SB-0857, As Passed Senate, May 3, 2018

SUBSTITUTE FOR

SENATE BILL NO. 857

     A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 236, 236a, 236b, 236c, 241, 245, 251, 252,

256, 263, 264, 265, 265a, 267, 268, 269, 270, 274, 274c, 274d,

275b, 276, 277, 278, 279, 280, 281, 282, and 289 (MCL 388.1836,

388.1836a, 388.1836b, 388.1836c, 388.1841, 388.1845, 388.1851,

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

388.1867, 388.1868, 388.1869, 388.1870, 388.1874, 388.1874c,

388.1874d, 388.1875b, 388.1876, 388.1877, 388.1878, 388.1879,

388.1880, 388.1881, 388.1882, and 388.1889), sections 236, 236a,

236b, 236c, 241, 245, 251, 252, 256, 263, 264, 265, 265a, 267, 268,

269, 270, 274, 274c, 276, 277, 278, 279, 280, 281, and 282 as

amended and section 274d as added by 2017 PA 108, section 275b as

added by 2015 PA 44, and section 289 as amended by 2013 PA 60, and

by adding sections 245a, 265b, 274e, and 274f.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

article, the amounts listed in this section are appropriated for

higher education for the fiscal year ending September 30, 2018,

2019, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

     (a) The gross appropriation is $1,629,224,400.00.

$1,680,147,700.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

$1,629,224,400.00.$1,680,147,700.00.

     (b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

     (i) Total federal revenues, $111,526,400.00.$119,026,400.00.

     (ii) Total local revenues, $0.00.

     (iii) Total private revenues, $0.00.

     (iv) Total other state restricted revenues,

$238,443,500.00.$385,688,300.00.

     (v) State general fund/general purpose money,

$1,279,254,500.00.$1,175,433,000.00.

     (2) Amounts appropriated for public universities are as

follows:

     (a) The appropriation for Central Michigan University is

$85,654,400.00, $83,925,500.00 for operations and $1,728,900.00 for

performance funding.$88,220,800.00, $85,654,400.00 for operations,

$1,760,600.00 for performance funding, and $805,800.00 for campus

initiatives.

     (b) The appropriation for Eastern Michigan University is

$75,169,900.00, $73,593,800.00 for operations and $1,576,100.00 for

performance funding.$77,743,800.00, $75,169,900.00 for operations,

$1,809,400.00 for performance funding, and $764,500.00 for campus

initiatives.

     (c) The appropriation for Ferris State University is

$53,595,500.00, $52,259,900.00 for operations and $1,335,600.00 for

performance funding.$55,439,600.00, $53,595,500.00 for operations,

$1,355,200.00 for performance funding, and $488,900.00 for campus

initiatives.

     (d) The appropriation for Grand Valley State University is

$70,100,100.00, $68,227,900.00 for operations and $1,872,200.00 for

performance funding.$72,679,900.00, $70,100,100.00 for operations,

$1,956,500.00 for performance funding, and $623,300.00 for campus

initiatives.

     (e) The appropriation for Lake Superior State University is

$13,775,000.00, $13,567,400.00 for operations and $207,600.00 for

performance funding.$14,114,700.00, $13,775,000.00 for operations,

$212,000.00 for performance funding, and $127,700.00 for campus

initiatives.

     (f) The appropriation for Michigan State University is

$344,404,800.00, $275,862,100.00 for operations, $5,377,000.00 for

performance funding, $33,913,100.00 for MSU AgBioResearch, and

$29,252,600.00 for MSU Extension.$354,187,700.00, $281,239,100.00

for operations, $5,035,100.00 for performance funding,

$2,852,800.00 for campus initiatives, $34,930,500.00 for MSU

AgBioResearch, and $30,130,200.00 for MSU Extension.

     (g) The appropriation for Michigan Technological University is

$49,052,200.00, $48,097,500.00 for operations and $954,700.00 for

performance funding.$50,431,500.00, $49,052,200.00 for operations,

$897,400.00 for performance funding, and $481,900.00 for campus

initiatives.

     (h) The appropriation for Northern Michigan University is

$47,137,400.00, $46,279,200.00 for operations and $858,200.00 for

performance funding.$48,452,300.00, $47,137,400.00 for operations,

$861,000.00 for performance funding, and $453,900.00 for campus

initiatives.

