Schools would have to drop mascots or slogans deemed racially insensitive or risk a financial penalty under legislation in the state Senate.

The bill was introduced by Sen. Ian Conyers, D-Detroit, who says offensive mascots can hurt marginalized students and community members, and - because they make the state seem less welcoming and inclusive - put Michigan at a disadvantage when attempting to lure new out-of-state or international business.

"In the failure of a lot of districts to take action on culturally inappropriate or insensitive mascots and symbols, it's time for the state to set the tone on how things are done," he said.

Under the legislation, the State Board of Education and the Michigan Department of Civil Rights would create a list of race or ethnicity-based mascots considered offensive. Districts could obtain a waiver to keep a mascot or slogan that appears on the list if given the approval of the appropriate racial or ethnic group or organization, the bill says.

District that don't receive a waiver but choose to keep a mascot or slogan deemed racially insensitive would lose funding they receive through the state School Aid Act - the main source of dollars districts depend on to operate.

If approved, the legislation would go into effect in 2019.

The issue of offensive mascots flared up earlier this year in Paw Paw, where members of Michigan's Native American community expressed frustration with the school board's 4-3 decision to keep the district's Redskins mascot and logo in place.

However, the issue stretches back years in Michigan.

In 2003, the State Board of Education in 2003 adopted a resolution 'strongly recommending' the school districts eliminate Native American mascots, nicknames, logos and fight songs.

Later, in 2013, the U.S. Department of Education dismissed a complaint, brought by the Michigan Department of Civil Rights, that sought to end the use of such mascots and imagery in Michigan K-12 schools. A letter filed by the Michigan civil rights office as part of the complaint shows 35 districts in the state with athletic teams named after Native Americans, such as the White Pigeon Chiefs and Athens Indians.

And earlier this year, the Michigan Attorney General's Office issued a legal opinion that the state superintendent of public instruction could not withhold funding from districts with Native American logos deemed culturally insensitive or degrading. State Superintendent Brian Whiston, who has expressed sympathy with Native American groups upset with the use of their imagery on mascots and logos, requested the opinion.

Conyers said that for districts where the mascot name has not generated controversy - such as the Manchester Flying Dutchman in Washtenaw County and the Caledonia Fighting Scots in Kent County - residents could give the OK for the continued use of the imagery in question.

"I think there's enough people of those heritages in those areas to say we're OK with it," he said.

But when districts have a mascot depicting someone of Native American heritage - in an area where members of that group are not represented in the population - it's problematic, Conyers said.

"In the instances when you've got a mascot that clearly looks like someone of Inuit heritage in an area that's ethnically not - I think if you would ask them, they would say I'm not your mascot," he said.

The bill has been referred to the Senate Education Committee. Conyers said he has not yet heard whether the committee's chairmen, Sen. Phil Pavlov, R-St. Clair, will take up the bill for a hearing.