mail.

Sec. 212. (1) Pursuant to section 211(2)(e), the institutions

of higher education receiving appropriations in part 1 may

establish the following degree programs:

(a) Bachelor's degree programs:

Michigan State University, Residential College in the Arts and

Humanities, B.A.

Wayne State University, Radiologic Technology, B.S.

(b) Master's degree programs:

University of Michigan – Ann Arbor, Clinical Research, M.S.

University of Michigan – Ann Arbor, Master of Supply Chain

Management

Wayne State University, Joint-Library and Information Science

and History, M.A.

Michigan State University, Quantitative Biology Dual Major,

Ph.D.

Wayne State University, Business Administration, Ph.D.

Wayne State University, Joint Pharm.D/Ph.D., Pharm.D, Ph.D.

(2) The listing of degree programs in subsection (1) does not

constitute legislative intent to provide additional dollars for

those programs.

(3) When submitting the listing of new degree programs for

purposes of section 211(2)(e) in fiscal years after 2007-2008, the

presidents council of state universities shall also provide a

listing of degree programs that these institutions of higher

education will no longer offer in subsequent academic years.

Sec. 213. The principal executive officer of each institution

of higher education receiving an appropriation under this act shall

expend a portion of the funds appropriated to that institution to

make a report to the auditor general, the house and senate fiscal

agencies, and the state budget director within 60 days after the

auditor general issues his or her report on the operation of the

institution. The institution's report shall specify all of the

following:

(a) The recommendations of the auditor general implemented by

the institution, including projected dates and resources required,

if any, to achieve compliance.

(b) The recommendations of the auditor general not implemented

by the institution or implemented by the institution as modified.

auditor general or of implementing a recommendation as modified.

Sec. 214. The auditor general may conduct performance audits

of state universities during the fiscal year ending September 30,

2008 as the auditor general considers necessary.

Sec. 215. An institution of higher education receiving funds

under this act and also subject to the student right-to-know and

campus security act, Public Law 101-522, 104 Stat. 2381, shall make

a copy of all material prepared pursuant to 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. 2381, available

in electronic Internet format on their websites.

Sec. 216. By February 1, 2008, each of Michigan's state

universities receiving appropriations in part 1 shall submit to the

house and senate appropriations subcommittees on higher education,

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

a report on the following:

(a) The number of students who graduated from the university

in academic year 2005-2006 and academic year 2006-2007 with an

advanced degree in mathematics, science, health care, or

engineering, and the number of those graduates that remained in

Michigan to work.

(b) The projected numbers of graduates in each of the above-

listed categories for the next 5 calendar years and plans or

programs, if any, to increase the numbers of graduates in these

categories.

development activities and the monetary value of these activities

on the economy of Michigan. The report shall include efforts

undertaken to assist the state and its communities with the

development of programs and infrastructure necessary to expand

businesses and jobs, including those in manufacturing, tourism,

agriculture, and health care.

(d) Partnerships with other Michigan universities, community

colleges, or other entities regarding new technology development,

including, but not limited to, life sciences, alternative energy,

and advanced manufacturing and increasing the number of college

graduates in science, technology, engineering, and mathematics

disciplines.

(e) Efforts to increase foreign investment and international

trade; efforts to encourage international students to develop,

locate, or partner with Michigan-based businesses upon graduation;

and efforts to identify economic development leads or prospects in

national or international markets for Michigan business for

referral to state, regional, or local economic development

officials.

(f) The impact of research and technology development

undertaken by the university, including, but not limited to, all of

the following:

(i) The amount of private, state, and federal research funding

received by the university.

(ii) The total amount of research spending by the university.

(iii) The number of new invention disclosures filed by

university faculty, researchers, and graduate students.

(iv) The number of start-up companies formed based on

university-generated inventions and the number of those companies

headquartered in Michigan.

(v) The number of new licensing agreements with corporate

partners and the amount of university revenue generated from

licensing new technologies.

(vi) The number of patent applications filed by the university

and the number of patents granted to the university.

