HOUSE BILL No. 4395
February 27, 1997, Introduced by Reps. Agee, Gire, Prusi, Cherry, Tesanovich, Hanley, Kelly, DeHart, Brater, Schroer, Martinez, Baird, LaForge, Freeman, Vaughn, Olshove, Curtis, Dobronski, Emerson, Harder, Brewer, Thomas, Gubow, Bogardus, Price and Schermesser and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 502, 503, 504a, 512, 513, and 514a (MCL
380.502, 380.503, 380.504a, 380.512, 380.513, and 380.514a), as
amended by 1995 PA 289, and by adding sections 503b and 513b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 502. (1) A public school academy shall be organized
2 and administered under the direction of a board of directors in
3 accordance with this part and with bylaws adopted by the board of
4 directors. A public school academy corporation shall be orga-
5 nized under the nonprofit corporation act, Act No. 162 of the
6 Public Acts of 1982, being sections 450.2101 to 450.3192 of the
7 Michigan Compiled Laws 1982 PA 162, MCL 450.2101 TO 450.3192,
8 except that a public school academy corporation is not required
9 to comply with sections 170 to 177 of Act No. 327 of the Public
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1 Acts of 1931, being sections 450.170 to 450.177 of the Michigan
2 Compiled Laws 1931 PA 327, MCL 450.170 TO 450.177. To the
3 extent disqualified under the state or federal constitution, a
4 public school academy shall not be organized by a church or other
5 religious organization and shall not have any organizational or
6 contractual affiliation with or constitute a church or other
7 religious organization.
8 (2) Any of the following may act as an authorizing body to
9 issue a contract to organize and operate 1 or more public school
10 academies under this part:
11 (a) The board of a school district that operates grades K to
12 12. However, the board of a school district shall not issue a
13 contract for a public school academy to operate outside the
14 school district's boundaries, and a public school academy autho-
15 rized by the board of a school district shall not operate outside
16 that school district's boundaries.
17 (b) An intermediate school board. However, the board of an
18 intermediate school district shall not issue a contract for a
19 public school academy to operate outside the intermediate school
20 district's boundaries, and a public school academy authorized by
21 the board of an intermediate school district shall not operate
22 outside that intermediate school district's boundaries.
23 (c) The board of a community college. However, except as
24 otherwise provided in this subdivision, the board of a community
25 college shall not issue a contract for a public school academy to
26 operate in a school district organized as a school district of
27 the first class, a public school academy authorized by the board
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1 of a community college shall not operate in a school district
2 organized as a school district of the first class, the board of a
3 community college shall not issue a contract for a public school
4 academy to operate outside the boundaries of the community col-
5 lege district, and a public school academy authorized by the
6 board of a community college shall not operate outside the bound-
7 aries of the community college district. The board of a commu-
8 nity college also may issue a contract for not more than 1 public
9 school academy to operate on the grounds of an active or closed
10 federal military installation located outside the boundaries of
11 the community college district, or may operate a public school
12 academy itself on the grounds of such a federal military instal-
13 lation, if the federal military installation is not located
14 within the boundaries of any community college district and the
15 community college has previously offered courses on the grounds
16 of the federal military installation for at least 10 years.
17 (d) The governing board of a state public university.
18 However, the combined total number of contracts for public school
19 academies issued by all state public universities shall not
20 exceed 85 through 1996, and, after the initial evaluation under
21 section 501a, shall not exceed 100 through 1997, 125 through
22 1998, or 150 thereafter. Further, the total number of contracts
23 issued by any 1 state public university shall not exceed 50
24 through 1996, and thereafter shall not exceed 50% of the maximum
25 combined total number that may be issued under this subdivision.
26 (3) To obtain a contract to organize and operate 1 or more
27 public school academies, 1 or more persons or an entity may apply
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1 to an authorizing body described in subsection (2). The
2 application shall include at least all of the following:
3 (a) Identification of the applicant for the contract.
4 (b) Subject to the resolution adopted by the authorizing
5 body under section 503(4), a list of the proposed members of the
6 board of directors of the public school academy and a description
7 of the qualifications and method for appointment or election of
8 members of the board of directors.
9 (c) The proposed articles of incorporation, which shall
10 include at least all of the following:
11 (i) The name of the proposed public school academy.
12 (ii) The purposes for the public school academy
13 corporation. This language shall provide that the public school
14 academy is incorporated pursuant to this part and that the public
15 school academy corporation is a governmental entity.
16 (iii) The name of the authorizing body.
17 (iv) The proposed time when the articles of incorporation
18 will be effective.
19 (v) Other matters considered expedient to be in the articles
20 of incorporation.
21 (d) A copy of the proposed bylaws of the public school
22 academy.
23 (e) Documentation meeting the application requirements of
24 the authorizing body, including at least all of the following:
25 (i) The governance structure of the public school academy.
26 (ii) A copy of the educational goals of the public school
27 academy and the curricula to be offered and methods of pupil
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1 assessment to be used by the public school academy. To the
2 extent applicable, the progress of the pupils in the public
3 school academy shall be assessed using at least a Michigan educa-
4 tion assessment program (MEAP) test or an assessment instrument
5 developed under section 1279 for a state-endorsed high school
6 diploma.
