HOUSE BILL No. 5470

 

November 28, 2007, Introduced by Reps. Caswell and Stahl and referred to the Committee on Education.

 

     A bill to amend 1931 PA 327, entitled

 

"An act to provide for the organization, regulation and

classification of corporations; to provide their rights, powers and

immunities; to prescribe the conditions on which corporations may

exercise their powers; to provide for the inclusion of certain

existing corporations within the provisions of this act; to

prescribe the terms and conditions upon which foreign corporations

may be admitted to do business within this state; to require

certain annual reports to be filed by corporations; to prescribe

penalties for the violations of the provisions of this act; and to

repeal certain acts and parts of acts relating to corporations,"

 

by amending section 184a (MCL 450.184a), as added by 2006 PA 420.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 184a. (1) An ecclesiastical corporation that meets all of

 

the following criteria was incorporated under this act before

 

January 1, 2009 may organize and operate a religious college under

 

this section. :

 

     (a) The ecclesiastical corporation was incorporated under this


 

act before January 1, 2007.

 

     (b) At the time it organizes the religious college, according

 

to the most recent federal decennial census, the ecclesiastical

 

corporation is located in a county with a population of more than

 

17,500 and fewer than 23,500 residents.

 

     (2) A religious college organized and operated under this

 

section must meet all of the following criteria:

 

     (a) The religious college is organized and operated by an

 

ecclesiastical corporation as a division of the ecclesiastical

 

corporation and is not separately incorporated.

 

     (b) The religious college began operating before January 1,

 

2007 2009.

 

     (c) The ecclesiastical corporation retains control of the

 

religious college for denominational purposes.

 

     (d) The religious college has an academic advisory board to

 

assist the religious college in the development of its educational

 

programs. The board shall consist of at least 4 individuals,

 

appointed by the ecclesiastical corporation, who represent similar

 

religious colleges located in the United States.

 

     (e) The religious college offers postsecondary educational

 

programs that are solely designed for, directed toward, and

 

attended by students who seek to learn the particular religious

 

faith or beliefs of the ecclesiastical corporation.

 

     (f) The sole purposes of the educational programs of the

 

religious college are to prepare students for ordination or

 

appointment as a member of the clergy of a church, denomination, or

 

religious association, order, or sect or to enter into other


 

vocations directly related to the particular faith of the

 

ecclesiastical corporation.

 

     (g) The religious college does not offer general or liberal

 

arts educational programs or any other postsecondary educational

 

programs other than those described in this subsection.

 

     (3) All of the following apply to the name of a religious

 

college organized and operated by an ecclesiastical corporation

 

under this section:

 

     (a) The ecclesiastical corporation may use the word "college"

 

in the name of the religious college. However, immediately

 

following the name of the religious college, the ecclesiastical

 

corporation shall clearly and prominently indicate on any signs,

 

official school publications, letterhead, business cards, websites,

 

or other similar written documents that include the name of the

 

religious college that the religious college is a division of the

 

ecclesiastical corporation.

 

     (b) If the ecclesiastical corporation uses the word "college"

 

in the name of the religious college, it shall provide a copy of

 

each certificate of assumed name filed by the ecclesiastical

 

corporation with the department of labor and economic growth for

 

the name of the religious college to the bureau of career education

 

within the department of labor and economic growth.

 

     (4) Subject to subsection (5), a religious college may award 1

 

of the following degrees to a student of the religious college who

 

satisfactorily completes a course of study prescribed by the

 

ecclesiastical corporation for that degree:

 

     (a) If the course of study requires at least 60 semester hours


 

or equivalent of study, an associate of biblical studies, an

 

associate of religious studies, an associate of theology, an

 

associate of church administration, or another substantially

 

similar associate degree that does not include the word "arts",

 

"science", "business", or "applied".

 

     (b) If the course of study requires at least 120 semester

 

hours or equivalent of study, a bachelor of biblical studies, a

 

bachelor of religious studies, a bachelor of theology, or another

 

substantially similar bachelor's degree that does not include the

 

word "arts", "science", "business", or "applied".

 

     (c) If the course of study requires a bachelor's degree and at

 

least 30 additional semester hours or equivalent of study, a master

 

of theology, a master of biblical studies, a master of religious

 

studies, or another substantially similar master's degree that does

 

not include the word "arts", "science", "business", or "applied".

 

     (d) If the course of study requires a bachelor's degree and at

 

least 90 additional semester hours or equivalent of study,

 

including, but not limited to, dissertation credits or research

 

study, a doctor of theology, a doctor of biblical studies, a doctor

 

of religious studies, or another substantially similar doctoral

 

degree that does not include the word "arts", "science",

 

"business", or "applied".

