SB-1099, As Passed Senate, March 25, 2008

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1099

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for certain state institutions

 

of higher education and certain state purposes related to education

 

for the fiscal year ending September 30, 2009; 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 certain state

 

institutions of higher education and certain state purposes related

 

to education for the fiscal year ending September 30, 2009, from


 

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

 

appropriations in this part:

 

HIGHER EDUCATION

 

APPROPRIATION SUMMARY:

 

   Full-time equated classified positions............ 1.0

 

GROSS APPROPRIATION.................................... $  1,799,426,000

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

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

 

ADJUSTED GROSS APPROPRIATION........................... $  1,799,426,000

 

   Federal revenues:

 

Total federal revenues.................................         7,400,000

 

   Special revenue funds:

 

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

 

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

 

Total other state restricted revenues..................       116,100,000

 

State general fund/general purpose..................... $  1,675,926,000

 

   Sec. 102. CENTRAL MICHIGAN UNIVERSITY

 

Operations............................................. $      84,399,300

 

GROSS APPROPRIATION.................................... $     84,399,300

 

    Appropriated from:

 

State general fund/general purpose..................... $     84,399,300

 

   Sec. 103. EASTERN MICHIGAN UNIVERSITY

 

Operations............................................. $      80,107,300

 

GROSS APPROPRIATION.................................... $     80,107,300

 

    Appropriated from:

 

State general fund/general purpose..................... $     80,107,300


 

   Sec. 104. FERRIS STATE UNIVERSITY

 

Operations............................................. $      51,222,700

 

GROSS APPROPRIATION.................................... $     51,222,700

 

    Appropriated from:

 

State general fund/general purpose..................... $     51,222,700

 

   Sec. 105. GRAND VALLEY STATE UNIVERSITY

 

Operations............................................. $      65,289,100

 

GROSS APPROPRIATION.................................... $     65,289,100

 

    Appropriated from:

 

State general fund/general purpose..................... $     65,289,100

 

   Sec. 106. LAKE SUPERIOR STATE UNIVERSITY

 

Operations............................................. $      13,371,400

 

GROSS APPROPRIATION.................................... $     13,371,400

 

    Appropriated from:

 

State general fund/general purpose..................... $     13,371,400

 

   Sec. 107. MICHIGAN STATE UNIVERSITY

 

Operations............................................. $    298,844,000

 

Agricultural experiment station........................        35,016,100

 

Cooperative extension service..........................        30,202,000

 

GROSS APPROPRIATION.................................... $    364,062,100

 

    Appropriated from:

 

State general fund/general purpose..................... $    364,062,100

 

   Sec. 108. MICHIGAN TECHNOLOGICAL UNIVERSITY

 

Operations............................................. $      50,499,000

 

GROSS APPROPRIATION.................................... $     50,499,000

 

    Appropriated from:

 

State general fund/general purpose..................... $     50,499,000


 

   Sec. 109. NORTHERN MICHIGAN UNIVERSITY

 

Operations............................................. $      47,556,600

 

GROSS APPROPRIATION.................................... $     47,556,600

 

    Appropriated from:

 

State general fund/general purpose..................... $     47,556,600

 

   Sec. 110. OAKLAND UNIVERSITY

 

Operations............................................. $      53,490,900

 

GROSS APPROPRIATION.................................... $     53,490,900

 

    Appropriated from:

 

State general fund/general purpose..................... $     53,490,900

 

   Sec. 111. SAGINAW VALLEY STATE UNIVERSITY

 

Operations............................................. $      29,206,900

 

GROSS APPROPRIATION.................................... $     29,206,900

 

    Appropriated from:

 

State general fund/general purpose..................... $     29,206,900

 

   Sec. 112. UNIVERSITY OF MICHIGAN - ANN ARBOR

 

Operations............................................. $     333,143,100

 

GROSS APPROPRIATION.................................... $    333,143,100

 

    Appropriated from:

 

State general fund/general purpose..................... $    333,143,100

 

   Sec. 113. UNIVERSITY OF MICHIGAN - DEARBORN

 

Operations............................................. $      26,053,900

 

GROSS APPROPRIATION.................................... $     26,053,900

 

    Appropriated from:

 

State general fund/general purpose..................... $     26,053,900

 

   Sec. 114. UNIVERSITY OF MICHIGAN - FLINT

 

