SB-0768, As Passed Senate, May 6, 2014

SUBSTITUTE FOR

SENATE BILL NO. 768

(Senate Bill No. 768 as amended May 6, 2014)

<<A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 236, 236a, 236b, 236c, 241, 245, 252, 256,

263, 263a, 264, 265, 265a, 267, 268, 269, 270, 272a, 273, 274,

274a, 276, 277, 278, 279, 280, 281, 282, 283, and 284 (MCL

388.1836, 388.1836a, 388.1836b, 388.1836c, 388.1841, 388.1845,

388.1852, 388.1856, 388.1863, 388.1863a, 388.1864, 388.1865,

388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1872a,

388.1873, 388.1874, 388.1874a, 388.1876, 388.1877, 388.1878,

388.1879, 388.1880, 388.1881, 388.1882, 388.1883, and 388.1884),

sections 236, 236a, 236b, 241, 245, 252, 263, 263a, 264, 265, 265a,

267, 268, 269, 270, 273, 274, 274a, 276, 277, 278, 279, 280, 281,

and 282 as amended and sections 236c and 272a as added by 2013 PA

60 and sections 256, 283, and 284 as amended by 2012 PA 201, and by

Senate Bill No. 768 as amended May 6, 2014

adding sections 271a and 271b.>>

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in subsections (2) to (6) this section

are appropriated for higher education for the fiscal year ending

September 30, 2014, 2015, from the funds indicated in this section.

The following is a summary of the appropriations in subsections (2)

to (6):this section:

     (a) The gross appropriation is $1,430,573,500.00.

$1,527,494,100.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

$1,430,573,500.00.$1,527,494,100.00.

     (b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

     (i) Total federal revenues, $97,026,400.00.

     (ii) Total local revenues, $0.00.

     (iii) Total private revenues, $0.00.

     (iv) Total other state restricted revenues,

$200,565,700.00.$215,565,700.00.

     (v) State general fund/general purpose money,

$1,132,981,400.00.$1,214,902,000.00.

     (2) Amounts appropriated for public universities are as

follows:

     (a) The appropriation for Central Michigan University is

$73,486,600.00, $71,352,300.00 $79,283,400.00, $73,540,100.00 for

operations and $2,134,300.00 $5,743,300.00 for performance funding.

, appropriated from the following:

     (i) State school aid fund, $11,284,600.00.

     (ii) State general fund/general purpose money, $62,202,000.00.

     (b) The appropriation for Eastern Michigan University is

$67,255,600.00, $66,466,700.00 $71,906,800.00, $67,275,400.00 for

operations and $788,900.00 $4,631,400.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $10,706,400.00.

     (ii) State general fund/general purpose money, $56,549,200.00.

     (c) The appropriation for Ferris State University is

$45,602,600.00, $44,250,700.00 $49,191,200.00, $45,636,500.00 for

operations and $1,351,900.00 $3,554,700.00 for performance funding.

, appropriated from the following:

     (i) State school aid fund, $6,846,800.00.

     (ii) State general fund/general purpose money, $38,755,800.00.

     (d) The appropriation for Grand Valley State University is

$57,765,100.00, $55,436,000.00 $63,296,500.00, $57,823,500.00 for

operations and $2,329,100.00 $5,473,000.00 for performance funding.

, appropriated from the following:

     (i) State school aid fund, $8,727,800.00.

     (ii) State general fund/general purpose money, $49,037,300.00.

     (e) The appropriation for Lake Superior State University is

$12,226,500.00, $12,046,100.00 $12,799,100.00, $12,231,000.00 for

operations and $180,400.00 $568,100.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $1,787,600.00.

     (ii) State general fund/general purpose money, $10,438,900.00.

     (f) The appropriation for Michigan State University is

$305,775,000.00, $245,037,000.00 $324,099,500.00, $249,097,800.00

for operations, $4,449,300.00 $15,279,400.00 for performance

funding, $30,243,900.00 $32,088,800.00 for MSU AgBioResearch, and

$26,044,800.00 $27,633,500.00 for MSU extension. , appropriated

from the following:

     (i) State school aid fund, $39,949,900.00.

     (ii) State general fund/general purpose money, $265,825,100.00.

