Legislative Analysis
Phone: (517) 373-8080
MICHIGAN PROMISE ZONE AUTHORITY ACT REVISIONS
http://www.house.mi.gov/hfa
Senate Bill 555 (S-3) as passed by the Senate Analysis available at
Sponsor: Sen. Sarah Anthony http://www.legislature.mi.gov
House Committee: Appropriations
Senate Committee: Appropriations
Complete to 2-20-24
SUMMARY:
Senate Bill 555 amends the Michigan Promise Zone Authority Act to add residency
requirements for members appointed to promise zone authority boards, expand the definition
of student success programming, and clarify the definition of administrative costs.
Current law provides for the various requirements for members appointed to a promise zone
authority board. The bill would add residency requirements for members appointed by
legislative leadership. Residency would be defined as either residing within the borders of the
promise zone or within reasonable proximity of it. Reasonable proximity would include
residing within a county contiguous to the promise zone.
Promise zones may currently authorize expenditures on activities that help improve student
readiness at a postsecondary institution. The bill would expand student readiness to include
success programming that aims to increase degree or certificate attainment.
Finally, the bill adds limitations to the definition of administrative costs. Current law limits
promise zone administrative costs to 15% of revenue received from capture of the State
Education Tax. The bill would exclude both costs for student services personnel and
expenditures related to educational improvement activities or success programming and
postsecondary readiness as eligible administrative costs.
MCL 390.1665, 390.1667, and 390.1671
FISCAL IMPACT:
Senate Bill 555 would not have a fiscal impact on state or local governments. However,
promise zone authorities could face increase costs if they chose to offer additional readiness
and student success initiatives under the expanded definitions of the bill.
Fiscal Analyst: Perry Zielak
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
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Statutes affected:
Substitute (S-3): 390.1665
Senate Introduced Bill: 390.1665
As Passed by the Senate: 390.1665
As Passed by the House: 390.1665
Public Act: 390.1665
Senate Enrolled Bill: 390.1665