Operations............................................. $      22,021,300


 

GROSS APPROPRIATION.................................... $     22,021,300

 

    Appropriated from:

 

State general fund/general purpose..................... $     22,021,300

 

   Sec. 115. WAYNE STATE UNIVERSITY

 

Operations............................................. $     225,617,900

 

GROSS APPROPRIATION.................................... $    225,617,900

 

    Appropriated from:

 

State general fund/general purpose..................... $    225,617,900

 

   Sec. 116. WESTERN MICHIGAN UNIVERSITY

 

Operations............................................. $     115,485,600

 

GROSS APPROPRIATION.................................... $    115,485,600

 

    Appropriated from:

 

State general fund/general purpose..................... $    115,485,600

 

   Sec. 117. STATE AND REGIONAL PROGRAMS

 

    Full-time equated positions...................... 1.0

 

Higher education database modernization and

 

   conversion--1.0 FTE position......................... $        200,000

 

Midwestern higher education compact....................            95,000

 

GROSS APPROPRIATION.................................... $        295,000

 

    Appropriated from:

 

State general fund/general purpose..................... $        295,000

 

   Sec. 118. MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA

 

PARKS PROGRAM

 

Select student supportive services..................... $      1,956,100

 

Michigan college/university partnership program........           586,800

 

Morris Hood, Jr. educator development program..........           148,600

 

GROSS APPROPRIATION.................................... $      2,691,500


 

    Appropriated from:

 

State general fund/general purpose..................... $      2,691,500

 

   Sec. 119. GRANTS AND FINANCIAL AID

 

State competitive scholarships......................... $     35,530,500

 

Tuition grants.........................................        56,668,100

 

Michigan work-study program............................         7,326,300

 

Part-time independent student program..................         2,653,300

 

Michigan education opportunity grants..................         2,084,200

 

Robert C. Byrd honors scholarship program..............         1,500,000

 

Nursing scholarship and grant programs.................         4,250,000

 

Michigan merit award program...........................         5,200,000

 

Michigan promise grant program.........................        90,500,000

 

Tuition incentive program..............................        25,200,000

 

Children of veterans tuition grant program.............         1,000,000

 

Project gear-up........................................         3,000,000

 

GROSS APPROPRIATION.................................... $    234,912,400

 

    Appropriated from:

 

   Federal revenues:

 

Higher education act of 1965, title IV, 20 USC.........         2,900,000

 

Higher education act of 1965, title IV, part A.........         1,500,000

 

United States department of education, office of

 

   elementary and secondary education, gear-up..........         3,000,000

 

   Special revenue funds:

 

Michigan merit award trust fund........................       115,800,000

 

Contributions to children of veterans tuition grant

 

   program..............................................           300,000

 

State general fund/general purpose..................... $    111,412,400


 

 

 

 

 

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 2008-2009 is $1,792,026,000.00 and

 

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

 

government for fiscal year 2008-2009 is $3,759,100.00. The itemized

 

statement below identifies the estimated appropriations from which

 

spending to local units of government will occur:

 

Part-time independent student program.................. $      1,255,700

 

Michigan education opportunity grants..................           932,900

 

Michigan work-study....................................         1,570,500

 

TOTAL.................................................. $      3,759,100

 

     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. 208. 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. 209. 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. In addition, preference should be given to goods or

 

services, or both, that are manufactured or provided by Michigan

 

businesses owned and operated by veterans, if they are

 

competitively priced and of comparable quality.

 

     Sec. 212. (1) The funds appropriated in part 1 to state

 

institutions of higher education 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, 2008. Except for Wayne State University, each

 

institution shall accrue its July and August 2009 payments to its

 

institutional fiscal year ending June 30, 2009.

 

     (2) 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, 2008, these data shall be submitted to the state

 

budget director by October 15, 2008. Universities with a fiscal

 

year ending September 30, 2008 shall submit preliminary HEIDI data

 

by November 15, 2008 and final data by December 15, 2008. 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.

 

     (3) 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. 213. 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. 214. 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. 215. 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.

 

 

 

GRANTS AND FINANCIAL AID

 

     Sec. 301. (1) Payments of the amounts included in part 1 for


 

the state competitive scholarship program shall be distributed

 

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

 

     (2) The Michigan higher education assistance authority shall

 

implement a proportional competitive scholarship maximum award

 

level for recipients enrolled less than full-time in a given

 

semester or term.

