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SB-0273, As Passed Senate, June 16, 2005

SUBSTITUTE FOR

SENATE BILL NO. 273

A bill to make appropriations for the state institutions of

higher education and certain state purposes related to education

for the fiscal year ending September 30, 2006; to provide for the

expenditures of those appropriations; and to prescribe the powers

and duties of certain state departments, institutions, agencies,

employees, and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this act, the

amounts listed in this part are appropriated for higher education

for the fiscal year ending September 30, 2006, from the funds

indicated in this part. The following is a summary of the

appropriations in this part:

HIGHER EDUCATION

APPROPRIATION SUMMARY:

Full-time equated classified positions............ 1.0

GROSS APPROPRIATION.................................... $ 1,706,938,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ 1,706,938,100

Federal revenues:

Total federal revenues................................. 3,500,000

Special revenue funds:

Total local revenues................................... 0

Total private revenues................................. 0

Total other state restricted revenues.................. 146,500,000

State general fund/general purpose..................... $ 1,556,938,100

Sec. 102. CENTRAL MICHIGAN UNIVERSITY

Operations............................................. $ 80,645,400

GROSS APPROPRIATION.................................... $ 80,645,400

Appropriated from:

Special revenue funds:

Michigan merit award trust fund........................ 538,440

State general fund/general purpose..................... $ 80,106,960

Sec. 103. EASTERN MICHIGAN UNIVERSITY

Operations............................................. $ 76,115,400

GROSS APPROPRIATION.................................... $ 76,115,400

Appropriated from:

State general fund/general purpose..................... $ 76,115,400

Sec. 104. FERRIS STATE UNIVERSITY

Operations............................................. $ 48,386,100

GROSS APPROPRIATION.................................... $ 48,386,100

Appropriated from:

State general fund/general purpose..................... $ 48,386,100

Sec. 105. GRAND VALLEY STATE UNIVERSITY

Operations............................................. $ 69,590,300

GROSS APPROPRIATION.................................... $ 69,590,300

Appropriated from:

Special revenue funds:

Michigan merit award trust fund........................ 5,000,000

State general fund/general purpose..................... $ 64,590,300

Sec. 106. LAKE SUPERIOR STATE UNIVERSITY

Operations............................................. $ 12,564,600

GROSS APPROPRIATION.................................... $ 12,564,600

Appropriated from:

State general fund/general purpose..................... $ 12,564,600

Sec. 107. MICHIGAN STATE UNIVERSITY

Operations............................................. $ 284,108,500

Agricultural experiment station........................ 33,163,800

Cooperative extension service.......................... 28,604,300

GROSS APPROPRIATION.................................... $ 345,876,600

Appropriated from:

State general fund/general purpose..................... $ 345,876,600

Sec. 108. MICHIGAN TECHNOLOGICAL UNIVERSITY

Operations............................................. $ 48,292,500

GROSS APPROPRIATION.................................... $ 48,292,500

Appropriated from:

State general fund/general purpose..................... $ 48,292,500

Sec. 109. NORTHERN MICHIGAN UNIVERSITY

Operations............................................. $ 40,474,300

GROSS APPROPRIATION.................................... $ 40,474,300

Appropriated from:

State general fund/general purpose..................... $ 40,474,300

Sec. 110. OAKLAND UNIVERSITY

Operations............................................. $ 51,429,200

GROSS APPROPRIATION.................................... $ 51,429,200

Appropriated from:

Special revenue funds:

Michigan merit award trust fund........................ 1,941,768

State general fund/general purpose..................... $ 49,487,432

Sec. 111. SAGINAW VALLEY STATE UNIVERSITY

Operations............................................. $ 27,892,200

GROSS APPROPRIATION.................................... $ 27,892,200

Appropriated from:

Special revenue funds:

Michigan merit award trust fund........................ 2,019,792

State general fund/general purpose..................... $ 25,872,408

Sec. 112. UNIVERSITY OF MICHIGAN-ANN ARBOR

Operations............................................. $ 320,327,500

GROSS APPROPRIATION.................................... $ 320,327,500

Appropriated from:

