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 02110'97 TAV 2 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 02110'97 3 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 02110'97 4 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 02110'97 5 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. 02110'97 6 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. 02110'97 7 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 02110'97 8 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. 02110'97 9 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 02110'97 10 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. 02110'97 11 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 02110'97 12 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 02110'97 13 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. 02110'97 14 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 02110'97 15 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 02110'97 16 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. 02110'97 17 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 02110'97 18 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 02110'97 19 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). 02110'97 20 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. 02110'97 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. 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