(vii) The number of jobs created or retained in Michigan

attributed to university-generated research and technology

transfer.

Sec. 217. (1) In light of the state's current economic

conditions and the similar roles of the 3 research universities

receiving appropriations in part 1, it is the intent of the

legislature that, to the extent possible, those universities

consolidate programs, services, and resources among themselves in

order to realize economic efficiencies.

(2) By March 1, 2008, each of the 3 research universities

shall submit a report on its efforts under subsection (1) to the

house and senate appropriations subcommittees on higher education,

the house and senate fiscal agencies, and the state budget

director.

Sec. 218. Not later than February 1, 2008, each of the state

universities receiving appropriations in part 1 shall submit to the

state budget director, members of the house of representatives and

the senate, and the house and senate fiscal agencies a report on

the number of residents from an eligible county enrolled at the

university and the quantifiable increase from the 2006-2007

academic year to the 2007-2008 academic year in outreach efforts to

enroll students at the university from an eligible county. As used

in this section, "eligible county" means a county in this state

that meets both of the following:

(a) Has a population of not less than 700,000 and not more

than 1,000,000 according to the most recent federal decennial

census.

(b) Does not contain the main campus of a 4-year public

university within its boundaries.

Sec. 221. Unless otherwise specified, the institutions of

higher education receiving appropriations in part 1 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. 222. Funds appropriated in part 1 shall not be used for

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

competitively priced and of comparable quality American goods and

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

value.

Sec. 223. (1) The funds appropriated in part 1 to state

institutions of higher education, except for the 1-time

supplemental payment described in subsection (2), shall be paid out

of the state treasury and distributed by the state treasurer to the

respective institutions in 11 equal monthly installments on the

sixteenth of each month, or the next succeeding business day,

beginning with October 16, 2007. Except for Wayne State University,

each institution shall accrue its July and August 2008 payments to

its institutional fiscal year ending June 30, 2008.

(2) The funds appropriated in part 1 to state institutions of

higher education for the 1-time supplemental payment shall be paid

out of the state treasury and distributed by the state treasurer to

the respective institutions on October 16, 2007. The payment made

to each institution shall be equal to the sum of the delayed

payment reduction contained in Executive Order 2007-3 and the

payment delay reduction contained in section 112 of 2007 PA 17.

Except for Wayne State University, each state institution of higher

education shall accrue this payment to its institutional fiscal

year ending June 30, 2007. Wayne State University shall accrue this

payment to its institutional fiscal year ending September 30, 2007.

(3) All universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For universities with fiscal years

ending June 30, 2007, these data shall be submitted to the state

budget director by October 15, 2007. Universities with a fiscal

year ending September 30, 2007 shall submit preliminary HEIDI data

by November 15, 2007 and final data by December 15, 2007. If a

university fails to submit HEIDI data and associated financial aid

program information in accordance with this reporting schedule, the

state treasurer shall withhold the monthly installments under

subsection (1) to the university until those data are submitted.

(4) A detailed description of procedures utilized to arrive at

the amounts appropriated in part 1 shall be submitted to each

institution by the senate and house fiscal agencies.

Sec. 224. Funds received by the state from the federal

government or private sources for the use of a college or

university are appropriated for the purposes for which they are

provided. The acceptance and use of federal or private funds do not

place an obligation upon the legislature to continue the purposes

for which the funds are made available.

Sec. 225. If section 274 of the income tax act of 1967, 1967

PA 281, MCL 206.274, is not repealed and if a state institution of

higher education that receives funds under this act notifies the

department of treasury regarding its tuition and fee rates in order

to qualify as an eligible institution for the Michigan tuition tax

credit under section 274 of the income tax act of 1967, 1967 PA

281, MCL 206.274, the institution shall also submit the

notification and applicable documentation of tuition and fee

changes to the house and senate fiscal agencies.

Sec. 226. A state institution of higher education that

receives funds under this act shall furnish all program and

financial information that is required by and in a manner

prescribed by the state budget director or the house or senate

appropriations committee.

