June 23, 2010, Introduced by Rep. Melton and referred to the Committee on Education.
A bill to amend 2008 PA 549, entitled
"Michigan promise zone authority act,"
by amending sections 3, 5, 7, 15, and 17 (MCL 390.1663, 390.1665,
390.1667, 390.1675, and 390.1677).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Authority" means a promise zone authority created under
this act.
(b) "Board" means the governing body of an authority.
(c) "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.
(d) "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.
(e) "Governing body" means the elected body of an eligible
entity having legislative powers.
(f) "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.
(g) "Nonpublic school" means that term as defined in section 5
of the revised school code, 1976 PA 451, MCL 380.5.
(h) "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.
(i) "Promise zone" means that area created by a governing body
under this act.
(j) "Promise zone development plan" means that plan developed
by an authority under this act that will ensure that the financial
resources are available to adequately fund the promise of financial
assistance.
(k) "Public high school" means a public school that includes
grades 9 to 12 or 10 to 12 and that awards a high school diploma.
(l) "Public school" means that term as defined in section 5 of
the revised school code, 1976 PA 451, MCL 380.5.
(m) "School district" means that term as defined in the
revised school code, 1976 PA 451, MCL 380.1 to 380.1852.
(n) "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 the department of treasury certifies the
eligibility of a governing body to establish a promise zone and the
governing body, by resolution, establishes a promise zone under the
Michigan promise zone act, the governing body shall, by resolution,
create a promise zone authority.
(2) An authority is a public body corporate that may sue and
be sued in any court of this state. An authority possesses all the
powers necessary to carry out its purpose. The enumeration of a
power in this act shall not be construed as a limitation upon the
general powers of an authority.
(3) An authority shall be under the supervision and control of
a board consisting of 11 members. Nine members shall be appointed
by the chief executive officer of the eligible entity with the
advice and consent of the governing body. One member shall be
appointed by the senate majority leader. One member shall be
appointed by the speaker of the house of representatives. Not more
than
3 members shall be government elected
officials or employees
of the governing body. One member shall be a representative of the
public school community. Of the members first appointed, an equal
number of the members, as near as is practicable, shall be
appointed for 1 year, 2 years, 3 years, and 4 years. A member shall
hold office until the member's successor is appointed. After the
initial appointment, each member shall serve for a term of 4 years.
An appointment to fill a vacancy shall be made by the chief
executive officer of the eligible entity for the unexpired term
only. Members of the board shall serve without compensation, but
may be reimbursed for actual and necessary expenses. The
chairperson of the board shall be elected by the board. As used in
this
subsection: , for
(a) For a local school district or an intermediate school
district, "chief executive officer" means the superintendent of the
local school district or intermediate school district.
(b) "Elected official" means an individual who holds an
elective federal office or an elective office in any state or local
government.
(4) Before assuming the duties of office, a member of an
authority shall qualify by taking and subscribing to the
constitutional oath of office.
(5)
The proceedings and rules of the a board are subject to
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. The board
shall adopt rules governing its procedure and the holding of
regular
meetings. , subject to the approval of the governing body.
Special meetings may be held if called in the manner provided in
the rules of the board.
(6)
After having been given providing
the member with notice
and
an opportunity to be heard, a member of the board may be
removed
for cause by the governing body board
by a majority vote of
its members then in office may remove a member of the board for
cause.
(7) A writing prepared, owned, used, in the possession of, or
retained
by the a board in the performance of an official function
is subject to the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
Sec. 7. (1) A promise zone authority created under section 5
shall prepare a promise zone development plan.
(2)
The A promise zone development plan shall include, but is
not limited to, all of the following:
(a) A complete description of the proposed promise of
financial assistance. The proposed promise of financial assistance
shall include, but is not limited to, a promise of financial
assistance to all students residing within the promise zone and who
graduate from a public high school or nonpublic high school located
within that promise zone. The proposed promise of financial
assistance shall, at a minimum, provide funding sufficient to
provide an eligible student the tuition necessary to obtain an
associate degree or its equivalent at a community or junior college
in this state or combination of community or junior colleges in
this state and, at most, provide funding sufficient to provide an
eligible student the tuition necessary to obtain a bachelor's
degree or its equivalent at a public postsecondary institution in
this state or combination of public postsecondary institutions in
this state, subject to any limitations authorized under this
section. The proposed promise of financial assistance may also, at
most, provide funding for an eligible student to attend a private
college in this state in an amount not to exceed the average
tuition necessary to obtain a bachelor's degree at all public
universities in this state. The proposed promise of financial
assistance may also authorize the expenditure of funds for
educational improvement activities designed to increase readiness
for postsecondary education at public schools located in the
promise zone.
(b) A complete description of any limitation on the promise of
financial
assistance. ; if However,
the approval of the department
of treasury is required for an authority to include any limitation
on the promise of financial assistance in the promise zone
development plan, unless that limitation is 1 of the following:
(i) If the promise of financial assistance will be prorated
based on the number of years the student has resided within the
promise
zone. ; if
(ii) If the promise of financial assistance will be restricted
to students who have resided within or attended a public high
school or nonpublic high school within the promise zone for a
minimum
number of years. ; if
(iii) If the promise of financial assistance is predicated on
the student maintaining a minimum college grade point average and
carrying
a minimum college credit hour classload.