7 (iii) The admission policy and criteria to be maintained by
8 the public school academy. The admission policy and criteria
9 shall comply with section 504. This part of the application also
10 shall include a description of how the applicant will provide to
11 the general public adequate notice that a public school academy
12 is being created and adequate information on the admission
13 policy, criteria, and process.
14 (iv) The school calendar and school day schedule.
15 (v) The age or grade range of pupils to be enrolled.
16 (f) Descriptions of staff responsibilities and of the public
17 school academy's governance structure.
18 (g) For an application to the board of a school district, an
19 intermediate school board, or board of a community college, iden-
20 tification of the local and intermediate school districts in
21 which the public school academy will be located.
22 (h) An agreement that the public school academy will comply
23 with the provisions of this part and, subject to the provisions
24 of this part, with all other state law applicable to public
25 bodies and with federal law applicable to public bodies or school
26 districts.
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1 (i) For a public school academy authorized by a school
2 district, an assurance that employees of the public school
3 academy will be covered by the collective bargaining agreements
4 that apply to other employees of the school district employed in
5 similar classifications in schools that are not public school
6 academies.
7 (j) A description of and address for the proposed physical
8 plant in which the public school academy will be located.
9 (4) An authorizing body shall oversee, or shall contract
10 with an intermediate school district, community college, or state
11 public university to oversee, each public school academy operat-
12 ing under a contract issued by the authorizing body. The over-
13 sight shall be sufficient to ensure that the authorizing body can
14 certify that the public school academy is in compliance with
15 statute, rules, and the terms of the contract. EACH AUTHORIZING
16 BODY ANNUALLY SHALL FILE AN OVERSIGHT REPORT WITH THE STATE BOARD
17 FOR EACH CONTRACT ISSUED BY THE AUTHORIZING BODY. EACH OVERSIGHT
18 REPORT SHALL BE ACCOMPANIED BY A WRITTEN CERTIFICATION OF ITS
19 ACCURACY SIGNED BY THE CHIEF ADMINISTRATOR OF THE AUTHORIZING
20 BODY AND, IF APPLICABLE, BY THE PRESIDENT OF ITS ELECTED GOVERN-
21 ING BOARD. AN OVERSIGHT REPORT SHALL CONTAIN AT LEAST ALL OF THE
22 FOLLOWING INFORMATION:
23 (A) NUMBER OF STAFF ASSIGNED TO OVERSIGHT ACTIVITIES, BOTH
24 GENERALLY AND FOR THE SPECIFIC CONTRACT, ON A FULL-TIME EQUATED
25 BASIS.
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1 (B) QUALIFICATIONS, INCLUDING ANY PROFESSIONAL
2 CERTIFICATION, OF STAFF ASSIGNED TO OVERSIGHT ACTIVITIES, BOTH
3 GENERALLY AND FOR THE SPECIFIC CONTRACT.
4 (C) OVERSIGHT ACTIVITIES CONDUCTED AT THE SITE OF THE PUBLIC
5 SCHOOL ACADEMY.
6 (D) ANY NONCOMPLIANCE WITH STATUTE, RULES, OR THE TERMS OF
7 THE CONTRACT FOUND IN THE COURSE OF THE OVERSIGHT AND ANY AREAS
8 OF PERFORMANCE FOUND TO BE IN NEED OF IMPROVEMENT.
9 (E) A DESCRIPTION OF THE SPECIFIC EVIDENCE THAT LED TO EACH
10 FINDING DESCRIBED IN SUBDIVISION (D).
11 (F) SPECIFIC PLANS FOR REMEDIATION OF EACH NONCOMPLIANCE
12 DESCRIBED IN SUBDIVISION (D).
13 (G) SPECIFIC SUGGESTIONS AND PLANS FOR IMPROVEMENT OF
14 PERFORMANCE.
15 (H) A DESCRIPTION OF THE SPECIFIC EVIDENCE USED TO SUPPORT A
16 FINDING THAT THE PUBLIC SCHOOL ACADEMY IS IN COMPLIANCE WITH THE
17 PROVISIONS OF SUBSECTION (1) CONCERNING RELIGIOUS AFFILIATIONS.
18 (I) A DESCRIPTION OF THE SPECIFIC EVIDENCE USED TO SUPPORT A
19 FINDING THAT THE PUBLIC SCHOOL ACADEMY IS IN COMPLIANCE WITH ALL
20 APPLICABLE LAW, INCLUDING, BUT NOT LIMITED TO, THOSE PROVISIONS
21 OF LAW SPECIFIED IN SECTION 503(6).
22 (J) ASSURANCE THAT THE AUTHORIZING BODY HAS EXAMINED STAN-
23 DARDIZED TEST SCORES DESCRIBED IN SECTION 503(5) AND OTHER RELE-
24 VANT DATA TO DETERMINE THAT THE PUBLIC SCHOOL ACADEMY IS FULFILL-
25 ING THE ACADEMIC GOALS SPECIFIED IN THE CONTRACT.
26 (5) If the state board finds that an authorizing body is not
27 engaging in appropriate continuing oversight of 1 or more public
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1 school academies operating under a contract issued by the
2 authorizing body, the state board may suspend OR REVOKE the power
3 of the authorizing body to issue new contracts to organize and
4 operate public school academies, AND MAY ORDER THE AUTHORIZING
5 BODY TO REPAY ANY FEE COLLECTED BY THE AUTHORIZING BODY FOR ISSU-
6 ING A CONTRACT OR FOR PROVIDING OVERSIGHT OF A CONTRACT. A con-
7 tract issued by the authorizing body during the suspension OR
8 AFTER THE REVOCATION is void. A THE VALIDITY OF A contract
9 issued by the authorizing body before the suspension OR
10 REVOCATION is not affected by the suspension OR REVOCATION. A
11 CONTRACT MAY BE RENEWED BY THE AUTHORIZING BODY DURING A
12 SUSPENSION.
13 (6) An authorizing body shall not charge a fee, or require
14 reimbursement of expenses, for considering an application for a
15 contract, for issuing a contract, or for providing oversight of a
16 contract for a public school academy in an amount that exceeds a
