HOUSE BILL NO. 5899
June 24, 2020, Introduced by Rep. Camilleri and
referred to the Committee on Education.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 256 (MCL 388.1856), as amended by 2020 PA 69.
the people of the state of michigan enact:
Sec. 256. (1) The funds appropriated in section 236
for the tuition incentive program must 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 that 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 must
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 must 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
December 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 must 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 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.
(4) 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) For phase I, all of the following apply:
(a) Payments for associate degree or certificate programs
must 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) Except as otherwise provided in section 3(d) of the
Michigan reconnect grant act and section 17 of the Michigan reconnect grant
recipient act, 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.
(11) Any unexpended and unencumbered funds remaining on
September 30, 2020 from the amounts appropriated in section 236 for the tuition
incentive program for fiscal year 2019-2020 do not lapse on September 30, 2020,
but continue to be available for expenditure for tuition incentive program
funds under a work project account.
(12) 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 must be
calculated using the established success rate methodology developed by the
center in collaboration with the postsecondary institutions.
(13) If a qualified postsecondary institution does not report
the data necessary to comply with subsection (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 (12) by December
1,
2020.
(14) Beginning in fiscal year 2020-2021, if a qualified
postsecondary institution does not report the data necessary to complete the
reporting in subsection (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.