     (g) The appropriation for Michigan Technological University is

$43,451,900.00, $42,579,100.00 $45,997,100.00, $43,473,800.00 for

operations and $872,800.00 $2,523,300.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $6,748,900.00.

     (ii) State general fund/general purpose money, $36,703,000.00.

     (h) The appropriation for Northern Michigan University is

$41,719,800.00, $40,856,600.00 $44,353,800.00, $41,741,400.00 for

operations and $863,200.00 $2,612,400.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $6,356,900.00.

     (ii) State general fund/general purpose money, $35,362,900.00.

     (i) The appropriation for Oakland University is

$45,634,800.00, $44,964,100.00 $48,446,100.00, $45,651,600.00 for

operations and $670,700.00 $2,794,500.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $7,148,400.00.

     (ii) State general fund/general purpose money, $38,486,400.00.

     (j) The appropriation for Saginaw Valley State University is

$25,982,800.00, $25,656,700.00 $27,659,100.00, $25,991,000.00 for

operations and $326,100.00 $1,668,100.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $3,903,800.00.

     (ii) State general fund/general purpose money, $22,079,000.00.

     (k) The appropriation for University of Michigan - Ann Arbor

is $279,108,700.00, $274,156,700.00 $295,655,600.00,

$279,232,700.00 for operations and $4,952,000.00 $16,422,900.00 for

performance funding. , appropriated from the following:

     (i) State school aid fund, $44,536,300.00.

     (ii) State general fund/general purpose money, $234,572,400.00.

     (l) The appropriation for University of Michigan – Dearborn is

$22,503,700.00, $22,237,300.00 $23,724,900.00, $22,510,400.00 for

operations and $266,400.00 $1,214,500.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $3,482,100.00.

     (ii) State general fund/general purpose money, $19,021,600.00.

     (m) The appropriation for University of Michigan – Flint is

$19,928,100.00, $19,526,600.00 $21,380,000.00, $19,938,200.00 for

operations and $401,500.00 $1,441,800.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $2,942,900.00.

     (ii) State general fund/general purpose money, $16,985,200.00.

     (n) The appropriation for Wayne State University is

$183,933,000.00, $190,734,900.00, $183,398,300.00 for operations

and $534,700.00 $7,336,600.00 for performance funding. ,

appropriated from the following:

     (i) State school aid fund, $30,160,600.00.

     (ii) State general fund/general purpose money, $153,772,400.00.

     (o) The appropriation for Western Michigan University is

$97,235,200.00, $95,487,500.00 $102,907,000.00, $97,279,000.00 for

operations and $1,747,700.00 $5,628,000.00 for performance funding.

, appropriated from the following:

     (i) State school aid fund, $15,436,500.00.

     (ii) State general fund/general purpose money, $81,798,700.00.

     (3) The amount appropriated in subsection (2) for public

universities is appropriated from the following:

     (a) State school aid fund, $200,019,500.00.

     (b) State general fund/general purpose money,

$1,201,415,500.00.

(4) (3) The amount appropriated for Michigan public school

employees' retirement system reimbursement is $2,446,200.00,

$446,200.00 appropriated from the state school aid fund and

$2,000,000.00 appropriated from general fund/general purpose money.

     (5) In addition to the amount appropriated under subsection

(4), $15,000,000.00 is appropriated for Michigan public school

employees' retirement system reform, appropriated from the state

school aid fund.

(6) (4) The amount appropriated for state and regional

programs is $2,200,000.00 $2,295,000.00 appropriated from general

fund/general purpose money and allocated as follows:

     (a) College access program, $2,000,000.00.

     (b) Higher education database modernization and conversion,

$105,000.00.$200,000.00.

     (c) Midwestern higher education compact, $95,000.00.

(7) (5) The amount appropriated for the Martin Luther King,

Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00,

appropriated from general fund/general purpose money and allocated

as follows:

     (a) Select student support services, $1,956,100.00.

     (b) Michigan college/university partnership program,

$586,800.00.

     (c) Morris Hood, Jr. educator development program,

$148,600.00.

(8) (6) Subject to subsection (7), (9), the amount

appropriated for grants and financial aid is $101,626,400.00,

$103,626,400.00, allocated as follows:

     (a) State competitive scholarships, $18,361,700.00.

