MI SB0312

Amends the Michigan Promise Zone Act to clarify definitions and governance structure for promise zone authorities that provide financial assistance for postsecondary education to eligible students in high-poverty areas.

Establishes an 11-member governing board consisting of 9 locally-appointed members, one member appointed by the senate majority leader, and one appointed by the speaker of the house, with 4-year terms and a limit of 3 government officials.

Requires promise zone development plans to specify the amount of financial assistance (minimum: associate degree costs; maximum: bachelor's degree costs at public universities or equivalent at private institutions in Michigan), funding sources, and any limitations on eligibility.

Allows authorities to use up to 15% of state education tax revenue captured for administrative costs and requires annual audited financial statements submitted to the department of education within 120 days of fiscal year-end.

Establishes a state capture mechanism where Michigan captures one-half of incremental growth in state education tax revenue in the promise zone and distributes those funds to the authority after its second year of payments, with captured funds reverting to the school aid fund if payments cease.