17 combined total of 3% of the total state school aid received by
18 the public school academy in the school year in which the fees or
19 expenses are charged. An authorizing body may provide other
20 services for a public school academy and charge a fee for those
21 services, but shall not require such an arrangement as a condi-
22 tion to issuing the contract authorizing the public school
23 academy.
24 (7) A public school academy shall be presumed to be legally
25 organized if it has exercised the franchises and privileges of a
26 public school academy for at least 2 years.
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1 Sec. 503. (1) An authorizing body is not required to issue
2 a contract to any person or entity. Public school academy
3 contracts shall be issued on a competitive basis taking into con-
4 sideration the resources available for the proposed public school
5 academy, the population to be served by the proposed public
6 school academy, and the educational goals to be achieved by the
7 proposed public school academy.
8 (2) If a person or entity applies to the board of a school
9 district for a contract to organize and operate 1 or more public
10 school academies within the boundaries of the school district and
11 the board does not issue the contract, the person or entity may
12 petition the board to place the question of issuing the contract
13 on the ballot to be decided by the school electors of the school
14 district. The petition shall contain all of the information
15 required to be in the contract application under section 502(3)
16 and shall be signed by a number of school electors of the school
17 district equal to at least 15% of the total number of school
18 electors of that school district. The petition shall be filed
19 with the secretary of the board. If the board receives a peti-
20 tion meeting the requirements of this subsection, the board shall
21 place the question of issuing the contract on the ballot at its
22 next annual school election held at least 60 days after receiving
23 the petition. If a majority of the school electors of the school
24 district voting on the question vote to issue the contract, the
25 board shall issue the contract.
26 (3) Within 10 days after issuing a contract for a public
27 school academy, the board of the authorizing body shall submit to
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1 the state board a copy of the contract and of the application
2 under section 502.
3 (4) An authorizing body shall adopt a resolution establish-
4 ing the method of selection, length of term, and number of mem-
5 bers of the board of directors of each public school academy
6 subject to its jurisdiction.
7 (5) A contract issued to organize and administer a public
8 school academy shall contain at least all of the following:
9 (a) The educational goals the public school academy is to
10 achieve and the methods by which it will be held accountable. To
11 the extent applicable, the pupil performance of a public school
12 academy shall be assessed using at least a Michigan education
13 assessment program (MEAP) test or an assessment instrument devel-
14 oped under section 1279 for a state-endorsed high school
15 diploma.
16 (b) A description of the method to be used to monitor the
17 public school academy's compliance with applicable law and its
18 performance in meeting its targeted educational objectives.
19 (c) A description of the process for amending the contract
20 during the term of the contract.
21 (d) All of the matters set forth in the application for the
22 contract.
23 (e) For a public school academy authorized by a school dis-
24 trict, an agreement that employees of the public school academy
25 will be covered by the collective bargaining agreements that
26 apply to employees of the school district employed in similar
27 classifications in schools that are not public school academies.
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1 (f) Procedures for revoking the contract and grounds for
2 revoking the contract, including at least the grounds listed in
3 section 507.
4 (g) A description of and address for the proposed physical
5 plant in which the public school academy will be located.
6 (h) Requirements and procedures for financial audits. The
7 financial audits shall be conducted at least annually by a certi-
8 fied public accountant in accordance with generally accepted gov-
9 ernmental auditing principles.
10 (6) A public school academy shall comply with all applicable
11 law, including all of the following:
12 (a) The open meetings act, Act No. 267 of the Public Acts
13 of 1976, being sections 15.261 to 15.275 of the Michigan Compiled
14 Laws 1976 PA 267, MCL 15.261 TO 15.275.
15 (b) The freedom of information act, Act No. 442 of the
16 Public Acts of 1976, being sections 15.231 to 15.246 of the
17 Michigan Compiled Laws 1976 PA 442, MCL 15.231 TO 15.246.
18 (c) Act No. 336 of the Public Acts of 1947, being
19 sections 423.201 to 423.217 of the Michigan Compiled Laws 1947
20 PA 336, MCL 423.201 TO 423.217.
21 (d) Act No. 166 of the Public Acts of 1965, being
22 sections 408.551 to 408.558 of the Michigan Compiled Laws 1965
23 PA 166, MCL 408.551 TO 408.558.
24 (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and
25 1274.
