HB-6302, As Passed Senate, December 13, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6302

     A bill to amend 1999 PA 94, entitled

"Michigan merit award scholarship act,"

by amending sections 2, 6, 7, 7a, 7b, and 8 (MCL 390.1452,

390.1456, 390.1457, 390.1457a, 390.1457b, and 390.1458), sections

2, 6, and 8 as amended and sections 7a and 7b as added by 2004 PA

595 and section 7 as amended by 2006 PA 241; and to repeal acts and

parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Approved postsecondary educational institution" means any

of the following:

     (i) A degree or certificate granting public or private college

or university, junior college, or community college.

     (ii) A service academy.

     (iii) An educational institution, other than an educational

institution described in subparagraph (i) or (ii), granting degrees,

certificates, or other recognized credentials and designated by the

board as an approved postsecondary educational institution.

     (iv) A program of an educational institution, other than an

educational institution described in subparagraph (i) or (ii),

granting degrees, certificates, or other recognized credentials and

designated by the board as an approved postsecondary educational

institution.

     (b) "Assessment test" means the middle school assessment test

,  or the high school assessment test. , or the Michigan merit

examination.

     (c) "Board" means the Michigan merit award board established

in this act.

     (d) "Department of career development" means the department of

career development created in Executive Order No. 1999-1.

     (e) "Eligible costs" means tuition and fees charged by an

approved postsecondary educational institution; related costs for

room, board, books, supplies, transportation, or day care; and

other costs determined by the board.

     (f) "Fiscal year" means the fiscal year of this state.

     (g) "High school assessment test" means the state assessments

described in section 1279 of the revised school code, 1976 PA 451,

MCL 380.1279, and section 104a of the state school aid act, 1979 PA

94, MCL 388.1704a.

     (h) "Michigan merit award scholarship" means a scholarship

awarded by the board under section 7 or 7a.

     (i) "Michigan merit examination" means the Michigan merit

examination described in section 1279g of the revised school code,

1976 PA 451, MCL 380.1279g, and section 104b of the state school

aid act of 1979, 1979 PA 94, MCL 388.1704b.

(i)  (j) "Middle school assessment test" means the Michigan

education assessment program (MEAP) subject area assessments given

in grades 7 and 8 or any successor assessment test designated by

the board.

(j)  (k)  "Qualifying results" means assessment test results,

scores, or ranges of scores determined by the board that qualify a 

pupil for a Michigan merit award scholarship under section 7 or 7a.

(k)  (l)  "Service academy" means the United States military

academy, United States naval academy, United States air force

academy, United States coast guard academy, or United States

merchant marine academy.

(l)  (m)  "State board" means the state board of education.

(m)  (n)  "Superintendent" means the superintendent of public

instruction.

     (o) "Tobacco settlement revenue" means money received by this

state that is attributable to the master settlement agreement

incorporated into a consent decree and final judgment entered on

December 7, 1998 in Kelley Ex Rel. Michigan v Philip Morris

Incorporated, et al., Ingham county circuit court, docket no. 96-

84281CZ.

(n)  (p)  "Trust fund" means the Michigan merit award trust

fund established in section  3  9 of the Michigan trust fund act,

2000 PA 489, MCL 12.259.

     Sec. 6. (1) The board shall conduct business in compliance

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. The

board shall give public notice of the time, date, and place of

meetings of the board in the manner required by the open meetings

act, 1976 PA 267, MCL 15.261 to 15.275.

     (2) The board shall meet not less than annually and shall keep

a record of its proceedings. The board shall make any writing

prepared, owned, used, in the possession of, or retained by the

board in the performance of an official function available to the

public in compliance with the freedom of information act, 1976 PA

442, MCL 15.231 to 15.246.

     (3) Except as provided in subsection (4), the board shall

obtain and make available to the public all of the qualifying

questions and answers, along with the corresponding answer key, to

a high school assessment test or a middle school assessment  test

administered  at least 3 and not more than 5 years earlier.  The

board shall obtain and make available to the public preparatory

materials for the Michigan merit examination that contain sample

test questions and correct answers.

     (4) If any question is designated by the state board of

education for use in a future high school assessment test or middle

school assessment test for validity purposes, the board may elect

not to make that question and the answer available to the public

under subsection (3) for a period of up to 2 years from the date

the assessment test that first includes the question is

administered.

     (5) By December 1 of each year, the board shall submit a

report on its activities to the governor and to the legislature.

