HOUSE BILL No. 4551

 

April 9, 2003, Introduced by Reps. Dennis and O'Neil and referred to the Committee on Appropriations.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1999 PA 94, entitled                                              

                                                                                

    "Michigan merit award scholarship act,"                                     

                                                                                

    by amending sections 3, 7, and 8 (MCL 390.1453, 390.1457, and               

                                                                                

    390.1458), sections 7 and 8 as amended by 2002 PA 736.                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  (1) The Michigan merit award trust fund is                         

                                                                                

2   established in the department of treasury.  The trust fund shall            

                                                                                

3   consist only of interest and earnings from trust fund                       

                                                                                

4   investments, donations of money made to the trust fund from any             

                                                                                

5   source, and the following percentages of tobacco settlement                 

                                                                                

6   revenue:                                                                    

                                                                                

7       (a) Thirty percent of the tobacco settlement revenue received               

                                                                                

8   in fiscal year 1999-2000.                                                   

                                                                                

9       (b) Fifty percent of tobacco settlement revenue received in                 

                                                                                

10  fiscal year 2000-2001.                                                      

                                                                                


                                                                                

1       (c) Seventy-five percent of tobacco settlement revenue                      

                                                                                

2   received in fiscal year 2001-2002 and in  subsequent fiscal                 

                                                                                

3   years  fiscal year 2002-2003.                                               

                                                                                

4       (d) Thirty-three and four-tenths percent of tobacco                         

                                                                                

5   settlement revenue received in fiscal year 2003-2004 and in                 

                                                                                

6   subsequent fiscal years.                                                    

                                                                                

7       (2) Money in the trust fund at the close of a fiscal year                   

                                                                                

8   shall remain in the trust fund and shall not revert to the                  

                                                                                

9   general fund.                                                               

                                                                                

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

                                                                                

11  trust fund.                                                                 

                                                                                

12      Sec. 7.  (1) The Michigan merit award scholarship program is                

                                                                                

13  established.  The board shall administer the Michigan merit award           

                                                                                

14  scholarship program.                                                        

                                                                                

15      (2) Subject to adjustment under subsection  (6)  (5), each                  

                                                                                

16  student who meets the applicable requirements and conditions of             

                                                                                

17  this act and who is enrolled in grade 11 in  or after  the                  

                                                                                

18  1998-1999,  school year who meets the requirements of subsection            

                                                                                

19  (4), and subject to adjustment under subsection (5),  1999-2000,            

                                                                                

20  2000-2001, or 2001-2002 school year is eligible for the award of            

                                                                                

21  a $2,500.00 Michigan merit award scholarship if the student is              

                                                                                

22  enrolled in an approved postsecondary educational institution in            

                                                                                

23  this state or in a service academy, or the award of a $1,000.00             

                                                                                

24  Michigan merit award scholarship if the student is enrolled in an           

                                                                                

25  approved postsecondary educational institution outside this state           

                                                                                

26  other than a service academy.  , if  Each student who meets the             

                                                                                

27  requirements and conditions of this act and who is enrolled in              


                                                                                

1   grade 11 in or after the 2002-2003 school year is eligible for              

                                                                                

2   the award of a $500.00 Michigan merit award scholarship if the              

                                                                                

3   student is enrolled in an approved postsecondary educational                

                                                                                

4   institution in this state.                                                  

                                                                                

5       (3) A student is not eligible for a Michigan merit award                    

                                                                                

6   scholarship under subsection (1) unless the board finds that the            

                                                                                

7   student while in high school  has taken  took the assessment test           

                                                                                

8   in the subject areas of reading, writing, mathematics, and                  

                                                                                

9   science and meets 1 of the following:                                       

                                                                                

10      (a)  Has  He or she received qualifying results in each of                  

                                                                                

11  the subject areas of reading, writing, mathematics, and science.            

                                                                                

12      (b)  Did  He or she did not receive qualifying results in 1                 

                                                                                

13  or 2 of the subject areas of reading, writing, mathematics, and             

                                                                                

14  science, but received an overall score in the top 25% of a                  

                                                                                

15  nationally recognized college admission examination.                        