     (i) The appropriation for Oakland University is

$51,235,900.00, $49,920,700.00 for operations and $1,315,200.00 for

performance funding.$53,329,700.00, $51,235,900.00 for operations,

$1,583,300.00 for performance funding, and $510,500.00 for campus

initiatives.

     (j) The appropriation for Saginaw Valley State University is

$29,766,100.00, $29,114,000.00 for operations and $652,100.00 for

performance funding.$30,806,800.00, $29,766,100.00 for operations,

$761,900.00 for performance funding, and $278,800.00 for campus

initiatives.

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

is $314,589,100.00, $308,639,000.00 for operations and

$5,950,100.00 for performance funding.$323,962,800.00,

$314,589,100.00 for operations, $6,193,300.00 for performance

funding, and $3,180,400.00 for campus initiatives.

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

$25,421,900.00, $24,803,300.00 for operations and $618,600.00 for

performance funding.$26,320,500.00, $25,421,900.00 for operations,

$649,900.00 for performance funding, and $248,700.00 for campus

initiatives.

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

$23,061,800.00, $22,549,300.00 for operations and $512,500.00 for

performance funding.$23,795,600.00, $23,061,800.00 for operations,

$523,600.00 for performance funding, and $210,200.00 for campus

initiatives.

     (n) The appropriation for Wayne State University is

$199,169,800.00, $196,064,500.00 for operations and $3,105,300.00

for performance funding.$204,517,000.00, $199,169,800.00 for

operations, $3,193,400.00 for performance funding, and

$2,153,800.00 for campus initiatives.

     (o) The appropriation for Western Michigan University is

$109,376,800.00, $107,440,900.00 for operations and $1,935,900.00

for performance funding.$112,253,300.00, $109,376,800.00 for

operations, $1,774,200.00 for performance funding, and

$1,102,300.00 for campus initiatives.

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

universities is appropriated from the following:

     (a) State school aid fund, $231,219,500.00.$379,786,300.00.

     (b) State general fund/general purpose money,

$1,260,291,200.00.$1,156,469,700.00.

     (4) The amount appropriated for Michigan public school

employees' retirement system reimbursement is $6,705,000.00,

$5,133,000.00, appropriated from the state school aid fund.

     (5) The amount appropriated for state and regional programs is

$315,000.00, appropriated from general fund/general purpose money

and allocated as follows:

     (a) Higher education database modernization and conversion,

$200,000.00.

     (b) Midwestern Higher Education Compact, $115,000.00.

     (6) 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.

     (7) Subject to subsection (8), the amount appropriated for

grants and financial aid is $127,583,200.00, $135,083,200.00,

allocated as follows:

     (a) State competitive scholarships,

$26,361,700.00.$32,361,700.00.

     (b) Tuition grants, $38,021,500.00.

     (c) Tuition incentive program, $58,300,000.00.$59,800,000.00.

     (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 waiver, $300,000.00.

     (8) The money appropriated in subsection (7) 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, $108,326,400.00.$115,826,400.00.

     (c) Contributions to children of veterans tuition grant

program, $100,000.00.

     (d) State general fund/general purpose money, $15,956,800.00.

     (9) For fiscal year 2017-2018 2018-2019 only, in addition to

the allocation under subsection (4), from the appropriations

described in subsection (1), there is allocated an amount not to

exceed $419,000.00 $669,000.00 for payments to participating public

universities, appropriated from the state school aid fund. A

university that receives money under this subsection shall use that

money solely for the purpose of offsetting the normal cost

contribution rate. As used in this subsection, "participating

public universities" means public universities that are a reporting

unit of the Michigan public school employees' retirement system

under the public school employees retirement act of 1979, 1980 PA

300, MCL 38.1301 to 38.1437, and that pay contributions to the

Michigan public school employees' retirement system for the state

fiscal year.

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

appropriations for the fiscal year ending on September 30, 2019

2020 for the items listed in section 236. The fiscal year 2018-2019

2019-2020 appropriations are anticipated to be the same as those

for fiscal year 2017-2018, 2018-2019, 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 2018 2019

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 2017-2018 2018-2019 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 2017-2018 2018-2019 in section 236, appropriations to the

department of technology, management, and budget in the act

providing general appropriations for fiscal year 2017-2018 2018-

2019 for state building authority rent, totaling an estimated

$144,995,300.00, $155,478,500.00, 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,

$12,570,900.00.$12,936,500.00.