 

     (3) If a student who receives an award under this section has

 

his or her tuition and fees paid under the Michigan educational

 

trust program, pursuant to the Michigan education trust act, 1986

 

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

 

funds awarded under this section may be used for educational

 

expenses other than tuition and fees.

 

     (4) If the Michigan higher education assistance authority

 

increases the maximum award per eligible student from that provided

 

in the previous fiscal year, it shall not have the effect of

 

reducing the number of eligible students receiving awards in

 

relation to the total number of eligible applicants. Any increase

 

in the maximum grant shall be proportional for all eligible

 

students receiving awards.

 

     (5) Students who receive aid under 1964 PA 208, MCL 390.971 to

 

390.981, shall be awarded scholarships on the basis of merit and

 

financial need. Veterans administration benefits shall not be

 

considered in determining eligibility under 1964 PA 208, MCL

 

390.971 to 390.981.

 

     Sec. 302. (1) The amounts appropriated in part 1 for the state

 

tuition grant program shall be distributed pursuant to 1966 PA 313,

 

MCL 390.991 to 390.997a.


 

     (2) Tuition grant awards shall be made to all eligible

 

Michigan residents who apply before July 1, 2008 and who are

 

qualified. Tuition grant awards shall not be made to students newly

 

enrolled in a juris doctor law degree program after the 1995-1996

 

academic year.

 

     (3) The Michigan higher education assistance authority shall

 

determine an actual maximum tuition grant award per student, which

 

shall be no less than $2,100.00, that ensures that the aggregate

 

payments for the tuition grant program do not exceed the

 

appropriation contained in part 1 for the state tuition grant

 

program. If the authority determines that insufficient funds are

 

available to establish a maximum award amount of $2,100.00, the

 

authority shall immediately report to the house and senate

 

appropriations subcommittees on higher education, the house and

 

senate fiscal agencies, and the state budget director, regarding

 

the estimated amount of additional funds necessary to establish a

 

$2,100.00 maximum award amount. By December 15, 2008, and again by

 

February 1, 2009, the authority shall analyze the status of award

 

commitments, shall make any necessary adjustments, and shall

 

confirm that those award commitments will not exceed the

 

appropriation contained in part 1 for the tuition grant program.

 

The determination and actions shall be reported to the state budget

 

director and the house and senate fiscal agencies no later than

 

February 15, 2009. If award adjustments are necessary, the students

 

shall be notified of the adjustment by the third Monday in

 

February.

 

     (4) Any unexpended and unencumbered funds remaining on


 

September 30, 2009 from the amounts appropriated in part 1 for the

 

tuition grant program shall not lapse on September 30, 2009, but

 

shall continue to be available for expenditure for tuition grants

 

provided in the 2009-2010 fiscal year under a work project account.

 

The use of these unexpended fiscal year 2008-2009 funds shall

 

terminate at the end of the 2009-2010 fiscal year.

 

     (5) The Michigan higher education assistance authority shall

 

continue a proportional tuition grant maximum award level for

 

recipients enrolled less than full-time in a given semester or

 

term.

 

     (6) If the Michigan higher education assistance authority

 

increases the maximum award per eligible student from that provided

 

in the previous fiscal year, it shall not have the effect of

 

reducing the number of eligible students receiving awards in

 

relation to the total number of eligible applicants. Any increase

 

in the maximum grant shall be proportional for all eligible

 

students receiving awards for fiscal year 2008-2009.

 

     (7) It is the intent of the legislature to secure funding to

 

provide a 3.0% increase for Michigan tuition grants for fiscal year

 

2008-2009.

 

     Sec. 303. (1) Included in the appropriation in part 1 is

 

funding for the Michigan work-study programs established under 1986

 

PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to

 

390.1332. An effort should be made by each institution

 

participating in the Michigan work-study programs to assure that

 

not less than 10% of those undergraduate, graduate, and

 

professional students eligible to participate in the programs are


 

placed with for-profit employers no later than December 31 of each

 

year for which funding is provided under this act.

 

     (2) The Michigan higher education assistance authority shall

 

allocate funds to institutions eligible for work-study money based

 

upon each institution's specific Pell grant index and each

 

institution's utilization rate of work-study funds for the 3 most

 

recent years for which statistics are available.