26 (7) A public school academy and its incorporators, board
27 members, officers, employees, and volunteers have governmental
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1 immunity as provided in section 7 of Act No. 170 of the Public
2 Acts of 1964, being section 691.1407 of the Michigan Compiled
3 Laws 1964 PA 170, MCL 691.1407. An authorizing body and its
4 board members, officers, and employees are immune from civil
5 liability, both personally and professionally, for any acts or
6 omissions in authorizing a public school academy if the authoriz-
7 ing body or the person acted or reasonably believed he or she
8 acted within the authorizing body's or the person's scope of
9 authority.
10 (8) A public school academy is exempt from all taxation on
11 its earnings and property. Instruments of conveyance to or from
12 a public school academy are exempt from all taxation including
13 taxes imposed by Act No. 134 of the Public Acts of 1966, being
14 sections 207.501 to 207.513 of the Michigan Compiled Laws 1966
15 PA 134, MCL 207.501 TO 207.513. A public school academy may not
16 levy ad valorem property taxes or any other tax for any purpose.
17 However, operation of 1 or more public school academies by a
18 school district or intermediate school district does not affect
19 the ability of the school district or intermediate school dis-
20 trict to levy ad valorem property taxes or any other tax.
21 (9) A SUBJECT TO SECTION 503B, A public school academy may
22 acquire by purchase, gift, devise, lease, sublease, installment
23 purchase agreement, land contract, option, or by any other means,
24 hold and own in its own name buildings and other property for
25 school purposes, and interests therein, and other real and per-
26 sonal property, including, but not limited to, interests in
27 property subject to mortgages, security interests, or other
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1 liens, necessary or convenient to fulfill its purposes. For the
2 purposes of condemnation, a public school academy may proceed
3 under the uniform condemnation procedures act, Act No. 87 of the
4 Public Acts of 1980, being sections 213.51 to 213.77 of the
5 Michigan Compiled Laws 1980 PA 87, MCL 213.51 TO 213.77, exclud-
6 ing sections 6 to 9 of that act, being sections 213.56 to 213.59
7 of the Michigan Compiled Laws MCL 213.56 TO 213.59, or other
8 applicable statutes, but only with the express, written permis-
9 sion of the authorizing body in each instance of condemnation and
10 only after just compensation has been determined and paid.
11 SEC. 503B. (1) ALL PROPERTY OF A PUBLIC SCHOOL ACADEMY IS
12 STATE PROPERTY. IF A PUBLIC SCHOOL ACADEMY CEASES TO OPERATE,
13 TITLE TO ALL REAL AND PERSONAL PROPERTY, INTERESTS IN REAL OR
14 PERSONAL PROPERTY, AND OTHER ASSETS OF A PUBLIC SCHOOL ACADEMY
15 SHALL REVERT TO THIS STATE. ANY MONEY INCLUDED IN THOSE ASSETS
16 AND THE NET PROCEEDS FROM THE SALE OF THE PROPERTY OR INTERESTS
17 IN PROPERTY, AFTER PAYMENT OF ANY DEBT SECURED BY THE PROPERTY OR
18 INTEREST IN PROPERTY, SHALL BE DEPOSITED IN THE STATE SCHOOL AID
19 FUND.
20 (2) THIS SECTION DOES NOT IMPOSE ANY LIABILITY ON THIS STATE
21 FOR ANY DEBT INCURRED BY A PUBLIC SCHOOL ACADEMY.
22 Sec. 504a. In addition to other powers set forth in this
23 part, a public school academy may take action to carry out the
24 purposes for which it was incorporated under this part, includ-
25 ing, but not limited to, all of the following:
26 (a) To sue and be sued in its name.
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1 (b) To SUBJECT TO SECTION 503B, TO acquire, hold, and own
2 in its own name real and personal property, or interests in real
3 or personal property, for educational purposes by purchase, gift,
4 grant, devise, bequest, lease, sublease, installment purchase
5 agreement, land contract, option, or condemnation, and subject to
6 mortgages, security interests, or other liens; and to sell or
7 convey the property as the interests of the public school academy
8 require.
9 (c) To receive and disburse funds for lawful purposes.
10 (d) To enter into binding legal agreements with persons or
11 entities as necessary for the operation, management, and mainte-
12 nance of the public school academy.
13 (e) To incur temporary debt in accordance with
14 section 1225.
15 (f) To solicit and accept any grants or gifts for educa-
16 tional purposes and to establish or permit to be established on
17 its behalf 1 or more nonprofit corporations the purpose of which
18 is to assist the public school academy in the furtherance of its
19 public purposes.