     (b) Tuition grants, $31,664,700.00.

     (c) Tuition incentive program, $47,000,000.00.$48,500,000.00.

     (d) Children of veterans and officer's survivor tuition grant

programs, $1,400,000.00.

     (e) Project GEAR-UP, $3,200,000.00.

     (f) North American Indian tuition waivers, $500,000.00.

(9) (7) The money appropriated in subsection (6) (8) for

grants and financial aid is appropriated from the following:

     (a) Federal revenues under the United States department of

education, office of elementary and secondary education, GEAR-UP

program, $3,200,000.00.

     (b) Federal revenues under the social security act, temporary

assistance for needy families, $93,826,400.00.

     (c) Contributions to children of veterans tuition grant

program, $100,000.00.

     (d) State general fund/general purpose money,

$4,500,000.00.$6,500,000.00.

     Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2015

2016 for the items listed in section 236. The fiscal year 2014-2015

2015-2016 appropriations are anticipated to be the same as those

for fiscal year 2013-2014, 2014-2015, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January 2014 2015

consensus revenue estimating conference.

     Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year 2013-2014 2014-2015 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

     Sec. 236c. In addition to the funds appropriated for fiscal

year 2013-2014 2014-2015 in section 236, appropriations to the

department of technology, management, and budget in the act

providing general appropriations for fiscal year 2013-2014 2014-

2015 for state building authority rent, totaling an estimated

$125,370,600.00, $124,825,300.00, provide funding for the state

share of costs for previously constructed capital projects for

state universities. These appropriations for state building

authority rent represent additional state general fund support

provided to public universities, and the following is an estimate

of the amount of that support to each university:

     (a) Central Michigan University, $9,155,600.00.$9,103,200.00.

     (b) Eastern Michigan University, $5,234,800.00.$4,861,700.00.

     (c) Ferris State University, $6,360,600.00.$6,252,200.00.

     (d) Grand Valley State University,

$4,277,000.00.$4,252,500.00.

     (e) Lake Superior State University, $915,600.00.$1,112,900.00.

     (f) Michigan State University, $16,194,400.00.$16,101,200.00.

     (g) Michigan Technological University,

$7,692,200.00.$7,444,600.00.

     (h) Northern Michigan University, $8,062,600.00.$8,016,400.00.

     (i) Oakland University, $10,791,500.00.$10,969,800.00.

     (j) Saginaw Valley State University,

$9,833,700.00.$9,777,400.00.

     (k) University of Michigan - Ann Arbor,

$9,212,000.00.$9,159,200.00.

     (l) University of Michigan - Dearborn,

$6,332,400.00.$6,296,200.00.

     (m) University of Michigan - Flint,

$2,871,400.00.$2,855,000.00.

     (n) Wayne State University, $13,079,500.00.$13,679,800.00.

     (o) Western Michigan University,

$15,357,300.00.$14,943,200.00.

     Sec. 241. (1) Subject to section 265a, the funds appropriated

in section 236 to public universities 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 16, 2013. 2014. Except for Wayne State

University, each institution shall accrue its July and August 2014

2015 payments to its institutional fiscal year ending June 30,

2014.2015.

     (2) All public 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 public universities with fiscal

years ending June 30, 2013, 2014, these data shall be submitted to

the state budget director by October 15, 2013. 2014. Public

universities with a fiscal year ending September 30, 2013 2014

shall submit preliminary HEIDI data by November 15, 2013 2014 and

final data by December 15, 2013. 2014. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer may withhold the monthly installments under subsection

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

     Sec. 245. (1) Within 30 days after the board of a public

university adopts its annual operating budget for the following

school fiscal year, or after the board adopts a subsequent revision

to that budget, the A public university shall make all of the

following maintain a public transparency website available through

a link on its website homepage. : The public university shall

update this website within 30 days after the university's governing

board adopts its annual operating budget for the next academic

year, or after the governing board adopts a subsequent revision to

that budget.

     (2) The website required under subsection (1) shall include

all of the following concerning the public university:

     (a) The annual operating budget and subsequent budget

revisions.

     (b) A summary of current expenditures for the most recent

fiscal year for which they are available, expressed as pie charts

in the following 2 categories:

     (i) A chart of personnel expenditures, broken into the

following subcategories:

     (A) Earnings and wages.