 

     (3) The Michigan higher education assistance authority shall

 

set aside not more than 5% of the total work-study appropriation to

 

process requests from participating institutions for allocation

 

adjustments. Allocation adjustments shall be based on criteria set

 

by the authority prior to making the allocations under subsection

 

(2).

 

     Sec. 307. The auditor general may audit selected enrollments,

 

degrees, and awards at selected independent colleges and

 

universities receiving awards administered by the department of

 

treasury. The audits shall be based upon definitions and

 

requirements established by the Michigan higher education

 

assistance authority, the state budget director, and the senate and

 

house fiscal agencies. The auditor general shall accept the Free

 

Application for Federal Student Aid (FAFSA) form as the standard of

 

residency documentation. The auditor general shall submit a report

 

of findings to the senate and house appropriations committees and

 

state budget director by May 1, 2009.

 

     Sec. 308. The sums appropriated in part 1 for the student

 

financial aid programs shall be paid out of the state treasury and

 

shall be distributed to the respective institutions under a


 

quarterly payment system as follows:

 

     (a) For the state competitive scholarship, nursing

 

scholarship, tuition incentive, and tuition grant programs, 40%

 

shall be paid at the beginning of the state's first fiscal quarter,

 

40% at the beginning of the state's second fiscal quarter, l0% at

 

the beginning of the state's third fiscal quarter, and l0% at the

 

beginning of the state's fourth fiscal quarter.

 

     (b) For the work-study programs, payments shall be made in 11

 

monthly installments from October 1 to August 31 of any year.

 

     (c) For the part-time independent student program and the

 

Michigan education opportunity grant program, 50% shall be paid at

 

the beginning of the state's first fiscal quarter, 25% at the

 

beginning of the state's second fiscal quarter, and 25% at the

 

beginning of the state's third fiscal quarter.

 

     (d) For the Robert C. Byrd honors scholarship program, 50%

 

shall be paid at the beginning of the state's first fiscal quarter

 

and 50% at the beginning of the state's second fiscal quarter.

 

     Sec. 309. The Michigan higher education assistance authority

 

shall determine the needs analysis criteria for students to qualify

 

for the state competitive scholarship program and tuition grant

 

program. To be consistent with federal requirements, student wages

 

may be taken into consideration when determining the amount of the

 

award.

 

     Sec. 310. (1) The funds appropriated in part 1 for the tuition

 

incentive program shall be distributed as provided in this section

 

and pursuant to the administrative procedures for the tuition

 

incentive program of the department of treasury.


 

     (2) As used in this section:

 

     (a) "Phase I" means the first part of the tuition incentive

 

assistance program defined as the academic period of 80 semester or

 

120 term credits, or less, leading to an associate degree or

 

certificate.

 

     (b) "Phase II" means the second part of the tuition incentive

 

assistance program which provides assistance in the third and

 

fourth year of 4-year degree programs.

 

     (c) "Department" means the department of treasury.

 

     (3) A person shall meet the following basic criteria and

 

financial thresholds to be eligible for tuition incentive benefits:

 

     (a) To be eligible for phase I, a person shall meet all of the

 

following criteria:

 

     (i) Apply for certification to the department before graduating

 

from high school or completing the general education development

 

(GED) certificate.

 

     (ii) Be less than 20 years of age at the time of high school

 

graduation or GED completion.

 

     (iii) Be a United States citizen and a resident of Michigan

 

according to institutional criteria.

 

     (iv) Be at least a half-time student, earning less than 80

 

semester or 120 term credits at a participating educational

 

institution within 4 years of high school graduation or GED

 

certificate completion.

 

     (v) Request information on filing a FAFSA.

 

     (b) To be eligible for phase II, a person shall meet either of

 

the following criteria in addition to the criteria in subdivision


 

(a):

 

     (i) Complete at least 56 transferable semester or 84

 

transferable term credits.

 

     (ii) Obtain an associate degree or certificate at a

 

participating institution.

 

     (c) To be eligible for phase I or phase II, a person must be

 

financially eligible as determined by the department. A person is

 

financially eligible for the tuition incentive program if that

 

person was Medicaid eligible for 24 months within the 36 months

 

before application. Certification of eligibility may begin in the

 

sixth grade.