     (b) Eastern Michigan University, $5,177,500.00.$7,083,900.00.

     (c) Ferris State University, $6,658,300.00.$8,275,000.00.

     (d) Grand Valley State University,

$7,057,800.00.$8,800,000.00.

     (e) Lake Superior State University,

$1,832,400.00.$2,285,800.00.

     (f) Michigan State University, $15,500,500.00.$16,790,400.00.

     (g) Michigan Technological University,

$7,225,100.00.$6,782,000.00.

     (h) Northern Michigan University, $7,786,500.00.$7,309,000.00.

     (i) Oakland University, $13,492,400.00.$12,665,000.00.

     (j) Saginaw Valley State University,

$10,918,500.00.$10,984,000.00.

     (k) University of Michigan - Ann Arbor,

$10,586,200.00.$11,861,000.00.

     (l) University of Michigan - Dearborn,

$9,581,500.00.$10,918,000.00.

     (m) University of Michigan - Flint,

$4,315,600.00.$6,244,800.00.

     (n) Wayne State University, $16,378,300.00.$16,480,200.00.

     (o) Western Michigan University,

$15,913,800.00.$16,062,900.00.

     Sec. 241. (1) Subject to sections 244 and 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, 2017. 2018. Except for Wayne State

University, each institution shall accrue its July and August 2018

2019 payments to its institutional fiscal year ending June 30,

2018.2019.

     (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, 2017, 2018, these data shall be submitted to

the state budget director by October 15, 2017. 2018. Public

universities with a fiscal year ending September 30, 2017 2018

shall submit preliminary HEIDI data by November 15, 2017 2018 and

final data by December 15, 2017. 2018. 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) A public university shall 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 and the next fiscal year.

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

project, anticipated fiscal year 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) 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 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) 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) 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 center 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) Whether a university professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

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

program.

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

program.

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

are held.

     (vii) Instructional resources offered to the program

instructors.

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

     (ix) Transportation services provided to students in the

program.

     Sec. 245a. (1) A public university shall develop, maintain,

and update a "campus safety information and resources" link,

prominently displayed on the homepage of its website, to a section

of its website containing all of the information required under

subsection (2).

     (2) The "campus safety information and resources" section of a

public university's website shall include, but not be limited to,

all of the following information:

     (a) Emergency contact numbers for police, fire, health, and

other services.

     (b) Hours, locations, phone numbers, and electronic mail

contacts for campus public safety offices and title IX offices.

     (c) A listing of safety and security services provided by the

university, including transportation, escort services, building

surveillance, anonymous tip lines, and other available security

services.

     (d) A public university's policies applicable to minors on

university property.

     (e) A directory of resources available at the university or

surrounding community for students or employees who are survivors

of sexual assault or sexual abuse.

     (f) An electronic copy of "A Resource Handbook for Campus

Sexual Assault Survivors, Friends and Family", published in 2018 by

the office of the governor in conjunction with the first lady of

Michigan.

     (g) 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.

     (3) 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.

     Sec. 251. (1) Payments of the amounts included in section 236

for the state competitive scholarship program shall be distributed

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

     (2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the

department of treasury shall determine an actual maximum state

competitive scholarship award per student, which shall be not less

than $1,000.00, that ensures that the aggregate payments for the

state competitive scholarship program do not exceed the

appropriation contained in section 236 for the state competitive

scholarship program. If the department determines that insufficient

funds are available to establish a maximum award amount equal to at

least $1,000.00, 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 $1,000.00 maximum award amount.

     (3) The department of treasury shall implement a proportional

competitive scholarship maximum award level for recipients enrolled

less than full-time in a given semester or term.

     (4) If a student who receives an award under this section has

his or her tuition and fees paid under the Michigan educational

trust program, pursuant to the Michigan education trust act, 1986

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

funds awarded under this section may be used for educational

expenses other than tuition and fees.

     (5) 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.

     (6) Veterans Administration benefits shall not be considered

in determining eligibility for the award of scholarships under 1964

PA 208, MCL 390.971 to 390.981.