20 Sec. 512. (1) Subject to the leadership and general super-
21 vision of the state board over all public education, a public
22 school academy shall be organized and administered under the
23 direction of a board of directors in accordance with this part
24 and with bylaws adopted by the board of directors. A public
25 school academy corporation shall be organized as provided under
26 section 512a. To the extent disqualified under the state or
27 federal constitution, a public school academy shall not be
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1 organized by a church or other religious organization and shall
2 not have any organizational or contractual affiliation with or
3 constitute a church or other religious organization.
4 (2) Any of the following may act as an authorizing body to
5 issue a contract to organize and operate 1 or more public school
6 academies under this part:
7 (a) The board of a school district that operates grades K to
8 12. However, the board of a school district shall not issue a
9 contract for a public school academy to operate outside the
10 school district's boundaries, and a public school academy autho-
11 rized by the board of a school district shall not operate outside
12 that school district's boundaries.
13 (b) An intermediate school board. However, the board of an
14 intermediate school district shall not issue a contract for a
15 public school academy to operate outside the intermediate school
16 district's boundaries, and a public school academy authorized by
17 the board of an intermediate school district shall not operate
18 outside that intermediate school district's boundaries.
19 (c) The board of a community college. However, except as
20 otherwise provided in this subdivision, the board of a community
21 college shall not issue a contract for a public school academy to
22 operate in a school district organized as a school district of
23 the first class, a public school academy authorized by the board
24 of a community college shall not operate in a school district
25 organized as a school district of the first class, the board of a
26 community college shall not issue a contract for a public school
27 academy to operate outside the boundaries of the community
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1 college district, and a public school academy authorized by the
2 board of a community college shall not operate outside the bound-
3 aries of the community college district. The board of a commu-
4 nity college also may issue a contract for not more than 1 public
5 school academy to operate on the grounds of an active or closed
6 federal military installation located outside the boundaries of
7 the community college district, or may operate a public school
8 academy itself on the grounds of such a federal military instal-
9 lation, if the federal military installation is not located
10 within the boundaries of any community college district and the
11 community college has previously offered courses on the grounds
12 of the federal military installation for at least 10 years.
13 (d) The governing board of a state public university.
14 However, the combined total number of contracts for public school
15 academies issued by all state public universities shall not
16 exceed 85 through 1996, and, after the initial evaluation under
17 section 511a, 100 through 1997, 125 through 1998, or 150
18 thereafter. Further, the total number of contracts issued by any
19 1 state public university shall not exceed 50 through 1996, and
20 thereafter shall not exceed 50% of the maximum combined total
21 number that may be issued under this subdivision.
22 (3) To obtain a contract to organize and operate 1 or more
23 public school academies, 1 or more persons or an entity may apply
24 to an authorizing body described in subsection (2). The applica-
25 tion shall include at least all of the following:
26 (a) Identification of the applicant for the contract.
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1 (b) Subject to the resolution adopted by the authorizing
2 body under section 513(5), a list of the proposed members of the
3 board of directors of the public school academy and a description
4 of the qualifications and method for appointment or election of
5 members of the board of directors.
6 (c) The proposed articles of incorporation, which shall meet
7 the requirements of section 512a.
8 (d) A copy of the proposed bylaws of the public school
9 academy.
10 (e) Documentation meeting the application requirements of
11 the authorizing body, including at least all of the following:
12 (i) The governance structure of the public school academy.
13 (ii) A copy of the educational goals and programs of the
14 public school academy and the curricula to be offered and methods
15 of pupil assessment to be used by the public school academy. The
16 educational goals and programs and the curricula to be offered
17 shall fulfill at least 1 of the purposes described in section
18 511(1). To the extent applicable, the progress of the pupils in
19 the public school academy shall be assessed using at least a
20 Michigan education assessment program (MEAP) test or an assess-
21 ment instrument developed under section 1279 for a state-endorsed
22 high school diploma.
23 (iii) The admission policy and criteria to be maintained by
24 the public school academy. The admission policy and criteria
25 shall comply with section 514. This part of the application also
26 shall include a description of how the applicant will provide to
27 the general public adequate notice that a public school academy
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1 is being created and adequate information on the admission
2 policy, criteria, and process.
3 (iv) The school calendar and school day schedule.
4 (v) The age or grade range of pupils to be enrolled.
5 (vi) Any other documentation required by the authorizing
6 body or by state board rule.
7 (f) Descriptions of staff responsibilities and of the public
8 school academy's governance structure.
9 (g) For an application to the board of a school district, an
10 intermediate school board, or board of a community college, iden-
11 tification of the local and intermediate school districts in
12 which the public school academy will be located.
13 (h) An agreement that the public school academy will comply
14 with the provisions of this part and, subject to the provisions
15 of this part, with all other state law applicable to public
16 bodies and with federal law applicable to public bodies or school
17 districts.
18 (i) For a public school academy authorized by a school dis-
19 trict, an assurance that employees of the public school academy
20 will be covered by the collective bargaining agreements that
21 apply to other employees of the school district employed in simi-
22 lar classifications in schools that are not public school
23 academies.
24 (j) A description of and address for the proposed physical
25 plant in which the public school academy will be located.