Sec. 227. (1) The funds appropriated in part 1 for the

university research corridor shall be paid only to a legal entity

to be jointly formed by Michigan State University, the University

of Michigan - Ann Arbor, and Wayne State University. The purposes

of the university research corridor shall include, but not be

limited to, the following:

(a) Encourage collaborative research efforts between the 3

universities leading to economic development within this state.

(b) Establish research partnerships with businesses in this

state.

universities to businesses and researchers in other states.

(2) No later than September 15, 2008, the university research

corridor shall submit to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director a report on its efforts

under subsection (1) and a detailed accounting of the expenditures

from the appropriation in part 1.

Sec. 228. The funds appropriated in part 1 to state

institutions of higher education shall not be used to enter into a

lease or to purchase a vehicle produced by a foreign auto

manufacturer.

Sec. 301. (1) From the amount appropriated in part 1 for state

universities, the state universities shall systematically inform

Michigan high schools regarding the academic status of students

from each high school in a manner prescribed by the presidents

council, state universities of Michigan in cooperation with the

Michigan association of secondary school principals.

(2) The Michigan high schools shall systematically inform the

state universities about the use of information received under this

section in a manner prescribed by the Michigan association of

secondary school principals in cooperation with the presidents

council, state universities of Michigan.

Sec. 302. From the amount appropriated in part 1 for state

universities, the state universities shall inform Michigan

community colleges regarding the academic status of community

college transfer students in a manner prescribed by the presidents

council, state universities of Michigan in cooperation with the

Michigan community college association.

Sec. 401. (1) Included in part 1 is $2,953,400.00 for the

agricultural experiment station and $2,619,000.00 for the

cooperative extension service for project GREEEN. Project GREEEN is

intended to address critical regulatory, food safety, economic, and

environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for generating research and extension to meet environmental

and economic needs.

(2) The department of agriculture and Michigan State

University, in consultation with agricultural commodity groups and

other interested parties, shall develop project GREEEN and its

program priorities.

(3) Not later than September 30, 2008, a report shall be

submitted by Michigan State University to the state budget

director, the house and senate appropriations subcommittees on

agriculture and on higher education, and the house and senate

fiscal agencies for the preceding fiscal year regarding project

GREEEN projects. The report shall include, but is not limited to,

the dollar amount of each project and a review of each project's

performance and accomplishments.

Sec. 402. (1) It is the intent of the legislature that if any

state university increases its resident undergraduate tuition and

required fees from academic year 2006-2007 to academic year 2007-

2008, then that university shall increase its fiscal year 2007-2008

general fund expenditures for student financial aid by at least the

same percentage as the percentage change in resident undergraduate

tuition and required fees. Each state university shall report its

proposed fiscal year 2007-2008 general fund expenditures for

student financial aid compared to its projected fiscal year 2006-

2007 general fund expenditures for student financial aid, and its

projected academic year 2007-2008 resident undergraduate tuition

and required fee changes from academic year 2006-2007, to the state

budget director and the house and senate appropriations

subcommittees on higher education by November 15, 2007.

(2) It is the intent of the legislature that, from the

increase in university operations appropriations from fiscal year

2006-2007 to fiscal year 2007-2008, each state university utilize a

portion of the increase to provide savings to students through

rebates, reductions in tuition and fee charges, or financial aid

awards. Each state university shall report on the amount and method

of student savings under this subsection to the house and senate

appropriations committees, house and senate fiscal agencies, and

state budget director by December 1, 2007.

Sec. 403. All universities shall submit the amount of tuition

and fees actually charged to a full-time resident undergraduate

student for academic year 2007-2008 as part of their higher

education institutional data inventory (HEIDI) data by August 31,

2007. A university shall report any revisions for any semester of

the reported academic year 2007-2008 tuition and fee charges to

HEIDI within 15 days of being adopted.