                                                                                

16      (c)  Did  He or she did not receive qualifying results in 1                 

                                                                                

17  or 2 of the subject areas of reading, writing, mathematics, and             

                                                                                

18  science, but received a qualifying score or scores as determined            

                                                                                

19  by the board on a nationally recognized job skills assessment               

                                                                                

20  test designated by the board.                                               

                                                                                

21      (3) Subject to subsection (6) and to adjustment under                       

                                                                                

22  subsection (5), a student who was enrolled in grade 7 in or after           

                                                                                

23  the 1999-2000 school year and who the board finds has taken the             

                                                                                

24  assessment test in each of the subject areas while in grades 7              

                                                                                

25  and 8 is eligible for 1 of the following additional Michigan                

                                                                                

26  merit award scholarships:                                                   

                                                                                

27      (a) If the board finds that the student while in grades 7 and               


                                                                                

1   8 received qualifying results in 2 of the subject areas of                  

                                                                                

2   reading, writing, mathematics, and science, an additional                   

                                                                                

3   Michigan merit award scholarship of $250.00.                                

                                                                                

4       (b) If the board finds that the student while in grades 7 and               

                                                                                

5   8 received qualifying results in 3 of the subject areas of                  

                                                                                

6   reading, writing, mathematics, and science, an additional                   

                                                                                

7   Michigan merit award scholarship of $375.00.                                

                                                                                

8       (c) If the board finds that the student while in grades 7 and               

                                                                                

9   8 received qualifying results in all of the subject areas of                

                                                                                

10  reading, writing, mathematics, and science, an additional                   

                                                                                

11  Michigan merit award scholarship of $500.00.                                

                                                                                

12      (4)  In addition to the requirements set forth in subsections               

                                                                                

13  (2) and (3), to  To be eligible for the award of  1 or both  a              

                                                                                

14  Michigan merit award  scholarships  scholarship under this                  

                                                                                

15  section, the board must find that a student satisfies all of the            

                                                                                

16  following:                                                                  

                                                                                

17      (a) The student has graduated from high school or passed the                

                                                                                

18  general educational development (GED) test or other graduate                

                                                                                

19  equivalency examination approved by the state board.                        

                                                                                

20      (b) The student graduated from high school or passed the                    

                                                                                

21  general educational development (GED) test or other graduate                

                                                                                

22  equivalency examination approved by the state board within 1 of             

                                                                                

23  the following time periods:                                                 

                                                                                

24                                                                               (i) If the student graduated from high school or passed the                         

                                                                                

25  test or examination before March 1, 2002, within the 7-year                 

                                                                                

26  period preceding the student's application to receive his or her            

                                                                                

27  Michigan merit award scholarship money.                                     


                                                                                

1       (ii) If the student graduated on or after March 1, 2002,                     

                                                                                

2   within the 4-year period preceding the date of the student's                

                                                                                

3   application to receive his or her Michigan merit award                      

                                                                                

4   scholarship money, or if the student becomes a member of the                

                                                                                

5   United States armed forces or peace corps during this 4-year                

                                                                                

6   period and serves for 4 years or less, the 4-year period is                 

                                                                                

7   extended by a period equal to the number of days the student                

                                                                                

8   served as a member of the United States armed forces or peace               

                                                                                

9   corps.  The board may also extend the 4-year period if the board            

                                                                                

10  determines that an extension is warranted because of an illness             

                                                                                

11  or disability of the student or in the student's immediate family           

                                                                                

12  or another family emergency.                                                

                                                                                

13      (c) The student is enrolled in an approved postsecondary                    

                                                                                

14  educational institution in this state.  For students who qualify            

                                                                                

15  under subsection  (2)(c)  (3)(c), the student is enrolled in a              

                                                                                

16  vocational or technical education program at an approved                    

                                                                                

17  postsecondary educational institution.                                      

                                                                                

18      (d) The student has not been convicted of a felony involving                

                                                                                

19  an assault, physical injury, or death.                                      

                                                                                

20      (e) The student is a citizen of the United States or a                      

                                                                                

21  permanent resident.                                                         

                                                                                

22      (f) The student has resided continuously in this state for                  

                                                                                

23  the immediately preceding 12 months and is not considered a                 

                                                                                

