2007 House Bill 5375 / 2008 Public Act 550

Authorize college tuition subsidy tax increment finance districts

Introduced in the House

Oct. 25, 2007

Introduced by Rep. Tim Melton (D-29)

To authorize the creation of “promise zone” tax increment financing authorities (TIFA) in a low income city, township, county, local school district, or intermediate school district, that would be authorized to “capture" one-half of any increases in the six-mill state education property tax revenue in the area and use the money to subsidize college tuition for students from the area, or allow it to be used by the public schools in the zone for certain "educational improvement activities".

Referred to the Committee on Education

Dec. 11, 2007

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Dec. 13, 2007

Substitute offered

To replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with more changes.

The substitute passed by voice vote

Amendment offered by Rep. Judy Emmons (R-70)

To establish that all the students attending a school located in a "promise zone" would be eligible for the tuitions subsidies it provides, even if they don't live within the zone.

The amendment failed 52 to 54 (details)

Amendment offered by Rep. Jacob Hoogendyk (R-61)

To remove a provision that would allow the "captured" tax revenue to also be used by the public schools in the zone for certain "educational improvement activities," rather than distributed to students as college tuition scholarships.

The amendment failed 43 to 62 (details)

Amendment offered by Rep. Jacob Hoogendyk (R-61)

To require that any portion of the "captured" tax revenue used by the public schools in the zone for certain "educational improvement activities" rather than distributed to students as college tuition scholarships be distributed equally among all public schools within the zone.

The amendment failed 48 to 57 (details)

Amendment offered by Rep. Paul Opsommer (R-93)

To not take the money that would be "captured" and sent to the promise zone authorities out of the School Aid Fund, but instead take it out of the state General Fund.

The amendment failed 51 to 54 (details)

Substitute offered by Rep. Tim Melton (D-29)

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Passed in the House 71 to 34 (details)

Motion by Rep. Dave Hildenbrand (R-86)

To give the bill immediate effect.

The motion passed 74 to 32 (details)

Received in the Senate

Jan. 9, 2008

Referred to the Committee on Education

Dec. 19, 2008

Substitute offered

To replace the previous version of the bill with one that divides the provisions among this bill and Senate Bill 861, which caps the number of "promise zones" at 10.

The substitute passed by voice vote

Passed in the Senate 31 to 0 (details)

To authorize the creation of up to 10 “promise zone” tax increment financing authorities (TIFA) in low income and low educational attainment areas that would be authorized to “capture" a portion of any increases in state education property tax revenue in the area and use the money to partially subsidize college tuition for students from the area attending institutions in Michigan. See also Senate Bill 861.

Received in the House

Dec. 19, 2008

To concur with the Senate-passed version of the bill, which caps the number of "promise zones" at 10.

Passed in the House 59 to 30 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2008