26 (4) An authorizing body shall oversee, or shall contract
27 with an intermediate school district, community college, or state
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1 public university to oversee, each public school academy
2 operating under a contract issued by the authorizing body. The
3 oversight shall be sufficient to ensure that the authorizing body
4 can certify that the public school academy is in compliance with
5 statute, rules, and the terms of the contract. EACH AUTHORIZING
6 BODY ANNUALLY SHALL FILE AN OVERSIGHT REPORT WITH THE STATE BOARD
7 FOR EACH CONTRACT ISSUED BY THE AUTHORIZING BODY. EACH OVERSIGHT
8 REPORT SHALL BE ACCOMPANIED BY A WRITTEN CERTIFICATION OF ITS
9 ACCURACY SIGNED BY THE CHIEF ADMINISTRATOR OF THE AUTHORIZING
10 BODY AND, IF APPLICABLE, BY THE PRESIDENT OF ITS ELECTED GOVERN-
11 ING BOARD. AN OVERSIGHT REPORT SHALL CONTAIN AT LEAST ALL OF THE
12 FOLLOWING INFORMATION:
13 (A) NUMBER OF STAFF ASSIGNED TO OVERSIGHT ACTIVITIES, BOTH
14 GENERALLY AND FOR THE SPECIFIC CONTRACT, ON A FULL-TIME EQUATED
15 BASIS.
16 (B) QUALIFICATIONS, INCLUDING ANY PROFESSIONAL CERTIFICA-
17 TION, OF STAFF ASSIGNED TO OVERSIGHT ACTIVITIES, BOTH GENERALLY
18 AND FOR THE SPECIFIC CONTRACT.
19 (C) OVERSIGHT ACTIVITIES CONDUCTED AT THE SITE OF THE PUBLIC
20 SCHOOL ACADEMY.
21 (D) ANY NONCOMPLIANCE WITH STATUTE, RULES, OR THE TERMS OF
22 THE CONTRACT FOUND IN THE COURSE OF THE OVERSIGHT AND ANY AREAS
23 OF PERFORMANCE FOUND TO BE IN NEED OF IMPROVEMENT.
24 (E) A DESCRIPTION OF THE SPECIFIC EVIDENCE THAT LED TO EACH
25 FINDING DESCRIBED IN SUBDIVISION (D).
26 (F) SPECIFIC PLANS FOR REMEDIATION OF EACH NONCOMPLIANCE
27 DESCRIBED IN SUBDIVISION (D).
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1 (G) SPECIFIC SUGGESTIONS AND PLANS FOR IMPROVEMENT OF
2 PERFORMANCE.
3 (H) A DESCRIPTION OF THE SPECIFIC EVIDENCE USED TO SUPPORT A
4 FINDING THAT THE PUBLIC SCHOOL ACADEMY IS IN COMPLIANCE WITH THE
5 PROVISIONS OF SUBSECTION (1) CONCERNING RELIGIOUS AFFILIATIONS.
6 (I) A DESCRIPTION OF THE SPECIFIC EVIDENCE USED TO SUPPORT A
7 FINDING THAT THE PUBLIC SCHOOL ACADEMY IS IN COMPLIANCE WITH ALL
8 APPLICABLE LAW, INCLUDING, BUT NOT LIMITED TO, THOSE PROVISIONS
9 OF LAW SPECIFIED IN SECTION 513(8).
10 (J) ASSURANCE THAT THE AUTHORIZING BODY HAS EXAMINED STAN-
11 DARDIZED TEST SCORES DESCRIBED IN SECTION 513(6) AND OTHER RELE-
12 VANT DATA TO DETERMINE THAT THE PUBLIC SCHOOL ACADEMY IS FULFILL-
13 ING THE ACADEMIC GOALS SPECIFIED IN THE CONTRACT.
14 (5) If the state board finds that an authorizing body is not
15 engaging in appropriate continuing oversight of 1 or more public
16 school academies operating under a contract issued by the autho-
17 rizing body, the state board may suspend OR REVOKE the power of
18 the authorizing body to issue new contracts to organize and oper-
19 ate public school academies, AND MAY ORDER THE AUTHORIZING BODY
20 TO REPAY ANY FEE COLLECTED BY THE AUTHORIZING BODY FOR ISSUING A
21 CONTRACT OR FOR PROVIDING OVERSIGHT OF A CONTRACT. A contract
22 issued by the authorizing body during the suspension OR AFTER THE
23 REVOCATION is void. A THE VALIDITY OF A contract issued by the
24 authorizing body before the suspension OR REVOCATION is not
25 affected by the suspension , and OR REVOCATION. A CONTRACT may
26 be renewed by the authorizing body during the A suspension.
02110'97
21
1 (6) An authorizing body shall not charge a fee, or require
2 reimbursement of expenses, for considering an application for a
3 contract, for issuing a contract, or for providing oversight of a
4 contract for a public school academy in an amount that exceeds a
5 combined total of 3% of the total state school aid received by
6 the public school academy in the school year in which the fees or
7 expenses are charged. An authorizing body may provide other
8 services for a public school academy and charge a fee for those
9 services, but shall not require such an arrangement as a condi-
10 tion to issuing the contract authorizing the public school
11 academy.