     (7) Any unexpended and unencumbered funds remaining on

September 30, 2018 2019 from the amounts appropriated in section

236 for the state competitive scholarship program for fiscal year

2017-2018 2018-2019 do not lapse on September 30, 2018, 2019, but

continue to be available for the expenditure for state competitive

scholarships provided in the 2018-2019 2019-2020 fiscal year under

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

2017-2018 2018-2019 funds terminates at the end of the 2018-2019

2019-2020 fiscal year.

     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, 2017 for the 2017-2018

academic year. Beginning with the 2018-2019 academic year, tuition

grant awards shall be made to all eligible Michigan residents

enrolled in undergraduate degree programs who are qualified and who

apply before March 1 of each year for the next academic year.

     (3) Beginning with the 2018-2019 academic year, a tuition

grant may be renewed for not more than 10 semesters or its

equivalent in trimesters or quarters of undergraduate education, or

if an eligible applicant has not completed using the grant within

10 years after his or her eligibility is determined, whichever

occurs first. The department shall determine an equivalent to 10

semesters or its equivalent in trimesters or quarters of

undergraduate education for less than full-time but more than half-

time students.

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

subject to subsections (8) (7) and (9), (8), the department of

treasury shall determine an actual maximum tuition grant award per

student, which shall be no less than $2,000.00, $2,400.00, 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 $2,000.00, $2,400.00, 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 $2,000.00

$2,400.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least $2,000.00, $2,400.00, 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

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) (5) Any unexpended and unencumbered funds remaining on

September 30, 2018 2019 from the amounts appropriated in section

236 for the tuition grant program for fiscal year 2017-2018 2018-

2019 do not lapse on September 30, 2018, 2019, but continue to be

available for expenditure for tuition grants provided in the 2018-

2019 2019-2020 fiscal year under a work project account. The use of

these unexpended fiscal year 2017-2018 funds terminates at the end

of the 2018-2019 fiscal year.

(5) (6) 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) (7) 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) (8) Except as provided in subsection (5), (4), the

department of treasury shall not award more than $3,500,000.00

$4,200,000.00 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. The limit described in this

subsection does not apply to any other student financial aid

program or in combination with any other student financial aid

program.

(8) (9) The department of treasury shall not award tuition

grants to otherwise eligible students enrolled in an independent

college or university that does not report, in a form and manner

directed by and satisfactory to the department of treasury, by

October 31 of each year, all of the following:

     (a) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and successfully completed a

program or graduated.

     (b) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and took a remedial education

class.

     (c) The number of students in the most recently completed

academic year who in any academic year received a Pell grant at the

reporting institution and successfully completed a program or

graduated.

(9) (10) By February 1, 2018, 2019, each independent college

and university participating in the tuition grant program shall

report to the senate and house appropriations subcommittees on

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

state budget director on its efforts to develop and implement

sexual assault response training for the institution's title IX

coordinator, campus law enforcement personnel, campus public safety

personnel, and any other campus personnel charged with responding

to on-campus incidents, including information on sexual assault

response training materials and the status of implementing sexual

assault response training for institutional personnel.

     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

program defined as the academic period of 80 semester or 120 term

credits, or less, leading to an associate degree or certificate.

Students must be enrolled in a certificate or associate degree

program and taking classes within the program of study for a

certificate or associate degree. Tuition will not be covered for

courses outside of a certificate or associate degree program.

     (b) "Phase II" means the second part of the tuition incentive

program which provides assistance in the third and fourth year of

4-year degree programs.

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

     (d) "High school equivalency certificate" means that term as

defined in section 4.

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

financial thresholds to be eligible for tuition incentive program

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 August 31 of the school

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

achieving a high school equivalency 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 achieves a high school equivalency certificate or,

for students attending a 5-year middle college approved by the

Michigan department of education, be less than 21 years of age when

he or she graduates from high school.

     (iii) Be a United States citizen and a resident of this state

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 achievement

of a high school equivalency certificate. All program eligibility

expires 6 years from high school graduation or achievement of a

high school equivalency certificate.

     (v) 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 this state for 24 months within the 36 consecutive months

before application. The department shall accept certification of

Medicaid eligibility only from the department of health and human

services for the purposes of verifying if a person is Medicaid

eligible for 24 months within the 36 consecutive 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) Beginning in fiscal year 2017-2018, the department shall

not award more than $8,500,000.00 annually in tuition incentive

program funds to eligible students enrolled in the same college or

university in this state.

