<p class="p1 rtecenter"><img src="/sites/default/files/WARREN_1.jpg" width="360" height="283" alt="" /></p>
<p class="p1 rtecenter"><span style="color: rgb(0, 0, 255);"><span style="font-size: large;">Senator Rebekah Warren</span></span></p>
<p class="p2 rtecenter">&nbsp;</p>
<p class="p1 rtecenter"><span style="font-size: medium;">Washtenaw County: Ann Arbor, Ann Arbor Township, Augusta Township, Chelsea, Dexter Township, Freedom Township, Lima Township, Lyndon Township, Northfield Township, Pittsfield Township, Salem Township, Scio Township, Sharon Township, Superior Township, Sylvan Township, Webster Township, Ypsilanti, Ypsilanti Township</span></p>
<p class="p1 rtecenter"><strong><span style="color: rgb(128, 0, 0);"><span style="font-size: medium;">&nbsp;         2013 Senate Bill 223: Give tuition subsidies to all high school grads</span></span></strong></p>
<p class="p2 rtecenter">&nbsp;</p>
<p class="p1">&nbsp; &nbsp; Introduced by Sen. Rebekah Warren (D) has introduced Senate Bill 223 that would give all Michigan high school graduates up to five years of grants covering tuition in a state college or university. Funding would come from repealing $1.8 billion worth of current state tax deductions, exemptions and credits.</p>
<p class="p2">&nbsp;</p>
<p class="p1">&nbsp; &nbsp; This list of so-called &ldquo;tax expenditures&rdquo; from which this money would come includes both corporate welfare tax breaks and subsidies (which are often styled as tax &ldquo;credits&rdquo;), and potential expansions of various taxes paid by individuals (larger items include the 18 mill principle residence property tax exemption, the income tax personal exemption, and the sales tax on food exemption; the list also includes many smaller and more obscure items).&nbsp;</p>
<p class="p2">&nbsp;</p>
<p class="p1">Do you think this is a good idea?</p>
<p class="p2">&nbsp;</p>
<p class="p1">THE FOLLOWING IS THE CONTENT OF THE BILL AS INTRODUCED:</p>
<p class="MsoNormal"><br />
A bill to establish an educational grant program for eligible resident students who attend public community colleges and universities in this state; to provide for the administration of the program; to create the Michigan higher education grant trust fund; and to provide for the powers and duties of certain state governmental officers and entities. </p>
<p class="MsoNormal rtecenter">THE PEOPLE OF THE STATE OF MICHIGAN ENACT: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 1. This act shall be known and may be cited as the &quot;Michigan higher education grant act&quot;. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 3. As used in this act: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) &quot;Academic year&quot; means the period from September 1 of a calendar year to August 31 of the next calendar year. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) &quot;Authority&quot; means the Michigan higher education assistance authority created by 1960 PA 77, MCL 390.951 to 390.961. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) &quot;Community college&quot; means a community college organized under the community college act of 1966, 1966 PA 331, MCL 389.1 to 389.195, or a federal tribally controlled community college that is recognized under the tribally controlled colleges and universities assistance act of 1978, 25 USC 1801 to 1864, and is determined by the department of education to meet the requirements for accreditation by a recognized regional accrediting body. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) &quot;Eligible expenses&quot; means all of the following: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Tuition and fees charged by a state educational institution. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) A student's cost of attendance, expenses for books, supplies, transportation, and miscellaneous personal expenses, including a reasonable allowance for the documented rental or purchase of a personal computer, as described in 20 USC 1087ll(2), as determined by the authority. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) &quot;FAFSA&quot; means the free application for federal student aid developed under 20 USC 1082. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) &quot;Fiscal year&quot; means the fiscal year of this state. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) &quot;Michigan higher education grant&quot; means a grant awarded by the authority under section 7. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) &quot;Public university&quot; means a university described in section 4, 5, or 6 of article VIII of the state constitution of 1963. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;(i) &quot;Qualified program&quot; means a bachelor's degree, associate's degree, or postsecondary vocational training program at a state educational institution. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (j) &quot;State educational institution&quot; means a degree- or certificate-granting public university or community college in this state. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (k) &quot;Trust fund&quot; means the Michigan higher education grant trust fund established in section 11. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 5. (1) The Michigan higher education grant program is established. The authority shall administer the Michigan higher education grant program. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) The authority shall do all of the following: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Award grants to eligible students under this act. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Develop a grant agreement to be entered into by a grant recipient and the authority that contains the terms of a grant made under this act and the rights and obligations of the grant recipient and the authority. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Conduct periodic audits of grant recipients to ensure compliance with the terms of the grant agreement and take necessary steps to enforce the terms of the grant agreement. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) Promulgate any rules that it determines are necessary to implement and administer this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 7. Beginning in the 2013-2014 academic year, the authority shall award a grant under this act to an individual if the authority determines that he or she meets all of the following eligibility criteria: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Continuously resided in this state for the 12 months immediately preceding the date of his or her application and is not a resident of any other state. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Received a high school diploma from a school district, nonpublic school, or home school located in this state or successfully completed the general educational development (GED) test and received a GED certificate from this state. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Received the diploma or GED certificate described in subdivision (b) in the 2-year period preceding the date of the student's application to receive Michigan higher education grant money. If the student became a member of the United States armed forces or peace corps during this 2-year period and served for 4 years or less, the authority shall extend the 2-year period by a period equal to the number of days the student served as a member of the United States armed forces or peace corps. The authority may also extend the 2-year period if the authority determines that an extension is warranted because of an illness, disability, or other family emergency of the student or in the student's immediate family. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) Is enrolled or has been accepted into a qualified program. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) Signs a written grant agreement with the authority. