HIGHER ED.: DENYING FINANCIAL AID - S.B. 562: FLOOR ANALYSIS

Senate Bill 562 (as reported without amendment)

Sponsor: Senator Joel D. Gougeon

Committee: Education

CONTENT

The bill would amend Public Act 102 of 1986, which establishes a grant program for certain part-time independent students, to make ineligible for that aid a person who was subject to a court order denying a Federal benefit due to the conviction of any State or Federal offense for the distribution or possession of controlled substances. The person would not be eligible for the financial aid for the duration of the court order. The bill refers to Federal benefits as described in the Federal Comprehensive Drug Abuse Prevention and Control Act.

(Under the Comprehensive Drug Abuse Prevention and Control Act, "Federal benefit" means the issuance of any grant, contract, loan, professional license, or commercial license provided by an agency of the United States or by appropriated funds of the United States. "Federal benefit" does not include any retirement, welfare, Social Security, health, disability, veterans benefit, public housing, or other similar benefit, or any other benefit for which payments or services are required for eligibility.)

MCL 390.1283 et al. - Legislative Analyst: L. Arasim

FISCAL IMPACT

There could be additional administrative costs for Michigan public and private colleges and universities to determine if an individual was subject to a court order under the Federal Controlled Substances Act. The $2,584,509 level of FY 1997-98 State funding for the Part-time Independent Student Program would not be affected other than by a possible redistribution of funds to eligible students. The bill would have no fiscal impact on local government.

Date Completed: 2-4-98 - Fiscal Analyst: E. Jeffries

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.