     (B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

     (C) Retirement benefit costs.

     (D) All other personnel costs.

     (ii) A chart of all current expenditures the public university

reported as part of its higher education institutional data

inventory data under section 241(2), broken into the same

subcategories in which it reported those data.

     (c) Links to all of the following for the public university:

     (i) The current collective bargaining agreement for each

bargaining unit.

     (ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee of the public

university.

     (iii) Audits and financial reports for the most recent fiscal

year for which they are available.

     (iv) Campus security policies and crime statistics pursuant to

the student right-to-know and campus security act, Public Law 101-

542, 104 Stat. 2381. Information shall include 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 act, Public Law

101-542, 104 Stat. 2381.

     (d) A list of all positions funded partially or wholly through

institutional general fund revenue that includes the position title

and annual salary or wage amount for each position.

     (e) General fund revenue and expenditure projections for the

current fiscal year 2013-2014 and the next fiscal year. 2014-2015.

     (f) A listing of all debt service obligations, detailed by

project, anticipated fiscal year 2013-2014 payment for each

project, and total outstanding debt for the current fiscal year.

     (g) The institution's policy regarding the transferability of

core college courses between community colleges and the university.

     (h) A listing of all community colleges that have entered into

reverse transfer agreements with the university.

(3) (2) A On the website required under subsection (1), a

public university shall provide a dashboard or report card

demonstrating the university's performance in several "best

practice" measures. The dashboard or report card shall include at

least all of the following for the 3 most recent school academic

years for which the data are available:

     (a) Enrollment.

     (b) Student retention rate.

     (c) Six-year graduation rates.

     (d) Number of Pell grant recipients and graduating Pell grant

recipients.

     (e) Geographic origination of students, categorized as in-

state, out-of-state, and international.

     (f) Faculty to student ratios and total university employee to

student ratios.

     (g) Teaching load by faculty classification.

     (h) Graduation outcome rates, including employment and

continuing education.

(4) (3) For statewide consistency and public visibility,

public universities must use the icon badge provided by the

department of technology, management, and budget consistent with

the icon badge developed by the department of education for K-12

school districts. It must appear on the front of each public

university's homepage. The size of the icon may be reduced to 150 x

150 pixels. The font size and style for this reporting must be

consistent with other documents on each university's website.

(5) (4) The state budget director shall determine whether a

public university has complied with this section. The state budget

director may withhold a public university's monthly installments

described in section 241 until the public university complies with

this section.

(6) By November 15 of each year, a public university shall

report the following information to the senate and house

appropriations subcommittees on higher education, the senate and

house fiscal agencies, and the state budget office and post the

information on its website under the budget transparency icon

badge:

     (a) Opportunities for earning college credit through the

following programs:

     (i) State approved career and technical education or a tech

prep articulated program of study.

     (ii) Direct college credit or concurrent enrollment.

     (iii) Dual enrollment.

     (iv) An early college/middle college program.

     (b) For each program described in subdivision (a) that the

public university offers, all of the following information:

     (i) The number of high school students participating in the

program.

     (ii) The number of school districts that participate in the

program with the public university.

     (iii) Qualifications for students to participate in the program.

     (iv) Whether a university professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

     (v) The total cost to the public university to operate the

program.

     (vi) The cost per credit hour for the course or courses in the

program.

     (vii) The location where the course or courses in the program

are held.

     (viii) Resources offered to the program instructors.

     (ix) Resources offered to the student in the program.

     (x) Transportation services provided to students in the

program.

     Sec. 252. (1) The amounts appropriated in section 236 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 enrolled in undergraduate degree programs who

are qualified and who apply before July 1, 2012 2013 for the 2012-

2013 2013-2014 school year or July 1, 2013 2014 for the 2013-2014

2014-2015 school year, as applicable.