The report shall contain all of the following information:

     (a) A list of approved postsecondary educational institutions

for the current and immediately preceding fiscal years.

     (b) The number of Michigan merit award scholarships awarded

and the total amount of Michigan merit award scholarship money paid

in the immediately preceding fiscal year.

     (c) A projection of revenues and expenditures from the trust

fund for the current fiscal year and the next 10 fiscal years.

     (d) The dollar amount of the Michigan merit award scholarships

available under sections 7 and 7a in the current fiscal year, the

amount of any adjustments to the dollar amount under sections  7(4)

7(3) and 7a(2) from the beginning of the immediately preceding

fiscal year, and any adjustments to the dollar amount projected for

the remainder of the current fiscal year or for the next fiscal

year.

     (e) All of the following results, scores, or ranges of scores:

     (i) Used as qualifying results in the immediately preceding

fiscal year.

     (ii) Determined by the board as qualifying results in the

current fiscal year.

     (iii) Projected by the board as qualifying results for the next

fiscal year.

     (f) For the immediately preceding fiscal year, the number of 

pupils who took the assessment tests, the number of pupils by

subject area who received qualifying results, the number of

graduating high school seniors who met the requirements for a

Michigan merit award scholarship, and the total number of pupils

who met the requirements for a Michigan merit award scholarship.

     (g) The number of persons participating in and the amount

awarded in the immediately preceding fiscal year under the tuition

incentive program described in section 310 of 2003 PA 144 or a

successor to that program.

     (6) At least 60 days before changing the results, scores, or

ranges of scores used as qualifying results, the board shall

provide written notice of its intent to change the results, scores,

or ranges of scores used as qualifying results, and a report

explaining the board's decision to change the results, scores, or

ranges of scores used as qualifying results, to the standing

committees of the senate and the house of representatives that have

primary jurisdiction over legislation pertaining to education. The

standing committees shall review the board's report and may hold

hearings on the board's decision.

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

established. The board shall administer the Michigan merit award

scholarship program.

     (2) Subject to  subsection (6) and section 7b(2) and (5), and

to adjustment under subsection  (4)  (3), each student enrolled in

grade 11 in or after the 1998-1999 school year and graduated from

high school before the 2006-2007 school year who meets the

eligibility requirements of this subsection and section 7b(1) is

eligible for the award of a $2,500.00 Michigan merit award

scholarship if the student is enrolled in an approved postsecondary

educational institution in this state or in a service academy.

Subject to subsection (6) and section 7b(2) and (5), and to

adjustment under subsection  (4)  (3), each student enrolled in

grade 11 in or after the 1998-1999 school year who graduated from

high school before the 2006-2007 school year and who meets the

eligibility requirements of this subsection and section 7b(1) is

eligible for the award of a $1,000.00 Michigan merit award

scholarship if the student is enrolled in an approved postsecondary

educational institution outside this state other than a service

academy. A student is eligible under this subsection if the board

finds that the student while in high school had taken the high

school assessment test in the subject areas of reading, writing,

mathematics, and science and met 1 of the following:

     (a) Received qualifying results in each of the subject areas

of reading, writing, mathematics, and science.

     (b) Did not receive qualifying results in 1 or 2 of the

subject areas of reading, writing, mathematics, and science, but

received an overall score in the top 25% of a nationally recognized

college admission examination.

     (c) Did not receive qualifying results in 1 or 2 of the

subject areas of reading, writing, mathematics, and science, but

received a qualifying score or scores as determined by the board on

a nationally recognized job skills assessment test designated by

the board.

     (3) Subject to subsection (6) and section 7b(5) and to

adjustment under subsection (4), each student enrolled in grade 11

in or after the 2006-2007 school year who meets the requirements of

section 7b(1) is eligible for the award of a $2,500.00 Michigan

merit award scholarship if the student is enrolled in an approved

postsecondary educational institution in this state or in a service

academy, if the board finds that the student while in high school

had taken the Michigan merit examination and met 1 of the

following:

     (a) Received qualifying results in each of the subject area

components of the Michigan merit examination.

     (b) Did not receive qualifying results in each of the subject

area components of the Michigan merit examination, but received an

overall score in the top 25% of a nationally recognized college

admission examination.

     (c) Did not receive qualifying results in each of the subject

area components of the Michigan merit examination, but received a

qualifying score or scores as determined by the board on a

nationally recognized job skills assessment test designated by the

board.

