September 18, 2008, Introduced by Reps. Pavlov and Espinoza and referred to the Committee on Education.
A bill to provide for the creation of county promise
authorities; to prescribe the powers and duties of county promise
authorities; to provide for the levy of a property tax by a county
promise authority; to provide for the disbursement of certain tax
revenue; and to prescribe the powers and duties of certain
government officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"county promise authority act".
Sec. 3. As used in this act:
(a) "Articles" means the articles of incorporation of an
authority.
(b) "Authority" means a county promise authority created under
this act.
(c) "Board" means the governing body of an authority.
(d) "Community foundation" means that term as defined in
section 261 of the income tax act of 1967, 1967 PA 281, MCL
206.261.
(e) "Development plan" means the plan developed by an
authority under this act that will ensure that the financial
resources are available to adequately fund the promise of financial
assistance.
(f) "Eligible educational institution" means any of the
following:
(i) A college, university, community college, or junior college
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963 or established under section 7 of article VIII
of the state constitution of 1963.
(ii) An independent nonprofit college or university.
(iii) A state-licensed vocational or technical education
program.
(g) "Eligible students" means that term as defined by an
authority in the development plan.
(h) "Promise of financial assistance" means a commitment by an
authority to provide financial resources for postsecondary
education to all eligible students living in the county.
Sec. 5. (1) Any county may, by resolution, form a county
promise authority.
(2) An authority possesses all of the powers necessary for
carrying out the purposes of its formation. The enumeration of
specific powers in this act shall not be construed as a limitation
on the general powers of an authority, consistent with its
articles.
Sec. 7. (1) To initiate the establishment of an authority,
articles of incorporation shall be prepared by a majority of the
members of the county board of commissioners of the county
establishing the authority. The articles of incorporation shall
include all of the following:
(a) The name of the authority.
(b) The size of the board of the authority, which shall be
composed of an odd number of members and shall not exceed 15
members; the qualifications and terms of office of board members;
and the manner of appointing the members of the board of the
authority.
(c) The purpose of the authority.
(d) The method of dissolution of the authority.
(e) Any other matters considered advisable.
(2) The articles shall be adopted and may be amended by an
affirmative vote of a majority of the members of the county board
of commissioners of the county establishing the authority.
(3) Before the articles or amendments to the articles are
adopted, the articles or amendments to the articles shall be
published not less than once in a newspaper generally circulated
within the county. The adoption of articles or amendments to the
articles by the county shall be evidenced by an endorsement on the
articles or amendments by the clerk of the county.
(4) Upon adoption of the articles or amendments to the
articles by the county, a printed copy of the articles or the
amended articles shall be filed with the secretary of state by the
clerk of the county.
(5) The authority's articles of incorporation, or amendments
to the articles, take effect upon filing with the secretary of
state.
Sec. 9. (1) A vacancy occurs on the board upon the happening
of any of the events set forth in section 3 of 1846 RS 15, MCL
201.3. Members of the board may be removed by the county board of
commissioners for good cause after a public hearing. Vacancies
shall be filled in the manner as provided for in the authority's
bylaws.
(2) A majority of the members of the board constitute a quorum
for the purpose of conducting business and exercising the powers of
an authority. Official action may be taken by an authority upon the
vote of a majority of the board members present, unless the
authority adopts bylaws requiring a larger number.
(3) A member of the board shall not receive compensation for
services as a member of the board but is entitled to reimbursement
for reasonable expenses, including expenses for travel previously
authorized by the board, incurred in the discharge of his or her
duties.
(4) The business that an authority may perform shall be
conducted at a public meeting of the authority held in compliance
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
Public notice of the time, date, and place of the meeting shall be
given in the manner required by the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275.
(5) A writing prepared, owned, or used by an authority in the
performance of an official function shall be made available in
compliance with the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
(6) At its first meeting, a board shall elect a chairperson, a
secretary, a treasurer, and any other officers it considers
necessary. A board shall meet at least 4 times a year.
(7) A board shall adopt bylaws to govern its procedures and to
provide the manner in which vacancies on the board shall be filled.
Sec. 11. (1) An authority created under this act shall prepare
a development plan that includes, but is not limited to, all of the
following:
(a) A complete description of the proposed promise of
financial assistance. The proposed promise of financial assistance
shall include, but is not limited to, a promise of financial
assistance to all eligible students residing within the county. The
proposed promise of financial assistance shall, at a minimum,
provide sufficient funding to provide all eligible students the
tuition necessary to obtain at least an associate degree at an
eligible educational institution.
(b) A complete description of any limitations on the promise
of financial assistance; whether the promise of financial
assistance will be prorated based on the number of years the
eligible student has resided within the county; whether the promise
of financial assistance will be restricted to eligible students who
have resided within the county for a minimum number of years; or
whether the promise of financial assistance is predicated on the
eligible student's maintaining a minimum college grade point
average and carrying a minimum college credit hour classload.
(c) Whether eligible students will be required to exhaust all
other available publicly funded scholarships before receiving
financial assistance under this act. As used in this subdivision,
"other available publicly funded scholarships" includes any
institutional aid from an eligible educational institution and
grants for postsecondary education provided by a federal, state, or
local governmental entity, but does not include loans.
(d) How the funds necessary to accomplish the promise of
financial assistance will be raised. The development plan may be
financed from any of the following:
(i) Money provided from a community foundation located in the
county.