     (3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsection (7), the department of treasury shall

determine an actual maximum tuition grant award per student, which

shall be no less than $1,512.00, that ensures that the aggregate

payments for the tuition grant program do not exceed the

appropriation contained in section 236 for the state tuition grant

program. If the department determines that insufficient funds are

available to establish a maximum award amount equal to at least

$1,512.00, the department shall immediately report to the house and

senate appropriations subcommittees on higher education, the house

and senate fiscal agencies, and the state budget director regarding

the estimated amount of additional funds necessary to establish a

$1,512.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least $1,512.00, the department shall immediately

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

state budget director regarding the maximum award amount

established and the projected amount of any projected year-end

appropriation balance based on that maximum award amount. By

December 15, and again by February 18 of each fiscal year, the

department 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 section

236 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 the final day of February of

each year. If award adjustments are necessary, the students shall

be notified of the adjustment by March 4 of each year.

     (4) Any unexpended and unencumbered funds remaining on

September 30, 2013 2015 from the amounts appropriated in section

236 for the tuition grant program for fiscal year 2012-2013 2014-

2015 shall not lapse on September 30, 2013, 2015, but shall

continue to be available for expenditure for tuition grants

provided in the 2013-2014 2015-2016 fiscal year under a work

project account. The use of these unexpended fiscal year 2012-2013

2014-2015 funds shall terminate at the end of the 2013-2014 2015-

2016 fiscal year. Any unexpended and unencumbered funds remaining

on September 30, 2014 from the amounts appropriated in section 236

for the tuition grant program for fiscal year 2013-2014 shall not

lapse on September 30, 2014, but shall continue to be available for

expenditure for tuition grants provided in the 2014-2015 fiscal

year under a work project account. The use of these unexpended

fiscal year 2013-2014 funds shall terminate at the end of the 2014-

2015 fiscal year.

     (5) The department of treasury 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 department of treasury 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 that

fiscal year.

     (7) In any fiscal year, the department of treasury shall not

award more than $3,000,000.00 in tuition grants to eligible

students enrolled in the same independent nonprofit college or

university in this state. Any decrease in the maximum grant shall

be proportional for all eligible students enrolled in that college

or university, as determined by the department.

     Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive 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.

     (c) "Department" means the department of treasury.

     (3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive benefits:

     (a) To be eligible for phase I, an individual shall meet all

of the following criteria:

     (i) Apply for certification to the department any time after he

or she begins the sixth grade but before graduating August 31 of

the school year in which he or she graduates from high school or

before completing the general education development (GED)

certificate.

     (ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or completes his or her GED.

     (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.

     (v) Request information on filing a FAFSA.

     (vi) Must meet the satisfactory academic progress policy of the

educational institution he or she attends.

     (b) To be eligible for phase II, an individual 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.

     (c) To be eligible for phase I or phase II, an individual must

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from the state of Michigan for 24 months within the 36 months

before application. The department shall accept certification of

Medicaid eligibility only from the department of human services for

the purposes of verifying if a person is Medicaid eligible for 24

months within the 36 months before application. Certification of

eligibility may begin in the sixth grade. As used in this

subdivision, "incarcerated" does not include detention of a

juvenile in a state-operated or privately operated juvenile

detention facility.

     (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.

     (c) For persons enrolled at a Michigan public university, the

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 eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

     Sec. 263. (1) Included in the appropriation in section 236 for

fiscal year 2014-2015 for MSU AgBioResearch is $2,982,900.00 and

included in the appropriation in section 236 for MSU extension is

$2,645,200.00 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 rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

project GREEEN and its program priorities.

     Sec. 263a. (1) Not later than September 30 of each year,

Michigan State University shall submit a report on MSU

AgBioResearch and MSU extension to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

the house and senate fiscal agencies, and the state budget director

for the preceding school academic fiscal year.

     (2) The report required under subsection (1) shall include all

of the following:

     (a) Total funds expended by MSU AgBioResearch and by MSU

extension service identified by state, local, private, federal, and

university fund sources.

     (b) The metric goals that were used to evaluate the impacts of

programs operated by MSU extension and MSU AgBioResearch. It is the

intent of the legislature that the following metric goals will be

used to evaluate the impacts of those programs:

     (i) Increasing the number of agriculture and food-related firms

collaborating with and using services of research and extension

faculty and staff by 3% per year.

     (ii) Increasing the number of individuals utilizing MSU

extension's educational services by 5% per year.

     (iii) Increasing external funds generated in support of research

and extension, beyond state appropriations, by 10% over the amounts

generated in the past 3 state fiscal years.