(3)  (4) In any fiscal year, the board may adjust the amount

of a Michigan merit award scholarship available to students

eligible under 1 or more of subsections (2)  , (3), and (5)  and

(4), based upon its determination of available resources and

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

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

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

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

adjustment under this subsection.

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

Michigan merit award scholarship under this section as a student

enrolled in an approved postsecondary educational institution

outside of this state other than a service academy enrolls in an

approved postsecondary educational institution in this state and

meets the requirements of section 7b(1), and subject to adjustment

under subsection  (4)  (3), the student is eligible for the award

of an additional $1,500.00 Michigan merit award scholarship.

     (6) If the United States department of education has not

approved the use of the Michigan merit examination for the purposes

of the federal no child left behind act of 2001, Public Law 107-

110, by December 31, 2006, all of the following apply:

     (a) Eligibility for a Michigan merit award scholarship under

this section shall be determined under subsection (2) until the

next calendar year that begins after that approval occurs.

     (b) Eligibility for a Michigan merit award scholarship under

this section shall be determined under subsection (3) beginning in

the next calendar year that begins after that approval occurs.

     Sec. 7a. (1) Subject to section 7b(2) and to adjustment under

subsection (2), a student who was enrolled in grade 7 in or after

the 1999-2000 school year and graduated from high school before the

2006-2007 school year, who meets the requirements of section 7b(1),

and who the board finds has taken the middle school assessment test

in each of the subject areas while in grades 7 and 8 is eligible

for 1 of the following Michigan merit award scholarships:

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

8 received qualifying results in 2 of the subject areas of reading,

writing, mathematics, and science, a Michigan merit award

scholarship of $250.00.

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

8 received qualifying results in 3 of the subject areas of reading,

writing, mathematics, and science, a Michigan merit award

scholarship of $375.00.

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

8 received qualifying results in all of the subject areas of

reading, writing, mathematics, and science, a Michigan merit award

scholarship of $500.00.

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

Michigan merit award scholarship available to students eligible

under subsection (1) based upon its determination of available

resources and amounts appropriated, but the board shall not

increase an amount by more than 5% in any fiscal year. The board

shall notify the governor, the speaker of the house of

representatives, and the majority leader of the senate in writing

at least 30 days before an adjustment under this subsection.

     Sec. 7b. (1) In addition to the requirements set forth in

section 7(2)  or (3) or section 7a(1), to be eligible for the

award of a Michigan merit award scholarship under this act, the

board must find that a student satisfies all of the following:

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

general educational development (GED) test or other graduate

equivalency examination approved by the state board.

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

general educational development (GED) test or other graduate

equivalency examination approved by the state board within 1 of the

following time periods:

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

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

preceding the student's application to receive his or her Michigan

merit award scholarship money.

     (ii) If the student graduated from high school on or after

March 1, 2002 and before the 2006-2007 school year, within the 4-

year period preceding the date of the student's application to

receive his or her Michigan merit award scholarship money, or if

the student becomes a member of the United States armed forces or

peace corps during this 4-year period and serves for 4 years or

less, the 4-year period is extended 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 board may also extend the 4-year period

if the board determines that an extension is warranted because of

an illness or disability of the student or in the student's

immediate family or another family emergency.

     (c) The student is enrolled in an approved postsecondary

educational institution. For students who qualify under section

7(2)(c), the student is enrolled in a vocational or technical

education program at an approved postsecondary educational

institution.

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

an assault, physical injury, or death.

     (e) The student satisfies any additional eligibility

requirements established by the board.

     (2) For a middle school assessment test or high school

assessment test administered after January 1, 2000, the board shall

not use that assessment test to determine eligibility for a

Michigan merit award scholarship under this section for a

particular year unless the board has reviewed and approved that

assessment test before it was administered for that year.

     (3) The board shall provide each pupil written notice of

whether or not the pupil is eligible for the award of 1 or more

Michigan merit award scholarships described in this act. If the

pupil is eligible, the written notice shall also contain the

Michigan merit award scholarship amount for which the pupil is

eligible, how the pupil applies for payment of Michigan merit award

scholarship, and any other information the board considers

necessary regarding qualification requirements or conditions

relating to the use of the Michigan merit award scholarship.

     (4) It is the intent of the legislature that the level of

pupil performance required to achieve qualifying results in a

subject area of an assessment test remains approximately the same,

and that the board not reduce the required level of pupil

performance as a means of increasing the number of Michigan merit

award scholarships awarded.