State general fund/general purpose..................... $ 320,327,500

Sec. 113. UNIVERSITY OF MICHIGAN-DEARBORN

Operations............................................. $ 24,358,200

GROSS APPROPRIATION.................................... $ 24,358,200

Appropriated from:

State general fund/general purpose..................... $ 24,358,200

Sec. 114. UNIVERSITY OF MICHIGAN-FLINT

Operations............................................. $ 20,886,600

GROSS APPROPRIATION.................................... $ 20,886,600

Appropriated from:

State general fund/general purpose..................... $ 20,886,600

Sec. 115. WAYNE STATE UNIVERSITY

Operations............................................. $ 203,570,400

GROSS APPROPRIATION.................................... $ 203,570,400

Appropriated from:

State general fund/general purpose..................... $ 203,570,400

Sec. 116. WESTERN MICHIGAN UNIVERSITY

Operations............................................. $ 109,203,500

GROSS APPROPRIATION.................................... $ 109,203,500

Appropriated from:

State general fund/general purpose..................... $ 109,203,500

Sec. 117. STATE AND REGIONAL PROGRAMS

Full-time equated positions......................... 1.0

Higher education database modernization and

conversion--1.0 FTE positions........................ $ 200,000

Collegiate employment research institute............... 100,000

Midwestern higher education compact.................... 90,000

GROSS APPROPRIATION.................................... $ 390,000

Appropriated from:

State general fund/general purpose..................... $ 390,000

Sec. 118. MARTIN LUTHER KING, JR.-CESAR CHAVEZ-ROSA

PARKS PROGRAM

Select student supportive services..................... $ 1,956,100

Michigan college/university partnership program........ 586,800

Morris Hood, Jr. educator development program.......... 148,600

GROSS APPROPRIATION.................................... $ 2,691,500

Appropriated from:

State general fund/general purpose..................... $ 2,691,500

Sec. 119. GRANTS AND FINANCIAL AID

State competitive scholarships ........................ $ 34,630,500

Tuition grants......................................... 58,768,100

Michigan work-study program............................ 7,326,300

Part-time independent student program.................. 2,653,300

Michigan education opportunity grants.................. 2,084,200

Robert C. Byrd honors scholarship program.............. 1,500,000

Nursing scholarship program............................ 4,000,000

Michigan merit award program........................... 101,281,400

Tuition incentive program.............................. 12,000,000

GROSS APPROPRIATION.................................... $ 224,243,800

Appropriated from:

Federal revenues:

Higher education act of 1965, title IV, 20 USC......... 2,000,000

Higher education act of 1965, title IV, part A......... 1,500,000

Special revenue funds:

Michigan merit award trust fund........................ 137,000,000

State general fund/general purpose..................... $ 83,743,800

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2005-2006 is $1,703,438,100.00 and

state spending from state resources to be paid to local units of

government for fiscal year 2005-2006 is $3,759,100.00. The itemized

statement below identifies the estimated appropriations from which

spending to local units of government will occur:

Part-time independent student program.................. $ 1,255,700

Michigan education opportunity grant................... 932,900

Michigan work-study.................................... 1,570,500

TOTAL.................................................. $ 3,759,100

Sec. 202. The appropriations authorized under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 208. Unless otherwise specified, the institutions of

higher education receiving appropriations in part 1 shall use the

Internet to fulfill the reporting requirements of this act. This

requirement may include transmission of reports via electronic mail

to the recipients identified for each reporting requirement, or it

may include placement of reports on an Internet or Intranet site.

Sec. 209. Funds appropriated in part 1 shall not be used for

the purchase of foreign goods or services, or both, if

competitively priced and of comparable quality American goods and

services, or both, are available. Preference should be given to

goods or services, or both, manufactured or provided by Michigan

businesses if they are competitively priced and of comparable

value.

Sec. 212. (1) The funds appropriated in part 1 to state

institutions of higher education shall be paid out of the state

treasury and distributed by the state treasurer to the respective

institutions in 11 equal monthly installments on the sixteenth of

each month, or the next succeeding business day, beginning with

October 17, 2005. Except for Wayne State University, each

institution shall accrue its July and August 2006 payments to its

institutional fiscal year ending June 30, 2006.