     (iv) Increasing the sector's total economic impact from today's

$71,000,000,000.00 to $100,000,000,000.00.

     (v) Doubling Michigan's agricultural exports from

$1,750,000,000.00 to $3,500,000,000.00.

     (vi) Increasing jobs in the food and agriculture sector by 10%.

     (vii) Improving access by Michigan consumers to healthy foods

by 20%.

     (c) A review of major programs within both MSU AgBioResearch

and MSU extension with specific reference to accomplishments,

impacts, and the metrics described in subdivision (b), including a

specific accounting of Project GREEEN expenditures and the impact

of those expenditures.

     Sec. 264. Included in the appropriation in section 236 for

fiscal year 2013-2014 2014-2015 for Michigan State University is

$80,000.00 for the Michigan future farmers of America association.

This $80,000.00 allocation shall not supplant any existing support

that Michigan State University provides to the Michigan future

farmers of America association.

     Sec. 265. (1) Payments under section 265a for performance

funding shall only be made to a public university that certifies to

the state budget director by August 31, 2013 2014 that its board

did not adopt an increase in tuition and fee rates for resident

undergraduate students after September 1, 2012 2013 for the 2012-

2013 2013-2014 academic year and that its board will not adopt an

increase in tuition and fee rates for resident undergraduate

students for the 2013-2014 2014-2015 academic year that is greater

than 3.75%. 3.2%. As used in this subsection:

     (a) Subject to subdivision (c), "fee" means any board-

authorized fee that will be paid by more than 1/2 of all resident

undergraduate students at least once during their enrollment at a

public university. A university increasing a fee that applies to a

specific subset of students or courses shall provide sufficient

information to prove that the increase applied to that subset will

not cause the increase in the average amount of board-authorized

total tuition and fees paid by resident undergraduate students in

the 2013-2014 2014-2015 academic year to exceed the limit

established in this subsection.

     (b) "Tuition and fee rate" means the average of full-time

rates for all undergraduate classes, based on an average of the

rates authorized by the university board and actually charged to

students, deducting any uniformly-rebated or refunded amounts, for

the 2 semesters with the highest levels of full-time equated

resident undergraduate enrollment during the academic year.

     (c) For purposes of subdivision (a), for a public university

that compels resident undergraduate students to be covered by

health insurance as a condition to enroll at the university, "fee"

includes the annual amount a student is charged for coverage by the

university-affiliated group health insurance policy if he or she

does not provide proof that he or she is otherwise covered by

health insurance. This subdivision does not apply to limited

subsets of resident undergraduate students to be covered by health

insurance for specific reasons other than general enrollment at the

university.

     (2) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

a payment under section 265a for performance funding has satisfied

the tuition restraint requirements of this section. The state

budget director shall have the sole authority to determine if a

public university has met the requirements of this section.

Information reported by a public university to the state budget

director under this subsection shall also be reported to the house

and senate appropriations subcommittees on higher education and the

house and senate fiscal agencies.

     Sec. 265a. (1) Appropriations to public universities in

section 236 for fiscal year 2014-2015 for performance funding shall

be paid only to a public university that complies with section 265

and certifies to the state budget director, the house and senate

appropriations subcommittees on higher education, and the house and

senate fiscal agencies by August 31, 2013 2014 that it complies

with all of the following requirements:

     (a) The university participates in reverse transfer agreements

described in section 286 with at least 3 Michigan community

colleges or has made a good-faith effort to enter into reverse

transfer agreements.

     (b) The university does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

     (c) The university participates in the Michigan transfer

network created as part of the Michigan association of collegiate

registrars and admissions officers transfer agreement.

     (2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for performance funding to those public universities

that meet the requirements under subsection (1), distributed in

proportion to their performance funding appropriation amounts under

section 236.

     (3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September 17, 2013, 2014,

regarding any performance funding amounts that are not paid to a

public university because it did not comply with 1 or more

requirements under subsection (1) and any reappropriation of funds

under subsection (2).

     (4) Performance funding amounts described in section 236 are

distributed based on the following formula:

     (a) Proportional to each university's share of total

operations funding appropriated in fiscal year 2010-2011, 50.0%.

(b) (a) Based on weighted undergraduate completions in

critical skills areas, 22.2%.11.1%.

