HB-5375, As Passed Senate, December 19, 2008

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5375

     A bill to authorize the creation of promise zones; and to

prescribe powers and duties of certain state and local officials.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"Michigan promise zone act".

     Sec. 3. As used in this act:

     (a) "Eligible entity" means a city, township, county, local

school district, or intermediate school district, in which the

percentage of families with children under age 18 that are living

at or below the federal poverty level is greater than or equal to

the state average of families with children under age 18 living at

or below the federal poverty level, as determined by the department

of treasury.

     (b) "Federal poverty level" means the poverty guidelines

published annually in the federal register by the United States

department of health and human services under its authority to

revise the poverty line under section 673(2) of subtitle B of title

VI of the omnibus budget reconciliation act of 1981, Public Law 97-

35, 42 USC 9902.

     (c) "Governing body" means the elected body of an eligible

entity having legislative powers.

     (d) "Nonpublic high school" means a high school operated by a

nonpublic school that includes grades 9 to 12 or 10 to 12 and that

awards a high school diploma. Nonpublic high school also includes a

general education development test.

     (e) "Nonpublic school" means that term as defined in section 5

of the revised school code, 1976 PA 451, MCL 380.5.

     (f) "Promise of financial assistance" means a commitment by an

eligible entity to provide financial resources for public or

private postsecondary education to eligible students living in a

promise zone and who have graduated from a public high school or

nonpublic high school located within that promise zone.

     (g) "Promise zone" means that area created by a governing body

under this act.

     (h) "Public high school" means a public school that includes

grades 9 to 12 or 10 to 12 and that awards a high school diploma.

     (i) "Public school" means that term as defined in section 5 of

the revised school code, 1976 PA 451, MCL 380.5.

     (j) "School district" means that term as defined in the

revised school code, 1976 PA 451, MCL 380.1 to 380.1852.

     (k) "State education tax" means the tax levied under the state

education tax act, 1993 PA 331, MCL 211.901 to 211.906.

     Sec. 5. (1) If a governing body determines that it is

necessary for the best interests of the public to promote access to

postsecondary education, the governing body may, by resolution,

declare its intention to establish a promise zone.

     (2) The governing body shall set a date for a public hearing

on the adoption of a proposed resolution establishing the promise

zone. Notice of the public hearing shall be published twice in a

newspaper of general circulation in the eligible entity, not less

than 20 or more than 40 days before the date of the hearing. Notice

of the hearing shall be posted in at least 20 conspicuous and

public places in the eligible entity not less than 20 days before

the hearing. The notice shall state the date, time, and place of

the hearing and shall describe the proposed promise zone, the

details of the promise of financial assistance, and the criteria

for eligibility to receive that financial assistance.

     (3) Not less than 30 days after the public hearing, if the

governing body of the eligible entity intends to proceed with the

establishment of the promise zone, it shall submit an application

to the department of treasury seeking approval to establish a

promise zone.

     (4) The department of treasury shall review the application

submitted under subsection (3) and shall certify that the governing

body of the eligible entity is eligible to establish a promise zone

under this act. The department of treasury shall review the

applications submitted under subsection (3) on a first-come first-

served basis and shall not certify more than 10 governing bodies of

eligible entities as eligible to establish a promise zone under

this act.

     (5) If the department of treasury certifies that the governing

body of the eligible entity is eligible to create a promise zone,

the governing body shall, by resolution, establish a promise zone.

     (6) Not more than 90 days after the governing body approves a

resolution to establish a promise zone, a local school district may

by resolution elect not to participate in the establishment of a

promise zone by the governing body of the eligible entity in which

the local school district is located. The resolution shall include

a provision that the local school district will establish a

separate promise zone under this act. If the local school district

does not establish a promise zone within a reasonable period of

time, the department of treasury may include that local school

district in the promise zone established by the eligible entity in

which the local school district is located.

     Sec. 7. The establishment of a promise zone does not create a

cause of action in law or in equity against this state or an

eligible entity.

     Sec. 9. (1) A city, township, county, local school district,

or intermediate school district that is not an eligible entity may

create a promise zone under this act, but shall not capture revenue

from the state education tax under the Michigan promise zone

authority act. The governing body of a city, township, county,

local school district, or intermediate school district that is not

an eligible entity shall not be considered under section 5 in

House Bill No. 5375 as amended December 19, 2008

determining the number of governing bodies of eligible entities

eligible to establish a promise zone under this act.

     (2) This section shall not prevent an eligible entity located

within a city, township, county, local school district, or

intermediate school district that is not an eligible entity from

creating a promise zone under this act and capturing revenue from

the state education tax under the Michigan promise zone authority

act.

     <<Enacting section 1. This act does not take effect unless

Senate Bill No. 861 of the 94th Legislature is enacted into law.

>>