(2) All universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For universities with fiscal years

ending June 30, 2005, these data shall be submitted to the state

budget director by October 15, 2005. Universities with a fiscal

year ending September 30, 2005 shall submit preliminary HEIDI data

by November 15, 2005 and final data by December 15, 2005. If a

university fails to submit HEIDI data and associated financial aid

program information in accordance with this reporting schedule, the

state treasurer shall withhold the monthly installments under

subsection (1) to the university until those data are submitted.

(3) A detailed description of procedures utilized to arrive at

the amounts appropriated in part 1 shall be submitted to each

institution by the senate and house fiscal agencies.

Sec. 213. Funds received by the state from the federal

government or private sources for the use of a college or

university are appropriated for the purposes for which they are

provided. The acceptance and use of federal or private funds do not

place an obligation upon the legislature to continue the purposes

for which the funds are made available.

Sec. 214. If section 274 of the income tax act of 1967, 1967

PA 281, MCL 206.274, is not repealed and if a state institution of

higher education that receives funds under this act notifies the

department of treasury regarding its tuition and fee rates in order

to qualify as an eligible institution for the Michigan tuition tax

credit under section 274 of the income tax act of 1967, 1967 PA

281, MCL 206.274, the institution shall also submit the

notification and applicable documentation of tuition and fee

changes to the house and senate fiscal agencies.

Sec. 215. A state institution of higher education that

receives funds under this act shall furnish all program and

financial information that is required by and in a manner

prescribed by the state budget director or the house or senate

appropriations committee.

GRANTS AND FINANCIAL AID

Sec. 301. (1) Payments of the amounts included in part 1 for

the state competitive scholarship program shall be distributed

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

(2) The Michigan higher education assistance authority shall

implement a proportional competitive scholarship maximum award

level for recipients enrolled less than full-time in a given

semester or term.

(3) If a student who receives an award under this section has

his or her tuition and fees paid under the Michigan educational

trust program, pursuant to the Michigan education trust act, 1986

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

funds awarded under this section may be used for educational

expenses other than tuition and fees.

(4) If the Michigan higher education assistance authority

increases the maximum award per eligible student from that provided

in the previous fiscal year, it shall not have the effect of

reducing the number of eligible students receiving awards in

relation to the total number of eligible applicants. Any increase

in the maximum grant shall be proportional for all eligible

students receiving awards.

Sec. 302. (1) The amounts appropriated in part 1 for the state

tuition grant program shall be distributed pursuant to 1966 PA 313,

MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible

Michigan residents who apply before July 15, 2005 and who are

qualified. Tuition grant awards shall not be made to students newly

enrolled in a juris doctor law degree program after the 1995-96

academic year.

(3) The Michigan higher education assistance authority shall

determine an actual maximum tuition grant award per student that

ensures that the aggregate payments for the tuition grant program

do not exceed the appropriation contained in part 1 for the state

tuition grant program. By December 15, 2005, and again by February

1, 2006, the authority shall analyze the status of award

commitments, shall make any necessary adjustments, and shall

confirm that those award commitments will not exceed the

appropriation contained in part 1 for the tuition grant program.

The determination and actions shall be reported to the state budget

director and the house and senate fiscal agencies no later than

February 15, 2006. If award adjustments are necessary, the students

shall be notified of the adjustment by the third Monday in

February.

(4) Any unexpended and unencumbered funds remaining on

September 30, 2006 from the amounts appropriated in part 1 for the

tuition grant program shall not lapse on September 30, 2006, but

shall continue to be available for expenditure for tuition grants

provided in the 2006-2007 fiscal year. The use of these unexpended

fiscal year 2005-2006 funds shall terminate at the end of the 2006-

2007 fiscal year.

(5) The Michigan higher education assistance authority shall

continue a proportional tuition grant maximum award level for

recipients enrolled less than full-time in a given semester or

term.