Sec. 404. (1) Included in the appropriation for each state

university in part 1 is funding for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks future faculty program, that is intended

to increase the pool of academically or economically disadvantaged

candidates pursuing faculty teaching careers in postsecondary

education. Preference may not be given to applicants on the basis

of race, color, ethnicity, gender, or national origin. Institutions

should encourage applications from applicants who would otherwise

not adequately be represented in the graduate student and faculty

populations. Each state university shall apply the percentage

change applicable to every state university in the calculation of

appropriations in part 1 to the amount of funds allocated to the

future faculty program.

(2) The program shall be administered by each state university

in a manner prescribed by the Michigan department of labor and

economic growth. The Michigan department of labor and economic

growth shall use a good faith effort standard to evaluate whether a

fellowship is in default.

Sec. 405. (1) Included in the appropriation for each state

university in part 1 is funding for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks college day program that is intended to

introduce academically or economically disadvantaged schoolchildren

to the potential of a college education. Preference may not be

given to participants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

participation from those who would otherwise not adequately be

represented in the student population.

(2) Individual program plans of each state university shall

include a budget of equal contributions from this program, the

participating state university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each state university shall apply the percentage change

applicable to every state university in the calculation of

appropriations in part 1 to the amount of funds allocated to the

college day program.

(3) The program described in this section shall be

administered by each state university in a manner prescribed by the

Michigan department of labor and economic growth.

Sec. 406. (1) Included in the appropriation for each state

university in part 1 is funding for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks visiting professors program which is

intended to increase the number of instructors in the classroom to

provide role models for academically or economically disadvantaged

students. Preference may not be given to participants on the basis

of race, color, ethnicity, gender, or national origin. Institutions

should encourage participation from those who would otherwise not

adequately be represented in the student population.

(2) The program described in this section shall be

administered by the Michigan department of labor and economic

growth.

Sec. 407. The University of Michigan biological station at

Douglas Lake in Cheboygan County is regarded as a unique resource

and is designated as a special research reserve. It is the intent

of the legislature to protect and preserve the unique long-term

research value and capabilities of the biological station area and

Douglas Lake. The legislature further intends that no state

programs or policies be developed that would have a deleterious

impact on the research value of Douglas Lake.

Sec. 408. (1) It is the legislative intent that private

bookstores that sell textbooks to university students and student

governments that provide a book swap for university students have

accurate and timely access to lists of universities' required

textbooks in order to provide prompt and efficient service for

students. It is further the legislative intent that each state

university allow students who are on financial aid or are receiving

tuition grants to decide where to purchase their textbooks.

(2) It is the intent of the legislature that each state

university that provides for the use of funds in a university-

administered account or financial aid for the purchase of required

textbooks and supplies at bookstores operated by or affiliated with

the university also provide for the use of funds in a university-

administered account or financial aid at bookstores providing

required textbooks or supplies that are not operated by or

affiliated with the university. A state university may require

bookstores not operated by or affiliated with the university to

reimburse the university for any reasonable costs attributable to

these transactions and to pay a reasonable rate or commission to

the university.

Sec. 409. It is the intent of the legislature that each state

university receiving an appropriation in part 1 consider developing

an education program on recognizing depression and mental health

disorders and preventing suicide and violence and providing that

program annually to students, beginning with any freshman

orientation.

Sec. 410. (1) From the funds appropriated to state

universities in part 1, the amounts below shall be expended for

efforts to commercialize technology developed through university

research:

Michigan State University............................ $ 990,000

University of Michigan – Ann Arbor................... 3,484,700

Wayne State University............................... 762,900

(2) Each university receiving funds designated under

subsection (1) shall report to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director by May 1, 2007, regarding

efforts and expenditures under subsection (1).

(3) It is the intent of the legislature that, in future budget

years, a portion of state university appropriation amounts will be

based on uniform statewide data on research commercialization

efforts and outcomes, rather than federal research funding data.

Sec. 411. Beginning with the fall semester 2008, a state

university receiving appropriations in part 1 shall have its

appropriation reduced by 15% if it does not admit a student as an

undergraduate who meets all of the following conditions:

(a) The student graduates from a Michigan high school with a

grade point average in the top 10% of his or her high school

graduating class.

(b) The student applies for admission to the university.

university.