24  resident of any other state.                                                

                                                                                

25      (g)  (e)  The student satisfies any additional eligibility                  

                                                                                

26  requirements established by the board.                                      

                                                                                

27      (5) In any fiscal year, the board may adjust the amount of a                


                                                                                

1   Michigan merit award scholarship available to students eligible             

                                                                                

2   under  1 or more of subsections (2), (3), and  subsection (2) or            

                                                                                

3   (9), based upon its determination of available resources and                

                                                                                

4   amounts appropriated, but the board shall not increase an amount            

                                                                                

5   by more than 5% in any fiscal year.  The board shall notify the             

                                                                                

6   governor, the speaker of the house of representatives, and the              

                                                                                

7   majority leader of the senate in writing at least 30 days before            

                                                                                

8   an adjustment under this subsection.                                        

                                                                                

9       (6) For assessment tests administered after January 1, 2000,                

                                                                                

10  the board shall not use the assessment test to determine                    

                                                                                

11  eligibility for a Michigan merit award scholarship under this               

                                                                                

12  section for a particular year unless the board has reviewed and             

                                                                                

13  approved the assessment test before it was administered for that            

                                                                                

14  year.                                                                       

                                                                                

15      (7) The board shall provide each student written notice of                  

                                                                                

16  whether or not the student is eligible for the award of 1 or more           

                                                                                

17  Michigan merit award scholarships described in this section.  If            

                                                                                

18  the student is eligible, the written notice shall also contain              

                                                                                

19  the Michigan merit award scholarship amount for which the student           

                                                                                

20  is eligible, how the student applies for payment of Michigan                

                                                                                

21  merit award scholarship, and any other information the board                

                                                                                

22  considers necessary regarding qualification requirements or                 

                                                                                

23  conditions relating to the use of the Michigan merit award                  

                                                                                

24  scholarship.                                                                

                                                                                

25      (8) It is the intent of the legislature that the level of                   

                                                                                

26  student performance required to achieve qualifying results in a             

                                                                                

27  subject area of an assessment test remains approximately the                


                                                                                

1   same, and that the board not reduce the required level of student           

                                                                                

2   performance as a means of increasing the number of Michigan merit           

                                                                                

3   award scholarships awarded.                                                 

                                                                                

4       (9) If a student who has previously received a $1,000.00                    

                                                                                

5   Michigan merit award scholarship as a student enrolled in an                

                                                                                

6   approved postsecondary educational institution outside of this              

                                                                                

7   state other than a service academy enrolls in an approved                   

                                                                                

8   postsecondary educational institution in this state and meets the           

                                                                                

9   requirements of subsection (4), and subject to adjustment under             

                                                                                

10  subsection (5), the student is eligible for the award of an                 

                                                                                

11  additional $1,500.00 Michigan merit award scholarship.                      

                                                                                

12      (10) A pupil who does not initially receive qualifying                      

                                                                                

13  results shall be extended an opportunity to achieve the requisite           

                                                                                

14  qualifying results by taking a subsequent assessment test.                  

                                                                                

15      (11) A nonpublic school student or home school student may                  

                                                                                

16  take, and the board shall administer if requested, an assessment            

                                                                                

17  test at a site designated by the board.                                     

                                                                                

18      Sec. 8.  (1) A Michigan merit award scholarship shall be                    

                                                                                

19  used only to pay for eligible costs.                                        

                                                                                

20      (2) The board shall determine the manner and form of                        

                                                                                

21  application for payment of a Michigan merit award scholarship by            

                                                                                

22  a student eligible under section 7 and the procedure for payment            

                                                                                

23  to the student or to the approved postsecondary educational                 

                                                                                

24  institution on the student's behalf.                                        

                                                                                

25      (3) As determined by the board, upon the request of a student               

                                                                                

26  or parent or legal guardian of a minor student, the board may pay           

                                                                                

27  a Michigan merit award scholarship in 2 consecutive annual                  


                                                                                

1   installments rather than 1 lump sum for a student who graduates             

                                                                                

2   from high school or passes the general educational development              

                                                                                

3   (GED) test or approved graduate equivalency examination before              

                                                                                

4   March 1, 2003.  For each student who graduates from high school             

                                                                                