(6) If the Michigan higher education assistance authority

increases the maximum award per eligible student from that provided

in the previous fiscal year, it shall not have the effect of

reducing the number of eligible students receiving awards in

relation to the total number of eligible applicants. Any increase

in the maximum grant shall be proportional for all eligible

students receiving awards for fiscal year 2005-2006.

(7) All Ferris State University students enrolled at Kendall

College of Art and Design prior to January 1, 2001 who were

qualified for the state tuition grant shall continue to receive the

dollar amount of the state tuition grant for which they were

eligible until they graduate or are no longer enrolled in the

Kendall College of Art and Design at Ferris State University.

Sec. 303. (1) Included in the appropriation in part 1 is

funding for the Michigan work-study program established under 1986

PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to

390.1332. An effort should be made by each institution

participating in the Michigan work-study program to assure that not

less than 10% of those undergraduate, graduate, and professional

students eligible to participate in the program are placed with

for-profit employers no later than December 31 of each year for

which funding is provided under this act.

(2) The Michigan higher education assistance authority shall

allocate funds to institutions eligible for work-study money based

upon each institution's specific Pell grant index and each

institution's utilization rate of work-study funds for the 3 most

recent years for which statistics are available.

(3) The Michigan higher education assistance authority shall

set aside not more than 5% of the total work-study appropriation to

process requests from participating institutions for allocation

adjustments. Allocation adjustments shall be based on criteria set

by the authority prior to making the allocations under subsection

(2).

Sec. 307. The auditor general may audit selected enrollments,

degrees, and awards at selected independent colleges and

universities receiving awards administered by the department of

treasury. The audits shall be based upon definitions and

requirements established by the Michigan higher education

assistance authority, the state budget director, and the senate and

house fiscal agencies. The auditor general shall accept the Free

Application for Federal Student Aid (FAFSA) form as the standard of

residency documentation. The auditor general shall submit a report

of findings to the senate and house appropriations committees and

state budget director by May 1, 2006.

Sec. 308. The sums appropriated in part 1 for the student

financial aid programs shall be paid out of the state treasury and

shall be distributed to the respective institutions under a

quarterly payment system as follows:

(a) For the state competitive scholarship, nursing

scholarship, tuition incentive, and tuition grant programs, 40%

shall be paid at the beginning of the state's first fiscal quarter,

40% at the beginning of the state's second fiscal quarter, l0% at

the beginning of the state's third fiscal quarter, and l0% at the

beginning of the state's fourth fiscal quarter.

(b) For the work-study program, payments shall be made in 11

monthly installments from October 1 to August 31 of any year.

Michigan education opportunity grant program, 50% shall be paid at

the beginning of the state's first fiscal quarter, 25% at the

beginning of the state's second fiscal quarter, and 25% at the

beginning of the state's third fiscal quarter.

(d) For the Robert C. Byrd honors scholarship program, 50%

shall be paid at the beginning of the state's first fiscal quarter

and 50% at the beginning of the state's second fiscal quarter.

(e) For the dental clinics grant program, 25% shall be paid at

the beginning of the state's first fiscal quarter, 25% at the

beginning of the state's second fiscal quarter, 25% at the

beginning of the state's third fiscal quarter, and 25% at the

beginning of the state's fourth fiscal quarter.

Sec. 309. The Michigan higher education assistance authority

shall determine the needs analysis criteria for students to qualify

for the competitive scholarship program and tuition grant program.

To be consistent with federal requirements, student wages may be

taken into consideration when determining the amount of the award.

Sec. 310. (1) The funds appropriated in part 1 for the tuition

incentive program/high school completion program shall be

distributed as provided in this section and pursuant to the

administrative procedures for the tuition incentive program/high

school completion program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive

assistance program defined as the academic period of 80 semester or

120 term credits, or less, leading to an associate degree or

certificate.

(b) "Phase II" means the second part of the tuition incentive

assistance program which provides assistance in the third and

fourth year of 4-year degree programs.

(3) A person shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive benefits:

(a) To be eligible for phase I, a person shall meet all of the

following criteria:

(i) Apply for certification to the department before graduating

from high school or completing the general education development

(GED) certificate.

