HOUSE BILL No. 6103


     September 17, 1998, Introduced by Reps. Raczkowski, Cropsey, McBryde, Kaza, Whyman, Walberg, Horton, Birkholz, Hammerstrom, McManus, Jansen, Lowe, Nye, Geiger, Gernaat, London, Sanborn, Dalman, Green, Bodem, Middaugh, DeVuyst, Goschka and Perricone and referred to the Committee on Colleges and Universities.


        A bill to amend 1960 PA 77, entitled

   "An act to create the Michigan higher education assistance
   authority and to prescribe its powers and duties; to authorize
   persons, corporations, and associations to make gifts to the
   authority; to prescribe the powers and duties of certain state
   officials; to authorize, ratify, and confirm certain guarantees
   of students' loans and authorize reguarantees; to authorize,
   ratify, and confirm certain guarantees of loans made to parents
   of students; to validate certain prior appropriations; and to
   authorize the transfer of certain appropriations to be trans-
   ferred to and administered by the authority,"

   by amending section 7 (MCL 390.957), as amended by 1990 PA 117.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 7.  (1) The authority may DO ALL OF THE FOLLOWING:

 2         (a) Guarantee 100% of the principal and interest of a loan

 3    of money, upon the terms and conditions as it prescribes, to a

 4    person attending or accepted to attend an eligible postsecondary

 5    educational institution to assist the person in meeting his or

 6    her expenses of postsecondary education incurred in any academic



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 1    year or to a parent of a person who meets the requirements for a

 2    loan as determined by the authority.

 3         (b) Take, hold, and administer real, personal, or mixed

 4    property and money, or any interest in property or money, and the

 5    income from the property, either absolutely or in trust, for a

 6    purpose of this act.  The authority may acquire property for this

 7    purpose by purchase or lease and by the acceptance of gifts,

 8    grants, bequests, devises, money, or loans.  An obligation

 9    incurred under this act shall not be a debt of the state.

10         (c) Enter into contracts with an eligible lender or with  a 

11    AN ELIGIBLE public or private postsecondary educational institu-

12    tion, upon the terms as may be agreed upon between the authority

13    and an institution, to provide for the administration by an

14    institution of a loan, or guarantee of a loan, made by the

15    authority, including applications for a loan and repayment of a

16    loan.

17         (d) Competitively contract for services, including consult-

18    ing services as needed to carry out the purposes of this act.

19         (e) Enter into an agreement with a group life insurance car-

20    rier to insure each person receiving a guaranteed loan under the

21    program.

22         (f) Require a person receiving a guaranteed loan to remit a

23    fee, which may include the payment of a group life insurance

24    premium.

25         (g) Receive state appropriations for the guaranty fund of

26    the loan program to be used to match deposits and to accept

27    contributions received by the authority for this purpose.



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 1         (h) Administer a state scholarship program according to the

 2    law and rules promulgated by the authority.

 3         (i) Administer an undergraduate scholar awards program

 4    according to the law and rules promulgated by the authority.

 5         (j) Receive funds from the federal government to assist in

 6    implementing federally supported programs administered under this

 7    act.

 8         (k) Administer an incentive awards program according to

 9    rules promulgated by the authority.

10         (2) TO BE ELIGIBLE FOR SUBSECTION (1)(A) AND (C), A POSTSEC-

11    ONDARY EDUCATIONAL INSTITUTION SHALL BE IN COMPLIANCE WITH THE

12    TAXPAYER-FUNDED ABORTION PROHIBITION ACT.

13         Enacting section 1.  This amendatory act does not take

14    effect unless Senate Bill No. _______ or House Bill No. _______

15    (request no. 04207'97 *) of the 89th Legislature is enacted into

16    law.

























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