(4) (5) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall only accept standard per-credit hour tuition billings and

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(5) (6) 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 fiscal year 2017-2018, for persons enrolled at a

Michigan public university, the department shall pay lower division

resident tuition and mandatory fees for the current year. Beginning

in fiscal year 2018-2019, for persons enrolled at a Michigan public

university, the department shall pay mandatory fees for the current

year and a per-credit payment that does not exceed 3 times the

average community college in-district per-credit tuition rate as

reported on August 1 for the immediately preceding academic 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) (7) 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) (8) 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) (9) 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) (10) 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) (11) 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.

(11) (12) Any unexpended and unencumbered funds remaining on

September 30, 2018 2019 from the amounts appropriated in section

236 for the tuition incentive program for fiscal year 2017-2018

2018-2019 do not lapse on September 30, 2018, 2019, but continue to

be available for expenditure for tuition incentive program funds

provided in the 2018-2019 2019-2020 fiscal year under a work

project account. The use of these unexpended fiscal year 2017-2018

2018-2019 funds terminates at the end of the 2018-2019 2019-2020

fiscal year.

(12) (13) The department of treasury shall collaborate with

the center to use the P-20 longitudinal data system to report the

following information for each qualified postsecondary institution:

     (a) The number of phase I students in the most recently

completed academic year who in any academic year received a tuition

incentive program award and who successfully completed a degree or

certificate program. Cohort graduation rates for phase I students

shall be calculated using the established success rate methodology

developed by the center in collaboration with the postsecondary

institutions.

     (b) The number of students in the most recently completed

academic year who in any academic year received a Pell grant at the

reporting institution and who successfully completed a degree or

certificate program. Cohort graduation rates for students who

received Pell grants shall be calculated using the established

success rate methodology developed by the center in collaboration

with the postsecondary institutions.

(13) (14) If a qualified postsecondary institution does not

report the data necessary to comply with subsection (13) (12) to

the P-20 longitudinal data system, the institution shall report, in

a form and manner satisfactory to the department of treasury and

the center, all of the information needed to comply with subsection

(13) (12) by December 1, 2017.2019.

(14) (15) Beginning in fiscal year 2018-2019, 2019-2020, if a

qualified postsecondary institution does not report the data

necessary to complete the reporting in subsection (13) (12) to the

P-20 longitudinal data system by October 15 for the prior academic

year, the department of treasury shall not award phase I tuition

incentive program funding to otherwise eligible students enrolled

in that institution until the data are submitted.

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

fiscal year 2017-2018 2018-2019 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. 264. Included in the appropriation in section 236 for

fiscal year 2017-2018 2018-2019 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, 2017 2018 that its board

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

undergraduate students after September 1, 2016 2017 for the 2016-

2017 2017-2018 academic year and that its board will not adopt an

increase in tuition and fee rates for resident undergraduate

students for the 2017-2018 2018-2019 academic year that is greater

than 3.8% or $475.00, $490.00, whichever is greater. As used in

this subsection:

     (a) "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, as described in the

higher education institutional data inventory (HEIDI) user manual.

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 2017-2018

2018-2019 academic year to exceed the limit established in this

subsection.

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

rates paid by a majority of students in each undergraduate class,

based on an unweighted 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, as described in the higher

education institutional data inventory (HEIDI) user manual.

     (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.

     (3) Universities that exceed the tuition and fee rate cap

described in subsection (1) shall not receive a planning or

construction authorization for a state-funded capital outlay

project in fiscal year 2018-2019 2019-2020 or fiscal year 2019-

2020.2020-2021.

     (4) Notwithstanding any other provision of this act, the

legislature may at any time adjust appropriations for a university

that adopts an increase in tuition and fee rates for resident

undergraduate students that exceeds the rate cap established in

subsection (1).

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

section 236 for fiscal year 2017-2018 2018-2019 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, 2017 2018

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.

     (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 actively participates in and submits timely

updates to 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 30, 2017, 2018,

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%.

     (b) Based on weighted undergraduate completions in critical

skills areas, 11.1%.