(ii) Be less than 20 years of age at the time of high school

graduation or GED completion.

(iii) Be a United States citizen and a resident of Michigan

according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or GED

certificate completion.

(b) To be eligible for phase II, a person shall meet either of

the following criteria in addition to the criteria in subdivision

(a):

(i) Complete at least 56 transferable semester or 84

transferable term credits.

(ii) Obtain an associate degree or certificate at a

participating institution.

financially eligible as determined by the department. A person is

financially eligible for the tuition incentive program if that

person was Medicaid eligible for 24 months within the 36 months

before application. Certification of eligibility may begin in the

sixth grade.

(4) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(5) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

department shall pay lower division resident tuition and mandatory

fees for the current year.

(d) For persons enrolled at a Michigan independent, nonprofit

degree granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

(6) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

(a) Credits are earned in a 4-year program at a Michigan

degree granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

(7) The department shall work closely with participating

institutions to develop an application and eligibility

determination process that will provide the highest level of

participation and ensure that all requirements of the program are

met.

(8) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

(9) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

(10) The department shall ensure that the tuition incentive

program is well publicized and that potentially eligible Medicaid

clients are provided information on the program. The department

shall provide the necessary funding and staff to fully operate the

program.

Sec. 311. To enable the legislature and the state budget

director to evaluate the appropriation needs of higher education,

each independent college and university shall make available to the

legislature or state budget director, upon request, data regarding

grants for the preceding, current, and ensuing fiscal years.

Sec. 312. From the funds appropriated in part 1, the Michigan

higher education assistance authority shall administer the nursing

scholarship program pursuant to the Michigan nursing scholarship

act, 2002 PA 591, MCL 390.1181 to 390.1189.

Sec. 313. It is the intent of the legislature that Michigan

public universities expand their current nursing education

programs, and increase nursing education program enrollments. This

expansion may include, but is not limited to, creating partnerships

with hospitals and other health care providers, expanding the focus

and utilization of the nursing scholarship program, and redirecting

existing institutional resources toward nursing education programs.

STATE UNIVERSITIES

Sec. 402. The University of Michigan biological station at

Douglas Lake in Cheboygan County is regarded as a unique resource

and is designated as a special research reserve. It is the intent

of the legislature to protect and preserve the unique long-term

research value and capabilities of the biological station area and

Douglas Lake. The legislature further intends that no state

programs or policies be developed that would have a deleterious

impact on the research value of Douglas Lake.

Sec. 405. (1) The higher education institutional data

inventory advisory committee shall be appointed by the state budget

director and shall consist of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

office.

(d) Three representatives of the presidents council of state

universities. The presidents council shall appoint 1 representative

each from a masters, a doctoral, and a research university.

(2) The committee shall be responsible for maintaining and

enhancing the state higher education database for which funding is

included in part 1.

Sec. 406. (1) Included in part 1 is funding for the collegiate

employment research institute at Michigan State University. The

funding in part 1 shall be used by the collegiate employment

research institute to collect data from Michigan postsecondary

educational institutions and to provide a report on job placement

and first destination information for graduating students. The

report shall include, but not be limited to, the following

information for each Michigan public university for academic year

2003-2004:

(a) Total number of graduates, by degree level and major CIP

category.

(b) Data elements for each major CIP category shall include:

(i) Number of graduates.

(ii) Number of graduates who responded.

(iii) Number of respondents employed in Michigan.

(iv) Number of respondents employed outside of Michigan.

(v) Number of respondents employed full-time.

(vi) Number of respondents enrolled at Michigan postsecondary

institutions.

(vii) Number of respondents enrolled at postsecondary

institutions outside Michigan.

(viii) Number of respondents in volunteer positions, handling

family responsibilities, traveling, or not participating in the

paid workforce.

(ix) Number of respondents still looking for employment.

(x) Number of respondents reporting a starting salary.

(xi) Number of respondents reporting starting salaries in

Michigan and the amount of those Michigan starting salaries.

