Legislative Analysis
Phone: (517) 373-8080
EXPAND EXPENSES COVERED UNDER THE MICHIGAN
http://www.house.mi.gov/hfa
PROMISE ZONE AUTHORITY ACT
Analysis available at
Senate Bill 350 (S-1) as passed by the Senate http://www.legislature.mi.gov
Sponsor: Sen. Rosemary Bayer
House Committee: Appropriations
Senate Committee: Appropriations
Complete to 2-20-24
SUMMARY:
Senate Bill 350 would amend the Michigan Promise Zone Authority Act to expand the
definition of “qualified educational expenses” that could be covered under an authority’s
promise zone development plan.
Currently, the act defines qualified educational expenses as institutional tuition and fees,
books, supplies, and course-required equipment.
The bill would expand qualified educational expenses to include the following: the cost of
housing and food; transportation expenses; federal student loan fees; miscellaneous expenses
that could include a personal computer; an allowance for child care or dependent care;
disability-related costs; cost to obtain a license, certification or professional credential; and
study abroad program costs.
MCL 390.1663
FISCAL IMPACT:
Senate Bill 350 would not have a fiscal impact on state government or affect State Education
Tax (SET) collections, but could increase costs to promise zone authorities. As more
expenses would be covered for students under the expanded definition of qualified
educational expenses, the promise zone authority would face increased expenditures to cover
the broader list of student expenses if the authority offers additional educational expenses
under their development plan.
Promise zone authorities are funded through one of three methods: private donations,
revenues, or other sources approved by the authority or the state. Primarily, a promise zone
authority captures a portion of SET growth following the establishment of the promise zone.
Specifically, the promise zone receives 50% of the growth in SET revenue as calculated from
the base year in which the promise zone begins providing qualified educational expenses to
students. In order to receive revenues from the tax on an annual basis, the promise zone
authority must continue to provide annual qualified educational expenses. The bill does not
change the funding formulas or revenue collection.
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-1): 390.1663
Senate Introduced Bill: 390.1663
As Passed by the Senate: 390.1663