5   or passes the general educational development (GED) test or                 

                                                                                

6   approved graduate equivalency examination on or after March 1,              

                                                                                

7   2003 and before March 1, 2004, the board shall pay a Michigan               

                                                                                

8   merit award scholarship in 2 consecutive annual installments,               

                                                                                

9   beginning in the state fiscal year for which the student is                 

                                                                                

10  otherwise eligible under section 7.  The first installment shall            

                                                                                

11  not exceed 50% of the award amount, and the second installment              

                                                                                

12  shall consist of the remaining award amount.  Verification that             

                                                                                

13  the student has met the enrollment criteria under section 7(4)(c)           

                                                                                

14  is required prior to issuance of the second installment.  For               

                                                                                

15  each student who graduates from high school or passes the general           

                                                                                

16  educational development (GED) test or approved graduate                     

                                                                                

17  equivalency examination on or after March 1, 2004, the board                

                                                                                

18  shall pay a Michigan merit award in 1 lump sum in the state                 

                                                                                

19  fiscal year beginning in the academic year for which the student            

                                                                                

20  is otherwise eligible under section 7.                                      

                                                                                

21      (4)  (2)  An approved postsecondary educational institution                 

                                                                                

22  shall not consider a Michigan merit award scholarship in                    

                                                                                

23  determining a student's eligibility for a financial aid program             

                                                                                

24  administered by this state.  It is the intent of the legislature            

                                                                                

25  that an approved postsecondary educational institution not reduce           

                                                                                

26  institutionally-funded student aid because of the Michigan merit            

                                                                                

27  award scholarship program.                                                  


                                                                                

1       (5)  (3)  Before payment of a Michigan merit award                          

                                                                                

2   scholarship to a student or approved postsecondary educational              

                                                                                

3   institution, the student shall certify or affirm in writing to              

                                                                                

4   the board each of the following:                                            

                                                                                

5       (a) That the student is enrolled at an approved postsecondary               

                                                                                

6   educational institution.                                                    

                                                                                

7       (b) The name of the approved postsecondary educational                      

                                                                                

8   institution in which the student is enrolled.                               

                                                                                

9       (c) That the student agrees to use the Michigan merit award                 

                                                                                

10  scholarship only for eligible costs.                                        

                                                                                

11      (d) That the student has not been convicted of a felony                     

                                                                                

12  involving an assault, physical injury, or death.                            

                                                                                

13      (e) That the student graduated from high school or passed the               

                                                                                

14  general educational development (GED) test or approved graduate             

                                                                                

15  equivalency examination within 1 of the following time periods:             

                                                                                

16                                                                               (i) If the student graduated from high school or passed the                         

                                                                                

17  test or examination before March 1, 2002, within the 7-year                 

                                                                                

18  period preceding the date of the student's application to receive           

                                                                                

19  his or her Michigan merit award scholarship.                                

                                                                                

20      (ii) If the student graduated on or after March 1, 2002,                     

                                                                                

21  within the 4-year period preceding the date of the student's                

                                                                                

22  application to receive his or her Michigan merit award                      

                                                                                

23  scholarship, or within a period equal to 4 years plus the number            

                                                                                

24  of days the student served as a member of the United States armed           

                                                                                

25  forces or peace corps if the student became a member of the                 

                                                                                

26  United States armed forces or peace corps during this 4-year                

                                                                                

27  period and served for 4 years or less.  The board may also extend           


                                                                                

1   the 4-year period if the board determines that an extension is              

                                                                                

2   warranted because of an illness or disability of the student or             

                                                                                

3   in the student's immediate family or another family emergency.              

                                                                                

4       (6)  (4)  The board shall not begin disbursing funds for a                  

                                                                                

5   Michigan merit award scholarship to a student or an approved                

                                                                                

6   postsecondary educational institution on behalf of the student              

                                                                                

7   unless it receives the request or application for payment,                  

                                                                                

8   including the written certification or affirmation described in             

                                                                                

9   this section, from the student on or before January 15 in the               

                                                                                

10  2002-2003 academic year,  and  or on or before September 15 in              

                                                                                

11  any other academic year, for disbursement in that academic year.