(xii) Number of respondents reporting starting salaries outside

Michigan and the amount of those starting salaries outside

Michigan.

(2) The report shall be submitted to the house and senate

appropriations subcommittees on higher education, the state budget

director, and the house and senate fiscal agencies by January 15,

2006. The report data shall also be submitted to the higher

education institutional data inventory (HEIDI) database.

(3) All 15 Michigan public universities shall submit data to

the collegiate employment research institute in a manner prescribed

by the HEIDI advisory committee and the state budget director.

Sec. 426. It is the legislative intent that private bookstores

that sell textbooks to university students and student governments

that provide a book swap for university students have accurate and

timely access to lists of universities' required textbooks in order

to provide prompt and efficient service for students. It is further

the legislative intent that each state university allow students

who are on financial aid or are receiving tuition grants to decide

where to purchase their textbooks.

Sec. 433. (1) Included in part 1 is $2,953,400.00 for the

agricultural experiment station and $2,619,000.00 for the

cooperative extension service for project GREEEN. Project GREEEN is

intended to address critical regulatory, food safety, economic, and

environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for generating research and extension to meet environmental

and economic needs.

(2) The department of agriculture and Michigan State

University, in consultation with agricultural commodity groups and

other interested parties, shall develop project GREEEN and its

program priorities.

(3) Not later than September 30, 2006, a report shall be

submitted by Michigan State University to the state budget

director, the house and senate appropriations subcommittees on

agriculture and on higher education, and the house and senate

fiscal agencies for the preceding fiscal year regarding project

GREEEN projects. The report shall include, but is not limited to,

the dollar amount of each project and a review of each project's

performance and accomplishments.

Sec. 436. It is the intent of the legislature that, if any

Michigan public university increases its resident undergraduate

tuition and required fees from academic year 2004-2005 to academic

year 2005-2006, then that university shall increase its fiscal year

2005-2006 general fund expenditures for student financial aid by at

least the same percentage as the percentage change in resident

undergraduate tuition and required fees. Each public university

shall report its proposed fiscal year 2005-2006 general fund

expenditures for student financial aid compared to its projected

fiscal year 2004-2005 general fund expenditures for student

financial aid, and its projected academic year 2005-2006 resident

undergraduate tuition and required fee changes from academic year

2004-2005, to the state budget director and the house and senate

appropriations subcommittees on higher education by November 15,

2005.

Sec. 437. It is the intent of the legislature that funds in a

Michigan public school employee retirement system (MPSERS)

stabilization subaccount be used for fiscal year 2005-2006 to

provide at least a $3,960,000.00 subsidy of the payroll

contribution rate for the 7 state universities that have employees

in the MPSERS system.

Sec. 440. All universities shall submit the amount of tuition

and fees actually charged to a full-time resident undergraduate

student for academic year 2005-2006 as part of their higher

education institutional data inventory (HEIDI) data by August 31,

2005. A university shall report any revisions for any semester of

the reported academic year 2005-2006 tuition and fee charges to

HEIDI within 15 days of being adopted.

Sec. 450. The amount allocated under part 1 for per-student

floor funding is equal to $3,750.00 per 2003-2004 fiscal-year-

equated student at each university. The number of 2003-2004 fiscal-

year-equated students at a university is determined by reference to

the higher education institutional data inventory (HEIDI).

Sec. 461. From the amount appropriated in part 1 to Lake

Superior State University for operations, $100,000.00 shall be paid

to Bay Mills Community College for the costs of waiving tuition for

North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

Sec. 501. (1) Included in the appropriation for each public

university in part 1 is funding for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks future faculty program, that is intended

to increase the pool of minority candidates pursuing faculty

teaching careers in postsecondary education. Each university shall

apply the percentage change applicable to every university in the

calculation of appropriations in part 1 to the amount of funds

allocated to the future faculty program.

(2) The program shall be administered by each university in a

manner prescribed by the Michigan department of labor and economic

growth. The Michigan department of labor and economic growth shall

use a good faith effort standard to evaluate whether a fellowship

is in default.