(c) (b) Based on research and development expenditures, for

universities classified in Carnegie classifications as

doctoral/research universities, research universities (high

research activity), or research universities (very high research

activity) only, 11.1%.5.6%.

(d) (c) Based on 6-year graduation rate, total degree

completions, and institutional support as a percentage of core

expenditures, and students receiving Pell grants, scored against

national Carnegie classification peers and weighted by total

undergraduate fiscal year equated students, 66.7%. 33.3%.

     (5) For purposes of determining the score of a university

under subsection (4)(c), (4)(d), each university is assigned 1 of

the following scores:

     (a) A university classified as in the top 20%, a score of 3.

     (b) A university classified as above national median, a score

of 2.

     (c) A university classified as improving, a score of 2. It is

the intent of the legislature that, beginning in the 2014-2015

2015-2016 state fiscal year, a university classified as improving

is assigned a score of 1.

     (d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

     (6) For purposes of this section, "Carnegie classification"

shall mean the basic classification of the university according to

the most recent version of the Carnegie classification of

institutions of higher education, published by the Carnegie

foundation for the advancement of teaching.

     Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year 2013-2014 2014-2015 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year 2013-2014

2014-2015 tuition and fee charges to HEIDI within 15 days of being

adopted.

     Sec. 268. (1) For the fiscal year ending September 30, 2013,

2014, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

     (2) Appropriations in section 236(8)(f) for North American

Indian tuition waivers shall be paid to universities under section

2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for

amounts included in university operations appropriations. If funds

are insufficient to support the entire cost of waivers, amounts

shall be prorated.

(3) (2) By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies for the preceding fiscal

year a report on North American Indian tuition waivers for the

preceding fiscal year that includes, but is not limited to, all of

the following information for each postsecondary institution:

     (a) The total number of waiver applications.

     (b) The total number of waivers granted and the monetary value

of each waiver.

     (c) The number of students who withdraw from classes.

     (d) The number of students who successfully complete a degree

Senate Bill No. 768 as amended May 6, 2014

or certificate program and the 6-year graduation rate.

     Sec. 269. For fiscal year 2013-2014, 2014-2015, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

     Sec. 270. For fiscal year 2013-2014 2014-2015 from the amount

appropriated in section 236 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.

     Sec. 271a. It is the intent of the legislature that a public

university that receives funds under section 236 shall not

participate in any instructional activity that encourages or

discourages union organizing of employees, including, but not

limited to, participating with any business or union, or group of

businesses or unions, in hosting, sponsoring, administering, or in

any way facilitating an academy, seminar, class, course,

conference, or program that provides instruction, in whole or in

part, in techniques for encouraging or discouraging employees in

regard to union organizing. The appropriation in section 236 for

any university that participates in an activity described in this

section shall be reduced by $500,000.00 for each occurrence.

<<SEC. 271B. BY OCTOBER 15 OF EACH YEAR, EACH PUBLIC

UNIVERSITY RECEIVING FUNDS UNDER SECTION 236 SHALL SUBMIT A REPORT

TO THE HOUSE AND SENATE APPROPRIATIONS SUBCOMMITTEES ON HIGHER

EDUCATION, THE HOUSE AND SENATE FISCAL AGENCIES, AND THE STATE

BUDGET DIRECTOR ON THE NUMBER OF STUDENTS WHO HAD HEALTH INSURANCE

AND THE NUMBER OF STUDENTS WHO DID NOT HAVE HEALTH INSURANCE IN THE PREVIOUS FISCAL YEAR.  THE REPORT SHALL ALSO INCLUDE HOW MUCH EACH

UNIVERSITY SPENT ON HEALTH SERVICES FOR UNINSURED STUDENTS.>>

     Sec. 272a. By February 15, 2014, of each year, each public

university receiving funds under section 236 shall submit a report

to the house and senate appropriations subcommittees on higher

education, the house and senate fiscal agencies, and the state

budget director regarding the rejection of transfer credits by the

university in the prior year. The report shall include information

on the number of credits earned by incoming resident students at

other postsecondary institutions in this state, with the equivalent

of a letter grade of C or higher, that were rejected by the

university for transfer, reported by both academic program area and

prior institution, along with explanatory information regarding the

rationale for the rejection of the credits. Data may be reported on

either an academic or calendar year basis.

