The bill will directly impact state laws governing higher education funding mechanisms, particularly the operation of the Michigan Education Trust, which provides families with options to pre-pay for college tuition at selected institutions. Amendments to sections regarding refunds and contract termination are significant as they provide more security for both buyers and beneficiaries, ensuring that payment plans align better with the realities of student admission and college attendance. These changes may lead to an increased number of families participating in advance tuition payment programs, thereby potentially improving college enrollment rates within the state.
Summary
Senate Bill 1001 aims to amend the Michigan Education Trust Act by modifying provisions related to advance tuition payment contracts. The bill seeks to enhance the structure of tuition payment plans for residents who wish to secure funding for higher education expenses. Key amendments include defining terms associated with the contracts, clarifying the responsibilities of the trust and its board of directors, and outlining the conditions under which contracts can be terminated or refunded. By creating a more robust framework for managing these contracts, the bill intends to facilitate access to financial assistance for students pursuing postsecondary education in Michigan.
Sentiment
The general sentiment surrounding SB1001 appears to be supportive, with an understanding that it addresses important needs in the landscape of higher education financial planning. This perspective is prevalent among educational advocates and legislators who underscore the importance of making college more affordable and accessible to Michigan residents. While there may be some concern regarding implementation and oversight of the trust’s contracts, the overall reception indicates a positive acknowledgment of the bill's intentions.
Contention
Notable contention surrounds the operational aspects of the advance tuition payment contracts, particularly regarding what happens if a beneficiary does not utilize the funds as intended. As the bill modifies the terms of refunds and potential contract terminations, debates may emerge about the fairness and transparency of these provisions. Stakeholders, including educational institutions and families, may voice concerns about how these changes affect their financial commitments and expectations, leading to discussions about the future of tuition funding in Michigan.
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Education: other; definition of qualified higher education expenses under Michigan education savings program; expand to include certain K-12 tuition expenses. Amends sec. 2 of 2000 PA 161 (MCL 390.1472).
Higher education: financial aid; certain requirements pertaining to tuition grants; modify. Amends title & secs. 1, 2, 3, 4, 5 & 6 of 1966 PA 313 (MCL 390.991 et seq.).
Education: other; definition of qualified higher education expenses under Michigan education savings program; expand to include certain K-12 tuition expenses. Amends sec. 2 of 2000 PA 161 (MCL 390.1472).
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Individual income tax: retirement or pension benefits; 3-tier limitations and restrictions on deduction for retirement or pension benefits; modify. Amends sec. 30 of 1967 PA 281 (MCL 206.30).
Individual income tax: retirement or pension benefits; limitations and restrictions on deductions of certain retirement or pension benefits, revenue distributions, earned income tax credit, rebate payments, rebate and revitalization and placemaking funds; revise, increase, and provide for. Amends title & secs. 30, 51, 272 & 695 of 1967 PA 281 (MCL 206.30 et seq.) & adds secs. 51h, 476 & 696.
Individual income tax: exemptions; increasing personal exemption, reducing income tax rate, lowering age for unrestricted deduction, and increasing deduction for certain retirement or pension benefits; provide for. Amends secs. 30 & 51 of 1967 PA 281 (MCL 206.30 & 206.51).