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SB 350

Primary and Secondary Education - Educator Professional Development - Course on Student Well-Being and Flourishing

2025 Regular Session Introduced by Clarence Lam

Expands promise zone aid to cover broader nontuition costs (housing, transportation, childcare, devices, credentialing, study abroad) if included in the zone’s development plan.

Hearing 2/12 at 1:00 p.m.
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Bill Summary · SB 350

SB 350 — Michigan Promise Zone Authority Act (amendment to MCL 390.1663)

Status: Enacted as Public Act 99 of 2024 (assigned PA 0099'24; immediate effect — approved July 23, 2024)
Statute amended: Section 3 of 2008 PA 549 (MCL 390.1663)

Purpose / Intent

To broaden what a promise zone authority may count as “qualified educational expenses” when fulfilling its pledge of financial assistance to students. The change is intended to give local promise zone authorities flexibility to address the full cost of attending postsecondary education — not just tuition and course materials.

Key provisions / changes

  • Expands the statutory definition of "qualified educational expenses." Under prior law this term covered tuition and fees and course‑required books, supplies, and equipment. Under the amendment it may also include, if the promise zone’s development plan provides for them, a range of additional “other costs of attendance,” including:
    • Housing and food (on‑campus room and board)
    • Transportation expenses
    • Federal student loan fees
    • Miscellaneous expenses (explicitly may include a reasonable allowance for a personal computer)
    • Child care or other dependent‑care allowances
    • Disability‑related costs
    • Costs to obtain a license, certification, or a first professional credential
    • Reasonable costs for study‑abroad programs
  • The expansion is conditional: these additional expense categories may be included only if provided for in the promise zone authority’s development plan.
  • Does not change the formula for how promise zones are funded (see Fiscal note below).

Who is affected

  • Promise zone authorities and their governing bodies — they may revise development plans to cover a broader set of student expenses.
  • Students who reside in promise zones and meet program eligibility — potentially greater types and amounts of assistance available (e.g., housing, childcare, computers, credentialing costs).
  • Local entities that form or participate in promise zones (cities, townships, counties, school districts, intermediate districts meeting eligibility thresholds).

Fiscal and procedural effects

  • Funding mechanism unchanged: under the Act, 50% of growth in State Education Tax (SET) revenue above an established base year is captured to support promise zones. This bill does not alter SET collections or the capture share.
  • Fiscal impact: the State’s SET receipts and amount captured are unaffected, but promise zone authorities may face increased expenditures if they choose to cover the expanded expense categories. The nonpartisan analyses note it is unclear whether the change applies retroactively to existing promise zones.
  • Effective immediately upon enactment (PA 0099'24).

Practical implications

Promise zones gain flexibility to design more comprehensive financial assistance packages addressing non‑tuition barriers to postsecondary enrollment and completion (housing, care, credentialing, technology). Authorities must still include any expanded expense categories in their official development plans to qualify expenditures for captured SET revenues.

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

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