     Sec. 273. It is the intent of the legislature that each public

university shall submit a report to the house and senate

appropriations committees, the house and senate fiscal agencies,

and the state budget director by October 15, 2013, 2014, on the

university's efforts to accommodate the sincerely held religious

beliefs of students enrolled in accredited counseling degree

programs at the university.

     Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of community health by December 1, 2013 2014 that

includes all of the following:

     (a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant national institutes of

health guidelines pertaining to embryonic stem cell derivation.

     (b) A list of all human embryonic stem cell lines submitted by

the organization to the national institutes of health for inclusion

in the human embryonic stem cell registry before and during fiscal

year 2012-2013, 2013-2014, and the status of each submission as

approved, pending approval, or review completed but not yet

accepted.

     (c) Number of human embryonic stem cell lines derived and not

submitted for inclusion in the human embryonic stem cell registry,

before and during fiscal year 2012-2013.2013-2014.

     Sec. 274a. (1) It is the intent of the legislature that a

public university that receives funds in section 236 not provide

health insurance or other fringe benefits for any adult coresident

of an employee of the university who is not married to or a

dependent of that employee or for any dependent of such an adult

coresident.

     (2) It is the intent of the legislature that each public

university receiving funds in section 236 submit a report by

December 1, 2013 2014 to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director containing the number of

individuals described in subsection (1) who received health

insurance or other fringe benefits provided by the university in

fiscal year 2012-2013 2013-2014 and the cost to the university of

providing those benefits.

     Sec. 276. (1) Included in the appropriation for fiscal year

2013-2014 2014-2015 for each public university in section 236 is

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

future faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

     (2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

     Sec. 277. (1) Included in the appropriation for fiscal year

2013-2014 2014-2015 for each public university in section 236 is

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

college day program that is intended to introduce academically or

economically disadvantaged schoolchildren to the potential of a

college education. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Public universities should encourage participation from those who

would otherwise not adequately be represented in the student

population.

     (2) Individual program plans of each public 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 public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

     (3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

     Sec. 278. (1) Included in section 236 for fiscal year 2013-

2014 2014-2015 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks select student support services program for

developing academically or economically disadvantaged student

retention programs for 4-year public and independent educational

institutions in this state. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

student population.

     (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 described in this section shall be

administered by the workforce development agency.

     Sec. 279. (1) Included in section 236 for fiscal year 2013-

2014 2014-2015 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 or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

     (2) The grants shall be made under the program described in

this section 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 described in this section shall be

administered by the workforce development agency.

     Sec. 280. (1) Included in the appropriation for fiscal year

2013-2014 2014-2015 for each public university in section 236 is

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

visiting professors program which is intended to increase the

number of instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

     (2) The program described in this section shall be

administered by the workforce development agency.

     Sec. 281. (1) Included in the appropriation for fiscal year

2013-2014 2014-2015 in section 236 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 academically or economically disadvantaged

students who enroll in and complete K-12 teacher education programs

at the baccalaureate level. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

teacher education student population.

     (2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

     (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 described in this section.

     Sec. 282. Each institution receiving funds under section 278,

279, or 281 shall notify the workforce development agency by April

15, 2014 of each year as to whether it will expend by the end of

its fiscal year the funds received under section 278, 279, or 281.

Notwithstanding the award limitations in sections 278 and 279, the

amount of funding reported as not being expended will be

reallocated to the institutions that intend to expend all funding

received under section 278, 279, or 281.

     Sec. 283. (1) From the amount appropriated in section 236, the

public 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. Public universities

shall also work with the center for educational performance and

information to design and implement maintain a systematic approach

for accomplishing this task.

     (2) Michigan high schools shall systematically inform the

public 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. 284. From the amount appropriated in section 236, the

public 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. Public universities shall also work with the

center for educational performance and information to design and

implement maintain a systematic approach for accomplishing this

task.

     Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending from

state sources for higher education for fiscal year 2014-2015 under

article III is estimated at $1,430,467,700.00 and the amount of

that state spending from state sources to be paid to local units of

government for fiscal year 2014-2015 is estimated at $0.

     Enacting section 2. This amendatory act takes effect October

1, 2014.