12 Sec. 513. (1) An authorizing body is not required to issue
13 a contract to any person or entity. Public school academy con-
14 tracts shall be issued on a competitive basis taking into consid-
15 eration the resources available for the proposed public school
16 academy, the population to be served by the proposed public
17 school academy, and the educational goals to be achieved by the
18 proposed public school academy.
19 (2) If an authorizing body determines that an application
20 submitted to it under section 512 meets the authorizing body's
21 requirements and the requirements of applicable law, the autho-
22 rizing body, by 1 or more resolutions, may approve the applica-
23 tion, adopt articles of incorporation for the public school acad-
24 emy, appoint the initial board of directors for the public school
25 academy, and approve and authorize execution of the contract
26 between the authorizing body and the public school academy. The
27 affirmative vote of a majority of the members serving on the
02110'97
22
1 board of the authorizing body is required for adoption of a
2 resolution described in this subsection.
3 (3) If a person or entity applies to the board of a school
4 district for a contract to organize and operate 1 or more public
5 school academies within the boundaries of the school district and
6 the board does not issue the contract, the person or entity may
7 petition the board to place the question of issuing the contract
8 on the ballot to be decided by the school electors of the school
9 district. The petition shall contain all of the information
10 required to be in the contract application under section 512(3)
11 and shall be signed by a number of school electors of the school
12 district equal to at least 15% of the total number of school
13 electors of that school district. The petition shall be filed
14 with the secretary of the board. If the board receives a peti-
15 tion meeting the requirements of this subsection, the board shall
16 place the question of issuing the contract on the ballot at its
17 next annual school election held at least 60 days after receiving
18 the petition. If a majority of the school electors of the school
19 district voting on the question vote to issue the contract, the
20 board shall issue the contract in the manner specified in subsec-
21 tion (2).
22 (4) Within 10 days after issuing a contract for a public
23 school academy, the board of the authorizing body shall submit to
24 the state board a copy of the contract and of the application
25 under section 512.
26 (5) Subject to section 512a, an authorizing body shall adopt
27 a resolution establishing the method of selection, length of
02110'97
23
1 term, and number of members of the board of directors of each
2 public school academy subject to its jurisdiction.
3 (6) A contract issued to organize and administer a public
4 school academy shall contain at least all of the following:
5 (a) The educational goals the public school academy is to
6 achieve and the methods by which it will be held accountable. To
7 the extent applicable, the pupil performance of a public school
8 academy shall be assessed using at least a Michigan education
9 assessment program (MEAP) test or an assessment instrument devel-
10 oped under section 1279 for a state-endorsed high school
11 diploma.
12 (b) A description of the method to be used to monitor the
13 public school academy's compliance with applicable law and its
14 performance in meeting its targeted educational objectives.
15 (c) A description of the process for amending the contract
16 during the term of the contract.
17 (d) All of the matters set forth in the application for the
18 contract.
19 (e) For a public school academy authorized by a school dis-
20 trict, an agreement that employees of the public school academy
21 will be covered by the collective bargaining agreements that
22 apply to employees of the school district employed in similar
23 classifications in schools that are not public school academies.
24 (f) Procedures for revoking the contract and grounds for
25 revoking the contract, including at least the grounds listed in
26 section 517.
02110'97
24
1 (g) A description of and address for the proposed physical
2 plant in which the public school academy will be located.
3 (h) Requirements and procedures for financial audits. The
4 financial audits shall be conducted at least annually by a certi-
5 fied public accountant in accordance with generally accepted gov-
6 ernmental auditing principles.
7 (i) Types and amounts of insurance coverage.
8 (j) Legal remedies of the authorizing body and the state
9 board, in addition to remedies under law, for substantial failure
10 by the public school academy to meet its obligations under the
11 contract.
12 (7) The term of a contract issued under this section shall
13 not exceed 10 years, and a contract is subject to mandatory
14 review at least every 7 years by the authorizing body to review
15 whether the public school academy is in compliance with the con-
16 tract and applicable law. A contract may be renewed by the
17 authorizing body for succeeding terms not to exceed 10 years,
18 subject to mandatory review as described in this subsection.
19 (8) A public school academy shall comply with all of the
20 following:
21 (a) The open meetings act, Act No. 267 of the Public Acts
22 of 1976, being sections 15.261 to 15.275 of the Michigan Compiled
23 Laws 1976 PA 267, MCL 15.261 TO 15.275.
24 (b) The freedom of information act, Act No. 442 of the
25 Public Acts of 1976, being sections 15.231 to 15.246 of the
26 Michigan Compiled Laws 1976 PA 442, MCL 15.231 TO 15.246.
02110'97
25
1 (c) Act No. 336 of the Public Acts of 1947, being
2 sections 423.201 to 423.217 of the Michigan Compiled Laws 1947
3 PA 336, MCL 423.201 TO 423.217.
4 (d) Act No. 166 of the Public Acts of 1965, being
5 sections 408.551 to 408.558 of the Michigan Compiled Laws 1965
6 PA 166, MCL 408.551 TO 408.558.
7 (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and
8 1274.
