HB-6650, As Passed House, December 3, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6650

A bill to amend 2006 PA 479, entitled

"Michigan promise grant act,"

by amending section 8 (MCL 390.1628), as amended by 2007 PA 42.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 8. (1) The department shall disburse Michigan promise

grant money to an approved postsecondary institution on the

student’s behalf, to a local promise zone authority under

subsection (4), or to a community foundation, in the following

state fiscal years, according to a payment procedure established by

the department:

(a) For a Michigan promise grant under section 5 or a Michigan

promise grant installment under section 6(2)(c), in the state

fiscal year that begins on the first October 1 following the end of

the academic year in which the student is eligible for that grant

or installment.

(b) For a Michigan promise grant installment under section

6(2)(a) or (b) or a Michigan promise grant under section 6(3), in

the state fiscal year that begins on October 1 in the academic year

in which the student is eligible for that installment or grant.

(2) An approved postsecondary educational institution shall

apply money received under subsection (1) on a student's behalf to

the student's outstanding indebtedness, if any, and pay the

remaining balance as follows:

(a) Unless subdivision (b) applies, to the student.

(b) If the money received by the institution under this

subsection is a grant installment under section 6(2)(a) or (b) and

the student elects to leave an approved postsecondary educational

institution without completing the classes in which he or she

enrolled, to the department. The student has no further right to

any money returned to the department under this subdivision.

(3) Subsection (2) shall not be considered as creating an

obligation on the part of an approved postsecondary educational

institution to loan or advance money to a student for the payment

of tuition, fees, or other costs or expenses incurred by the

student at that institution.

(4) A student who qualifies for a Michigan promise grant under

section 5, or who qualifies for a Michigan promise grant

installment under section 6(2)(c), may assign the proceeds of that

grant or grant installment to a local promise zone authority or to

a community foundation. The amount of the assignment shall not

exceed the amount that the community foundation or local promise

zone authority has paid on behalf of the student. The department

shall determine the manner and form of an assignment under this

subsection. If the department receives an assignment that complies

with this subsection, it shall disburse the student's Michigan

promise grant money to the local promise zone authority or

community foundation, and not to an approved postsecondary

institution on the student's behalf.

(5) ~~(4)~~ The department may promulgate rules to implement and

administer this act, including, but not limited to, 1 or more of

the following:

(a) Rules establishing the department's administrative

procedures for the Michigan promise grant program.

(b) Rules governing the qualification requirements for or the

award of Michigan promise grants under this act.

of ineligibility for a Michigan promise grant.

(d) Rules establishing what information or reports a student

or an approved postsecondary educational institution must provide

to establish eligibility and when that information or those reports

must be provided.

(e) Rules prescribing the reports to be made by a student

awarded a Michigan promise grant and by an approved postsecondary

educational institution to which a Michigan promise grant is paid.

(6) As used in this section:

(a) "Community foundation" means that term as defined in

section 261 of the income tax act of 1967, 1967 PA 281, MCL

206.261.

(b) "Local promise zone authority" means a promise zone