     (c) Based on research and development expenditures, for

universities classified in Carnegie classifications as doctoral

universities: moderate research activity, doctoral universities:

higher research activity, or doctoral universities: highest

research activity only, 5.6%.

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

and institutional support as a percentage of core expenditures, and

the percentage of students receiving Pell grants, scored against

national Carnegie classification peers and weighted by total

undergraduate fiscal year equated students, 33.3%.

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

under subsection (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 2018-2019

2019-2020 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) As used in this section, "Carnegie classification" means

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.

     (7) It is the intent of the legislature to allocate more

funding based on performance metrics in future years.

     Sec. 265b. Appropriations to public universities in section

236 for fiscal year 2018-2019 for campus initiatives shall be paid

only to a public university that complies with sections 265 and

265a(1)(a) to (c). Allocations to universities are based on a

distribution proportional to each university's share of total

operations funding appropriated in fiscal year 2010-2011.

Appropriations for campus initiatives shall be limited to

expenditures on 1 or more of the following:

     (a) Campus safety programs.

     (b) Sexual assault prevention programs.

     (c) Student mental health programs.

     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 2017-2018 2018-2019 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 2017-2018

2018-2019 tuition and fee charges to HEIDI within 15 days of being

adopted.

     Sec. 268. (1) For the fiscal year ending September 30, 2018,

2019, 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(7)(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 proportionate to each institution's shortfall as

a percentage of its fiscal year 2017-2018 2018-2019 state

appropriation for operations.

     (3) 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 a report on North American

Indian tuition waivers for the preceding academic year that

includes, but is not limited to, all of the following information:

     (a) The number of waiver applications received and the number

of waiver applications approved.

     (b) For each university submitting information under

subsection (4), all of the following:

     (i) The number of graduate and undergraduate North American

Indian students enrolled each term for the previous academic year.

     (ii) The number of North American Indian waivers granted each

term, including to continuing education students, and the monetary

value of the waivers for the previous academic year.

     (iii) The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who withdrew

from the university each term during the previous academic year.

For purposes of this subparagraph, a withdrawal occurs when a

student who has been awarded the waiver withdraws from the

institution at any point during the term, regardless of enrollment

in subsequent terms.

     (iv) The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who

successfully complete a degree or certificate program, separated by

degree or certificate level, and the graduation rate for graduate

and undergraduate students attending under a North American Indian

tuition waiver who complete a degree or certificate within 150% of

the normal time to complete, separated by the level of the degree

or certificate.

     (4) A public university that receives funds under section 236

shall provide to the department of civil rights any information

necessary for preparing the report detailed in subsection (3),

using guidelines and procedures developed by the department of

civil rights.

     (5) The department of civil rights may consolidate the report

required under this section with the report required under section

223, but a consolidated report must separately identify data for

universities and data for community colleges.

     Sec. 269. For fiscal year 2017-2018, 2018-2019, 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 2017-2018, 2018-2019, 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. 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 health and human services by December 1, 2017

2018 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 2016-2017, 2017-2018, 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 2016-2017.2017-2018.

     Sec. 274c. By February 1, 2018, 2019, each university

receiving funds under section 236 shall report to the senate and

house appropriations subcommittees on higher education, the senate

and house fiscal agencies, and the state budget director on its

Senate Bill No. 857 as amended May 3, 2018

efforts to develop and implement sexual assault response training

for the university's title IX coordinator, campus law enforcement

personnel, campus public safety personnel, and any other campus

personnel charged with responding to on-campus incidents, including

information on sexual assault response training materials and the

status of implementing sexual assault response training for campus

personnel.

     Sec. 274d. By October 31, each university receiving funds

under section 236 shall report to the senate and house

appropriations subcommittees on higher education, the senate and

house fiscal agencies, and the state budget director its annual

title IX report, also known as the student sexual misconduct

report, issued by the title IX coordinator, as required under the

federal campus save act of 2013, Public Law 113-4, section 304, 127

, Stat 54, 89-92 (2013).

     Sec. 274e. Pursuant to section 4 of article VIII of the state

constitution of 1963, appropriations of state taxpayer funding

provided for in section 236 shall be expended to maintain Michigan

public universities. Each public university that receives state

funding shall provide the legislature with an annual accounting of

all of its income and expenditures.