 

     (4) For phase I, the department shall provide payment on

 

behalf of a person eligible under subsection (3). The department

 

shall reject billings that are excessive or outside the guidelines

 

for the type of educational institution.

 

     (5) For phase I, all of the following apply:

 

     (a) Payments for associate degree or certificate programs

 

shall not be made for more than 80 semester or 120 term credits for

 

any individual student at any participating institution.

 

     (b) For persons enrolled at a Michigan community college, the

 

department shall pay the current in-district tuition and mandatory

 

fees. For persons residing in an area that is not included in any

 

community college district, the out-of-district tuition rate may be

 

authorized.

 

     (c) For persons enrolled at a Michigan public university, the

 

department shall pay lower division resident tuition and mandatory

 

fees for the current year.


 

     (d) For persons enrolled at a Michigan independent, nonprofit

 

degree-granting college or university, or a Michigan federal

 

tribally controlled community college, or Focus: HOPE, the

 

department shall pay mandatory fees for the current year and a per-

 

credit payment that does not exceed the average community college

 

in-district per-credit tuition rate as reported on August 1, for

 

the immediately preceding academic year.

 

     (6) A person participating in phase II may be eligible for

 

additional funds not to exceed $500.00 per semester or $400.00 per

 

term up to a maximum of $2,000.00 subject to the following

 

conditions:

 

     (a) Credits are earned in a 4-year program at a Michigan

 

degree-granting 4-year college or university.

 

     (b) The tuition reimbursement is for coursework completed

 

within 30 months of completion of the phase I requirements.

 

     (7) The department shall work closely with participating

 

institutions to develop an application and eligibility

 

determination process that will provide the highest level of

 

participation and ensure that all requirements of the program are

 

met.

 

     (8) Applications for the tuition incentive program may be

 

approved at any time after the student begins the sixth grade. If a

 

determination of financial eligibility is made, that determination

 

is valid as long as the student meets all other program

 

requirements and conditions.

 

     (9) Each institution shall ensure that all known available

 

restricted grants for tuition and fees are used prior to billing


 

the tuition incentive program for any portion of a student's

 

tuition and fees.

 

     (10) The department shall ensure that the tuition incentive

 

program is well publicized and that potentially eligible Medicaid

 

clients are provided information on the program. The department

 

shall provide the necessary funding and staff to fully operate the

 

program.

 

     Sec. 311. To enable the legislature and the state budget

 

director to evaluate the appropriation needs of higher education,

 

each independent college and university shall make available to the

 

legislature or state budget director, upon request, data regarding

 

grants for the preceding, current, and ensuing fiscal years.

 

     Sec. 312. From the funds appropriated in part 1 for nursing

 

scholarship and grant programs, the Michigan higher education

 

assistance authority shall administer any nursing scholarship or

 

nursing school grant programs authorized under the Michigan nursing

 

scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.

 

     Sec. 314. By December 1 of each year, the Michigan higher

 

education assistance authority shall submit a report to the state

 

budget director, the house and senate appropriations subcommittees

 

on higher education, and the house and senate fiscal agencies for

 

the preceding fiscal year on the children of veterans tuition grant

 

program. The report shall include, but is not limited to, the total

 

number of tuition grants paid by the authority in the preceding

 

fiscal year, the total dollar amount of those tuition grants, and

 

the number of students receiving tuition grants and the total

 

amount of those tuition grants at each eligible institution.


 

 

 

STATE UNIVERSITIES

 

     Sec. 402. 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. 405. The funds appropriated in part 1 for higher

 

education database modernization and conversion shall be expended

 

to maintain, coordinate, and improve the higher education

 

institutional data inventory (HEIDI) established under section 1299

 

of the management and budget act, 1984 PA 431, MCL 18.1299. The

 

advisory committee established under that section shall meet

 

regularly to review data definitions and requirements in order to

 

advise the state budget director regarding changes to those

 

definitions and requirements that would result in more useful and

 

reliable data being provided to state policymakers and university

 

officials.

 

     Sec. 426. (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. 433. (1) Included in part 1 is $3,042,000.00 for the

 

agricultural experiment station and $2,697,600.00 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, 2009, 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. 434. Included in the appropriation in part 1 for Michigan

 

State University is $80,000.00 for the Michigan future farmers of

 

America association. This $80,000.00 appropriation shall not

 

supplant any existing support that Michigan State University

 

provides to the Michigan future farmers of America association.