(ii) Donations.
(iii) The levy of a tax, if authorized, as provided in section
17.
(iv) Money obtained from other sources approved by the
authority or otherwise authorized by law.
(e) The minimum financial commitment that the authority must
provide before the tax, if authorized under section 17, may be
levied.
(f) The definition of eligible students.
(2) The board shall submit the development plan to the county
board of commissioners. In addition, the board shall cause the
development plan to be published not less than once in a newspaper
generally circulated within the county.
(3) The county board of commissioners shall review the
proposed development plan submitted under subsection (2) and shall
certify that the proposed development plan meets all of the
requirements under this act.
Sec. 13. The establishment of a development plan does not
create a cause of action in law or in equity against the county,
this state, or an authority, if the proposed promise of financial
assistance set forth in the development plan is not paid to an
eligible student.
Sec. 15. An authority may do 1 or more of the following:
(a) Apply for and accept grants or contributions from
individuals, the federal government or any of its agencies, this
state, a municipality, or other public or private agencies to be
used for any of the purposes of the authority.
(b) Hire full-time or part-time employees and retain
professional services.
(c) Levy a tax as provided in section 17.
(d) Accept private funds from a community foundation located
in the county.
(e) Identify eligible educational institutions.
Sec. 17. (1) An authority may levy a tax on all of the taxable
property within the county for the purpose of providing financial
assistance for postsecondary education, at an eligible educational
institution, to all eligible students who live within the county.
The proposal for a tax shall be submitted to a vote of the electors
of the county by resolution of the authority board. The authority
may levy the tax only if a majority of the electors in the county
voting on the tax at an election held on a regular election date
established under section 641 of the Michigan election law, 1954 PA
116, MCL 168.641, approve the tax and if the requirements of
section 19 are met.
(2) A ballot proposal for a tax shall comply with the
requirements of section 24f of the general property tax act, 1893
PA 206, MCL 211.24f. A proposal for a tax shall not be placed on
the ballot unless the proposal is adopted by a resolution of the
board and certified by the board not later than 70 days before the
election to the county clerk of the county for inclusion on the
ballot. The proposal shall be certified for inclusion on the ballot
at the next eligible election, as specified by the board's
resolution.
(3) If a majority of the electors in the county voting on the
question of a tax approve the proposal as provided under subsection
(1), the tax levy is authorized. Not more than 2 elections may be
held in a calendar year on a proposal for a tax authorized under
this act.
Sec. 19. If a millage is approved under section 17, the tax
shall not be levied unless the minimum financial commitment, as
provided in the development plan, is provided by the authority.
Sec. 21. If a millage is approved under section 17, the
development plan shall not be changed or altered and the promise of
financial assistance shall not be reduced or minimized during the
duration of the authorized millage.
Sec. 23. (1) The county election commission of the county
shall provide ballots for an election for a tax under section 17.
(2) An election for a tax shall be conducted by the city and
township clerks and election officials of the municipalities
located within the county.
Sec. 25. (1) If an election for a tax under section 17 is to
be held in conjunction with a general election or a state primary
election, the notices of close of registration and election shall
be published as provided for by the state election laws. Otherwise,
the county clerk of the county shall publish the notices of close
of registration and election. The notice of close of registration
shall include the ballot language of the proposal.
(2) The results of an election for a tax shall be canvassed by
the board of county canvassers of the county. The board of county
canvassers of the county shall make the final canvass of an
election for a tax based on the returns of the election inspectors
of the municipalities in that county. The board of county
canvassers of the county shall certify the results of the election
to the board of the authority.
Sec. 27. (1) A county clerk shall charge the authority and the
authority shall reimburse the county for the actual costs the
county incurs in the election for the tax under section 17.
(2) If a municipality conducts the election for the tax, the
clerk of that municipality shall charge the authority and the
authority shall reimburse the municipality for the actual costs the
municipality incurs in conducting the election if the election is
not held in conjunction with a regularly scheduled election in that
municipality.
(3) In addition to the costs reimbursed under subsection (1)
or (2), a county or municipality shall charge the authority and the
authority shall reimburse the county or municipality for actual
costs that the county or municipality incurs and that are
exclusively attributable to an election for a tax authorized under
this act.
(4) The actual costs that a county or municipality incurs
shall be based on the number of hours of work done in conducting
the election, the rates of compensation of the workers, and the
cost of materials supplied in the election.
Sec. 29. (1) A board shall obtain an annual audit of the
authority, and report on the audit and auditing procedures, in the
manner provided by sections 6 to 13 of the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit shall
also be in accordance with generally accepted government auditing
standards as promulgated by the United States general accounting
office and shall satisfy federal regulations relating to federal
grant compliance audit requirements.
(2) An authority shall prepare budgets and appropriations acts
in the manner provided by sections 14 to 19 of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.434 to 141.439.
(3) The state treasurer, the attorney general, a prosecuting
attorney, bank, certified public accountant, certified public
accounting firm, or other person shall have the same powers,
duties, and immunities with respect to the authority as provided
for local units in sections 6 to 20 of the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.426 to 141.440.
(4) If an authority ends a fiscal year in a deficit condition,
the authority shall file a financial plan to correct the deficit
condition in the same manner as provided in section 21(2) of the
Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL
141.921.
(5) The board may authorize funds of the authority to be
invested or deposited in any investment or depository authorized
under section 1 of 1943 PA 20, MCL 129.91.