HB-5444, As Passed Senate, December 17, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5444

     A bill to amend 2008 PA 525, entitled

"Foster care trust fund act,"

by amending the title and sections 1, 2, 3, 9, 10, and 11 (MCL

722.1021, 722.1022, 722.1023, 722.1029, 722.1030, and 722.1031) and

by adding sections 7a and 7b; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to establish the foster care fostering futures

scholarship trust fund in the department of human services; to

establish the state foster care board; to prescribe the powers and

duties of the state foster care board; treasury; to provide for the

distribution of the money from the fund; to prescribe the powers

and duties of certain agencies and officials; and to provide for

appropriations.

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

"foster care "fostering futures scholarship trust fund act".

     Sec. 2. As used in this act:

     (a) "Board" means the state foster care trust fund board

created in section 4.

     (b) "Children's ombudsman office" means the children's

ombudsman office created in section 3 of the children's ombudsman

act, 1994 PA 204, MCL 722.923.

(a) (c) "Department" means the department of human

services.treasury.

     (d) "Foster care programs" means public or private programs

that provide 24-hour substitute care for a child who is placed out

of his or her parental or legal guardian's home and under the

supervision of the department as a temporary or permanent ward of

the court or public ward placed in a supervising agency's care

under chapter XIIA of the probate code of 1939, 1939 PA 288, MCL

712A.1 to 712A.32, and includes children who cannot remain at home

because their families are unable to provide minimal care and

supervision.

(b) (e) "Trust fund" or "fund" means the foster care fostering

futures scholarship trust fund created in section 3.

     (f) "Juvenile justice program" means a public or private

program where a child is placed out of his or her parental or legal

guardian's home and under the supervision of the department as a

temporary ward of the court under chapter XIIA of the probate code

of 1939, 1939 PA 288, MCL 712A.1 to 712A.32, or a temporary public

ward under the youth rehabilitation services act, 1974 PA 150, MCL

803.301 to 803.309.

     (g) "Local councils" means a public or private community

collaborative that sets the agenda for local collaborative

activities for children in, or aging out of, foster care programs

and juvenile justice programs, that works within the community to

focus resources on common needs and outcomes of children in foster

care, and that acts as the common community voice with state

agencies on issues of strengthening responses to these youths'

needs.

     (h) "Public ward" means either of the following:

     (i) That term as defined under section 2 of the youth

rehabilitation services act, 1974 PA 150, MCL 803.302.

     (ii) A youth whose parents' parental rights have been

terminated and who is legally free for adoption.

     Sec. 3. (1) The foster care fostering futures scholarship

trust fund is created in the state treasury as a charitable and

educational endowment fund. Money in the trust fund shall be

expended only as provided in this section. The board department

shall be the administrator of the trust fund for auditing purposes

and all powers, purposes, and duties of the trust fund shall be

exercised by the board.department.

     (2) The state treasurer shall credit to the trust fund all

amounts appropriated for this purpose under section 435 of the

income tax act of 1967, 1967 PA 281, MCL 206.435, any amounts

received under section 9 of this act, and interest and earnings

accrued from the saving and investment of that money.

     (3) The state treasurer shall direct the investment of the

trust fund.

     (4) Not more than 1/2 of the balance of the money contributed

to the trust fund each year, plus the interest and earnings,

excluding unrealized gains and losses, credited to the trust fund

during the previous fiscal year Except as provided in subsections

(6) and (7), all money contributed to the fund annually, plus 5% of

the 12-quarter rolling average of the fund, including unrealized

gains and losses, shall be available for disbursement upon the

authorization of the board department as provided in section 10.

     (5) Money in the trust fund shall be available for

disbursement upon appropriation.

     (6) No money shall be expended from the trust fund until the

date that the deposits credited into the trust fund from all

sources as provided under this section equal or exceed

$800,000.00.$500,000.00. No money shall be expended from the trust

fund if the amount in the trust fund is less than $500,000.00 or if

the expenditure will cause the amount remaining in the trust fund

to be less than $500,000.00.

     (7) No appropriations shall be made from the trust fund until

the date that the deposits credited into the trust fund from all

sources equal or exceed $800,000.00.$500,000.00. No money shall be

appropriated from the trust fund if the amount in the trust fund is

less than $500,000.00 or if the appropriation will cause the amount

remaining in the trust fund to be less than $500,000.00.

     (8) All expenses authorized under this act or necessary to

implement this act shall only be funded by the trust fund created

in this section.

     (9) Money in the trust fund at the close of the year shall

remain in the trust fund and shall not lapse to the general fund.

     (10) The trust fund administrative costs shall not exceed 15%

of the amount in the trust fund over $500,000.00.