 

     Sec. 436. It is the intent of the legislature that if any

 

state university increases its resident undergraduate tuition and

 

required fees from academic year 2007-2008 to academic year 2008-

 

2009, then that university shall increase its fiscal year 2008-2009

 

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 2008-2009 general fund expenditures for

 

student financial aid compared to its projected fiscal year 2007-

 

2008 general fund expenditures for student financial aid, and its

 

projected academic year 2008-2009 resident undergraduate tuition

 

and required fee changes from academic year 2007-2008, to the state

 

budget director and the house and senate appropriations

 

subcommittees on higher education by November 15, 2008.

 

     Sec. 440. All universities shall submit the amount of tuition


 

and fees actually charged to a full-time resident undergraduate

 

student for academic year 2008-2009 as part of their higher

 

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

 

2008. A university shall report any revisions for any semester of

 

the reported academic year 2008-2009 tuition and fee charges to

 

HEIDI within 15 days of being adopted.

 

     Sec. 450. (1) For the fiscal year ending September 30, 2009,

 

it is the intent of the legislature that an amount calculated under

 

subsection (2) be allocated for per-student floor funding from the

 

general fund/general purpose unreserved balances at the close of

 

the 2007-2008 fiscal year.

 

     (2) The amount allocated under subsection (1) for per-student

 

floor funding is equal to $3,775.00 per 2006-2007 fiscal-year-

 

equated student at each university. The number of 2006-2007

 

students at a university is determined by reference to the higher

 

education institutional data inventory (HEIDI).

 

     Sec. 461. From the amount appropriated in part 1 to Lake

 

Superior State University for operations, $100,000.00 shall be paid

 

to Bay Mills Community College for the costs of waiving tuition for

 

North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

 

     Sec. 464. Each state university receiving an appropriation in

 

part 1 shall submit a plan by January 15, 2009 to the state budget

 

director, the house and senate appropriations subcommittees on

 

higher education, and the house and senate fiscal agencies on its

 

process to inform both the private and public sectors regarding

 

research and technology that could be developed commercially. If a

 

state university does not submit its plan by January 15, 2009, then


 

that state university will not be eligible to receive an allocation

 

from the technology commercialization incentive fund when it is

 

established.

 

     Sec. 466. The state universities shall coordinate their

 

purchases of goods and services whenever possible. This may

 

include, but is not limited to, group purchases for vehicles,

 

utilities, supplies, electronic equipment, maintenance equipment,

 

books, and contractual services. To the extent possible, the state

 

universities shall use both the "Michigan delivering extended

 

agreements locally" (MiDEAL) purchasing services of the state

 

department of management and budget that makes state contracts

 

available to local units of government, colleges, and universities

 

and the purchasing services available through the state's

 

membership in the Midwestern Higher Education Compact (MHEC). Not

 

later than January 1 of each year, the presidents council, state

 

universities of Michigan shall submit to the members of the house

 

and senate appropriations subcommittees on higher education, the

 

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

 

report on group or pooled purchases and the savings achieved by the

 

state universities in the previous fiscal year.

 

     Sec. 470. It is the intent of the legislature that each state

 

university receiving an appropriation in part 1 limit any annual

 

salary increase for its university president or chancellor to the

 

annual average percentage increase in the Detroit consumer price

 

index in the immediately preceding state fiscal year. As used in

 

this section, "Detroit consumer price index" means the most

 

comprehensive index of consumer prices available for the Detroit


 

area from the bureau of labor statistics of the United States

 

department of labor.

 

     Sec. 471. (1) It is the intent of the legislature that each

 

state university receiving an appropriation in part 1 limit any

 

changes to the general requirements or credits needed for a student

 

to graduate from a degree program while that student is enrolled in

 

that program.

 

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

 

university receiving an appropriation in part 1, to the extent

 

possible, provide sufficient counseling to students to facilitate

 

the timely graduation of those students.

 

     Sec. 472. It is the intent of the legislature that if a state

 

university receiving an appropriation in part 1 raised its

 

undergraduate resident tuition for the 2007-2008 academic year

 

based on the assumption that it would not receive the August 2007

 

appropriation payment delayed pursuant to Executive Order No. 2007-

 

3 and 2007 PA 17, the state university shall rebate to students any

 

amount of the tuition increase that was based on that assumption.