; or if
(iv) If the promise of financial assistance is limited to
students whose cumulative high school grade point average exceeded
a certain minimum. However, a limitation described in this
subparagraph may not include a minimum cumulative high school grade
point average of more than 2.5.
(v) If the promise of financial assistance is restricted to
attendance at 1 or more public or private postsecondary
institutions in this state.
(c) A requirement that graduates of a public high school or
nonpublic high school exhaust all other known and available
restricted grants for tuition and fees for postsecondary education
provided by a federal, state, or local governmental entity, as
determined by the board.
(d) How the funds necessary to accomplish the promise of
financial assistance will be raised. Any amount received under the
state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772,
shall not be included as a method of raising the necessary funds.
The promise zone development plan shall be financed from 1 or more
of the following sources:
(i) Donations.
(ii) Revenues.
(iii) Money obtained from other sources approved by
the
governing
body or otherwise authorized by
law.
(e) An actuarial model of how much the proposed plan is
estimated to cost, based on actuarial formulas developed by the
department of treasury.
(3)
The A proposed promise of financial assistance under
subsection (2) shall not include funding for attendance at a public
or private postsecondary institution not located in this state.
(4)
The A board shall submit the a promise
zone development
plan prepared under this section to the department of treasury
promptly after its adoption. The promise zone development plan
shall be published on the website of the eligible entity that
established the promise zone.
(5)
The department of treasury shall review the a promise
zone
development plan submitted under subsection (4). Not more than 60
days after receipt of a promise zone development plan submitted
under subsection (4), the department of treasury shall either
approve the promise zone development plan or provide a written
notice of deficiencies. If the department of treasury does not
approve a promise zone development plan submitted under subsection
(4) or provide a written notice of deficiencies within 60 days, the
promise zone development plan shall be considered approved. If a
promise zone development plan is approved, the department of
treasury shall certify that the promise zone development plan meets
all requirements under this act and is sustainable.
(6) The department of treasury shall review any proposed
amendments to a promise zone development plan. Not more than 60
days after receipt of proposed amendments to a promise zone
development plan, the department of treasury shall either approve
the proposed amendments or provide a written notice of
deficiencies. If the department of treasury does not approve
proposed amendments or provide a written notice of deficiencies
within 60 days, the proposed amendments shall be considered
approved. If proposed amendments are approved, the department of
treasury shall certify that the amendments meet all requirements
under this act.
Sec.
15. The director of the an
authority shall submit a
budget to the board for the operation of the authority for each
fiscal year before the beginning of the fiscal year. The budget
shall be prepared in the manner and contain the information
required
of municipal departments. After review by the board, the
budget
shall be submitted to the governing body. The governing body
must
approve the budget before the board may adopt the budget.
Unless
authorized by the governing body, funds of the eligible
entity
shall not be included in the budget of the authority.
Sec.
17. (1) The An authority shall determine the base year
for calculating the amount of incremental growth for the capture of
the
state education tax as provided in this section. The However,
the
initial base year is the amount of
revenue received from the
collection
of the state education tax in the promise zone in the
calendar year immediately preceding the year in which an authority
makes
its initial tuition payment in accordance with under the
promise
of financial assistance or the amount of revenue received
from
the collection of the state education tax in the promise zone
in
any 1 of the 3 immediately succeeding years, whichever is less
zone development plan, and the authority may only change the base
year to 1 of the 3 immediately succeeding calendar years.
(2)
If the an authority continues to make annual payments in
accordance
with the promise of financial assistance, in the year
immediately
succeeding the base year determined in subsection (1)
and
each year thereafter, this state shall capture 1/2 of the
increase
in revenue, if any, from the collection of the state
education
tax. This state under the
promise zone development plan,
each year the department shall determine the amount by which the
state education tax revenue from the promise zone exceeds the
revenue in the base year determined under subsection (1) for each
tax collecting unit that collects state education tax in the
promise zone and shall authorize the authority to capture 1/2 of
that amount from the proceeds of the state education tax in each of
those tax collecting units.
(3) An authority shall not capture any revenue from the
collection
of the state education tax under this act subsection (2)
if that revenue is subject to capture under any other law of this
state.
Proceeds from the capture of the state education tax under
this
section shall be deposited in the state treasury and credited
to
a restricted fund to be used solely for the purposes of this
act.
If an area of this state is
within 2 or more promise zones
because the boundaries of those zones overlap, only the first
authority that is authorized to capture state education tax revenue
from that area under subsection (2) may capture state education tax
revenue from that area.
(3)
If the authority continues to make annual tuition payments
in
accordance with the promise of financial assistance, 2 years
after
the authority's initial payment of financial assistance and
each
year thereafter, this state shall pay to the authority the
state
education tax captured under subsection (2). If the
boundaries
of 2 or more promise zones created under this act
overlap,
payments under this section shall only be made to the
first
authority eligible for payment under this subsection.
(4)
If at any time the an authority does not make annual
tuition
payments in accordance with the promise for financial
assistance,
any amount captured from that promise zone in the
restricted
fund created under subsection (2) shall be paid into the
school
aid fund established in section 11 of article IX of the
state
constitution of 1963 under
the promise zone development plan,
the department shall discontinue authorizing the capture of state
education tax revenue under subsection (2).
(5) For purposes of this section, payments under this section
shall not be included in determining payments for financial
assistance in the immediately preceding year.