9 (f) Act No. 35 of the Public Acts of 1951, being sections
10 124.1 to 124.13 of the Michigan Compiled Laws 1951 PA 35,
11 MCL 124.1 TO 124.13.
12 (g) Act No. 8 of the Public Acts of the Extra Session of
13 1967, being sections 124.531 to 124.536 of the Michigan Compiled
14 Laws 1967 (EX SESS) PA 8, MCL 124.531 TO 124.536.
15 (9) Subsection (8) does not exempt a public school academy
16 from any law.
17 (10) A public school academy and its incorporators, board
18 members, officers, employees, and volunteers have governmental
19 immunity as provided in section 7 of Act No. 170 of the Public
20 Acts of 1964, being section 691.1407 of the Michigan Compiled
21 Laws 1964 PA 170, MCL 691.1407. An authorizing body and its
22 board members, officers, and employees are immune from civil
23 liability, both personally and professionally, for any acts or
24 omissions in authorizing a public school academy if the authoriz-
25 ing body or the person acted or reasonably believed he or she
26 acted within the authorizing body's or the person's scope of
27 authority.
02110'97
26
1 (11) A public school academy is exempt from all taxation on
2 its earnings and property. Instruments of conveyance to or from
3 a public school academy are exempt from all taxation including
4 taxes imposed by Act No. 134 of the Public Acts of 1966, being
5 sections 207.501 to 207.513 of the Michigan Compiled Laws 1966
6 PA 134, MCL 207.501 TO 207.513. A public school academy may not
7 levy ad valorem property taxes or any other tax for any purpose.
8 However, operation of 1 or more public school academies by a
9 school district or intermediate school district does not affect
10 the ability of the school district or intermediate school dis-
11 trict to levy ad valorem property taxes or any other tax.
12 (12) A SUBJECT TO SECTION 513B, A public school academy
13 may acquire by purchase, gift, devise, lease, sublease, install-
14 ment purchase agreement, land contract, option, or by any other
15 means, hold and own in its own name buildings and other property
16 for school purposes, and interests therein, and other real and
17 personal property, including, but not limited to, interests in
18 property subject to mortgages, security interests, or other
19 liens, necessary or convenient to fulfill its purposes. For the
20 purposes of condemnation, a public school academy may proceed
21 under the uniform condemnation procedures act, Act No. 87 of the
22 Public Acts of 1980, being sections 213.51 to 213.77 of the
23 Michigan Compiled Laws 1980 PA 87, MCL 213.51 TO 213.77, exclud-
24 ing sections 6 to 9 of that act, being sections 213.56 to 213.59
25 of the Michigan Compiled Laws MCL 213.56 TO 213.59, or other
26 applicable statutes, but only with the express, written
27 permission of the authorizing body in each instance of
02110'97
27
1 condemnation and only after just compensation has been determined
2 and paid.
3 SEC. 513B. (1) ALL PROPERTY OF A PUBLIC SCHOOL ACADEMY IS
4 STATE PROPERTY. IF A PUBLIC SCHOOL ACADEMY CEASES TO OPERATE,
5 TITLE TO ALL REAL AND PERSONAL PROPERTY, INTERESTS IN REAL OR
6 PERSONAL PROPERTY, AND OTHER ASSETS OF A PUBLIC SCHOOL ACADEMY
7 SHALL REVERT TO THIS STATE. ANY MONEY INCLUDED IN THOSE ASSETS
8 AND THE NET PROCEEDS FROM THE SALE OF THE PROPERTY OR INTERESTS
9 IN PROPERTY, AFTER PAYMENT OF ANY DEBT SECURED BY THE PROPERTY OR
10 INTEREST IN PROPERTY, SHALL BE DEPOSITED IN THE STATE SCHOOL AID
11 FUND.
12 (2) THIS SECTION DOES NOT IMPOSE ANY LIABILITY ON THIS STATE
13 FOR ANY DEBT INCURRED BY A PUBLIC SCHOOL ACADEMY.
14 Sec. 514a. In addition to other powers set forth in this
15 part, a public school academy may take action to carry out the
16 purposes for which it was incorporated under this part, includ-
17 ing, but not limited to, all of the following:
18 (a) To sue and be sued in its name.
19 (b) To SUBJECT TO SECTION 513B, TO acquire, hold, and own
20 in its own name real and personal property, or interests in real
21 or personal property, for educational purposes by purchase, gift,
22 grant, devise, bequest, lease, sublease, installment purchase
23 agreement, land contract, option, or condemnation, and subject to
24 mortgages, security interests, or other liens; and to sell or
25 convey the property as the interests of the public school academy
26 require.
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28
1 (c) To receive and disburse funds for lawful purposes.
2 (d) To enter into binding legal agreements with persons or
3 entities as necessary for the operation, management, and mainte-
4 nance of the public school academy.
5 (e) To incur temporary debt in accordance with
6 section 1225.
7 (f) To solicit and accept any grants or gifts for educa-
8 tional purposes and to establish or permit to be established on
9 its behalf 1 or more nonprofit corporations the purpose of which
10 is to assist the public school academy in the furtherance of its
11 public purposes.
02110'97 Final page. TAV