390.1424 Definitions.

325 words·~1 min read·/mi/chapter-390/390-1424

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Sec. 4.

As used in this act, except where the context clearly requires otherwise:

(a)"Advance tuition payment contract" means a contract entered into by the trust and a purchaser under section 6 to provide for the higher education of a qualified beneficiary.

(b)"Board" means the board of directors of the Michigan education trust described in section 10.

(c)"Fund" means the advance tuition payment fund created in section 9.

(d)"Internal revenue code" means the United States internal revenue code of 1986 in effect on January 1, 2024 or, at the option of the taxpayer, in effect for the current year.

(e)"Purchaser" means a person who makes or is obligated to make advance tuition payments under an advance tuition payment contract.

(f)"Qualified beneficiary" means any resident of this state.

(g)"State institution of higher education" means a college or university described in section 4, 5, or 6 of article VIII of the state constitution of 1963 or any 4-year degree-granting institution established by this state after December 23, 1986, which institution is designated by this state as a state institution of higher education for purposes of this act.

(h)"Trust" means the Michigan education trust created in section 5.

(i)"Tuition" means the quarter or semester charges imposed to attend a state institution of higher education and all mandatory fees required as a condition of enrollment as determined by the board.

(j)"Weighted average tuition cost of state institutions of higher education" means the tuition cost arrived at by adding the products of the annual undergraduate tuition cost at each state institution of higher education and its total number of undergraduate fiscal year equated students, and then dividing the gross total of this cumulation by the total number of undergraduate fiscal year equated students attending state institutions of higher education.

History: 1986, Act 316, Imd. Eff. Dec. 23, 1986 ;-- Am. 2024, Act 171 , Eff. Apr. 2, 2025