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HB 5829

Higher education: financial aid; state competitive scholarships; eliminate. Amends secs. 2, 3, 4, 5, 5a, 6, 7, 8, 9 & 10 of 1964 PA 208 (MCL 390.972 et seq.) & repeals acts and rescinds rules.

2023-2024 Regular Session Introduced by Samantha Steckloff

MCS closes to new recipients; caps existing awards to tuition and fees; MiLEAP administers; current recipients may renew; repeals old merit/work-study acts to save costs.

assigned PA 233'24
#highereducation:financialaid
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Bill Summary · HB 5829

Summary — HB 5829 (Enacted as Public Act 233 of 2024)

Sponsor: Rep. Samantha Steckloff
Subject: Higher education financial aid — Michigan Competitive Scholarship (MCS) program
Enacted: Approved by Governor Jan 17, 2025; Filed with Secretary of State Jan 17, 2025
Effective date: April 2, 2025

Purpose

HB 5829 amends the Michigan Competitive Scholarship statute (1964 PA 208, MCL 390.972 et seq.) to formally close the Michigan Competitive Scholarship (MCS) program to new recipients, update administrative references to the Department of Lifelong Education, Advancement, and Potential (MiLEAP), and repeal several apparently dormant state scholarship/grant laws and their implementing administrative rules.

Key provisions

  • Eligibility closed to new awardees: Students who first enroll in a postsecondary institution after the fiscal year ending September 30, 2023, and students who had not already received an MCS by that fiscal year-end, are ineligible for MCS awards under the statute.
  • Award cap for existing awards: State competitive scholarships awarded prior to the fiscal year ending September 30, 2023, “must not exceed the amount of tuition and fees for the full academic year” (as reported by the enrolled institution) — i.e., awards are limited to tuition/fees or a department-determined lesser amount based on student financial resources.
  • Administrative updates: Statutory language is revised to identify the Department of Lifelong Education, Advancement, and Potential (MiLEAP) as the entity administering the scholarship program; rulemaking and exam/renewal authorities remain with the department.
  • Continued program mechanics for existing recipients: Renewal rules, maximum renewal terms (undergraduate and graduate semester limits), residual scholarships, and honorary certificate provisions remain in statute for current awardees.
  • Repeals and rescissions: The bill repeals several older scholarship-related acts (see list below) and rescinds multiple administrative rule ranges that implemented those programs.

Who is affected

  • Ineligible going forward: Prospective students who first enroll after Sept. 30, 2023 (and who had not already received an MCS by that date) — they will not be eligible for MCS awards.
  • Current recipients: Students already awarded MCS before that date remain eligible under statutory renewal and award rules, subject to the tuition/fees cap and other program rules.
  • State administration: MiLEAP assumes administration/oversight language in statute; the Higher Education Assistance Authority references are updated/clarified where applicable.
  • Programs and rulemaking: Entities and stakeholders tied to the repealed acts and rescinded rules (listed below) will be affected by statutory removal of those programs.

Fiscal and program impact

  • State savings: The change aligns statutory eligibility with the higher education budget provision that already prevented new competitive scholarships for students first enrolling in FY 2022–23, thereby phasing out the program and reducing state costs over time.
  • Appropriations context: The state appropriated $19.9 million for state competitive scholarships for FY 2024–25. MiLEAP projected it has sufficient funds to meet obligations to current MCS recipients.

Repealed acts (selected)

  • Legislative Merit Award Program Act, 1976 PA 228
  • 1978 PA 105 (tuition differential grants)
  • 1986 PA 102 (part‑time, independent student grants)
  • 1986 PA 273 (Michigan Educational Opportunity Grant Program)
  • 1986 PA 288 (Michigan Work‑Study Program — undergraduate)
  • 1986 PA 303 (Michigan Work‑Study Program — graduate/professional)

Rescinded administrative rules (selected ranges)

  • R 390.1501–R 390.1512
  • R 390.1651–R 390.1663
  • R 390.1701–R 390.1709
  • R 390.1721–R 390.1728
  • R 390.1751–R 390.1759
  • R 390.1771–R 390.1779

Legislative timeline (highlights)

  • Introduced: June 25, 2024
  • House passage (with substitute): Dec 12, 2024
  • Senate passage: Dec 20, 2024
  • Approved by Governor: Jan 17, 2025
  • Effective date: April 2, 2025

For more details, see the enacted statute (1964 PA 208 as amended) and Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) guidance about current MCS recipients.

Compiled from official sources — confirm details with the bill’s official record.

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