Sec. 502. (1) Included in the appropriation for each public

university in part 1 is funding for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks college day program that is intended to

introduce schoolchildren underrepresented in postsecondary

education to the potential of a college education.

(2) Individual program plans of each university shall include

a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each university shall apply the percentage change applicable

to every university in the calculation of appropriations in part 1

to the amount of funds allocated to the college day program.

(3) The program shall be administered by each university in a

manner prescribed by the Michigan department of labor and economic

growth.

Sec. 503. (1) Included in part 1 is funding for the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks select student support

services program for developing academically and economically

disadvantaged student retention programs for 4-year public and

independent educational institutions in this state.

(2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

(3) The program shall be administered by the Michigan

department of labor and economic growth.

Sec. 504. (1) Included in part 1 is funding for the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks college/university

partnership program between 4-year public and independent colleges

and universities and public community colleges, which is intended

to increase the number of academically and economically

disadvantaged students who transfer from community colleges into

baccalaureate programs.

(2) The grants shall be made under this program to Michigan

public and independent colleges and universities. An award to any 1

institution shall not be greater than $150,000.00, and the amount

awarded shall be matched on a 70% state, 30% college or university

basis.

(3) The program shall be administered by the Michigan

department of labor and economic growth.

Sec. 505. (1) Included in the appropriation for each public

university in part 1 is funding for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks visiting professors program which is

intended to increase the number of underrepresented minority

instructors in the classroom and provide role models for

underrepresented minority students.

(2) The program shall be administered by the Michigan

department of labor and economic growth.

Sec. 506. (1) Included in the appropriation in part 1 is

funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa

Parks initiative for the Morris Hood, Jr. educator development

program which is intended to increase the number of minority

students, especially males, who enroll in and complete K-12 teacher

education programs at the baccalaureate level.

(2) The program shall be administered by each state-approved

teacher education institution in a manner prescribed by the

Michigan department of labor and economic growth.

(3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program.

Sec. 507. Each state institution of higher education receiving

funds under section 503, 504, or 506 shall notify the Michigan

department of labor and economic growth by April 15, 2006 as to

whether it will expend by the end of its fiscal year the funds

received under section 503, 504, or 506. Notwithstanding the award

limitations in sections 503 and 504, the amount of funding reported

as not being expended will be reallocated to the institutions that

intend to expend all funding received under section 503, 504, or

506.

STUDENT PERFORMANCE REPORTING

Sec. 601. (1) From the amount appropriated in part 1 for state

universities, the state universities shall systematically inform

Michigan high schools regarding the academic status of students

from each high school in a manner prescribed by the presidents

council state universities of Michigan in cooperation with the

Michigan association of secondary school principals.

(2) The Michigan high schools shall systematically inform the

state universities about the use of information received under this

section in a manner prescribed by the Michigan association of

secondary school principals in cooperation with the presidents

council state universities of Michigan.

Sec. 602. From the amount appropriated in part 1 for state

universities, the state universities shall inform Michigan

community colleges regarding the academic status of community

college transfer students in a manner prescribed by the presidents

council state universities of Michigan in cooperation with the

Michigan community college association.

GENERAL REPORTS AND AUDITS

Sec. 701. (1) The auditor general shall review higher

education institutional data inventory (HEIDI) enrollment data

submitted by all public universities and may perform audits of

selected public universities if determined necessary. The review

and audits shall be based upon the definitions, requirements, and

uniform reporting categories established by the state budget

director and the senate and house fiscal agencies. The auditor

general shall submit a report of findings to the house and senate

appropriations committees and the state budget director no later

than July 1, 2006.

(2) Student credit hours reports shall not include the

following:

(a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

(b) Student credit hours generated through distance learning

instruction for students not paying the institution's resident

tuition rate.

examination.

(d) Student credit hours generated through inmate prison

programs regardless of teaching location.

(e) Student credit hours generated in new degree programs

after January 1, 1975, that have not been specifically authorized

for funding by the legislature, except spin-off programs converted

from existing core programs that do all of the following:

(i) Represent new options, fields, or concentrations within

existing programs.