     (5) A pupil who does not initially receive qualifying results

shall be extended an opportunity to achieve the requisite

qualifying results by taking a subsequent assessment test.  A pupil

described in this subsection who is enrolled in grade 12 in the

2006-2007 school year, or enrolled in grade 12 in the first

calendar year after the approval described in section 7(6) occurs

if that subsection applies, may elect either of the following:

     (a) To take the high school assessment test for the purpose of

qualifying for a Michigan merit award scholarship under section

7(2).

     (b) To take the Michigan merit examination for the purpose of

qualifying for a Michigan merit award scholarship under section

7(3).

     (6) A nonpublic school pupil or home school pupil may take,

and the board shall administer if requested, an assessment test at

a site designated by the board.

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

used only to pay for eligible costs.

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

application for payment of a Michigan merit award scholarship by a

student eligible under this act and the procedure for payment to

the student or to an approved postsecondary educational institution

on the student's behalf, subject to 1 of the following, as

applicable:

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

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

Michigan merit award scholarship in 2 consecutive annual

installments rather than 1 lump sum for a student who graduates

from high school or passes the general educational development

(GED) test or approved graduate equivalency examination before

March 1, 2003.

     (b) For each student who graduates from high school or passes

the general educational development (GED) test or approved graduate

equivalency examination on or after March 1, 2003 and before March

1, 2004, the board shall pay a Michigan merit award scholarship in

2 consecutive annual installments, beginning in the state fiscal

year for which the student is otherwise eligible.  The first

installment shall not exceed 50% of the award amount, and the

second installment shall consist of the remaining award amount.

Verification that the student has met the enrollment criteria under

section  7b(1)(c) is required  before payment of the second

installment.

     (c) For each student who graduates from high school or passes

the general educational development (GED) test or approved graduate

equivalency examination on or after March 1, 2004 and before the

2006-2007 school year, the board shall pay a Michigan merit award

scholarship in 2 consecutive annual installments, beginning in the

state fiscal year that begins after the beginning of the academic

year for which the student is otherwise eligible.  The first

installment shall not exceed 50% of the award amount, and the

second installment shall consist of the remaining award amount.

Verification that the student has met the enrollment criteria under

section 7b(1)(c) is required  before payment of the second

installment.

     (3) An approved postsecondary educational institution shall

not consider a Michigan merit award scholarship in determining a

student's eligibility for a financial aid program administered by

this state. It is the intent of the legislature that an approved

postsecondary educational institution not reduce institutionally-

funded student aid because of the Michigan merit award scholarship

program.

     (4) Before payment of a Michigan merit award scholarship to a

student or an approved postsecondary educational institution, the

student shall certify or affirm in writing to the board each of the

following:

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

educational institution.

     (b) The name of the approved postsecondary educational

institution in which the student is enrolled.

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

scholarship only for eligible costs.

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

involving an assault, physical injury, or death.

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

general educational development (GED) test or approved graduate

equivalency examination within 1 of the following time periods:

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

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

preceding the date of the student's application to receive his or

her Michigan merit award scholarship.

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

before the 2006-2007 school year, within the 4-year period

preceding the date of the student's application to receive his or

her Michigan merit award scholarship, or within a period equal to 4

years plus the number of days the student served as a member of the

United States armed forces or peace corps if the student became a

member of the United States armed forces or peace corps during this

4-year period and served for 4 years or less. The board may also

extend the 4-year period if the board determines that an extension

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

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

     (5) The board shall not begin disbursing funds for a Michigan

merit award scholarship to a student or an approved postsecondary

educational institution on behalf of the student unless it receives

the request or application for payment, including the written

certification or affirmation described in this section, from the

student on or before 1 of the following dates, for disbursement in

that academic year:

     (a) In the 2002-2003 academic year, January 15.

     (b) In the 2003-2004 academic year, September 15 if the

student received notification of eligibility prior to August 1.

     (c) In the 2003-2004 academic year, November 15 if the student

received notification of eligibility on or after August 1.

     (d) In the 2004-2005 academic year, December 15.

     (e) In any other academic year, November 15.

     Enacting section 1. The Michigan merit award scholarship act,

1999 PA 94, MCL 390.1451 to 390.1459, is repealed effective

September 30, 2017.

     Enacting section 2. This amendatory act does not take effect

unless Senate Bill No. 1335 of the 93rd Legislature is enacted into

law.