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) Provides proof satisfactory to the authority that he or she has done both of the following: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Submitted a FAFSA to the United States department of education to determine his or her eligibility for federal grants or scholarships. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Applied for any grants or scholarships offered by this state for which he or she is eligible. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) If the student received a Michigan higher education grant in the preceding academic year, the student made satisfactory academic progress, as defined by the state educational institution in which the student is enrolled, since receiving the previous Michigan higher education grant. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) Is in compliance with this act and the rules promulgated under this act. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Meets any other eligibility criteria established in rules promulgated by the authority under section 5. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 9. All of the following apply to the award of a Michigan higher education grant under this act: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) In the 2013-2014 academic year, the base amount of the grant is an amount equal to the median cost of tuition for a full- time student enrolled at a public university in the 2012-2013 academic year, as determined by the department. For each subsequent academic year, the authority shall adjust the base amount of the grant to reflect the cumulative annual percentage change in the Detroit consumer price index in the preceding 1-year period, as determined by the state treasurer. As used in this subdivision, &quot;Detroit consumer price index&quot; means the most comprehensive index of consumer prices available for the Detroit area by the bureau of labor statistics of the United States department of labor. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) The authority shall determine the amount of a student's grant for an academic year by subtracting the amount of any other state or federal grants or scholarships he or she is eligible to receive in that academic year from the base amount established under subdivision (a). <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) A student shall use the grant money he or she receives in an academic year to pay for his or her tuition and fees at the state educational institution. If the amount of his or her grant exceeds the amount of his or her tuition and fees, the student may use the grant money to pay other eligible expenses related to that academic year. If the amount of his or her grant exceeds the amount of his or her fees and other eligible expenses in an academic year, the student shall return the remaining balance to the authority. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) A student attending a state educational institution as a full-time student may not receive a grant in more than 5 academic years. If a student is attending a state educational institution as at least a half-time student but is not a full-time student, the authority shall determine the number of academic years for which the student may receive a grant. A student attending an state educational institution less than half-time shall not receive a grant. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) The authority shall disburse a student's grant money to the state educational institution in which he or she is enrolled on the student's behalf, according to a payment procedure established by the authority by rule. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) The annual cost of the total number of grants paid in a fiscal year shall not exceed the amount appropriated by the legislature for Michigan higher education grants in that fiscal year. If there are not sufficient funds appropriated by the legislature to provide each student with a grant in the amount to which those students are eligible in an academic year, the authority shall establish a maximum grant level for that academic year. In any fiscal year, the authority may adjust the amount of a Michigan higher education grant available to eligible students, based upon its determination of available resources and amounts appropriated. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 11. (1) The Michigan higher education grant trust fund is established in the department of treasury. The trust fund shall consist of the following: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Money allocated to the trust fund as provided by law. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Money appropriated to the trust fund. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Donations of money made to the trust fund from any source. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(d) Interest and earnings from trust fund investments. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Money in the trust fund at the close of a fiscal year shall remain in the trust fund and shall not revert to the general fund. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) The state treasurer shall direct the investment of the trust fund. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4) The department of treasury is the administrator of the trust fund for auditing purposes. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 13. The department of treasury shall establish and administer a restricted account in the general fund for the Michigan higher education grant program. All of the following apply to the account: <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) The department of treasury shall credit to the account money appropriated from the trust fund or received from any other source, including, but not limited to, interest and earnings from account investments and any money returned to the authority under section 9(c). <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) The department of treasury shall use the money in the account only to provide money to the authority for grants awarded under this act. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Money in the account at the end of a fiscal year shall not revert to the general fund but shall be carried over in the account to the next fiscal year. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) The state treasurer shall direct the investment of the account. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) The department of treasury is the administrator of the account for auditing purposes. <o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sec. 15. By November 1 of each year, the authority shall submit a report on its activities under this act to the senate and house fiscal agencies and the state budget director. The report shall contain at least the number of Michigan higher education grants awarded, the maximum amount of a Michigan higher education grant paid, and the total amount paid out for Michigan higher education grants in the immediately preceding fiscal year.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Enacting section 1. It is the intent of the legislature that the first $1,800,000,000.00 savings realized from the elimination of tax expenditures identified by the legislative tax expenditure review commission described in chapter 7C of the legislative council act, 1986 PA 268, MCL 4.1771 to 4.1772, shall be used to fund the Michigan higher education grant trust fund created in section 11 of this act.<o:p></o:p></p>
<p class="MsoNormal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Enacting section 2. This act does not take effect unless Senate Bill No. 224&nbsp;of the 97th Legislature is enacted into law.&nbsp; <o:p></o:p></p>
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