Bill Text: MI SB0359 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Higher education: financial aid; eligibility for the promise zone scholarship; modify under certain circumstances. Amends secs. 3 & 7 of 2008 PA 549 (MCL 390.1663 & 390.1667).

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2019-06-05 - Referred To Committee On Appropriations [SB0359 Detail]

Download: Michigan-2019-SB0359-Introduced.html

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SENATE BILL No. 359

 

 

June 5, 2019, Introduced by Senators LASATA, BUMSTEAD, HORN and ANANICH and referred to  the Committee on Appropriations.

 

 

 

     A bill to amend 2008 PA 549, entitled

 

"Michigan promise zone authority act,"

 

by amending sections 3 and 7 (MCL 390.1663 and 390.1667), section 3

 

as amended by 2013 PA 210 and section 7 as amended by 2016 PA 9.

 

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 Federal Register by the

 

United States department of health and human services 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 that has legislative powers.

 

     (f) "Intermediate school district" means that term as defined

 

in section 4 of the revised school code, 1976 PA 451, MCL 380.4.

 

     (g) (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.

 

     (h) (g) "Nonpublic school" means that term as defined in

 

section 5 of the revised school code, 1976 PA 451, MCL 380.5.

 

     (i) (h) "Promise of financial assistance" means a commitment

 

by an eligible entity to provide financial resources for public or

 

private postsecondary education, including a vocational program, to

 

eligible students living in a promise zone and who have graduated

 

from a 1 of the following:

 

     (i) A public high school or nonpublic high school located

 

within that promise zone.

 

     (ii) For eligible students who live in the geographic area of

 

a dissolved school district that was located within the promise

zone before being dissolved under section 12 of the revised school

 

code, 1976 PA 451, MCL 380.12, a public high school or nonpublic

 

high school located in the geographic area of the intermediate

 

school district to which the dissolved school district, before

 

dissolution, had been a constituent district.

 

     (iii) For eligible students who live in the geographic area of

 

a school district that is located within the promise zone and that

 

ceased operating a high school after January 1, 2020, a public high

 

school or nonpublic high school located in the geographic area of

 

the intermediate school district to which the school district is a

 

constituent district.

 

     (j) (i) "Promise zone" means that area created by a governing

 

body under this act.

 

     (k) (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.

 

     (l) (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.

 

     (m) (l) "Public school" means that term as defined in section

 

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

 

     (n) (m) "Qualified educational expenses" means tuition and

 

fees required for the enrollment or attendance of a student at an

 

educational institution and expenses for fees, books, supplies, and

 

equipment required for courses of instruction at that educational

 

institution.

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

 

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

 

     (p) (o) "State education tax" means the tax levied under the

 

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

 

     (q) (p) "Vocational program" means an education or training

 

program intended to teach a trade, occupation, or vocation and

 

offered by a public or private postsecondary institution in this

 

state.

 

     Sec. 7. (1) A promise zone authority created under section 5

 

shall prepare a promise zone development plan.

 

     (2) A promise zone development plan shall must 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 must include, but is not limited to, a promise of financial

 

assistance to all eligible students residing within the promise

 

zone and who graduate from a public high school or nonpublic high

 

school located within that promise zone, described in section

 

3(i)(i), (ii), or (iii), in an amount established by the board to

 

reflect the amount available for disbursement to eligible students

 

and included in the annual budget under section 15. The amount of

 

proposed promise of financial assistance shall, must, at a minimum,

 

equal or exceed the amount the board determines is sufficient to

 

pay for the qualified educational expenses for an eligible student

 

to obtain an associate degree at a community or junior college in

 

this state, and shall must not exceed the amount the board

 

determines is sufficient to pay for the qualified educational

expenses for an eligible student 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 that does not exceed the average amount of

 

qualified educational expenses 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, including, but not limited to, any 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.

 

     (ii) If the promise of financial assistance will be restricted

 

to students who have resided within the promise zone, or who

 

attended a public high school or nonpublic high school within the

 

promise zone described in section 3(i)(i), (ii), or (iii), for a

 

minimum number of years.

 

     (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.

     (iv) If the promise of financial assistance is restricted to

 

attendance at 1 or more public or private postsecondary

 

institutions in this state.

 

     (v) If the promise of financial assistance is limited to

 

students whose cumulative high school grade point average exceeds a

 

specified minimum. However, a board may revise, establish, or

 

eliminate a high school grade point average requirement for

 

students after it submits a promise zone development plan to the

 

department of treasury and is not required to amend the plan or

 

obtain approval from the department of treasury for that change.

 

     (vi) If the promise of financial assistance is limited to

 

students who comply with requirements established by the board in

 

order to improve student progress toward degree completion.

 

     (vii) If the promise of financial assistance in a promise zone

 

that encompasses more than 2 school districts is limited to

 

students who reside in and graduate from high schools located

 

within the boundaries of fewer than all of its constituent school

 

districts.

 

     (c) A requirement that graduates of a public high school or

 

nonpublic high school exhaust all other known and available

 

restricted grants for qualified educational expenses 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 388.1896,

 

shall 388.1897l, must not be included as a method of raising the

necessary funds. The promise zone development plan shall must 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.

 

     (f) A complete description of the criteria and procedures by

 

which the performance of students receiving financial assistance

 

pursuant to the proposed plan will be assessed and reported. This

 

assessment and reporting methodology shall must include, but is not

 

limited to, the submission of a written report by no later than

 

October 31 of each year to the department of treasury. This annual

 

report shall must include the following information, which may be

 

obtained, in whole or in part, from any reliable source that

 

complies with applicable laws regarding student privacy:

 

     (i) The number of students who received financial assistance

 

pursuant to the authority's approved promise zone development plan

 

during the prior academic year.

 

     (ii) Of those students accounted for under subparagraph (i),

 

the number who successfully completed the following:

 

     (A) A certificate or associate program.

 

     (B) A bachelor's program.

 

     (iii) Of those students accounted for under subparagraph (i),

 

the number who withdrew from classes during the prior academic

year.

 

     (iv) Of those students accounted for under subparagraph (i)

 

who initially reached successful completion of more than the

 

equivalent of 23 semester credits during the prior academic year,

 

the average time to successfully complete the equivalent of 24

 

semester credits.

 

     (v) The 6-year graduation rate for recipients of financial

 

assistance pursuant to the authority's approved promise zone

 

development plan.

 

     (3) The proposed promise of financial assistance under

 

subsection (2) shall must not include funding for attendance at a

 

public or private postsecondary institution not located in this

 

state.

 

     (4) The board shall submit the promise zone development plan

 

to the department of treasury within 5 years after the eligibility

 

to establish the promise zone was certified by the department of

 

treasury under section 4(4). If a promise zone development plan is

 

not submitted within this time frame, the department of treasury

 

may dissolve the promise zone. The promise zone development plan

 

shall must be published on the website of the eligible entity that

 

established the promise zone.

 

     (5) The department of treasury shall review the 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 must 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 must be considered

 

approved. If proposed amendments are approved, the department of

 

treasury shall certify that the amendments meet all requirements

 

under this act.

 

     (7) A promise zone development plan approved under this act

 

before the effective date of the amendatory act that added this

 

subsection shall February 16, 2016 must be amended as necessary to

 

meet the assessment and reporting requirements described in

 

subsection (2)(f). That The amendment shall must include a first

 

annual reporting deadline not later than October 31, 2017. That The

 

board shall submit the amendment shall be submitted by the board to

 

the department of treasury within 60 days after the effective date

 

of the amendatory act that added this subsection February 16, 2016,

 

and the amendment is subject to the review process set forth in

subsection (6).