     Sec. 7a. (1) The department shall work with the department of

human services to serve to provide an opportunity for individuals

and organizations to make contributions to go toward providing

scholarships to eligible current and former foster care students.

     (2) The department shall collaborate with any institution of

higher education in this state as determined by the department to

assist current and former foster care students who have unmet

financial education needs and assist in the effort to create

sustainable futures for those foster care students.

     (3) Any money provided by the department under this act shall

only be used for tuition, fees, room, board, books, supplies, and

equipment required for enrollment.

     (4) The department may enter into contracts with public or

private agencies to fulfill the requirements of this act.

     Sec. 7b. A foster care student is eligible for a fostering

futures scholarship if all of the following apply:

     (a) Due to child abuse or child neglect, the foster care

student was in foster care after his or her thirteenth birthday.

     (b) The foster care student is attending an institution of

higher education in this state as determined by the department.

     (c) The foster care student has an unmet financial education

need.

     (d) The foster care student has completed the application and

provided the department with the required documentation.

     (e) The foster care student maintains satisfactory academic

progress as determined by the department.

     Sec. 9. (1) The board department may do any of the following:

     (a) Accept federal money granted by congress or executive

order for the purposes of this act as well as gifts, grants,

bequests, and donations from individuals, private organizations, or

foundations. The acceptance and use of federal money does not

commit state money and does not place an obligation upon the

legislature to continue the purposes for which the federal money is

made available.

     (b) Plan, manage, or conduct a campaign to solicit gifts,

bequests, grants, or donations of money or property, or pledges of

gifts, bequests, grants, or donations.

     (2) Money received in the manner described in subsection (1)

shall be transmitted to the state treasurer for deposit in the

trust fund.

Sec. 10. (1) The board department may authorize the

disbursement of available money from the trust fund, upon

legislative appropriations, as provided in section 3, for the

following purposes:

     (a) To fund a private nonprofit or public organization in the

development or operation of a foster care program if the

organization demonstrates an ability to match, through money or in-

kind services, 50% of the amount of any fund money received and the

organization demonstrates a willingness and ability to provide

program models and consultation to organizations and communities

regarding program development and maintenance. The amount and types

of in-kind services are subject to the approval of the board.

Before expending any money from the fund, the board shall establish

qualifying criteria for expending those funds or awarding any

grants and may specify any conditions for each expenditure or

grant.

     (b) To to fund the board created in section 4 for the actual

and necessary operating expenses that the board department incurs

in performing its duties under this act. Authorizations for

disbursement of trust fund money under this subsection section

shall be kept at a minimum in furtherance of the primary purpose of

the trust fund. , which is to disburse money to encourage the

direct provision of services to foster care.

     (2) Trust fund money shall not be disbursed to a foster care

student until after that foster care student has exhausted all

other known available restricted grants for qualified educational

expenses for postsecondary education provided by a federal, state,

or local governmental entity, as determined by the department,

except for funds provided under the Michigan promise zone authority

act, 2008 PA 549, MCL 390.1661 to 390.1679.

     (3) Money provided by the department on behalf of a foster

care student under this act shall not exceed the cost of that

foster care student's tuition, fees, room, board, books, supplies,

and equipment required for enrollment at the institution of higher

education as determined by the department.

     Sec. 11. (1) The board department shall annually prepare an

accounting of revenues and expenditures from the trust fund. This

House Bill No. 5444 (H-2) as amended September 23, 2014

accounting shall be prepared using generally accepted accounting

principles and in a manner that will provide detailed and itemized

information regarding the revenues and expenditures of the trust

fund. This accounting shall be provided to the senate and house of

representatives appropriations committees.

     (2) To the extent practical, the board department shall

annually prepare an accounting of revenues and expenditures from

the trust fund for persons who have donated to the fund. This

accounting does not need to be as detailed as the accounting

required under subsection (1), but shall include general

information about the amount of revenue raised, the types of

expenditures made, and what the expenditures were made for.

     [(3) The department shall annually provide to the house and senate appropriations committee chairs a report that includes all of the following information:

     (a) The number of foster children who utilized the fostering futures scholarship program in the year the report is prepared.

     (b) The number of foster children who received money from the fostering futures scholarship program and completed a college education in the year the report is prepared.

     (c) The amount of money provided annually from the fostering futures scholarship program to each foster child in the year that the report is prepared.

     (d) The administrative costs for the fostering futures scholarship program for the year that the report is prepared.]

     Enacting section 1. Sections 4, 5, 6, 7 and 8 of the foster

care trust fund act, 2008 PA 525, MCL 722.1024, 722.1025, 722.1026,

722.1027, and 722.1028, are repealed.