<<SEC. 274F. EACH PUBLIC UNIVERSITY RECEIVING FUNDS UNDER SECTION

236 SHALL REQUIRE THAT THE GOVERNING BOARD AND THE PRESIDENT OF THE

UNIVERSITY RECEIVE NOT LESS THAN QUARTERLY REPORTS FROM THEIR TITLE IX

COORDINATOR OR TITLE IX OFFICE. THE REPORT SHALL CONTAIN AGGREGATED DATA

OF THE NUMBER OF SEXUAL MISCONDUCT REPORTS THAT THE OFFICE RECEIVED FOR

THE ACADEMIC YEAR, THE TYPES OF REPORTS RECEIVED, AND A SUMMARY OF THE

GENERAL OUTCOMES OF THE REPORTS AND INVESTIGATIONS. THE REPORT SHALL NOT

CONTAIN SPECIFIC IDENTIFYING INFORMATION.

Senate Bill No. 857 as amended May 3, 2018

>>.

     Sec. 275b. (1) Each public university receiving funds under

section 236 shall ensure that the public university does all of the

following in its admission application process if it knows that an

applicant for admission is currently serving, or has ever served,

as a member of the military, the national guard, National Guard, or

the military reserves:

     (a) Inform the applicant that he or she may receive academic

credit for college-level training and education he or she received

while serving in the military.

     (b) Inform the applicant that he or she may submit a

transcript of his or her college-level military training and

education to the public university.

     (c) If the applicant submits a transcript described in

subdivision (b), evaluate that transcript and notify the applicant

of what transfer credits are available to the applicant from the

public university for his or her college-level military training

and education.

     (2) As used in this section, "transcript" includes a joint

services transcript prepared for the applicant under the American

council on education registry of credit recommendations.

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

2017-2018 2018-2019 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

2017-2018 2018-2019 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 2017-

2018 2018-2019 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 2017-

2018 2018-2019 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

2017-2018 2018-2019 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

2017-2018 2018-2019 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 for fiscal year

2017-2018 2018-2019 under section 278, 279, or 281 shall provide to

the workforce development agency by April 15, 2018 2019 the

unobligated and unexpended funds as of March 31, 2018 2019 and a

plan to expend the remaining funds by the end of the fiscal year.

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. 289. (1) The Not less than every 4 years, the auditor

general shall periodically audit higher education institutional

data inventory (HEIDI) data submitted by all public universities

under section 241 and may perform audits of selected public

universities if determined necessary. The audits shall be based

upon the definitions, requirements, and uniform reporting

categories established by the state budget director in consultation

with the HEIDI advisory committee. The auditor general shall submit

a report of findings to the house and senate appropriations

committees and the state budget director no later than July 1 of

each year an audit takes place.

     (2) Student credit hours reports shall not include the

following:

     (a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

     (b) Student credit hours generated through distance learning

instruction for students not eligible for the public university's

in-state main campus resident tuition rate. However, in instances

where a student is enrolled in distance education and non-distance

education credit hours in a given term and the student's non-

distance education enrollment is at a campus or site located within

Michigan, student credit hours per the student's eligibility for

in-state or out-of-state tuition rates may be reported.

     (c) Student credit hours generated through credit by

examination.

     (d) Student credit hours generated through inmate prison

programs regardless of teaching location.

     (e) Student credit hours generated in new degree programs

created on or after January 1, 1975 and before January 1, 2013,

that were not specifically authorized for funding by the

legislature, except spin-off programs converted from existing core

programs, and student credit hours generated in any new degree

programs created after January 1, 2013, that are specifically

excluded from reporting by the legislature under this section.

     (3) "Distance learning instruction" as used in subsection (2)

means instruction that occurs solely in other than a traditional

classroom setting where the student and instructor are in the same

physical location and for which a student receives course credits

and is charged tuition and fees. Examples of distance learning

instruction are instruction delivered solely through the internet,

cable television, teleconference, or mail.

     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 2018-2019 under

article III of the state school aid act of 1979, 1979 PA 94, MCL

388.1836 to 388.1891, is estimated at $1,561,121,300.00 and the

amount of that state spending from state sources to be paid to

local units of government for fiscal year 2018-2019 is estimated at

$0.00.

     Enacting section 2. This amendatory act takes effect October

1, 2018.