 

If the state university does not provide the tuition rebate

 

described in this section, the fiscal year 2008-2009 appropriation

 

for that state university shall be reduced by the same percentage

 

that tuition was increased by the state university because of its

 

assumption regarding the August 2007 payment.

 

 

 

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

 

     Sec. 501. (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 described in this section 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. 502. (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 the program described


 

in this section, 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. 503. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks select student support

 

services program for developing academically or economically

 

disadvantaged student retention programs for 4-year state and

 

independent educational institutions in this state. 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) An award made under the program described in this section

 

to any 1 institution shall not be greater than $150,000.00, and the

 

amount awarded shall be matched on a 70% state, 30% college or

 

university basis.

 

     (3) The program described in this section shall be

 

administered by the Michigan department of labor and economic

 

growth.


 

     Sec. 504. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks college/university

 

partnership program between 4-year state and independent colleges

 

and universities and public community colleges, which is intended

 

to increase the number of academically or economically

 

disadvantaged students who transfer from community colleges into

 

baccalaureate programs. 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 transfer student

 

population.

 

     (2) The grants shall be made under the program described in

 

this section to Michigan state and independent colleges and

 

universities. An award to any 1 institution shall not be greater

 

than $150,000.00, and the amount awarded shall be matched on a 70%

 

state, 30% college or university basis.

 

     (3) The program described in this section shall be

 

administered by the Michigan department of labor and economic

 

growth.

 

     Sec. 505. (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. 506. (1) Included in the appropriation in part 1 is

 

funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa

 

Parks initiative for the Morris Hood, Jr. educator development

 

program which is intended to increase the number of academically or

 

economically disadvantaged students who enroll in and complete K-12

 

teacher education programs at the baccalaureate level. 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 teacher education student

 

population.

 

     (2) The program described in this section shall be

 

administered by each state-approved teacher education institution

 

in a manner prescribed by the Michigan department of labor and

 

economic growth.

 

     (3) Approved teacher education institutions may and are

 

encouraged to use student support services funding in coordination

 

with the Morris Hood, Jr. funding to achieve the goals of the

 

program described in this section.

 

     Sec. 507. Each state institution of higher education receiving

 

funds under section 503, 504, or 506 shall notify the Michigan

 

department of labor and economic growth by April 15, 2009 as to

 

whether it will expend by the end of its fiscal year the funds


 

received under section 503, 504, or 506. Notwithstanding the award

 

limitations in sections 503 and 504, the amount of funding reported

 

as not being expended will be reallocated to the institutions that

 

intend to expend all funding received under section 503, 504, or

 

506.

 

 

 

STUDENT PERFORMANCE REPORTING

 

     Sec. 601. (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. 602. 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. 603. The state universities shall work with the state

 

community colleges to encourage the transfer of students from the

 

community colleges to the state universities and to facilitate the


 

transfer of credits from the community colleges to the state

 

universities.

 

 

 

GENERAL REPORTS AND AUDITS

 

     Sec. 701. (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, 2009.

 

     (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.

 

     (c) Student credit hours generated through credit by

 

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. 702. 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.

 

     (c) The rationale for not implementing a recommendation of the

 

auditor general or of implementing a recommendation as modified.

 

     Sec. 708. The auditor general may conduct performance audits

 

of state universities during the fiscal year ending September 30,

 

2009 as the auditor general considers necessary.

 

     Sec. 709. 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. 714. An institution receiving funds under this act and

 

also subject to the family educational rights and privacy act

 

(FERPA), 20 USC section 1232g, and 34 CFR part 99, shall, when

 

requested, provide information from the records of a student to any

 

person or persons to whom the student has authorized disclosure on

 

a written consent form pursuant to 34 CFR 99.30.

 

     Sec. 715. By December 1, 2008, the Michigan department of

 

labor and economic growth shall submit a report to the state budget

 

director, the house and senate appropriations committees, and the

 

house and senate fiscal agencies on the status of nursing education

 

in Michigan. The report shall include, but is not limited to, the

 

number of nursing degree programs offered at Michigan postsecondary

 

institutions, the type of nursing degrees offered (associate,

 

bachelor's, master's, doctoral), the number of available openings

 

for new nursing students, the number and type of faculty needed to

 

expand nursing education, and any barriers there may be to the

 

employment of more nurses in the state of Michigan.