 

     (5) A religious college shall clearly and prominently state

 

all of the following on a student's diploma, certificate of

 

graduation, transcript, or any other document prepared by or

 

provided by the religious college to establish or verify that the

 

student had attended the religious college or completed a course of


 

study at the religious college:

 

     (a) For a degree awarded by the religious college, the name of

 

the degree, including the religious limitation on that degree

 

required under subsection (4). A religious limitation required for

 

a degree title under subsection (4) shall immediately precede or be

 

part of the degree title wherever the degree title appears in the

 

diploma or other document.

 

     (b) That the religious college is not licensed, approved, or

 

otherwise endorsed by the state of Michigan.

 

     (c) For any document described in this subsection other than a

 

diploma, that the state of Michigan does not guarantee that any of

 

the degrees or credits granted by the religious college will be

 

recognized by any organization for any purpose.

 

     (6) A diploma, certificate of graduation, or other evidence of

 

attendance at a religious college entitles the lawful recipient to

 

all the privileges and immunities that by custom or usage are

 

allowed to holders of similar diplomas or certificates granted by

 

similar institutions in this country. However, if an occupation or

 

profession is regulated by statute as to the requirements and

 

qualifications necessary to the practice of that occupation or

 

profession, the diploma or certificate of graduation does not

 

entitle the recipient to any privilege or immunity if those

 

statutory requirements or qualifications are not complied with.

 

     (7) An ecclesiastical corporation is not required to obtain

 

the approval of or a license from the department of labor and

 

economic growth to operate a religious college under this section

 

in this state and the operation of the religious college and its


 

educational programs are not subject to the supervision of that

 

department. However, if an ecclesiastical corporation does not

 

obtain the approval of or a license from the department of labor

 

and economic growth to operate a religious college, the

 

ecclesiastical corporation shall clearly and prominently print a

 

disclaimer on all of its application materials, course catalogs,

 

brochures, websites, and other similar publications that states all

 

of the following:

 

     (a) The religious college is a division of the ecclesiastical

 

corporation.

 

     (b) The educational programs offered by the religious college

 

are solely designed for, directed toward, and attended by students

 

preparing for ordination or appointment as a member of the clergy

 

of a church, denomination, or religious association, order, or sect

 

or preparing to enter into another vocation directly related to the

 

particular faith of the ecclesiastical corporation.

 

     (c) The religious college is not licensed, approved, or

 

otherwise endorsed by the state of Michigan and that the state of

 

Michigan does not guarantee that any of the degrees or credits

 

granted by the religious college will be recognized by any

 

organization for any purpose.

 

     (8) In any application materials, course catalogs, brochures,

 

websites, or other publications made available by the religious

 

college, the religious college shall include the religious

 

limitation on that degree required under subsection (4), either

 

immediately preceding or as part of the degree title, wherever the

 

degree title appears in the document or publication.


 

     (9) Every 2 years, an ecclesiastical corporation organizing or

 

operating a religious college shall submit a sworn affidavit to the

 

department of labor and economic growth that certifies that the

 

religious college complies with the requirements of this section

 

and includes all of the following:

 

     (a) The name of the religious college. The name stated in the

 

affidavit must comply with subsection (3).

 

     (b) A statement that the religious college offers only

 

educational programs designed for, directed toward, and attended by

 

students preparing for ordination or appointment as a member of the

 

clergy of a church, denomination, or religious association, order,

 

sect, or preparing to enter into another vocation directly related

 

to the particular faith of the ecclesiastical corporation.

 

     (c) A statement that each diploma, certificate of graduation,

 

transcript, or other document described in subsection (5) prepared

 

or provided by the religious college complies with that subsection.

 

     (d) A statement that each document provided or publication

 

made available by the religious college under subsection (8)

 

complies with that subsection.

 

     (e) A statement that the religious college does not accept

 

state or federal assistance for its educational programs and does

 

not accept students who are receiving state or federal financial

 

aid under any higher education loan, grant, or scholarship program.

 

     (10) An ecclesiastical corporation organizing or operating a

 

religious college shall annually provide the department with a

 

surety bond that meets all of the following:

 

     (a) It is conditioned to provide indemnification to any


 

student suffering loss because of inability to complete an

 

educational program at the religious college due to the closing of

 

the religious college.

 

     (b) It expires on June 30 following the date of issuance and

 

the ecclesiastical corporation shall submit proof of renewal for an

 

additional 1-year period to the department of labor and economic

 

growth before the date of expiration.

 

     (c) The amount of the security bond is 1 of the following,

 

whichever is higher:

 

     (i) An amount determined by multiplying the number of students

 

enrolled in the religious college by $200.00.

 

     (ii) The amount of $5,000.00.

 

     (11) An ecclesiastical corporation operating a religious

 

college that is in compliance with the requirements of this section

 

is authorized to conduct business as a religious college and offer

 

postsecondary educational programs in this state.