(ii) Are consistent with the current institutional role and

mission.

(iii) Are accommodated within the continuing funding base of the

institution.

(iv) Do not require a new degree level beyond that which the

institution is currently authorized to grant within that discipline

or field.

(v) Do not require funding from the state other than that

provided by the student credit hours generated within the program,

either before program initiation or within the first 3 years of

program operation.

(3) The auditor general shall periodically audit higher

education institutional data inventory (HEIDI) data as submitted by

the state universities for compliance with the definitions approved

by the HEIDI advisory committee for the HEIDI database.

(4) "Distance learning instruction" as used in subsection (2)

means instruction that occurs in other than a traditional classroom

setting where the student and instructor are in the same physical

location and for which a student receives course credits and is

charged tuition and fees. Examples of distance learning instruction

are instruction delivered solely through the Internet, cable

television, teleconference, or mail.

Sec. 701a. (1) Pursuant to section 701(2)(e), the following

degree programs may be established:

(a) Bachelors

Eastern Michigan University Creative Writing, B.A./B.S.

Grand Valley State University Athletic Training Major, B.S.

Lake Superior State University Spanish, B.A.

Michigan Technological University Audio Production and

Technology, B.S.

Michigan Technological University Cheminformatics, B.S.

Michigan Technological University Communication & Culture

Studies w/concentrations in Communication in Contemporary Culture;

Communication in Human Interactions and Global Contexts;

Communication Media

Michigan Technological University Pharmaceutical Chemistry,

B.S.

Michigan Technological University Sound Design, B.A.

Michigan Technological University Theatre and Entertainment

Technology, B.A.

Michigan Technological University Theatre and Entertainment

Technology, B.S.

Michigan Technological University Wildlife Ecology and

Management, B.S.

University of Michigan-Ann Arbor Earth Systems Science and

Engineering, B.S.

University of Michigan-Ann Arbor Neuroscience Concentration,

B.S.

University of Michigan-Flint Music (Performance), B.S.

(b) Masters

Eastern Michigan University Earth Science Education, M.S.

Eastern Michigan University Orthotics and Prosthetics, M.S.

Saginaw Valley State University Occupational Therapy Program,

M.A.

University of Michigan-Ann Arbor Global Automotive and

Manufacturing Engineering, M.E.

University of Michigan-Ann Arbor Space Engineering, M. Eng.

University of Michigan-Dearborn Masters of Public Policy,

Masters

University of Michigan-Flint Computer and Information Systems,

M.S.

University of Michigan-Flint Master of Arts in Social

Sciences, M.A.

Western Michigan University Master of Science in Civil

Engineering, M.S.E.

Western Michigan University Nursing, M.S.N.

Michigan Technological University Industrial Heritage and

Archeology, Ph.D.

(2) The listing of degree programs in subsection (1) does not

constitute legislative intent to provide additional dollars for

those programs.

(3) When submitting the listing of new degree programs for

future fiscal years, the presidents council shall also provide a

listing of degree programs that will no longer be offered in

subsequent academic years.

Sec. 702. The principal executive officer of each institution

of higher education receiving an appropriation under this act shall

expend a portion of the funds appropriated to that institution to

make a report to the auditor general, the house and senate fiscal

agencies, and the state budget director within 60 days after the

auditor general issues his or her report on the operation of the

institution. The institution's report shall specify all of the

following:

(a) The recommendations of the auditor general implemented by

the institution, including projected dates and resources required,

if any, to achieve compliance.

(b) The recommendations of the auditor general not implemented

by the institution or implemented by the institution as modified.

auditor general or of implementing a recommendation as modified.

Sec. 708. The auditor general may conduct performance audits

of state universities during the fiscal year ending September 30,

2006 as the auditor general considers necessary.

Sec. 709. An institution receiving funds under this bill and

also subject to the student right-to-know and campus security act,

Public Law 101-542, 104 Stat. 2381, shall make a copy of all

material prepared pursuant to the public information reporting

requirements under the crime awareness and campus security act of

1990, title II of the student right-to-know and campus security